Document:

Exhibit 10.29

OFFICE
SPACE LEASE AGREEMENT

BETWEEN

ATLANTA
LAKESIDE REAL ESTATE, LP.,

a Georgia Limited Partnership

AND

LANIIER
HEALTHCARE, L.L.C.,

a Delaware limited liability company

 

BASIC
LEASE INFORMATION

	
  Lease Date

  	
   

  	
  September 6, 2002

  
	
   

  	
   

  	
   

  
	
  Landlord

  	
   

  	
  Atlanta Lakeside Real Estate, L.P., a Georgia
  Limited Partnership

  
	
   

  	
   

  	
   

  
	
  Tenant

  	
   

  	
  Lanier Healthcare, L.L.C., a Delaware limited
  liability company

  
	
   

  	
   

  	
   

  
	
  Building Address

  	
   

  	
  5430 Metric Place, Suite 200 

  Norcross, Georgia 30092

  
	
   

  	
   

  	
   

  
	
  Premises

  	
   

  	
  Approximately 38,l13 square feet of Rentable Area.

  
	
   

  	
   

  	
   

  
	
  Permitted Use

  	
   

  	
  Office, Administrative, Healthcare, and related.

  
	
   

  	
   

  	
   

  
	
  Lease Term

  	
   

  	
  Approximately 66 months (Note: Base Rent waived for
  first 5 months following the Commencement Date and 50% of Base Rent waived
  for months 6-8 following the Commencement Date)

  
	
   

  	
   

  	
   

  
	
  Commencement Date

  	
   

  	
  The later of December 15, 2002 or the date of
  substantial completion of the Tenant Improvements

  
	
   

  	
   

  	
   

  
	
  Expiration Date

  	
   

  	
  That date which is sixty-six (66) months following the
  Commencement Date

  
	
   

  	
   

  	
   

  
	
  Rentable Area of Building

  	
   

  	
  58,000 square feet

  
	
   

  	
   

  	
   

  
	
  Rentable Area of Premises

  	
   

  	
  38,113 square feet

  
	
   

  	
   

  	
   

  
	
  Tenant’s Percentage Share

  	
   

  	
  65.71%

  
	
   

  	
   

  	
   

  
	
  Base Rental

  	
   

  	
  12/15/02 - 5/14/03 Free

  
	
  (per annum per sq. ft of

  	
   

  	
  5/15/03 - 8/14/03 $5.50

  
	
  Rentable Area of Premises)

  	
   

  	
  8/15/03 - 5/14/04 $11.00

  
	
  (Note: The dates provided are

  	
   

  	
  5/15/04 - 5/14/05 $11.33

  
	
  subject to a day-for-day extension

  	
   

  	
  5/15/05 - 5/14/06 $11.67

  
	
  in the event Commencement Date

  	
   

  	
  5/15/06 - 5/14/07 $12.02

  
	
  occurs later than December 15, 2002)

  	
   

  	
  5/15/07 - 5/14/08 $12.38

  

 

 

 

	
  

  	
   

  	
  5/15/08 - 6/14/08 $12.75

  
	
  Security Deposit

  	
   

  	
  $31,621

  
	
  Landlord’s Address

  	
   

  	
  For Notices: Atlanta Lakeside Real Estate, L.P. 2303
  Cumberland Parkway Suite 100 Atlanta, Georgia 30339 ATTN: Scott D. Hawkins
  Fax Number 770-438-6424

  
	
  Tenant’s Address

  	
   

  	
  Lanier Healthcare, L.L.C. 

  5430 Metric Place 

  Norcross, Georgia 30092 

  With a copy to: 

  Smith, Gambrell & Russell, LLP

  Suite 3100, 1230 Promenade II 

  1230 Peachtree Street, N.E. 

  Atlanta, Georgia 30309 

  ATTN: Richard G. Greenstein, Esq.

  
	
   

  	
   

  	
   

  
	
  Landlord’s Broker

  	
   

  	
  Resource Real Estate Partners, L.L.C. 

  Fax Number 770-436-3484

  
	
  Tenant’s Broker

  	
   

  	
  Thomas B. Tindall 

  Cresa Partners of Georgia 

  Fax Number: 404-256-6399

  
	
  Exhibits

  	
   

  	
  EXHIBIT “A”: Floor Plan(s) 

  EXHIBIT “B”: Memorandum of Commencement of Rental

  EXHIBIT “C”: Rules and Regulations 

  EXHIBIT “D”: Intentionally Omitted 

  EXHIBIT “E”: Subordination, Non-Disturbance and
  Attornment Agreement 

  EXHIBIT “F”: Additional Provisions 

  EXHIBIT “G”: Work Agreement 

  EXHIBIT “H”: Omitted 

  EXHIBIT “I”:Standard Finishes 

  EXHIBIT “J”: Antenna Specifications 

  EXHIBIT “K”: Plans and Specifications

  

 

 

 

Where references to
particular Basic Lease Information appear in the Lease, such references shall
incorporate the applicable Basic Lease Information set forth herein.

	
  LANDLORD:

  
	
   

  
	
  ATLANTA LAKESIDE REAL ESTATE, L.P.,

  
	
  a Georgia Limited Partnership

  
	
   

  
	
  By:

  	
  /s/ Alexandra Logan

  	
   

  
	
  Name:

  	
  Alexandra Logan

  	
   

  
	
  Title:

  	
  Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  TENANT:

  
	
  LANIER HEALTHCARE, L.L.C.,

  
	
  A Delaware limited liability company

  
	
   

  
	
   

  
	
  Name:

  	
  /s/ Robert J. Duhoy

  	
   

  
	
  Title:

  	
  EVP and CFO

  	
   

  
							

 

 

OFFICE
SPACE LEASE AGREEMENT

TABLE OF CONTENTS

	
  1.

  	
  Definitions

  	
   

  	
  1

  
	
  2.

  	
  Term; Completion of Improvements

  	
   

  	
  2

  
	
  3.

  	
  Rental

  	
   

  	
  5

  
	
  4.

  	
  Use

  	
   

  	
  9

  
	
  5.

  	
  Services

  	
   

  	
  10

  
	
  6.

  	
  Personal Property Taxes

  	
   

  	
  11

  
	
  7.

  	
  Alterations

  	
   

  	
  12

  
	
  8.

  	
  Liens

  	
   

  	
  13

  
	
  9.

  	
  Repairs

  	
   

  	
  13

  
	
  10.

  	
  Destruction or Damage

  	
   

  	
  15

  
	
  11.

  	
  Insurance

  	
   

  	
  16

  
	
  12.

  	
  Release and Subrogation

  	
   

  	
  19

  
	
  13.

  	
  Tenant’s Personal Property

  	
   

  	
  19

  
	
  14.

  	
  Indemnification

  	
   

  	
  19

  
	
  15.

  	
  Compliance with Legal Requirements

  	
   

  	
  20

  
	
  16.

  	
  Assignment and Subletting

  	
   

  	
  20

  
	
  17.

  	
  Signs

  	
   

  	
  22

  
	
  18.

  	
  Rules

  	
   

  	
  23

  
	
  19.

  	
  Entry by Landlord

  	
   

  	
  23

  
	
  20.

  	
  Environmental Matters

  	
   

  	
  24

  
	
  21.

  	
  Landlord’s Lien

  	
   

  	
  26

  
	
  22.

  	
  Events of Default

  	
   

  	
  26

  
	
  23.

  	
  Remedies

  	
   

  	
  27

  
	
  24.

  	
  Landlord’s Right to Cure Defaults

  	
   

  	
  28

  
	
  25.

  	
  Attorney’s Fees

  	
   

  	
  29

  
	
  26.

  	
  Landlord’s Defaults

  	
   

  	
  29

  
	
  27.

  	
  Eminent Domain

  	
   

  	
  29

  
	
  28.

  	
  Subordination

  	
   

  	
  30

  
	
  29.

  	
  No Merger

  	
   

  	
  31

  
	
  30.

  	
  Sale

  	
   

  	
  31

  
	
  31.

  	
  Estoppel Certificate

  	
   

  	
  31

  
	
  32.

  	
  No Light, Air or View Easement

  	
   

  	
  31

  
	
  33.

  	
  Holding Over

  	
   

  	
  31

  
	
  34.

  	
  Abandonment

  	
   

  	
  32

  
	
  35.

  	
  Security Deposit

  	
   

  	
  32

  
	
  36.

  	
  Waiver

  	
   

  	
  32

  
	
  37.

  	
  Notices

  	
   

  	
  32

  
	
  38.

  	
  Complete Agreement

  	
   

  	
  33

  
	
  39.

  	
  Corporate Authority

  	
   

  	
  33

  
	
  40.

  	
  Landlord Liability

  	
   

  	
  33

  
	
  41.

  	
  Quiet Enjoyment

  	
   

  	
  34

  
	
  42.

  	
  Force Majeure

  	
   

  	
  34

  
	
  43.

  	
  Certain Rights Reserved to Landlord

  	
   

  	
  34

  

 

 i
 

 

 

	
  44.

  	
  Bankruptcy Matters

  	
   

  	
  35

  
	
  45.

  	
  Americans With Disabilities Act

  	
   

  	
  35

  
	
  46.

  	
  Miscellaneous

  	
   

  	
  36

  
	
  47.

  	
  Broker Representation

  	
   

  	
  37

  
	
  48.

  	
  Exhibits; Additional Provisions

  	
   

  	
  37

  

 

 ii

 

OFFICE SPACE LEASE AGREEMENT

THIS OFFICE SPACE LEASE AGREEMENT (hereinafter
referred to as the “Lease”), dated September       ,
2002 (for the purpose of reference only) is made and entered into by and
between ATLANTA LAKESIDE REAL ESTATE, L.P., a Georgia limited partnership
(hereinafter referred to as “Landlord”), and LANIER HEALTHCARE, L.L.C., a
Delaware limited liability company (hereinafter referred to as “Tenant”);

WITNESSETH:

Landlord hereby leases to Tenant, and Tenant hereby
leases from Landlord, the Premises for the term of this Lease and subject to
the terms, covenants, agreements and conditions hereinafter set forth, to each
and all of which Landlord and Tenant hereby mutually agree.

1.             Definitions.

For the purposes of this Lease and in addition to the
terms defined elsewhere in this Lease, the following defined terms shall have
the meaning ascribed thereto in this Paragraph 1:

1.01.  “Additional
Rental” shall mean the sums payable pursuant to subparagraph 3.01(b) of this
Lease.

1.02.  “Base
Rental” shall mean the sums payable pursuant to subparagraph 3.01(a) of this
Lease.

1.03.  “Building”
shall mean the land and other real property located at the address set forth in
the Basic Lease Information, the building constructed thereon, and all other
improvements on or appurtenances to said real property.

1.04.  “Common
Area” shall mean those areas and parts of the Building intended for the common
use and/or benefit of all occupants of the Building, including among other
facilities, shared use stairs, parking areas, shared use sidewalks, shared use
driveways, shared use service areas, shared use trash dumpsters, common loading
areas and landscaped areas.

1.05.  “Default
Rate” shall mean a rate per annum equal to the lesser of (i) the Prime Rate
plus two (2) percentage points or (ii) the highest rate of interest permitted
by law.

1.06.  “Insurance
Expenses” shall mean all premium costs and expenses incurred by Landlord for
all hazard, public liability and rental loss and property damage insurance
attributable to Building procured by Landlord in its commercially reasonable
discretion.

1.07.  “Lease
Year” shall mean each one (1) year period of the term of this Lease beginning
on the Commencement Date, and each anniversary thereof, and ending on the day
immediately prior to the next succeeding anniversary of the Commencement Date.

 

1.08.  “Premises”
shall mean the portion of the Building which is highlighted or cross-hatched on
the floor plans(s) attached hereto as Exhibit “A” and by this reference made a
part hereof.

1.09.  “Prime
Rate” shall mean the prime rate or its equivalent announced and in effect from
time to time by the Atlanta office of the Wachovia Bank or its successors.

1.10.  “Rentable
Area” of the Premises and of the Building is stipulated by Landlord and Tenant
in the respective number of square feet set forth for each in the Basic Lease
Information subject to mutual verification of space measurement as measured
from dripline to dripline.

1.11.  “Real
Estate Taxes” shall mean all real estate taxes and assessments whether general
or specific other than any taxes resulting from a sale, transfer or refinancing
of the Building or property levied against, in respect to, or attributable to
the Building or any other tax levied against Landlord as substitute for, or in
lieu of, any tax which would otherwise constitute a real estate tax or a
specific tax on rentals from the Building, plus the commercially reasonable
cost, including reasonable attorneys’, appraisers’ and tax consultants’ fees,
of any negotiation, contest, or appeal pursued by Landlord in an effort to
reduce the tax or assessment on which any tax provided for in this Paragraph-is
based.  Notwithstanding the foregoing, in
no event shall Real Estate Taxes include any federal, state or local income,
franchise, small business, estate or inheritance tax.  With regard to any Real Estate Taxes that are
payable in installments, the amount of such Real Estate Taxes for the purposes
of this Lease shall be determined as if Landlord had elected to pay the same in
installments.

1.12.  “Rental”
shall mean, collectively, Base Rental, Additional Rental and all other sums
payable by Tenant to Landlord which are deemed or designated Rental, additional
rent or rent pursuant to the terms of this Lease.

1.13.  “Tenants
Percentage Share” shall mean the percentage figure specified in the Basic Lease
Information.  Landlord and Tenant
acknowledge that Tenants Percentage Share has been obtained by  dividing the Rentable Area of the Premises by
the total Rentable Area of the Building, and multiplying such quotient by
100.  In the event Tenant’s Percentage
Share is changed during a calendar year by reason of a change in the Rentable
Area of the Premises, Tenant’s Percentage Share shall thereafter mean the
result obtained by dividing the new Rentable Area of the Premises by the total
Rentable Area of the Building and multiplying such quotient by 100, and for the
purposes of Paragraph 3 of this Lease, Tenant’s Percentage Share shall be
determined on the basis of the number of days daring such calendar year at each
such percentage share.

2.             Term; Completion of Improvements.

2.01. 
The term of this Lease shall commence on the Commencement Date and,
unless sooner terminated as hereinafter provided, shall end on the Expiration
Date, as such dates are respectively specified in the Basic Lease Information
and as they may be revised pursuant to Paragraph 2.02.  If Landlord, for any reason whatsoever,
cannot deliver possession of the Premises to Tenant on or before December 15,
2002, this Lease shall not be void or voidable, nor

 2
 

 

shall Landlord be liable to Tenant for any loss, cost, damage or
expense resulting therefrom, but in that event, subject to the provisions of
Exhibit G attached hereto and by this reference made a part hereof, all Base
Rental and Additional Rental due hereunder shall be waived for the period
between December 15, 2002 and the time when Landlord is deemed to have
delivered possession pursuant to the terms of subparagraph 2.02 hereof.  Subject to the sentence immediately
following, Tenant agrees that such waiver of Base Rental and Additional Rental
shall be its sole and exclusive remedy for Landlord’s inability to deliver
possession of the Premises by December 15, 2002 or any time thereafter.  If possession of the Premises has not been
delivered to Tenant on or before March 15, 2003 for any reason whatsoever,
Tenant at its option, at any time thereafter but prior to the delivery of
possession, may terminate this Lease by notice to Landlord and Tenant shall
thereupon be released from all obligations under this Lease; provided, however,
in the case of termination by Tenant, said. 
March 15, 2003 deadline shall be extended by any period of Tenant Caused
Delays as defined in Exhibit G hereof.

2.02. 
The Premises shall be deemed completed, Landlord shall be deemed to have
delivered possession of the Premises, Tenant shall be deemed to have taken
occupancy and Base Rental and Additional Rental shall begin to accrue on the
Commencement Date, as specified in the Basic Lease Information.  Any Tenant Improvements in the Premises shall
be deemed substantially complete in substantial accordance with the Approved
Plans and Specifications on the earlier of (A) the date the Tenant Improvements
are substantially completed so that Tenant is able to occupy the Premises for
the conduct of its business without material interference thereto and a
Certificate of Occupancy has been issued for the Premises, provided such date
occurs not earlier than ten (10) business days following Landlord’s written
notice to Tenant identifying such date, or (B) the date Tenant commences
occupancy of the Premises for the purposes of conducting its business
operations.  The fact that certain minor
items commonly considered punchlist items in the construction industry remain
to be corrected or finished shall not render any Tenant Improvements less than
substantially complete so long as such unfinished items do not, in the
aggregate, materially affect Tenant’s ability to conduct its business
operations.  Landlord shall use
reasonable speed and diligence to substantially complete the Tenant
Improvements and have the Premises ready for occupancy on or before December
15, 2001. If the Premises are not deemed substantially complete by December 15,
2002, such failure to complete shall not in any way affect the obligation of
Tenant hereunder except that the Commencement Date and Expiration Date shall be
postponed one day for each day substantial completion is delayed beyond said
December 15, 2002 date until the P remises are substantially complete.  No liability whatsoever shall arise or accrue
against Landlord by reason of its failure to deliver or afford possession of
the Premises and Tenant hereby releases and discharges Landlord from and of any
claims for damage, loss, or injury of every kind whatsoever as if this Lease
were never executed, Tenant’s sole remedy being its right to terminate pursuant
to subparagraph 2.01.  In the event the
Commencement Date and the Expiration Date and thus the dates on which Base
Rental and Additional Rental commence are postponed pursuant to the provisions
of this subparagraph 2.02, upon the request of Landlord, Tenant shall execute a
memorandum confirming the Commencement Date, the Expiration Date and the
commencement date of Base Rental and Additional Rental in the form attached
hereto as Exhibit “B” and by this reference made a part hereof.

2.03. 
Subject only to punchlist items identified by Tenant within thirty (30)
days of the date of substantial completion and latent defects. taking of possession
by Tenant for the

 3
 

 

purpose of conducting its business operations shall be deemed
conclusively to  establish that said
Tenant Improvements have been completed in accordance with the Approved Plans
and Specifications and that the Premises are in good and satisfactory
condition, as of when possession was so taken. 
Notwithstanding the foregoing, Tenant and/or Tenant’s vendors or
subcontractors may enter and occupy the Premises for the purpose of installing
fixtures and equipment during the thirty (30) day period prior to the
Commencement Date and such occupancy shall not be deemed to be taking occupancy
for the purposes of conducting Tenant’s business operations.  Landlord agrees to use commercially
reasonable efforts to complete all punchlist items identified by Tenant within
thirty (30) days after the date the subject punchlist is provided to
Landlord.  Furthermore, Landlord
acknowledges and agrees that it shall require the Tenant Improvements
contractor to provide Landlord with a one (1) year warranty on all materials
and workmanship utilized in connection therewith.  Although Landlord shall not warrant such
items to Tenant, Landlord does agree to (i) procure a foresaid one (1) warranty
as to workmanship materials and (ii) take any and all reasonable actions
necessary to enforce such warranty against said Tenant Improvement contractor
in the event and to the extent any of such workmanship and/or materials is
found to be defective during said one (1) year. 
Tenant acknowledges that no representations as to the repair of Premises
have been made by Landlord, unless such are expressly set forth in this Lease.

2.04. 
Intentionally Deleted

2.05. 
Provided the Tenant is not then in default under this Lease beyond any
applicable notice and cure period, Tenant shall have the option to renew this
Lease as to the entire Premises for one (1) five (5) year term, such term
commencing upon the expiration of the then current term hereof (the “Renewal
Option”).  Tenant shall exercise the
Renewal Option by giving Landlord one hundred twenty (120) days advance written
notice of such election prior to the expiration of the original term.  The rental rate for the Renewal Option term
shall be ninety-five percent (95%) of the then prevailing market rental rate
received by landlords of comparable space in the Norcross, Georgia area at the
time of exercise of subject Renewal Option. 
The then prevailing market rental rate (hereinafter “fair market rent”)
shall be determined as follows:

(a)   If the parties are unable to agree on the fair market rent within
fifteen (15) days of the date of Tenant Renewal Option election notice, then
each party may, at its election at its own cost and by giving notice to the
other party each  appoint an MAI real
estate appraiser with at least five (5) years full-time commercial appraisal
experience in the geographical area in which the Premises are located, to
appraise the then fair market rent.  If a
party does not appoint an appraiser within ten (10) days after the other party
has given notice of the name of its appraiser, the single appraiser appointed
shall be the sole appraiser and shall set the fair market rent as provided
herein.  For purposes of this Lease, “fair
market rent” shall be deemed to mean the amount of rental which would typically
be paid by a tenant under a lease such as this for premises of a similar type,
size, design and quality in the same area under market leasing conditions
existing at that time, including rent concessions and tenant improvements being
offered on comparable properties.

(b)   The two appraisers appointed by the parties shall meet promptly
and attempt to appraise and set the then fair market rent.  If they are unable to agree within twenty
(20) days after the second appraiser has been appointed, they shall attempt to
select a third

 4
 

 

appraiser meeting the qualifications stated
in this paragraph, within ten (10) days after the last day the two appraisers
are given to set the fair market rent. 
If they are unable to agree on a third appraiser, either of the parties
to this Lease, by giving ten (10) days notice to the other party, may apply to
the presiding or head judge of the court for Gwinnett County for the selection
of a third appraiser who meets the qualifications stated in this paragraph.  Each of the parties shall bear one-half of
the cost of appointing the third appraiser, and of paying the third appraiser’s
fees.  The third appraiser, however
selected, shall be a person who has not previously acted in any capacity for
either party.

(c)   Within twenty (20) days after the selection of the third
appraiser, a majority of the appraisers shall appraise and set the fair market
rent.  If a majority of the appraisers
are unable to so set the fair market rent within the stipulated period of time,
the three appraisals of same shall be added together and their total divided by
three.  The resulting quotient shall be
considered the fair market rent.  If,
however, the low appraisal and/or the high appraisal are more than ten percent
(10%) lower or higher than the middle appraisal. the low appraisal and/or the
high appraisal shall be disregarded.  If
only one appraisal is disregarded, the remaining two appraisals shall be added
together and their total divided by two. 
The resulting quotient shall be considered the fair market rent.

2.06. 
Intentionally Deleted.

2.07. 
Landlord grants to Tenant an ongoing Right of First Refusal on the
contiguous adjacent 4,944 RSF of space. 
In the event Landlord receives an offer from a third party prospective
tenant for such space and if Landlord is willing to accept the offer, then
Landlord shall provide Tenant with written notice detailing the terms of the
offer and Tenant shall then have ten (10) business days to give Landlord
written notice of its intent to exercise its Right of First Refusal.  Landlord and Tenant within five (5) business
days of acceptance shall execute an amendment to the Lease reflecting the such
addition of space to the Lease.  Such
space shall be incorporated into the Premises on all of the same terms and
conditions as the Premises including a prorata share of the Tenant Improvement
Allowance and any concessions offered to the third party. If Landlord has not
received timely written notice from Tenant of acceptance of the offer, Tenant
shall lose all rights to the space as to that prospective tenant and Landlord
shall be free to enter into a lease with the prospective tenant.  However, in the event Landlord fails to enter
into a lease with the subject prospective tenant, then, Tenant shall have an
ongoing Right of First Refusal with respect to any subsequent prospective
tenant.

2.08. 
Intentionally Deleted

2.09. 
Intentionally Deleted.

3.             Rental.

3.01. 
Tenant shall pay to Landlord throughout the term of this Lease, as
rental for the Premises, the following sums:

(a)   The Base Rental payable per month shall be one-twelfth  (1/12th) of the product of (i) the number of
square feet of Rentable Area of the Premises as specified in the

 5
 

 

Basic Lease Information, and (ii) the
applicable square foot rate specified in the Basic Lease Information as the “Base
Rental.” Provided, however, that Base Rental (but not Additional Rent) shall be
waived for the first 5 months of the Term and 50% of Base Rental (but not
Additional Rent) Tenant shall continue to pay Tenant’s Percentage Share of Operating
Expenses as set forth in Paragraph 3.01 (b) below, which Operating Expenses
shall include proportionate common area maintenance, Insurance Expenses and
Real Estate Taxes for the Premises.

(b)   In addition to the Base Rental payable pursuant to subparagraph
3.01(a), for each calendar year of the term of this Lease, Tenant, as
Additional Rental, shall pay Tenant’s Percentage Share, as specified in the
Basic Lease Information, of each of (i) the Common Area maintenance and
operation expenses (the “CAM Expenses”) and (ii) Landlord’s Real Estate Taxes
and Insurance Expenses for such calendar year. 
CAM Expenses shall include all verifiable, reasonable third party costs
of Landlord in the operation, management, and maintenance of the Common Area,
the manner and expenditures thereof to be in the reasonable discretion of
Landlord, generally consistent with comparable properties in the Atlanta Area
and shall specifically include all management fees paid to Landlord’s affiliate
that manages the Premises.  Such CAM
Expenses shall include, but shall not be limited to, expenses incurred for
water, sewer, gas and all other utilities, landscape maintenance and
irrigation, trash dumpsters, general maintenance and services, lighting,
painting, cleaning, policing, inspecting, repair and replacement, management
fees, together with a reasonable allowance for overhead and depreciation of
necessary equipment.  In relation to the
foregoing, Landlord acknowledges and agrees that the management fees it may
charge as a component of CAM Expenses shall not exceed three percent (3%) of
the gross revenues it receives from leases for space within the Building.  Prior to the commencement of the term of this
Lease, Landlord shall give Tenant written notice of Landlord’s estimate of the
amount of Additional Rental per month payable pursuant-to this subparagraph
3.01 (b) for the period from the commencement of the term of this Lease through
the immediately following December and Tenant shall commence such monthly
payments of Additional Rent.  Thereafter,
the Additional Rental payable pursuant to this subparagraph 3.01(b) shall be
determined and adjusted in accordance with the provisions of subparagraph 3.02.

3.02. 
The determination and adjustment of Additional Rental contemplated under
subparagraph 3.01(b) shall be made in accordance with the following procedures:

(a)   During December of each calendar year during the term of this
Lease or as soon after each such December as practicable, but in no event later
than April 1 of the following year, Landlord shall give Tenant written notice
of its estimate of Additional Rental payable under subparagraph 3.01(b) for the
ensuing calendar year.  On or before the
first day of each month during the ensuing calendar year, Tenant shall pay to
Landlord one-twelfth (1/12th) of such estimated amount together with the Base
Rental.

(b)   In the event Landlord’s notice set forth in subparagraph 3.02(a)
is not given in December, until the calendar month after such notice is
delivered by Landlord Tenant shall continue to pay to Landlord monthly during
the ensuing calendar year estimated payments equal to the amounts payable
during the calendar year just ended. 
Upon receipt of any such post-December notice, Tenant shall (i) commence
as of the immediately following calendar month, and continue for the remainder
of the calendar year, to pay to Landlord monthly such new

 6
 

 

estimated payments and (ii) if the monthly
installment of the new estimate of such Additional Rental is greater than the
monthly installment of the estimate for the previous calendar year, pay to
Landlord within thirty (30) days of the receipt of such notice an amount equal
to the difference of such monthly installment multiplied by the number of full
and partial calendar months of such year preceding the delivery of such notice.

(c)   If at any time or times it appears to Landlord that the amount
payable under subparagraph 3.01(b) for the current calendar year will vary from
Landlord’s estimate by more than five percent (5%), Landlord may revise, by
notice to Tenant, its estimate for such year, and subsequent payments by Tenant
for such year shall be based upon such revised estimate.  Failure to deliver an estimate of Additional
Rental payable under this Paragraph 3 or to make a revision contemplated by the
immediately preceding sentence shall not prejudice Landlord’s right to collect
the full amounts of Additional Rental.

(d)   Within one hundred fifty (150) days after the close of each
calendar year, Landlord shall deliver to Tenant a statement of the adjustment
to be made pursuant to subparagraph (b) for the calendar year just ended
certified by Landlord.  Landlord’s
failure to provide a statement of adjustment within one hundred and fifty (150)
days following the end of a calendar year shall constitute Landlord’s waiver of
its right to receive payment from Tenant of any deficiency in Additional Rental
for such calendar year.  If on the basis
of such statement Tenant owes an amount that is less than the estimated
payments for the calendar year just ended previously made by Tenant, Landlord
shall credit such excess to the next payments of Rental coming due or, if the
term of this Lease is about to expire, refund such excess to Tenant if Tenant
is not in default under this Lease (in the instance of a default such excess
shall be held as additional security for Tenant’s performance, may be applied
by Landlord to cure any such default, and shall not be refunded until any such
default is cured).  If on the basis of
such statement which was timely given Tenant owes, an amount that is more than
the estimated payments for the calendar year just ended previously made by
Tenant, Tenant shall pay the deficiency to Landlord within thirty (30) days
after delivery of the statement.

(e)   For partial calendar years during the term of this Lease, the
amount of Additional Rental payable pursuant to subparagraph 3.02(d) that is
applicable to that partial calendar year shall be prorated based on the ratio
of the number of days of such partial calendar year falling during the term of
this Lease to 365.  The expiration or
termination of this Lease shall not affect the obligations of Tenant and rights
of Landlord pursuant to subparagraph 3.02(d) which remain to be performed after
such expiration or termination, Landlord and Tenant agreeing that said
obligations and rights shall survive such expiration or termination.

(f)    Landlord shall permit Tenant, at its sole cost and expense upon
at least ten (10) days’ prior written notice to have an audit made of Landlord’s
books, records and accounts relative to CAM Expenses.  Such inspection shall be made on such date
and time reasonably set by Landlord in Landlord’s office during normal business
hours.  Notwithstanding anything to the
contrary contained herein, Tenant or Tenant’s authorized representative may
conduct an audit no more than one (1) time during any lease year period.  If the examination made by Tenant discloses a
discrepancy in the CAM Expenses charged to Tenant, Tenant shall contest shall
charge within thirty (30) days after Tenant’s completion of examination of the
CAM Expenses.  In the event that Tenant
does not provide written notice to Landlord of

 7
 

 

Tenant’s intent to dispute or contest such
CAM Expenses within the thirty (30) day period, Tenant waives the right to
dispute or contest the CAM Expenses.

(g)   The following items shall be excluded in computing Tenant’s share
of CAM Expenses:

(i)            Any ground lease rental;

(ii)           Cost of capital repairs or capital replacement, capital
improvements and equipment; except for the annual amortization of such costs
which either reduce the annual CAM expenses otherwise anticipated to be
incurred (but only to the extent of such reduction) or cause the Building to be
in compliance with any legal requirement which was not applicable to the
Building as of the Commencement Date;

(iii)          Costs incurred by Landlord for the repair or replacement of
damage to the Building or its contents caused by fire or other casualty;

(iv)          Costs incurred with respect to the installation of tenant
improvements made for tenants or other occupants in the Building;

(v)           Depreciation, amortization, lender’s fees and interest
payments;

(vi)          Leasing commissions, attorneys’ fees, space planning costs,
and other costs and expenses in connection with negotiations with this Lease
and other present or ‘prospective tenants or other occupants of the Building;

(vii)         Interest, principal, points and fees on debts or
amortization on any mortgage or mortgages or any other debt instrument
encumbering the Building;

(viii)        Cost incurred in connection with upgrading the Building to
comply with handicap, hazardous material, building, fire and safety codes which
were in effect prior to the date of the Lease;

(ix)           Costs to repair defects in, or maintain the structural
portions of the Building or of any of the Tenant Improvements installed by
Landlord on the Premises;

(x)            Costs (including all related attorneys and costs of
settlement judgments, any payments in lieu thereof) arising from claims,
disputes or potential disputes between Landlord and Tenant and other tenants of
the Building; and

(xi)           Landlord’s general corporate overhead and general and
administrative expenses;

(xii)          Costs of an items for which Landlord is reimbursed by
insurance proceeds actually received, or would have been reimbursed but for Landlord’s
failure to obtain the insurance required of Landlord under this Lease.

 8

 

(xiii)         Any and all costs arising from the presence of hazardous
materials or substances (as defined by the applicable Federal, State and local
laws) now or hereafter pertaining to the Building (“Hazardous Substances”) in
or about the Building including, without limitation, Hazardous Substances in
the ground water or soil except for any such items which are the responsibility
of Tenant.

Notwithstanding any other provision contained herein
to the contrary, Landlord acknowledges and agrees that for the purposes of
determining Additional Rent, CAM Expenses for any calendar year shall not be
increased over the amount of the annualized CAM Expenses during the calendar
year in which the term of this Lease commences by more than five percent (5%)
per year on a cumulative basis, compounded annually.  For example, if the annualized CAM Expenses
charged to Tenant during the calendar year in which the term of this Lease
commences was $5,000, the cap on the CAM Expense charged to Tenant for the
fourth (4th) full calendar year thereafter would be $6,077.54 (5,000 x 1.05 x
1.05 x 1.05 x 1.05).  Furthermore, in no
event shall the annualized CAM Expenses charged to Tenant during the first
calendar year of the Lease Term exceed $1.40 per square foot of Rentable Area
of the Premises.

3.03. 
Base Rental and Additional Rental shall be paid to Landlord, in advance,
on or before the first day of the term hereof and on or before the first day of
each and every successive calendar month thereafter during the term of this
Lease.  All other Rental shall be paid as
provided elsewhere in this Lease.  In the
event the term of this Lease commences on a day other than the first day of a
calendar month or ends on a day other than the last day of a calendar month,
then the monthly rental for the first and last fractional months of the term
hereof shall be appropriately prorated.

3.04. 
Rental shall be paid to Landlord, without demand, deduction or offset
except as expressly provided for in this Lease, in lawful money of the United
States of America at Landlord’s address for notices hereunder or to such other
person or at such other place as Landlord may from time to time designate in
writing.  All Rental and other amounts of
money payable by Tenant to Landlord under this Paragraph 3 or under this Lease,
if not paid within ten (10) days of Tenant’s receipt of written notice that
same is past due shall be subject to a late fee of two percent (2%) of the
amount past due (which late fee represents an agreed upon charge for the
administrative expense suffered by Landlord as the result of such late payment
and not payment for the use of money) and shall bear simple interest from that
date which is thirty (30) days following the subject due date until paid at the
Default Rate, and Tenant agrees to pay said late fee and interest immediately
and without demand.

4.             Use.

(a)   The Premises shall be used for the Permitted Use set forth in the
Basic Lease Information and for no other purpose.  By entry hereunder.  Tenant accepts the Premises as being suited
for the use intended by Tenant.

(b)   Tenant shall, subject to the Rules and Regulations of Landlord,
have access with all other tenants of Landlord to the Common Area and agrees
not to interfere with the use and access of the Common Area by other occupants
of the Building.

 9
 

 

(c)   Tenant will permit no lien to attach or exist against the
Premises, and shall not commit any waste.

(d)   Tenant shall comply with all governmental laws, ordinances and
regulations applicable to Tenant’s specific use of the Premises, and shall
promptly comply with all governmental orders and directives for the correction,
prevention and abatement of nuisances in or upon, or connected with the
Premises, all at Tenants sole expense. 
Notwithstanding the provisions of this Paragraph 4, except as may be
required under Section 45 hereof, Tenant shall not be obligated to comply with
any applicable statutes, ordinances, rules, regulations, orders, restrictions
or other requirements that may require structural alternations, structural
changes, structural repairs or structural additions to the Premises or that may
require installation of additional fire or safety hazard apparatus unless same
are required as a result of or are otherwise due to (i) Tenant’s specific use
of the Premises as compared with other typical office tenants in general, (ii)
damage to the Premises caused by Tenant or those for whom Tenant is responsible
at law, or (iii) any alterations or additions to the Premises requested by
Tenant following the Commencement Date. 
In relation to the foregoing, Landlord acknowledges and agrees that
except as expressly provided for herein to the contrary, Landlord shall at its
sole cost and expense make all alterations, change, repairs or additions that
are required to the Premises or Building to comply with applicable laws,
ordinances and regulations.  Tenant shall
not permit any objectionable or unpleasant odors, smoke, dust, gas, noise or
vibrations to emanate from the Premises, nor take any other action which would
constitute nuisance or would unreasonably disturb or endanger any other tenants
of the Building or unreasonably interfere with their use of their respective
premises.  Subject to the provisions of
Paragraph 20 hereof, without Landlord’s prior written consent, Tenant shall not
receive, store or otherwise handle any product, material or merchandise which
is explosive, highly flammable or constitutes a Hazardous Substance, as defined
in Paragraph 20 hereof.  Tenant will not
permit the Premises to be used for any purpose or in any manner (including,
without limitation, any method of storage) which would render the insurance
thereon void or he insurance risk more hazardous or cause the State Board of
Insurance or other insurance authority to disallow any sprinkler credits.  If any increase in the fire or extended
coverage insurance premiums paid by Landlord or other tenants for the Building
is caused by Tenant’s use and occupancy of the Premises, or if Tenant vacates
the Premises and causes an increase in such premiums, then Tenant shall pay as
additional rental the amount of such increase to Landlord.

5.             Services.

5.01. 
Landlord, without cost to Tenant, shall maintain in good order and
repair, subject to normal wear and tear, casualty and condemnation, the roof
and roof membrane, the exterior walls, foundation and structural components of
the Building as well as all sewer facilities, plumbing and electrical systems
(excluding however, those portions of said sewer facilities and plumbing and
electrical systems located within the Premises and other portions of the
Building leased to other tenants and which are maintained by such other
tenants).  In addition, Landlord agrees
to maintain and keep clean the Common Area to a standard in keeping with
first-class office projects in the Norcross, Georgia area.  Notwithstanding the foregoing obligation, the
cost of any repairs or maintenance to the foregoing necessitated by the
intentional acts or omissions, negligence or gross negligence of Tenant, or its
agents, employees,

 10
 

 

contractors, invitees, licensees, subtenants or assignees, shall be
deemed Rental hereunder and shall be reimbursed by Tenant to Landlord upon
demand.

5.02. 
Landlord agrees to provide at its cost water, sewer, electrical and
telephone service connections stubbed out to the exterior demising walls of the
Premises in accordance with Exhibit G; Tenant agrees to pay directly to the
provider (except as otherwise set forth below) all charges, fees (hook-up,
installation and the like) and deposits incurred for any utility services used
on the Premises.  Landlord shall in no
event be liable for any interruption or failure of utility service to the
Premises, but, if requested by Tenant, Landlord shall use reasonable efforts to
cooperate with Tenant in securing speedy resumption of said interrupted service.  Notwithstanding the foregoing, excepting “force
majeure”, in the event any interruption of services occurs which materially
adversely affects the conduct of Tenant’s business operations. and such
interruption continues for more than five (5) consecutive business days after
Tenant gives written notice thereof to Landlord, then, in such event, the
Rental due hereunder shall be abated for the period beginning on that date
which is the date of such notice and shall continue until such interrupted utility
is restored; provided, however, in the event Tenant continues to use any
portion of the Premises during such period, then, in such event, the abatement
of Rental during such period shall be prorated based on the square footage of
that portion of the Premises not in use by Tenant versus the total square
footage of the Premises.  Tenant shall
promptly notify the proper public authorities and utility companies to provide
service for water, sewer, gas, electricity and all other utilities required or
desired by Tenant, which services are to be in Tenant’s name and all costs for
such services shall be borne by Tenant as its sole responsibility.  In the event the water and sewer connections
into the Premises are jointly metered with other premises, Tenant covenants and
agrees to pay to Landlord on a monthly basis as additional rent, its pro rata
share of such services as determined by Landlord in its reasonable
discretion.  Unless the same is caused by
the negligent action or inaction of Landlord, Landlord shall not be liable to
Tenant or to any other person for any damage occasioned by failure in any
utility system or by the breakage of any vessel or pipe in or about the
Premises, or for any damage occasioned by water coming into the Premises or
arising from the acts or omissions of occupants of adjacent property or the
public.  Landlord agrees to provide
overall property management services for the Building consistent with property
management services for comparable single story first-class office buildings in
the Norcross, Georgia market.

6.             Personal Property Taxes.

6.01. 
Tenant covenants and agrees to be liable for and pay in a timely manner
alt taxes and assessments levied or assessed against personal property,
furniture and fixtures placed by Tenant in the Premises.  In addition to Base Rental, Additional Rental
and other charges to be paid by Tenant hereunder, Tenant shall reimburse
Landlord upon demand, as Rental, for any and all taxes payable by Landlord
(other than net income taxes) whether or not now customary or within the
contemplation of the Parties hereto: (a) upon, measured by or reasonably
attributable to the cost or value of Tenant’s equipment, furniture, fixtures
and other personal property located in the Premises or by the cost or value of
any improvements made in or to the Premises by Tenant, other than Tenant
Improvements made by Landlord, if any, regardless of whether title to such
improvements shall be in Tenant or Landlord: upon or measured by the monthly
rental payable hereunder. including, without limitation, any gross income tax
or excise tax levied by any governmental entity of any other governmental
body  with respect to the receipt of such

 11
 

 

rental: (a) upon or with respect to the possession, leasing, operation.
management, maintenance, alteration, repair, use or occupancy by Tenant of the
Premises or any portion thereof; (b) upon this transaction or any document to
which Tenant is a party creating or transferring an interest in the
Premises.  In the event that it shall not
be lawful for Tenant so to reimburse Landlord, the monthly Base Rental Payable
to Landlord under this Lease shall be revised to net Landlord the same net Base
Rental after imposition of any such tax upon Landlord as would have been
payable to Landlord prior to the imposition of any such tax.

7.             Alterations.

7.01. 
Except for any initial improvements of the Premises pursuant to Exhibit “G”
hereof, which shall be governed by the terms and conditions of Exhibit G
hereof, Tenant shall not make, suffer or permit to be made any alterations,
additions or improvements to or of the Premises or any part thereof, or attach
any fixtures or equipment thereto, without first obtaining Landlord’s written
consent. such consent to be given or withheld by Landlord in Landlord’s
reasonable discretion, provided that Tenant may undertake an alteration or
improvement project costing $20,000.00 or less without first obtaining Landlord’s
written consent.  Any such alterations,
additions or improvements to the Premises shall be at Tenant’s sole cost and
expenses and shall be made by Tenant, or by a contractor of Tenant approved in
advance by Landlord, which approval will not be unreasonably withheld or
delayed.  The Tenant Improvements and all
such alterations, additions and improvements shall become Landlord’s property
at the expiration or earlier termination of the term hereof and shall remain on
the Premises without compensation to Tenant unless Landlord elects by notice to
Tenant at or before the time of installation to have Tenant remove such alterations,
additions and improvements, in which event, notwithstanding any contrary
provisions respecting such alterations, additions and improvements contained in
paragraph 9 hereof, Tenant shall promptly restore, at its sole cost and
expense, the Premises to its condition prior to the installation of such
alterations, additions and improvements, normal wear and tear excepted.

7.02. 
All repairs, alterations, additions and improvements done by Tenant
within the Premises shall be performed in a good and workmanlike manner, in
compliance with all governmental requirements and at such times and in such
manner as will cause a  minimum of
interference with other construction in progress and with the transaction of
business in the Building.  Whenever
Tenant proposes to do any construction work within the Premises which requires
Landlord’s prior consent, Tenant shall first furnish to Landlord plans and
specifications covering such work in such detail as Landlord may reasonably
request.  Such plans and specifications
shall comply with such reasonable requirements as Landlord may from time to
time prescribe for construction within the Building.  In no event shall any such construction work
requiring Landlord’s approval be commenced within the Premises without Landlord’s
prior written approval of such plans and specifications, such approval not to
be unreasonably withheld or delayed. 
Once Landlord has received Tenant’s plans and specifications, Landlord
shall approve or disapprove within five (5) days.  In the case of disapproval, Landlord shall
state the specific reason(s) for such disapproval.  In the event Tenant does perform any such
construction work requiring Landlord’s approval without the prior written
approval of Landlord, Landlord shall, in addition to all other remedies it
might have hereunder or at law, have the right to require Tenant to immediately
remove any unapproved additions or improvements and restore the Premises to the
condition existing prior to such unauthorized construction normal wear and tear

 12
 

 

excepted.  Without limiting the
generality of the foregoing, Tenant shall under no circumstances make any
penetration of the roof or walls of the Building without Landlord’s consent,
which consent may be given or withheld by Landlord in its reasonable discretion.  In the event Landlord consents to a
penetration of the roof or walls of the Building, all such work shall be
performed by contractors designated or approved by Landlord in its reasonable
discretion and shall be supervised by Landlord or its designees and performed
under conditions and subject to such conditions and requirements as may be
reasonably established by Landlord. 
Tenant shall and hereby agrees to indemnify hold Landlord harmless from
and against any and all loss, cost, damages, expenses or liability (including,
without limitation, court costs and reasonable attorneys’ fees) suffered or
incurred by Landlord as a result of any penetration of the roof or walls of the
Building, including, without limitation, costs of repair, loss of income, claims
for damages from other tenants of the Building and damages which result if any
warranty on the roof held or maintained by Landlord is voided or impaired by
such penetration.  The provisions hereof
shall survive the termination of this Lease.

7.03. 
Under no circumstances may Tenant penetrate the roof, roof membrane or
floor slab of the Building without Landlord’s prior written consent, which
consent may be given or withheld by Landlord in its reasonable discretion.  Tenant shall hold harmless Landlord from any
loss, liability, any expenses arising out of such damage or repair caused by
Tenant’s negligence or failure to comply with this paragraph.

8.             Liens.

Tenant shall at all times keep the Premises and the
Building free from any known liens arising out of any work performed, materials
furnished or obligations incurred by Tenant. 
Landlord shall have the right to post and keep posted on the Premises
any notices that may be provided by law or which Landlord may deem to be proper
for the protection of Landlord, the Premises and the Building from such liens.

9.             Repairs.

Subject to the provisions of Section 2.03 hereof, by
entry hereunder unless Tenant provides Landlord with written notice to the
contrary at the time of such entry, Tenant accepts the Premises as being in the
condition in which Landlord is obligated to deliver the Premises.  Except as expressly set forth below, to the
fullest extent permitted by law, Tenant hereby waives all rights to make
repairs at the expense of Landlord-as may be provided by any law, statute or
ordinance now or hereafter in effect. 
Landlord has no obligation and has made no promise to alter, remodel,
improve, repair, decorate or paint the Premises or any part thereof, except as
specifically and expressly herein set forth. 
No representations respecting the condition of the Premises or the
Building have been made by Landlord to Tenant, except as specifically and
expressly herein set forth.

(a)   Landlord shall use reasonable efforts to satisfy its repair
maintenance obligations as set forth herein in a diligent and timely manner
and, in any event within thirty (30) days from the date Landlord receives
written notice that such repairs or maintenance are necessary or such shorter
period as may be necessary under the circumstances in the event of any
emergency.  Notwithstanding any other
language contained herein to the contrary,. 
Landlord

 13
 

 

acknowledges and agrees that, in the event
either (i) Landlord fails to perform its maintenance or repair obligations
under this Lease within thirty (30) days of its receipt of notice from Tenant,
or (ii) Landlord, after commencing such performance. thereafter fails to
diligently and continuously pursue the completion of same, then in either such
event, Tenant shall have the right to cure Landlord’s  nonperformance and charge Landlord for Tenant’s
reasonable actual out of pocket cost thereof. 
Furthermore, in addition to the rights set forth above, in the event of
an emergency and immediate repairs are needed to elements for which Landlord is
responsible under this Lease in order to prevent imminent damage or injury to
Tenant’s employees, property or business operations, then, under such
circumstances, if Landlord has failed to commence and thereafter diligently
pursue such repairs within a reasonable period following its receipt of Tenant’s
notice of the need thereof (which notice of an emergency may be by telephone,
and the reasonableness of said period to be determined based upon the attendant
facts and circumstances), Tenant shall have the right to cure Landlord’s
nonperformance and charge Landlord Tenant’s reasonable actual out of pocket
cost thereof.  In relation to the
foregoing, Tenant acknowledges and agrees that even as to emergency repairs,
Tenant’s notice to Landlord shall be in writing, if possible and, if not
possible, may be oral, provided written confirmation of same is provided to
Landlord within a reasonable period thereafter. 
In relation to the above, Landlord acknowledges and agrees that in the
event Tenant incurs costs or expenses as a result of its election to utilize
its self help remedy set forth above, and such amounts are not reimbursed by
Landlord to Tenant within thirty (30) days of demand therefor, Tenant shall
have the right to deduct same from any installments of monthly Base Rental
payable by Tenant under this Lease.  Such
deduction by Tenant shall not be deemed a breach of Tenant’s covenant to pay
rent.

9.02.

(a)   From and after the Commencement Date and throughout the term,
Tenant shall, at its own cost and expense, maintain the interior of the
Premises, in good condition and repair, including but not limited to the
electrical systems, heating, air conditioning and ventilation systems serving
the Premises, plate glass, windows and doors, sprinkler and plumbing systems, fixtures,
interior walls, floors, ceilings, all electrical facilities and equipment
including, without limitation, lighting fixtures, lamps, fans, and any exhaust
equipment and systems, electrical motors, and all other appliances and
equipment of any kind located in, upon or about the Premises.  Notwithstanding the foregoing, if Landlord or
its agents or contractors are responsible for damage to any items for which
Tenant has maintenance and repair obligations hereunder, then, Landlord shall
be responsible for such repairs at its own costs and expense.  Landlord agrees to use commercially
reasonable efforts to provide Tenant the benefit of any warranties applicable
to any utility systems serving the Premises. 
Except as described below, all glass. exterior and interior, is at the
sole risk of Tenant: and any broken glass shall be promptly replaced at Tenant’s
expense by glass of like kind, size and quality.  If such glass is damaged or broken because of
manufacturing or installation defects or because of Landlord’s negligence or
intentional acts (or Landlord’s employees, agents or contractors) or building
settling, then the repair of such damage shall be the responsibility of
Landlord.

(b)   Tenant agrees to enter into a service contract with a reliable
certified heating and air conditioning company acceptable to Landlord, in its
reasonable discretion, to maintain the heating and air conditioning units
serving the Premises and keep them in good working order.  Tenant shall furnish Landlord a copy of the
service contract and, upon request of

 14
 

 

Landlord, Tenant shall also furnish copies of
routine maintenance reports or invoices. 
Tenant shall be responsible for pest and termite control and for the
maintenance of the sprinkler valves and any alarm systems in the Premises.  Tenant shall not damage any demising wall or
disturb the integrity and support provided by any demising wall and shall, at
its sole cost and expense, promptly repair any damage or injury to any demising
wall caused by Tenant or its employees, agents or invitees.

(c)   Tenant shall not allow any damage to be committed on any portion
of the Premises, and at the termination of this Lease, by lapse of time or
otherwise, Tenant shall deliver the Premises to Landlord in as good condition
as existed at the Commencement Date of this Lease, ordinary wear and tear and
casualty and condemnation excepted.  The
cost or expense of any repairs necessary to restore the condition of the
Premises shall be borne by Tenant, and if Landlord undertakes to restore the
Premises it shall have a right of reimbursement against Tenant.

(d)   All requests for repairs or maintenance that are the
responsibility of Landlord pursuant to any provision of this Lease must be made
in writing to Landlord at the address set forth below in the Basic Lease
Information.

10.           Destruction or Damage.

10.01. 
Destruction or Damage In the event the Premises or the portion of the
Building necessary for Tenant’s occupancy are damaged by fire, earthquake, act
of God. the elements or other casualty, Landlord shall promptly furnish Tenant
(but in no event later than thirty (30) days after the date of such damage)
with the written opinion of Landlord’s architect, contractor or construction
consultant as to their estimate of the time frame required for the completion
of all necessary repairs and restoration work. 
If it is the opinion of such architect, contractor or construction
consultant that such repairs can be made within one hundred fifty (150) days
following the date of such fire or other casualty, then, subject to the
provisions of this Paragraph 10 hereinafter set forth, Landlord shall promptly
commence to diligently pursue to complete such repairs.  Notwithstanding any other provision contained
in this Paragraph, the commencement of repair or restoration work by Landlord
hereunder shall in no event be deemed a representation or warranty by Landlord
that such repairs or restoration can or will in fact be completed within such
one hundred fifty (150) day period and Landlord shall in no event be liable to
Tenant for any failure or inability to complete said repairs or restoration
within such one hundred fifty (150) day period; provided, however, except with
respect to a restoration of the Premises performed by Landlord pursuant to
Section 10.02 hereof, in the event that the Premises are not so repaired or
restored within one hundred fifty (150) days after the date of such fire or
other casualty, Tenant shall have the right, by written notice to Landlord, to
terminate this Lease and all rent and other sums payable by Tenant hereunder
shall be accounted for as between Landlord and Tenant as of that date.  This Lease shall remain in full force and
effect except that an abatement of Base Rental and Additional Rental shall be allowed
Tenant for such part of the Premises as shall be rendered unusable by Tenant in
the conduct of its business during the time such part is so unusable.  A total destruction of the Building shall, at
the option of Landlord, automatically terminate this Lease as of the date of
such destruction.

 15
 

 

10.02. 
If such repairs cannot, in Landlord’s opinion (as supported by the
required architect’s, contractor’s or construction consultant’s written
opinion), be made within one hundred fifty (150) days following the date of
such fire or other casualty, Landlord or Tenant may elect to terminate this
Lease, upon written notice to the other party within forty-five (45) days after
the date of such fire or other, and, if this Lease is not so terminated,
Landlord shall  promptly commence to
repair or restore such damage. in which event this Lease shall continue in full
force and effect, but the Base Rental and Additional Rental shall be partially
abated as provided in subparagraph 10.01. 
If Landlord does not so elect to make such repairs, Landlord agrees to
use all reasonable efforts to complete such repairs in a commercially
reasonable period of time following the date of such fire or other casualty.

10.03. 
Notwithstanding anything to the contrary in this Lease, if the holder of
a “Landlord’s Mortgage” or the lessor under a “Landlord’s Ground Lease” (as
those terms are defined in Paragraph 28) require that any material portion of
the insurance proceeds from a casualty loss be paid to it, then Landlord shall
have the option to cancel this Lease as of the date of the casualty by written
notice to Tenant given within thirty (30) days after said holder or lessor
notifies Landlord that it is collecting such material portion of the insurance
proceeds.

10.04. 
If the Premises are to be repaired under this Paragraph 10 by Landlord,
Landlord’s obligation to repair the Premises shall be discharged upon
restoration of the Premises to condition reasonably comparable to that existing
immediately prior to the of the casualty event (except with respect to
improvements installed by Tenant or at Tenant’s sole cost).  Tenant shall pay all other costs of repairing
the Premises and shall be responsible for carrying such casualty insurance with
respect to such other Tenant improvements as set forth in Paragraph 11 hereof.

10.05. 
In the event the Premises are damaged by fire, earthquake, act of God,
the elements or other casualty within twelve (12) months of-the last day of the
Lease term and (i) in the reasonable opinion of Landlord’s architect or
construction consultant, the restoration of the Premises cannot be
substantially completed within sixty (60) days after the date of such damage,
and (ii) such damage renders unusable more than twenty-five percent (25%) of
the Premises, then, in such event, the Landlord or Tenant may elect to
terminate this Lease upon written notice to the other party within forty-five
(45) days after the date of such fire or other casualty and, if this Lease is
not so terminated, Landlord shall promptly commence to repair and restore such
damage, in which event this Lease shall continue in full force and effect, but
the Base Rental and Additional Rental shall be partially abated as provided for
in Paragraph 10.01.

10.06. 
Landlord acknowledges and agrees that in the event the Premises are
damaged by fire, earthquake, act of God. the elements or other casualty to such
art extent that the Premises are rendered unusable by Tenant for their intended
use and this Lease is not terminated pursuant to the provisions of this Section
10, Landlord shall use commercially reasonable efforts at no out-of-pocket
costs to Landlord to temporarily relocate Tenant into other space then owned by
Landlord during the period of restoration.

11.           Insurance.

(a)   Tenant covenants and agrees that from and after the date of
delivery of the Premises from Landlord to Tenant, Tenant will carry and
maintain, at its sole cost and

 16
 

 

expense, the following types of insurance, in
the amounts specified and in the form hereinafter provided for:

(i)            Liability Insurance in the Commercial General Liability
form (or reasonable equivalent thereto) covering the Premises and Tenant’s use
thereof against claims for personal injury or death, property damage and
product liability occurring upon, in or about the Premises, such insurance to
be written on a claims made basis, to be in combined single limit amounts not
less than Two Million Dollars ($2,000,000.00) and to have general aggregate
limits of not less than Three Million Dollars 
($3,000,000.00) for each policy year. 
The insurance coverage required under this Paragraph 11 (a)(i) shall, in
addition, extend to any liability of Tenant arising out of the indemnities
provided for in Paragraph 14 and, if necessary, the policy shall contain a
contractual endorsement to that effect.

(ii)           Insurance on the “all-Risk” or equivalent form on a
replacement cost basis against loss or damage to all improvements made by
Tenant to the Premises, excluding the Tenant Improvements, as defined in
Exhibit “G”, which shall be covered under Landlord’s policies of insurance,
(including, without in any manner limiting the generality of the foregoing,
flood insurance if the Premises are located in a flood hazard area), having a
deductible not greater than Fifty Thousand Dollars ($50,000.00); and in an
amount sufficient to prevent Landlord or Tenant from becoming a co-insurer of
any loss, but in any event in amounts not less than 100% ct the actual
replacement value of all improvements made by Tenant to the Premises as
described in this subparagraph.  Landlord
shall have the right to require from Tenant, not more than once every twelve
(12) months, to provide reasonable evidence of the value of the improvements
made by Tenant to the Premises as described in this subparagraph.

(iii)          INTENTIONALLY DELETED

(iv)          INTENTIONALLY DELETED

(v)           INTENTIONALLY DELETED

(vi)          Property insurance to cover all personal property,
equipment and fixtures at any time located in the Premises.  Such insurance shall insure against fire,
sprinkler damage, vandalism and malicious mischief and against loss or damage
by other risks now or hereafter included in the standard form of an all-risk
policy in an amount equal to the full replacement value thereof subject,
however, to a commercially reasonable deductible.

(b)   All policies of the insurance provided for in Paragraph 11(a)
shall be issued by insurers of recognized reputation and responsibility.  Each and every such policy:

(i)            Shall name Landlord’s Mortgagee, as defined in Paragraph
28, as an additional insured as respects Tenant’s acts and omissions.  In addition, the coverage described in
Paragraph 11(a) (ii) shall also name Landlord as “loss payee.”

(ii)           Shall be made available for review by Landlord (or
certificates thereof evidencing the required coverages shall be made available
for review by Landlord) and certificates thereof shall be delivered to Landlord
prior to delivery of possession of the Premises to Tenant and thereafter if
requested by Landlord within thirty (30) days after the

 17
 

 

expiration of each such policy, and, as often
as any such policy shall expire or terminate. 
Renewal or additional policies shall be procured and maintained by
Tenant in like manner and to like extent.

(iii)          Shall contain a provision that the insurer waives any right
of subrogation against Landlord an account of my loss or damage to any
property, the Premises or its contents arising from any risk covered by all
risks fire and extended coverage insurance of the type and amount required to
be carried hereunder, provided that such waiver does not invalidate such
policies or prohibit recovery thereunder.

(iv)          Shall contain a provision that the insurer will endeavor to
give to Landlord and such other parties in interest at least thirty (30) days
notice in writing in advance of any material change, cancellation, termination
or lapse, of the effective date of any reduction in the amounts of insurance.

(v)           Shall be written as primary policy which does not
contribute to and is not in excess. of coverage, which Landlord may carry.

(c)   Any insurance provided for in Paragraph 11(a) may be maintained by
means of a policy or policies of blanket insurance, covering additional items
or locations or insured; provided, however, that:

(i)            Landlord’s Mortgagee shall be named as an additional
insured thereunder as its interest may appear.

(ii)           INTENTIONALLY DELETED

(iii)          Any such policy or policies shall not limit (beyond the
aggregate policy limits) the amount of the total insurance allocated to the
Tenant’s improvements and property.

(iv)          The requirements set forth in this Paragraph 11 are
otherwise satisfied.

(d)   In the event the Tenant shall fail to carry and maintain the
insurance coverages set forth in this Paragraph 11, Landlord may upon thirty
(30) days notice to Tenant (unless such coverages will lapse in which event no
such notice shall be necessary) procure such policies of insurance and Tenant
shall promptly reimburse Landlord therefor.

(e)   Landlord may, at any time, but not more than one (1) time in any
twelve (12) month period, require a review of the insurance coverage and limits
of liability set forth in this Paragraph 11 to determine whether the coverage
and the limits are reasonable and adequate’ in the existing circumstances.  The review will be  undertaken on a date and at a time set forth
in Landlord’s notice requesting a review and shall be conducted at the
Premises.

(f)    Landlord’s Insurance. 
Landlord shall maintain insurance against loss or damage to Property and
Public Liability and Property Damage Liability Insurance as follows:

 18

 

 

(i)            Landlord
shall procure and maintain in effect with insurers of recognized reputation and
responsibility “All Risk” property insurance in an amount not less than the
100% replacement cost of the real and business personal property and loss of
rental income insurance in an amount equal to the twelve months projected
rental income without offset for any coinsurance and subject to an “Agreed
Value” form.

(ii)           Landlord
shall maintain in effect Commercial General Liability Insurance against bodily
injury and property damage losses arising out of ownership, use, control and
management of the Property, including, but not limited to, Contractual
Liability and Products & Complete Operations Liability insurance in an
amount not less than $1,000,000’ for any one occurrence and $3,000,000 in the
aggregate, Landlord shall name Tenant as an additional insured.

It is understood and agreed that the insurance
requirements contained in this Paragraph or elsewhere in this Lease or Landlord’s
or Tenant’s compliance therewith, are not intended to, and shall not be
construed to, limit, mitigate or reduce any of the indemnity obligations of
Landlord or Tenant contained in Paragraph 14 or elsewhere in this Lease.

12.           Release and Subrogation.

In addition to, and not in lieu of, any and all other
releases and waivers by Tenant and Landlord contained in this Lease, Tenant and
Landlord each hereby waives, and releases the other from any and all claims,
rights, demands and causes of action which it might have at any time against
the other on account of loss or damage that is or should be covered by any
insurance policy the waiving party has or is required to have pursuant to this
Lease.  Tenant and Landlord shall obtain
from its respective insurers under all policies of fire, theft, public
liability, workmen’s compensation and other insurance maintained by Tenant or
Landlord at any time during the term of this Lease insuring or covering the
Premises or any portion thereof or operations therein or therefrom, a waiver of
all rights of subrogation which the insurer of Tenant or Landlord might have
against  the other party and the other
affiliated parties described in Paragraph 11 hereof.  If a waiver of subrogation is not available
under a policy maintained by Tenant or Landlord, Tenant or Landlord shall cause
the other party and the other affiliated parties described in Paragraph 11
hereof to be named as additional insureds. 
Tenant and Landlord shall indemnify and hold harmless the other party
against any loss or expense, including reasonable attorney’s fees, resulting
from the failure to obtain such waiver.

13.           Tenant’s Personal Property.

All of Tenant’s personal property in the Premises
shall be and remain at Tenant’s sole risk, and Landlord shall not be liable for
and Tenant hereby releases Landlord from any and all liability for theft
thereof or any damage thereto occasioned by any acts or negligence of any third
persons, or any act of god, except to the extent caused by the acts or
negligence of Landlord, its agents, employees and contractors.

 19
 

 

 

14.           Indemnification.

14.01.  Tenant agrees that
neither Landlord nor its members, employees, agents or representatives shall be
liable and hereby waives all claims against Landlord, its members, employees,
agents and representatives for damage to any property or injury or death of any
person in, upon or about the Premises arising at any time and from any cause
other than by reason of the negligence or intentional misconduct of Landlord,
its authorized employees or agents, and Tenant shall indemnify and hold
harmless Landlord, and its partners, employees, agents and representatives from
any and all loss, cost, damage and expense incurred or suffered by Landlord or
said,- other parties to the extent arising out of or resulting from (i) the use
or occupancy of the Premises, except such as is caused by negligence or
intentional misconduct of Landlord, its authorized agents or employees, or (ii)
the misconduct or negligence of Tenant or its agents, contractors, employees,
licensees or invitees.  The foregoing
indemnity obligation of Tenant shall include reasonable attorney’s fees,
investigation costs and all other reasonable costs and expenses incurred by
Landlord from the first notice that any claim or demand is to be made or may be
made.  The provisions of this Paragraph
14 shall survive the termination of this Lease with respect to any damage,
injury or death prior to such termination.

14.02.  Landlord agrees that
neither Tenant nor its members, employees agents or representatives shall be
liable and hereby waives all claims against Tenant. its members employees.
agents and  representatives for damage to
any property or injury or death of any person in, upon or about the Premises
arising at any time and from any cause other than by reason of the negligence
or intentional misconduct of Tenant its authorized employees or agents, and
Landlord shall indemnify and hold harmless Tenant and its partners, employees,
agents and representatives from any and all loss, cost, damage and expense
incurred or suffered by Tenant or said other parties to the extent arising out
of or resulting from (i) the use or occupancy of the Premises, except such as
is caused by negligence or intentional misconduct of Tenant, its authorized
agents or employees, or (ii) the misconduct or negligence of Landlord or its
agents, contractors, employees, licensees or invitees.  The foregoing indemnity obligation of
Landlord shall include reasonable attorney’s fees, investigation costs and all
other reasonable costs and expenses incurred by Tenant from the first notice
that any claim or demand is to be made or may be made.  The provisions of this Paragraph 14 shall
survive the termination of this Lease with respect to any damage, injury or
death prior to such termination.

15.           Compliance with Legal Requirements.

Tenant shall at its sole cost and expense promptly
comply with all laws, statutes, ordinances and governmental rules, regulations
and requirements now in force or which may be hereafter in force, with the
requirements of any board of fire underwriters or other similar body now or
hereafter constituted, with any direction or occupancy certificate issued
pursuant to any law by any public officer or officers, as well as the
provisions of all recorded documents affecting the Premises, insofar as any
thereof relate to or affect the condition, use or occupancy of the Premises,
excluding requirements of structural changes not related to or affected by
improvements made by or for Tenant or not necessitated by Tenant’s acts.

16.           Assignment and Subletting.

16.01. 
Tenant shall not at any time during the term of this Lease have the
right to sublet all or any part of the Premises or assign this Lease or any
right or interest therein, without

 20
 

 

 

the prior written consent of Landlord, such consent not to be unreasonably
withheld, conditioned or delayed.  Except
as otherwise expressly set forth below, in the case of sale or transfer of a
controlling ownership interest of Tenant or a change in control of Tenant
resulting from a merger, consolidation or asset sale shall be deemed an
assignment or transfer requiring Landlord’s prior written consent which but no
Landlord approval shall be required if the resulting entity that remains as
Tenant under this Lease has a tangible net worth of at least $5 million.  Should Tenant desire to assign this Lease or
any right or interest herein or sublet the Premises or any part thereof, Tenant
shall give Landlord written notice of such desire, which notice shall contain
(1) the name and address of the proposed subtenant or assignee and its form of
organization, (2) the nature of the proposed subtenant’s or assignee’s business
to be conducted in the Premises, (3) the term and conditions of the proposed
sublease or assignment, and (4) financial statements for the proposed subtenant
or assignee and such other financial information as Landlord shall reasonably
request and a bank reference, together with a request that Landlord approve
such assignment or subletting.  Landlord
shall have a period of ten (10) days following receipt of such written notice
within which to notify Tenant in writing that Landlord elects either (A) upon
providing Tenant with a detailed explanation of Landlord’s reasons and
concerns, to deny Tenant the right to consummate such subletting or assignment
or (B) to permit Tenant to assign this Lease or sublet such space, subject,
however, to all of the following conditions:

(a)   The
sublease or assignment shall be on substantially the same terms and conditions
set forth in the notice given to Landlord. 

(b)   The
proposed assignee or sublessee shall be engaged in a business in the Premises
which is consistent with the nature of the Building and is permitted by the
provisions of Paragraph 4 hereof, and the use of the Premises or any portion
thereof by such subtenant or assignee will not, in Landlord’s reasonable
estimation, increase to an unreasonable level the scope or quantity of services
or utilities then being furnished to Tenant as of the proposed date of
assignment or subletting.

(c)   The
proposed assignee or sublessee is a respectable party of sufficient financial
worth to perform its obligations under this Lease or under the sublease, as
applicable, and Tenant shall have provided Landlord with proof thereof.

(d)   No
subletting or assignment shall release Tenant of Tenant’s obligation or alter
the primary liability of Tenant  to pay
the Rental and to perform all other obligations to be performed by Tenant under
this Lease.

(e)   INTENTIONALLY
OMITTED 

(f)    INTENTIONALLY
OMITTED 

(g)   With
the exception of assignments permitted without the consent of Landlord pursuant
to Paragraph 16.01 of this Lease, any and all options, including, without
limitation, expansion options, renewal options and rights of first refusal or
negotiation, granted pursuant to this Lease, are not assignable and shall be
null and void and of no further force or effect on and after the effective date
of such assignment of this Lease or any right or interest therein.

 21
 

 

 

(h)   Notwithstanding
the foregoing, Tenant shall have the right to assign this Lease or sublet all
or any part of the Premises without the prior consent of Landlord if all of the
following condition is satisfied:

(i)    The
assignee or subtenant is a parent company, affiliate, subsidiary or an entity
resulting from a merger or consolidation with Tenant or is an entity succeeding
to the business and assets of Tenant or is a subsidiary or affiliate of Tenant
(with affiliate being defined as defined under the current version of the
U.S.  Internal Revenue Code); and In
relation to the foregoing, Tenant acknowledges and agrees that in the event of
an assignment pursuant to this subsection 16.01(h), Tenant shall remain
primarily liable for the performance of all obligations to be performed by
Tenant under this Lease unless and except the subject assignee has a tangible
net worth of at least $10,000,000, in which event, Tenant shall be released
from its liability hereunder.

16.02.  If Landlord consents to
any such assignment or sublease, Tenant shall pay to Landlord, promptly upon
demand, a reasonable sum not to exceed $300.00 in each instance as attorney’s
fees arising incident to such transaction and no sublease or assignment shall
be valid and no one shall occupy the Premises by reason thereof until a fully
executed counterpart of the sublease or assignment has been delivered to
Landlord.  Any attempted assignment,
sublease or other action by Tenant in violation of this Paragraph 16 shall be
null and void and shall constitute an Event of Default.  Except as provided in subparagraph 16.01,
this Lease, or any right or interest hereof, shall not be assignable as to the
interest of Tenant by operation of law without Landlord’s written consent, such
consent not to be unreasonably withheld, conditioned or delayed.  The acceptance of Rental by Landlord from any
other person or entity shall not be deemed to be a waiver by Landlord of any
provision hereof.  Consent to one
assignment or subletting shall not be deemed consent to any subsequent
assignment or subletting.  In the event
of default by any assignee or successor of Tenant in the performance of any of
the terms of this Lease, Landlord may proceed directly against Tenant without
the necessity of exhausting remedies against such assignee or successor.

17.           Signs.

Signage rights will be provided on the front glass of
the Premises.  All aspects of Tenant’s
signage, including size, location, content, design and manner of attachment,
shall be subject to Landlord’s prior approval, such approval not to be
unreasonably withheld.  The actual sign
and its respective installation cost shall be at the expense of the Tenant and
shall conform to architectural covenants and all applicable laws and
ordinances, if any.  Tenant shall remove
all signs installed by Tenant at the expiration or any earlier termination of
the Lease Term.  Tenant shall be
responsible for any damage to the Building occasioned by the installation of
any such signs.  Tenant shall place no
sign, if any, upon the roof of the Premises or the Building, nor any part of
the roof, including the flashing or gutters of the Premises or the
Building.  Tenant shall repair any damage
to the Building caused by its signage, including, but not limited to,
discoloration.  Excepting “force majeure,”
Tenant shall be required to install identification signage within ninety (90) days
of the commencement, subject to the aforementioned conditions and
limitations.  Notwithstanding any other
provision contained herein to the contrary, Landlord acknowledges and agrees
that Tenant shall be entitled to install and maintain throughout the

 22
 

 

 

Lease Term signage
consistent with the signage of the tenant occupying the Premises as of the
Lease Date.  The provisions hereof shall
survive the termination of this Lease.

18.           Rules.

Tenant shall faithfully observe and comply with the
rules and regulations attached to this Lease as Exhibit “C” and made a part
hereof, and, after notice thereof, all reasonable non-discriminatory
modifications thereof and additions thereto from time to time promulgated in
writing by Landlord.  Landlord shall not
be responsible to Tenant for the nonperformance by any  other tenant or occupant of the Building of
any of said rules and regulations. 
However, Landlord shall assume responsibility for the even enforcement
among all tenants of the Building of said rules and regulations.  In the event of a conflict between the terms
of this Lease and said rules and regulations, this Lease shall control.  

19.           Entry by Landlord 

With twenty-four (24) hours’ prior notice (written or
oral) to Tenant (except in the event of an emergency where no such notice shall
be required), Landlord may enter the Premises at reasonable hours to (a)
inspect the same, (b) exhibit the same to prospective purchasers, lenders and
tenants (provided, however, Landlord’s right to enter the Premises for the purposes
of showing same to perspective tenants shall not arise until one hundred and
eighty (180) days prior to the end of the term hereof), (c) determine whether
Tenant is complying with all of its obligations hereunder, (d) supply the
services to be provided by Landlord to Tenant hereunder, (e) post notices of
nonresponsibility, and (f) make repairs required of Landlord under the terms
hereof or repairs to any adjoining space or utility services or make repairs,
alterations or improvements to any other portion of the Building; provided,
however, that all such work shall be done as promptly as reasonably possible
and so as to cause as little interference to Tenant as reasonably
possible.  So long as such entries are conducted
in accordance with the conditions of the preceding sentence, Tenant hereby
waives any claim for damages for any injury or inconvenience to or interference
with Tenant’s business, any loss of occupancy or quiet enjoyment of the
Premises or any other loss occasioned by such entry.  Landlord shall at all times have and retain a
key with which to unlock all of the doors in, on or about the Premises
(excluding Tenant’s vaults, safes, trade secret areas and similar areas
reasonably designated in writing by Tenant in advance); and Landlord shall have
the right to use any and all means which Landlord may deem proper to open said
doors in an emergency in order to obtain entry to the Premises, and any entry
to the Premises obtained by Landlord by any of said means, or otherwise, shall
not under any circumstances be construed or deemed to be a forcible or unlawful
entry into or a detainer of the Premises or an eviction, actual or
constructive, of Tenant from the Premises, or any portion thereof.  Tenant shall pay upon demand all repair costs
and expenses resulting from Landlord’s emergency entry to the Premises, but
only under circumstances where Tenant caused the subject emergency.  Landlord shall also have the right at any
time, without the same constituting an actual or constructive eviction and without
incurring any liability to Tenant therefor, to change the arrangement and/or
location of entrances or passageways. doors and doorways, stairs, or other
public parts of the Building and to change the name or number of designation by  which the Building is commonly known,
provided the same does not materially interfere with Tenant’s use of the
Premises and Landlord reimburses Tenant for costs associated with such changes.

 23
 

 

 

(a)   Notwithstanding
the provisions of Paragraph 19 above, except in the case of emergency, Landlord
shall make a reasonable attempt to notify Tenant by telephone, letter,
facsimile or other means prior to visiting the Premises, however, failure to do
so shall not constitute a default by Landlord hereunder.  In the event that Landlord should need to
enter the Premises for the purpose of making repairs, alterations or
improvements, Landlord shall schedule such work in accordance with Tenant’s
reasonable business schedule. 
Additionally, in no event other than an emergency will Landlord enter an
examining room while a patient is present, and Landlord will at all times other
than an emergency defer to the privacy expectation of Tenant’s patients at the
request and direction of Tenant.

20.           Environmental Matters.

(a)   For
purposes of this Lease:

(i)            “Contamination”
as used herein means the uncontained or uncontrolled presence of or release of
Hazardous Substances (as hereinafter defined) into any environmental media
from, upon, within, below, into or on any portion of the Premises or the
Building so as to require remediation, cleanup or investigation under any
applicable Environmental Law (as hereinafter defined).

(ii)           “Environmental
Laws” as used herein means all federal, state, and local laws, regulations,
orders, permits, ordinances or other requirements, concerning protection of
human health, safety and the environment, all as may be amended from time to
time.

(iii)          “Hazardous
Substances” as used herein means any hazardous or toxic substance, material,
chemical, pollutant, contaminant or waste as those terms are defined by any
applicable Environmental Laws (including, without limitation, the Comprehensive
Environmental Response, Compensation and Liability Act. 42 U.S.C. 9601 et seq.
(“CERCLA”) and the Resource Conservation and Recovery Act. 42 U.S.C. 6901 et
seq. [“RCRA”]) and any  wastes,
polychlorinated biphenyls, urea formaldehyde, asbestos, radioactive materials,
radon, explosives, petroleum products and oil.

(b)   Landlord
represents that, except as might otherwise be set forth in environmental
reports delivered by Landlord to Tenant, if any (i) Landlord has not treated,
stored or disposed of any Hazardous Substances upon or within the Premises and
(ii) to Landlord’s actual knowledge without investigation, no Hazardous
Substances are present on or under the Building as of the date of this Lease.

(c)   Tenant
represents that all its activities on the Premises during the course of this
Lease will be conducted in compliance with Environmental Laws.  Tenant, at Tenant’s sole cost and expense,
shall be responsible for obtaining all permits or licenses or approvals under
Environmental Laws necessary for Tenant’s operation of its business on the
Premises and shall make all notifications and registrations required by any
applicable Environmental Laws.  Tenant,
at Tenant’s sole cost and expense, shall at all times comply with the term and
conditions of all such permits, licenses, approvals, notifications and
registrations and with any other applicable Environmental Laws affecting in any
way the approvals and make

 24
 

 

 

all such notifications and registrations required by any applicable
Environmental Laws necessary for Tenant’s operation of its business on the
Premises.

(d)   Tenant
shall not cause or permit any Hazardous Substances to be brought upon, kept,
stored or used in or about the Premises or the Building without the prior
written consent of Landlord, which consent may be granted or withheld in the
reasonable discretion of -Landlord; provided; however, that the consent of
Landlord shall not be required for the use at the Premises of cleaning
supplies, toner for photocopying machines and other similar materials, in
containers and quantities reasonably necessary for and consistent with normal
and ordinary use by Tenant, at the Premises, in the routine operation or
maintenance of Tenant’s office equipment or in the routine janitorial service,
cleaning and maintenance for the Premises.

(e)   Neither
Landlord nor Tenant shall cause or permit the release of any Hazardous
Substances by its respective agents, contractors, employees or invitees into
any environmental media such as air, water or land, or into or on the Premises
or the Building in any manner that violates any Environmental Laws.  If such release shall occur the responsible
party shall (i) take all steps reasonably necessary to contain and control such
release and any associated Contamination, (ii) clean up or otherwise remedy
such release and any associated Contamination to the extent required by, and
take any and all other actions required under, applicable Environmental Laws
and (iii) notify and keep the other party reasonably informed of such release
and response.

(f)    Regardless
of any consents granted by Landlord pursuant to Paragraph 20(d) allowing
Hazardous Substances upon the Premises, Tenant shall under no circumstances
whatsoever (i) cause or permit any activity on the Premises which would cause
the Premises to become subject to regulation as a hazardous waste treatment,
storage or disposal facility under RCRA or the regulations promulgated thereunder;
(ii) discharge Hazardous Substances into the storm sewer system serving the
Building; or (iii) install any underground storage tank or underground piping
on or under the Premises.

(g)   Each
of Landlord and Tenant shall and hereby does indemnify, defend and hold the
other party hereto harmless from and against any and all reasonable and actual
expense, loss, and liability suffered by the indemnified party (with the
exception of those expenses, losses, and liabilities arising from such party’s
own negligence or willful act), by reason of the indemnifying party’s storage,
generation, handling, treatment, transportation, disposal, or arrangement for
transportation or disposal, of any Hazardous -Substances (whether accidental,
intentional, or negligent) or by reason of the indemnifying party’s breach of
any or the provisions of this Paragraph 20. 
Such expenses, losses and liabilities shall include; without limitation,
(i) any and all expenses that the indemnified party may incur to comply with
any Environmental Laws as a result of the indemnifying party’s failure to
comply therewith; (ii) any and all costs that the indemnified party may incur
in studying or remedying any Contamination at or arising from the Premises as a
result of a failure to comply with this Paragraph 20 or Environmental Laws;
(iii) any and all costs that the indemnified party may incur in studying,
removing, disposing or otherwise addressing any Hazardous Substances which are
present at the Premises as a result of a failure to comply with this Paragraph
20 or Environmental Laws; (iv) any and all fines, penalties or other sanctions
assessed by reason of the indemnifying party’s failure to comply with
Environmental Laws; and (v) any and all reasonable legal and

 25
 

 

 

professional fees and costs incurred by the indemnified - party in
connection with the foregoing. 
Notwithstanding any other provision to the contrary contained in this
subsection 20(g), Tenant acknowledges and agrees that Landlord shall have no
obligations under this subsection 20(g) for the release of Hazardous Substances
or any other violation of any Environmental Law occurring as the result of the
actions or inactions of any party for whom Landlord is not otherwise
responsible at law (including, but not limited to, any applicable Environmental
Laws).  Further, notwithstanding any
other provision contained herein to the contrary, Landlord acknowledges and
agrees that Tenant shall have no liability or responsibility whatsoever for any
pre-existing environmental conditions with respect to the Premises or Building
Furthermore, Landlord shall and does hereby indemnify Tenant, hold and defend
Tenant harmless from and against any and all reasonable and actual expense,
loss and liability suffered by Tenant by reason of any misrepresentations made
by Landlord under this paragraph 20.  The
indemnities contained herein shall survive the termination or expiration of
this Lease.

(h)   Landlord
shall have the right, but not the obligation, to enter the Premises at
reasonable times throughout the Term, after at least twenty-four (24) hours’
prior written notice to Tenant, to audit and inspect the Premises for Tenant’s
compliance with this Paragraph 20.

21.           Landlord’s Lien.

Landlord acknowledges and agrees that Tenant shall
have the right at any time to encumber all or any portion of its interest in
and to any furniture, fixtures or equipment located in the Premises with a lien
to secure financing, and, Landlord agrees to execute such Landlord’s lien
waiver or other agreements as Tenant may reasonably require in connection with
any such financing.

22.           Events of Default.

The occurrence of any one or more of the following
events (“Events of Default”) shall constitute a breach of this Lease by Tenant:
(a) if Tenant shall fail to pay any Rental when and as the same becomes due and
payable, and such payment remains outstanding for a period of fifteen (15) days
after written notice thereof from Landlord to Tenant; (b) if Tenant shall fail
to pay any other sum when and as the same becomes due and payable, and such payment
remains outstanding for a period of fifteen (15) days after written notice
thereof from Landlord to Tenant, (c) if Tenant shall fail to perform or observe
any other term or provision of this Lease or of the rules and regulations
described in Paragraph 18 to be performed or observed by Tenant, and (except or
the failure set forth in clause (g) such failure shall continue for more than
thirty (30) days after written notice thereof from Landlord, provided that if
Tenant’s cure can not reasonably be completed within thirty (30) days, said
thirty (30) day period shall be extended as long as Tenant proceeds diligently
and in good faith to effect such cure; (d) intentionally omitted; (e) if Tenant
shall make a general assignment for the benefit of creditors, or shall admit in
writing its inability to pay its debts as they become due or shall file a
petition in bankruptcy, or shall be adjudicated as bankrupt or insolvent, or
shall file a petition in any proceeding seeking any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief under any present or future statute, law or regulation, or shall file an
answer admitting or fail timely to contest the material allegations of a
petition filed against it in any such proceeding,

 26
 

 

 

or shall seek or consent
to or acquiesce in the appointment of any trustee, receiver or liquidator of
Tenant or any material part of its properties; (f) if, within forty-five (45)
days after the commencement of any proceeding against Tenant seeking any
reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under any present or future statute, law or
regulation, such proceeding shall not have been dismissed, or if, within
forty-five (45) days after the appointment without the consent or acquiescence
of Tenant of any trustee, receiver or liquidator of Tenant or of any material
part of its properties, such appointment shall not have been vacated; (g) if
Tenant shall fail to return a properly executed estoppel certificate to
Landlord in accordance with the provisions of Paragraph 31 hereof within the
time period designated for such return in Landlord’s request for same and such
failure continues for five (5) business days after Tenant’s receipt of written
notice of such failure from Landlord; or (h) if Tenant shall knowingly do or
permit to be done any act which results in a lien being filed against the
Premises or the Building and within thirty (30) days after written notice from
Landlord, Tenant does not occasion the removal of any such lien.

23.           Remedies 

23.01.  Upon the occurrence of
any Event of Default, Landlord shall have the option to pursue any one or more
of the following remedies without any notice or demand whatsoever except as
otherwise expressly provided:

(a)   Landlord,
with or without terminating this Lease, may, without prejudice to any other
remedy Landlord may have for possession, arrearages in Rental or damages for
breach of contract or otherwise. immediately or at any time thereafter, in
accordance with applicable law, reenter the Premises and expel or remove
therefrom Tenant and all  persons and
entities claiming by or through Tenant (including, without limitation, any and
all sublessees and assignees) and all property belonging to or placed on the
Premises by, at the direction of or with the consent of Tenant or its assignees
or sublessees without being liable to prosecution or any claim for damages
therefor; and Tenant agrees to indemnify Landlord for all loss and damage which
Landlord may suffer by reason of such termination of this Lease or of Tenant’s
right to possession hereunder, whether through inability to relet the Premises
or through decrease in rental or otherwise. 
Landlord may, at its option and with or without terminating this Lease,
also declare the positive difference, if any, between (i) the entire amount of
the Rental which would become due and payable during the remainder of the term
of this Lease and the amount of any rental abated during any free rent period,
discounted to present value using a discount rate equal to the Prime Rate in
effect as of the date of such declaration, and (ii) the fair rental value of
the Premises during the remainder of the term of this Lease (taking into
account, among other factors, the anticipated duration of the period the
Premises will be unoccupied prior to reletting and the anticipated cost of
reletting the Premises), also discounted to present value using a discount rate
equal to the Prime Rate in effect as of the date of such declaration, to be due
and payable immediately, in which event such sum shall be due and payable
immediately and Tenant agrees to pay the same at once. together with all Rental
and other sums theretofore due, at the office of Landlord in Atlanta, Georgia;
it being understood and agreed that such payment shall be and constitute
Landlord’s liquidated damages, Landlord and Tenant acknowledging and agreeing
that it is difficult or impossible to determine’ the actual damages Landlord
would suffer from Tenant’s breach hereof and that the agreed upon liquidated
damages are not punitive or penalties and are just, fair and reasonable, all in
accordance with O.C.G.A. - 13-6-7.

 27
 

 

 

(b)   Landlord,
with or without terminating this Lease, may immediately or at any time
thereafter relet the Premises or any part thereof for such time or times. at
such rental or rentals and upon such other terms and conditions as Landlord in
its reasonable discretion may deem advisable. and Landlord may make any
alterations or repairs to the Premises which it may deem necessary or proper in
its reasonable discretion to facilitate such reletting: and Tenant shall pay
all reasonable costs of such reletting including, but not limited to the cost
of any such reasonable alterations and repairs to the Premises, attorneys’ fees
and reasonable brokerage commissions: and if this Lease shall not have been
terminated, Tenant shall continue to pay all Rental and all other charges due
under this Lease up to and including the date of beginning of payment of rent
by any subsequent tenant of part or all of the Premises, and thereafter Tenant
shall pay monthly during the remainder of the term of this Lease the positive
difference, if any, between the rent and other charges collected from any such
subsequent tenant or tenants and the Rental and other charges reserved in this
Lease, but Tenant shall not be entitled to receive any excess of any such rents
collected over the Rental reserved herein.

(c)   Landlord,
with or without terminating this Lease, may recover from Tenant all damages and
expenses Landlord suffers or incurs by reason of Tenant’s default, including,
without limitation, costs of recovering the Premises, attorney’s fees and any
unamortized value of Tenant Improvements, if any, and brokerage commissions,’
all of which shall be immediately due and payable by Tenant to Landlord
immediately upon demand.

23.02.  The remedies provided for
in this Lease are in addition to any other remedies available to Landlord at
law or in equity by statute or otherwise. 
All remedies provided in this Lease are cumulative and may be exercised
alternatively, successively or in arty other manner.  The exercise by Landlord of any one or more
of the rights and remedies provided in this Lease shall not prevent the
subsequent exercise by Landlord of any one or more of the other rights and
remedies herein provided.  Failure of
Landlord 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 Landlord shall have the right to
declare the default at any time and take such action as is lawful or authorized
under this Lease.  Notwithstanding any
other provision contained herein to the contrary, Landlord acknowledges and
agrees that it will use commercially reasonable efforts to attempt to mitigate
its damages in the event of a Tenant default hereunder.

24.           Landlord’s Right to Cure Defaults.

All agreements and provisions to be performed by
Tenant under any of the terms of this Lease shall be at the sole cost and
expense of Tenant and without any abatement of Rental.  If Tenant shall fail to pay any sums of
money. other than Base Rental, required to be paid by it hereunder or shall
fail to perform any other act on its part to be performed hereunder or violates
any provision of this Lease and such failure or violation shall continue for
thirty (30) days after written notice thereof by Landlord subject to the same
time extension contained in Paragraph 22(c), Landlord is hereby empowered and
Landlord may, but shall not be obligated so to do, and without waiving or
releasing Tenant from any obligations of Tenant or any other right or remedy of
Landlord under this Lease or otherwise, make any such payment, perform any such
other act or correct any such violation on Tenant’s part to be made, performed
or observed as in this Lease provided. 
All sums so paid by Landlord and all necessary incidental costs shall be

 28

 

 

deemed Rental hereunder
and shall be payable to Landlord on demand, and Landlord shall have (in
addition to any other right or remedy of Landlord) the same rights and remedies
in the event of the nonpayment thereof by Tenant as in the case of default by Tenant
in the payment of Base Rental.  All sums
so paid by Landlord and all such necessary incidental expenses shall accrue
simple interest at the Default Rate from demand until payment, and Tenant shall
pay to Landlord such accrued interest together with such sums and expenses.

25.           Attorney’s Fees.

If as a result of any breach or default in the
performance of any of the provisions of this Lease, Landlord or Tenant, as the
case may be, uses the services of any attorney in order to secure compliance
with such provisions or recover damages therefor, or to terminate this Lease or
evict Tenant, the defaulting party shall reimburse the other party upon demand
for any and all actual and reasonable attorney’s fees and expenses so incurred.

26.           Landlord’s Defaults.

Notwithstanding any other provision of this Lease to
the contrary, excluding subparagraph 9.01(a), in the event of any default by
Landlord under this Lease, Tenant, in addition to any other remedies available
at law or in equity, shall have an action for damages, but prior to any such
action or other exercise of any remedies by Tenant.  Tenant will give Landlord written notice
specifying such default with particularly, and Landlord shall then have thirty
(30) days in which to cure any such default: provided. however, in the event
any such default cannot with reasonable diligence be cured within such thirty
day period, Landlord shall have such additional reasonable period of time as is
necessary to cure such default so long as Landlord commences such cure within
such thirty day period and shall diligently prosecute in good faith such cure
to completion.

27.           Eminent Domain.

If all or part of the Premises or Building shall be
taken as a result of the exercise of the power of eminent domain, this Lease
shall terminate as to the part so taken as of the date of taking, and, in the
case of a partial taking, either Landlord or Tenant shall have the right to
terminate this Lease by written notice to the other within thirty (30) days
after such date; provided, however, that a condition to the exercise by Tenant
of such right to terminate shall be that the portion of the Premises or
Building taken shall be of such extent and nature as substantially to handicap,
impede or impair Tenant’s use of the Premises and, further, provided that a
condition to the exercise by Landlord of such right to terminate shall be that
the portion of the Premises or Building taken shall be of such extent and
nature as to materially adversely affect Landlord’s ability to continue to
lease space within the Building in an economically reasonable manner as
determined by Landlord in its reasonable discretion.  In the event of any taking, Landlord shall be
entitled to any and all compensation, damages, income, rent, awards, or any
interest therein whatsoever which may be paid or made in connection therewith,
and Tenant shall have no claim against Landlord for the value of any unexpired
term of this Lease or otherwise.  The
foregoing notwithstanding, nothing in this paragraph shall be construed as
precluding Tenant from seeking on its on behalf and expense a separate award
for its relocation and moving expenses, as well as any tenant alterations,
additions or improvements paid for directly by 

 29
 

 

 

Tenant.  In the event of a partial taking of the
Premises which does not result in a termination of this Lease, Landlord shall
to the extent reasonably practicable restore the Premises and/or the Building
to a complete architectural unit, and the monthly Base Rental and Additional
Rental thereafter to be paid shall be equitably reduced.

28.           Subordination.

28.01.  Except as provided in
subparagraph 28.03 below, this Lease shall be subject and subordinate at all
times to (i) any and all ground or underlying leases which are now in effect
regarding the Building or any part thereof (collectively or singularly, “Landlord’s
Ground Lease’), and (ii) the lien or security title or interest of any and all
third party mortgages and deeds to secure debt in any amount or amounts
whatsoever now or hereafter placed on or against the Building or my part
thereof or on or against Landlord’s interest or 
estate therein or on or against any or all such ground or underlying
leases (collectively or singularly, “Landlord’s Mortgage”), all without the
necessity of having further instruments executed on the part of Tenant to
effectuate such subordination.  With
respect to the foregoing, Landlord represents and warrants that there is
currently no Landlord’s Ground Lease in effect with respect to the Building.

28.02.  While subparagraph 28.01
above is self-operative, and no further instrument of subordination shall be
necessary, Tenant shall, in confirmation of such subordination, upon demand, at
any time or times, execute, acknowledge and deliver to Landlord or a holder of
Landlord’s Mortgage (“Landlord’s Mortgagee”) or the lessor under Landlord’s
Ground Lease (“Landlord’s Ground Lessor”), as applicable, a Subordination,
Non-Disturbance and Attornment Agreement, in the form which is in Exhibit “E”
attached hereto and made a part hereof by this reference.

28.03.  Tenant shall, upon
demand, at any time or times, execute, acknowledge and deliver to Landlord or
Landlord’s Mortgagee or Landlord’s Ground Lessor, as applicable, without
expense, any and all reasonable instruments that may be necessary to make this
Lease superior to the lien or security title or interest of Landlord’s Mortgage
or to the estate of the Landlord’s Ground Lease.

28.04.  If Landlord’s Mortgagee
or Landlord’s Ground Lessor, as applicable, shall hereafter succeed to the
right of Landlord under this Lease, Tenant shall, at the option of such holder
or lessor, attorn to and recognize such successor as Tenant’s Landlord under
this Lease and shall promptly execute and deliver any reasonable instrument
that may be necessary to evidence such attornment.  Upon such attornment, this Lease shall
continue in full force and effect as a direct lease between each successor
Landlord and Tenant, subject to all of the terms, covenants and conditions of
this Lease.

28.05.  Tenant agrees to execute
any documents required under this Paragraph 28 within fifteen (15) days after
demand.

28.06.  Notwithstanding any
provisions to the contrary contained in this Paragraph 28, Tenant’s obligation
to subordinate to a Landlord’s Ground Lease or Landlord’s Mortgage shall be
subject to the full execution by Landlord, Tenant and Landlord’s Mortgagee

 30
 

 

 

of a form
Subordination, Non-Disturbance and Attornment Agreement in the form attached as
Exhibit “E” to this Lease and delivery thereof to the Tenant.

28.07.  Landlord acknowledges and
agrees that it shall, on or before fifteen (15) days after the Commencement
Date, deliver to Tenant a counterpart of the Subordination, Non-Disturbance and
Attornment Agreement attached hereto as Exhibit “E” executed by each of
Landlord and all current Landlord’s Mortgagees.

29.           No Merger. 

The voluntary or other surrender of this Lease by
Tenant, or a mutual cancellation hereof or a termination by Landlord pursuant
to the terms of this Lease, shall not work a merger, and shall, at the option
of Landlord, terminate all or any existing subleases or subtenancies, except
those to Tenant’s subsidiaries and affiliates or may, at the option of
Landlord, operate as an assignment to it of any and all such subleases or
subtenancies.

30.           Sale

In the event the original Landlord hereunder, or any
successor owner of the Building, shall sell or convey the Building, all
liabilities and obligations on the part of the original Landlord or such
successor owner, under this Lease accruing thereafter shall terminate, and
thereupon all such liabilities and obligations shall be binding upon the new
owner.  Tenant agrees to attorn to such
new owner.  Landlord shall, upon written
request of Tenant, provided Tenant evidence of such new owner’s assumption of
this Lease.

31.           Estoppel Certificate.

At any time and from time to time designated by
Landlord (but on not less than fifteen (15) days prior written request by
Landlord), Tenant will execute, acknowledge and deliver to Landlord, promptly
upon request, a certificate certifying (a) that this Lease is unmodified and in
full force and effect (or, if there have been modifications, that this Lease is
in full force and effect, as modified, and stating the date and nature of each
modification), (b) the date, if any, to which Rental and other sums payable
hereunder have been paid, (c) that no notice has been received by Tenant of any
default which has not been cured, except as to defaults specified in said
certificate, and (d) such other matters as may be reasonably requested by
Landlord.  Any such certificate may be
relied upon by any existing or prospective purchaser, investor, ground lessor,
mortgagee or holder of any deed to secure debt on the Building or any part
thereof.  Landlord agrees that it shall
execute a comparable estoppel certificate within fifteen (15) days after
written request by Tenant.

32.           No Light, Air or View Easement.

No easement of light, air or view is granted by
Landlord hereunder, and any diminution or shutting off of light, air or view by
any building or other structure shall in no way affect this Lease or impose any
liability on Landlord.

 31
 

 

 

33.           Holding Over 

If Tenant remains in possession after expiration of
this Lease, with Landlord’s acquiescence and without any distinct written
agreement between Landlord and Tenant, this Lease shall become a month-to-month
periodic tenancy, and there shall be no renewal of this Lease by operation of
law.  Such periodic tenancy may be
terminated by thirty (30) days written notice by either party to this Lease to
the other party and such termination shall be effective as of the last day of
the calendar month during which said notice period ends.  During the period of any such holding over,
all provisions of this Lease shall be and remain in effect except that the monthly
Base Rental shall be one hundred ten percent (110%) of the Base Rental payable
for the last calendar month of the term of this Lease, including any renewals
or extension; provided, however, that for the first 60 days of holdover there
shall be no consequential damages.  The
inclusion of the preceding sentence in this Lease shall not be construed as
Landlord’s consent for Tenant to hold over. 
If Tenant remains in possession after expiration of the term of this
Lease, without Landlord’s acquiescence or consent, Tenant shall become a
Tenant-at-sufferance subject to eviction in accordance with Georgia law.  This Paragraph 33 will survive the
termination of this Lease, by lapse of time or otherwise.

34.           Abandonment

If Tenant shall abandon or surrender the Premises’ and
fail to pay rent, or be dispossessed by process of law or otherwise, any
personal property belonging to Tenant and left on the Premises for a period of
ten (10) business days thereafter shall be deemed to be abandoned, at the
option of Landlord.

35.           Security Deposit

See Exhibit “F’.

36.           Waiver

The waiver by Landlord or Tenant of any agreement,
condition or provision herein contained shall not be deemed to be a waiver of
any subsequent breach of the same or any other agreement. condition or  provision herein contained, nor shall any
custom or practice which may grow up between the parties in the administration
of the terms hereof be construed to waive or to lessen the right of Landlord or
Tenant to insist upon the performance by the other parts’ in strict accordance
with said terms.  The subsequent
acceptance of Rental hereunder by Landlord shall not be deemed to be a waiver
of any preceding breach by Tenant of any agreement, condition or provision of
this Lease, other than the failure of Tenant to pay the particular increment of
Rental so accepted, regardless of Landlord’s knowledge of such preceding breach
at the time of acceptance of such Rental. 
Landlord may accept a partial payment of Rental or other sums due
hereunder without such constituting an accord and satisfaction and without
prejudice to Landlord’s right to demand the balance of such Rental or other sum
notwithstanding any notation on a check or letter accompanying such partial
payment, unless Landlord expressly waives its right to such balance in writing.

 32
 

 

 

37.           Notices 

Except as might otherwise be specifically provided for
herein to the contrary, whenever any notice, demand or request is required or
permitted hereunder, such notice, demand or request shall be in writing and
either hand delivered in person, by reputable courier service, or sent United
States Mail, return receipt requested, postage prepaid and addressed as
follows: to Tenant at the applicable address specified in the Basic Lease
Information, or to such other place as Tenant may from time to time designate
in a notice to Landlord; to Landlord at the address specified in the Basic
Lease Information, or to such other place as Landlord may from time to time
designate in a notice to Tenant.  Any
notice, demand or request which shall be served upon either of the parties in
manner aforesaid shall be deemed sufficiently given and received for all
purposes hereunder (i) at the time such notices, demands or requests are hand
delivered in person or by reputable courier service or (ii) on the third (3rd)
day after the mailing of such notices, demands or requests via United States
Mail, in accordance with the preceding portion of this paragraph.  Notwithstanding the foregoing, or any other
provision contained herein to the contrary, Tenant hereby appoints as an agent
of Tenant to receive the service of all dispossessory or distraint proceedings
and notices thereunder the person in charge of or occupying the Premises at the
time. and, if no person shall be in charge of or occupying the same, then such
service may be made by attaching the same on the main entrance of the Premises.

38.           Complete Agreement.

There are no oral agreements between Landlord and
Tenant affecting this Lease, and this Lease supersedes and cancels any and all
previous negotiations, arrangements. brochures. agreements and understandings.
if any, between Landlord and Tenant or displayed by Landlord to Tenant with
respect to the subject matter of this Lease. 
There are no representations between Landlord and Tenant other than
those contained in this Lease, and any reliance with respect to any
representations is solely upon the representations set forth in this
Lease.  Any modifications or amendments
to this Lease in order to be effective must be in writing and signed by the
party to be charged.

39.           Corporate Authority.

If Tenant signs as a corporation, each person
executing this Lease on behalf of Tenant does hereby covenant and warrant that
Tenant is a duly authorized and existing corporation, that Tenant has and is
qualified to do business in Georgia, that the corporation has full right and
authority to enter into this Lease, and that each person signing on behalf of
the corporation were authorized to do so. 
The individual executing this Lease on behalf Landlord represents and
warrants that he or she is duly authorized to executed and deliver this Lease
on behalf of Landlord, that this Lease is binding upon Landlord in accordance
with its terms, and that no other party’s approval is necessary for Landlord to
enter into this Lease.

40.           Landlord Liability.

Except as might otherwise specifically be provided for
herein to the contrary, Landlord shall not be liable to Tenant or Tenant’s
employees, agents, patrons or visitors, or to any other person whomsoever, for
any injury to person or damage to property on or about Premises, resulting from
and/or caused in part or whole by leaking of gas, oil, water or steam or by
electricity emanating from Premises, and Tenant hereby covenants and agrees
that it will at all

 33
 

 

 

times indemnify and hold
safe and harmless the property, the Landlord, Landlord’s agents and employees
from any loss, liability, claims, suits, costs, expenses, including without
limitation attorney’s fees and damages, both real and alleged, arising out of
any such damage or injury; except injury to persons or damage to property the
cause of which is the negligence of Landlord or the failure of Landlord to
repair any part of Premises which Landlord is obligated to repair and maintain
hereunder within a reasonable time after the receipt of written notice from
Tenant of needed repairs.

41.           Quiet Enjoyment.

Landlord hereby covenants and agrees that if Tenant
shall perform all of the covenants and agreements herein stipulated to be
performed on Tenant’s part, subject to the provisions of Paragraph 28
hereof.  Tenant shall at all times during
the continuance hereof have the peaceable and quiet enjoyment and possession of
the Premises, but always subject to the terms hereto, and restrictions,
easements and other matters of public record affecting or other-wise
encumbering the Building.

42.           Force Majeure 

Notwithstanding any other provision of this Lease,
when a period of time is herein prescribed of any action to be taken by
Landlord or Tenant, such party shall not be liable or responsible for, and
there shall be excluded from the computation for any such period of time, any
delays due to strikes, riots, acts of God, shortages of labor or materials,
war, laws, regulations or restrictions or any other causes of any kind
whatsoever which are beyond the reasonable control of such party.

43.           Certain Rights Reserved to Landlord.

Landlord reserves and may exercise the following
rights without affecting Tenant obligations hereunder: 

(a)   to
change the name or street address of the Building (provided, however, Landlord
shall pay all reasonable out-of-pocket costs incurred by Tenant in connection
with any such change of address including, but not limited’ to replacing all
stationery and business cards of Tenant);

(b)   INTENTIONALLY
DELETED;

(c)   to
reasonably approve all sources furnishing janitorial services, sign painting
and lettering, toilet supplies, lamps and bulbs used on the Premises;

(d)   to
retain at all times pass keys to the Premises; 

(e)   subject
to the provisions of Paragraph 19 to take any and all measures, including
inspections, repairs, alterations, decorations, additions and improvements to
the Premises or the Building, and identification and admittance procedures for
access to the Building as may be necessary or desirable for the safety,
protection, preservation or security of the

 34
 

 

 

Premises of the Building or the Landlord’s interests or as may be
necessary or desirable in Landlord’s reasonable discretion in the operation of
the Building.

Subject to the provisions of Paragraph 19,  Landlord may enter upon the Premises and may
exercise any or all of the foregoing rights hereby reserved without the same
being construed as a forcible or unlawful entry into, or detainer of the
Premises and without being deemed guilty of an eviction, actual or
constructive, or without being deemed guilty of disturbance of the Tenant’s use
or possession and without being liable in any manner to Tenant and without
abatement of rent or affecting any of Tenant obligations hereunder.

44.           Bankruptcy Matters 

(a)   Notwithstanding
anything in this Lease to the contrary, all amounts payable by Tenant to or on
behalf of Landlord under this Lease, whether or not expressly denominated as
Rental, shall constitute rent for the purposes of the Bankruptcy Code, 11
U.S.C. 502(b) (7).

(b)   This
is a contract under which applicable law excuses Landlord from accepting
performance from (or rendering performance to) any person or entity other then
Tenant within the meaning of the Bankruptcy Code, 11 U.S.C. “365(c), 365(e)(2).

(c)   If
this Lease is assigned to any person or entity pursuant to the provisions of
the Bankruptcy Code, any and all monies or other considerations payable or
otherwise to be delivered in connection with such assignment shall be paid or
delivered to Landlord, shall be and remain the exclusive property of Landlord
and shall not constitute property of Tenant or of the estate of Tenant within
the meaning of the Bankruptcy Code.  Any
and all monies or other considerations constituting Landlord’s property under
the preceding sentence not paid or delivered to Landlord shall be held in trust
for the benefit of Landlord and be promptly paid or delivered to Landlord.  

(d)   Any
person or entity to which this Lease is assigned pursuant to the provisions of
the Bankruptcy Code, shall be deemed, without further act or deed, to have
assumed all of the obligations arising under this Lease on and after the date
of such assignment.  Any such assignee
shall upon demand, execute and deliver to Landlord an instrument confirming such
assumption.

45.           Americans With Disabilities Act.

Notwithstanding any other provisions contained herein
to the contrary Landlord will be responsible or complying with ill requirements
relating to new construction and alterations to the public accommodations and
commercial facilities as described by and defined in Title III of the Americans
with Disabilities Act of 1990 and regulations promulgated thereunder (the “ADA”)
for the Tenant’s Premisesp; provided, however, Landlord shall not be
responsible for complying with such provisions of the ADA if compliance is
exempt under the ADA. including, without limitations, if the cost and scope of
the alterations necessary to comply with the ADA are disproportionate to the
cost and scope of the overall alterations (as defined in the ADA) which are
otherwise anticipated to be constructed within the Premises upon their

 35
 

 

 

initial occupancy by
Tenant.  In addition, Landlord shall
remove architectural and other barriers in the Premises and common areas of the
Building provided such removal is readily achievable (as defined by the ADA and
determined in Landlord’s reasonable judgment) and only to the extent required,
and in the order of priority prescribed, by Title III of the ADA excluding
points of access or entry to the property, Building and parking areas, and
excluding any Common Area.  In no event
shall Landlord be responsible for, and Tenant 
hereby agrees to bear the responsibility, cost and expense of (a)
providing auxiliary aids and services to accommodate specific needs for a
disabled employee, licensee or invitee of Tenant unless such aid, service or
accommodation is exempt pursuant to the ADA or Tenant has notified Landlord in
writing of the necessity for such aid or service and Landlord and Tenant have
mutually agreed on such aid or service; (b) complying with the provisions of
Title I of the ADA relating to the hiring of employees and all other terms,
conditions and privileges of employment; and (c) complying with Title III of
the ADA with respect to any requirement arising out of a specific need of which
Tenant was aware and with respect to which Tenant failed to provide notice to
Landlord as required under this paragraph. 

Tenant further agrees that (1) in the event it
utilizes the services of any interior planner or architect other than Landlord’s
designated interior planner or architect, any plans and specifications for
tenant improvements or alterations to the Premises, such plans and
specifications shall conform to all applicable requirements of the ADA, shall
otherwise be in accordance with the agreements contained in this paragraph, and
Landlord’s review of such plans shall not constitute a warranty that the plans
comply with the ADA; (2) it shall notify Landlord of any particular ‘requirements
it may have to enable Landlord to meet its obligations of this paragraph and
(3) it shall bear sole responsibility for complying with the ADA as it may
relate to Tenant’s furniture, fixtures and equipment.

Landlord and Tenant promise to reimburse and indemnify
each other for any expenses incurred because of the failure to conform’ with
ADA as the parties hereto have agreed in this paragraph. including the cost of
making  any alterations, renovations or
accommodations required by the ADA. or any governmental enforcement agency, or
any court, any and all fines, civil penalties. and damages awarded resulting
from a violation of the ADA and regulations, and all reasonable legal expenses
incurred in defending claims made under the ADA, including reasonable attorneys
fees.

46.           Miscellaneous.

The words “Landlord” and “Tenant” as used herein shall
include the plural as well as the singular. 
If there is more than one Tenant, the obligations hereunder imposed upon
Tenant shall be joint and several.  This
Lease grants Tenant the right to possess and enjoy the use of the Premises
subject to the terms and provisions of this Lease; no estate is conveyed by
this Lease and Tenant has only a usufruct not subject to levy and sale.  Nothing in this Lease is deemed to make or
imply that Landlord and Tenant are partners or joint venturers.  Time is of the essence of this Lease and each
and all of its provisions.  Submission of
this instrument for examination or signature by Tenant does not constitute a
reservation of or option for lease, and it is not effective as a lease or
otherwise until execution and delivery by both Landlord and Tenant.  Landlord’s obligations and liability with
respect to this Lease shall be limited solely to Landlord’s interest in the
Building (and rents, profits and insurance and condemnation proceeds

 36
 

 

 

derived therefrom), as
such interest is constituted from time to time, and neither Landlord nor any
officer, director, shareholder nor member- of Landlord shall have any personal
liability whatsoever with respect to this Lease.  The agreements, conditions and provisions
herein contained shall, subject to the provisions as to assignment, apply to
and bind the heirs, executors, administrators, successors and assigns of the
parties hereto.  Tenant shall not,
without, notifying Landlord in advance, record this Lease or a short-form
memorandum hereof in any public records. 
Tenant shall not, without the prior written consent of Landlord, use the
Building name for any purpose other than as the address of the business to be
conducted by Tenant in the Premises.  If
any provision of this Lease shall be determined to be illegal or unenforceable,
such determination shall not affect any other provision of this Lease and all
such other provisions shall remain in full force and effect.  The captions, headings and table of contents
contained in this Lease are for convenience only and do not in any way limit,
amplify or modify the terms and provisions of this Lease.  This Lease shall be a contract between
Landlord and Tenant and shall be governed by and construed pursuant to the laws
of the State of Georgia.

47.           Broker Representation.

Tenant represents that it has neither consulted with
nor retained a broker in connection with the negotiation of this Lease, except
for Tenant’s Broker and Landlord’s Broker (as identified in the Basic Lease
Information), and Landlord acknowledges that Tenant’s Broker represents Tenant
and not Landlord.  Landlord represents
and warrants that it has neither consulted with nor retained any broker in
connection with the negotiation of this Lease, except for Landlord’s Broker,
and Tenant acknowledges that Landlord’s Broker represents Landlord and not
Tenant.  Landlord agrees that both Tenant’s
Broker and Landlord’s Broker shall be compensated for their services in connection
herewith by Landlord, pursuant to separate commission agreements between
Landlord and said brokers.

48.           Exhibits; Additional Provisions.

The Basic Lease Information and the exhibits and
addendum if any, specified in the Basic Lease Information are attached to this
Lease and by this reference made a part hereof. 
Additional provisions, if any, are set forth on Exhibit “F” attached
hereto and by this reference made a part hereof.  To the extent of any conflict between such
additional provisions and the balance of this Lease, such additional provisions
shall control.

WITNESS WHEREOF, the parties have executed this Lease
under seal as of the date first above stated.

LANDLORD:

ATLANTA LAKESIDE REAL
ESTATE, L.P.,

a Georgia Limited Partnership

	
  By:

  	
  /s/ Alexandra Logan

  	
   

  
	
  Name:

  	
  Alexandra Logan

  	
   

  
	
  Title:

  	
  Agent

  	
   

  
					

 

 37
 

 

 

TENANT:

LANIER HEALTHCARE, L.L.C.,

A Delaware limited liability company

	
  By:

  	
  /s/ Robert J. Duhoy

  	
   

  
	
  Name:

  	
  Robert J. Duhoy

  	
   

  
	
  Title:

  	
  EVP & CFO

  	
   

  
					

 

 38

 

EXHIBIT
“A”

 A-1

 

EXHIBIT
“B”

MEMORANDUM OF COMMENCEMENT OF RENTAL

This Memorandum is made and entered into this         
day of        , 2002, by and between ATLANTA
LAKESIDE REAL ESTATE, L.P., a Georgia limited partnership (“Landlord”) and
LANIER HEALTHCARE, L.L.C., (“Tenant”).

WHEREAS, Landlord and Tenant entered into that certain
Lease Agreement (the “Lease”) dated                            ,
with respect to certain premises known as Lakeside Spalding Triangle, 5430
Metric Place, Norcross, Georgia, as such Premises are more particularly
described in the Lease.

WHEREAS, by virtue of Paragraph 2 of the Lease, the
Lease Term and the payment of Base Rental and Additional Rental (as such terms
are defined in the Lease) are to commence upon the delivery of the Premises to
Tenant (unless such delivery is delayed by delays attributable to Tenant);

NOW, THEREFORE, for and in consideration of the
Premises and the mutual covenants expressed in the Lease, it is hereby agreed
by Landlord and Tenant as follows:

1.             Pursuant
to the terms of Paragraph 2 of the Lease, the Premises have been delivered to
Tenant; the Commencement Date shall be                          ;
the ‘Base Rental and Additional Rental commenced on                      ;
and the Expiration Date ‘shall be                      
(as such terms are defined in the Lease).

2.             This
Memorandum shall not be deemed or construed to alter or amend the Lease in any
manner.

IN WITNESS WHEREOF, Landlord and Tenant have caused
their duly authorized officers or members to execute this Memorandum the day
and year first above written.

TENANT:

LANIER HEALTHCARE, L.L.C.,

a Delaware limited liability company

	
  By:

  	
   

  	
   

  

 

LANDLORD:

ATLANTA LAKESIDE REAL
ESTATE, L.P.,

a Georgia Limited Partnership

	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
				

 

 B-1

 

 

EXHIBIT
“C”

ATLANTA
LAKESIDE REAL ESTATE, L.P.,

RULES AND REGULATIONS

These Rules and Regulations have been adopted by
Atlanta Lakeside Real Estate, L.P. (“Landlord”) for the mutual benefit and
protection of all the tenants of Buildings in order to insure the safety, care
and cleanliness of the Building and the preservation of order therein.

1.             Sidewalks,
passages, exits, entrances, driveways, parking areas or other common areas
shall not be obstructed by tenants or used by them for any purpose other than for
ingress and egress from their respective premises.  The passages, exits, entrances, stairways or
other common areas are not for the use of the general public and Landlord shall
in all cases retain the right to control and prevent access thereto by all persons
whose presence, in the judgment of Landlord, shall be prejudicial to the
safety, character, reputation and interests of the Building and its tenants,
provided that nothing herein contained shall be construed to prevent such
access to persons with whom any tenant normally deals in the ordinary course of
such tenant’s business unless such persons are engaged in illegal
activities.  No tenant, and no employees
or invitees of any tenant, shall go upon the roof of the Building, except as
authorized by Landlord.

2.             No
sign, placard, picture, name, advertisement or notice, visible from the
exterior of one’s premises shall be inscribed, painted, affixed, installed or
otherwise displayed by any tenant either on its premises or any part of the
Building without the prior written consent of Landlord, such consent to be
given or withheld in Landlord’s reasonable discretion, and Landlord shall have
the right to remove any such sign, placard, picture, name, advertisement, or
notice without notice to and at the sole expense of the tenant.  Any expense incurred by Landlord may, at
Landlord’s sole option, be treated as Rental under of this Lease.

3.             If
Landlord shall have given such prior written consent to any tenant at any time,
whether before or after the execution of the lease, such consent shall in no
way operate as a waiver or release of any of the provisions hereof or of such
lease, and shall be deemed to relate only to the particular sign, placard,
picture, name, advertisement or notice so consented to be Landlord and shall
not be construed as dispensing with the necessity of obtaining the specific
prior written consent of Landlord with respect to any other such sign, placard,
picture, name, advertisement or notice.

4.             Any
bulletin board or directory of the Building is to be provided exclusively for
the display of the name and location of tenants only and Landlord reserves the
right to exclude any other names therefrom.

5.             No
curtains, draperies, blinds, shutters, shades, screens or other coverings,
awnings, hangings or decorations shall be attached to, hung or placed, in or
used in connection with, any window or door on any premises without the prior
written consent of Landlord, which consent shall not be unreasonably withheld,
conditioned or delayed.  No articles shall
be placed or kept on the window sills so as to be visible from the exterior of
the Building.  No articles shall be
placed against glass partitions or doors which might appear unsightly from
outside tenants’ premises.

 C-1
 

 

 

6.             In
no event shall any tenant store any articles or other items outside of the
exterior walls of the Building, unless such storage has been pre-approved in
writing by Landlord.

7.             No
tenant shall employ any person or persons other than the janitor of Landlord
for the purpose of cleaning their respective premises unless otherwise approved
by Landlord in writing prior to the employment of such person, such approval to
not be unreasonably withheld or delayed. 
Except with the prior written consent of Landlord, no person or persons
other than those approved by Landlord shall be permitted to enter the Building
for the purpose of cleaning the same.  No
tenant shall cause any unnecessary labor by reason of such tenant’s
carelessness or indifference in the preservation of good order and cleanliness
of the premises.  Landlord shall in no
way be responsible to any tenant for any loss of property or effects on the
premises, however occurring, or for any damage done to the property or effects
of any tenant by the janitor or any other employee or any other person.

8.             Each
tenant shall see that all doors of its premises are closed, and securely locked
and must observe strict care and caution that all water faucets or water
apparatus are entirely shut off before the tenant or its employees leave such
premises, and that all utilities shall likewise be carefully shut off, so as to
prevent waste or damage, and for any default or carelessness the tenant shall
make good all injuries sustained by other tenants or occupants of the Building.  All tenants shall keep the door or doors to
the Building and/or corridors closed at all times except for ingress and
egress.

9.             Intentionally
omitted.

10.           No
tenant shall alter any lock or access device or install a new or additional
lock or access device or any bolt on any door of its premises without the prior
written consent of Landlord, which consent shall not be unreasonably withheld,
conditioned or delayed.  If Landlord
shall give its prior written consent, the tenant shall in each case furnish
Landlord with a key for any such lock.

11.           No
tenant shall make or have made additional copies of any keys or access devices
provided by Landlord.  Each tenant, upon
the termination of the tenancy, shall deliver to Landlord all the keys or
access devices for the building, offices and rooms which shall have been
furnished the tenant or which the tenant shall have had made.  In the event of the loss of any keys or
access devices so furnished by Landlord, the tenant shall pay Landlord
therefore the replacement cost of any keys, locks or access devices.  Landlord shall at its cost provide an
adequate number of keys and/or access cards for Tenant to conduct its business
operations.

12.           The
toilets, urinals, wash bowls, and other apparatus shall not be used for any
purpose other than that for which they were constructed and no foreign
substance of any kind whatsoever, including coffee grounds, shall be thrown
therein, and the expense of any breakage, stoppage or damage resulting from the
violation of this rule shall be borne by the tenant who, or whose agents,
employees or invitee, shall have caused it.

13.           No
tenant shall use or keep in its premises or the Building any kerosene, gasoline
or inflammable or combustible fluid or material other than limited quantities
necessary

 C-2
 

 

 

for the operation or
maintenance of office equipment.  No
tenant shall use any method of heating or air conditioning other than that
supplied by Landlord.

14.           No
tenant shall use, keep or permit to be used or kept in its premises any foul or
noxious gas or substance or permit or suffer such premises to be occupied or
used in a manner offensive or objectionable to Landlord or other occupants of
the Building in their reasonable determination by reason of noise, odors and/or
vibrations or interfere in any way with other tenants or those having business
therein, nor shall any animals or birds be brought or kept in or about any
premises of the Building other than seeing eye dogs.

15.           No
cooking shall be done or permitted by any tenant on its premises (except that
use by tenant of Underwriters’ Laboratory approved equipment for the
preparation of coffee, tea, hot, chocolate, popcorn, microwaveable foods and
similar food and beverages for tenants and their employees shall be permitted,
provided, that such equipment and use is in accordance with all applicable
federal, state, and city laws, codes, ordinances, rules and regulations) nor
shall premises be used for lodging.

16.           Subject
to the provisions of the Basic Lease Information and Paragraph 4 of the Lease,
except with the prior written consent of Landlord, no tenant shall sell or
permit the sale, at retail, of any goods or merchandise in or on any premises,
nor shall the premises of any tenant be used for the storage of merchandise or
for manufacturing of any kind, or the business of a public barber shop, beauty
parlor, nor shall the premises of any tenant be used for any illegal, improper,
immoral or objectionable purpose, or any business activity other than that
specifically provided for in such tenant’s lease.

17.           If
a tenant requires telegraphic, telephonic, electronic burglar alarm or similar
services, it shall first obtain and comply with, Landlord’s reasonable
instructions for their installation.

18.           Landlord
will direct electricians as to where and how telephone, telegraph and
electrical wires are to be introduced or installed.  No boring or cutting for wires will be
allowed without the prior written consent of Landlord. which consent shall not
be unreasonably withheld, conditioned or delayed.  The location of burglar alarms, telephones,
call boxes  and other office equipment to
all premises shall be subject to the prior written approval of Landlord.

19.           Except
as expressly provided for in the Lease, no tenant shall install any radio or
television antenna, satellite or other dish, loudspeaker or any other device on
the exterior walls or the roof of the Building.  Tenants shall not interfere with radio or
television broadcasting or reception from or in the Building or elsewhere.

20.           INTENTIONALLY
DELETED

21.           No
furniture, freight, equipment, supplies, packages, merchandise or other
property will be received in the Building except between such reasonable hours
as shall be designated by Landlord.

 C-3
 

 

 

22.           No
tenant shall install, maintain or operate upon their premises any vending
machine other than within an employee break room without the prior written
consent of Landlord.

23.           There
shall not be used in any space, or in the public areas of the Building, either
by any tenant or others, any hand trucks except those equipped with rubber
tires and side guards or other such material-handling equipment as Landlord may
approve.  No other vehicles of any kind
shall be brought by any tenant into or kept in or about their premises.

24.           Each
tenant shall store all its trash and garbage within the interior of its
premises.  No material shall be placed in
the trash boxes or receptacles if such material is of such a nature that it may
not be disposed of in the ordinary and customary manner of removing and
disposing of trash and garbage in the city without violation of any law or
ordinance governing such disposal.

25.           Canvassing,
soliciting, distribution of handbills or any written material, and peddling in
the Building are prohibited and each tenant shall cooperate to prevent the
same.  No tenant shall make room-to-room
solicitation of business from other tenants in the Building.

26.           Landlord
reserves the right to exclude or expel from the Building any person who, in
Landlord’s judgment, is intoxicated or under the influence of alcohol or drugs
or who is in violation of any of the Rules and Regulations of the Building.

27.           Without
the prior written consent of Landlord, tenant shall not use the name of the
Building in connection with or in promoting or advertising the business of
tenant except as tenant’s address.

28.           No
animals, including without limitation, pets (other than trained seeing-eye dogs
required to be used by the visually impaired) shall be brought into the
Premises.

29.           Each
tenant shall comply with all energy conservation, safety, fire protection and
evacuation procedures and regulations established by Landlord in its reasonable
discretion or any governmental agency.

30.           Each
tenant assumes any and all responsibility for protecting its premises from
theft, robbery and pilferage, which includes keeping doors locked and other
means of entry to Premises closed.

31.           The
requirements of tenants will be attended to only upon application at the office
of the Building by an authorized individual. 
Employees of Landlord shall not perform any work or do anything outside
of their regular duties unless under special instructions from Landlord, and no
employees will admit any person (tenant or otherwise) to any office without
specific instructions from Landlord.

32.           All
wallpaper or vinyl fabric materials which tenant may install on painted walls
shall be applied with a strippable adhesive. 
The use of nonstrippable adhesive will cause damage to the walls when
materials are removed, and repairs made necessary thereby shall be made by
Landlord at tenant’s sole expense.

 C-4
 

 

 

33.           Intentionally
omitted.

34.           Subject
to the terms of the Lease, each tenant will refer all contractors, contractor’s
representatives and installation technicians, rendering any services to such
tenant, to Landlord for Landlord’s supervision, approval, and control before
performance of any contractual service. 
This provision shall apply to all work performed in the Building
requiring Landlord’s approval under the terms of the Lease only, and may
include installations of telephones, telegraph equipment, electrical devices
and attachments and installations of any nature affecting floors, walls,
woodwork, trim, windows, ceilings, equipment or any other physical portion of
the Building.

35.           Each
tenant shall give prompt notice to Landlord of any accidents to or defects in
plumbing, electrical fixtures, or heating apparatus so that such accidents or
defects may be attended to promptly.

36.           Each
tenant shall require all of its employees, agents and invitees to park all cars
within the designated car parking areas.

37.           No
tenant shall hang or suspend any item from the structure steel components of
the Building without having first received Landlord’s prior written approval to
do so.

38.           Each
tenant shall use its commercially reasonable best efforts for the observance of
all of the foregoing Rules and Regulations by such tenant’s employees, agents,
clients, customers, invitees and guests.

39.           These
Rules and Regulations are in addition to, and shall not be construed to in any
way modify, alter or amend, in whole or in part, the terms, provisions,
covenants, obligations, agreements and conditions of any lease of premises in
the Building.

40.           Landlord
reserves the right to make such other and reasonable non-discriminatory rules
and regulations as in its judgment may from time to time be needed’ for safety
and security, for care and cleanliness of the Building and for the preservation
of good order therein.  Each tenant
agrees to abide by all such Rules and Regulations hereinabove stated and any
additional reasonable non-discriminatory rules and regulations which are
adopted hereafter of which Tenant is provided notice.

 C-5

 

 

“EXHIBIT
D”

INTENTIONALLY OMITTED

 D-1
  

 

 

EXHIBIT
F

ADDITIONAL PROVISIONS

1.             Base
Rental (but not Additional Rental) will be waived during the first five months
of the Term and 50% of the Base Rental (but not Additional Rental) shall be
waived during months 6-8 of the Term. 
During such periods Tenant shall continue to pay Tenant’s Percentage
Share of Operating Expenses as set forth in Paragraph 3.01 (b) of this
Agreement, which Operating Expenses shall include proportionate common area
maintenance, Insurance Expenses and Real Estate Taxes for the Premises.

2.             Security
Deposit - Tenant has deposited with Landlord a security deposit in the amount
of $31,621 which shall be held by Landlord as security for the full and
faithful performance by Tenant of each and every term, covenant and condition
of this Lease on the part of Tenant to be observed and performed.  If’, from time to time, any of the Rents
herein reserved or any other charges or sums payable by Tenant to Landlord
shall be over due and unpaid or should Landlord make payments on behalf of Tenant
or should Tenant fail to perform any of the terms of Lease, then Landlord may
at its option from time to time, and without prejudice to any other remedy
which Landlord may have on account thereof, appropriate and apply the security
deposit, or so much thereof as may be necessary to compensate Landlord toward
the payment of Rents, charges or other sums due from Tenant, or towards any
loss, damage or expense sustained by Landlord resulting from such default on
the part of Tenant.  In the event Tenant
shall fully and faithfully comply with all of the terms, covenants and
conditions of this Lease and pay all of the Rentals as they become due and all
of the charges and sums payable by Tenant to Landlord, the security deposit
shall be returned to Tenant upon the expiration of the Lease.

3.             Landlord
shall provide Tenant at all times during the Lease Term 173 parking spaces free
and unassigned.

4.             The
preliminary space planning, design, construction drawings and specifications
for the Tenant Improvements will be provided by Hendrick and Associates and
Landlord shall pay for same up to $.65 psf.

5.             The
tenant improvement contractor will coordinate with Landlord to provide Tenant
or Tenant’s contractors. early access to the space for the installation of
phone systems, cabling and equipment.

6.             Tenant
shall have access to the Premises 24 hours a day 7 days a week.

7.             The
Premises shall be turn keyed by Landlord per the plans prepared by Hendrick and
Associates dated 8/30/02 and labeled TP-6R. 
The finishes shall reflect Landlord’s standard finishes and shall
include the specifications submitted by Hendrick and Associates dated 5/15/02
except for the following two items:

(a)           There
will be no drop pipe system in the server room and existing 2’ x 2’ ceiling
system shall remain and be matched as necessary.  The Landlord standard finishes will be in
accordance with the finishes described in the attached Exhibit “I”.  Exhibit “I” also contains the Hendrick
drawing TP-6R, the Hendrick 5/15/02 specifications and the scope of work for
the 

 F-1
 

 

tenant improvement work
which contains information not otherwise specified on the Hendrick plans
labeled TP-6R.  Any changes or additions
to the plans i) not specifically shown on the TP-6R drawing or noted in the Hendrick
5/15/02 specifications or ii) varying from Landlord’s standard finishes or the
attached scope of work shall be paid for by the Tenant along with any
additional costs that are directly or indirectly caused by such changes,
additions or variances.

7.             Tenant
may install an antenna on the roof of the Premises with Landlord approval not
to be unreasonably withheld and in accordance with the rules described in
Exhibit “J”.

8.             Landlord
shall provide Tenant with inspection reports certifying that all HVAC equipment
is in good working order prior to the commencement of the Lease and shall
repair or replace any HVAC equipment found not to be in good working order. 

 F-2

 

 

EXHIBIT
“G”

INITIAL IMPROVEMENT OF PREMISES

The initial improvement of the Premises Shell, being
the current “as is” condition of the Premises, shall be conducted in accordance
with the following provisions:

1.             Landlord
agrees to construct the improvements to the Premises (the “Tenant Improvements”)
in substantial accordance with the plans and specifications prepared by
Hendrick & Associates dated August 30, 2002 labeled TP-6R which plans and
specifications are attached hereto as Exhibit “K-1” (collectively, the “Approved
Plans”).  Tenant acknowledges and agrees
that the finishes used in constructing the Tenant Improvements shall be as
provided in Exhibit “I-2” attached hereto. 
Notwithstanding the foregoing, Tenant acknowledges and agrees that there
will be no dry pipe system in the server room and the existing 2’ x 2’ cooling
system shall remain and be matched as necessary.

(a)   Tenant
shall have the right to request changes to the Approved Plans and Landlord
shall not unreasonably withhold its consent to any such changes.  However, in the event any such change
requested by Tenant in Landlord’s estimation will result in an increase in the
cost of the Tenant Improvements, Tenant shall deposit with Landlord at the time
Landlord approves such requested change an amount equal to Landlord’s estimate
of the increase of such cost.  In
relation thereto, Tenant acknowledges and agrees that it shall be solely
responsible for any and all increases in cost necessary to complete the Tenant
Improvements resulting from• change orders requested by Tenant.  Landlord agrees to use commercially -
reasonable efforts to require the general contractor employed by Landlord to
construct the Tenant Improvements (the “Tenant Improvement Contractor”).

(b)   Landlord
shall complete the Tenant Improvements by December 15, 2002; provided, however,
in no event shall the failure to complete the subject Tenant Improvements by
said December 15, 2002 date constitute an event of default by Landlord
hereunder, nor shall Landlord be liable to Tenant for any damages which Tenant
might incur as a result of Tenant Improvements not being completed by said
December 15, 2002 date.  However, in the
event Landlord fails to substantially complete the Tenant Improvements by
December 15, 2002, then, subject to the provisions set forth below with respect
to Tenant Caused Delays, both the Commencement Date and Expiration Date of this
Lease shall be extended day-for-day for each day following said December 15,
2002 date, until such time as substantial completion is obtained as provided in
Paragraph 2 of the Lease.  Substantial
completion shall be as defined in Paragraph 2.02 of the Lease.  Notwithstanding the above, in the event
Landlord’s failure to achieve substantial completion of the Tenant Improvements
results from Tenant Caused Delays, then. in such event, substantial completion
shall be deemed to have occurred on that day that Landlord determines in its
reasonable discretion that substantial completion would have been achieved but
for such Tenant Caused Delays.  For the
purposes hereof, Tenant Caused Delays shall include any Tenant change orders
causing delays as well as the interference by Tenant or its employees, agents,
representatives, contractors or suppliers with any work being conducted by
Landlord or Landlord’s Tenant Improvement Contractor resulting in delays and
the failure by Tenant to deliver permittable construction drawings by September
15, 2002.  Tenant agrees to cooperate
with Landlord’s efforts to complete construction of the Tenant Improvements in
a timely manner and agrees that neither it, nor its employees, agents,
representatives, contractors,

 G-1
 

 

 

or subcontractors shall interfere in any manner with work being
conducted by Landlord or the Tenant Improvement Contractor or its
subcontractors.  Landlord agrees to
advise Tenant in writing of any delays Landlord reasonably expects will result
from, any Tenant requested change order at the time of Tenant’s request of such
change order.

2.             The
cost of constructing the Tenant Improvements shall be borne as follows:
Landlord shall pay for costs necessary to complete the Tenant Improvements in
accordance with the Approved Plans; however, as stated above, Tenant shall be
solely responsible for any and all increases in cost resulting from change
orders requested by Tenant.

 G-2

 

 

EXHIBIT
“H’

INTENTIONALLY
DELETED

 H-1

 

 

EXHIBIT
“I”

LEASED
AREA STANDARD INTERIOR IMPROVEMENTS

The Hawkins
Companies - Owner – Developer

2303 Cumberland Parkway, Suite 100 

Atlanta, GA 30339 

Contact: Mr.  John Crane

770-438-6675

770-438-6424 (Fax)

CARPENTRY AND MILL WORK:

Toilet rooms shall have
plastic laminate lavatory countertops without base cabinet for handicap access.

DOORS AND HARDWARE:

3’-0” x 7’-0” x 1-3/4”
flush solid core oak vaneer, stained interior doors.  Door frames shall be hollow metal knock-down.

Hardware shall be lever
action Cal-Royal SL Series with 26D finish.

Function to be compatible
with room types indicated on drawings. 
Provide hinges, floor mounted door stops, and closers as required.

PARTITIONS:

Demising wall partitions
shall be 1-hour rated extending from finished slab to deck (height varies) and
shall be constructed with 5/8” type ‘C’ gypsum wallboard screwed to both sides
of 6” wide metal studs (ga. as required for height) spaced 16” o.c.

Provide R-1 1
sound attenuation blankets in wall cavity floor to roof deck. (Ut Des.  U-465)

Typical interior
partitions shall extend from finished slab to finished ceiling and shall be
constructed with 1/2” gypsum wallboard screwed to both sides of 3-5/8” wide (25
Ga.) metal studs spaced 24” o.c.  All
joints taped and sanded.  Ceiling height
10’ - 6”

ACOUSTICAL CEILINGS:

2-0” x 2’-O” x 5/8”
Tegular square edge ceiling panels on 15/16” grid. (Armstrong Minatone
-Cortega)

 I-1
 

 

 

Provide R-l1, 3-1/2” batt
insulation above all ceilings.

Ceilings to be Continuous
over all interior partitions.

FLOORING:

Supply and install Shaw
industries “Bayhill II” (32 oz.) (cut pile) or “Sea Island II” (26 oz.) (level
loop) as standard carpet or equivalent.

4” Johnsonite rubber
base.

VCT (in break and other
areas per tenant request) by Mannington, Essentials Collection.

Ceramic Tile floor and
base in toilet rooms.

Colors to be selected by
tenant from samples provided by Landlord. 
All installations to be direct glue down.

PAINTING:

Paint all interior walls
of space with 2-coats of flat latex.

Paint all hollow metal
door frames oil based enamel, semi-gloss.

VWC (Type I) standard in
toilet rooms. -

ACCESSORIES:

Single roll toilet paper
holder ea. toilet.

Feminine napkin disposals
ea. women’s toilet.

Soap dispensers. ea. lay.

One mirror extending full
width of lavatory countertop at ea. toilet room.

Provide semi-recessed
combination paper towel / waste receptacles.

42” and 36” grab bars at
each H.C. toilet.

Toilet partitions to be
metal in standard colors.

 I-2
 

 

HVAC:

A complete HVAC system
shall be design/build.  The design shall
be in accordance to applicable codes and shall conform with recommendations of
ASHRAE.

HVAC to be furnished by
(electric cool/gas heat) roof-top package units.  Height of roof-top units shall not exceed 54”
(including curb) above the roof and must be approved by the building
management.

Roof-top units to be
located between the double joists along the center of the middle column bay of
the building. (Base building joist have been designed to accommodate units at
these locations only).

Provide additional
structural reinforcement as required for all roof mounted equipment.

Provide exhaust fans in
all toilet rooms.

PLUMBING:

Quantities of fixtures
shall be those required by code and as indicated on drawings.

Lavatories shall be
nominal 20” x 17” white vitreous china silk, self rimming for countertop
installation.  Faucets to have lever
action handles.

Toilets shall be floor
mounted, white vitreous china two-piece 1.6 GPF elongated pressure-assisted
siphon jet flush- action toilet.

Provide water heater
above ceiling, sized as required. to serve fixtures indicated.

FIRE PROTECTION:

Sprinklers to be
installed as required by code for standard office space.

Fire extinguishers to be
mounted in semi-recessed steel fire extinguisher cabinets with full glass and
pull handle as mfg. by J.L.  Industries
Model No. 1017F10 or approved equal. 
Provide as required for standard office space.

ELECTRICAL:

Provide electrical
service as recommended by electrical contractor and as follows:

 I-3
 

 

 

Meter and disconnect at
building electric room.

480/277V panel,
transformer and 120/208V panel located in tenant space.

Provide (grey) duplex
receptacles 11OV - 15A grounded with (stainless steel) cover plate.

Provide telephone outlets
with pull string from outlet box through finished ceiling and (stainless steel)
cover plate (5 outlets per 1,000 s.f.).

Provide (1) phone board.

Provide (grey) single
pole light switches with (stainless steel), cover plate.

Provide 2’ x 4’ recessed
fluorescent light fixtures - 3 tube, 21 cell fixture with parabolic lens, T-8
lamps and electronic ballast (One fixture per 80 s.f.).

Provide 2’ x 4’ emergency
light fixtures to match std. parabolic fixtures with battery packs. (One per
2,000 s.f.).

Provide exit lights:
Lithonia Lighting “Quantum QM S W 3 R 120/277 EL.

 I-4

 

 

EXHIBIT
“J”

RULES
AND REGULATIONS FOR USE OF THE COMMUNICATION EQUIPMENT

Permission is granted, free of rental charge, for the
Tenant to install Communication Equipment at the Premises on the roof and
building structure, at Tenant’s sole cost and expense, subject to the following
restrictions:

(a)  The location and means of
securing the Communication Equipment must be approved by Landlord or its
designated agent, which shall not be unreasonably withheld or delayed.  Tenant shall be responsible for any voiding
of the roof warranty and for any damage to the Building roof or structure or
any surrounding property resulting from the installation or operation of the
Communication Equipment, including, but not limited to, damage resulting from
wind, ice or any other causes.  The
Communication Equipment shall not damage the Building, the structure or the
system of communication devised by any other user authorized by Landlord or
users at neighboring properties whose use of such communication systems
preceded Tenant’s use of its Communication Equipment.  If such damage or interference shall occur,
Tenant shall correct same promptly.

(b)  Tenant agrees to maintain
the Communication Equipment in a proper and safe operating condition.

(c)  Tenant shall comply with all
codes, rules, regulations and conditions of any applicable governmental agency
and shall pay for all legal, engineering and other expenses incident
thereto.  Prior to installation, Tenant
shall provide Landlord with a copy of all required permits, licenses, or
evidence of authority to operate from this location.

(d)  Installation of the
Communication Equipment shall be performed, at Tenant’s sole cost and expense,
in a responsible and workmanlike manner by personnel with all necessary skill
and expertise through or under the supervision of Landlord.

(e)  Tenant shall be responsible
for any costs associated with furnishing electricity for the Communication
Equipment.

(f)  Tenant shall remove the
Communication Equipment and restore the roof and structure to its original
condition, except for ordinary wear and tear, at the earlier of Tenant’s
cessation of use of the Communication Equipment or the expiration of the term
of this Lease or any renewal term thereof, at Tenants sole cost and
expense.  The Communication Equipment
shah, at all times, remain the property of Tenant and Tenant shall have the
right to remove it at any time, subject to the terms and conditions herein.

(g)  Tenant shall be responsible
for implementing appropriate screening as reasonably required by Landlord.

(h)  Tenant agrees to indemnify,
defend and hold Landlord harmless from any claim resulting from property damage
or personal injury arising in connection with the installation, maintenance,
existence or removal of the Communication Equipment and shall carry

 J-1
 

 

 

insurance ( or
shall be self-insured as permitted under this Lease) to cover such liability
and property damages.

(i)  Tenant shall perform all
work in connections with the Communication Equipment in compliance with the
recommendations of the manufacturer of the roof of the Buildings (including the
use of such manufacturer’s designated contractor, if any), and further shall
perform any such work in a manner so as not to void or otherwise adversely
affect any warranties for the roofs of the Buildings.  Landlord shall provide Tenant copies of all
roof warranties and the name of said designated contractor.

 J-2Exhibit
10.30

FULL
SERVICE

LEASE

BRANDYWINE
OPERATING PARTNERSHIP, L.P.

Landlord

and

MEDQUIST
INC.

Tenant

for Bishops Gate Corporate Center

1000 Bishops Gate Boulevard

Mt. Laurel, New Jersey

 E-1

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  1.

  	
   

  	
  SUMMARY OF DEFINED TERMS

  	
   

  	
  1

  
	
  2.

  	
   

  	
  PREMISES

  	
   

  	
  3

  
	
  3.

  	
   

  	
  TERM

  	
   

  	
  3

  
	
  4.

  	
   

  	
  CONSTRUCTION BY LANDLORD

  	
   

  	
  4

  
	
  5.

  	
   

  	
  FIXED RENT AND SECURITY DEPOSIT

  	
   

  	
  6

  
	
  6.

  	
   

  	
  ADDITIONAL RENT

  	
   

  	
  6

  
	
  7.

  	
   

  	
  ELECTRICITY CHARGES

  	
   

  	
  11

  
	
  8.

  	
   

  	
  SIGNS; USE OF PREMISES AND COMMON AREAS

  	
   

  	
  11

  
	
  9.

  	
   

  	
  ENVIRONMENTAL MATTERS

  	
   

  	
  13

  
	
  10.

  	
   

  	
  TENANT’S ALTERATIONS

  	
   

  	
  15

  
	
  11.

  	
   

  	
  CONSTRUCTION LIENS

  	
   

  	
  16

  
	
  12.

  	
   

  	
  ASSIGNMENT AND SUBLETTING

  	
   

  	
  17

  
	
  13.

  	
   

  	
  LANDLORD’S RIGHT OF ENTRY

  	
   

  	
  20

  
	
  14.

  	
   

  	
  REPAIRS AND MAINTENANCE

  	
   

  	
  20

  
	
  15.

  	
   

  	
  INSURANCE; SUBROGATION RIGHTS

  	
   

  	
  21

  
	
  16.

  	
   

  	
  INDEMNIFICATION

  	
   

  	
  22

  
	
  17.

  	
   

  	
  QUIET ENJOYMENT

  	
   

  	
  23

  
	
  18.

  	
   

  	
  FIRE DAMAGE

  	
   

  	
  23

  
	
  19.

  	
   

  	
  SUBORDINATION; RIGHTS OF MORTGAGEE

  	
   

  	
  24

  
	
  20.

  	
   

  	
  CONDEMNATION

  	
   

  	
  25

  
	
  21.

  	
   

  	
  ESTOPPEL CERTIFICATE

  	
   

  	
  26

  
	
  22.

  	
   

  	
  DEFAULT

  	
   

  	
  26

  
	
  23.

  	
   

  	
  LANDLORD’S LIEN

  	
   

  	
  30

  
	
  24.

  	
   

  	
  LANDLORD’S REPRESENTATIONS AND WARRANTIES

  	
   

  	
  30

  
	
  25.

  	
   

  	
  SURRENDER

  	
   

  	
  30

  
	
  26.

  	
   

  	
  RULES AND REGULATIONS

  	
   

  	
  31

  
	
  27.

  	
   

  	
  GOVERNMENTAL REGULATIONS

  	
   

  	
  31

  
	
  28.

  	
   

  	
  NOTICES

  	
   

  	
  32

  
	
  29.

  	
   

  	
  BROKERS

  	
   

  	
  32

  
	
  30.

  	
   

  	
  CHANGE OF BUILDING/PROJECT NAME

  	
   

  	
  32

  
	
  31.

  	
   

  	
  LANDLORD’S LIABILITY

  	
   

  	
  33

  
	
  32.

  	
   

  	
  AUTHORITY

  	
   

  	
  33

  
	
  33.

  	
   

  	
  NO OFFER

  	
   

  	
  33

  
	
  34.

  	
   

  	
  RENEWAL

  	
   

  	
  33

  
	
  35.

  	
   

  	
  EXPANSION RIGHTS

  	
   

  	
  36

  
	
  35.

  	
   

  	
  ROOF RIGHTS

  	
   

  	
  36

  
	
  36.

  	
   

  	
  RELOCATION

  	
   

  	
  36

  
	
  37.

  	
   

  	
  MISCELLANEOUS PROVISIONS

  	
   

  	
  36

  
	
  38.

  	
   

  	
  CONSENT TO JURISDICTION

  	
   

  	
  39

  
	
  39.

  	
   

  	
  WAIVER OF TRIAL BY JURY

  	
   

  	
  39

  
	
  40.

  	
   

  	
  EXCLUSIVE USE

  	
   

  	
  39

  

 

 i
 

 

 

EXHIBITS

	
  EXHIBIT
  “A”

  	
   

  	
  -

  	
   

  	
  PLAN OF PREMISES

  
	
  EXHIBIT “B”

  	
   

  	
  -

  	
   

  	
  CONFIRMATION OF LEASE TERM

  
	
  EXHIBIT “C”

  	
   

  	
  -

  	
   

  	
  RULES AND REGULATIONS

  
	
  EXHIBIT “D”

  	
   

  	
  -

  	
   

  	
  CLEANING SPECIFICATIONS

  
	
  EXHIBIT “E”

  	
   

  	
  -

  	
   

  	
  WORK LETTER

  

 

 ii

LEASE

THIS LEASE (“Lease”) entered into as of the           
day of June, 2003, between BRANDYWINE OPERATING PARTNERSHIP, L.P., a Delaware
limited partnership (“Landlord”) and MEDQUIST INC., a New Jersey corporation,
with its principal place of business at 1000 Bishops Gate Boulevard, Mt.
Laurel, New Jersey (“Tenant”).

WITNESSETH

In consideration of the mutual covenants herein set
forth, and intending to be legally bound, the parties hereto covenant and agree
as follows:

1.             SUMMARY
OF DEFINED TERMS

The following defined terms, as used in this Lease,
shall have the meanings and shall be construed as set forth below:

(a)           “Building”:  The Building to be built at 1000 Bishops Gate
Boulevard, Mt. Laurel, New Jersey 08054.

(b)           “Project”:  The Building, the land and all other
improvements located at Bishops Gate Corporate Center, Mt.  Laurel, New Jersey 08054.

(c)           “Premises”:  All of the third floor and a portion of the
second floor containing approximately 28,673 rentable square feet of the
Building shown on the mutually agreed upon space plan attached hereto as
Exhibit “A” and made a part hereof. 
Within sixty days of the Commencement Date, Landlord’s architect shall
utilize the 1996 BOMA standard to determine Tenant’s rentable square footage of
the Premises and Tenant’s Allocated Share.

(d)           “Term”:  From the Commencement Date for a period of 84
months.

(e)           “Fixed Rent”:

	
  LEASE YEAR

  	
   

  	
  RENT PER S.F.

  	
   

  	
  MONTHLY

  INSTALLMENTS

  	
   

  	
  ANNUAL

  FIXED RENT

  	
   

  
	
  Months 1-60

  	
   

  	
  $

  	
  20.30

  	
  *

  	
  $

  	
  48,505.16

  	
   

  	
  $

  	
  582,061.90

  	
   

  
	
  Months 61-84

  	
   

  	
  $

  	
  21.30

  	
  *

  	
  $

  	
  50,894.58

  	
   

  	
  $

  	
  610,734.90

  	
   

  

* plus amounts pursuant to Articles 6 and 7 hereof.

(f)            “Security
Deposit”:  $0

(g)           “Lease
Commencement Date”:  See Article 3.

(h)           “Tenant’s
Allocated Share”:  54.11% to be
adjusted as and when the square footage of the Premises or Building changes;

“Base Year”:  2004.

 

 

(i)            “Rentable Area”:  Premises 28,673 sq. ft. Building 52,986 sq.
ft.

(j)            “Permitted Uses”:  Tenant’s use of the Premises shall be limited
to general office, executive and any other legally permissible use, subject to
all applicable laws and governmental rules and regulations and to all
reasonable requirements of the insurers of the Building.

(k)           “Broker”:  Insignia ESG

(l)            “Notice
Address/Contact”

Tenant:  Prior to Commencement:

MedQuist Inc.

Five Greentree Centre, Suite 311

Marlton, NJ  08053

Attn:      General Counsel

After
Commencement:

MedQuist Inc.

1000 Bishops Gate Boulevard

Mt. Laurel, NJ  08054

Attention: General Counsel

Landlord:

Brandywine Operating
Partnership, L.P.

401 Plymouth Road, Suite 500

Plymouth Meeting, PA  19462

Attn:      George D. Sowa, Senior Vice
President

with a copy to:

Brandywine Realty Trust

401 Plymouth Road, Suite 500

Plymouth Meeting, PA  19462

Attn:      Brad A. Molotsky, General
Counsel

(m)          “Tenant’s Standard
Identification Code”:                  

(n)           “Additional Rent”:  All sums of money or charges required to be
paid by Tenant under this Lease other than Fixed Rent, whether or not such sums
or charges are designated as “Additional Rent”.

(o)           “Rent”:  All Annual Fixed Rent, monthly installments
of Annual Fixed Rent, Fixed Rent and Additional Rent payable by Tenant to
Landlord under this Lease.

 2
 

 

 

2.             PREMISES

Landlord does hereby lease, demise and let unto Tenant
and Tenant does hereby hire and lease from Landlord the Premises for the Term,
upon the provisions, conditions and limitations set forth herein.

3.             TERM

(a)           The Term of this
Lease shall commence (the “Commencement Date”) on the date which is the later
of (i) April 1, 2004 or (ii) upon substantial completion of the improvements
required to be made by Landlord and “Tenant’s Work”, if any under Article 4 and
“Exhibit E” but in any event, if earlier, the Commencement Date shall occur
when Tenant, with Landlord’s prior consent, which consent shall not be
unreasonably withheld, assumes possession of the Premises for its Permitted
Uses.  The Premises shall be deemed “substantially
completed” when the improvements called for by Article 4 and “Exhibit E” have
been completed to the extent that the Premises may be occupied by Tenant for
its Permitted Uses, subject only to completion of minor finishing, adjustment
of equipment, and other minor punchlist items and minor construction aspects,
and Landlord has procured a permanent or temporary certificate of occupancy
permitting the occupancy of the Premises, if required by law (hereafter, “substantially
completed”).  The Term shall expire on
the last day of the month which is 84 months from the Commencement Date.  The Commencement Date shall be confirmed by
Landlord and Tenant by the execution of a Confirmation of Lease Term in the
form attached hereto as Exhibit “B”.  If
Tenant fails to execute the Confirmation of Lease Term within twenty (20)
business days, Landlord’s reasonable determination of such dates shall be
deemed accepted.

(b)           Upon notification by
Landlord, Landlord and Tenant shall schedule a pre-occupancy inspection of the
Premises at which time a punchlist of minor outstanding items, if any, and to
the extent they are ascertainable at that time, shall be completed.  Within a reasonably prompt time thereafter,
Landlord shall complete the punchlist items to Tenant’s reasonable
satisfaction.  For the purpose of the
Lease, punchlist items are those minor adjustments, repairs, replacements and
the failure to complete of which, taken as a whole shall not interfere with or
disrupt Tenant’s intended Use of the Premises in the manner contemplated.  No punchlist repairs, replacements or
adjustments to be made by Landlord or its agents shall materially interfere
with any of Tenant’s Permitted Uses at the Premises and Landlord and its agents
will exercise all reasonable means to minimize inconvenience and/or disruption
to Tenant, its employees, clients, vendors and invitees.

(c)           In the event that
the Premises are not ready for Tenant’s occupancy at the time herein fixed for
the beginning of the Term of this Lease, because of any alterations or
construction now or hereafter being carried on either to the Premises or the
Building , or because of any restrictions, limitations or delays caused by
government regulations or governmental agencies, this Lease and the Term hereof
shall not be affected thereby, nor shall Tenant be entitled to make any claim
for or receive any damages whatsoever from Landlord; provided, however, no rent
or other sums herein provided to be paid by Tenant shall become due until the
Premises are substantially completed and reasonably deemed by Landlord and
Tenant to be ready for Tenant’s occupancy, and until that time, the rent and
other sums due hereunder shall be suspended.

 3
 

 

 

4.             CONSTRUCTION BY
LANDLORD

(a)           Landlord shall
construct, at its sole cost and expense, the Building in accordance with base
building specifications (“Landlord’s Work”) as set forth in the Work Letter
attached hereto as Exhibit “E” (“Work Letter”).

(b)           Landlord to provide
a “turnkey” build out as per Landlord approved plans and specification attached
hereto as “Exhibit E” (“Tenant’s Work”). 
Tenant’s Work shall not include (1) dry sprinkler system in Tenant
computer room and (2) ceiling tile alternate beyond the “Second Look” building
standard but Tenant Work shall include a $2,000 allowance toward additional
structural steel necessitated by a Tenant movable filing system.

(c)           In addition to the
Tenant’s Work, Landlord shall provide an additional allowance up to $2.00 per
rentable square foot of the Premises to be used solely by Tenant for moving
expenses (“Moving Allowance”).  The
Moving Allowance shall be paid upon receipt of paid invoices evidencing the
moving expense.

(d)           Landlord shall
provide Tenant with a construction schedule for the Landlord’s Work and the
Tenant’s Work.  In the event Landlord
closes on the potential acquisition of the building where Tenant is currently a
tenant, 5 Greentree Center, Lincoln Drive West, Marlton, New Jersey (“5
Greentree Premises”) and Tenant is unable to occupy the Premises for any reason
other than Force Majeure or Tenant Delay, then, from the date of Landlord’s
ownership forward Landlord shall waive the holdover penalty for occupying the 5
Greentree Premises beyond the expiration of the lease term.  In the event Landlord does not acquire the 5
Greentree Premises and the Commencement Date has not occurred by April 30, 2004
for any reason other than Force Majeure or Tenant Delay, then Landlord shall
pay the holdover portion of Tenant’s rent (but not the base or additional rent
due thereunder) at the 5 Greentree Premises commencing May 1, 2004.

5.             FIXED RENT

(a)           Tenant shall pay to
Landlord without notice or demand, and without set-off, the annual Fixed Rent
payable in the monthly installments of Fixed Rent as set forth in Article 1(e),
in advance on the first day of each calendar month during the Term by
(i) check to Landlord at P0 Box 8538-363, Philadelphia, PA 19171 or (ii)
wire transfer of immediately available funds to the account at First Union
National Bank, Salem NJ account no. 2030000359075 ABA #031201467; such transfer
to be confirmed to Landlord’s accounting department (610-325-5622 - fax) by
written facsimile upon written request by Tenant.  Notwithstanding the immediately preceding
sentence, the first full month’s installment shall be paid upon the execution
of this Lease by Tenant.

(b)           In the event any Fixed Rent or
Additional Rent, charge, fee or other amount due from Tenant under the terms of
this Lease are not paid to Landlord when due, Tenant shall also pay as
Additional Rent a service and handling charge equal to five (5%) percent of the
total payment then due.  The aforesaid
late fee shall begin to accrue on the first day following a payment due date,
irrespective of any cure period granted hereunder.  This provision shall not prevent Landlord
from exercising any other remedy herein provided or

 4
 

 

 

otherwise
available at law or in equity in the event of any default by Tenant.  Notwithstanding the foregoing, Landlord
agrees that twice each year, prior to imposing the late fee, Landlord shall
send written notice to Tenant and Tenant shall have ten (10) days from receipt
of such notice to cure the delinquency.

(c)           Tenant shall be
required to pay a Security Deposit of $0 under this Lease (the “Collateral”),
as security for the prompt, full and faithful performance by Tenant of each and
every provision of this Lease and of all obligations of Tenant hereunder.

(d)           If Tenant defaults
(irrespective of the fact that Tenant cured such default) more than twice in
its performance of a monetary obligation and such monetary defaults aggregate
in excess of $100,000 under this Lease, Landlord may require Tenant to post
Collateral in an amount equal to the greater of the twice the current Security
Deposit or twice the Fixed Rent then paid monthly.

(e)           No interest shall be
paid to Tenant on the Collateral, and Landlord shall have the right to
commingle the Collateral with other Security Deposits held by Landlord.  If Tenant fails to perform any of its
obligations hereunder, Landlord may use, apply or retain the whole or any part
of the Collateral for the payment of(i) any rent or other sums of money which
Tenant may not have paid when due, (ii) any sum expended by Landlord on Tenant’s
behalf in accordance with the provisions of this Lease, and/or (iii) any sum
which Landlord may expend or be required to expend by reason of Tenant’s
default, including, without limitation, any damage or deficiency in or from the
reletting of the Premises as provided in this Lease.  The use, application or retention of the
Collateral, or any portion thereof, by Landlord shall not prevent Landlord from
exercising any other right or remedy provided by this Lease or by law (it being
intended that Landlord shall not first be required to proceed against the
Collateral) and shall not operate as either liquidated damages or as a
limitation on any recovery to which Landlord may otherwise be entitled.  If any portion of the Collateral is used,
applied or retained by Landlord for the purposes set forth above, Tenant
agrees, within ten (10) days after the written demand therefor is made by
Landlord, to deposit cash or a new letter of credit with the Landlord in an
amount sufficient to restore the Collateral to its original amount.  In addition to the foregoing, if Tenant
defaults more than twice in its performance of a monetary obligation under this
Lease beyond notice and grace periods, irrespective of whether such default is
cured, Landlord may require Tenant to post Collateral of twice the Fixed Rent
paid monthly.

(f)            If Tenant shall
fully and faithfully comply with all of the provisions of this Lease, the
Collateral, or any balance thereof, shall be returned to Tenant without
interest after the expiration of the Term or upon any later date after which
Tenant has vacated the Premises.  In the
absence of evidence satisfactory to Landlord of any permitted assignment of the
right to receive the Collateral, Landlord may return the same to the original
Tenant, regardless of one or more assignments of Tenant’s interest in this
Lease or the Collateral.  Upon the return
of the Collateral, or the remaining balance thereof, to the original Tenant or
any successor to the original Tenant, Landlord shall be completely relieved of
liability with respect to the Collateral.

In the event of a
transfer of the Project or the Building, Landlord shall transfer the Collateral
to the vendee or lessee and Landlord shall thereupon be released by Tenant from
all

 5
 

 

 

liability for the return
of such Collateral.  Upon the assumption
of such Collateral by the transferee, Tenant agrees to look solely to the new
landlord for the return of said Collateral, and the provisions hereof apply to
every transfer or assignment made of the Collateral to a new landlord.  Tenant further covenants that it will not
assign or encumber or attempt to assign or encumber the Collateral and that
neither Landlord nor its successors or assigns shall be bound by any such
assignment, encumbrance, attempted assignment or attempted encumbrance.  The Collateral shall not be mortgaged,
assigned or encumbered in any manner whatsoever by Tenant without the prior
written consent of Landlord.

6.             ADDITIONAL RENT

(a)           Commencing January
1, 2005, and in each calendar year thereafter during the Term (as same may be
extended), Tenant shall pay to Landlord Tenant’s Allocated Share of the
following charges (“Recognized Expenses”), without deduction or set off except
as expressly provided herein, to the extent such Recognized Expenses exceed the
Recognized Expenses in the Base Year.

(i)            Operating
Expenses.  All of the following costs
and expenses for the maintenance and operation to the Project.

(A)          All costs and
expenses incurred in the operation of the Building and Project, for lighting,
cleaning the Building exterior and common areas of the Building interior, trash
removal and recycling, repairs and maintenance of the roof and storm water
management system, fire suppression and alarm systems, for the Project,
removing snow, ice and debris and maintaining all landscape areas, (including
replacing and replanting original flowers, shrubbery and trees), maintaining
and repairing all other exterior improvements on the Project, all repairs and
compliance costs necessitated by laws enacted or which become effective after
the date of occupancy of the tenants of the Building (including, without
limitation, any additional regulations or requirements enacted after such date
regarding the Americans With Disabilities Act (as such applies to the Project
or common areas but not to any individual tenant’s space), if applicable)
required of Landlord under applicable laws and rules and regulations.  All of the aforementioned costs and expenses
are subject to the “Operating Expense Exclusions” listed below.

(B)           All reasonable costs
and expenses paid by Landlord for environmental testing, sampling or monitoring
required by statute, regulation or order of governmental authority, except any
costs or expenses incurred in conjunction with the spilling or depositing of
any hazardous substance for which any person or other tenant is legally liable
and Landlord is reimbursed for by such other person, or any spilling or
depositing of any hazardous substance due to the negligence or willful act of
Landlord or its agents or contractors.

(C)           Any other expense or
charge (excluding reasonably allocated general and administrative charges)
which would typically be considered an expense of maintaining, operating or
repairing the Project under generally accepted accounting principles.

(D)          Management fee not to
exceed five (5%) percent of Fixed Rent received.

 6
 

 

 

(E)           Capital expenditures
and capital repairs otherwise includable hereunder shall be included as
operating expenses solely to the extent that they related to (i) an
installation or improvement required by reason of any new (or amendment to any)
law, ordinance or regulation, or (ii) an installation or improvement which is
incurred with the intention of, and which results in, a reduction in Operating
Expenses, and in either such case, solely to the extent of the annual amortized
costs of same over the useful life of the improvement in accordance with
generally accepted accounting principles.

(F)           All insurance
premiums paid or payable by Landlord for insurance with respect to the Project
as follows: (a) fire and extended coverage insurance (including demolition and
debris removal); (b)Landlord’s commercial general liability insurance
(including bodily injury and property damage) and boiler insurance; and (c)
insurance as other Landlords of similar buildings in the general vicinity or
any reputable mortgage lending institution holding a mortgage on the Premises
may require.  If the coverage period of
any of such insurance obtained by Landlord commences before or extends beyond
the Term, the premium therefore shall be prorated to the Term.  Should Tenant’s occupancy or use of the
Premises at any time change and thereby cause an increase in such insurance
premiums on the Premises, Building and/or Project, Tenant shall pay to Landlord
the entire amount of such reasonably documented increase.

Notwithstanding the foregoing, the term “Operating
Expenses” shall not include any of the following:

(A)          Repairs
or other work occasioned by fire, windstorm or other casualty or by the
exercise of the right of eminent domain;

(B)           Leasing
commissions, marketing costs, accountants’, consultants’, auditors or attorneys’
fees, costs and disbursements and other expenses incurred in connection with
negotiations, leases, or disputes with other tenants or prospective tenants or
other occupants, or associated with the enforcement of any other leases or the
defense of Landlord’s title to or interest in the real property or any part
thereof or the preparation or review of financial records or tax returns for
the Landlord, or advice to Landlord not specifically relating to the operation
of the Building;

(C)           Costs
incurred by Landlord in connection with construction of the Building and
related facilities, the correction of defects in construction of the Building
or the discharge of Landlord’s Work whether for Tenant or anyone else;

(D)          Costs
(including permit, licenses and inspection fees) incurred in renovating or
otherwise improving or decorating, painting, or redecorating the Building or
space for other tenants or other occupants or vacant space;

(E)           Depreciation
and amortization;

(F)           Costs
incurred due to a breach by Landlord or any other tenant of the terms and
conditions of any lease or any law;

 7
 

 

 

(G)           Overhead and profit
increment paid to subsidiaries or affiliates of Landlord for management or
other services on or to the Building or for supplies, utilities or other
materials, to the extent that the costs of such services, supplies, utilities
or materials exceed the reasonable costs that would have been paid had the
services, supplies or materials been reasonably and necessary and provided by
unaffiliated parties on a reasonable basis without taking into effect volume
discounts or rebates offered to Landlord as a portfolio purchaser;

(H)          Interest on debt or
amortization payments on any mortgage or deeds of trust or any other borrowings
and any ground rent;

(I)            Ground rents or
rentals payable by Landlord pursuant to any over-lease;

(J)            Any compensation
paid to clerks, attendants or other persons in commercial concessions operated
by Landlord or any operation from which Landlord derives revenues;

(K)          Costs incurred in
managing or operating any “pay for” parking facilities or other facilities at
or within the Project;

(L)           Expenses resulting
from the gross negligence or willful misconduct of Landlord;

(M)         Any fines or fees,
including legal fees, for Landlord’s failure to comply with governmental,
quasi-governmental, or regulatory agencies’ rules and regulations;

(N)          Legal, accounting and
other expenses related to Landlord’s financing, re-financing, mortgaging or
selling the Building or the Project;

(O)          Taxes;

(P)           Electric costs paid
pursuant to Article 7 hereof;

(Q)          Costs for sculpture,
decorations, painting or other objects of art in excess of amounts typically
spent for such items in office buildings of comparable quality in the
competitive area of the Building; and

(R)           Cost of any
political, charitable or civic contribution or donation;

(S)           Cost of any item
included in Operating Expenses to the extent that such cost is reimbursed by an
insurance company or a condemnor or a tenant (except as a reimbursement of
Operating Expenses) or any other party;

(T)           Costs relating to
disputes with other tenants or paid by any other tenant.

 8
 

 

 

(ii)           Taxes.  Taxes shall be defined as all taxes,
assessments and other governmental charges (“Taxes”), including special
assessments for public improvements or traffic districts which are levied or
assessed against the Project during the Term or, if levied or assessed prior to
the Term, which properly are allocable to the Term, and reasonable and
necessary real estate tax appeal expenditures incurred by Landlord to the
extent of any reduction resulting thereby. 
Nothing herein contained shall be construed to include as Taxes: (A) any
inheritance, estate, succession, transfer, gift, franchise, corporation, net
income or profit tax or capital levy that is or may be imposed upon Landlord,
or (B) any transfer tax or recording charge resulting from a transfer of the
Building or the Project or the execution of any Lease; provided, however, that
if at any time during the Term the method of taxation prevailing at the
commencement of the Term shall be altered so that in lieu of or as a substitute
for the whole or any part of the taxes now levied, assessed or imposed on real
estate as such there shall be levied, assessed or imposed (i) a tax on the
rents received from such real estate, or (ii) a license fee measured by the
rents receivable by Landlord from the Premises or any portion thereof, then the
same shall be included in the computation of Taxes hereunder.

(b)           Tenant shall pay, in
monthly installments in advance, on account of Tenant’s Allocated Share of
Recognized Expenses, the estimated amount of the increase of such Recognized
Expenses for such year as determined by Landlord in its reasonable discretion
in excess of the Base Year and as set forth in a notice to Tenant, such notice
to include the basis for such calculation. 
Prior to the end of the calendar year in which the Lease commences and
thereafter for each successive calendar year (each, a “Lease Year”), or part
thereof, Landlord shall send to Tenant a statement of projected increases in
Recognized Expenses in excess of the Base Year and shall indicate what Tenant’s
projected share of Recognized Expenses shall be, as calculated pursuant to the
Lease.  Said amount shall be paid in
equal monthly installments in advance by Tenant as Additional Rent commencing
January 1 of the applicable Lease Year.

(c)           If during the course
of any Lease Year, Landlord shall have reason to believe that the Recognized
Expenses shall be different than that upon which the aforesaid projections were
originally based, then Landlord, one time in any calendar year, shall be
entitled to adjust the amount by reallocating the remaining payments for such year,
for the months of the Lease Year which remain for the revised projections, and
to advise Tenant of an adjustment in future monthly amounts to the end result
that the Recognized Expenses shall be collected on a reasonably current basis
each Lease Year.  Tenant shall have the
right to audit expenses per Article 6(d) below.

(d)           Landlord shall permit Tenant, at its
sole cost and expense upon at least ten (10) business days prior written notice
to have an audit made of Landlord’s books, records, and accounts relative to
the Taxes and Operating Expenses.  Such
inspection shall be made on such date and time reasonably set by the Landlord
in Landlord’s office during normal business hours.  Notwithstanding anything to the contrary
contained herein, Tenant or Tenant’s authorized representative may conduct an
audit no more than one (1) time during any lease year and may only audit the
immediately preceding year’s Taxes and Operating Expenses.  If the examination made by the Tenant
discloses a discrepancy in the Taxes and Operating Expenses charged to the
Tenant, Tenant shall contest such charge within thirty (30) days after Tenant’s
completion of its examination of Taxes and Operating Expenses.  In the event that Tenant does not provide
written notice to Landlord of Tenant’s intent to dispute or contest such
expenses

 9
 

 

 

within the
thirty (30) day period, Tenant waives the right to dispute or contest the Taxes
and Operating Expenses.  It is further
understood and agreed that Tenant, Tenant’s accountant and Tenant’s outside
counsel will retain as confidential the information contained in the above
described books, records and accounts.

(e)           By April 30th of
each Lease Year or as soon thereafter as administratively available, Landlord
shall send to Tenant a statement of actual expenses incurred for Recognized
Expenses for the prior Lease Year showing the Allocated Share due from
Tenant.  Landlord shall use its best
efforts and diligently work to provide Tenant with the aforesaid statements on
or before April 30 of each Lease Year; provided, however, if Landlord is unable
to provide such statements by April 30, Landlord shall not have been deemed to
waive its right to collect any such amounts as Additional Rent.  In the event the amount prepaid by Tenant
exceeds the amount that was actually due then Landlord shall issue a credit to
Tenant in an amount equal to the over charge, which credit Tenant may apply to
future payments on account of Rent and/or Recognized Expenses and Taxes until
Tenant has been fully credited with the over charge.  If the credit due to Tenant is more than the
aggregate total of future rental payments, Landlord shall pay to Tenant the
difference between the credit in such aggregate total.  In the event Landlord has undercharged
Tenant, then Landlord shall send Tenant an invoice with the additional amount
due, which amount shall be paid in full by Tenant within thirty (30) days of
receipt.

(f)            In calculating the
Recognized Expenses as hereinbefore described, if for thirty (30) or more days
during the preceding Lease Year less than ninety-five (95%) percent of the
rentable area of the Building shall have been occupied by tenants, then the
Recognized Expenses attributable to the Property shall be deemed for such Lease
Year to be amounts equal to the Recognized Expenses which would normally be
expected to be incurred had such occupancy of the Building been at least
ninety-five (95%) percent throughout such year, as reasonably determined by
Landlord (i.e., taking into account that certain expenses depend on occupancy
(e.g., janitorial) and certain expenses do not (e.g., landscaping)).  Furthermore, if Landlord shall not furnish
any item or items of Recognized Expenses to any portions of the Building
because such portions are not occupied or because such item is not required by
the tenant of such portion of the Building, for the purposes of computing
Recognized Expenses, an equitable adjustment shall be made so that the item of
Operating Expense in question shall be shared only by tenants actually
receiving the benefits thereof.

(g)           Each of the
Recognized Expenses, whether requiring lump sum payment on invoice terms or
constituting projected monthly amounts added to the Fixed Rent, shall for all
purposes be treated and considered as Additional Rent and the failure of Tenant
to pay the same as and when due in advance and without demand shall have the
same effect as failure to pay any installment of the Fixed Rent and shall
afford Landlord all the remedies in the Lease therefor as well as at law.  All Operating Expenses shall be charged at no
higher rates than that which Tenant could receive contracting directly with a
service provider, without reduction on account of volume discounts or preferred
vendor rates applicable to Landlord.

(h)           If this Lease
terminates other than at the end of a calendar year, Landlord’s annual estimate
of Recognized Expenses and Taxes shall be accepted by the parties as the actual
Recognized Expenses and Taxes for the year the Lease ends until Landlord
provides Tenant with actual statements in accordance with subsection 6(e)
above.

 10

 

7.             ELECTRICITY
CHARGES

Except as provided herein, Landlord shall not be
liable for any interruption or delay in electric or any other utility service
for any reason unless caused by the negligence or willful misconduct of
Landlord its agents, employees and invitees. 
If interruption or delay occurs and shall continue for more than two (2)
consecutive business days for any reason within Landlord’s reasonable control,
Fixed Rent shall abate until services are restored.  Landlord shall have the right to change the
electric and other utility provider to the Project or Building at any time,
providing that the electricity charges to Tenant shall be no greater than any
of those that would be available to a similarly situated tenant if it obtained
electricity through a commercially available provider other than Landlord.  Tenant shall pay to Landlord, as Additional
Rent, within thirty (30) business days of receipt of Landlord’s billing
statement therefor, (a) all charges incurred by Tenant for electricity in the
Premises, such charges to be based upon Tenant’s consumption, as measured by
Landlord’s submeter for the Premises and (b) Tenant’s Allocated Share of all
charges incurred in the operation of the common areas of the Building with
respect to electric/gas.  The aforesaid
electricity charges shall commence upon, occupancy by Tenant of the
Premises.  Landlord, 24 hours a day, 7
days a week (“Working Hours”), excluding legal holidays, shall furnish the
Premises with heat and air-conditioning (HVAC) in the respective seasons
sufficient to provide for comfortable working conditions for the occupants of
the Premises.  Other than during the
hours of 8:00 A.M. to 6:00 P.M. on weekdays and on Saturdays from 8:00 A.M. to
1:00 P.M., Landlord shall similarly supply HVAC in the Premises or part(s)
thereof upon request of Tenant at Landlord’s actual out of pocket cost for gas
and electricity usage for such HVAC, and shall bill Tenant monthly for such
overtime HVAC.  Landlord shall provide
air conditioning 24 hours a day, 7 days a week, 365 days a year, to Tenant’s
cold room at no additional cost to Tenant. 
Landlord shall endeavor to provide the Premises with electricity for
lighting and usual office equipment as well as water service twenty-four hours
a day, seven days a week, and shall keep reasonably lighted all hallways,
stairways, common areas at all times, and shall endeavor to provide use and
safe access to the Building and all parking, common areas and elevators
twenty-four hours a day seven days a week Tenant shall have access to the
Premises 24 hours a day, 7 days a week, 365 days a year.

8.             SIGNS;
USE OF PREMISES AND COMMON AREAS

(a)           Landlord,
at Tenant’s expense or paid from the Tenant Allowance, shall provide Tenant
with standard identification signage on the Premises door, floors, Building
directory and the monument sign.  Subject
to applicable municipal and township requirements and approvals, and Landlord’s
prior approval as to type, size, location, design, lighting, air structural and
aesthetic features, Tenant shall have the right to install a façade sign on the
Building, with such façade signs to bear the name of the Tenant and the cost of
all signage to be borne by Tenant or paid out of the Tenant Allowance.  No other signs shall be placed, erected or
maintained by Tenant at any place upon the Premises, Building or Project,
unless previously stated herein or Tenant receives written approval from
Landlord.

(b)           Tenant
may use and occupy the Premises only for the express and limited purposes
stated in Article 1(j) above; and the Premises shall not be used or occupied,
in whole or in part, for any other purpose without the prior written consent of
Landlord, which shall not be unreasonably withheld; provided that Tenant’s
right to so use and occupy the Premises

 11
 

 

shall remain expressly subject to the provisions of “Governmental
Regulations”, Article 26 herein.  No
machinery or equipment shall be permitted that shall cause vibration, noise or
disturbance beyond the Premises.

(c)           Tenant
shall not overload any floor or part thereof in the Premises or the Building,
including any public corridors or elevators therein, bringing in, placing,
storing, installing or removing any large or heavy articles, and Landlord may
prohibit, or may direct and control the location and size of, safes and all
other heavy articles, and may require that Tenant install, at Tenant’s sole
cost and expense (except as required to be made by Landlord pursuant to the
construction of the initial tenant improvements) supplementary supports of such
material and dimensions as Landlord may reasonably deem necessary to properly
distribute the weight.

(d)           Tenant
shall not install in or on the Premises, without Landlord’s prior written
approval, which approval shall not be unreasonably withheld, any equipment
which requires more electric current than Landlord is required to provide under
this Lease, and Tenant shall ascertain from Landlord the maximum amount of load
or demand for or use of electrical current which can safely be permitted in and
for the Premises, taking into account the capacity of electric wiring in the
Building and the Premises and the needs of Building common areas (interior and
exterior) and the requirements of other tenants of the Building, Tenant and
shall not in any event connect a greater load than such safe capacity; provided
that Landlord shall cooperate with Tenant in evaluating Tenant’s electrical
requirement and providing the same within the Building.

(e)           Tenant
shall not commit or suffer any waste upon the Premises, Building or Project or
any nuisance, or do any other act or thing which may disturb the quiet
enjoyment of any other tenant in the Building or Project.

(f)            Tenant
shall have the right, non-exclusive and in common with others, to use the
exterior paved driveways and walkways of the Building for vehicular and
pedestrian access to the Building and all other interior common areas.  Tenant shall also have the right, in common
with other tenants of the Building and Landlord, to use the designated parking
areas of the Project for the parking of automobiles of Tenant and its employees
and business visitors, incident to Tenant’s permitted use of the Premises;
provided that Landlord shall have the right to restrict or limit Tenant’s
utilization of the parking areas in the event the same become overburdened and
in such case to equitably allocate on proportionate basis or assign parking
spaces among Tenant and the other tenants of the Building, provided Tenant at
all times has not less than 4.3 spaces per 1,000 square feet of the Premises.  Landlord shall have the right to establish
reasonable regulations, applicable to all tenants, governing the use of or
access to any interior or exterior common areas; and such regulations, when
communicated by written notification from Landlord to Tenant, shall be deemed
incorporated by reference hereinafter and part of this Lease.

 12
 

 

9.             ENVIRONMENTAL
MATTERS

(a)           Hazardous
Substances.

(i)            Tenant
shall not, except as provided in subparagraph (ii) below, bring or otherwise
cause to be brought or permit any of its agents, employees, contractors or
invitees to bring in, on or about any part of the Premises, Building or
Project, any hazardous substance or hazardous waste in violation of law, as
such terms are or may be defined in (x) the Comprehensive Environmental
Response, Compensation and Liability Act, 42 U.S.C. 9601 et  seq.,
as the same may from time to time be amended, and the regulations promulgated
pursuant thereto (“CERCLA”); the United States Department of Transportation
Hazardous Materials Table (49 CFR 172.102); by the Environmental Protection
Agency as hazardous substances (40 CFR Part 302); the Clean Air Act; and the
Clean Water Act, and all amendments, modifications or supplements thereto; (y)
the Industrial Site Recovery Act, formerly known as the Environmental Cleanup
Responsibility Act, N.J.S.A. 13:1K-6 et seq., as the same may from time to time
be amended, and the regulations promulgated pursuant thereto (“ISRA”); and/or
(z) any other rule, regulation, ordinance, statute or requirements of any governmental
or administrative agency regarding the environment (collectively, (x) and (y)
shall be referred to as an “Applicable Environmental Law”).

(ii)           Tenant may bring to
and use at the Premises, hazardous substances incidental to its normal business
operations under the SIC Code referenced in Article 1(1) above solely in de
minimis quantities and strictly in accordance with all Applicable Environmental
Law.  Tenant shall store and handle such
substances in strict accordance with all Applicable Environmental Law.

(b)           SIC Numbers.

(i)            Tenant represents
and warrants that (Standard Industrial Classification) number as designated in
the Standard Industrial Classification System Manual prepared by the Office of
Management and Budget, and as set forth in Article 1(1) hereof, is
correct.  Tenant represents that the
specific activities intended to be carried on in the Premises are in accordance
with Article 1(i) and Tenant covenants and agrees that it will not do or suffer
anything which will cause its SIC number (or that of any assignee or subtenant)
to fall within any of the following “major group” classifications of SIC
numbers during the Term (and any exercised renewal term) hereof: 22 through 39
inclusive, 46 through 49 inclusive, 51 and 76 (together the “Covered Numbers”).  Tenant further covenants and agrees to notify
Landlord at least thirty (30) days prior to any change of facts which would
result in the change of Tenant’s SIC number form its present number to any of
the covered Numbers.  Upon such notice,
Landlord shall have the right, at its option, to terminate this Lease within
thirty (30) days of receipt of such notice by notifying Tenant in writing.

(ii)           Tenant shall not
engage in operations at the Premises which involve the generation, manufacture,
refining, transportation, treatment, storage, handling or disposal of “hazardous
substances” or “hazardous waste” as such terms are defined under any Applicable
Environmental Law.  Tenant further
covenants that it will not cause or permit to exist 

 13
 

 

any “discharge”
(as such term is defined under Applicable Environmental Laws) on or about the
Premises.

(iii)          (A)          If Tenant’s operations at the Premises
now or hereafter constitute an “Industrial Establishment” subject to the
requirements of ISRA, then prior to: (1) closing operations or transferring
ownership or operations of Tenant at the Premises (as defined under ISRA), (2)
the expiration or sooner termination of this lease, or (3) any assignment of
this Lease or any subletting of any portion of the Premises; Tenant shall, at
its expense, comply with all requirements of ISRA pertaining thereto.  Without limitation of the foregoing, Tenant’s
obligations shall include (i) the proper filing of an initial notice under NJSA
13:1K-9(a) to the NJDEP and (ii) the performance of all remediation and other
requirements of ISRA, including without limitation all requirements of NJSA
13:1K-9(b) through and including (1).

(B)           In addition, upon
written request of Landlord, Tenant shall cooperate with Landlord in obtaining
Applicable Environmental Laws approval of any transfer of the Building.  Specifically in that regard, Tenant agrees
that it shall (1) execute and deliver all reasonable affidavits, reports,
responses to questions, applications or other filings required by Landlord and
related to Tenant’s activities at the Premises, (2) allow inspections and
testing of the Premises during normal business hours, and (3) as respects the
Premises, perform any requirement reasonably requested by Landlord necessary
for the receipt of approvals under Applicable Environmental Law, provided the
foregoing shall be at no out-of-pocket cost or expense to Tenant except for
clean-up and remediation costs arising from Tenant’s violation of this Article
9.

(iv)          The parties
acknowledge and agree that, except as provided in subparagraph (iii)(B) above
and unless caused by Landlord’s refinancing of the Building, pursuant to the
provisions of Section 20(c) of ISRA, Tenant shall be, and is hereby, designated
the party responsible (the “Party Responsible”) to comply with the requirements
of ISRA (P.L. 1983, c.330) with respect to the Premises, and that as a result,
the NJDEP may compel Tenant to so comply. 
In addition, any failure of Tenant to provide any information and
submission as required under Section 20(a) and Section 20(c) of ISRA shall
constitute a default under this Lease. 
Any assignee or subtenant of Tenant shall be deemed to have, and by
entering into such assignment or sublease, and/or by entering into possession
of the Premises, does hereby, acknowledge that they shall be the Party
Responsible, jointly and severally with Tenant, under the provisions of this
Lease.

(v)           In the event that
Tenant is not obligated to comply with Article 9(b)(iii) for any reason,
including without limitation inapplicability of ISRA to Tenant, then prior to
the expiration or sooner termination of this Lease or any subletting of any
portion of the Premises, Tenant shall, at Tenant’s expense, and at Landlord’s
option:

(A)          Obtain from the NJDEP
a “non-applicability letter” confirming that the proposed termination,
assignment or subletting shall not be subject to the requirements of ISRA.  Any representation or certification made by
Tenant in connection with the non-applicability letter request shall constitute
a representation and warranty by Tenant in favor of Landlord and any
misrepresentation or breach of warranty contained in Tenant’s request shall
constitute a default under this Lease; provided, however, if a
non-applicability letter is not 

 14
 

 

issued due to
factors relating solely to the Building or parties other than Tenant, then
Tenant shall be deemed to have complied with this provision.

(B)           If reasonably
indicated by a reputable environmental consultant engaged by Landlord, at
Landlord’s expense, Tenant shall remove “hazardous waste” or “hazardous waste”
attributable to Tenant’s occupancy at the Premises in a manner which complies
with NJDEP requirements under ISRA, at Tenant’s expense, as if ISRA applied to
Tenant and/or the Premises.

(vi)          In the event Tenant
is obligated, under this Article or otherwise, to perform and/or cooperate in
performing any ISRA obligations and/or obtain and/or cooperate in obtaining any
ISRA approval, by way of a non-applicability letter, “negative declaration”,
the performance of an approved remedial action work plan, the obtaining of a no
further action letter, the performance under a remediation agreement and/or
otherwise (collectively the “ISRA Obligations”) and, prior to fully performing
such ISRA Obligations, there occurs the scheduled expiration of the Term of
this Lease or any other termination of this Lease (collectively, a “Lease
Termination”); provided, however, that Tenant shall have any responsibility set
forth herein in the event that aforementioned IRSA obligations arise from
factors relating solely to the Building or parties other than Tenant, in which
case Tenant shall be deemed to have complied with this provision.

(c)           Additional Terms.  In the event of Tenant’s failure to comply in
full with this Article, Landlord may, after written notice to Tenant and Tenant’s
failure to cure within forty-five (45) days of its receipt of such notice, at
Landlord’s option, perform any and all of Tenant’s obligations as aforesaid and
all costs and expenses incurred by Landlord in the exercise of this right shall
be deemed to be Additional Rent payable on demand and with interest at the
Default Rate.  The parties acknowledge
and agree that Tenant shall not be held responsible for any environmental issue
at the Premises unless such issue was caused by an action or omission of Tenant
or its agents, employees, consultants or invitees.  This Article 9 shall survive the expiration
or sooner termination of this Lease.

10.           TENANT’S
ALTERATIONS

Tenant will not cut or drill into or secure any
fixture, apparatus or equipment or make alterations, improvements or physical
additions (collectively, “Alterations”) of any kind to any part of the Premises
without first obtaining the written consent of Landlord, such consent not to be
unreasonably withheld.  Alterations shall
be with Landlord’s consent, which shall not be unreasonably withheld and be
performed by Tenant, at its sole cost and expense.  Landlord’s consent shall not be required for
the installation of any office equipment or fixtures including internal
partitions which do not require disturbance of any structural elements or
systems (other than attachment thereto) within the Building.  Moreover, Landlord’s consent shall not be
required where (1) the improvement involved cost less than $50,000 each or an
aggregate of $200,000 per year and (2) the same shall not affect the Building
structure or systems or in any manner diminish or impair the value of the
Building as a modern, first class suburban office building.  If Landlord approves Tenant’s Alterations or
if no approval is required, Tenant, prior to the commencement of labor or
supply of any materials, must furnish to Landlord (i) a duplicate or original
policy or certificates of insurance evidencing (a) general public liability 

 15
 

 

insurance for personal
injury and property damage in the minimum amount of $1,000,000.00 combined
single limit, (b) statutory workman’s compensation insurance, and (c) employer’s
liability insurance from each contractor to be employed (all such policies
shall be non-cancelable without thirty (30) days prior written notice to
Landlord and shall be in amounts and with companies satisfactory to Landlord);
(ii) construction documents prepared and sealed by a registered New Jersey
architect if such alteration is in excess of $50,000; (iii) all applicable
building permits required by law; and (iv) an executed, effective Waiver of
Mechanics Liens from such contractors and all sub-contractors.  Any consent by Landlord permitting Tenant to
do any or cause any work to be done in or about the Premises shall be and
hereby is conditioned upon Tenant’s work being performed by workmen and
mechanics working in harmony and not interfering with labor employed by
Landlord, Landlord’s mechanics or their contractors or by any other tenant or
their contractors.  If at any time any of
the workmen or mechanics performing any of Tenant’s work shall be unable to
work in harmony or shall interfere with any labor employed by Landlord, other
tenants or their respective mechanics and contractors, then the permission
granted by Landlord to Tenant permitting Tenant to do or cause any work to be
done in or about the Premises, may be withdrawn by Landlord upon forty-eight
(48) hours written notice to Tenant.

All Alterations (whether temporary or permanent in character)
made in or upon the Premises (other than the Landlord Work which will remain on
the Premises), either by Landlord or Tenant, shall be Landlord’s property upon
installation and shall remain on the Premises without compensation to Tenant
and restore the Premises to good order and condition.  Notwithstanding the foregoing, Tenant shall
not be required to remove any initial improvements, including telecommunication
and electrical wiring, and for any improvements after the initial improvements
for which Tenant requests Landlord’s permission for installation and Landlord
approves said improvements, Landlord shall provide notice to Tenant that
Landlord will require the removal of said improvements at the time it gives
such consent and Tenant shall promptly remove such improvement at the end of
the term of the Lease (including all furniture, movable trade fixtures and
telecommunication equipment).  All such
installations, removals and restoration shall be accomplished in a good and
workmanlike manner so as not to damage the Premises or Building and in such
manner so as not to disturb other tenants in the Building.  If Tenant fails to remove any items required
to be removed pursuant to this Article, Landlord may do so and the reasonable
costs and expenses thereof shall be deemed Additional Rent hereunder and shall
be reimbursed by Tenant to Landlord within fifteen (15) business days of Tenant’s
receipt of an invoice therefor from Landlord.

11.           CONSTRUCTION
LIENS

(a)           Tenant will not
suffer or permit any contractor’s, subcontractor’s or supplier’s lien (a “Construction
Lien”) to be filed against the Premises or any part thereof by reason of work,
labor services or materials supplied or claimed to have been supplied to
Tenant; and if any Construction Lien shall at any time be filed against the
Premises or any part thereof, Tenant, within thirty (30) days after notice of
the filing thereof, shall cause it to be discharged of record by payment,
deposit, bond, order of a court of competent jurisdiction or otherwise.  If Tenant shall fail to cause such
Construction Lien to be discharged within the period aforesaid, then in
addition to any other right or remedy, Landlord may, but shall not be obligated
to, discharge it either by paying the amount claimed to be due or by procuring
the discharge of such 

 16
 

 

lien by
deposit or by bonding proceedings.  Any
amount so paid by Landlord, plus all of Landlord’s costs and expenses
associated therewith (including, without limitation, reasonable legal fees),
shall constitute Additional Rent payable by Tenant under this Lease and shall
be paid by Tenant to Landlord on demand with interest from the date of advance
by Landlord at the Default Rate.

12.           ASSIGNMENT AND
SUBLETTING

(a)           Subject to the
remaining subsections of Article 12, except as expressly permitted pursuant to
this section, Tenant shall not, without the prior written consent of Landlord,
such consent not to be unreasonably withheld, assign, transfer or hypothecate
this Lease or any interest herein or sublet the Premises or any part
thereof.  Tenant shall have the right to
assign or transfer any interest in this Lease to a subsidiary, parent or an
affiliate of Tenant or a successor to Tenant by way of merger, consolidation,
corporate reorganization or the purchase of all or substantially all of Tenant’s
assets, each without Landlord’s consent.

(b)           If at any time or
from time to time during the term of this Lease Tenant desires to assign this
Lease or sublet all or any part of the Premises, Tenant shall give notice to
Landlord of such desire, including the name, address and contact party for the
proposed assignee or subtenant, a description of such party’s business history,
the effective date of the proposed assignment or sublease (including the
proposed occupancy date by the proposed assignee or sublessee), and in the
instance of a proposed sublease, the square footage to be subleased, a floor
plan professionally drawn to scale depicting the proposed sublease area, and a
statement of the duration of the proposed sublease (which shall in any and all
events expire by its terms prior to the scheduled expiration of this Lease, and
immediately upon the sooner termination hereof).  If Tenant desires to assign this Lease or
sublet more than 20% of the Premises originally demised hereunder, then
Landlord may, at its option, and in its sole and absolute discretion,
exercisable by notice given to Tenant within twenty (20) days next following
Landlord’s receipt of Tenant’s notice (which notice from Tenant shall, as a
condition of its effectiveness, include all of the above-enumerated
information), elect to recapture the Premises if Tenant is proposing to sublet
or assign the Premises or such portion as is proposed by Tenant to be sublet
(and in each case, the designated and non-designated parking spaces included in
this demise, or a pro-rata portion thereof in the instance of the recapture of
less than all of the Premises), and terminate this Lease with respect to the
space being recaptured.

(c)           If Landlord elects
to recapture the Premises or a portion thereof as aforesaid, then from and
after the effective date thereof as approved by Landlord, after Tenant shall
have fully performed such obligations as are enumerated herein to be performed
by Tenant in connection with such recapture, and except as to obligations and
liabilities accrued and unperformed (and any other obligations expressly stated
in this Lease to survive the expiration or sooner termination of this Lease),
Tenant shall be released of and from all lease obligations thereafter otherwise
accruing with respect to the Premises (or such lesser portion as shall have
been recaptured by Landlord).  The
Premises, or such portion thereof as Landlord shall have elected to recapture,
shall be delivered by Tenant to Landlord free and clear of all furniture,
furnishings, personal property and removable fixtures, with Tenant repairing
and restoring any and all damage to the Premises resulting from the
installation, handling or removal thereof, and otherwise in the same condition
as Tenant is, by the terms of this Lease, required to redeliver the 

 17
 

 

Premises to
Landlord upon the expiration or sooner termination of this Lease.  In the event of a sublease of less than all
of the Premises, the cost of erecting any required demising walls, entrances
and entrance corridors, and any other or further improvements required in
connection therewith, including without limitation, modifications to HVAC,
electrical, plumbing, fire, life safety and security systems (if any),
painting, wallpapering and other finish items as may be acceptable to or
specified by Landlord, all of which improvements shall be made in accordance
with applicable legal requirements and Landlord’s then-standard base building
specifications, shall be performed by Landlord’s contractors, and shall be
shared 50% by Tenant and 50% by Landlord. 
Upon the completion of any recapture and termination as provided herein,
Tenant’s Fixed Rent, Recognized Expenses and other monetary obligations
hereunder shall be adjusted pro-rated based upon the reduced rentable square
footage then comprising the Premises.

(d)           if Landlord provides
written notification to Tenant electing not to recapture the Premises (or so
much thereof as Tenant had proposed to sublease), then Tenant may proceed to
market the designated space and may complete such transaction and execute an
assignment of this Lease or a sublease agreement (in each case in form
acceptable to Landlord) within a period of five (5) months next following
Landlord’s notice to Tenant that it declines to recapture such space, provided
that Tenant shall have first obtained in any such case the prior written
consent of Landlord to such transaction, which consent shall not be
unreasonably withheld.

For purposes of this Section 12(d), and without
limiting the basis upon which Landlord may withhold its consent to any proposed
assignment or sublease, the parties agree that it shall not be unreasonable for
Landlord to withhold its consent to such assignment or sublease if: (i) the
proposed assignee or sublessee shall have a net worth which is not acceptable
to Landlord in Landlord’s reasonable discretion; (ii) the proposed assignee or
sublessee shall have no reliable credit history or an unfavorable credit
history, or other reasonable evidence exists that the proposed assignee or
sublessee will experience difficulty in satisfying its financial or other
obligations under this Lease; (iii) the portion of the Premises requested to be
subleased renders the balance of the Premises unleasable as a separate area;
(iv) Tenant is proposing to assign or sublease to an existing tenant of the
Building or another property owned by Landlord or by its partners, or to
another prospect with whom Landlord or its partners, or their affiliates are
then negotiating (v) the proposed assignee or sublessee will cause Landlord’s
existing parking facilities to be reasonably inadequate, or in violation of
code requirements, or require Landlord to increase the parking area or the
number of parking spaces to meet code requirements, or (vi) the nature of such
party’s proposed business operation would or might reasonably permit or require
the use of the Premises in a manner inconsistent with the “Permitted Use”
specified herein, would or might reasonably otherwise be in conflict with
express provisions of this Lease, would or might reasonably violate the terms
of any other lease for the Building, or would, in Landlord’s reasonable
judgment, otherwise be incompatible with other tenancies in the Building.

(e)           Any
sums or other economic consideration received by Tenant as a result of any
subletting, assignment or license (except rental or other payments received
which are attributable to the amortization of the cost of leasehold
improvements made to the sublet or assigned portion of the premises by Tenant
for subtenant or assignee, and other reasonable expenses incident to the
subletting or assignment, including standard leasing commissions) whether
denominated rentals under the sublease or otherwise, which exceed, in the
aggregate, the 

 18
 

 

total sums which Tenant is obligated to pay Landlord under this Lease
(prorated to reflect obligations allocable to that portion of the premises
subject to such sublease or assignment) shall be divided evenly between
Landlord and Tenant, with Landlord’s portion being payable to Landlord as
Additional Rental under this Lease without affecting or reducing any other
obligation of Tenant hereunder.

(f)            Regardless
of Landlord’s consent, no subletting or assignment shall release Tenant of
Tenant’s obligation or alter the primary liability of Tenant to pay the Rent
and to perform all other obligations to be performed by Tenant hereunder.  The acceptance of rental by Landlord from any
other person shall not be deemed to be a waiver by Landlord of any provision
hereof.  Consent to one assignment or
subletting shall not be deemed consent to any subsequent assignment or
subletting.  In the event of default by
any assignee of Tenant or any successor of Tenant in the performance of any of
the terms hereof, Landlord may proceed directly against Tenant without the
necessity of exhausting remedies against such assignee or successor.

(g)           In
the event that (i) the Premises or any part thereof are sublet and Tenant is in
default under this Lease, or (ii) this Lease is assigned by Tenant, then,
Landlord may collect Rent from the assignee or subtenant and apply the net
amount collected to the rent herein reserved; but no such collection shall be
deemed a waiver of the provisions of this Article 12 with respect to assignment
and subletting, or the acceptance of such assignee or subtenant as Tenant
hereunder, or a release of Tenant from further performance of the covenants
herein contained.

(h)           Tenant
may, after notice to, but without the consent of Landlord, assign this Lease to
an affiliate (i.e., a corporation 50% or more of whose capital stock is owned
by the same stockholders owning 50% or more of Tenant’s capital stock), parent
or subsidiary corporation of Tenant or to a corporation to which it sells or
assigns all of substantially all of its assets or stock or with which it may be
consolidated or merged (“Affiliate”), provided such purchasing, consolidated,
merged, affiliated or subsidiary corporation shall, in writing, assume and
agree to perform all of the obligations of Tenant under this Lease, shall have
a net worth of at least $10,000,000 and it shall deliver such assumption with a
copy of such assignment to Landlord within ten (10) days thereafter, and
provided further that Tenant shall not be released or discharged from any
liability under this Lease by reason of such assignment.  At Landlord’s option, Landlord shall be
entitled to a security deposit from such assignee in the amount of one month’s
Fixed Rent at the highest rental rate during the Term.

(i)            In
connection with each proposed assignment or subletting of the Premises by
Tenant, Tenant shall pay to Landlord an administrative fee of $250 per request
(including requests for non-disturbance agreements and Landlord’s or its lender’s
waivers) in order to defer Landlord’s administrative expenses arising from such
request.

(j)            Anything in this
Article 12 to the contrary notwithstanding, no assignment or sublease shall be
permitted under this Lease if Tenant is in default at the time of such
assignment.

 19
 

 

13.           LANDLORD’S RIGHT
OF ENTRY

Landlord and persons authorized by Landlord may enter
the Premises at all reasonable times upon reasonable advance notice (except in
the case of an emergency in which case no prior notice is necessary) for the
purpose of inspections, repairs, alterations to adjoining space, appraisals, or
other reasonable purposes; including enforcement of Landlord’s rights under
this Lease.  Landlord shall not be liable
for inconvenience to or disturbance of Tenant by reason of any such entry;
provided, however, that such entry and activities shall be done, so far as
practicable and without increasing the cost to Landlord, so as to not
unreasonably interfere with Tenant’s use of the Premises and provided that
Landlord shall be responsible for any negligence or willful acts in connection
with such entry and activities.  Landlord
also shall have the right to enter the Premises at all reasonable times after
giving at least twenty-four (24) written notice to Tenant, to exhibit the
Premises to any prospective purchaser, tenant and/or mortgagee.

14.           REPAIRS AND MAINTENANCE

(a)           Except as
specifically otherwise provided in subparagraphs (b) and (c) of this Article,
Tenant, at its sole cost and expense and throughout the Term of this Lease,
shall keep and maintain the Premises in good order and condition, free of
accumulation of dirt and rubbish, and shall promptly make all non-structural
repairs necessary to keep and maintain such good order and condition.  Landlord shall replace lights, ballasts,
tubes, ceiling tiles, outlets and similar equipment as required for repairs or
replacement and the charge or cost associated with same shall be included as
part of Recognized Expenses as set forth in Section 6. Landlord shall make such
repairs or replacements to the Premises within a reasonable time of notice to
Landlord.  Tenant shall not use or permit
the use of any portion of the Premises for outdoor storage.  When used in this Article 14, the term “repairs”
shall include replacements and renewals when necessary.  All repairs made by Tenant shall utilize materials
and equipment which are at least equal in quality and usefulness to those
originally used in constructing the Building and the Premises.

(b)           Landlord, throughout
the Term of this Lease and at Landlord’s sole cost and expenses, shall make all
necessary repairs to the footings and foundations, exterior walls, roof and the
structural steel columns and girders forming a part of the Premises.

(c)           Landlord shall
maintain all HVAC systems, plumbing and electric systems serving the Building
and the Premises with the exception of any systems installed as a Tenant
Improvement or an Alteration such as supplemental HVAC equipment (“Tenant’s
Specialized Systems”).  Tenant shall
maintain Tenant’s Specialized Systems at Tenant’s sole cost and expense.  Tenant’s Allocated Share of Landlord’s cost
for HVAC, electric and plumbing service, maintenance and repairs, as limited
under Article 6 with respect to capital expenditures, shall be included as a
portion of Recognized Expenses as provided in Article 6 hereof.

(d)           Landlord, throughout
the Term of this Lease, shall make all necessary repairs to the Building
outside of the Premises and to the common areas, including the roof, walls,
exterior portions of the Premises and the Building, utility lines, equipment
and other utility facilities in the Building, and to any driveways, sidewalks,
curbs, loading, parking and

 20

 

landscaped
areas, and other exterior improvements for the Building; provided, however,
that Landlord shall have no responsibility to make any repairs unless and until
Landlord receives written notice of the need for such repair or Landlord has
actual knowledge of the need to make such repair.  Tenant shall pay its Allocated Share of the
cost of all repairs, as limited under Article 6 with respect to capital
repairs, to be performed by Landlord pursuant to this Paragraph 14(d) as
Additional Rent as provided in Article 6 hereof.

(e)           Landlord shall keep
and maintain all common areas appurtenant to the Building and any sidewalks,
parking areas, curbs and access ways adjoining the Property in a clean and
orderly condition, free of accumulation of dirt, rubbish, snow and ice, and
shall keep and maintain all landscaped areas in a neat and orderly
condition.  Tenant shall pay its
Allocated Share of the cost of all work to be performed by Landlord pursuant to
this Paragraph (e) as Additional Rent as provided in Article 6 hereof.

(f)            Notwithstanding
anything herein to the contrary, repairs to the Premises, Building or Project
and its appurtenant common areas made necessary by a negligent or willful act
or omission of Landlord or Tenant or any employee, agent, contractor, or
invitee of Landlord or Tenant shall be made at the sole cost and expense of the
other party, except to the extent of insurance proceeds received by the other.

(g)           Landlord shall
provide Tenant with janitorial services for the Premises Monday through Friday
of each week in accordance with the guidelines set forth in Exhibit “D”
attached hereto and the Tenant shall pay its Allocated Share of the cost
thereof as Additional Rent as provided in Article 6 hereof.

15.           INSURANCE;
SUBROGATION RIGHTS

(a)           Tenant shall obtain
and keep in force at all times during the term hereof, at its own expense,
comprehensive general liability insurance including contractual liability and
personal injury liability and all similar coverage, with combined single limits
of $2,000,000.00.  Tenant shall also
require its movers to procure and deliver to Landlord a certificate of
insurance naming Landlord as an additional insured.

(b)           Tenant shall, at its
sole cost and expense, maintain in full force and effect on all Tenant’s trade
fixtures, equipment and personal property on the Premises, a policy of all risk
property insurance covering the full replacement value of such property.

(c)           All insurance
required hereunder shall not be subject to cancellation without at least thirty
(30) days prior notice to all insureds, and shall name Landlord, Brandywine
Realty Trust, Brandywine Operating Partnership, L.C., as an additional insured,
as their interests may appear, and, if requested by Landlord, shall also name
as an additional insured any mortgagee or holder of any mortgage which may be
or become a lien upon any part of the Premises. 
Prior to the commencement of the Term, Tenant shall provide Landlord
with certificates which evidence that the coverages required have been
obtained.  Tenant shall also furnish to
Landlord throughout the term hereof replacement certificates, at least thirty
(30) days prior to the expiration dates of the then current policy or
policies.  All the insurance required
under this Lease shall be issued by insurance companies authorized to do 

 21
 

 

business in
the State of New Jersey with a financial rating of at least an A-X as rated in
the most recent edition of Best’s Insurance Reports and in business for the
past five years.  The limit of any such
insurance shall not limit the liability of Tenant hereunder.  If Tenant fails to procure and maintain such
insurance, Landlord shall notify Tenant and Tenant shall provide evidence of
such insurance within ten (10) days of the written demand.  Medquist, Inc. may self insure and maintain a
deductible in excess of $20,000; provided that this right shall not apply to
any assignee or subtenant which shall not maintain any deductible in excess of
$20,000 or self-insure unless approved in writing by Landlord.  The policy limits set forth herein shall be
subject to periodic review, and Landlord reserves the right to require that
Tenant increase the liability coverage limits if, in the reasonable opinion of
Landlord, the coverage becomes inadequate or is less than commonly maintained by
tenants of similar buildings in the area making similar uses.

(d)           Landlord shall
obtain and maintain the following insurance during the Term of this Lease: (i)
replacement cost insurance including all risk perils on the Building and on the
Project, (ii) builder’s risk insurance for the Landlord Work to be constructed
by Landlord in the Project, and (iii) comprehensive commercial liability
insurance (including bodily injury and property damage) covering Landlord’s
operations at the Project in amounts reasonably required by the Landlord’s
lender or Landlord.

(e)           Each party hereto,
and anyone claiming through or under them by way of subrogation, waives and
releases any cause of action it might have against the other party and Landlord
and Brandywine Realty Trust, and their respective employees, officers, members,
partners, trustees and agents, on account of any loss or damage that is insured
against under any insurance policy required to be obtained hereunder (to the
extent that such loss or damage is recoverable under such insurance policy)
that covers the Project, Building or Premises, Landlord’s or Tenant’s fixtures,
personal property, leasehold improvements or business and which names Landlord
and Brandywine Realty Trust or Tenant, as the case may be, as a party
insured.  Each party hereto agrees that
it will cause its insurance carrier to endorse all applicable policies waiving
the carrier’s right of recovery under subrogation or otherwise against the
other party.  During any period while
such waiver of right of recovery is in effect, each party shall look solely to
the proceeds of such policies for compensation for loss, to the extent such
proceeds are paid under such policies.

16.           INDEMNIFICATION

(a)           Tenant shall defend,
indemnify and hold harmless Landlord and Brandywine Realty Trust and their
respective partners, officers, trustees, employees and agents from and against
any and all third-party claims, actions, damages, liability and expense
(including all reasonable attorney’s fees, expenses and liabilities incurred in
defense of any such claim or any action or proceeding brought thereon) arising
from (i) any activity, work or things done, permitted or suffered by Tenant or
its agents, licensees or invitees in or about the Premises or elsewhere
contrary to the requirements of the Lease, (ii) any breach or default in the
performance of any obligation of Tenant’s part to be performed under the terms
of this Lease, and (iii) any negligence or willful act of Tenant or any of
Tenant’s agents, contractors, employees or invitees.  Without limiting the generality of the
foregoing, Tenant’s obligations shall include any case in which Landlord or
Brandywine Realty Trust shall be made a party to any litigation commenced by or
against Tenant, its agents, subtenants, licensees, concessionaires, 

 22
 

 

contractors,
customers or employees, in which event Tenant shall defend, indemnify and hold
harmless Landlord, or Brandywine Realty Trust and shall pay all costs, expenses
and reasonable attorney’s fees incurred or paid by Landlord, and Brandywine
Realty Trust in connection with such litigation, after notice to Tenant and
Tenant’s refusal to defend such litigation, and upon notice from Landlord shall
defend the same at Tenant’s expense by counsel satisfactory to Landlord.

(b)           Landlord shall
defend, indemnify and hold harmless Tenant and its employees and agents from
and against any and all third-party claims, actions, damages, liability and
expense (including all attorney’s fees, expenses and liabilities incurred in
defense of any such claim or any action or proceeding brought thereon) arising
from (i) any activity, work or things done, permitted or suffered by Landlord
or Brandywine Realty Trust in or about the Project or elsewhere contrary to the
requirements of the Lease, (ii) any breach or default in the performance of any
obligation on Landlord’s part to be performed under the terms of this Lease,
and (iii) any negligence or willful act of Landlord or Brandywine Realty Trust
or any of Landlord’s agents, contractors or employees, and in case Tenant shall
be made a party to any litigation commenced by or against Landlord or
Brandywine Realty Trust, its agents, contractors or employees, then Landlord
shall defend, indemnify and hold harmless Tenant and shall pay all costs,
expenses and reasonable attorney’s fees incurred or paid by Tenant in
connection with such litigation, after notice to Landlord and Landlord’s
refusal to defend such litigation, and upon notice from Tenant shall defend the
same at Landlord’s expense by counsel satisfactory to Tenant.  Landlord shall further indemnify and hold
harmless Tenant from and against any and all third-party claims, actions,
damages, liability and expense (including, without limitation, reasonable attorney’s
fees and disbursements) which may be imposed upon or incurred by or asserted
against Tenant by reason of loss of life, personal injury and/or damage to
property occurring in or about, or arising out of, the Premises, adjacent
sidewalks and loading platforms or areas and common areas appurtenant to the
Building occasioned by reason of any act or omission of Landlord or Brandywine
Realty Trust, its agents, contractors or employees.

17.           QUIET ENJOYMENT

Tenant shall peaceably and quietly hold and enjoy the
Premises for the Term, without hindrance from Landlord, or anyone claiming by
through or under Landlord under and subject to the terms and conditions of this
Lease.

18.           FIRE DAMAGE

(a)           Except as provided
below, in case of damage to the Premises by fire or other insured casualty,
Landlord shall repair the damage.  Such
repair work shall be commenced promptly following notice of the damage and
completed with due diligence, taking into account the time required for
Landlord to effect a settlement with and procure insurance proceeds from the
insurer, except for delays due to governmental regulation, scarcity of or
inability to obtain labor or materials, intervening acts of God or other causes
beyond Landlord’s reasonable control.

(b)           Notwithstanding the
foregoing, if (i) the damage is of a nature or extent that, in Landlord’s
reasonable judgment (to be communicated to Tenant within thirty (30) 

 23
 

 

days from the
date of the casualty), the repair and restoration work would require more than
one hundred eighty (180) consecutive days to complete after the casualty
(assuming normal work crews not engaged in overtime), or (ii) if more than
thirty (30%) percent of the total area of the Building is extensively damaged
or materially and adversely interferes with the conduct of Tenant’s business,
or (iii) the casualty occurs in the last Lease Year of the Term and Tenant has
not exercised a renewal right, either party shall have the right to terminate
this Lease and all the unaccrued obligations of the parties hereto, by sending
written notice of such termination to the other within ten (10) days of Tenant’s
receipt of the notice from Landlord described above.  Such notice is to specify a termination date
no less than fifteen (15) days after its transmission.

(c)           If the nature of
loss is not covered, by Landlord’s fire insurance or if such proceeds are
unavailable, Landlord may elect either to (i) repair the damage as above
provided notwithstanding such fact or (ii) Landlord or Tenant may terminate
this Lease by giving notice of such election as aforesaid.

(d)           In the event
Landlord has not completed restoration of the Premises within one hundred
eighty (180) days from the date of casualty, Tenant may terminate this Lease by
written notice to Landlord within thirty (30) business days following the
expiration of such 180 day period unless, within thirty (30) business days
following receipt of such notice, Landlord has substantially completed such
restoration and delivered the Premises to Tenant for occupancy.

In the event of damage or destruction to the Premises
or any part thereof, Tenant’s obligation to pay Fixed Rent and Additional Rent
shall be equitably adjusted or abated.

19.           SUBORDINATION;
RIGHTS OF MORTGAGEE

(a)           This
Lease shall be subject and subordinate at all times to the lien of any
mortgages now or hereafter placed upon the Premises, Building and/or Project
and land of which they are a part without the necessity of any further
instrument or act on the part of Tenant to effectuate such subordination,
provided, however, that so long as Tenant or its successors or assigns is not
in default under any of the provisions of this Lease: (i) the interest of
Tenant and its successors, assigns and subtenants under this Lease shall not be
diminished or interfered with, (ii) Tenant, its successors, assigns and
subtenants may remain undisturbed and in quiet possession under this Lease, and
(c) no such rights shall be disturbed by any proceeding taken by the mortgagee
against Landlord or by foreclosure by the mortgagee.  Tenant further agrees to execute and deliver
upon demand such further instrument or instruments evidencing such
subordination of this Lease to the lien of any such mortgage and such further
instrument or instruments of attornment as shall be reasonably requested by any
mortgagee or proposed mortgagee or by or by a ground lessor, licensor or party
to an agreement under any such ground lease, license or agreement,
respectively.  Notwithstanding the
foregoing, any mortgagee may at any time subordinate its mortgage to this Lease,
without Tenant’s consent, by notice in writing to Tenant, and thereupon this
Lease shall be deemed prior to such mortgage without regard to their respective
dates of execution and delivery and in that event such mortgagee shall have the
same rights with respect to this Lease as though it had been executed prior to
the execution and delivery of the mortgage.

 24
 

 

(b)           In
the event Landlord shall be or is alleged to be in default of any of its
obligations owing to Tenant under this Lease, Tenant agrees to give to the
holder of any mortgage (collectively the “Mortgagee”) now or hereafter placed
upon the Premises, Building and/or Project, notice as may be reasonably
required by such Mortgagee.

(c)           Landlord
shall deliver a subordination, attornment and nondisturbance agreement (“Nondisturbance
Agreement”) from each Landlord’s Mortgagee, on each such mortgagee’s standard
form, which shall provide, inter alia, that the leasehold estate granted to
Tenant under this Lease will not be terminated or disturbed by reason of the
foreclosure of the mortgage held by Landlord’s Mortgagee, so long as Tenant
shall not be in default under this Lease and shall pay all sums due under this
Lease without offsets or defenses thereto, except as specifically set forth
herein, and shall fully perform and comply with all of the terms, covenants and
conditions of this Lease on the part of Tenant to be performed and/or complied
with, and in the event a mortgagee or its respective successor or assigns shall
enter into and lawfully become possessed of the Premises covered by this Lease
and shall succeed to the rights of Landlord hereunder, Tenant will attorn to
the successor as its landlord under this Lease and, upon the request of such
successor landlord, Tenant will execute and deliver an attornment agreement in
favor of the successor landlord.

20.           CONDEMNATION

(a)           If
the Property or any portion thereof shall be taken under the power of eminent
domain or conveyed in lieu thereof, the taking of which materially and
adversely interferes with the conduct of Tenant’s business, then Tenant shall
have the right to terminate this Lease at such time by furnishing written
notice to Landlord.  If Tenant does not
terminate this Lease, Landlord shall proceed with due diligence to make all
repairs necessary to restore the Property to as near its former condition as
circumstances will permit and the Lease shall remain in full force and effect,
except that, effective on the date of taking or conveyance, the Premises shall
be reduced by the portion of the Premises, so taken or conveyed, and the Rent
shall be proportionately reduced by the portion of the Premises taken or
conveyed.  Damages awarded to Landlord
for such taking or conveyance shall belong to Landlord, provided that Tenant
may assert a claim solely for the unamortized cost of any leasehold
improvements paid for by Tenant, Tenant’s personal property, fixtures and
moving expenses.

(b)           If the Premises is
taken or if neither Landlord nor Tenant have elected to terminate this Lease
pursuant to the preceding statement, Landlord shall do such work as may be
reasonably necessary to restore the portion of the Premises not taken to
tenantable condition for Tenant’s uses provided however, if Landlord determines
that the net award/damages available for restoration of the Premises, Building
and/or Project will not be sufficient to pay the cost of restoration, or if the
condemnation damage award is required to be applied on account of any mortgage
which encumbers any part of the Premises, Building and/or Project, Landlord may
terminate this Lease by giving Tenant thirty (30) days prior notice specifying
the termination date which shall be the date title to the condemned real estate
vests in the condemnor.

 25
 

 

21.           ESTOPPEL
CERTIFICATE

Each party agrees at any time and from time to time,
within ten (10) days after the other party’s written request, to execute,
acknowledge and deliver to the other party a written instrument in recordable
form certifying that this Lease is unmodified and in full force and effect (or
if there have been modifications, that it is in full force and effect as
modified and stating the modifications), and the dates to which Rent,
Additional Rent, and other charges have been paid in advance, if any, and
stating whether or not to the best knowledge of the party signing such
certificate, the requesting party is in default in the performance of any
covenant, agreement or condition contained in this Lease and, if so, specifying
each such default of which the signer may have knowledge.  It is intended that any such certification
and statement delivered pursuant to this Article may be relied upon by any
prospective purchaser of the Project or any mortgagee thereof or any assignee
of Landlord’s interest in this Lease or of any mortgage upon the fee of the
Premises or any part thereof.

22.           DEFAULT

(a)           If:

(i)            Tenant fails to pay
any installment of Fixed Rent or any amount of Additional Rent when due;
provided, however, Tenant shall have seven (7) days to cure such delinquency
after receipt of written notice from Landlord.

(ii)           Tenant fails to
observe or perform any of Tenant’s other non-monetary agreements or obligations
herein contained within thirty (30) days after written notice specifying the
default, or the expiration of such additional time period as is reasonably
necessary to cure such default, provided Tenant immediately commences and
thereafter proceeds with all due diligence and in good faith to cure such
default,

(iii)          Tenant makes any
assignment for the benefit of creditors,

(iv)          a petition is filed
or any proceeding is commenced against Tenant or by Tenant under any federal or
state bankruptcy or insolvency law and such petition or proceeding is not
dismissed within ninety (90) days,

(v)           a receiver or other
official is appointed for Tenant or for a substantial part of Tenant’s assets
or for Tenant’s interests in this Lease,

(vi)          any attachment or
execution against a substantial part of Tenant’s assets or of Tenant’s
interests in this Lease remains unstayed or undismissed for a period of more
than twenty (20) days, or

(vii)         a substantial part
of Tenant’s assets or of Tenant’s interest in this Lease is taken by legal
process in any action against Tenant, then, in any such event, an Event of
Default shall be deemed to exist and Tenant shall be in default hereunder.

If an Event of Default shall occur, the following
provisions shall apply and Landlord shall have, in addition to all other rights
and remedies available at law or in equity, the rights and remedies 

 26
 

 

set forth therein, which rights and remedies may be
exercised upon or at any time following the occurrence of an Event of Default
unless, prior to such exercise, Landlord shall agree in writing with Tenant
that the Event(s) of Default has been cured by Tenant in all respects.

(b)           Acceleration of
Rent.  By notice to Tenant, Landlord
shall have the right to accelerate all Fixed Rent and all expense installments
due hereunder and otherwise payable in installments over the remainder of the
Term, and, at Landlord’s option, any other Additional Rent to the extent that
such Additional Rent can be determined and calculated to a fixed sum; and the
amount of accelerated rent to the termination date, without further notice or
demand for payment, shall be due and payable by Tenant within ten (10) days
after Landlord has so notified Tenant, such amount collected from Tenant shall
be discounted to present value using an interest rate of six percent (6%) per
annum.  Additional Rent which has not
been included, in whole or in part, in accelerated rent, shall be due and
payable by Tenant during the remainder of the Term, in the amounts and at the
times otherwise provided for in this Lease.

If Tenant pays the accelerated Rent as set forth in
the prior paragraph, Tenant shall have the right to continued possession of the
Premises or a right to a credit pursuant to Sections 22(c) and 22(d) below.

Notwithstanding the foregoing or the application of
any rule of law based on election of remedies or otherwise, if Tenant fails to
pay the accelerated rent in full when due, Landlord thereafter shall have the
right by notice to Tenant, (i) to terminate Tenant’s further right to
possession of the Premises and (ii) to terminate this Lease under subparagraph
(b) below; and if Tenant shall have paid part but not all of the accelerated
rent, the portion thereof attributable to the period equivalent to the part of
the Term remaining after Landlord’s termination of possession or termination of
this Lease shall be applied by Landlord against Tenant’s obligations owing to
Landlord, as determined by the applicable provisions of subparagraphs (c) and
(d) below.

(c)           Termination of
Lease.  By notice to Tenant, Landlord
shall have the right to terminate this Lease as of a date specified in the
notice of termination, which termination date shall be at least forty-five (45)
days from the date of Tenant’s receipt of such notice, and in such case, Tenant’s
rights, including any based on any option to renew, to the possession and use
of the Premises shall end absolutely as of the termination date; and this Lease
shall also terminate in all respects except for the provisions hereof regarding
Landlord’s damages and Tenant’s liabilities arising prior to, out of and
following the Event of Default and the ensuing termination.

Following such termination and the notice of same
provided above (as well as upon any other termination of this Lease by
expiration of the Term or otherwise) Landlord immediately shall have the right
to recover possession of the Premises; and to that end, Landlord may enter the
Premises and take possession, without the necessity of giving Tenant any
additional notice to quit or any other further notice, with legal process or
proceedings, and in so doing Landlord may remove Tenant’s property (including
any improvements or additions to the Premises which Tenant made, unless made with
Landlord’s consent which expressly permitted Tenant to not remove the same upon
expiration of the Term), as well as the property of others as 

 27
 

 

may be in the Premises,
and make disposition thereof in such manner as Landlord may deem to be
commercially reasonable and necessary under the circumstances.

(d)           Tenant’s
Continuing Obligations/Landlord’s Reletting Rights.

(i)            Unless and until
Landlord shall have terminated this Lease under subparagraph (b) above, Tenant
shall remain fully liable and responsible to perform all of the covenants and
to observe all the conditions of this Lease throughout the remainder of the
Term to the early termination date; and, in addition, Tenant shall pay to
Landlord, upon demand and as Additional Rent, the total sum of all costs,
losses, damages and expenses, including reasonable attorneys’ fees, as Landlord
incurs because of any Event of Default having occurred.

(ii)           If Landlord either
terminates Tenant’s right to possession without terminating this Lease or
terminates this Lease and Tenant’s leasehold estate as above provided, then,
subject to the provisions below, Landlord shall have the unrestricted right to
relet the Premises or any part(s) thereof to such tenant(s) on such provisions
and for such period(s) as Landlord may deem appropriate.  Landlord agrees, however, to use reasonable
efforts to mitigate its damages, provided that Landlord shall not be liable to
Tenant for its inability to mitigate damages if it shall endeavor to relet the
Premises in like manner as it offers other comparable vacant space or property
available for leasing to others in the Project of which the Building is a part
or another property owned by Landlord or its partners or affiliates within a
two (2) mile radius of the Building.  If
Landlord relets the Premises after such a default, the costs recovered from
Tenant shall be reallocated (or refunded as the case may be) to take into
consideration any additional rent which Landlord receives from the new tenant
which is in excess to that which was owed by Tenant.

(e)           Landlord’s
Damages.

(i)            The damages which
Landlord shall be entitled to recover from Tenant shall be the sum of:

(A)          all Fixed Rent and
Additional Rent accrued and unpaid as of the termination date; and

(B)           i) all costs
and expenses incurred by Landlord in recovering possession of the Premises,
including removal and storage of Tenant’s property, (ii) the costs and expenses
of restoring the Premises to the condition in which the same were to have been
surrendered by Tenant as of the expiration of the Term, and (iii) the costs of
reletting commissions; and

(C)           all Fixed Rent and
Additional Rent (to the extent that the amount(s) of Additional Rent has been
then determined) otherwise payable by Tenant over the remainder of the Term as
reduced to present value.

Less deducting from the total determined under
subparagraphs (A), (B) and (C) all Rent and all other Additional Rent to the
extent determinable as aforesaid, (to the extent that like charges would have
been payable by Tenant) which Landlord receives from other tenant(s) by reason
of the leasing of the Premises or part during or attributable to any period
falling within the 

 28
 

 

otherwise remainder of the Term.  Landlord shall not be entitled to a windfall
in the event Landlord collected accelerated rent and then is able to relet the
Premises.

(ii)           The damage sums
payable by Tenant under the preceding provisions of this paragraph (d) shall be
payable on demand from time to time as the amounts are determined; and if from
Landlord’s subsequent receipt of rent as aforesaid from reletting, there be any
excess payment(s) by Tenant by reason of the crediting of such rent thereafter
received, the excess payment(s) shall be promptly refunded by Landlord to
Tenant, without interest.

(iii)          Landlord may enforce
the provisions of this Lease and may enforce and protect the rights of Landlord
hereunder by a suit or suits in equity or at law for the specific performance
of any covenant or agreement contained herein, and for the enforcement of any
other appropriate legal or equitable remedy, including, without limitation,
injunctive relief, and for recovery of all moneys due or to become due from
Tenant under any of the provisions of this Lease.

(f)            Landlord’s Right
to Cure.  Without limiting the
generality of the foregoing, if Tenant shall be in default in the performance
of any of its obligations hereunder, Landlord, without being required to give
Tenant any notice or opportunity to cure, may (but shall not be obligated to do
so), in addition to any other rights it may have in law or in equity, cure such
default on behalf of Tenant, and Tenant shall reimburse Landlord upon demand
for any sums paid or costs incurred by Landlord in curing such default,
including reasonable attorneys’ fees and other legal expenses, together with
interest at 10% per annum Rate from the dates of Landlord’s incurring of costs
or expenses.

(g)           Landlord’s
Statutory Rights.  Landlord shall
have all rights and remedies now or hereafter existing at law with respect to
the enforcement of Tenant’s obligations hereunder and the recovery of the
Premises.  No right or remedy herein
conferred upon or reserved to Landlord shall be exclusive of any other right or
remedy, but shall be cumulative and in addition to all other rights and
remedies given hereunder or now or hereafter existing at law.  Landlord shall be entitled to seek injunctive
relief in case of the violation, or attempted or threatened violation, of any
covenant, agreement, condition or provision of this Lease, or to seek a decree
compelling performance of any covenant, agreement, condition or provision of
this Lease.

(h)           Remedies Not
Limited.  Nothing herein contained
shall limit or prejudice the right of Landlord to exercise any or all rights
and remedies available to Landlord by reason of default or to prove for and
obtain in proceedings under any bankruptcy or insolvency laws, an amount equal
to the maximum allowed by any law in effect at the time when, and governing the
proceedings in which, the damages are to be proved, whether or not the amount
be greater, equal to, or less than the amount of the loss or damage referred to
above.

(i)            No Waiver by
Landlord.  No delay or forbearance by
Landlord in exercising any right or remedy hereunder, or Landlord’s undertaking
or performing any act or matter which is not expressly required to be
undertaken by Landlord shall be construed, respectively, to be a waiver of
Landlord’s rights or to represent any agreement by Landlord to undertake or
perform such act or matter thereafter. 
Waiver by Landlord of any breach by Tenant 

 29
 

 

of any
covenant or condition herein contained (which waiver shall be effective only if
so expressed in writing by Landlord) or failure by Landlord to exercise any
right or remedy in respect of any such breach shall not constitute a waiver or
relinquishment for the future of Landlord’s right to have any such covenant or
condition duly performed or observed by Tenant, or of Landlord’s rights arising
because of any subsequent breach of any such covenant or condition nor bar any
right or remedy of Landlord in respect of such breach or any subsequent
breach.  Landlord’s receipt and
acceptance of any payment from Tenant which is tendered not in conformity with
the provisions of this Lease or following an Event of Default (regardless of
any endorsement or notation on any check or any statement in any letter
accompanying any payment) shall not operate as an accord and satisfaction or a
waiver of the right of Landlord to recover any payments then owing by Tenant
which are not paid in full, or act as a bar to the termination of this Lease
and the recovery of the Premises because of Tenant’s previous default.

(j)            No Waiver by
Tenant.  No delay or forbearance by
Tenant in exercising any right or remedy under the Lease, or Tenant’s
undertaking or performing any act or matter which is not expressly required to
be undertaken by Tenant shall be construed, respectively, to be a waiver of
Tenant’s rights or to represent any agreement by Tenant to undertake or perform
such act or matter thereafter.  Waiver by
Tenant of any breach by Landlord of any covenant or condition herein contained
(which waiver shall be effective only if so expressed in writing by Tenant) or
failure by Tenant to exercise any right or remedy in respect of any such breach
shall not constitute a waiver or relinquishment for the future of Tenant’s
right to have any such covenant or condition duly performed or observed by
Landlord, or of Tenant’s rights arising because of any subsequent breach of any
such covenant or condition nor bar any right or remedy of Tenant in respect of
such breach or any subsequent breach.

23.           LANDLORD’S LIEN.  Intentionally omitted.

24.           LANDLORD’S
REPRESENTATIONS AND WARRANTIES

Landlord represents and warrants to Tenant that as of
the date hereof: (a) Landlord is the fee owner of the Project free and
clear of any mortgages and/or superior leases as of the date of execution of
this Lease, and (b) Landlord has the authority to enter into this Lease and
perform all of its obligations hereunder.

25.           SURRENDER

Tenant shall, at the expiration of the Term, promptly
quit and surrender the Premises in good order and condition and in conformity
with the applicable provisions of this Lease, excepting only reasonable wear
and tear and damage by fire or other insured casualty.  Tenant shall have no right to hold over
beyond the expiration of the Term and in the event Tenant shall fail to deliver
possession of the Premises as herein provided, such occupancy shall not be
construed to effect or constitute other than a tenancy at sufferance.  During the first ninety (90) days of
occupancy beyond the expiration of the Term the amount of rent owed to Landlord
by Tenant shall automatically become one hundred fifty percent (150%) the sum
of the Rent as due on the last day of the scheduled Term.  Thereafter if Tenant fails to surrender the
space Landlord may elect to automatically extend the Term for an additional
month with a Rent of two hundred percent (200%) the sum of the Rent as due on
the last day of the scheduled Term the 

 30
 

 

sum of the Rent as those
sums are at that time calculated under the provisions of the Lease.  The acceptance of rent by Landlord or the
failure or delay of Landlord in notifying or evicting Tenant following the
expiration or sooner termination of the Term shall not create any tenancy
rights in Tenant and any such payments by Tenant may be applied by Landlord
against its costs and expenses, including attorney’s fees, incurred by Landlord
as a result of such holdover.

26.           RULES AND
REGULATIONS

Tenant agrees that at all times during the terms of
this Lease (as same may be extended) it, its employees, agents, invitees and
licenses shall comply with all rules and regulations specified on Exhibit “C”
attached hereto and made a part hereof, together with all reasonable Rules and
Regulations as Landlord may from time to time promulgate provided they do not
increase the financial burdens of Tenant or unreasonably restrict Tenant’s
rights under this Lease are applied in non-discriminatory manner to all tenants
of the Building.  Landlord shall provide
Tenant with appropriate prior written notice of any changes or additions to the
Rules and Regulations and Tenant’s right to dispute the reasonableness of any
changes in or additions to the Rules and Regulations shall be deemed waived
unless asserted to Landlord within fifteen (15) business days after Landlord
shall have given Tenant such written notice. 
In case of any conflict or inconsistency between the provisions of this
Lease and any Rules and Regulations, the provisions of this Lease shall
control.  Landlord shall have no duty or
obligation to enforce any Rule and Regulation, or any term, covenant or
condition of any other lease, against any other tenant, and Landlord’s failure
or refusal to enforce any Rule or Regulation or any term, covenant of condition
of any other lease against any other tenant shall be without liability of
Landlord to Tenant.  However, if Landlord
does enforce Rules or Regulations, Landlord shall endeavor to enforce same
equally in a non-discriminatory manner.

27.           GOVERNMENTAL
REGULATIONS

(a)           Tenant shall, in the
use and occupancy of the Premises and the conduct of Tenant’s business or
profession therein, at all times comply with all applicable laws, ordinances,
orders, notices, rules and regulations of the federal, state and municipal
governments, or any of their departments.

(b)           Without limiting the
generality of the foregoing, Tenant shall (i) obtain, at Tenant’s expense,
before engaging in Tenant’s business or profession within the Premises, all necessary
licenses and permits including (but not limited to) state and local business
licenses or permits except Tenant’s certificate of occupancy, and (ii) remain
in compliance with and keep in full force and effect at all times all licenses,
consents and permits necessary for the lawful conduct of Tenant’s business or
profession at the Premises.  Tenant shall
pay all personal property taxes, income taxes and other taxes, assessments,
duties, impositions and similar charges which are or may be assessed, levied or
imposed upon Tenant.

(c)           Landlord shall be
responsible for compliance with all present and future laws, orders,
requirements, orders, directives, rules and regulations of federal, state,
county and city governments and of all other governmental authorities having or
claiming jurisdiction over the Project, including but not limited to, Title III
of the Americans with Disabilities Act of 1990, 42 U.S.C. 12181 et  seq.
and its regulations, (collectively, the “ADA”) 

 31
 

 

(i) as to the
design and construction of common areas (e.g., sidewalks, parking areas and
bathrooms) and (ii) with respect to the initial design and construction by
Landlord of Landlord’s Work (as defined in Article 4 hereof).  Except as set forth above in the initial
sentence hereto, Tenant shall be responsible for compliance with the ADA in all
other respects during the term hereof concerning the use and occupancy of the
Premises, which compliance shall include, without limitation (i) provision for
full and equal enjoyment of the goods, services, facilities, privileges,
advantages or accommodations of the Premises as contemplated by and to the
extent required by the ADA, (ii) compliance relating to requirements under the
ADA for Tenant’s use of the Premises or amendments thereto arising after the
date of this Lease with respect to Tenant’s use of the Premises, and (iii)
compliance relating to the design, layout, renovation, redecorating,
refurbishment, alteration, or improvement to the Premises made or requested by
Tenant at any time following completion of the Landlord’s Work.

28.           NOTICES

Wherever in this Lease it shall be required or
permitted that notice or demand be given or served by either party to this
Lease to or on the other party, such notice or demand shall be deemed to have
been duly given or served if in writing and either: (i) personally served;
(ii) delivered by pre-paid nationally recognized overnight courier service
(e.g., Federal Express) with evidence of receipt required for delivery; (iii)
forwarded by Registered or Certified mail, return receipt requested, postage
prepaid; (iv) facsimile with a copy mailed by first class United States mail or
(v) e-mailed with evidence of receipt and delivery of a copy of the notice by
first class mail; in all such cases addressed to the parties at the addresses
set forth in Article 1(l) hereof.  Each
such notice shall be deemed to have been given to or served upon the party to
which addressed on the date the same is delivered.  Either party hereto may change its address to
which said notice shall be delivered or mailed by giving written notice of such
change to the other party hereto, as herein provided.

29.           BROKERS

Tenant represents and warrants to Landlord that Tenant
has had no dealings, negotiations or consultations with respect to the Premises
or this transaction with only the brokers or finders identified in Article
1(k).  Each party agrees to indemnify and
hold the other harmless from and against all liability, cost and expense,
including reasonable attorney’s fees and court costs, arising out of any
misrepresentation or breach of warranty under this Article.  Landlord agrees to pay any commission due and
owing to Broker in accordance with a separate commission agreement entered into
between Landlord and Broker.

30.           CHANGE OF
BUILDING/PROJECT NAME

Landlord reserves the right at any time and from time
to time to change the name by which the Building and/or Project is designated,
except to the name of a direct competitor of Tenant; provided Tenant’s signage
remain on the Building.  Landlord agrees
to pay for the reasonably documented costs of stationery charges (including
letterhead and cards) necessitated by any such name change.

 32

 

31.           LANDLORD’S LIABILITY

Landlord’s obligations hereunder shall be binding upon
Landlord only for the period of time that Landlord is in ownership of the
Building; and, upon termination of that ownership, Tenant, except as to any
obligations arising during Landlord’s ownership of the Building, shall look
solely to Landlord’s successor in interest in the Building for the satisfaction
of each and every obligation of Landlord hereunder.  Landlord shall have no personal liability
under any of the terms, conditions or covenants of this Lease and Tenant shall
look solely to the equity of Landlord in the Building of which the Premises
form a part, and to rents, issues and proceeds, including insurance proceeds
therefrom, for the satisfaction of any claim, remedy or cause of action
accruing to Tenant as a result of the breach of any section of this Lease by
Landlord.  In addition to the foregoing,
no recourse shall be had for an obligation of Landlord hereunder, or for any
claim based thereon or otherwise in respect thereof, against any past, present
or future trustee, member, partner, shareholder, officer, director, partner,
agent or employee of Landlord, whether by virtue of any statute or rule of law,
or by the enforcement of any assessment or penalty or otherwise, all such other
liability being expressly waived and released by Tenant with respect to the
above-named individuals and entities.

32.           AUTHORITY

Tenant represents and warrants that (a) Tenant is duly
organized, validly existing and is legally authorized to do business in the
State of New Jersey, and (b) the persons executing this Lease are duly
authorized to execute and deliver this Lease on behalf of Tenant.

33.           NO OFFER

The submission of the Lease by Landlord to Tenant for
examination does not constitute a reservation of or option for the Premises or
of any other space within the Building or in other buildings owned or managed
by Landlord or its affiliates.  This
Lease shall become effective as a Lease only upon the execution and legal
delivery thereof by both parties hereto

34.           RENEWAL

Provided Tenant is not in default of any obligations
under this Lease, nor defaulted more than twice on any monetary obligation in
excess of $100,000 in the aggregate and Tenant or its assignee or subtenant is
occupying the Premises and the Lease is in full force and effect, Tenant shall
have the right to renew this Lease for two (2) terms of five (5) years each
beyond the end of the initial Term (each, a “Renewal Term”).  Tenant shall furnish written notice of intent
to renew one (1) year prior to the expiration of the applicable Term, failing
which, such renewal right shall be deemed waived; time being of the
essence.  The terms and conditions of
this Lease during each Renewal Term shall remain unchanged except that the annual
Fixed Rent for each Renewal Term shall be 95% of the Fair Market Rent (as such
term is hereinafter defined).  All
factors regarding Additional Rent shall remain unchanged, except the Base Year
shall be adjusted to reflect the year the Renewal Term commences.  Anything herein contained to the contrary
not-withstanding, Tenant shall have no right to renew the term hereof other
than or beyond the two (2) consecutive five (5) year terms hereinabove
described.  It shall be a condition of
each such Renewal Term that Landlord and Tenant shall have executed, not less
than nine (9) 

 33
 

 

months prior to the
expiration of the then expiring term hereof, an appropriate amendment to this
Lease, in form and content satisfactory to each of them, which shall not
contain a material change (other than the terms of the renewal), memorializing
the extension of the term hereof for the next ensuing Renewal Term.

 34
 

 

For purposes of this Lease, “Fair Market Rent” shall
mean the base rent, for comparable space, inclusive of all free or reduced rent
periods, work letters, cash allowances, fit-out periods and other tenant
inducement concessions however denominated except as hereinafter provided.  In determining the Fair Market Rent,
Landlord, Tenant and any appraiser shall take into account applicable
measurement and the loss factors, applicable lengths of lease term, differences
in size of the space demised, the location of the Building and comparable
buildings, amenities in the Building and comparable buildings, the ages of the
Building and comparable buildings, differences in base years or stop amounts
for operating expenses and tax escalations and other factors normally taken
into account in determining Fair Market Rent. 
The Fair Market Rent shall reflect the level of improvement to be made
by Landlord to the space and the Recognized Expenses and Taxes under this
Lease.  If Landlord and Tenant cannot
agree on the Fair Market Rent, the Fair Market Rent shall be established by the
following procedure:  (1) Tenant and
Landlord shall agree on a single MAT certified appraiser who shall have a
minimum of ten (10) years experience in real estate leasing in the market
in which the Premises is located and who has not conducted within the previous
five (5) years and does not presently conduct and does not anticipate
conducting business in the future with either Tenant or Landlord, (2) Landlord
and Tenant shall each notify the other (but not the appraiser), of its
determination of such Fair Market Rent and the reasons therefor, (3) during
the next seven (7) days both Landlord and Tenant shall prepare a written
critique of the other’s determination and shall deliver it to the other party,
(4) on the tenth (10th) day following delivery of the critiques to each
other, Landlord’s and Tenant’s determinations and critiques (as originally
submitted to the other party, with no modifications whatsoever) shall be
submitted to the appraiser, who shall decide whether Landlord’s or Tenant’s
determination of Fair Market Rent is more correct.  The determinations so chosen shall be the
Fair Market Rent.  The appraiser shall
not be empowered to choose any number other than the Landlord’s or Tenant’s.  The fees of the appraiser shall be paid by
the non-prevailing party.

35.           RIGHT
OF EXPANSION.

Subject to (a) Tenant not being in default at the
time of exercise nor Tenant ever being in default (irrespective of the fact
that Tenant cured such default) of any monetary obligations under this Lease
more than twice during the Term and such monetary defaults aggregate in excess
of $100,000; (b) the rights of other tenants within the Building from time
to time, and (c) such limitations as are imposed by other tenant leases,
Landlord shall notify Tenant with regard to space that is or Landlord expects
to become vacant and available for lease in the Building and Landlord shall
propose to Tenant the basic economic terms upon which Landlord would be
prepared to entertain the negotiation of a new lease for such space (on all of
the same terms and conditions as are set forth in this Lease, except as
otherwise specified by Landlord) or an amendment to this Lease with which the
parties would add such space to the description of the “Premises,” in either
case for a term which would be coterminous with this Lease unless otherwise
specified by Landlord, and which economic terms shall include the estimated
date that the space shall be available for delivery, the Base Rent and the
tenant allowance (if any) to be furnished to Tenant, whereupon Tenant shall
have thirty (30) days next following Landlord’s delivery of such notice within
which to accept such terms, time being of the essence.  Should Tenant accept such terms as are
specified by Landlord, the parties shall negotiate the terms of a

 35
 

 

new lease, or an amendment to this Lease, to
memorialize their agreement.  In the
absence of any further agreement by the parties, such additional space shall be
delivered, and Rent for such additional space shall commence on that date which
is the earlier of: (x) Tenant’s occupancy thereof, and (y) five (5) days after
Landlord delivers such additional space to Tenant free of other tenants and
occupants.  If Tenant shall not accept
Landlord’s terms within such thirty (30) day period, or if the parties shall
not have executed and delivered a mutually satisfactory new lease or lease
amendment within thirty (30) days next following Landlord’s original notice
under this Article 35, then Tenant’s rights to lease such space shall lapse and
terminate, and Landlord may, at its discretion, lease such space on such terms
and conditions as Landlord shall determine.

Nothing contained in this Article 15 is intended nor
may anything herein be relied upon by Tenant as a representation by Landlord as
to the availability of expansion space within the Building at any time.

35.           ROOF RIGHTS

So long as it (i) does not impact Landlord’s roof
warranty and (ii) complies with all applicable laws, rules and regulations,
Tenant, at Tenant’s sole cost and expense, shall have access to the roof of the
Building in designated areas mutually agreed upon for the purpose of
installation of microwave satellite, antenna and other communications devices
or supplemental HVAC units (the “Roof Equipment”).  Notwithstanding the foregoing, all such Roof
Equipment shall be for the sole benefit of Tenant, shall relate specifically to
Tenant’s use of the Premises, and shall net be used as a switching station,
amplification station or by other tenants or third parties.  Tenant shall make a request for approval of
the Roof Equipment hereunder by submission of specific plans and specifications
for the work to be performed by Tenant. 
Landlord shall respond in writing within five (5) business days from
receipt of the same, advising Tenant of approved contractors and those portions
of the work that are acceptable and disapproving those portions of the work
that are, in Landlord’s judgment, reasonably exercised, unacceptable and with
respect to the plans, specifying in detail the nature of Landlord’s
objection.  Tenant shall be solely
responsible for all damages caused by its Roof Equipment, for the removal of
all Roof Equipment and the restoration of the roof upon the expiration or early
termination of this Lease unless directed in writing by Landlord otherwise.  Landlord shall be named as an additional
insured on all Tenant insurance relating to the Roof Equipment.  All installation, repair, replacement and
modification of the Roof Equipment shall be coordinated with Landlord, shall only
use those approved contractors and shall be in accordance with the Rules and
Regulations set forth herein.

36.           RELOCATION.  Intentionally Omitted.

37.           MISCELLANEOUS
PROVISIONS

(a)           Successors.  The respective rights and obligations
provided in this Lease shall bind and inure to the benefit of the parties
hereto, their successors and assigns; provided, however, that no rights shall
inure to the benefit of any successors of Tenant unless Landlord’s written
consent for the transfer to such successor and/or assignee has first been
obtained or/as provided in Article 12 hereof.

 36
 

 

(b)           Governing Law.  This Lease shall be construed, governed and
enforced in accordance with the laws of the State of New Jersey, without regard
to principles relating to conflicts of law.

(c)           Severability.  If any provisions of this Lease shall be held
to be invalid, void or unenforceable, the remaining provisions hereof shall in
no way be affected or impaired and such remaining provisions shall remain in
full force and effect.

(d)           Captions.  Marginal captions, titles or exhibits and
riders and the table of contents in this Lease are for convenience and
reference only, and are in no way to be construed as defining, limiting or
modifying the scope or intent of the various provisions of this Lease.

(e)           Gender.  As used in this Lease, the word “person”
shall mean and include, where appropriate, an individual, corporation,
partnership or other entity; the plural shall be substituted for the singular,
and the singular for the plural, where appropriate; and the words of any gender
shall mean to include any other gender.

(f)            Entire Agreement.  This Lease, including the Exhibits and any
Riders hereto (which are hereby incorporated by this reference, except that in
the event of any conflict between the printed portions of this Lease and any
Exhibits or Riders, the term of such Exhibits or Riders shall control),
supersedes any prior discussions, proposals, negotiations and discussions
between the parties and the Lease contains all the agreements, conditions,
understandings, representations and warranties made between the parties hereto
with respect to the subject matter hereof, and may not be modified orally or in
any manner other than by an agreement in writing signed by both parties hereto
or their respective successors in interest. 
Without in any way limiting the generality of the foregoing, this Lease
can only be extended pursuant to the terms hereof, and in Tenant’s case, with
the terms hereof, and in Tenant’s case, with the due exercise of an option (if
any) contained herein or a formal agreement signed by both Landlord and Tenant
specifically extending the term.  No
negotiations, correspondence by Landlord or offers to extend the term shall be
deemed an extension of the termination date for any period whatsoever.

(g)           Counterparts.  This Lease may be executed in any number of
counterparts, each of which when taken together shall be deemed to be one and
the same instrument.

(h)           Telefax
Signatures.  The parties acknowledge
and agree that notwithstanding any law or presumption to the contrary a
telefaxed signature of either party whether upon this Lease or any related
document shall be deemed valid and binding and admissible by either party
against the other as if same were an original ink signature.

(i)            Calculation of
Time.  In computing any period of
time prescribed or allowed by any provision of this Lease, the day of the act,
event or default from which the designated period of time begins to run shall
not be included.  The last day of the
period so computed shall be included, unless it is a Saturday, Sunday or a
legal holiday, in which event the period runs until the end of the next day
which is not a Saturday, Sunday, or legal holiday.  

 37
 

 

Unless
otherwise provided herein, all Notices and other periods expire as of 5:00 p.m.
(local time in Plymouth Meeting, Pennsylvania) on the last day of the Notice or
other period.

(j)            No Merger.  There shall be no merger of this Lease or of
the leasehold estate hereby created with the fee estate in the Premises or any
part thereof by reason of the fact that the same person, firm, corporation, or
other legal entity may acquire or hold, directly or indirectly, this Lease of
the leasehold estate and the fee estate in the Premises or any interest in such
fee estate, without the prior written consent of Landlord’s mortgagee.

(k)           Time of the
Essence.  TIME IS OF THE ESSENCE IN ALL PROVISIONS OF THIS LEASE, INCLUDING ALL
NOTICE PROVISIONS TO BE PERFORMED BY OR ON BEHALF OF TENANT AND LANDLORD.

(l)            Recordation of
Lease.  Tenant shall not record this
Lease without the written consent of Landlord.

(m)          Accord and
Satisfaction.  No payment by Tenant
or receipt by Landlord of a lesser amount than any payment of Fixed Rent or
Additional Rent herein stipulated shall be deemed to be other than on account
of the earliest stipulated Fixed Rent or Additional Rent due and payable
hereunder, nor shall any endorsement or statement or any check or any letter
accompanying any check or payment as Rent be deemed an accord and
satisfaction.  Landlord may accept such
check or payment without prejudice to Landlord’s right to recover the balance
of such Rent or pursue any other right or remedy provided for in this Lease, at
law or in equity.

(n)           No Partnership.  Landlord does not, in any way or for any
purpose, become a partner of Tenant in the conduct of its business, or
otherwise, or joint venturer or a member of a joint enterprise with
Tenant.  This Lease establishes a
relationship solely of that of a landlord and tenant.

(o)           No Presumption
Against Drafter.  Landlord and Tenant
understand, agree, and acknowledge that: (i) this Lease has been freely
negotiated by both parties; and (ii) that, in the event of any controversy,
dispute, or contest over the meaning, interpretation, validity, or
enforceability of this Lease, or any of its terms or conditions, there shall be
no inference, presumption, or conclusion drawn whatsoever against either party
by virtue of that party having drafted this Lease or any portion thereof.

(p)           Force Majeure.  If by reason of strikes, wars or other labor
disputes, fire or other casualty (or reasonable delays in adjustment of
insurance), accidents, orders or regulations of any Federal, State, County or
Municipal authority, or any other cause beyond Landlord’s reasonable control,
Landlord is unable to furnish or is delayed in furnishing any utility or
service required to be furnished by Landlord under the provisions of this Lease
or is unable to perform or make or is delayed in performing or making any
installations, decorations, repairs, alterations, additions or improvements, or
is unable to fulfill or is delayed in fulfilling any of Landlord’s other
obligations under this Lease (collectively, “Force Majeure”) and provided that
Landlord shall notify Tenant within five (5) business days following the onset
of a Force Majeure event), no such inability or delay shall constitute an
actual or constructive 

 38
 

 

eviction, in
whole or in part, or impose any liability upon Landlord or its agents, by
reason of inconvenience or annoyance to Tenant, or injury to or interruption of
Tenant’s business, or otherwise. 
Notwithstanding the foregoing, if the Premises is without water,
elevator service or electric or any other utility service for more than two (2)
consecutive business days and due to the foregoing Tenant is unable to conduct
all or a substantial portion of Tenant’s normal business operations therein,
then the Rent shall equitably abate until such electric or other utility or
elevator service is restored to the Premises, provided however, that in the
event such interruption or delay of service of such utility is substantially
due to an act or omission of Tenant or Tenant’s agents, employees, contractors
or invitees or an overload of the Building’s capacity for such utility by any
of such foregoing entities or persons, the foregoing abatement shall not apply.

38.           CONSENT TO JURISDICTION.  Tenant hereby consents to the exclusive
jurisdiction of the state courts located in Burlington County and to the
federal courts located in the District of New Jersey.

39.           WAIVER OF TRIAL BY JURY.  Landlord and Tenant waive the right to a
trial by jury in any action or proceeding based upon, or related to, the
subject matter of this lease.  This
waiver is knowingly, intentionally, and voluntarily made by Tenant and Tenant
acknowledges that neither Landlord nor any person acting on behalf of Landlord
has made any representations of fact to induce this waiver of trial by jury or
in any way to modify or nullify its effect. 
Tenant further acknowledges that it has been represented (or has had the
opportunity to be represented) in the signing of this lease and in the making
of this waiver by independent legal counsel, selected of its own free will, and
that it has had the opportunity to discuss this waiver with counsel.  Tenant further acknowledges that it has read
and understands the meaning and ramifications of this waiver provision and as
evidence of same has executed this lease.

40.           EXCLUSIVE USE.  Landlord covenants and agrees that during the
Term of the Lease, Landlord shall not lease any premises in the Building to:

Total eMed-EDIX

Heartland Information Systems, Inc.

C-Bay Systems, Ltd.

Healthscribe, Inc.

Dictophone, Inc.

Precyse Solutions, Inc.

Disk Writer, Inc.

Transcend Services, Inc.

whose business is medical transcription services or
medical document management services, digital dictation, electronic medical
transcription, or reimbursement coding services for healthcare providers.  Tenant shall have a right to update the list
of competitors to which Landlord may not lease space within the Building (but
not increase the list), which updated list shall become effective thirty days
following submission to Landlord.

 39
 

 

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

	
  

  

  

  WITNESS:

  	
   

  	
  LANDLORD: 

  BRANDYWINE OPERATING PARTNERSHIP, L.P. 

  By: Brandywine Realty Trust, its general partner

   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By: 

  	
  /s/ George D. Sowa

  	
   

  
	
   

  	
   

  	
  George D. Sowa, Senior
  Vice President

  	 

	
  

  ATTEST:

  	
   

  	
  TENANT:

  MEDQUIST INC.

   

  	 

	
   

  	
   

  	
  By:

  	
  /s/ John M. Suender

  	
   

  	 

	
   

  	
   

  	
  John M. Suender,
  Executive Vice President

  	 

								

 

 40

 

EXHIBIT “A”

SPACE PLAN

 A-1

 

EXHIBIT “B”

CONFIRMATION OF LEASE TERM

Tenant:  MedQuist, Inc.

Premises:  1000 Bishops Gate Boulevard

Mt. Laurel, New Jersey

Square Footage:          

Suite Numbers: 200 and 300

CONFIRMATION OF LEASE TERM

THIS MEMORANDUM is made as of the         
day of              ,
200  , between BRANDYWINE OPERATING PARTNERSHIP, L.P., a Delaware
limited partnership, with an office at 401 Plymouth Road, Suite 500, Plymouth
Meeting, PA 19462 (“Landlord”) and MEDQUIST, INC., with its principal place of
business at                                                             
(“Tenant”), who entered into a lease dated for reference purposes as of              
  , 200  , covering certain premises located at 1000
Bishops Gate Boulevard, Mt.  Laurel,
NJ.  All capitalized terms, if not
defined herein, shall be defined as they are defined in the Lease.

1.             The
Parties to this Memorandum hereby agree that the date of           ,
200   is the “Commencement Date” of the Term, that the date              ,
200   is the Rent Commencement Date and the date           
is the expiration date of the Lease.

2.             Tenant hereby confirms the following:

(a)           That it has accepted possession of
the Premises pursuant to the terms of the Lease;

(b)           That the improvements, including the
Landlord Work and Tenant’s Work, required to be furnished according to the
Lease by Landlord have been substantially completed;

(c)           That Landlord has fulfilled all of
its duties of an inducement nature or are otherwise set forth in the Lease;

(d)           That there are no offsets or credits
against rentals, and the $             
Security Deposit has been paid as provided in the Lease;

(e)           That there is no default by Landlord
or Tenant under the Lease and the Lease is in full force and effect.

3.             Landlord
hereby confirms to Tenant that its Building Number is           
and its Lease Number is              .  This information must accompany each Rent
check or wire payment.

 B-1
 

 

	
  4.     Tenant’s
  Notice Address is:

  	
   

  	
  Tenant’s Billing Address is:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attn:

  	
   

  	
   

  	
  Attn:

  	
   

  
	
  Phone No.:

  	
   

  	
   

  	
  Phone No.:

  	
   

  
	
  Fax No.:

  	
   

  	
   

  	
  Fax No.:

  	
   

  
	
  E-mail:

  	
   

  	
   

  	
  E-mail:

  	
   

  
												

 

 

4.             This Memorandum, each and all of the provisions hereof,
shall inure to the benefit, or bind, as the case may require, the parties
hereto, and their respective successors and assigns, subject to the
restrictions upon assignment and subletting contained in the Lease.

	
  WITNESS:

  	
  LANDLORD: 

  BRANDYWINE OPERATING PARTNERSHIP, L.P. 

  
	
   

  	
  By:          Brandywine
  Realty Trust, 

  its general partner 

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
  WITNESS:

  	
  TENANT: 

  MEDQUIST INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  

 

 B-2

 

EXHIBIT “C”

BUILDING RULES AND REGULATIONS

LAST REVISION: MARCH 14,2002

Landlord reserves the right to rescind any of these
rules and make such other and further rules and regulations as in the judgment
of Landlord shall from time to time be needed for the safety, protection, care
and cleanliness of the Project, the operations thereof, the preservation of
good order therein and the protection and comfort of its tenants, their agents,
employees and invitees, which rules when made and notice thereof given to Tenant
shall be binding upon him, her or it in a like manner as if originally
prescribed.  Wherever Landlord’s consent
is required, Landlord shall not unreasonably withhold such consent.

1.             Sidewalks,
entrances, passages, elevators, vestibules, stairways, corridors, halls, lobby
and any other part of the Building shall not be obstructed or encumbered by any
Tenant or used for any purpose other than ingress or egress to and from each
tenant’s premises.  Landlord shall have
the right to control and operate the common portions of the Building and
exterior facilities furnished for common use of the tenants (such as the
eating, smoking, and parking areas) in such a manner as Landlord deems
appropriate.

2.             No
awnings or other projections shall be attached to the outside walls of the
Building without the prior written consent of Landlord.  All drapes, or window blinds, must be of a
quality, type and design, color and attached in a manner approved by Landlord.

3.             No
showcases or other articles shall be put in front of or affixed to any part of
the exterior of the Building, or placed in hallways or vestibules without prior
written consent of Landlord.

4.             Rest
rooms and other plumbing fixtures shall not be used for any purposes other than
those for which they were constructed and no debris, rubbish, rags or other
substances shall be thrown therein.  Only
standard toilet tissue may be flushed in commodes.  All damage resulting from any misuse of these
fixtures shall be the responsibility of the tenant who, or whose employees,
agents, visitors, clients, or licensees shall have caused same.

5.             No
tenant, without the prior consent of Landlord, shall mark, paint, drill into,
bore, cut or string wires or in any way deface any part of the Premises or the
Building of which they form a part except for the reasonable hanging of
decorative or instructional materials on the walls of the Premises, without
prior written consent of Landlord.

6.             Tenants
shall not construct or maintain, use or operate in any part of the project any
electrical device, wiring or other apparatus in connection with a loud speaker
system or other sound/communication system which may be heard outside the
Premises.  Any such communication system
to be installed within the Premises shall require prior written approval of
Landlord.

7.             No
mopeds, skateboards, scooters or other vehicles and no animals, birds or other
pets of any kind shall be brought into or kept in or about the Building.

 C-1
 

 

 

8.             No
tenant shall cause or permit any unusual or objectionable odors to be produced
upon or permeate from its premises.

9.             No
space in the Building shall be used for the manufacture of goods for sale in
the ordinary course of business, or for sale at auction of merchandise, goods
or property of any kind.

10.           No
tenant, or employees of tenant, shall make any unseemly or disturbing noises or
disturb or interfere with the occupants of this or neighboring buildings or
residences by voice, musical instrument, radio, talking machines, whistling,
singing, or in any way.  All passage
through the Building’s hallways, elevators, and main lobby shall be conducted
in a quiet, business-like manner. 
Rollerblading and Rollerskating shall not be permitted in the Building
or in the common areas of the Project.

11.           No
tenant shall throw anything out of the doors, windows, or down corridors or
stairs of the Building.

12.           Tenant
shall not place, install or operate on the Premises or in any part of the
Project, any engine, stove or machinery or conduct mechanical operations or
cook thereon or therein (except for coffee machine, microwave oven, toasters
and/or vending machine), or place or use in or about the Premises or Project
any explosives, gasoline, kerosene oil, acids, caustics or any other flammable,
explosive, or hazardous material without prior written consent of Landlord.

13.           No
smoking is permitted in the Building, including but not limited to the
Premises, rest rooms, hallways, elevators, stairs, lobby, exit and entrances
vestibules, sidewalks, parking lot area except for the designated exterior smoking
area.  All cigarette ashes and butts are
to be deposited in the containers provided for same, and not disposed of on
sidewalks, parking lot areas, or toilets within the Building rest rooms.

14.           Tenants
are not to install any additional locks or bolts of any kind upon any door or
window of the Building without prior written consent of Landlord.  Each tenant must, upon the termination of
tenancy, return to the Landlord all keys for the Premises, either furnished to
or otherwise procured by such tenant, and all security access cards to the
Building.

15.           All
doors to hallways and corridors shall be kept closed during business hours
except as they may be used for ingress or egress.

16.           Tenant
shall not use the name of the Building, Landlord or Landlord’s Agent in any way
in connection with his business except as the address thereof.  Landlord shall also have the right to
prohibit any advertising by tenant, which, in its sole opinion, tends to impair
the reputation of the Building or its desirability as a building for offices,
and upon written notice from Landlord, tenant shall refrain from or discontinue
such advertising.

17.           Tenants
must be responsible for all Security Access cards issued to them, and to secure
the return of same from any employee terminating employment with them.  Landlord shall issue Tenant 120 access
cards.  Each additional card above the
120 provided at not cost and lost cards shall cost $35.00 per card to replace.  No person/company other than

 C-2
 

 

 

Building tenants and/or
their employees may have Security Access cards unless Landlord grants prior
written approval.

18.           All
deliveries by vendors, couriers, clients, employees or visitors to the Building
which involve the use of a hand cart, hand truck, or other heavy equipment or
device must be made via the Freight Elevator. 
Tenant shall be responsible to Landlord for any loss or damage resulting
from any deliveries made by or for tenant to the Building.  Tenant shall procure and deliver a
certificate of insurance from tenant’s movers which certificate shall name
Landlord as an additional insured.

19.           Landlord
reserves the right to inspect all freight to be brought into the Building, and
to exclude from the Building all freight or other material which violates any
of these rules and regulations.

20.           Tenant
will refer all contractors, contractor’s representatives and installation
technicians, rendering any service on or to the premises for tenant, to
Landlord for Landlord’s approval and supervision before performance of any
contractual service or access to Building. 
This provision shall apply to all work performed in the Building
including installation of telephones, telegraph equipment, electrical devices
and attachments and installations of any nature affecting floors, walls,
woodwork, trim, windows, ceilings, equipment or any other physical portion of
the Building.  Landlord reserves right to
require that all agents of contractors/vendors sign in and out of the Building.

21.           Landlord
reserves the right to exclude from the Building at all times any person who is
not known or does not properly identify himself to Landlord’s management or
security personnel.

22.           Landlord
may require, at its sole option, all persons entering the Building after 6 PM
or before 7 AM, Monday through Friday and at any time on Holidays, Saturdays
and Sundays, to register at the time they enter and at the time they leave the
Building.

23.           No
space within the Building, or in the common areas such as the parking lot, may
be used at any time for the purpose of lodging, sleeping, or for any immoral or
illegal purposes.

24.           No
employees or invitees of tenant shall use the hallways, stairs, lobby, or other
common areas of the Building as lounging areas during “breaks” or during lunch
periods.

25.           No
canvassing, soliciting or peddling is permitted in the Building or its common
areas by tenants, their employees, or other persons.

26.           No
mats, trash, or other objects shall be placed in the public corridors,
hallways, stairs, or other common areas of the Building.

27.           Tenant
must place all recyclable items of cans, bottles, plastic and office recyclable
paper in appropriate containers provided by Landlord in each tenant’s
space.  Removal of these recyclable items
will be by Landlord’s janitorial personnel.

 C-3
 

 

 

28.           Landlord
does not maintain suite finishes which are non-standard, such as kitchens,
bathrooms, wallpaper, special lights, etc. 
However, should the need arise for repair of items not maintained by
Landlord, Landlord at its sole option, may arrange for the work to be done at
tenant’s expense.

29.           Drapes
and/or blinds installed by tenant, which are visible from the exterior of the
Building, must be cleaned by Tenant, at its own expense, at least once a year.

30.           No
pictures, signage, advertising, decals, banners, etc. are permitted to be
placed in or on windows in such a manner as they are visible from the exterior,
without the prior written consent of Landlord.

31.           Tenant
or tenant’s employees are prohibited at any time from eating or drinking in
hallways, elevators, rest rooms, lobby or lobby vestibules.

32.           Tenant
shall be responsible to Landlord for any acts of vandalism performed in the
Building by its employees, agents, invitees or visitors.

33.           No
tenant shall permit the visit to its Premises of persons in such numbers or
under such conditions as to interfere with the use and enjoyment of the
entrances, hallways, elevators, lobby or other public portions or facilities of
the Building and exterior common areas by other tenants.

34.           Landlord’s
employees shall not perform any work or do anything outside of their regular
duties unless under special instructions from Landlord.  Requests for such requirements must be
submitted in writing to Landlord.

35.           Tenant
agrees that neither tenant nor its agents, employees, licensees or invitees
will interfere in any manner with the installation and/or maintenance of the
heating, air conditioning and ventilation facilities and equipment.

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

37.           Landlord
will not permit entrance to tenant’s Premises by use of pass key controlled by
Landlord, to any person at any time without written permission of tenant,
except employees, contractors or service personnel supervised or employed by
Landlord.

38.           Tenant
and its agents, employees and invitees shall observe and comply with the
driving and parking signs and markers on the Building grounds and surrounding
areas.

39.           Tenant
and its employees, invitees, agents, etc. shall not enter other separate
tenants’ hallways, restrooms or premises unless they have received prior
approval from Landlord’s management or such tenant.

40.           Tenant
shall not use or permit the use of any portion of the Premises for outdoor
storage.

 C-4

 

EXHIBIT “D”

CLEANING SPECIFICATIONS

DAILY:  BUILDING
AND TENANT AREAS

1.                                       All
desks and other furniture will be dusted with specially treated dust clothes.

2.                                       All
windowsills, chair rails, baseboards, moldings, partitions and picture frames
that are less than six feet in height will be hand dusted and wiped clean.

3.                                       All
non-carpeted floors will be dust mopped with specially treated dust mops.

4.                                       All
bright metal work will be maintained and kept in a clean and polished
condition.

5.                                       All
drinking fountains will be thoroughly cleaned and sanitized.

6.                                       All
stairways will be swept and wet mopped. 
Stairways shall be policed daily to remove all debris.  Walls, handrails and fixtures are to be spot
cleaned and dusted.  Lights, pipes and
signage are to be dusted as necessary.

7.                                       All
elevators will be vacuumed and the interior of all cabs will be wiped clean and
all metal hardware will be polished. 
This includes damp wipe, dust and/or thoroughly cleaning all exterior
doors, cab walls, doorframes, indicator panels, tracts, plates and grooves.

8.                                       Empty,
clean -and dust all wastepaper baskets, ashtrays, receptacles, etc.  After emptying waste baskets, reline with an
approved liner as needed.

9.                                       Remove
all trash and wastepaper to areas designated by management.

10.                                 Vacuum
all carpeted areas.  This shall include
all walk-off mats.  In addition, the
carpets are to be spot cleaned when necessary.

11.                                 All
tile floors will maintain a satin finish. 
Hard surface floor areas shall be maintained in a manner which
consistently presents the appearance desired without visible evidence of
traffic patterns.  Particular attention
shall be paid to edges to ensure a proper and dust free appearance.  Any damage to hard surface floors resulting
from improper care shall be the full responsibility of contractor.  Contractor shall provide the details of a
program to maintain tile floors to insure consistent luster and remove all
marks.

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12.                                 All
glass surfaces, windows, doors and directory boards shall be spot-cleaned,
using an approved glass cleaner, and all glass shall be left in a bright
condition which is free of streaks and dust.

13.                                 Wipe
and clean all counters, tables, chairs and appliances in kitchen areas.

14.                                 Clean
all glass at the building and tenant entrances.

15.                                 Spot
clean all horizontal and vertical surfaces removing fingerprints, smudges and
stains.

LAVATORIES:

1.                                        Floors
are to be swept and washed using an approved antiseptic liquid detergent.  Floors are to be machine scrubbed as needed
but not less frequently than every quarter.

2.                                       Refill
all dispensers, empty trash, clean and sanitize all restroom fixtures.  Wipe all counters, clean mirrors, wipe chrome
and spot wipe partitions and ceramic tile walls.

3.                                       Weekly
wash all restroom partitions on both sides.

4.                                       Remove
all wastepaper and refuse.

5.                                       No
less frequently than quarterly, wash all ceramic tile walls.

WEEKLY

1.                                        Remove
fingerprints, smudges and scuff marks from all vertical and horizontal surfaces
such as doors, walls and sills.

2.                                       Wash
and refinish resilient floors in public areas. 
Strip, wax and polish the floors as needed.

3.                                       Polish
and buff all no wax resilient floors in tenant areas.

4.                                       Dust
and damp wipe all louvers and ceiling grills.

5.                                       Spot
clean all interior partition glass windows and clean all interior glass entrance
doors.

QUARTERLY

1.                                        Dust
and clean all vertical surfaces such as walls, partitions, doors, etc.  That are not cleaned during the nightly
cleaning process.

2.                                       Dust
and wipe clean all blinds.

 D-2
 

 

 

3.                                       Dust
the inside of elevator telephone cabinets.

4.                                       Shampoo
all elevator carpets.

 D-3

 

EXHIBIT “E”

LANDLORD WORK LETTER

A.            Landlord’s
Work.  Landlord shall cause the
Building to be constructed in substantial accordance with the plans listed on
Exhibit 1 hereto, as amended by changes to such plans as required by Landlord (“Landlord’s
Plans”).

Tenant will be required to cause its architect to
coordinate Tenant’s interior design documentation with Landlord’s Work (as
hereinafter defined).

Landlord shall have the right, from time to time, to
make changes to Landlord’s Plans; provided however, in the instance of any
material revision or supplement to Landlord’s Plans which would require a
material change in or result in a material increase in the cost of Tenant Work
(as hereinafter defined), then such revisions and supplements shall be
submitted to Tenant for approval, which approval shall not be unreasonably
withheld, delayed or conditioned unless it causes an increase in Tenant’s
costs.  Tenant’s failure to approve such
changes or to disapprove such changes with specific comment within five (5) business
days next following notice thereof from Landlord shall for all purposes
constitute Tenant’s deemed approval of the revision or supplement to be
implemented by Landlord.  Landlord shall
further share all revised plans with Tenant’s architect.

Landlord shall provide drywall on the “tenant space
side” of core walls, around columns (column covers) and all exterior building
walls from the floor to the base of all windows.  Window coverings, as depicted in the Landlord
Plans or as otherwise selected by Landlord and approved by Tenant within (5)
business days next following Landlord’s request therefor (Tenant’s failure to
approve or to disapprove with specific comments, within such time frame, shall
for all purposes constitute Tenant’s deemed approval of Landlord’s selection),
will be provided by Landlord at each perimeter window at Tenant’s cost.

The work called for by Landlord’s Plans (“Landlord’s
Work”) shall be deemed “substantially complete” when (i) the Building’s ground
floor lobby, and public areas on the ground floor, including all exterior
walkways, driveways, accesses and parking areas necessary for the Tenant’s
occupancy, have been substantially completed as required by applicable code,
(ii) to the extent required to serve the Premises and the public areas
necessary for Tenant’s use and enjoyment of the Premises, the heating,
ventilating and air conditioning, elevator and utility systems, including
telephone trunk lines into the Building (but not including installation of
telephones, computers, or security systems for the Premises), are installed and
operating, (iii) the Building is weather tight and roofing installed, (iv)
Landlord shall have obtained at least a temporary certificate of occupancy for
the Building and the Premises, and (v) Landlord’s architect shall have issued a
certificate of substantial completion for Landlord’s Work.

B.            Tenant
Work.  On or before July 15, 2003
Tenant shall cause to be prepared and sealed by an architect licensed in the
State of New Jersey, and shall submit to Landlord for its approval, all plans
and specifications required for the leasehold improvements to be constructed
within the Premises (“Tenant Plans”) which Tenant Plans shall be in substantial
conformity in all respects with the plans and specifications previously
provided to Landlord and

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priced by Landlord for
the Tenant Work..  Tenant shall
reasonably endeavor to use Landlord’s professionals to prepare the Tenant
Plans.  Any delay by Tenant in delivering
the Tenant Plans as and when required hereunder shall constitute a Tenant
Delay, unless caused in any manner by Landlord or its agents, professional or
contractors.  Tenant Plans shall be
sufficient so long as Tenant Plans (a) are complete, finished and include
detailed architectural, electrical, plumbing, fire protection, HVAC and
engineering drawings including all necessary dimensions and specifications and
all finish schedules; (b) are practicable and consistent with Landlord’s Plans,
subject to standard construction industry tolerances and subject to reasonable
as-built field conditions not specified on Landlord’s Plans, (c) involve
construction within the Premises only and do not adversely affect or compromise
any portion of the Building, and (d) do not require any special materials or
design or changes in or of the Building which is not then already set forth in
Landlord’s Plans or in Landlord’s judgment cannot be accommodated without
additional expense or delay.  To the
extent Tenant uses Landlord’s Architect to prepare such plans, Tenants Plans
shall be deemed to comply hereunder. 
Tenant’s submission of Tenant Plans to Landlord shall be deemed approval
thereof by Tenant.  Such submission shall
contain one complete electronic media (CAD) copy (said CAD copy to contain
Premises plans only), four blue-line or black-line prints and one reproducible
copy of each page.  Tenant shall be
solely responsible for the completeness and compliance of Tenant Plans with all
applicable laws, codes and regulations, including without implied limitation,
ADA, and all state and municipal permitting requirements.  Landlord shall review Tenant Plans and
respond to Tenant within thirty (30) days after submission, and should Landlord
elect to have Tenant Plans reviewed by Landlord’s architects and engineers if
Tenant’s Plans were not prepared by Landlord’s professionals.  Tenant shall bear the reasonable expense of
such review.  Unless Tenant’s Plans are
prepared by Landlord’s professionals, review and approval of Tenant Plans by
Landlord (and its professionals, as aforesaid) shall in no instance be deemed
or constitute a representation, warranty or confirmation by Landlord or by its
professionals of any kind regarding the completeness of Tenant Plans or
conformance therewith with applicable laws, codes or regulations, or permitting
requirements, or with the requirements of Landlord’s Plans, or the adequacy of
Tenant’s specifications or design, but rather Landlord’s review (and review by
Landlord’s professionals) is for the protection of Landlord only; provided,
however, that Landlord shall use reasonable efforts to advise Tenant if such
review indicates that Tenant Plans violate or fail to satisfy any requirements
of Landlord’s Work.  If Tenant Plans are
not sufficient, as above set forth, Landlord shall notify Tenant of the insufficiency
and Tenant shall cause such insufficiency to be remedied and the remedy shall
be incorporated into Tenant Plans by Tenant at Tenant’s expense and resubmitted
to Landlord, and the time involved in Tenant’s revision and resubmission of
Tenant Plans shall constitute a Tenant Delay, unless Tenant’s Plans are
prepared by Landlord’s professionals; it being further understood that the
foregoing shall not diminish the effect of any intervening Change Order
Delay.  If Landlord determines that
Tenant Plans are still not sufficient after Landlord’s review and Tenant’s
resubmission, then the approval process described above will be repeated;
provided, however, that Landlord agrees to review Tenant’s resubmission(s) as
promptly as is reasonably practicable. 
Tenant shall make no changes to Tenant Plans after Landlord’s approval
thereof without the prior written consent of Landlord, which approval shall not
be unreasonably withheld, delayed or conditioned, and which changes shall be
requested and implemented, if at all, only in accordance with the procedures
set forth below.  Any delay in
substantial completion of the construction set forth on Tenant Plans (“Tenant
Work”) or in Landlord’s Work resulting from such changes or from an election by

 E-2
 

 

 

Tenant to incorporate
special materials or designs in Tenant Plans shall be deemed to be a Tenant
Delay and shall have the consequences herein set forth.  Landlord shall notify Tenant as quickly as
reasonably practicable after receipt of any changes to Tenant Plans if Landlord
anticipates that the proposed changes will delay substantial completion of
construction.

C.            Construction of Tenant Work.

Landlord has delivered to Tenant a cost proposal for
the construction of Tenant Work from Landlord’s Contractor based on plans
submitted to Landlord by Tenant.

Landlord shall contract with Landlord’s Contractor for
the construction of the Tenant Work in accordance with the Tenant Cost
Proposal, and Landlord will administer such construction, without additional
charge by Landlord for Landlord’s administration services, other than Landlord’s
out of pocket fees, costs and expenses, which costs and expenses shall be
identified in advance by Landlord. 
Landlord shall endeavor to cause Landlord’s Contractor to reasonably
consult with Tenant in the selection by Landlord’s Contractor of subcontractors
for Tenant Work; provided, however, that Landlord’s Contractor shall at all
times retain the right to make the final selection of which subcontractors
shall be engaged for the Tenant Work project.

If Tenant deems any changes, additions or alterations
in the Tenant Plans necessary or desirable, Tenant shall submit such proposed
changes, additions or alterations to Landlord in writing.  As promptly as is reasonably practicable upon
receipt of such proposed changes, additions or alterations, Landlord shall
provide Tenant with the following: (i) the estimated cost to Tenant, if any, of
the proposed changes, additions or alterations, and (ii) an estimate of the
delay, if any, in the estimated Substantial Completion Date which will result
from the installation of the proposed changes, additions or alterations.  If Landlord reasonably anticipates any delay
in the prosecution of either or both Landlord’s Work and Tenant Work during
such time as Landlord is evaluating Tenant’s proposed changes, additions or
alterations, or as a result of Landlord’s evaluation thereof, Landlord shall
advise Tenant of the same, and unless Tenant shall immediately instruct
Landlord to disregard Tenant’s request, then any such period of delay
encountered in Landlord’s review of Tenant’s requested changes, additions or
alterations shall (the remaining provisions of this Work Letter
notwithstanding), constitute a Tenant Delay (as further defined herein),
regardless of whether Tenant and Landlord shall subsequently execute a written
change order implementing such changes, additions and alterations.

Within two (2) business days next following Landlord’s
request therefor after Tenant shall have submitted to Landlord its request to
make such proposed changes, additions and alterations, Tenant shall provide to
Landlord such further information as may be requested by Landlord in its
evaluation of Tenant’s request, and within two (2) business days after receipt
from Landlord of Landlord’s estimate of cost and estimate of delay (as provided
at clauses (i) and (ii) in the preceding paragraph), Tenant shall notify
Landlord in writing which, if any, of the proposed changes Landlord is
authorized to make, and any delay by Tenant in delivering such notice and
executing a written change order (to the extent Tenant determines to make such
changes) within such period shall constitute a Tenant Delay.  Landlord shall not effect any such changes in
the absence of a change order signed by Landlord and by Tenant confirming the
foregoing cost and delay information.  In
the event Tenant shall fail to provide to Landlord any

 E-3
 

 

 

additional information
requested by Landlord in its evaluation of any proposed changes, additions or
alterations within the aforesaid two (2) business days, then the time interval
between the end of such two (2) days and the day on which Landlord actually
receives such information shall be deemed to be a further Tenant Delay.

Anything herein contained to the contrary
notwithstanding, the parties acknowledge and agree that the process of
reviewing change order requests is time consuming and costly, regardless of
whether the changes contemplated are ultimately implemented.  Landlord discourages Tenant from the practice
of requesting that Landlord consider immaterial or “frivolous” changes or that
Landlord price out and estimate the possible delay associated with a broad
range of possible changes, alterations and additions, and in each such instance
Tenant is strongly encouraged to narrow the scope of its proposal to a finite
number of “alternatives” acceptable to Tenant and therefore the time and
expense associated with Landlord’s review of the same.  Tenant is advised that excessive use of the
change order process will invariably result in additional Tenant Delays.

Tenant Delays arising under Section C of this Work
letter in regard to proposed changes, additions or alterations in Tenant Work
are sometimes herein or in the Lease referred to as “Change Order Delays.”

D.            Job
Meetings.  Representatives of Tenant
and Tenant’s architect shall be permitted to attend all job meetings during the
course of construction of Landlord’s Work and, if so elected by Tenant as
hereinabove provided, the Tenant’s Work. 
Tenant’s initial construction representative will be Frank Lucas of
Charles Matsinger Associates, Telephone: 215-925-9257, Facsimile:                                   ;
e-mail: fvl@matsinger.com.

E.             Possession
and Commencement Date.  Landlord
shall endeavor to have the Landlord’s Work and, if timely elected by Tenant as
hereinabove provided, the Tenant Work substantially completed by April 1, 2004
(“Targeted Date”) provided, however, that the Targeted Date shall, in addition
to extension for Tenant Delay and Change Order Delay, also be extended for the additional
time equal to the aggregate time lost by Landlord due to strikes or other labor
disputes not caused by Landlord, intervening governmental restrictions, delay
in obtaining governmental permits and approvals, scarcity of labor or
materials, war or other emergency, accidents, floods, fire or other casualties,
atypical adverse weather conditions, or any cause which is beyond the
reasonable control of Landlord (or in the case of a Tenant delay, Tenant) (“Force
Majeure Delay”).  The Targeted Date notwithstanding,
in no event shall any Tenant Delay or any Change Order Delay in any manner
delay or postpone any obligation of Tenant to pay Fixed Rent or Additional Rent
as and when such obligation shall have otherwise accrued under the Lease.

Landlord Work and Tenant Work shall be deemed
substantially complete (and the “Commencement Date,” as such term is used in
the Lease shall be deemed to have occurred) on the date on which the Premises
are (or would have been, but for any Tenant Delay or Change Order Delay) ready
for occupancy in accordance with Tenant Plans, and any remaining minor punch
list work can reasonably be expected to be completed by Landlord’s Contractor
within such additional period of time thereafter as shall be reasonable under
the circumstances, provided Landlord’s contractor shall have undertaken such
remaining work and shall be diligently

 E-4
 

 

 

prosecuting the same to
completion, in any case without materially adversely affecting Tenant’s ability
to occupy and utilize substantially all the Tenant’s Premises for the Permitted
Use, and provided, further that Landlord has obtained at least a temporary
certificate of occupancy permitting Tenant to occupy Tenant’s Premises and
Tenant’s architect has issued a certificate of substantial completion.  Any remaining work shall be fully described
by Tenant’s architect on a punch list to be certified to Landlord, Tenant and
Landlord’s contractor and shall indicate all remaining work, except for such
items as could not be reasonably identified by the parties (latent items) at
such time and, except as hereinafter provided, shall be the sole document
controlling such remaining work.  Tenant’s
acceptance of the punch list shall be Tenant’s acknowledgment that the Tenant’s
Premises are substantially complete except for such items as could not be
reasonably identified by the parties (latent items) at such time.  Anything herein or in the Lease contained to
the contrary notwithstanding, if Tenant’s architect withholds either or both
the aforesaid certificate of substantial completion and certified punch list,
or withholds any other certifications required hereunder or under the Lease,
and if in Landlord’s reasonable opinion there is no reasonable basis for such
withholding, Landlord may have the certification(s) made by its own architect;
in which event, Landlord’s architect’s certification shall be conclusive
evidence of the date of substantial completion of Landlord’s Work and Tenant
Work, and the contents of the punch list, if any.

F.             Tenant
Delay.  Notwithstanding any provision
herein or in the Lease to the contrary, the Landlord Delivery Date for Landlord’s
Work and the Commencement Date shall in no event be delayed or extended by any “Tenant
Delay” or Change Order Delay, and each such date (as applicable) shall be
deemed to have occurred on the day that each such date (as applicable) would
have occurred but for any intervening Tenant Delay or Change Order Delay.  Without limitation of the facts or
circumstances also agreed by the parties herein or in the Lease to constitute “Tenant
Delay,” “Tenant Delay” shall also mean and include but not be limited to delays
resulting from changes, revisions or supplements to the scope of Landlord’s
Work or Tenant Work requested by Tenant; Tenant’s failure to provide
information, materials, documents, plans or specifications, or to furnish
Tenant’s cooperation as required by Landlord in connection with Landlord’s Work
or Tenant Work within the required time periods, including Tenant’s initial
submission of Tenant Plans; delays in the preparation, finalization or approval
of the Tenant Plans caused by Tenant or its architect, contractors, authorized
representative, agents or employees; delays caused by modifications, revisions
or changes to Tenant Plans caused or required by Tenant or its architect,
contractors, authorized representative, agents or employees, or by any state or
municipal authority (including, without limitation, modifications, revisions or
changes required to Tenant Plans or Landlord’s Plans upon presentation of Tenant
Plans (or revisions thereto) for permitting; delays in the delivery or
installation of any special, long-lead or non-standard items specified by
Tenant; or delays caused by delivery, installation or completion of any Tenant
finish work performed by Tenant’s contractors; or any other delay caused by
Tenant or its architect, contractors, representatives, agents or
employees.  Notwithstanding anything in
this Section G to the contrary, with regard to those Tenant Delays which,
pursuant to the express provisions of this Work Letter, shall not be assessed
or be deemed to have occurred in the absence of Landlord’s notice, Landlord
agrees to furnish such notice as soon as reasonably practicable after Landlord
shall have actual knowledge of the facts or circumstances giving rise thereto;
the parties agreeing that such notice may be delivered telephonically or by
facsimile transmission to Tenant’s representative.  In the event any Tenant Delay or Change Order
Delay shall occur, substantial completion of the Landlord’s Work and Tenant
Work shall be deemed to

 E-5
 

 

 

have occurred on the date
on which substantial completion thereof would have occurred, but for the Tenant
Delays and Change Order Delays.

 E-6

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