Document:

Pine Ridge Business Park Standard Office Lease

  EXHIBIT 10.53
 STANDARD OFFICE
LEASE
 ARTICLE 1.00 BASIC LEASE TERMS
 1.01     Parties. This lease agreement (“Lease”) is entered into by and between the following Lessor and Lessee:
 2221 Bijou Limited Liability Company (“Lessor”)
a Colorado Limited Liability Company
 American Teleconferencing Service Ltd. (“Lessee”)
 1.02     Leased Premises. In consideration of the rents, terms, provisions and covenants of this Lease, Lessor hereby leases, lets and demises to Lessee the following
described premises (“leased premises”):
  

	 50,000
 	  
 	 Square Feet (Approximate sq. ft. “phased-in as per Rent Schedule - Addendum A)
 	  
 
	 The Chidlaw Building
 	  
 	 (Name of building or project)
 	  
 
	 2221 East Bijou Street
 	  
 	 (Street address/suite number)
 	  
 
	 Colo Spgs, CO 80909
 	  
 	 (City, State, and Zip code)
 	  
 

 
 1.03     Leased Premises. Subject to and upon the conditions set forth herein, including Article 11.05, the term of this lease shall commence on
120 days after Lessee’s acceptance of plans and specifications or Lessor’s notice as set forth in Article 6.01 and shall terminate 120 months thereafter.
 1.04     Base Rent and Security Deposit. Base rent is shown on Addendum A. Security deposit is $12,500.00.
 1.05     Addresses.
  

	 Lessor’s
 	  
 	 Lessee’s
 	  
 
	  
 	  
 	  
 	  
 
	 2221 Bijou Limited Liability Co.
 	  
 	 American Teleconferencing Services, Ltd.
 	  
 
	 c/o Fieldhill Properties
 	  
 	 2221 East Bijou Street
 	  
 
	 P.O. Box 158
 	  
 	 Colorado Springs, CO 80909 
 	  
 
	 Chaska, MN 55318
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 

 
 1.06     Permitted Use. Office and related uses. Tenant shall have access and use availability on a 24-hour per day basis during the Lease
term.
 ARTICLE 2.00 RENT
 2.01     Base Rent. Lessee agrees to pay monthly as base rent during the term of this Lease the sum of money set forth in Section 1.04 of this Lease, which amount shall be
payable to Lessor at the address shown above. One monthly installment of rent shall be due and payable on the date of occupancy by Lessee for the first month’s rent and a like monthly installment shall be due and payable on or before the first
day of each calendar month succeeding the commencement date or completion date during the term of this Lease; provided, if the commencement date or the completion date should be a date other than the first day of a calendar month, the monthly rental
set forth above shall be prorated to the end of that calender month, and all succeeding installments of rent shall be payable on or before the first day of each succeeding calendar month during the term of this Lease. Lessee shall pay, as additional
rent, all other sums due under this Lease.
 2.02     Operating
Expenses. In the event, Lessor’s operating expenses for the building and/or project of which the leased premises are a part shall, in any calendar year during the term of this Lease, exceed the sum of $1.18 per square
foot, Lessee agrees to pay as additional rent Lessee’s pro rata share of such excess operating expenses. Lessor may invoice Lessee monthly for Lessee’s pro rata share of the estimated operating expenses for each calendar year, which amount
shall be adjusted each year based upon anticipated operating expenses. Within ninety days following the close of each calendar year, Lessor shall provide Lessee an accounting showing in reasonable detail all computations 
  
 

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  of additional rent due under this section. In the event the accounting shows that the total of the monthly payments made by Lessee exceeds the amount of
additional rent due by Lessee under this section, the accounting shall be accompanied by a refund. In the event the accounting shows that the total of the monthly payments made by Lessee is less than the amount of additional rent due by Lessee under
this section, the accounting shall be accompanied by an invoice for the additional rent. Notwithstanding any other provision in this Lease, during the year in which the Lease terminates, Lessor, prior to the termination date, shall have the option
to invoice Lessee for Lessee’s pro rata share of the excess operating expenses based upon the previous year’s accounting expenses. If this Lease shall terminate on a day other than the last day of a calendar year, the amount of any
additional rent payable by Lessee applicable to the year in which such termination shall occur shall be pro rated on the ratio that the number of days from the commencement of the calendar year to and including the termination date bears to 365.
Lessee shall have the right, at its own expenses and within a reasonable time, to audit Lessor’s books relevant to the additional rent payable under this section. Lessee agrees to pay any additional rent due under this section within twenty
(20) days following receipt of the invoice or accounting showing additional rent due.
 2.03     Definition of Operating Expenses. The term “operating expenses” includes all expenses incurred by Lessor with respect to the maintenance and operation of
the building of which the leased premises are a part, including, but not limited to, the following: maintenance, repair and replacement costs: electricity, fuel water, sewer, gas and common area utility charges; window washing; trash removal;
landscaping and pest control; management fees, wages and benefits payable to employees of Lessor whose duties are directly connected with the operation and maintenance of the building; all services, supplies, repairs, replacements, or other expenses
for maintaining and operating the building or project including parking and common areas; the cost, including interest, amortized over its useful life, of any capital improvement made to the building by Lessor after the date of this Lease which is
required under any governmental law or regulation that was not applicable to the building at the time it was constructed; the cost, including interest, amortized over its useful life, of installation of any device or other equipment which improves
the operating efficiency of any system within the leased premises and thereby reduces operating expenses; all other expenses which would generally be regarded as operating and maintenance expenses which would reasonably be amortized over a period
not to exceed five years; all real property taxes and installments of special assessments, including dues and assessments by means of deed restrictions and/or owners’ associations which accrue against the building of which the leased premises
are a part during the term of this Lease and all insurance premiums Lessor is required to, pay or deems necessary to pay, including public liability insurance, with respect to the building. The term operating expenses does not include the following:
repairs, restoration or other work occasioned by fire, wind, the elements or other casualty; income and franchise taxes of Lessor; expenses incurred in leased to or procuring of lessees, leasing commissions, advertising expenses and expenses for the
renovating of space for new lessees; interest or principal payments on any mortgage of other indebtedness of Lessor; compensation paid to any employee of Lessor above the grade of property manager; any depreciation allowance or expense; or operating
expenses which are the responsibility of Lessee.
 2.04     Late Payment
Charge. Other remedies for nonpayment of rent notwithstanding, if the monthly rental payment is not received by Lessor on or before the fifteenth (15th) day of the month for which the rent is due, of if any other payment due
Lessor by Lessee is not received by Lessor on or before the tenth day of the month next following the month in which Lessee was invoiced, a late payment charge of five percent of such past due amount shall become due and payable in addition to such
amounts owed under this lease.
 2.05     Increase in Insurance
Premiums. If an increase in any insurance premiums paid by Lessor for the building is caused by Lessee’s use of the leased premises in a manner other than as set forth in Section 1.06, or if Lessee vacates the leased
premises and causes an increase in such premiums, then Lessee shall pay as additional rent the amount of such increase to Lessor.
 2.06     Security Deposit. The security deposit set forth above shall be held by Lessor for the performance of Lessee’s covenants and obligations under this Lease, it
being expressly understood that the security deposit shall not be considered an advance payment of rental or a measure of Lessor’s damage in case of default by Lessee. Upon the occurrence of any event of default by Lessee, Lessor may, from time
to time, and after the giving of notice as provided herein and should Lessee fail to cure, without prejudice to any other remedy, use the security deposit to the extent necessary to make good any arrears of rent, or to repair any damage or injury,
or pay any expense or liability incurred by Lessor as a result of the event of default or breach of covenant, and any remaining balance of the security deposit shall be returned by Lessor to Lessee upon termination of this Lease. If any portion of
the security deposit is so used or applied, Lessee shall upon twenty days written notice from Lessor, deposit with Lessor by cash or cashier’s check an amount sufficient to restore the security deposit to its original amount.
 2.07     Holding Over. In the event that Lessee does not vacate the
leased premises upon the expiration or termination of this Lease, Lessee shall be a tenant at will for the holdover period of all of the terms and provisions of this Lease shall be applicable during that period, except that Lessee shall

 
 

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  pay lessor as base rental for the period of such holdover, an amount equal to two times the base rent which would have been payable by Lessee had the
holdover period been a part of the original term of this Lease. In the event of holdover, Lessee agrees to vacate and deliver the leased premises to Lessor upon Lessee’s receipt of notice from Lessor to vacate. The rental payable during the
holdover period shall be payable to Lessor on demand. No holding over by Lessee, whether with or without the consent of Lessor, shall operate to extend the term of this Lease.
 ARTICLE 3.00 OCCUPANCY AND USE
 3.01     Use. Lessee warrants and represents to Lessor that the leased premises shall be used and occupied only for the purpose as set forth in Section 1.06. Lessee shall occupy the leased premises, conduct its business and use
reasonable efforts to control its agents, employees, invitees and visitors in such a manner as is lawful, reputable and will not create a nuisance. Lessee shall use reasonable efforts to not permit any operation which emits any odor or matter which
intrudes into other portions of the building, use any apparatus or machine which makes undue noise or causes vibration in any portion of the building or otherwise interfere with, annoy or disturb any other lessee in its normal business operations or
Lessor in its management of the building. Lessee shall neither permit any waste on the leased premises nor allow the leased premises to be used in any way which would, in the reasonable opinion of Lessor, be extra hazardous on account of fire or
which would in any way increase or render void the fire insurance on the building. It is expressly agreed that the leased premises do not include land beneath nor any space above the finished ceiling level of the premises, provided that Lessee shall
have the non-exclusive right to use a portion of such space for the location of Lessee’s construction and equipment serving the leased premises subject to reasonable approval of Lessor as to location and installation.
 3.02     Signs. No sign of any type or description shall be erected, placed or
painted in or about the leased premises or project except those signs submitted to Lessor in writing and reasonably approved by Lessor in writing, and which signs are in conformance with Lessor’s reasonable sign criteria established for the
project. All interior and exterior signs for tenant’s use shall be at tenant’s sole cost and expense but shall be included in the tenant improvement allowance provided by Landlord as set forth in Addendum B.
 3.03     Compliance with Laws, Rules and
Regulations. Lessee, at Lessee’s sole cost and expense, shall comply with all laws, ordinances, orders, rules and regulations or state, federal, municipal or other agencies or bodies having jurisdiction over the use,
condition or occupancy of the leased premises. Lessee will comply with the rules and regulations of the building adopted by Lessor which are set forth on a schedule attached to this Lease. Lessor shall have the right at all times to change and amend
the rules and regulations in any reasonable manner as may be deemed advisable for the safety, care, cleanliness, preservation of good order and operation or use of the building or the leased premises. All changes and amendments to the rules and
regulations of the building will be sent by Lessor to Lessee in writing and shall thereafter be carried out and observed by Lessee.
 3.04     Warranty of Possession. Lessor warrants that it has the right and authority to execute this Lease, and Lessee, upon payment of the required rents and subject to the
terms, conditions, covenants and agreements contained in this Lease, shall have possession of the leased premises during the full term of this Lease as well as any extension or renewal thereof. Lessor shall not be responsible for the accts or
omissions of any other lessee or third party that may interfere with Lessee’s use and enjoyment of the leased premises.
 3.05     Inspection. Lessor or its authorized agents shall at any and all reasonable times and upon reasonable notice to
Lessee have the right to enter the leased premises to inspect the same, to supply janitorial service or any other service to be provided by Lessor, to show the leased premises to prospective purchasers or lessees, and to alter, improve or repair the
leased premises or any other portion of the building at reasonable times and upon reasonable notice. Lessee hereby waives any claim for damages for injury or inconvenience to or interference with Lessee’s business, any loss or occupancy or use
of the leased premises, and any other loss occasioned thereby. Lessor shall at all times have and retain a key with which to unlock all doors in upon and about the leased premises at reasonable times and upon reasonable notice. Lessee shall not
change Lessor’s lock system or in any other manner prohibit Lessor from entering the leased premises at reasonable times and upon reasonable notice. Lessor shall have the right to use any and all reasonable means which Lessor may deem proper to
open any door in an emergency without liability therefor.
 ARTICLE 4.00 UTILITIES AND SERVICE
 4.01     Building Services. Lessor shall provide water and electricity for Lessee during the term of
this Lease. Lessee shall pay all telephone charges. Lessor shall furnish Lessee hot and cold water at those points of supply provided for general use of other lessees in the building, central heating and air conditioning in season (at times Lessor
normally provides these services to other lessees in the building, and at temperatures an in amounts as are considered by Lessor to be standard or in compliance with
 

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  governmental regulations). Electric service shall be separately metered to the leased premises to assist in billing Lessee for its electrical consumption.
Lessor shall also provide routine maintenance, painting and electric lighting service for all public areas and special service areas of the building in the manner and to the extent deemed by Lessor to be reasonably standard. Should any of the
equipment or machinery break down, or for any cause cease to function properly, Lessor shall use reasonable diligence to repair the same promptly, but Lessee shall have no claim for rebate of rent on account of any interruption in service occasioned
from the repairs. Lessor reserves the right from time to time to make changes in the utilities and services provided by Lessor to the building.
 4.02     Theft or Burglary. Lessor shall not be liable to Lessee for losses to Lessee’s property or personal injury caused by criminal acts
or entry by unauthorized persons into the leased premises or the building.
 4.03     Janitorial Service. Lessor shall furnish janitorial services to the public areas of the building three to five times per week during the term of this Lease, excluding holidays. Lessee shall contract and pay for
janitorial services to its leased premises.
 4.04     Excessive Utility Consumption.
Lessee shall pay all utility costs occasioned by high electrical consumption electrodata processing machines, telephone equipment, computers and other equipment of high electrical consumption, including without limitation,
the cost of installing, servicing and maintaining any special or additional inside or outside wiring or lines, meters or submeters, transformers, poles, air conditioning costs, or the cost of any other equipment necessary to increase the amount or
type of electricity or power available to the leased premises. Notwithstanding the foregoing, standard P.C., telephone equipment and other similar standard office equipment shall not be deemed high electrical consumption equipment.
 4.05     Window Covering. Lessor shall furnish and install window
coverings on all exterior windows to maintain a uniform exterior appearance. Lessee shall not remove or replace these window coverings or install any other window covering which would affect the exterior appearance of the building. Lessee may
install lined or unlined over draperies in the interior sides of he Lessor furnished window coverings for interior appearance or to reduce light transmission, provided such over draperies do not affect the exterior appearance of the building or
affect the operation of the building’s heating, ventilating and air conditioning systems.
 4.06     Charge for Service. All costs of Lessor for providing the services set forth in Article 4.00 (except those charges paid by Lessee pursuant to Section 4.04) shall be
subject to the additional rent provisions in Section 2.02.
 ARTICLE 5.00 REPAIRS AND MAINTENANCE
 5.01     Lessor Repairs. Lessor shall not be required to make any improvements (except the initial
Lessor’s improvements required in Article 6.01 and Addendum B), replacements or repairs of any kind or character to the leased premises or the project during the term of this Lease except as are set forth in this section. Lessor shall maintain
only the roof, foundation, parking and common areas, the structural soundness of the exterior walls, doors, corridors, windows and other structures or equipment serving the leased premises. Lessor’s cost of maintaining and repairing the items
set forth in this section are subject to the additional rent provisions in Section 2.02. Lessor shall not be liable to Lessee, except as expressly provided in this Lease, for any damage or inconvenience, and Lessee shall not be entitled to any
abatement or reduction of rent by reason of any repairs, alterations or additions made by Lessor under this Lease.
 5.02     Lessee Repairs. Lessee shall, at its own cost and expense, repair and replace any damage to injury to all or any part of the eased premises caused by any act or
omission of Lessee or Lessee’s agents, employees, invitees, licensees or visitors; provided, however, if Lessee fails to make the repairs or replacements promptly, Lessor may, at its option, after
giving notice to Lessee, and after Lessee having failed to make such repairs or replacements within twenty (20) days of the date of such notice, make reasonable repairs or replacements, and the cost of such repairs or replacements shall be charged
to Lessee as additional rent and shall become payable by Lessee with the payment of the rent next due hereunder. Lessor may make emergency repairs without prior notice to Lessee.
 5.03     Request for Repairs. All request for repairs or maintenance to the leased premises that are the responsibility
of Lessor pursuant to any provision of this Lease must be made in writing to Lessor at the address in Section 1.05.
 5.04 Lessee Damages.          Lessee shall not damage any portion of the leased premises or building, and at the termination of this Lease, by lapse of time or otherwise, Lessee shall deliver
the leased premises to Lessor in as good condition as existed at the commencement date of this Lease, ordinary wear and tear excepted. The cost and expense of any repairs necessary to restore the condition of the leased premises shall be borne by
Lessee.
 

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  ARTICLE 6.00 ALTERATIONS AND IMPROVEMENTS
 6.01     Lessor Improvements. Lessor will complete the construction of the improvements to the leased premises in accordance with plans and
specifications agreed to by Lessor and Lessee, which plans and specifications are made a part of this Lease by reference. Any changes or modifications to the approved plans and specifications shall be made and accepted by written change order or
agreement signed by Lessor and Lessee and shall constitute an amendment to this Lease. Either party may declare this Lease null and void if the plans and specifications are not mutually approved, despite the best efforts of the parties on or before
forty-five (45) days after the execution date of this Lease. Lessor shall bear the expense of its architect for the Lessor improvements and Lessee shall bear the expenses of its space planning consultant.
 6.02     Lessee Improvements. Lessee shall not make or allow to be made any alterations or physical
additions in or to the leased premises without first obtaining the written consent of Lessor, which consent shall not be unreasonably withheld. Any alterations, physical additions or improvements to the leased premises made by Lessee shall at once
become the property of Lessor and shall be surrendered to Lessor upon the termination of this Lease provided that Lessee shall be entitled to retain the property listed on Exhibit A attached hereto, and provided further that, Lessor, at its option,
may require Lessee to remove any physical additions and/or repair any alterations in order to restore the leased premises to the condition existing at the time Lessee took possession, reasonable wear and tear excepted, all costs of removal and/or
alterations to be borne by Lessee. This clause shall not apply to moveable equipment of furniture owned by Lessee, which may be removed by Lessee at the end of the term of this Lease if Lessee is not then in default and if such equipment and
furniture are not then subject to any other rights, liens and interests of Lessor.
 ARTICLE 7.00 CASUALTY AND INSURANCE
 7.01     Substantial Destruction. If the leased premises should be totally
destroyed by fire or other casualty, or if the leased premises should be damaged so that rebuilding cannot reasonably be completed within ninety working days after the date for written notification by Lessee to Lessor of the destruction, this Lease
shall terminate and the rent shall be abated for the unexpired portion of the Lease, effective as of the date of the written notification.
 7.02     Partial Destruction. If the leased premises should be partially damaged by fire or other casualty, and rebuilding or repairs can
reasonably be completed within ninety working days from the date of written notification by Lessee to Lessor of the destruction, this Lease shall not terminate, and Lessor shall at its sole risk and expense proceed with reasonable diligence to
rebuild or repair the building or other improvements substantially the same condition in which they existed prior to the damage. If the leased premises are to be rebuilt or repaired and are untenantable in whole or in part following the damage, and
the damage or destruction was not caused or contributed to by act or negligence of Lessee, its agents, employees, invitees or those for whom Lessee is responsible, the rent payable under this Lease during the period for which the leased premises are
untenantable shall be adjusted to such an extent as may be fair and reasonable under the circumstances. In the event that Lessor fails to complete the necessary repairs or rebuilding within ninety working days from the date of written notification
by Lessee to Lessor of the destruction, Lessee may at its option terminate this Lease by delivering written notice of termination to Lessor, whereupon all rights and obligations under this Lease shall cease to exist.
 7.03     Lessee’s Insurance. Lessee shall, at its sole expense, maintain in
effect at all times during the Term insurance coverage with limits not less than those set forth below with insurers licensed to do business in the State of Colorado: a) Workers Compensation Insurance - minimum limit as defined by Statute and as
same may be amended from time to time; b) Employer’s Liability Insurance - minimum limit $100,000; c) and Commercial General, Liability and Bodily Injury/Property Damage Insurance, on a combined single limit basis, with limits of not less than
$500,000 per occurrence and with annual aggregate limits of not less than $1,000,000. These policies shall be on a form acceptable to Lessor, endorsed to include Lessor as an additional insured, state that the insurance is primary over any insurance
carried by Lessor, and the commercial general liability policy shall include the following coverages: a) premises/operations; b) independent contractors; c) broad form contractual in support of the indemnity section of this lease; and, d) personal
injury liability.
 If Lessee does not procure insurance as required, Lessor may, upon reasonable advance written notice to Lessee, cause this insurance to be
issued, and Lessee shall pay to Lessor the premium for this insurance within twenty (20) days of Lessor’s demand, plus interest at the highest lawful rate for a loan of like amount from the date of payment by Lessor until repaid by
Lessee.
 7.03.01           Lessor’s
Insurance. Lessor shall maintain at all times during the term of this Lease form and after substantial completion: a) standard all-risk fire and casualty insurance, covering the building in amounts at lease equal to the full
replacement cost of the building at the time in question, but in no event less than such coverage as is required to avoid co-insurance provisions; b) comprehensive public liability insurance; c) employer’s liability insurance; d) excess
liability insurance over the insurance
 

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  referred by subsection C of this section; e) worker’s compensation insurance in statutory limits; and, f) seen other insurance coverage as is
customarily carried in respect of comparable buildings. The limits shall be increased by Landlord from time to time during the term of this lease to at least such minimum limits as shall than be customary in respect of comparable
buildings.
 7.03.02           General
Requirements. All policies of insurance required under this article shall provide that they will not be canceled upon less than thirty (30) days prior written notice to Lessor and Lessee. Each party shall furnish to the other
a certificate or certificates of insurance certifying that the insurance coverage required is in force, if requested by the other party. The coverage shall be issued by companies licensed to do business it the State of Colorado and otherwise
reasonably satisfactory to the parties. Not less than thirty (30) days prior to expiration of the coverage, renewal policies or certificates of insurance evidencing renewal shall be provided. Any insurance required by the terms of this Lease may be
under a blanket policy (or policies) covering other properties of Lessor or Lessee and/or their related or affiliated corporations. If such insurance is maintained under a blanket policy, the respective party shall procure and deliver to the other
party a statement from the insurer or general agent of the insurer setting forth the coverage maintained and the amount thereof allocated to the risk intended to be insured here under.
 7.04     Waiver of Subrogation. Anything in this Lease to the contrary notwithstanding, Lessor and Lessee hereby waive
and release each other of and from any and all right of recover, claim, action or cause of action, against each other, their agents, offices and employees, for any loss or damage that may occur to the leased premises, improvements to the building
which the leased premises are a part, or personal property within the building, by reason of fire or the elements, regardless of cause or origin, including negligence of Lessor or Lessee end their agents, officers and employees. Lessor and Lessee
agree immediately to give their respective insurance companies which have issued policies of insurance covering all risk of direct physical loss, written notice of the terms of the mutual waivers contained it this section, and to have the insurance
policies properly endorsed, if necessary, to prevent the invalidation of the insurance coverages by reason of the mutual waivers.
 7.05     Hold Harmless. Lessor shall not be liable to Lessee’s employees, agents, invitees, licensees or visitors, or to any other person, for an injury to person or
damage to property on or about the leased premises caused by any act of omission of Lessee, its agents, servants or employees, or of any other person entering upon the lease premises under express or implied invitation by Lessee, or caused by the
improvements located on the leased premises becoming out of repair, the failure or cessation of any service provided by Lessor (including security service and devices), or caused by leakage of gas, oil, water or steam or by electricity emanating
from the leased premises. Lessee agrees to indemnify and hold harmless Lessor of and from any loss, attorney’s fees, expenses or claims arising out of any such damage or injury.
 Lessee shall not be liable to Lessor’s employees, agents, invitees, licensees or visitors, or to any other person, for any injury to person or damage to property on or about the leased premises and caused solely by an act or omission of
Lessor, its agents, servants or employees. Lessor agrees to indemnify and hold harmless Lessee of and from any loss, attorney’s fees, expenses or claims arising out of any such damage or injury.
 ARTICLE 8.00 CONDEMNATION
 8.01     Substantial Taking. If all or a substantial part of the leased premises are taken for any public or quasi-public use under any government law, ordinance or
regulation, or by right of eminent domain or by purchase in lieu thereof, and the taking would prevent or materially interfere with the use of the leased premises for the purpose for which it was then being used, this Lease shall terminate and the
rent shall be abated during the unexpired portion of this Lease effective on the date physical possession is taken by the condemning authority. Lessee shall have no claim to the condemnation award or proceeds in lieu thereof.
 8.02     Partial Taking. If a portion of the leased premises shall be taken for
any public or quasi-public use under any governmental law, ordinance or regulation, or by right of eminent domain or by purchase in lieu thereof, and the Lease is not terminated as provided in Section 8.01 above, Lessor shall at Lessor’s sole
risk and expense, restore and reconstruct the building and other improvements on the leased premises to the extent necessary to make it reasonably tenantable. The rent payable under this Lease during the unexpired portion of the term shall be
adjusted to such an extent as may be fair and reasonable under the circumstances. Lessee shall have no claim to the condemnation award or proceeds in lieu thereof.
 ARTICLE 9.00 ASSIGNMENT OR SUBLEASE
 9.01     Lessor
Assignment. Lessor shall have the right to sell, transfer or assign, in whole or in part, its rights and obligations under this Lease and in the building. Any such sale transfer or assignment shall operate to release Lessor
from any and all liabilities under this Lease arising after the date of such
 

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  said assignment or transfer.
 9.02     Lessee Assignment. Lessee shall not assign, in whole or in part, this Lease, or allow it to be assigned, in whole or in part, by operation of law or otherwise
(including without limitation by transfer of a majority interest of stock, merger or dissolution, which transfer of majority interest of stock, merger or dissolution shall be deemed an assignment) or mortgage or pledge the same, or sublet the leased
premises, in whole or in part, without the prior written consent of Lessor, which consent shall not be unreasonable withheld or delayed, and in no event shall any such assignment or sublease ever release Lessee or arty guarantor from any obligation
or liability hereunder. No assignee or sublessee of the leased premises or any portion thereof may assign or sublet the leased premises or any portion thereof without the written consent of Lessor, which consent shall not be unreasonably
withheld.
 9.03     Conditions of Assignment. If Lessee
desires to assign or sublet all or any part of the leased premises, it shall so notify Lessor at least thirty days in advance of the date on which Lessee desires to make such assignment or sublease. Lessee shall provide Lessor with a copy of the
proposed assignment or sublease and such information as Lessor might reasonably request concerning the proposed sublessee or assignee to allow Lessor to make informed judgements as to the financial condition, reputation, operations and general
desirability of the proposed sublessee or assignee. Within fifteen days after Lessor’s receipt of Lessee’s proposed assignment or sublease and all required information concerning the proposed sublessee or assignee, Lessor shall have the
following options: (1) consent to the proposed assignment of sublease, or (2) refuse, in its reasonable determination to consent to the proposed assignment or sublease, which refusal shall be deemed to have been exercised unless Lessor gives Lessee
written notice providing otherwise. Upon the occurrence of an event of default, if all or any party of the leased premises are then assigned or sublet, Lessor, in addition to any other remedies provided by this lease or provided by law may, at its
option, collect directly from the assignee or sublessee all rents becoming clue to Lessee by reason of the assignment of sublease, and Lessor shall have a security interest in all properties on the leased premises to secure payment of such sums. Any
collection directly by Lessor from the assignee or sublessee shall not be construed to constitute a novation or a release of Lessee or any guarantor from the further performance of its obligations under this Lease.
 9.04     Rights of Mortgagee. If the interests of Lessor under this Lease shall
be transferred by reason of foreclosure of other proceedings for enforcement of any first mortgage or deed of trust on the leased premises, Lessee shall be bound to the transferee (sometimes called the “Purchaser”) under the terms,
covenants and conditions of this Lease for the balance of the term remaining, including any extensions or renewals, with the same force and effect as were Lessor under this Lease, and Lessee agrees to attorn to the Purchaser, including the first
mortgagee under any such mortgage if it be the Purchaser, as its Lessor. The Lease shall remain in effect upon any foreclosure of, or purchase of, the building, so long as the Lessee is not then in default thereunder. Lessor shall use its best
efforts to obtain an Attornment and Subordination Agreement, in a form acceptable to Lessee, between the parties and the existing mortgagee within ten (10) days after the execution hereof. Should the Agreement not be timely obtained, either party
may declare this Lease null and void upon written notice to the other party posted within ten (10) days after the expiration of the ten (10) day period to provide the Agreement.
 9.05     Estoppel Certificates. Lessee agrees to furnish, at reasonable times, within twenty days after receipt of a
request from Lessor or Lessor’s mortgage, a statement certifying, if applicable, the following: Lessee is in possession of the leased premises; the leased premises are acceptable; the Lease is in full force and effect; he Lease is unmodified;
Lessee claims no present charge, lien, or claim of offset against rent; the rent is paid for the current month, but is not prepaid for more than one month and will not be prepaid for more than one month in advance; there is no known existing default
by reason of some act of omission by Lessor; and such other matters as may be reasonably required by Lessor or Lessor’s mortgagee. Lessee’s failure to deliver such statement, in addition to being a default under this Lease, shall be deemed
to establish conclusively that this Lease is in full force and effect except as declared by Lessor, that Lesssor is not in default of any of its obligations under this Lease, and that Lessor has not received more than one month’s rent in
advance.
 ARTICLE 10.00 DEFAULT AND REMEDIES
 10.01   Default by Lessee. The following shall be deemed to be events of default by Lessee under this Lease: (1) Lessee shall fail to pay when due any
installment of rent or any other payment required pursuant to this Lease. Lessee shall be in default if rent is not paid by the first day of each month. However, Lessee shall have the right to cure laid default until any eviction order be issued by
a court of competent jurisdiction; (2) Lessee shall abandon any substantial portion of the leased premise; (3) Lessee shall fail to comply with any term, provision or covenant of this Lease, other than the payment of rent, and the failure is not
cured within twenty days after written notice to Lessee unless the ability to timely cure is not within the control of Lessee; (4) Lessee shall file a petition or be adjudged bankrupt or insolvent under any applicable federal or state bankruptcy or
insolvency law or admit that
 

7

  it does not meet its financial obligations as they become due, or a receiver or trustee shall be appointed for ___ or substantially all of the assets of
Lessee; or Lessee shall make transfer in fraud of creditors or shall make an assignment for the benefit of creditors; or (5) Lessee shall do or permit to be done any act which results in a lien being filed against the leased premises or the building
and/or project of which the leased premises are a part unless Lessee provides reasonable protection therefor.
 10.02   Remedies for Lessee’s Default. Upon the occurrence of any event of default set forth in this Lease, Lessor shall have the option to pursue any one or more of the remedies
set forth herein without any notice or demand. (1) Lessor may enter upon and take possession of the leased premises, by picking or changing locks if necessary, and lock out, expel or remove Lessee and any other person who may be occupying or any
part of the leased premises without being liable for any claim for damages, and relet the leased premises on behalf of Lessee and receive the rent directly by reason of the reletting. Lessee agrees to pay Lessor on demand any deficiency that may
arise by reason of any reletting of the leased premises; further, Lessee agrees to reimburse Lessor for any expenditures made by it in order to relet the leased premises, including, but not limited to, remodeling and repair costs. (2) Lessor may
enter upon the leased premises, by picking or changing locks if necessary, without being liable for any claim to- damages, and, acting reasonable, do whatever Lessee is obligated to do under the terms of this Lease. Lessee agrees to
reimburse Lessor on demand for any expenses which Lessor may incur in effecting compliance with Lessee’s obligations under this Lease, (3) Lessee may terminate this Lease in which event Lessee shall immediately surrender the leased premises to
Lessor, and if Lessee fails to surrender the leased premises, Lessor may, without prejudice to any other remedy which it may have for possession or arrearages in rent, enter upon and take possession of the leased premises by picking or changing
locks if necessary and lock out, expel or remove Lessee and any other person who may be occupying all or any part of the leased premises without being liable for any claim for damages. Lessee agrees to pay on demand the amount of all loss and damage
which Lessor may suffer by reason of the termination of this Lease under this section, whether through inability to relet the leased premises on satisfactory terms or otherwise. A rent concession or waiver of the base rent shall not relieve Lessee
of any obligation to pay any other charge due and payable under this Lease including without limitation any sum due under Section 2.02. Notwithstanding anything contained in this Lease to the contrary, this Lease may be terminated by Lessor only by
mailing or delivering written notice of such termination to Lessee, as provided herein and no other act or omission of Lessor shall be construed as a termination of this Lease.
 ARTICLE 11.00 DEFINITIONS
 11.01   Abandon. “Abandon” means the vacating of all or a substantial portion of the leased premises by Lessee, whether or not Lessee is in default of the rental payments due under this Lease.
 11.02   Act of God or Force Majeure. An “act of God” or “force majeure” is defined for purposes of this Lease as strikes, lockouts, sitdowns, material or labor restrictions by any governmental authority, unusual transportation delays, riots, floods,
washouts, explosions, earthquakes, fire storms, weather (including wet grounds or inclement weather which prevents construction), acts of the public enemy, wars, insurrections and any other cause not reasonably within the control of Lessor and which
by the exercise of due diligence Lessor is unable, wholly or in part, to prevent or overcome.
 11.03   Building or Project. “Building” or “project” as used in this Lease means the building and/or project described in Section 1.02, including the leased premises
and the land upon which the building or project is situated.
 11.04   Commencement
Date. “Commencement date” shall be the date set forth in Section 1.03. The commencement date shall constitute the commencement of the term of this Lease for all purposes, whether or not Lessee has actually taken
possession.
 11.05   Completion Date. “Completion date”
shall be the date on which improvements erected and to be erected upon the leased premises shall have been completed in accordance with the plans and specifications described in Article 6.00. The completion date shall constitute the commencement of
the term of this Lease for all purposes, whether or not Lessee has actually taken possession. Lessor shall use its best efforts to establish the completion date as the date set forth in Section 1.03. In the event that the improvements have not in
fact been completed as of that date, Lessee shall notify Lessor in writing of its objections. Lessor shall have a reasonable time after delivery of the notice in which to take such corrective action as may be necessary and shall notify Lessee in
writing as soon as it deems such corrective action has been completed and the improvements are ready for occupancy. Upon completion of construction, Lessee shall deliver to Lessor a letter accepting the leased premises as suitable for the purposes
for which they are let and the date of such letter shall constitute the commencement of the term of this Lease. Whether or not Lessee has executed such letter of acceptance, taking possession of the leased premises by Lessee shall be deemed to
establish conclusively that the improvements have been completed in accordance with the plans and specifications, are suitable for the purposes for which the leased premises are let, and that the leased premises are in good and satisfactory
condition as of the date possession was so taken by Lessee,
 

8

  except for latent defects, if any. The reasonable time to complete after notice shall not exceed 60 days unless the delays are caused by Lessee.

11.06   Square Feet. “Square feet” or “square foot” as used
in this Lease includes the area contained within the leased premises together with a common area percentage factor of the leased premises proportionate to toe total rentable building area. Lessee’s actual percentage for computation of its share
of operating expenses shall be agreed upon by the parties at the same time as agreement on the plans and specifications as required in Article 6.02.
 ARTICLE
12.00 MISCELLANEOUS
 12.01   Waiver. Failure of Lessor to declare
an event of default immediately upon its occurrence, or delay in taking any action in connection with an event of default, shall not constitute a waiver of the default, but Lessor shall have the right to declare the default at any time and take such
action as is lawful or authorized under this Lease so long as the event of default continues. Pursuit of any one or more of the remedies set forth in Article 10.00 above shall not preclude pursuit of any one or more of the other remedies provided
elsewhere in this Lease or provided by law, nor shall pursuit of any remedy constitute forfeiture or waiver of any rent or damages accruing to Lessor by reason of the violation of any of the terms provisions or covenants of this Lease. Failure by
Lessor to enforce one or more of the remedies provided upon an event of default shall not be deemed or construed to constitute a waiver of the default or of any other violation or breach of any of the terms, provisions and covenants contained in
this Lease.
 12.02   Act of God. Lessor shall not be required to
perform any covenant or obligation in this Lease, or be liable in damages to Lessee, so long as the performance or non-performance of the covenant or obligation is delayed, caused or prevented by an act of God, force Majeure or by Lessee.

12.03   Attorney’s Fees. In the event either party defaults in the
performance of any of the terms, covenants, agreements or conditions contained in this Lease and the non-defaulting party places in the hands of an attorney the enforcement of all or any part of this Lease, including an action for recovery of the
possession of the leased premises, the defaulting party agrees to pay the non-defaulting party’s costs of collection, including reasonable attorney’s fees for the services of the attorney whether suit is actually filed or not.

12.04   Successors. This Lease shall be binding upon and inure to the benefit of
Lessor and Lessee and their respective heirs, personal representatives, successors and assigns. It is hereby covenanted and agreed that should Lessor’s interest in the leased premises cease to exist for any reason during the term of this Lease,
then notwithstanding the happening of such event this Lease nevertheless shall remain unimpaired and in full force and effect, and Lessee hereunder agrees to attorn to the then owner of the leased premises.
 12.05   Rent Tax. If applicable in the jurisdiction where the leased premises are situated, Lessee shall pay
and be liable for all rental, sales and use taxes or other similar taxes, if any levied or imposed by any city, state, county or other governmental body having authority, such payments to be in addition to all other payments required to be paid to
Lessor by Lessee under the terms of this Lease. Any such payment shall be paid concurrently with the payment of the rent, additional rent, operating expenses or other charge upon which the tax is based as set forth above.
 12.06   Captions. The captions appearing in this Lease are inserted only as a matter of
convenience and in no way define, limit, construe or describe the scope or intent of any section.
 12.07   Notice. All rent arid other payments required to be made by Lessee shall be payable to Lessor at the address set forth in section 1.05. All payments required to be made by
Lessor to Lessee shall be payable to Lessee at the address set forth in Section 1.05, or at any other address within the United States as Lessee may specify from time to time by written notice. Any notice or document required or permitted to be
delivered by the terms of this Lease shall be deemed to be delivered (whether or not actually received) when deposited in the United States Mail, postage prepaid, certified mail, return receipt requested, addressed to the parties at the respective
addresses set forth in Section 1.05.
 12.08   Submission of Lease.
Submission of this Lease to Lessee for signature does not constitute a reservation of space or an option to lease. This Lease is not effective until execution by and delivery to both Lessor and Lessee.
 12.09   Corporate Authority. If Lessee executes this Lease as a corporation, each of the persons executing
this Lease on behalf of Lessee does hereby personally represent and warrant that Lessee is a duly authorized and existing corporation, that Lessee is qualified to do business in the state in which the leased premises are located, that the
corporation has full right and authority to enter into this Lese,
 

9

  and that each person signing on behalf of the corporation , is authorized to do so. In the event any representation or warranty is false, all persons who
execute this Lease shall be liable, individually, as Lessee.
 If Lessor executes this Lease as a limited liability company, each of the persons executing this
Lease on behalf of Lessor does hereby personally represent and warrant that Lessor is a duly authorized and existing limited liability company, that Lessor is qualified to do business in the state in which the leased premises are located that the
limited liability company has full right and authority to enter into this Lease, and that each person signing on behalf of the limited liability company is authorized to do so. In the event any representation or warranty is false, all persons who
execute this Lease shall be liable, individually, as Lessor.
 12.10   Severability. If any provision of this Lease or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Lease and the application for such provisions
to other persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law.
 12.11   Lessor’s Liability. If Lessor shall be in default under this Lease and, if as a consequence of such default, Lessee shall recover a money judgment against Lessor, such
judgment shall be satisfied only out of the assets of Lessor as a Limited Liability Company.
 12.12   Indemnity. Lessor agrees to indemnify and hold harmless Lessee from and against any liability or claim, whether meritorious or not, arising with respect to any broker whose claim arises by through or on behalf of
Lessor. Lessee agrees to indemnify and hold harmless Lessor from and against any liability or claim, whether meritorious or not, arising with respect to any broker whose claim arises by, through or on behalf of Lessee.
 12.13   Governing Law. Any interpretation of this Lease or any other determination of the
rights or liabilities of the parties hereto, shall be governed by the laws of the State of Colorado.
 12.14   Brokers. See attached Addendum C(5) for Broker’s Commission Provisions.
 12.15   Time of Essence. Time is of the essence for all provisions of this Lease.
 12.16   Rules and Regulations. The attached Rules and Regulations do hereby become a part of this Lease and Agreement.

ARTICLE 13.00 OTHER PROVISIONS
 Addendum.
Incorporated into this lease by reference.
 Addendum A - Rent Schedule
Addendum B - Lessee’s improvements and Space
Plan
Addendum C - Additional Provisions
 ARTICLE 14.00 AMENDMENT AND LIMITATION OF WARRANTIES
 Entire Agreement. IT IS EXPRESSLY AGREED BY LESSEE, AS A MATERIAL CONSIDERATION FOR THE EXECUTION OF THIS LEASE, THAT THIS LEASE, WITH THE SPECIFIC
REFERENCES TO WRITTEN EXTRINSIC DOCUMENTS, IS THE ENTIRE AGREEMENT OF THE PARTIES; THAT THERE ARE, AND WERE, NO VERBAL REPRESENTATIONS, WARRANTIES, UNDERSTANDINGS, STIPULATIONS, AGREEMENTS OR PROMISES PERTAINING TO THIS LEASE OR TO THE EXPRESSLY
MENTIONED EXTRINSIC DOCUMENTS NOT INCORPORATED IN WRITING IN THIS LEASE.
 Amendment. THIS LEASE MAY NOT BE ALTERED, WAIVED, AMENDED
OR EXTENDED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY LESSOR AND LESSEE.
 Limitation of Warranties. LESSOR AND LESSEE EXPRESSLY
AGREE THAT THERE ARE AND SHALL BE NO IMPLIED WARRANTIES OR MERCHANTABILITY, HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OF ANY OTHER KIND ARISING OUT OF THIS LEASE, AND THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THOSE EXPRESSLY SET FORTH IN
THIS LEASE.
 ARTICLE 14.00 SIGNATURES
 

10

  SIGNED at Colorado Springs, this 23rd day of MAY, 1996
   

	 LESSOR:
 	  
 	 LESSEE:
 	  
 
	 
 2221 Bijou Limited Liability Company,
 a Colorado Limited Liability Company
 	  
 	 
 American Teleconferencing Services, Ltd.
 	  
 
	  
 	  
 	 /s/ ROBERT A. COWEN
 	  
 
	 
 	  
 	 
 	  
 
	 
 BY:
 	 
 /s LARS E. AKERBERG
 	  
 	  
 	  
 
	  
 	 
 	  
 	 
 	  
 
	 Its
 	 MANAGING PARTNER
 	  
 	 Its
 	 PRESIDENT
 	  
 
						

 
   

	 WITNESSES:
 	  
 	 WITNESSES:
 	  
 
	 
 /s/ WILLIAM PLULTO
 	  
 	 
 /s/ S.L. MOCK
 	  
 
	 
 	  
 	 
 	  
 
	 
 /s/ BONNIE A. ALTMAN
 	  
 	 
 /s/ RICHARD L. CLARK
 	  
 
	 
 	  
 	 
 	  
 

 

11

  ADDENDUM TO LEASE AGREEMENT
 THIS
ADDENDUM is entered this 1st day of August, 1996, by and between 2221 Bijou Limited Liability Company (“Lessor”) and American Teleconferencing Service, Ltd. (“Lessee”).
 WITNESSETH, THE FOLLOWING RECITALS:
 WHEREAS, on May 23,
1996 the parties entered into that certain Standard Office Lease concerning a portion of “The Chidlaw Building” located at 2221 Bijou Street, Colorado Springs, Colorado, and
 WHEREAS, on July _____, 1996, the parties agreed on the plans and specifications for the build-out of the Tenant’s space, which agreement was a condition precedent to the validity of the
Lease, and
 WHEREAS, said agreement on the plans and specifications resulted in the parties’ agreement to modify additional
terms.
 NOW. THEREFORE, in consideration of the foregoing recitals, and the mutual covenants hereafter, the parties agree to the
following amended terms:
 1.         Base Rental
Rate.    The initial Base Rental Rate shall increase from $6/sq. ft. to $6.80/sq. ft. Periodic increases thereafter shall remain at the $0 .25 or $0.50 increments as set
forth in the Lease.
 2.         Landlord’s Build-Out
Expenses.   In consideration of the rental rate increase, Landlord’s build-out expenses shall be increased by a sum of $250,000.00, which expenses are financed by and in
consideration for the rent increase.
 3.         Ratification.    The parties hereby ratify and confirm all remaining terms, conditions and covenants of the original Standard Office Lease, not supplemented
hereby.
 
 

  IN WITNESS WHEREOF, the parties have signed this Addendum to Lease Agreement on the date above set
forth.
  

	 LESSOR:
 
 2221 Bijou Limited Liability Co.
 	  
 	 LESSEE:
 
 American Teleconferencing Services,. Ltd.
 
	 By: 
 	 
 /s/ LARS E. AKERBERG
 	  
 	 By: 
 	 
 /s/ ROBERT A. COWEN
 
	  
 	 
 	  
 	  
 	 
 
	  
 	 Lars e. Akerberg 
 
 
 	  
 	  
 	  
 
	 
 Its: 
 	 
 Managing Partner
 	  
 	 
 Its: 
 	 
 President
 

 
 
 

  AMENDED ADDENDUM A
 BASE RENT
SCHEDULE
 1.04     Base Rent
 (a)       Lessee agrees to pay the rent as set forth under the following Base Rent Schedule as Base Rent each month through the 120 month term
of this Lease. The Base Rent shall be paid on the square feet actually occupied according to the schedule and shall not include any pro-rata portion of the non-rentable building area. In addition to the Base Rent, Lessee agrees to pay all expense
relating to the leased premises as required herein and to pay its pro rata share of operating expenses relating to the building. Lessor’s estimate of the operating expenses it will incur for the building and leased premises is $1.18 per square
foot during the first calendar year of the lease term exclusive of tenant utilities and tenant janitorial.
  

	 YEAR
 	  
 	 BASE NNN RENT
 	  
 	 SQ/FT LEASED
 	  
 	 MONTHLY NNN RENT
 	  
 	 ANNUAL NNN RENT
 	  
 
	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 
	 1  (mo. 1 – est)
 	  
 	 $
 	 6.80
 	  
 	 27,109
 	  
 	 $
 	 15,361.77
 	  
 	  
 	  
 
	 1  (mo. 2 – 12, est)
 	  
 	 $
 	 6.80
 	  
 	 36,974
 	  
 	 $
 	 20,951.93
 	  
 	 $
 	 245,833.03
 	  
 
	 2  (mo. 13 – 18 est)
 	  
 	 $
 	 7.05
 	  
 	 45,000
 	  
 	 $
 	 26,437.50
 	  
 	  
 	  
 
	 2  (mo. 1924 est)
 	  
 	 $
 	 7.05
 	  
 	 50,470
 	  
 	 $
 	 29,651.12
 	  
 	 $
 	 336,531.72
 	  
 
	 3  9/98 – 8/99
 	  
 	 $
 	 7.30
 	  
 	 50,470
 	  
 	 $
 	 30,702.58
 	  
 	 $
 	 368,430.96
 	  
 
	 4  9/99 – 8/00
 	  
 	 $
 	 7.55
 	  
 	 50,470
 	  
 	 $
 	 31,754.04
 	  
 	 $
 	 381,048.48
 	  
 
	 5  9/00 – 8/01
 	  
 	 $
 	 7.80
 	  
 	 50,470
 	  
 	 $
 	 32,805.50
 	  
 	 $
 	 393,666.00
 	  
 
	 6  9/01 – 8/02
 	  
 	 $
 	 8.05
 	  
 	 50,470
 	  
 	 $
 	 33,856.96
 	  
 	 $
 	 406,283.52
 	  
 
	 7  9/02 – 8/03
 	  
 	 $
 	 8.30
 	  
 	 50,470
 	  
 	 $
 	 34,908.42
 	  
 	 $
 	 418,901.04
 	  
 
	 8  9/03 – 8/05
 	  
 	 $
 	 8.55
 	  
 	 50,470
 	  
 	 $
 	 35,959.88
 	  
 	 $
 	 431,518.56
 	  
 
	 9  9/04 – 8/05
 	  
 	 $
 	 8.80
 	  
 	 50,470
 	  
 	 $
 	 37,011.34
 	  
 	 $
 	 444,136,08
 	  
 
	 10  8/05 – 8/06
 	  
 	 $
 	 9.30
 	  
 	 50,470
 	  
 	 $
 	 39,113.96
 	  
 	 $
 	 469,367.52
 	  
 

 
 (b)       Triple Net Intent. It is the purpose and intent of Lessor and Lessee that the rent provided in Article 1.04 and 2.01 shall be absolutely net to Lessor, and that Lessee shall pay,
without notice or demand, and without abatement, deduction or setoff and save Lessor harmless from and against, all costs, taxes, insurance (including the cost of the insurance set forth in Section 7.03), expenses of maintenance, repair and
replacement, and other charges and expenses and obligations of every kind and nature whatsoever relating to the leased premises which may arise or become due during the term of this Lease. If Lessee is required to make any payment or incur any
expense as provided in this Lease and fails to do so, then Lessor, at its option, may make the payment or incur the expense on Lessee’s behalf, and the cost thereof shall be charged to Lessee as additional rent and shall be due and payable by
Lessee within twenty days from receipt of Lessor’s notice.
 
 

  To accomplish a true Triple Net Lease, Lessee’s share of operating expenses shall be computed on the Lessee’s share of the
“rentable” square feet rather than the “useable” square feet of the building. Until the building is 50% occupied or built out, Lessee’s share of operating expenses shall be 17.93%.
 WHERE:
 1.         TOTAL BLDG USEABLE SF = 296,380 SF
 2.         TOTAL BLDG RENTABLE SF = 95% of the TOTAL BLDG
USEABLE SF (296,380 x 95% = 281,561 SF).
 3.         Lessee’s operating expense percentage
is:
50,470 SF divided by 281,561 Rentable SF = 17.93%
 Notwithstanding the foregoing, during the first eighteen (18) months
of the Lease (unless Lessee’s square feet is increased by actual occupancy from the above Base Rent Schedule), Lessee shall pay its share of operating expenses on its share of the Rentable SF according to the above formula computed only on the
actual square feet leased. However, when computing Lessee’s share of the building utilities, Lessee’s share shall be computed as if Lessee occupied 50,470 SF during the first 18 months even though actual occupancy may be less than 50,470
SF.
 At such time as 100% of the building layout is built out or planned space according to plans and specifications, the actual building Rental SF shall be
computed and shall replace the estimate of 95% of Useable SF utilized in the above formula. Lessor shall provide written notice to Lessee of the actual Rentable SF at such time and Lessee shall thereafter pay its share of operating expenses on its
share of the actual Rentable SF commencing with the next due monthly rental installment. At such time as 50% occupancy or build out of the building is attained, Lessor shall have the right to adjust the total building Rentable SF to actual using the
5% non-rentable estimate for the 50% portion of the building not built out. Provided, however, the total building Rentable SF shall never be less than 90% of total building Useable SF until the entire building is built out or planned space according
to plans and specifications.
   

	 LESSOR:
 
 2221 Bijou Limited Liability Co.
 	  
 	 LESSEE:
 
 American Teleconferencing Services, Ltd.
 
	 By: 
 	 
 /s/ LARS E. AKERBERG
 	  
 	 By: 
 	 
 /s/ S. L. MOCK
 
	  
 	 
 	  
 	  
 	 
 
	  
 	 Lars E. Akerberg
 	  
 	  
 	  S. L. Mock, CFO 
 
	 
 Its: 
 	 
 Managing Partner
 	  
 	 
 Its: 
 	  
 

 
  
 
 

  ADDENDUM D TO STANDARD OFFICE LEASE -
 ACCEPTANCE OF PLANS AND SPECIFICATIONS
AND
SQUARE FOOTAGE AGREEMENT
 THIS ADDENDUM
D is entered this 28th day of July, 1996, by and between 2221 Bijou Limited Liability Company (“Lessor”) and American Teleconferencing Service, Ltd. (“Lessee”).
 WITNESSETH, THE FOLLOWING RECITALS:
 WHEREAS, on May 23, 1996 the parties
entered into that certain Standard Office Lease concerning a portion of “The Chidlaw Building” located at 2221 Bijou Street, Colorado Springs, Colorado, and
 WHEREAS, Article 1.03 thereof specifies that the Lease “shall commence 120 days after Lessee’s acceptance of the plans and specifications as
set forth in Article 6.01...”, and
 WHEREAS, Article 6.01 allows either party to “declare this Lease null and void if the
plans and specifications are not mutually approved ... on or before forty-five (45) days after execution of this Lease”, and
 WHEREAS, Article 11.06 obligates the parties to agree on Lessee’s actual percentage for computation of its share of operating expenses concurrently with the agreement on the plans and specifications, and
 WHEREAS, the parties desire to reach the agreements required in the foregoing recitals and to waive any related contingencies or rights to void the Lease.
 NOW, THEREFORE, in consideration of the foregoing recitals, and the mutual covenants hereafter, the parties agree as follows:
 
 

  1.         Acceptance of Plans and
Specifications. The parties hereby agree that the plans and specifications attached hereto as Exhibit A and executed by the parties are acceptable in all respects and shall govern the leasehold
improvement obligations of the parties unless hereafter modified in a subsequent written change order executed by both parties. The right of either party to declare this Lease null and void pursuant to Article 6.01 is hereafter waived by each
party.
 2.         Completion/Lease Commencement
Date. The “completion date” for Lessor’s leasehold improvements set forth in Article 6 and the Lease commencement date shall hereafter be deemed to be 43 days from and after the
date of the execution of this Addendum; such, date remaining subject to the conditions of Article 11.05 of the Lease Agreement.
 3.         Square Feet. Pursuant to Article 11.06, Lessee’s share of the operating expenses shall be determined
by multiplying the total operating expenses as defined in the Lease times the following fraction:
 the # of sq. feet actually occupied by Lessee from time to
time as “phased-in” as per Rent Schedule -Addendum A _______ square feet; the total rentable building area 50,000 square feet = 17% of 296,380.
 The
“total rentable building area” in square feet as above indicated was computed according to the Building Owners and Managers Association’s Standards (BOMA). Should Lessor hereafter determine that the actual “total rentable
building area” has decreased because of final build-out of tenant’s spaces, Lessor shall notify Lessee of the building’s new “total rentable building area” in square feet and as a result thereof, the new percentage for
Lessor’s share of the operating expenses; which new percentage shall be effective immediately upon the posting of said notice.
 4.         Ratification. It is not the intent of the parties hereto to modify the terms of the original Standard
Office Lease but to supplement and reach the agreements required therein. The parties hereby ratify and confirm all terms, conditions and covenants of the original Standard Office Lease, not supplemented hereby.
 

2

  IN WITNESS WHEREOF, the parties have signed this Addendum D on the date above set forth.
  

	  
 	 LESSOR:
 
 2221 Bijou Limited Liability Co.
 	  
 	 LESSEE:
 
 American Teleconferencing Services, Ltd.
 
	  
 	 By: 
 	 
 /s/ LARS E. AKERBERG
 	  
 	 By: 
 	 
 /s/ ROBERT A. COWEN
 
	  
 	  
 	 
 	  
 	  
 	 
 
	  
 	  
 	 Lars E. Akerberg
 
 
 	  
 	  
 	 Robert F. Cowen
 
 
 
	  
 	 Its:
 	 Managing Partner
 	  
 	 Its: 
 	 President
 

  
 

3

  ADDENDUM E TO LEASE AGREEMENT
 THIS
ADDENDUM is entered this 4th day of October, 1996, by and between 2221 Bijou Limited Liability Company (“Lessor”) and American Teleconferencing Service, Ltd. (“Lessee”).
 WITNESSETH, THE FOLLOWING RECITALS:
 WHEREAS, on May 23,
1996 the parties entered into that certain Standard Office Lease concerning a portion of “The Chidlaw Building” located at 2221 Bijou Street, Colorado Springs, Colorado, and
 WHEREAS, on July 18, 1996, the parties agreed on the plans and specifications for the build-out of the Tenant’s space, which agreement (identified as Addendum D to Standard Office Lease)
was a condition precedent to the validity of the Lease, and
 WHEREAS, said agreement on the plans and specifications resulted in the
parties’ agreement to modify additional terms.
 NOW, THEREFORE, in consideration of the foregoing recitals, and the mutual
covenants hereafter, the parties agree to the following amended terms:
 1.         Leased Premises. Article 1.2 of the original Lease estimated the amount of square feet to be rented to be 50,000 square feet. Pursuant
to the agreed upon plans and specifications, the actual area to be occupied by Lessee is agreed to be 50,470 square feet. The square feet upon which the “Base Rent” shall be paid shall be phased in as per the Amended Rent Schedule attached
as Amended Addendum A.
 2.         Base Rental
Rate. The initial Base Rental Rate as set forth in Addendum A to the original Lease Agreement shall increase from $6/sq. ft. to $6.80/sq. ft. Periodic increases thereafter shall remain at the $0.25 or $0.50 increments as
set forth in the Lease. An Amended Rent Schedule is attached as Amended Addendum A.
 
 

  3.         Lessor’s Build-Out
Obligations.
 (a)       Amended Amount of
Lessor’s Build-Out Obligation. In consideration of the rental rate increase and the adjusted square feet rented of 50,470 square feet, Lessor’s build-out expenses shall be increased from the original amount computed
pursuant to Addendum B of the original Lease Agreement to the sum of $956,580.00 computed as follows:
  

	 50,470 SF x $14/SF
 	 =
 	 $706,580
 	  
 
	 plus “additional amount”
 	 =
 	 $250,000*
 	  
 
	  
 	  
 	  
 	  
 
	 TOTAL
 	  
 	 $956,580
 	  
 

 
       *   The consideration for the “additional amount” in Lessor’s obligation is the increase in
the Base Rental Rate set forth in No. 2 of this Addendum E.
 (b)       Excess
Improvement Expenses/Lessee’s Payment Obligations. Lessee shall pay the excess build out expenses over and above the sum of $956,580 except those expenses specifically allocated to Lessor in the original Lease Agreement.
Pursuant to Addendum B of the original Lease, Lessee’s obligation is to pay one-half (1/2) of its share upon the completion of the plans and specifications drawings and one-half (1/2) on substantial completion. By the execution hereof, Lessor agrees to modify the initial payment obligation to the sum of $100,000.00 with the
balance due upon substantial completion and computation of final costs.
 4.         Amended Lease Commencement-Occupancy-Completion Dates. The “completion date” and the “Lease
Commencement Date” originally set forth in Article 6 of the Lease Agreement were amended by the parties in Addendum D and are hereby further amended so that Lessor’s obligation is to complete the construction of Phase I to allow occupancy
thereof on or before September 1, 1996 and to further cause the completion of construction of Phase II by September 30, 1996. Phase I includes the Telephony, LAN, computer rooms, bathrooms, and OPS/RES open room, with mid-east entrance. Phase II
shall include the general offices, executive rooms, reception and the remainder of the premises. The construction phases were determined in acccordance with the requirements of J. Roth Hyland, consulting program manager and ATS representative for
site relocation, in his June 27, 1996 correspondence to Lessor’s architect, David Weesner.
 

2

  The definition of “completion date” as set forth in Article 11.05 of the original Lease shall remain in effect including the
reasonable time to complete after notice provided to Landlord not to exceed sixty (60) days unless the delays are caused by Lessee.
 5.         Ratification. The parties hereby ratify and confirm all remaining terms, conditions and covenants of the original Standard Office
Lease, not supplemented hereby.
 IN WITNESS WHEREOF, the parties have signed this Addendum to Lease Agreement on the date above set
forth.
  

	 LESSOR:
 
 2221 Bijou Limited Liability Co.
 	  
 	 LESSEE:
 
 American Teleconferencing Services, Ltd.
 
	 By: 
 	 
 /s/ LARS E. AKERBERG
 	  
 	 By: 
 	 
 /s/ S. L. MOCK CFO
 
	  
 	 
 	  
 	  
 	 
 
	  
 	 Lars E. Akerberg
 	  
 	  
 	  
 
	 
 Its:
 	 
 Managing Partner
 	  
 	 
 Its:
 	  
 
	  
 	  
 	  
 	  
 	 
 

 

3

  FIRST AMENDMENT TO
STANDARD OFFICE LEASE
 THIS FIRST AMENDMENT, is made and
entered into this __________ day of May, 1998 by and between 2221 BIJOU LLC, (“Lessor”), and AMERICAN TELECONFERENCING SERVICES, LTD., (“Lessee”).
 WITNESSETH, THE FOLLOWING RECITALS:
 WHEREAS, on May 23, 1996, the parties entered into a Standard Office Lease, hereafter “SOL” (which included Addendums dated July 18, 1996 and October 4, 1996) wherein Lessor agreed
to lease to Lessee 54,470 SF in the Chidlaw Building located at 2221 East Bijou Street, Colorado Springs, Colorado 80909; the terms of which Standard Office Lease and Addendums are incorporated herein by reference, and
 WHEREAS, Lessee desires to Lease expansion space of 4,190 useable SF (4,400 rentable SF) in the Chidlaw Building, and
 WHEREAS, the parties have agreed on the terms necessary to amend the original Standard Office Lease and Addendums to include the
expansion space.
 NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises,
covenants and undertaking hereafter, the parties agree to this First Amendment to Standard Office Lease and the following terms:
 1.         LEASED PREMISES: In consideration of the covenants herein, the leased premises in the
Standard Office Lease, hereafter “SOL” is expanded to include the 4,190 useable SF located on the upper level of the Chidlaw Building as identified on Exhibit A attached hereto and incorporated herein, hereafter “expansion
space.”
 2.         TERM:
The lease term for the expansion space shall commence May 1, 1998 and terminate on August 31, 2006 so as to be co-terminus with the remaining term under the SOL.
 
 

  3.         RENT: The NNN base rent for the expansion space shall initially be $8.75/SF/yr. payable in monthly installments due concurrently with the NNN base rent under the SOL. The NNN base rent shall be based on 4,400 rentable SF. Annually, commencing
May 1, 1999, the NNN base rent shall increase in $.25/yr. increments. Attached as Exhibit B is the Base NNN Rent Schedule for the expansion space lease
term.
 4.         OPERATING EXPENSES: In addition to the NNN base rent, Lessee shall pay, its pro-rata share of the building and premises operating expenses as they are defined in the SOL. Payment shall be made in the same manner as set forth therein. Tenant space utilities for
gas and water shall be included in the operating expenses but tenant space electrical consumption shall be separately metered and paid by tenant in
addition to its share of operating expenses. For calendar year 1998. Lessee shall pay the estimated monthly sum of $432.67 for operating expenses; which monthly sum is based on the estimated annual operating expenses of $1.18/SF x 4,400
SF.
 5.         EXPANSION SPACE LEASE
IMPROVEMENTS: Lessor will pay to Lessee a landlord’s tenant improvement allowance of $17 per rentable square foot, or the
sum of $74,800. The Landlord’s tenant improvement allowance shall be due and payable within thirty (30) days after substantial completion of the space build-out by tenant and certification of completion by the City of Colorado Springs. Lessee shall be responsible for construction of all tenant space and lease improvements to the expansion space. The provisions of Article 6.02 in Addendum B of the Standard Office Lease concerning
Lessor’s consent to the plans and specifications for any improvements shall be applicable. The parties agree that Lessee intends to build out the tenant space and to construct improvements in a manner consistent with the existing leased space
and landlord’s consent will not be unreasonably withheld under this understanding. Lessor may demand, as a condition of consent, that Lessee provide reasonable documentation and agrees to
reasonable
 

2

  means of protecting Lessor and its lender against mechanic’s liens arising from any improvements; which protection documentation shall be provided prior
to or contemporaneously with payment of the tenant improvement allowance.
 The parties agree that the leased premises are currently in a condition acceptable
to Lessee without further Lessor expense.
 6.         PARKING
SPACES: In consideration of the lease of the expansion space, Lessor shall, during the term, provide Lessee with an additional 24 parking spaces in proximity to tenant’s entrance for the expansion space.

7.         RATIFICATION AND CONFIRMATION:
Except as herein provided, the parties hereby ratify and confirm that the remaining terms, of the Standard Office Lease dated May 23, 1996 and the Addendums dated July 18, 1996 and October 4, 1996 remain in full force and effect and, except as
modified herein, shall govern the expansion space.
 IN WITNESS WHEREOF, the parties have executed, this First Amendment to Standard
Office Lease the dates below set forth.
  

	  
 	 LESSOR:
 
 2221 BIJOU LIMITED LIABILITY CO. 
 
 
 	  
 	 LESSEE:
 
 AMERICAN TELECONFERENCING
 SERVICES, LTD.
 
	  
 	 By: 
 	 
 /s/ LARS E. AKERBERG
 	  
 	 By: 
 	 
 
 
 
	  
 	  
 	 
 	  
 	  
 	 
 
	  
 	  
 	 Lars E. Akerberg
 	  
 	  
 	  
 
	  
 	 
 Its: 
 	 
 Managing Partner
 	  
 	 
 Its: 
 	 
 
 
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	 Dated: 
 	  
 	  
 	 Dated: 
 	  
 
	  
 	  
 	 
 	  
 	  
 	 
 

 
  
 

3

  SECOND AMENDMENT TO
STANDARD OFFICE LEASE
 THIS SECOND AMENDMENT, is made and entered into this ___ day of May, 1998 by and between 2221 BIJOU LLC, (“Lessor”), and AMERICAN
TELECONFERENCING SERVICES, LTD., (“Lessee”).
 WITNESSETH, THE FOLLOWING RECITALS
 WHEREAS, on May 23, 1996, the parties entered into a Standard Office Lease (which Standard Office Lease included Addendums dated July 18, 1996
and October 4, 1998) wherein Lessor agreed to lease to Lessee 54,470 SF in the Chidlaw Building located at 2221 East Bijou Street, Colorado Springs, Colorado 80909, commencing September 1, 1996; the terms of which Standard Office Lease and Addendums
are incorporated herein by reference;
 WHEREAS, on the same date hereof, the parties entered into a First Amendment to Standard
Office Lease wherein Lessor agreed to lease to Lessee 4,400 additional rentable SF in the upper level of said building, the terms of which are incorporated herein by reference;
 WHEREAS, Lessee desires to Lease expansion space of 48,405 useable SF (50,825 rentable SF) in the lower level of the Chidlaw Building; and
 WHEREAS, building tenant Memorial Hospital has an existing Right of First Refusal to lease all remaining lower level space in the Chidlaw Building.
 NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises, covenants and undertakings hereafter, the parties agree as
follows:
 1.        EXPANSION OF LEASED PREMISES. As and for an expansion of the leased premises subject to the Standard office Lease and First Amendment thereto, Lessor hereby leases, lets and demises to Lessee 50,825 rentable SF (48,405 usable SF x 1.05 R/U
factor) as identified on the Lower Level Floor Plan of David Weesner Associates, dated March 19, 1998 and attached hereto as Exhibit A.
 
 

  2.        TERM OF EXPANSION LEASED
PREMISES. The term for the expansion leased premises shall be thirty-six (36) months commencing immediately upon the termination of the Right of First Refusal to lease in favor of Memorial
Hospital (as hereafter required and set forth in Article 8) and ending thirty-six (36) months thereafter.
 Notwithstanding the foregoing, Lessor shall have the
right to terminate the term of the Lease as to part or all of the Leased Premises by the giving of ninety (90) days written notice to Lessee. Provided, however, Lessor may not give notice which becomes effective prior to the end of the eighteenth
(18th) month of the Lease Term.
 Lessee, at any time during the thirty-six (36) month Lease term, may, by written notice to Lessor, elect to extend the Lease
Term to a term ending on August 31, 2006 for any designated portion of the Leased Premises in excess of 10,000 rentable SF. Lessor shall have the right, by written notice within ten (10) days of receipt of Lessee’s notice, to reject any area of
the Leased Premises designated by Lessee if the designated area is deemed by Lessor, in its sole discretion, to be harmful to future leasing. In said notice, Lessor shall designate reasonable acceptable alternative space. Lessee shall have five (5)
days thereafter to accept or reject Lessor’s alternative space proposal by written notice to Lessor.
 Lessee’s election may not be exercised on any
portion of the Leased Premises after the receipt of Lessor’s termination notice thereon given in accordance with the foregoing paragraph.
 The NNN rental
amount during any extended term elected by Lessee shall be in accordance with the Base Rent schedule set forth hereafter in Article 3.
 3.        RENT SCHEDULE FOR EXPA1SION SPACE. As and for Rent during the term for the expansion space, or for any extended
term elected pursuant to Article 2, Lessee shall pay Base Rent and
 

2

  Operating Expenses in the manner set forth in Article 2 and ADDENDUM A of the Standard Office Lease according to the following Rent Schedule,
to-wit:
 Base Rent Schedule
   

	 Months
 	  
 	 Base
 III Rent
 	  
 	 SQ. PT. Leased
 (rentable)
 	  
 	 Annual
 III Rent
 	  
 	 Monthly
 III Rent
 	  
 
	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 1-36
 	  
 	 $1.50/SP
 	  
 	 50,825.00              
 	  
 	 $  76,237.50
 	  
 	 $    6,353.13
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 19-36 (on extended
         term space)
 	  
 	 $4.55/SP
 	  
 	 50,825.00              
 	  
 	 $231,253.75
 	  
 	 $  19,271.15
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 37-48      “       ”
 	  
 	 $4.80/SP
 	  
 	 50,825.00 (or less)
 	  
 	 $243,960.00
 	  
 	 $  20,330.00
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 49-60      “       ”
 	  
 	 $5.05/SP
 	  
 	 50,825,00(or less)
 	  
 	 $256,666.25
 	  
 	 $  21,388.85
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 61-72      “       ”
 	  
 	 $5.30/SP
 	  
 	 50,825.00 (or less)
 	  
 	 $267,372.50
 	  
 	 $22,4477.71
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 73-84      “       ”
 	  
 	 $5.55/SP
 	  
 	 50,825.00 (or less)
 	  
 	 $232,078.75
 	  
 	 $    23,50.56
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 85-96      “       ”
 	  
 	 $5.33/SP
 	  
 	 50,825.00 (or less)
 	  
 	 $294,785.00
 	  
 	 $  24,565.42
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 96-8/31/2006
 	  
 	 $6.05/SP
 	  
 	 50,825.00 (or less)
 	  
 	 $307,491.25
 	  
 	 $  25,624.27
 	  
 

 
 Triple Net Intent. It is the purpose and intent of Lessor and Lessee that the base rent provided in the above schedule shall be absolutely net to Lessor, and that Lessee shall pay, AS
ADDITIONAL RENT, without notice or demand, and without abatement, deduction or setoff and save Lessor harmless from and against, all prorated operating expenses in the manner and as defined in Article 2.02 and 2.03 of the Standard Office Lease. If
Lessee is required to make any payment or incur any expense as provided in this Lease and fails to do so, then Lessor, at its option, may make the payment or incur the expense on Lessee’s behalf, and the cost thereof shall be charged to Lessee
as additional rent and shall be due and payable by Lessee in accordance with Article 2.02 of the Standard Office Lease.
 

3

  Based on the expansion Leased Premises area of 50,825 SF,
Lessee’s pro-rated share of operating expenses shall be 18.05%, computed as follows: 50,825 rentable SF divided by 281,561 rentable SF.
 Lessor’s estimate of the operating expenses it will incur for the building and leased premises is $1.18 per square foot during the 1998 calendar year inclusive of tenant space utilities for gas and water but excluding tenant space
electrical (which shall be separately metered and paid by tenant) and exclusive of tenant janitorial. Lessee agrees to pay as additional rent monthly, along with payments of Base Rent, the sum of $4,997.79 as its pro-rata share of operating expenses
during calendar year 1998 of this Lease as provided in Paragraph 2.02 of the Standard Office Lease.
 4.         IMPROVEMENTS TO EXPANSION LEASED PREMISES. In lieu of the provisions of Article
6.01 and 6.02 and ADDENDUM B of the Standard Office Lease, Lessor shall have no obligation to build out the expansion leased premises or to pay any tenant improvement allowance to Lessee. Lessee shall be solely responsible to build out the expansion
leased premises. Prior to the commencement of any improvements, Lessee shall obtain the written consent of Lessor to the plans and specifications in the manner as provided in Article 6.02
of the Standard Office Lease. Lessor’s consent shall not be unreasonably withheld provided that Lessor may demand reasonable protection against mechanic’s liens and provided further that the
Lessee’s planned improvements comply with applicable building codes and are in conformity and consistent with the general construction of the remainder of the leased premises including
Lessee’s space leased in the original Standard Office Lease and First Amendment thereto.
 Notwithstanding the foregoing, Lessor shall (1) deliver the
Premises to Lessee in broom clear condition, (2) make available comparable electrical and HVAC capacity to the boundary of the expansion space as provided to Lessee’s existing space, (3) cause the
encapsulation or removal of the asbestos floor tiles in the expansion space, at its sole expense, within forty-five (45) days after demand by written notice from Lessee, and (4) reimburse

4

  Lessee for one-half of the reasonable and necessary costs of the space demising walls (exclusive of interior and exterior dry wall finish) within fifteen
(15) days of the completion thereof.
 5.         PARKING. In addition to the parking privileges granted in the Standard Office Lease and the
First Amendment thereto, Lessor shall make available to Lessee, at all times during the term for the expansion space, two (2) additional parking spaces per 1,000 rentable SF.
 6.         BROKERS. Lessee represents and warrants to Lessor that
it has not been represented by any broker who is entitled to receive or claim a commission based on the lease of the expansion space and shall hold Lessor
harmless and indemnify Lessor from any claims to a commission. Lessor represents and warrants to Lessee that it has been represented Brokers Michael Palmer and James Spittler, Highland Commercial Group,
L.L.C., (hereinafter “Highland”) and by no other broker. Lessor shall be solely responsible for payment of any leasing commission to its Brokers as aforesaid.
 7.         ADOPTION OF REMAINING LEASE TERMS BY REFERENCE. Except
as herein provided, the parties agree that the expansion space shall be subject to the terms, conditions and covenants of the Standard Office Lease and First Amendment thereto, which terms are adopted by reference as if fully set forth
herein.
 8.         CONTINGENCY. The parties understand and agree that the obligations of the parties herein are subject to and expressly contingent upon the waiver or release of the Right of First Refusal to lease
the expansion space in favor of building tenant Memorial Hospital. Lessor shall be obligated to provide formal notice of the Right of First Refusal to Lease to said tenant within three (3) days after the execution hereof in
the manner as set forth in the Memorial Lease, the provisions of which Lessee acknowledges receipt. Should Memorial Hospital waive or release its Right of First Refusal, this Lease shall become binding
and immediately effective upon Lessor’s posting of written notice thereof to Lessee. Should Memorial exercise its Right of First Refusal, this Second Amendment to Standard Office Lease shall be deemed null and
 

5

  void upon written notice to Lessee within two (2) business days following exercise of the right by Memorial Hospital.
 IN WITNESS WHEREOF, the parties have executed this Second Amendment to Standard Office Lease the dates below set forth.
  

	  
 	 LESSOR:
 
 2221 Bijou Limited Liability Co.
Corporation
 
 
 	  
 	 LESSEE:
 
 AMERICAN TELECONFERENCING
 SERVICES, LTD.
 
	  
 	 By: 
 	 
 /s/ LARS E. AKERBERG
 	  
 	 By: 
 	 
 
 
 
	  
 	  
 	 
 	  
 	  
 	 
 
	  
 	  
 	 Lars E. Akerberg
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	 Its: 
 	 Managing Partner
 	  
 	 Its: 
 	  
 
	  
 	  
 	  
 	  
 	  
 	 
 
	  
 	 Dated: 
 	  
 	  
 	 Dated: 
 	  
 
	  
 	  
 	 
 	  
 	  
 	 
 

 
  
 

6

  THIRD AMENDMENT TO
STANDARD OFFICE LEASE
 THIS THIRD AMENDMENT, is made and entered into this _____ day of September, 1999 by and between 2221 BIJOU LLC,
a Colorado Limited Liability Company (“Lessor”), and American Teleconferencing Services, Ltd., (“Lessee”).
 WITNESSETH, THE FOLLOWING RECITALS:
 WHEREAS, on May
23, 1996, the parties entered into a Standard Office Lease (which Standard Office Lease included Addendums dated July 18, 1996 and October 4, 1996) wherein Lessor agreed to lease to Lessee 54,470 SF in the Chidlaw Building located at 2221 East Bijou
Street, Colorado Springs, Colorado 80909, commencing September 1, 1996; the terms of which Standard Office Lease and Addendums are incorporated herein by reference;
 WHEREAS, on May 5, 1998, the parties entered into a First Amendment to Standard Office Lease wherein Lessor agreed to lease to Lessee an additional 4,400 rentable SF in the upper level of said
building; the terms of which are incorporated herein by reference;
 WHEREAS, on May 5, 1998, the parties entered into a Second
Amendment to Standard Office Lease wherein Lessor agreed to lease to Lessee 50,825 rentable SF in the lower level of said building; the terms of which are incorporated herein by reference; and
 WHEREAS, the parties desire to extend the lease term on a portion of the lower level space leased under the Second Amendment to Standard Lease (hereafter “Improved
Space”) and to further modify the lease terms concerning the remaining lower level space (hereafter “Unimproved Space”).
 NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises, covenants and undertakings hereafter, the parties agree, effective as of November 15, 1999, as follows:

1.         LEASED PREMISES.
From and after November 15, 1999, the leased premises, originally described in the Second Amendment to Standard Office Lease as:
 48,405 useable SF x 1.05 R/U factor = 50,825 rentable SF shall be designated as:
 

  “UNIMPROVED SPACE” - consisting of 29,475 useable SF x 1.05 RU factor = 30,949 rentable SF (depicted
as ATS RESERVE 14,980 SF and ATS RESERVE 14,495 SF on Exhibit A - The Lower Level Floor Plan attached hereto and incorporated herein.
 AND
 “IMPROVED SPACE” - consisting of 18,930 useable SF x 1.05 R/U factor = 19,876
rentable SF (depicted as PHASE ONE OCCUPIED 7,830 SF and PHASE TWO UNDER CONSTRUCTION 11,100 SF on Exhibit A - The Lower Level Floor Plan attached hereto
and incorporated herein.
 2.         TERM. Article 2 - TERM OF EXPANSION LEASED PREMISES, as contained in the Second Amendment to Standard Office Lease, is hereby modified by
its deletion in its entirety and by substitution of the following:
 a.        Lease Term for Unimproved Space. The original lease term of 36 months for the unimproved 30,949 rentable SF shall
remain the same and the parties hereby confirm and ratify that its termination date is May 14, 2001.
 Lessor shall no longer have the right to notify Lessee of
the termination of the lease term prior to May 14, 2001. In consideration for Lessor’s waiver of this right of early termination, Lessee agrees that should it desire to improve all or any portion of the space during the lease term, then
commencing 90 days after Lessor approves the plans and specifications for the improvements pursuant to Article 4 of the Second Amendment to Standard Office Lease, the lease term on the area approved for improvement shall be extended to August 31,
2006 so as to be coterminous with the lease term for the remainder of Lessee’s space in the building.
 However, Lessee, at any time during the remaining
lease term, may by written notice to Lessor, elect to extend the lease term to a term ending on August 31, 2006 for any designated portion of the unimproved space. Upon receipt of any said notice, Lessor shall have the right, by written notice
within ten days of receipt of Lessee’s notice, to reject any area of the leased premises designated by Lessee if the designated area is deemed by Lessor, in its sole discretion, to be harmful to future leasing. In said notice, Lessor shall
designate reasonably acceptable alternative space of the same area. Lessee shall have five days thereafter to accept or reject Lessor’s alternative space proposal by written notice to Lessor.
 b.        Lease Term for Improved Space.
The original lease term for the 19,876 improved rentable SF is hereby extended to August 31, 2006.
 

2

  3.         RENT
SCHEDULE. Article 3 - RENT SCHEDULE FOR EXPANSION SPACE, as contained in the Second Amendment to Standard Office Lease, is
hereby modified by its deletion in its entirety and by substitution of the following:
 As and for the base NNN rent during the lease terms for the Unimproved
Space and for the Improved Space, Lessee shall pay base rent (and the operating expenses) in the manner set forth in Article 2 and Addendum A of the original Standard Office Lease according to the following rent schedules, to-wit:
 IMPROVED SPACE
Base Rent Schedule
   

	 Term
 	  
 	 Base
 NNN Rent
 	  
 	 SQ. FT. Leased
 (rentable)
 	  
 	 Annual
 NNN Rent
 	  
 	 Monthly
 NNN Rent
 	  
 
	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 
	 11/15/99 - 5/14/2001
 	  
 	 $
 	 4.55
 	  
 	 19,876
 	  
 	 $
 	 135,653.76
 	 (18 mos.)
 	 $
 	 7,536.32
 	  
 
	 05/15/01 - 05/14/02
 	  
 	 $
 	 4.80
 	  
 	 19,876
 	  
 	 $
 	 95,404.80
 	  
 	 $
 	 7,950.40
 	  
 
	 05/15/02 - 05/14/03
 	  
 	 $
 	 5.05
 	  
 	 19,876
 	  
 	 $
 	 100,373.80
 	  
 	 $
 	 8,364.48
 	  
 
	 05/15/03 - 05/14/04
 	  
 	 $
 	 5.30
 	  
 	 19,876
 	  
 	 $
 	 105,342.80
 	  
 	 $
 	 8,778.57
 	  
 
	 05/15/04 - 05/14/05
 	  
 	 $
 	 5.55
 	  
 	 19,876
 	  
 	 $
 	 110,311.80
 	  
 	 $
 	 9,192.65
 	  
 
	 05/15/05 - 05/14/06
 	  
 	 $
 	 5.80
 	  
 	 19,876
 	  
 	 $
 	 115,280.80
 	  
 	 $
 	 9,606.73
 	  
 
	 05/15/06 - 08/31/06
 	  
 	 $
 	 6.05
 	  
 	 19,876
 	  
 	 $
 	 35,072.87
 	 (3 1⁄2 mos.)
 	 $
 	 10,020.82
 	  
 

 
 UNIMPROVED
SPACE
Base Rent Schedule
   

	 Term
 	  
 	 Base
 NNN Rent
 	  
 	 SQ. FT. Leased
 (rentable)
 	  
 	 Annual
 NNN Rent
 	  
 	 Monthly
 NNN Rent
 	  
 
	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 11/15/99 - 5/14/2001
 	  
 	 $
 	 1.50
 	  
 	 30,949
 	  
 	 $
 	 69,635.34
 	 (18 mos.)
 	 $
 	 3,868.63
 	  
 

  

	 FOR ANY OF UNIMPROVED SPACE ON WHICH THE LEASE TERM IS EXTENDED TO
8/31/2006   
 	  
 

  

	 11/15/99 - 05/14/01
 	  
 	 $
 	 4.55
 	  
 	 SF Elected
 	  
 	 As Calculated
 	  
 	 As Calculated
 	  
 
	 05/15/01 - 05/14/02
 	  
 	 $
 	 4.80
 	  
 	 SF Elected
 	  
 	 As Calculated
 	  
 	 As Calculated
 	  
 
	 05/15/02 - 05/14/03
 	  
 	 $
 	 5.05
 	  
 	 SF Elected
 	  
 	 As Calculated
 	  
 	 As Calculated
 	  
 
	 05/15/03 - 05/14/04
 	  
 	 $
 	 5.30
 	  
 	 SF Elected
 	  
 	 As Calculated
 	  
 	 As Calculated
 	  
 
	 15/15/04 - 05/14/05
 	  
 	 $
 	 5.55
 	  
 	 SF Elected
 	  
 	 As Calculated
 	  
 	 As Calculated
 	  
 
	 05/15/05 - 05/14/06
 	  
 	 $
 	 5.80
 	  
 	 SF Elected
 	  
 	 As Calculated
 	  
 	 As Calculated
 	  
 
	 05/15/06 - 08/31/06
 	  
 	 $
 	 6.05
 	  
 	 SF Elected
 	  
 	 As Calculated
 	  
 	 As Calculated
 	  
 

 
 

3

  Triple Net Intent. It is the purpose and intent of Lessor and Lessee that the base rent provided
in the above schedule shall be absolutely net to Lessor, and that Lessee shall pay, AS ADDITIONAL RENT, without notice or demand, and without abatement, deduction or setoff and save Lessor harmless from and against, all prorated operating expenses
in the manner and as defined in Article 2.02 and 2.03 of the Standard Office Lease. If Lessee is required to make any payment or incur any expense as provided in this Lease and fails to do so, then Lessor, at its option, may make the payment or
incur the expense on Lessee’s behalf, and the cost thereof shall be charged to Lessee as additional rent and shall be due and payable by Lessee in accordance with Article 2.02 of the Standard Office Lease.
 4.         ADOPTION OF REMAINING TERMS BY REFERENCE. Except as otherwise herein provided, the parties agree that the leased premises described herein shall be subject to the terms, conditions and covenants of the Standard Office Lease, Addendums thereto and the First
and Second Amendments thereto; which terms are adopted by reference as if fully set forth herein.
 IN WITNESS WHEREOF, the parties
have executed this Second Amendment to Standard Office :Lease the dates below set forth.
   

	  
 	 LESSOR:
 	  
 	 LESSEE:
 
	  
 	  
 	  
 	  
 
	  
 	 2221 Bijou Limited Liability Co.
 a Colorado Limited Liability Company
 	  
 	 American Teleconferencing Services, Ltd.
 
	  
 	  
 	  
 	  
 
	  
 	 By: 
 	 FLENINGE PARTNERSHIP, a
 Minnesota General Partnership,
 its Chief Manager
 	  
 	 By: 
 	 /s/ PATRICK G. JONES
 
	  
 	  
 	  
 	 
 
	  
 	  
 	 Its:
 	 Sr. VP
 

   

	  
 	  
 	  
 	  
 
	  
 	 By: 
 	 
 /s/ LARS E. AKERBERG
 	  
 	  
 	  
 
	  
 	  
 	 
 	  
 	  
 	  
 
	  
 	  
 	 Lars E. Akerberg 
 	  
 	  
 	  
 
	  
 	 Its:
 	 Partner 
 	  
 	  
 	  
 
	  
 	 Dated: 
 	 
 9/2/99
 	  
 	 Dated: 
 	  
 
	  
 	  
 	  
 	  
 	  
 	 
 
								

 

4

  RELEASE AND WAIVER OF LIEN
AND INDEMNITY AGREEMENT
 THE STATE OF COLORADO)
                                       
               ) ss.    KNOW ALL PERSONS BY THESE PRESENTS:
COUNTY OF EL PASO           )
 IN CONSIDERATION
of the payment made to the undersigned (“Tenant”) by 2221 Bijou LLC (“Owner”), such payment being all amounts owed to Tenant under the Lease between Owner and
Tenant dated May 5, 1998, through the “Effective Date” (defined in the second paragraph below), in connection with the furnishing of labor, materials and/or services for construction or
repairs (herein called the “Services”) through the Effective Date at the property having the physical address of 2221 East Bijou Street, Colorado Springs, Colorado 80909 (together with all
improvements thereon called the “Property”), the receipt and adequacy of such full payment in the amount of $74,800.00 paid by check # _______ being hereby acknowledged, Tenant hereby (a)
releases and discharges Owner from all amounts owed through the Effective Date in connection with the Services, and (b) releases and discharges Owner and the Property from any liens, claims of liens, and any other charges which Tenant may now or
hereafter have against Owner or the Property for Services through the Effective Date, whether or not evidenced by lien affidavits, and whether or not filed for record.
 It is
Tenant’s intent that Owner and the Property be free from all liens and lien claims that Tenant or any party acting by, through, or under the Tenant may now or hereafter have against the Owner or the Property for Services through the Effective
Date. This Release and Waiver of Lien and Indemnity Agreement is effective for all Services up to and including the 31st day of December, 1998 (the “Effective Date”).
 Tenant represents that the Services work through the Effective Date have actually been done, and all
subcontractors, laborers and materialmen employed by Tenant or otherwise acting through or under Tenant, and all related costs for materials placed or installed on the Property and rent payments for equipment used, if any, for the Services have been
fully paid through the Effective Date.
 Tenant will indemnify and hold harmless Owner and any lender holding a mortgage on the Property from and against all liability and costs
arising from any claim or lien that may at any time be asserted against Owner, any such lender or the Property by Tenant or any other party by virtue of the Services performed through the effective
Date.
 EXECUTED this 12th day of February 1999.
   

	  
 	  
 	 TENANT:
 	 American Teleconferencing Services,
 Ltd., a Missouri Corporation
 
	 
 
 
 	  
 	 By: 
 	 
 /s/ FERYL L. HYLAND
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 Feryl L. Hyland
 
	  
 	  
 	 Its:
 	 Facilities/Administration Manager
 
					

  
 
 

  ACKNOWLEDGMENT
 THE STATE OF COLORADO)
                                       
               ) ss.
COUNTY OF EL PASO           )
 BEFORE ME, the undersigned, a Notary Public, on this day personally appeared Feryl L. Hyland, of American Teleconferencing Services. Ltd., a Missouri
Corporation, known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that she executed the same for the purposes and
consideration therein expressed, and in the capacity therein stated, and as the act and deed of said company.
   

	  
 	  
 	  
 	  
 
	 
 
 
 	  
 	  
 	 
 /s/ MARIA J. LECERE
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 Notary Public
 

 SWORN AFFIDAVIT OF TENANT PRINCIPAL
 THE STATE OF COLORADO)
                                       
              ) ss.
COUNTY OF EL PASO           )
 The undersigned, after having been by me, a notary
public in and for said County and State, first duly sworn, on oath deposes and states:
 “All of the statements and facts set out above in this
Release and Waiver of Lien and Indemnity Agreement are true and correct, and I hereby restate the lien releases of Contractor contained herein. I have no notice of any claim, lien, or right to lien in
favor of any laborer, serviceman or materialmen, and all money advanced by Owner has gone solely for the payment of labor, materials and/or services utilized on such job by my company.”
   

	  
 	  
 	  
 	 AMERICAN TELECONFERENCING SERVICES,
 LTD., a Missouri Corporation
 
	  
 	  
 	  
 	 By: 
 	 
 /s/ FERYL L. HYLAND
 
	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Feryl L. Hyland
 
	  
 	  
 	  
 	 Title: 
 	 Facilities/ Administration Manager
 

 SUBSCRIBED AND SWORN TO BEFORE THE UNDERSIGNED, a notary public in and for the county and state first above named, on this 12th day of February 1999.
  

	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	 
 /s/ MARIA J. LECERE
 
	  
 	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	  
 	 Notary PublicSecond Amended and Restated Executive Employment Agreement

  EXHIBIT 10.54 
 PTEK HOLDINGS,
INC.
SECOND AMENDED AND RESTATED
EXECUTIVE EMPLOYMENT AGREEMENT
 THIS SECOND AMENDED AND
RESTATED EXECUTIVE EMPLOYMENT AGREEMENT is made and entered into by and among PTEK HOLDINGS, INC., a Georgia corporation, f/k/a Premiere Technologies, Inc. (the
“Company”), PREMIERE COMMUNICATIONS, INC., a Florida corporation (“PCI”), and BOLAND T. JONES (the “Executive”), effective as of January 1, 2002.
 BACKGROUND STATEMENT
 The Company and the Executive entered into that certain Amended and Restated Executive Employment and Incentive Option Agreement dated as of November 6, 1995, which was amended by that certain First Amendment to Amended
and Restated Executive Employment and Incentive Option Agreement dated as of January 27, 1998, and by that certain Second Amendment to Amended and Restated Executive Employment and Incentive Option Agreement dated as of March 23, 2000 (collectively
referred to as the “Original PTEK Agreement”). In addition, PCI and the Executive entered into that certain Amended and Restated Executive Employment Agreement dated as of November 6, 1995, which was amended by that certain First Amendment
to Amended and Restated Executive Employment Agreement dated as of January 27, 1998, and that certain Second Amendment to Amended and Restated Executive Employment Agreement dated as of March 23, 2000 (collectively referred to as the “Original
PCI Agreement”). The Company, PCI and the Executive desire to terminate the Original PCI Agreement and to amend and restate the Original PTEK Agreement as set forth herein.
 THEREFORE, in consideration of and reliance upon the foregoing Background Statement and the representations and warranties contained in this Agreement, and other good and valuable
consideration, the Company and the Executive amend and restate the Original PTEK Agreement as follows: 
 TERMS
 Section 1. Duties.
 The Company will continue to employ the Executive as its Chief Executive Officer. The Executive will
have the powers, duties and responsibilities set forth in the Company’s Bylaws and as from time to time assigned to him by the Company’s board of directors (the “Board”) consistent with such position, and the Executive will
report solely to the Board. During the term of his employment under this Agreement, the Executive will devote substantially all of his business time to faithfully and industriously perform his duties and promote the business and best interests of
the Company; provided, however, that the Executive is not prohibited from serving on the board of directors of other companies and may participate in personal, civic and charitable activities. 
 Section 2. Compensation.
 Section 2.1. Base Salary. Commencing January 1, 2002, the Company
will pay the Executive a base salary at the annual rate of $826,875, payable in accordance with the Company’s standard payroll practices. At the beginning of each calendar year after 2002 during the term of this Agreement, the 

 

  Executive will be entitled to an increase in his base salary equal to five percent (5%) of the previous year’s base salary. The Executive will also be
entitled to any additional compensation provided for by resolution of the Board or its Compensation Committee. 
 Section 2.2. Bonus
Compensation.
 (i) In addition to his base salary, the Executive will be entitled to earn an annual bonus for each calendar year
during the term of this Agreement in an amount determined under Section 2.2(ii) based on the Company achieving its quarterly and annual targets for revenue (“Revenue”) and for earnings before interest, taxes, depreciation and amortization
(“EBITDA”). Revenue and EBITDA targets and actual Revenue and EBITDA shall be determined by the Company in the same manner as under the Company’s Bonus Plan for Corporate Associates. 
 (ii) The Executive’s target bonus for each calendar year will be equal to 100% of his base salary for such year, subject to the sliding scale adjusters described below,
with 80% of the target bonus allocated to achievement of cumulative quarterly targets (i.e., 20% per quarter) and 20% allocated to achievement of annual targets. The bonus will be based two-thirds
(2/3) on achievement of EBITDA targets and one-third (1/3) on achievement of Revenue targets. The amount of bonus earned each
quarter and calendar year shall be determined based on the following:
  

	 Percentage of Target
 	  
 	 Percentage of Bonus Earned
 	  
 
	 
 	  
 	 
 	  
 
	 90% - 94.99%
 	  
 	 70%
 	  
 
	 95% - 99.99%
 	  
 	 85%
 	  
 
	 100% - 104.99%
 	  
 	 100%
 	  
 
	 105% - 109.99%
 	  
 	 125%
 	  
 
	 110% or more
 	  
 	 150%
 	  
 

 
 (iii) For example, if the Executive’s base salary was $750,000 and EBITDA was 105% of target for the first quarter and Revenue was 98% of target, the Executive’s earned bonus for the
first quarter would be calculated as follows:
  

	  
 	  
 	 Target
 	  
 	  
 	 % Earned
 	  
 	  
 	 Bonus
 Earned
 	  
 
	  
 	  
 	 
 	  
 	  
 	 
 	  
 	  
 	 
 	  
 
	 Target bonus for Q1
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 (20% of $750,000)
 	 =
 	 $
 	 150,000
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 2/3 based on EBIDTA
 	 =
 	 $
 	 100,000
 	  
 	 x 
 	 125
 	 %
 	 =
 	 $
 	 125,000
 	  
 
	 1/3 based on Revenue
 	 =
 	 $
 	 50,000
 	  
 	 x
 	 85
 	 %
 	 =
 	 42,500
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 
 	  
 
	 Earned bonus for Q1
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 $
 	 167,500
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 
 	 
 	  
 

 
 (iv)   The earned quarterly bonuses for the first three quarters of a calendar year will be paid to the Executive within forty-five (45) days following the end of the relevant quarter, and the earned fourth
quarter and annual bonus for a calendar year will be paid to the Executive by March 15 following the end of such calendar year.
 (v)    The Executive will also be entitled to any additional bonus compensation provided for by resolution of the Board or its Compensation Committee.

2

  (vi)   The Executive has agreed to reduce his base salary for
2002 from $826,875 to $750,000, and to reduce his target bonus for 2002 from $826,875 to $200,000, in exchange for a grant of 156,125 shares of common stock of the Company pursuant to that certain Restricted Stock Award Agreement by and between the
Company and the Executive dated November 27, 2001. The reduced bonus will continue to be earned 20% per quarter and 20% for the year as provided in Section 2.2(ii). The foregoing notwithstanding, for all other purposes of this Agreement, including,
without limitation, Sections 2.5, 2.10 and 5, the Executive’s base salary and target bonus for 2002 shall each be deemed to be $826,875. In addition, unless the Executive and the Company otherwise agree, the Executive’s base salary for
2003 shall be $868,219.
 Section 2.3. Employee Benefits. During the term of his employment under this Agreement, the Executive will
be entitled to participate in all employee benefit programs, including any pension, profit-sharing, or deferred compensation plans, any medical, health, dental, disability and other insurance programs and any fringe benefits, such as club dues,
professional dues, the cost of an annual medical examination and the cost of professional fees associated with tax planning and the preparation of tax returns, on a basis at least equal to the other senior executives of the Company. In addition to
such benefits, the Company will maintain a $3,000,000 reverse split dollar life insurance policy on the life of and in the name of the Executive, and such other insurance as the Board or the Compensation Committee of the Board may determine. The
Executive or his designee will be the owner of such insurance policy and will have all rights pursuant thereto, subject to that certain Reverse Split-Dollar Insurance Agreement by and between the Company and the Executive dated February 2, 1995, as
it may be amended from time to time. Notwithstanding anything else contained in this Agreement, (i) upon termination of the Executive’s employment where he is entitled to payments pursuant to Section 2.5 or 2.10 hereof, or (ii) upon expiration
of the term of his employment pursuant to Section 4 hereof, the Executive will be entitled to participate, for the longer of (a) eighteen (18) months after the date of termination or expiration or (b) the remaining term of this Agreement as provided
in Section 4 hereof as if such termination had not occurred, in any medical, health, dental, disability, life or similar programs in which he participated immediately before his employment terminated or this Agreement expired and to receive the
fringe benefits provided for herein, on the same basis as during his employment (including payment by the Company of the costs and expenses associated with such programs and fringe benefits on the same terms as during the time the Executive was
employed with the Company), and in meeting its obligations under this provision the Company will take all actions which may be necessary or appropriate to comply with criteria set forth by the Company’s insurance carriers and other program
providers (including the continued employment of the Executive in some nominal capacity if necessary). 
 Section 2.4. Reimbursement of Expenditures.
The Company will reimburse the Executive for all reasonable expenditures incurred by the Executive in the course of his employment or in promoting the interests of the Company, including expenditures for (i) transportation,
lodging and meals during overnight business trips, (ii) business meals and entertainment, (iii) supplies and business equipment, (iv) long-distance telephone calls and (v) membership dues of business associations. Notwithstanding the foregoing,
the Company will have no obligation to pay reimbursements under this Section 2.4 unless the Executive submits timely reports of his expenditures to the Company in the manner prescribed by the Company and the rules and regulations underlying Section
162 of the Internal Revenue Code (the “Code”).
 Section 2.5. Severance Pay. If, for any reason whatsoever, the Company
terminates the Executive’s employment under this Agreement (other than by expiration of the term of the Executive’s employment pursuant to Section 4 hereof) either (i) before a Change in Control of the Company (as 
 

3

  defined in Section 2.10 (ii) hereof), or (ii) after the twenty-four (24) month period following a Change in Control of the Company,or if the Company
terminates the Executive’s employment under this Agreement for Cause during the 24-month period following a Change in Control of the Company, then in addition to any other rights and remedies the Executive may have, the Executive will be
entitled to receive severance pay equal to 2.99 times the greater of (a) the sum of the Executive’s annual base salary in effect at the date of termination plus his target bonus under Section 2.2 hereof for the year in which the date of
termination occurs and (b) the sum of the highest annual base salary and annual cash bonus paid to the Executive for any of the three (3) calendar years prior to the date of termination. Such amount will be payable in substantially equal
installments in accordance with the Company’s standard payroll practices over the twelve (12) month period following the date of termination.
 Section
2.6. Disability of Executive. If during the term of the Executive’s employment under this Agreement the Executive, in the opinion of a majority of the Board (excluding the Executive), as confirmed by competent medical
evidence, becomes physically or mentally unable to perform his duties for a continuous period (“Disabled”), then for the first year of his Disability the Executive will receive his full base salary and for the next six months of his
Disability he will receive one-half of his base salary. (The Company may satisfy this obligation in whole or in part by payments to the Executive provided through disability insurance.) The Company will not, however, be obligated to pay any salary
to the Executive under this Section 2.6 beyond expiration of his term of employment hereunder. Nor will the Company be obligated to pay bonus compensation or an automobile allowance with respect to the period of Disability. Bonus compensation in
this circumstance will be a pro rata portion of the bonus the Executive would have earned absent the period of Disability based upon the number of days during the fiscal year the Executive was not Disabled. When the Executive is again able to
perform his duties he will be entitled to resume his full position and salary. If the Executive’s Disability endures for a continuous period of eighteen (18) months, then the Company may terminate the Executive’s employment under this
Agreement after delivery of ten (10) days written notice. The Executive hereby agrees to submit himself for appropriate medical examination by a physician selected by the Company for the purposes of this Section 2.6.
 Section 2.7. Death of Executive. Within forty-five (45) days after the Executive’s death during the term of this Agreement, the Company will pay to
the Executive’s estate, or his heirs, the amount of any accrued and unpaid base salary (determined as of the date of death) and accrued and unpaid bonus compensation determined as if the Company’s fiscal year ended at the date of death. In
addition, the Company will pay to the Executive’s spouse (or if she is not alive, to his estate or heirs) a death benefit of $5,000. 
 Section 2.8.
Automobile Allowance. During the term of his employment under this Agreement, the Company will pay the Executive a monthly automobile allowance of $1,000.
 Section 2.9. Vacation. The Executive will be entitled to three (3) weeks paid vacation annually. Unused vacation time will accumulate and carryover to subsequent years. Any unused vacation at
the date of termination of this Agreement (for any reason) will be paid to the Executive promptly following the date of termination.
 Section 2.10. Change
in Control. 
 (i)     If, during the twenty-four (24) month period
following a Change in Control of the Company, the Executive’s employment with the Company is terminated (1) by the Executive for any reason or (2) by the Company for any reason other than Cause (as defined in Section 5.1 
 

4

  hereof), then in addition to any other rights or remedies the Executive may have, the Executive will be entitled to receive severance pay
in an amount equal to the greater of:
 (a)         2.99 times the greater of (i) the sum of the Executive’s annual base salary in effect at the date of termination plus his target bonus under Section 2.2 hereof for the year in which the date of termination occurs and (ii) the sum of
the highest annual base salary and annual cash bonus paid to the Executive for any of the three (3) calendar years prior to the date of termination; and 
 (b)        (i) three percent (3%) of the positive amount determined by subtracting (A) the product obtained by multiplying the number of
shares of Common Stock Outstanding (as defined below) at the date of (and giving effect to) the Change in Control (“CIC Date”) by a common stock price of $6.125 per share (which was the per share price of the Company’s common stock on
January 7, 2000), from (B) the actual market value of the Company at the CIC Date determined by multiplying the number of shares of Common Stock Outstanding at the CIC Date (and giving effect to the Change in Control transaction) by the common stock
price on the CIC Date, as quoted on the trading system on which the common stock is regularly traded, (ii) multiplied by .6, with the maximum amount payable under this subsection (b) not to exceed $25,000,000. The $6.125 per share price will be
adjusted proportionately in the event that, prior to the CIC Date, a reorganization, consolidation, recapitalization, stock split, stock dividend or other change in corporate structure occurs which affects the common stock of the Company. The number
of shares of Common Stock Outstanding shall include issued and outstanding common stock, restricted stock (whether or not vested) and any security which is immediately convertible into common stock, as well as any securities convertible into common
stock that are issued as part of the Change in Control transaction no matter when they may be convertible, but shall not include shares of common stock issuable pursuant to outstanding stock options (whether or not vested). For avoidance of doubt,
the intent of this provision is to pay Executive a percentage of the increase in the value to a shareholder of the common stock of the Company from January 7, 2000 to the CIC Date, taking in account the Change in Control transaction, and if the
actual market value of the Company at the CIC Date cannot be adequately determined under (b)(i)(B) above, then the Board shall determine such actual market value by taking into consideration the aggregate consideration received by shareholders of
the Company, the market value placed on the Company in structuring the Change in Control transaction or such other factors as the Board deems appropriate to carry out the intent of this provision.
 Such severance pay will be payable in substantially equal installments in accordance with the Company’s standard payroll practices over the twelve (12) month period following the date of
termination. 
 (ii)    For the purposes of this Agreement, a “Change in
Control” shall mean the occurrence of any of the following events: 
 (a)         An acquisition (other than directly from the Company) of any voting securities of the Company (“Voting Securities”) by any “Person” (as the term
person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934 (the “1934 Act”)) immediately after which such Person has “Beneficial Ownership” (within 
 

5

  the meaning of Rule 13d-3 promulgated under the 1934 Act) of 25% or more of the combined voting power of the Company’s then
outstanding Voting Securities; provided, however, that in determining whether a Change in Control has occurred, Voting Securities that are acquired in an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by
(A) the Company or (B) any corporation or other person of which a majority of its voting power or its equity securities or equity interests are owned directly or indirectly by the Company (a “Subsidiary”), or (ii) the Company or any
Subsidiary, or (iii) any Person in connection with a “Non-Control Transaction” (as hereinafter defined), shall not constitute an acquisition for purposes for this clause (a); or 
 (b)        The individuals who, as of the date of this Agreement, are members of the Board (the “Incumbent
Board”) cease for any reason to constitute at least 60% of the Board; provided, however, that if the election, or nomination for election by the Company’s shareholders, of any new director was approved by a vote of at least 80% of the
Incumbent Board, such new director shall for purposes of this Agreement, be considered as a member of the Incumbent Board; provided, further, however, that no individual shall be considered a member of the Incumbent Board if such individual
initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the 1934 Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board (a “Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or
 (c)         Approval by the shareholders of the Company of:
 (i)        a merger, consolidation or reorganization involving the Company, unless:
 (A)        the shareholders of the Company, immediately before such merger,
consolidation or reorganization, own, directly or indirectly, immediately following such a merger, consolidation or reorganization, at least two-thirds (2/3) of the combined voting power of
the outstanding voting securities of the corporation resulting from such merger, consolidation or reorganization (the “Surviving Corporation”) in substantially the same proportion as their ownership of the Voting Securities immediately
before such merger, consolidation or reorganization, and
 (B)       the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such merger, consolidation or reorganization constitute at least 80% of the
members of the board of directors of the Surviving Corporation. (A transaction in which both of clauses (A) and (B) above shall be applicable is hereinafter referred to as a “Non-Control Transaction.”)
 (ii)      A complete liquidation or dissolution of
the Company; or
 

6

  (iii)     An agreement for the sale or other
disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Subsidiary); or
 (iv)      A transaction in which the Company recapitalizes itself and uses the proceeds of such a
recapitalization to buy back or tender common stock or declares a special cash dividend in excess of $.50 per share of common stock.
 Section 3. Certain Additional Payments by
the Company.
 Section 3.1. Amount of Additional Payment. Anything in this Agreement to the contrary notwithstanding and except
as set forth below, in the event the Internal Revenue Service (the “IRS”) or any other governmental agency claims that, or a determination is made under Section 3.2 that, any benefit or payment or distribution by the Company or its
affiliates to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 3)
(a “Payment”) is, or should be, subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Executive shall be entitled to receive from the Company an additional payment, or more than one additional payment (each a “Gross-Up Payment”), in
an amount determined under Section 3.2 such that after payment by the Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes, social security and other
employment taxes, and Excise Tax imposed upon any Gross-Up Payment (and any interest and penalties imposed with respect thereto), the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. 

Section 3.2. Determinations. Subject to the provisions of Section 3.3, all determinations required to be made under this Section 3, including
whether and when any Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by PricewaterhouseCoopers LLP or such other certified public accounting
firm as may be designated by the Executive (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within fifteen (15) business days of the receipt of notice from the Executive
that there has been a Payment, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, the Executive shall
appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne
solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 3, shall be paid by the Company to the Executive within five (5) days of the receipt of the Accounting Firm’s determination. Any determination by the Accounting
Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, the Company acknowledges and agrees
that it is possible that the Company may be required under this Section 3.2 to make more than one Gross-Up Payment.
 Section 3.3. Contest of Claims.
The Executive shall notify the Company in writing of any claim by the IRS that, if successful, would require the payment by the Company of any Gross-Up Payment. Such notification shall be given as soon as practicable but no
later than ten (10) business days 
 

7

  after the Executive is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is
requested to be paid. The Executive shall not pay such claim prior to the expiration of the thirty (30) day period following the date on which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes
with respect to such claim is due). If the Company notifies the Executive in writing prior to the expiration of such period that it desires to contest such claim, the Executive shall:
 (i)     give the Company any information reasonably requested by the Company relating to such claim,
 (ii)    take such action (other than waiving his right to any Payments) in connection with
contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company,
 (iii)   cooperate with the Company in good faith in order effectively to contest such claim,
and
 (iv)   permit the Company to participate in any proceedings relating to such
claim;
 provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income or other tax or other sanctions (including interest and penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses on the same basis as a Payment. Without limitation of the foregoing provisions of this Section 3.3, the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or
forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine;
provided, however, that if the Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Executive (unless otherwise prohibited by law, in which event the parties shall agree
upon a mutually acceptable alternative), on an interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to such advance on the same basis as a Payment; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of the
Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would
be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.
 Section 3.4. Refunds. If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 3.3, the Executive receives any refund with respect to such claim, the
Executive shall (subject to the Company’s complying with the requirements of Section 3.3) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the
receipt by the Executive of an amount advanced by the Company pursuant to Section 3.3, a determination is made that the Executive shall not be entitled to any refund 
 

8

  with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of
thirty (30) days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid.

Section 4. Term of Employment.
 The Executive’s term of employment under this
Agreement will expire on January 1, 2005. The term of employment will automatically renew for an additional one-year period upon the foregoing expiration, and thereafter upon the expiration of any renewal term provided by this Section 4, unless the
Company or the Executive provides written notice to the other party at least thirty (30) days prior to expiration that such party does not want to renew this Agreement.
 Section 5. Termination of Employment.
 Section 5.1. Termination by the Company. The Company may terminate the
Executive’s employment under this Agreement only for “Cause” amounting to gross, continuing and willful malconduct, misconduct or nonperformance, having a substantial, adverse effect upon the Company, or for Disability, as described
in Section 2.6 hereof. No act or failure to act by the Executive will be considered “willful” unless done or not done in bad faith and without reasonable belief that the Executive’s action or omission was in the best interests of the
Company. Termination for Cause will not be effective unless the Company delivers to the Executive thirty (30) days advance written notice setting forth in reasonable detail the allegations of Cause, and the Executive does not correct the acts or
omissions documented in such notice within such 30-day period. For purposes of this Agreement, any significant change to the Executive’s title, his powers, duties or responsibilities, or his employee benefits or working conditions, or any
relocation of his workplace outside of Atlanta, Georgia, will, at the option of the Executive, constitute a termination of his employment by the Company without Cause. Notwithstanding anything else contained in this Agreement, if, for any reason
whatsoever, the Company terminates the Executive’s employment, then the Company will reimburse the Executive for all reasonable costs and expenses incurred by him (including attorneys’ fees, court costs and the costs of paralegal and other
legal or investigative support personnel) connected with investigating, preparing, defending or appealing any litigation, arbitration, mediation or similar proceeding arising out of this Agreement, whether commenced or threatened. Such
reimbursements will be paid in advance of the final disposition of such litigation, arbitration, mediation or similar proceeding within ten (10) days after the Executive submits requests for reimbursement along with supporting invoices.

Section 5.2. Termination by the Executive. The Executive may terminate his employment under this Agreement thirty (30) days after giving
written notice to the Company. If the Executive terminates his employment under this Agreement, then he will be entitled to pro rata portions of his base salary and bonus compensation with respect to the fiscal year in which the termination occurs
(based on the number of days the Executive is employed by the Company during such fiscal year) as well as any accrued but unpaid compensation.
 Section 6. Restrictive
Covenants.
 Section 6.1. Prohibited Activities. During the term of his employment under this Agreement and for a period of one
(1) year thereafter, the Executive will not, as a shareholder, owner, operator, employee, partner, independent contractor, consultant, lender, financier, officer, director or by any other means whatsoever participate in any of the following
activities:
 

9

  (i)     Engage in or be associated with any business
that directly or indirectly competes with the Company or PCI with respect to enhanced personal communications services; 
 (ii)    Induce any person who is an employee, officer, agent, affiliate, supplier, client or customer of the Company or PCI to terminate such relationship or refuse to do business with the Company or PCI;
or
 (iii)   Solicit, direct, take away, serve, interfere with, or endeavor to entice
away from the Company or PCI any person, company, firm, institution, or other entity that has purchased products or services from the Company or PCI.
 Section 6.2. Trade Secrets. The Executive acknowledges and recognizes that during his employment with the Company he may acquire (or may have acquired during his prior employment with the Company or PCI) secret or
confidential information, knowledge, or data with respect to the business or products of the Company or PCI which may provide advantage to the Company or PCI over others not having such information. During his employment hereunder and for a period
of one (1) year thereafter, the Executive will not communicate, disclose or divulge any such secret or confidential information to the detriment of the Company or PCI. Following the termination of the Executive’s employment hereunder, the
provisions of this Section 6.2 shall not apply to any information that (a) was known to the Executive prior to his employment by the Company or PCI or (b) becomes generally available to the telecommunications industry other than as a result of
disclosure by the Executive.
 Section 6.3. Property of the Company. The Executive acknowledges that all confidential information
relating to computer software or hardware currently utilized by the Company or incorporated into its products and all such information the Company currently plans to utilize or incorporate into its products is the exclusive property of the Company.
Furthermore, the Executive agrees that all discoveries, inventions, creations and designs of the Executive during the course of his employment pursuant to this Agreement, the Original PTEK Agreement or the Original PCI Agreement will be the
exclusive property of the Company.
 Section 6.4. Remedies. In the event the Executive violates or threatens to violate the
provisions of this Section 6, damages at law will be an insufficient remedy and the Company will be entitled to equitable relief in addition to any other remedies or rights available to the Company and no bond or security will be required in
connection with such equitable relief.
 Section 6.5. Counterclaims. The existence of any claim or cause of action the Executive may
have against the Company will not at any time constitute a defense to the enforcement by the Company of the restrictions or rights provided by this Section 6.
 Section 7.
Service as a Director.
 During the term of this Agreement, the Executive agrees to be nominated to serve as a director of the Company when his then current
term expires and, subject to his election by the shareholders of the Company, to serve as a director of the Company.
 Section 8. Indemnification.
 Section 8.1. Non-Derivative Actions. The Company will indemnify the Executive if he becomes a party to any proceeding (other than an action by, or in the
right of, the Company), by reason of 
 

10

  the fact that he is or was a director, officer, employee, or agent of the Company or is or was serving at the request of the Company as a director, officer,
employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against liability incurred in connection with such proceeding, including any appeal, provided he acted in good faith and in a manner he reasonably
believed to be in, or not opposed to, the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The termination of any proceeding by judgment, order,
settlement, or conviction or upon a plea of nolo contendere or its equivalent will not, of itself, create a presumption that the Executive did not act in good faith and in a manner which he reasonably believed to be in, and not opposed to, the best
interests of the Company or, with respect to any criminal proceeding, had reasonable cause to believe that his conduct was unlawful. 
 Section 8.2.
Derivative Actions. The Company will indemnify the Executive if he becomes a party to any proceeding by or in the right of the Company to procure a judgement in its favor by reason of the fact that he is or was a director,
officer, employee, or agent of the Company or is or was serving at the request of the Company as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against expenses and amounts
paid in settlement not exceeding, in the judgement of the Board, the estimated expense of litigating the proceeding to conclusion, actually and reasonably incurred in connection with the defense or settlement of such proceeding, including any
appeal; provided that he acted in good faith and in a manner he reasonably believed to be in, or not opposed to, the best interests of the Company.
 Section
8.3. Advancement of Expenses. Expenses incurred by the Executive in defending a civil or criminal proceeding described in this Section 8 will be paid by the Company in advance of the final disposition of the proceeding within
ten (10) days after the Executive submits a request for payment; provided, however, that the Executive has undertaken in writing to repay such amounts if he is ultimately found not to be entitled to indemnification by the Company.
 Section 8.4. Non-Exclusivity; Continuity. The indemnification provided for by this Agreement will not be exclusive and the Company may make any
other indemnification allowed by law. The indemnification provided for by this Agreement will continue after the Executive has ceased to be a director, officer, employee, or agent of the Company or ceases to serve at the request of the Company as a
director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, and will inure to the Executive’s heirs, executors, and administrators.
 Section 8.5. No Subrogation. The indemnification provided for by this Agreement will be personal in nature and the Company will not have any liability under this Section 8
to any insurer or any person, corporation, partnership, trust or association or other entity (other than heirs, executors or administrators) by reason of subrogation, assignment, or succession by any other means to the claim of the
Executive.
 Section 9. Compliance With Other Agreements.
 The Executive
represents and warrants to the Company that he is free to enter into this Agreement and that the execution of this Agreement and the performance of the obligations under this Agreement will not, as of the date of this Agreement or with the passage
of time, conflict with, cause a breach of or constitute a default under any agreement to which the Executive is a party or may be bound.
 

11

  Section 10. Severability.
 Every provision of this
Agreement is intended to be severable. If any provision or portion of a provision is illegal or invalid, then the remainder of this Agreement will not be affected. Moreover, any provision of this Agreement which is determined to be unreasonable,
arbitrary or against public policy will be modified as necessary so that it is not unreasonable, arbitrary or against public policy.
 Section 11. Waivers.
 A waiver by a party to this Agreement of any breach of this Agreement by the other party will not operate or be construed as a waiver of any other breach or of the same
breach on a future occasion. No delay or omission by either party to enforce any rights it may have under this Agreement will operate or be construed as a waiver.
 Section 12.
Modification.
 This Agreement may not be modified or amended except by a writing signed by the Company and the Executive.
 Section 13. Headings. 
 The various headings contained in this Agreement are inserted only as a matter
of convenience and in no way define, limit or extend the scope or intent of any of the provisions of this Agreement.
 Section 14. Counterparts.
 This Agreement may be executed in several counterparts, each of which will be deemed an original, but all of which taken together will constitute one and the same
instrument.
 Section 15. Number and Pronouns.
 Wherever from the context it
appears appropriate, each term stated in either the singular or the plural will include the singular and the plural and pronouns stated in the masculine, feminine or neuter gender will include the masculine, feminine and neuter genders. 

Section 16. Survival of Representations and Warranties.
 The respective representations and
warranties of the parties to this Agreement will survive the execution of this Agreement and continue without limitation.
 Section 17. Assignment; Binding
Effect.
 Neither this Agreement nor any right or interest hereunder shall be assignable by either the Executive or the Company without the other
party’s prior written consent; provided, however, that nothing in this Section 17 shall preclude (i) the Executive from designating a beneficiary to receive any benefits payable hereunder upon his death, or (ii) the executors, administrators or
other legal representatives of the Executive or his estate from assigning any rights hereunder to the person or persons entitled thereto.
 

12

  In addition, at the request of the Executive, the Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business, assets or stock of the Company, by agreement in form and substance satisfactory to the Executive, to expressly assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such agreement prior to the effectiveness of any such succession will be a breach of this Agreement and will
entitle the Executive to compensation from the Company in the same amount and on the same terms as he would be entitled to hereunder if his employment was terminated by the Company without Cause pursuant to Section 2.10 (i) as of the effectiveness
of any such succession. 
 Except as otherwise provided herein, this Agreement will be binding upon and inure to the benefit of the parties hereto and their
respective legal representatives, administrators, executors, successors and assigns.
 Section 18. Waiver of Jury. 
 With respect to any dispute which may arise in connection with this Agreement each party to this Agreement hereby irrevocably waives all rights to demand a jury trial.
 Section 19. Entire Agreement.
 With respect to its subject matter, this Agreement constitutes the
entire understanding of the parties superseding all prior agreements, understandings, negotiations and discussions between them, whether written or oral, and there are no other understandings, representations, warranties or commitments with respect
thereto.
 Section 20. Governing Law; Venue.
 This Agreement will be governed by
and interpreted in accordance with the substantive laws of the State of Georgia without reference to conflicts of law. Venue for the purposes of any litigation in connection with this Agreement will lie solely in the state court in and for Fulton
County, Georgia or the United States District Court in and for the Northern District of Georgia.
 Section 21. Notices.
 Any notices or other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given and delivered when delivered in person, two (2) days
after being mailed postage prepaid by certified or registered mail with return receipt requested, or when delivered by overnight delivery service or by facsimile to the recipient at the following address or facsimile number, or to such other address
or facsimile number as to which the other party subsequently shall have been notified in writing by such recipient:
   
 

13

  If to the Company:
 PTEK Holdings,
Inc.
3399 Peachtree Road
The Lenox Building
Suite 600
Atlanta, GA 30326
Attn: Chief Legal Officer
 If to the Executive:
 Boland T. Jones
229 The Prado
Atlanta, Georgia 30309
 Section 22. Termination of Original PCI Agreement.
 The Original PCI Agreement is terminated as of January 1, 2002 and shall be of no further force or effect thereafter.
 Section 23. Original PTEK Agreement Superseded.

 The Original PTEK Agreement has been amended and restated by this Agreement, and the Original PTEK Agreement shall be of no further force or effect after
the effective date of this Agreement.
 IN WITNESS WHEREOF, the parties have executed this Agreement. 
  

	  
 	  
 	 PTEK HOLDINGS, INC
 
	 
 ATTEST: 
 	  
 	 By: 
 	 
 
 /s/  JEFFREY A. ALLRED
 
	  
 	  
 	  
 	 
 
	 /s/  PATRICK G. JONES
 	  
 	  
 	 Jeffrey A. Allred
 
	 
 	  
 	  
 	  
 
	 Patrick G. Jones 
 Secretary
 	  
 	  
 	  
 

  

	  
 	  
 	 PREMIERE COMMUNICATIONS, INC.
 
	 
 ATTEST:
 	  
 	 By: 
 	 
 
 /s/  JEFFREY A. ALLRED
 
	  
 	  
 	  
 	 
 
	  /s/  PATRICK G. JONES
 	  
 	  
 	 Jeffrey A. Allred
 
	 
 	  
 	  
 	  
 
	 Patrick G. Jones
 Secretary
 	  
 	  
 	  
 

  

	  
 	  
 	  
 	 THE EXECUTIVE
 
	 
 
 
 	  
 	  
 	 
 
 /s/  BOLAND T. JONES
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 Boland T. Jones
 

  

 14

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