Document:

Exhibit
10.19

 

Property Name: Princeton

 

 

 

 

 

 

LEASE AGREEMENT

 

BY AND BETWEEN

 

BANK OF AMERICA,
N.A., AS LANDLORD

 

AND

 

HEARTLAND PAYMENT
SYSTEMS, INC., AS TENANT

 

 

 

 

 

PREMISES:

 

 

90 Nassau Street

Princeton, New
Jersey

 

 

 

 

Exhibits

 

EXHIBIT “A”—RENT SCHEDULE

 

EXHIBIT “B”—DESCRIPTION OF PROPERTY

 

EXHIBIT “C”—PLAN OF PREMISES

 

EXHIBIT “D”—COMMENCEMENT DATE AGREEMENT

 

EXHIBIT “E”—RULES AND REGULATIONS

 

 

Riders

 

If checked, the following Riders are attached to and
form a part of this Lease.  In the event of a conflict between the terms
of the Rider and the terms of this Lease, the terms of the particular Rider
shall control.

 

Check if Applicable:

 

 

ý           
Right of First Offer (Lease) Rider

ý           
Leasehold Improvements Rider

ý           
Renewal Option Rider

 

 

1

 

 

PROPERTY: Princeton

 

OFFICE LEASE AGREEMENT

 

 

                               
This Office Lease Agreement (“Lease”) is entered into as of September    ,
2004 by and between Bank of America, N.A., a national banking association, with
an address at                               
(“Landlord”), and Heartland Payment Systems, Inc., a Delaware corporation, with
an address at 47 Hulfish Street, Suite 400, Princeton, NJ 08542
(“Tenant”).  Landlord and Tenant, each intending to be legally bound,
hereby mutually covenant and agree as follows:

 

ARTICLE 1 – FUNDAMENTAL LEASE
PROVISIONS

 

               
The following terms
shall have the meanings set forth below, subject to further definition and
elaboration elsewhere in this Lease.

 

	
  “Abandon”

  	
  The failure by Tenant
  to take possession of and move into the Premises within seven (7) days after
  the Commencement Date, whether or not Tenant is in default of the rental or
  other payments due under this Lease.

  
	
   

  	
   

  
	
  “Act
  of God” or “Force Majeure”

  	
  Strikes, lockouts,
  sit-downs, material or labor restrictions by any governmental authority,
  unusual transportation delays, riots, floods, washouts, explosions,
  earthquakes, fire, storms, weather (including wet grounds or inclement
  weather which prevents construction), acts of the public enemy, wars,
  insurrections, and/or any other cause not reasonably within the control of
  Landlord or which by the exercise of due diligence Landlord is unable wholly
  or in part, to prevent or overcome.

  
	
   

  	
   

  
	
  “Authorized
  Brokers”

  	
  GVA
  Williams Buschman

  c/o
  Tom Romano

  1009
  Lenox Drive

  Lawrenceville,
  NJ 08648

   

  and

   

  NAI Fennelly, Inc.

  c/o                                     

  3535
  Quarkerbridge Road 

  #102

  Hamilton,
  NJ 08648

  
	
   

  	
   

  
	
  “Base
  Rent”

  	
  As
  set forth on the Rent Schedule set forth on Exhibit “A” attached
  hereto.

  
	
   

  	
   

  
	
  “Base
  Year”

  	
  2005

  
	
   

  	
   

  
	
  “Building”

  	
  90
  Nassau Street

  Princeton,
  New Jersey

  
	
   

  	
   

  
	
  “Commencement
  Date”

  	
  the
  earlier of the date Tenant begins operating its business in the Premises or
  February 1, 2005

  
	
   

  	
   

  
	
  “Common
  Areas”

  	
  All
  areas in the Property except those areas occupied by Landlord or leased to
  tenants or held for lease to tenants, 

  

 

 

2

 

	
   

  	
  including,
  without limitation, parking areas, streets, driveways, aisles, sidewalks,
  curbs, delivery passages, loading areas, lighting facilities, mechanical
  rooms, elevator areas, common areas (such as corridors, bathrooms and similar
  areas) on multi-tenant floors, other Building common areas and all other
  areas situated on or in the Property which are designated by Landlord, from
  time to time, for use by, or for benefit of, all tenants and occupants of the
  Property in common.

  
	
   

  	
   

  
	
  “Default
  Rate”

  	
  The
  lesser of the maximum annual rate of interest permitted by applicable law or
  12% per annum

  
	
   

  	
   

  
	
  “Expiration
  Date”

  	
  September
  31, 2012

  
	
   

  	
   

  
	
  “Hazardous
  Material”

  	
  Any substance that is
  toxic, ignitable, reactive, or corrosive and that is now or hereafter
  regulated by any local government, the state where the Property is located,
  or the United States Government, including without limitation, asbestos,
  polychlorobiphenyls (“PCB’s”), petroleum products or distillates, any and all
  material or substances that are defined as “hazardous waste,” “extremely
  hazardous waste,” or a “hazardous substance” pursuant to state, federal, or
  local governmental law.

  
	
   

  	
   

  
	
  “Land”

  	
  The
  tract of land described on Exhibit “B” attached hereto.

  
	
   

  	
   

  
	
  “Landlord
  Notice Address”

   

  	
  Bank
  of America, N.A.

  525
  North Tryon

  3rd
  Floor — Corporate Real Estate \Department

  NC1-023-02-03

  Charlotte,
  NC 28255

  Attention:
  Property Services

  Fax:
  (704) 386-7339

   

  With
  a copy to:

   

  Bank
  of America, N.A.

  901
  Main Street, 68th Floor

  Dallas,
  TX 75202

  Attention:
  Michael F. Hord, Associate General Counsel

  
	
   

  	
   

  
	
  “Late
  Charge”

  	
  8%

  
	
   

  	
   

  
	
  “Operating
  Expenses”

  	
  Defined
  in Section 2.4 below.

  
	
   

  	
   

  
	
  “Permitted
  Use”

  	
  General
  office use and for no other purpose; provided, however, that Tenant shall not
  under any circumstances be permitted to use the Premises for “retail banking
  purposes”, which shall include, but not be limited to, the accepting of
  deposits from, or the making of loans to, the general public, or engaging in
  stock brokerage services, insurance sales or trust services, whether by a
  national bank, credit union, state bank, savings bank or other entity or person.

  
	
   

  	
   

  
	
  “Premises”

  	
  That
  portion of the second floor and third floor of the Building, as indicated on
  the floor plan attached hereto as Exhibit “C”, containing
  approximately 6,052 rentable

  

 

 

3

 

	
   

  	
  square
  feet and 3,255 rentable square feet, respectively, for an aggregate total of
  approximately 9,307 rentable square feet agreed to by Tenant and Landlord.

  
	
   

  	
   

  
	
  “Property”

  	
  The
  Building and Land upon which the Building is situated

  
	
   

  	
   

  
	
  “Proportionate
  Share”

  	
  35.3086%

  
	
   

  	
   

  
	
  “Proportionate
  Share”

  	
  35.3086%

  
	
   

  	
   

  
	
  “Rent
  Commencement Date”

  	
  October
  1, 2005

  
	
   

  	
   

  
	
  “Security
  Deposit”

  	
  $48,086.18

  
	
   

  	
   

  
	
  “Tenant
  Notice Address”

  	
  Heartland
  Payment Systems, Inc.

  47
  Hulfish Street, Suite 400

  Princeton,
  NJ 08542

  Attn:
  Robert Baldwin, CFO

  
	
   

  	
   

  
	
  “Term”

  	
  7
  Years and 8 Months

  

 

 

ARTICLE 2 – GRANTING CLAUSE AND
RENT PROVISIONS

 

               
2.1          Grant of Premises.  In
consideration of the obligation of Tenant to pay the rent and other charges as
provided in this Lease and in consideration of the other terms and provisions
of this Lease, Landlord hereby leases the Premises to Tenant during the Term,
subject to the terms and provisions of this Lease.

 

               
2.2          Term/Renewal
Option.       The Term shall
commence on the Commencement Date and end on the Expiration Date.  The
Commencement Date shall constitute the commencement of the term of this Lease
for all purposes, whether or not Tenant has actually taken possession.  If
for any reason the Premises are not ready for occupancy by the Commencement Date,
Landlord shall not be liable for any claims or damages by reason thereof, but
in such event the expiration date of the Lease shall be extended by the number
of days between the anticipated Commencement Date and the actual Commencement
Date.  If Tenant occupies the Premises prior to the Commencement Date,
Tenant shall pay Base Rent and all additional rent and shall comply with all of
Tenant’s obligations in this Lease during the early occupancy period (including
without limitation the provisions requiring Tenant to obtain insurance and to
indemnify and exculpate Landlord) and Tenant’s occupancy of the Premises shall
be subject to all of the provisions of this Lease.  Early occupancy of the
Premises shall not advance the expiration date of this Lease.  Within ten
(10) days of the Commencement Date, Tenant shall confirm the Commencement Date
and other terms of this Lease by executing and delivering to Landlord the
Commencement Date Agreement substantially in the form set forth on Exhibit
“D” attached hereto.  So long as there exists no uncured default under
this Lease and not more than two monetary defaults occurred during the Term,
then Tenant shall have the right to renew this Lease for the Renewal Term, if
any, as more fully set forth on the Renewal Option Rider attached hereto.

 

2.3          Base
Rent; Late Payment.  Tenant agrees to pay the Base Rent to
Landlord in equal monthly installments in advance, as set forth in the Rent
Schedule attached hereto as Exhibit “A”, without demand, offset or
reduction.  One (1) monthly installment of Base Rent shall be due and
payable on the date of execution of this Lease by Tenant for the first month’s
rent due October 1, 2005 and a like monthly installment shall be due and
payable on or before the first day of each calendar month succeeding the Rent
Commencement Date during the term of this Lease.  If the Rent Commencement
Date should be a date other than the first day of a calendar month, the monthly
rent for the first partial month shall be prorated on a per diem basis. 
Tenant shall pay, as additional rent, all other sums due under this
Lease.  Base Rent and additional rent are sometimes collectively called
“rent”.  All rent due under the terms of this Lease shall be payable to
Landlord and forwarded to Landlord at the address section forth in Article 1,
or to such other address as Landlord may designate by written notice to Tenant.

 

               
2.4          Operating Expenses.  If the
Operating Expenses for the Property, in any calendar year during the Term, exceed
the Operating Expenses for the Base Year, Tenant agrees to pay as additional
monthly rent the Proportionate Share of such excess Operating Expenses, as
estimated by Landlord from time to time.  During any partial calendar year
of the Term (such as the year in which the Commencement Date occurs and the
year in which the Terminates), Tenant’s Proportionate Share of Operating
Expenses shall be adjusted based upon the actual number 

 

4

 

of days contained within the
Term during such partial calendar year.  By April 30th of each calendar
year, Landlord will provide Tenant an itemized statement (“Additional Rent
Statement”) showing in reasonable detail all additional rent due (or any
overpayments made) under this Section and Tenant (or Landlord, as the case may
be) shall pay such amount within thirty (30) days after receipt of such
statement; provided, however, in no event shall Tenant be released of its
obligation for such additional rent if Landlord fails to send Tenant a
statement within the time specified above.  In no event shall the Base
Rent or other sums due under this Lease ever be reduced due to the operation of
this Section 2.3 or to Operating Expenses being less for the Property than the
Operating Expenses for the Base Year.  Each Additional Rent Statement
furnished by Landlord to Tenant shall be conclusive and binding upon Tenant
unless, within sixty (60) days after receipt of such Additional Rent Statement
(“Dispute Period”), Tenant shall notify Landlord in writing that it disputes
the correctness of such statement, stating the reason for such dispute. 
Pending the determination of such dispute, Tenant shall timely pay the full
amount of the Additional Rent payable by Tenant in accordance with each such
statement that Tenant is disputing.  In the event Tenant gives timely
notice of a dispute within the Dispute Period, Tenant, or its authorized agent,
at Tenant’s expense, shall have the right, upon reasonable advance notice and
during normal business hours, to inspect the books and records of Landlord
applicable to the determination of an statement of any additional rent payable
by Tenant for the purpose of verifying in good faith the information contained
in such Additional Rent Statement for a period of up to one year after the
receipt of such statement by Tenant.  Landlord shall maintain at its
office or the office of its managing agent full, complete and accurate books
and records prepared in accordance with prudent building management practices
with respect to Operating Expenses, and shall retain such records with respect
to each calendar year for a period not less than two (2) years following
delivery of the annual statement for such year.  Upon completion of the
audit and/or inspection, if the calculation of Tenant’s Proportionate Share of
Operating Expenses, indicates that Tenant overpaid, or underpaid, rent for any
audited calendar year, Landlord shall pay Tenant, or Tenant shall pay Landlord,
as applicable, upon thirty (30) days prior written notice, an amount equal to
such overpayment or underpayment.  In no event shall the form of such
payment be as a credit against rent next due or, upon expiration of this Lease.

 

The term “Operating Expenses”
includes all expenses of Landlord with respect to the ownership, maintenance,
servicing, repairing and operation of the Property, including, but not limited
to:  maintenance, repair and replacement costs; electricity charges for
the Common Areas; water, sewer, gas and other utility charges; window washing
for the Building and janitorial services for the Common Areas; trash and snow
and ice removal; landscaping and pest control; management fees and services
rendered payable to third parties; wages and benefits payable to employees of
Landlord’s property management company whose duties are directly connected with
the operation and maintenance of the Property; all services, supplies, repairs,
replacement or other expenses for maintaining and operating the Property
including parking and Common Areas; the cost of any capital improvement made to
the Property by Landlord amortized over a fifteen (15) year period; the cost of
installation of any device or other equipment which is installed to improve the
operating efficiency of any system and reduce Operating Expenses; all real
property taxes and installments of special assessments which accrue against the
Property during the term of this Lease; governmental levies or charges of any
kind or nature assessed or imposed on the Property, whether by state, county,
city of any political subdivision thereof; all insurance premiums Landlord is
required to pay or deems necessary to pay, including hazard insurance and
public liability insurance, with respect to the Property; all amounts paid for
liability and casualty loss pursuant to insurance deductible amounts except in
the case of negligence on behalf of Landlord or Landlord’s agents; and any
amounts considered an operating, maintenance or management expense under
generally accepted accounting principles.

 

The
term “Operating Expenses” does not include: expenses for repairs, restoration
or other work occasioned by fire, wind, the elements or other casualty that are
paid by insurance; income and franchise taxes of Landlord; expenses incurred in
leasing to or procuring of tenants, leasing commissions, advertising expenses
and expenses for the renovating of space for Landlord or for new tenants;
interest or principal payments on any mortgage encumbering the Property;
expenses for repairs or other work occasioned by condemnation, to the extent
reimbursed by condemnation proceeds; any expense fully reimbursed to Landlord
by Tenant or any other tenant of the Property, or any expenses billed to and
paid directly by same for their own account or on Landlord’s behalf; or legal
expenses incurred in connection with leasing the Property or enforcement of
Property leases.  Tenant’s obligations under this Section shall survive
the expiration or earlier termination of the Lease.

 

 

5

 

 

               
2.5         
Late Payment Charge.  Other remedies for nonpayment
notwithstanding, if any monthly rental payment is not received by Landlord on
or before the fifth (5th) business day of the month for which the
rent is due, or if any other payment hereunder due Landlord by Tenant is not
received by Landlord within five (5) days of the date such amount became due,
Tenant shall pay the Late Charge multiplied by such past due amount, which
shall become due and payable in addition to such amounts owed under this
Lease.  All amounts more than thirty (30) days past due shall accrue interest
at the Default Rate.

 

               
2.6         
Security Deposit.  The Security
Deposit shall be paid concurrent with Tenant’s execution of this Lease and held
by Landlord for the performance of Tenant’s covenants and obligations under
this Lease, it being expressly understood that the Security Deposit shall not
be considered an advance payment of rental or a measure of Landlord’s damage in
case of default hereunder by Tenant, and shall be held by Landlord without
payment of any interest thereon.  Upon the occurrence of any event of
default by Tenant under this Lease, Landlord may, from time to time, without
prejudice to any other remedy, use the Security Deposit to the extent necessary
to make good any arrears of rent, or to repair any damage or injury, or pay any
expense or liability incurred by Landlord as a result of the event of default
or breach of covenant, and any remaining balance of the Security Deposit shall
be returned by Landlord to Tenant upon the termination of this Lease.  If
any portion of the Security Deposit is so used or applied, Tenant shall upon
ten (10) days written notice from Landlord, deposit with Landlord by cash or
cashier’s check an amount sufficient to restore the Security Deposit to its
original amount.  The Security Deposit may be assigned and transferred by
Landlord to the successor in interest of Landlord and, upon acknowledgment by
such successor of receipt of such security and its assumption of the obligation
to account to Tenant for such security in accordance with the terms of this
Lease, Landlord shall thereby be discharged of any further obligation relating
thereto.

 

               
2.7          Holding Over.  If Tenant
does not vacate the Premises upon the expiration or earlier termination of this
Lease, Tenant shall be a tenant at sufferance for the holdover period and all
of the terms and provisions of this Lease shall be applicable during that
period, except that Tenant shall pay Landlord (in addition to any other sums
payable under this Lease) as Base Rent for the period of such holdover an
amount equal to one and one half times the Base Rent which would have been
payable by Tenant had the holdover period been a part of the original term of
this Lease (without waiver of Landlord’s right to recover damages as permitted
by law).  Upon the expiration or earlier termination of this Lease, Tenant
agrees to vacate and deliver the Premises, and all keys thereto, to Landlord
upon delivery to Tenant of notice from Landlord to vacate.  The rent
payable during the holdover period shall be payable to Landlord on
demand.  No holding over by Tenant, whether with or without the consent of
Landlord, shall operate to extend the term of this Lease.  Tenant shall
indemnify Landlord against all claims made by any tenant or prospective tenant
against Landlord resulting from delay by Landlord in delivering possession of
the Premises to such other tenant or prospective tenant.

 

ARTICLE 3 – OCCUPANCY, USE AND
OPERATIONS

 

               
3.1          Use.  Tenant
warrants and represents to the Landlord that the Premises shall be used and
occupied only for the Permitted Use.  Tenant shall occupy the Premises,
conduct its business and control its agents, employees, invitees and visitors
in such a manner as is lawful, reputable and will not create a nuisance to
other occupants or tenants in the Building.  Tenant shall not solicit
business, distribute handbills or display merchandise within the Common Areas,
or take any action which would interfere with the rights of other persons to
use the Common Areas.  Tenant shall not permit any operation which emits
any odor or matter which intrudes into other portions of the Property, use any
apparatus or machine which makes undue noise or causes vibration in any portion
of the Property or otherwise interfere with, annoy or disturb any other tenant
in its normal business operations or Landlord in its management of the
Property.  Tenant shall neither permit any waste on the Premises nor allow
the Premises to be used in any way which would, in the opinion of Landlord, be
extra hazardous on account of fire or which would in any way increase or render
void the fire insurance on the Property.  Tenant has inspected the
Premises and the Building and accepts them in their present “AS-IS”
condition.  Tenant, at its expense, shall comply with all applicable legal
requirements and with the rules and regulations of the Property adopted or
amended from time to time by Landlord except to the degree such legal
requirements or rules and regulations apply to Hazardous Materials existing at
the Premises as of the date hereof.  Notwithstanding, Tenant shall be
liable for compliance to the extent Tenant is responsible for the aggravation
of such Hazardous Materials.

 

 

6

               
3.2         
Signs.  Except as set forth herein, no signs of any type
or description shall be erected, placed or painted in or about the Premises or
Building except those signs submitted to and approved by Landlord in writing or
supplied by Landlord for Tenant’s use and which signs are in conformity with
any governmental regulations, deed restrictions, statutes, etc.  Landlord
reserves the right to remove, at Tenant’s expense, all signs other than signs
approved in writing by Landlord or supplied by Landlord under this Section 3.2,
without notice to Tenant and without liability to Tenant for any damages
sustained by Tenant as a result thereof, and Tenant shall repair any damage
caused by such removal.  Except for any signage installed by Landlord on
the directory in the Building lobby entrance, all permitted signs shall, at the
sole cost and expense of Tenant, be maintained and repaired in first-class
condition by Tenant through the Term.  Upon expiration or termination of
this Lease, all signs installed by Tenant shall be removed and any damage resulting
therefrom shall be promptly repaired, or such removal and repair may be done by
Landlord and the cost charged to Tenant as additional rent.

 

               
3.3          Compliance with
Laws, Rules and Regulations.  Tenant, at Tenant’s sole
cost and expense, shall comply with all laws, ordinances, orders, rules and
regulations of state, federal, municipal or other agencies or bodies having
jurisdiction over the use, condition or occupancy of the Premises.  Tenant
shall procure at its own expense all permits and licenses required for the
transaction of its business in the Premises.  Tenant will comply with the
rules and regulations of the Property adopted by Landlord, which are set forth
in Exhibit “E” attached to this Lease.  If Tenant is not complying
with such rules and regulations, or if Tenant is in any way not complying with
this Article 3, then, notwithstanding anything to the contrary contained
herein, Landlord may, at its election, enter the Premises without liability
therefor and fulfill Tenant’s obligations.  Tenant shall reimburse
Landlord on demand for any expenses which Landlord may incur in effecting
compliance with Tenant’s obligations and agrees that Landlord shall not be
liable for any damages resulting to Tenant from such action.  Landlord
shall have the right at all times to change and amend the rules and regulations
in any reasonable manner as it may deem advisable for the safety, care,
cleanliness, preservation of good order and operation or use of the Property or
the Premises.  All changes and amendments to the rules and regulations of
the Property will be forwarded by Landlord to Tenant in writing and shall
thereafter be carried out and observed by Tenant.  With respect to any
alteration or installation of improvements, fixtures or facilities required by
any legal requirement (including the Americans With Disabilities Act of 1990),
Tenant shall be responsible for compliance at its expense to the extent such
requirement is applicable to the Premises.  Landlord will, at its expense
comply with any such requirement to the extent applicable to the Common Areas;
provided, however, that to the extent that the requirement would not have
applied but for this Lease or Tenant’s specific use of the Premises or an act
or mission of Tenant, its employees, agents or invitees, then Tenant shall pay
the cost of such compliance to Landlord on demand.

 

               
3.4         
Environmental Matters. 
(a)              
Tenant shall not
cause or permit any Hazardous Material to be used, stored, generated, or
disposed of on or in the Premises by Tenant, Tenant’s agents, employees,
contractors, or invitees.  If Hazardous Materials are used, stored,
generated, or disposed of on or in the Premises, or if the Premises become
contaminated in any manner for which Tenant is legally liable, Tenant shall
indemnify, defend and hold harmless the Landlord, its officers, directors, trustees, shareholders, members, partners,
employees and agents from any and all claims, demands, causes of action,
damages, fines, judgments, penalties, costs, liabilities, expenses or losses
(including, without limitation, a decrease in value of the Premises, damages
caused by loss or restriction of rentable or usable space, or any damages
caused by adverse impact on marketing of the space, and any and all sums paid
for settlement of claims, litigation expenses, attorneys’ fees, court costs,
consultant, and expert fees) of whatever kind or nature, known or unknown,
contingent or otherwise, arising during or after the Lease term and arising as
a result of that contamination by Tenant.  This indemnification includes,
without limitation, any and all costs incurred because of any investigation of
the site or any cleanup, removal, or restoration mandated by a federal, state,
or local agency or political subdivision.  Without limitation of the
foregoing, if Tenant causes or permits the presence of any Hazardous Material
on the Premises and that results in contamination, Tenant shall promptly, at
its sole expense, take any and all necessary actions to return the Premises to
the condition existing prior to the presence of any such Hazardous Material on
the Premises.  Tenant shall first obtain Landlord’s approval for any such
remedial action.  The provisions of this paragraph shall be in addition to
any other obligations and liabilities Tenant may have to Landlord at law or
equity and shall survive the transactions contemplated herein and shall survive
the termination of this Lease.  Notwithstanding the foregoing, Tenant may
use nominal amounts of Hazardous Materials as are normal and customary for
general office use, provided that Tenant complies with all applicable laws
relating thereto.

 

 

7

 

                               
(b)           Tenant shall
not discharge, leak, or emit, or permit to be discharged, leaked, or emitted,
any material into the atmosphere, ground, sewer system, or any body of water,
if that material (as is reasonably determined by the Landlord, or any
governmental authority) does or may pollute or contaminate the same, or may
adversely affect (i) the health, welfare, or safety of persons, whether located
on the Premises or elsewhere, or (ii) the condition, use or enjoyment of the
building or any other real or personal property.  Tenant shall immediately
notify Landlord of any release of any Hazardous Material on or near the
Premises whether or not such release is in a quantity that would otherwise be
reportable to a public agency and shall also comply with the notification
requirements of any applicable state, local, or federal law or regulation.

 

               
3.5         
Warranty of Possession.  Landlord and Tenant each
warrants that it has the right and authority to execute this Lease, and
Landlord warrants to Tenant, that upon payment of the required rents by Tenant
and subject to the terms, conditions, covenants and agreements contained in
this Lease, Tenant shall have possession of the Premises during the full term
of this Lease, without hindrance from Landlord or any person or persons
lawfully claiming the Premises by, through or under Landlord (but not
otherwise); subject, however, to all mortgages, deeds of trust, leases and
agreements to which this Lease is subordinate and to all laws, ordinances,
orders, rules and regulations of any governmental authority.

 

               
3.6          Inspection.  Landlord or
its authorized agents shall at any and all reasonable times and upon
twenty-four (24) hours prior notice (except in the event of an emergency or to
provide any service or repair required hereunder) have the right to enter the
Premises to inspect the same, to show the Premises to prospective mortgagees,
purchasers or prospective tenants, and to alter or improve or repair the
Premises or any other portion of the Property.  Tenant hereby waives any
claim for abatement or reduction of rent or for any damages for injury or
inconvenience to or interference with Tenant’s business, for any loss of
occupancy or use of the Premises, and for any other loss occasioned
thereby.  Landlord shall at all times have and retain a key with which to
unlock all of the doors in, upon and about the Premises.  Tenant shall not
change Landlord’s lock system or in any other manner prohibit Landlord from
entering the Premises.  Landlord shall have the right at all times to enter
the Premises by any means in the event of an emergency without liability
therefor.

 

               
3.7         
Personal Property Taxes.  Tenant shall be liable for all
taxes levied against leasehold improvements, merchandise, personal property,
trade fixtures and all other taxable property located in the Premises.  If
any such taxes for which Tenant is liable are levied against Landlord or
Landlord’s property and if Landlord elects to pay the same or if the assessed
value of Landlord’s property is increased by inclusion of personal property and
trade fixtures placed by Tenant in the Premises and Landlord elects to pay the
taxes based on such increase, Tenant shall pay to Landlord, upon demand, that
part of such taxes for which Tenant is primarily liable pursuant to the terms
of this Section.  Tenant shall pay when due any and all taxes related to
Tenant’s use and operation of its business in the Premises.

 

ARTICLE 4 – UTILITIES AND
SERVICES

 

               
4.1          Building Services.  During the
Term, Landlord shall provide (a) water at those points of supply provided for
general use of other tenants in the Building, (b) central heating and air
conditioning in season, and at temperatures and in amounts as are considered by
Landlord to be standard or in compliance with any governmental regulations,
such service at times other than regular hours to be furnished upon not less
than twenty-four (24) hours advance notice from Tenant, who shall bear the
entire cost thereof at the rate established by Landlord, (c) self-operated
passenger elevator service, if applicable, and (d) janitorial service,
performed in a manner consistent with buildings of a similar nature and
character to the Building, for the Premises, Building and Common Areas which
shall include the sweeping and cleaning of floors, the cleaning of lavatories
and toilets located in the Premises and Common Areas, the washing of exterior
windows, the dusting of light fixtures and air grills, and the disposal of
trash from the Premises, Building and Common Areas.  Tenant shall pay all
telephone and telecommunications charges and shall provide all services not
enumerated in this Section.  Landlord may, in its sole discretion, provide
additional services not enumerated herein.  Failure by Landlord to any
extent to provide these defined services or any other services not enumerated,
or any cessation thereof, shall not render Landlord liable in any respect for
damages to either person or property, be construed as an eviction of Tenant,
work an abatement of rent or relieve Tenant from 

 

 

8

 

fulfillment of any covenant in
this Lease.  If any of the equipment or machinery useful or necessary for
provision of utility services, and for which Landlord is responsible, breaks
down, or for any cause ceases to function properly, Landlord shall use
reasonable diligence to repair the same promptly, but Tenant shall have no
claim for rebate of rent or damages on account of any interruption in service
occasioned from the repairs.  Landlord reserves the right from time to
time to make changes in the utilities and services provided by Landlord to the
Property.  Tenant shall pay all telephone charges and all utilities which
are separately metered to the Premises.

 

               
4.2          Theft or Burglary.  Landlord
shall not be liable to Tenant for losses to Tenant’s property or personal
injury caused by criminal acts or entry by any person into the Premises or the
Property.

 

               
4.3         
Excessive Utility Consumption.  Tenant shall pay all
utility costs occasioned by electrodata processing machines, telephone
equipment, computers and other equipment of high electrical consumption as
determined by Landlord, including (without limitation) the cost of installing,
servicing and maintaining any special or additional inside or outside wiring or
lines, meters or submeters, transformers, poles, air conditioning costs, or the
cost of any other equipment necessary to increase the amount or type of
electricity or power available to the Premises.

 

ARTICLE 5 – REPAIRS AND
MAINTENANCE

 

               
5.1          Landlord Repairs.  Landlord
shall not be required to make any improvements, replacements or repairs of any
kind or character to the Premises during the term of this Lease except as are
set forth in this Section.  Landlord shall maintain only the roof,
foundation, parking and Common Areas, the structural soundness of the exterior
walls, doors, corridors, windows and other structures or equipment serving the
Premises, including the electrical system and HVAC systems.  Landlord’s
cost of maintaining, replacing and repairing the items set forth in this
Section are subject to the additional rent provisions in Section 2.4. 
Landlord shall not be liable to Tenant, except as expressly provided in this
Lease, for any damage or inconvenience, and Tenant shall not be entitled to any
damages nor to any abatement or reduction of rent by reason of any maintenance,
repairs, replacements, alterations or additions made by Landlord under this
Lease.  All requests for repairs or maintenance that are the
responsibility of Landlord pursuant to this Lease must be made in writing to
Landlord.

 

               
5.2          Tenant Repairs.  Tenant, at
its own cost and expense, shall perform such maintenance, repairs and
replacements as are required in order to keep the Premises in a first-class
condition (except only for those items that are the responsibility of Landlord
under Section 5.1) and shall repair or replace any damage or injury to all or
any part of the Premises and/or the Property, caused by any act or omission of
Tenant or Tenant’s agents, employees, invitees, licensees or visitors.

 

               
5.3         
Tenant Damages.  Tenant shall not allow any damage to be
committed on any portion of the Premises or Property, 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 excepted.  The cost and expense of any
repairs necessary to restore the condition of the Premises shall be borne by
Tenant.

 

ARTICLE 6 – ALTERATIONS AND
IMPROVEMENTS

 

               
6.1         
Construction.  Tenant acknowledges and agrees that
Landlord has not undertaken to perform any modification, alteration or
improvements to the Premises, and Tenant further waives any defects in the
Premises and accepts (1) the Premises as suitable for the purpose for which
they are leased and (2) the Property and every part and appurtenance thereof as
being in good and satisfactory condition.

 

               
6.2         
Tenant Improvements.  Tenant shall not make or allow to
be made any non-structural alterations, physical additions or improvements in
or to the Premises without first obtaining the written consent of Landlord,
which consent may in the sole and absolute discretion of Landlord be
denied.  Landlord’s failure to respond in writing to Tenant’s request for
any alterations, physical additions or improvements within fifteen (15) days of
receipt thereof shall be deemed Landlord’s disapproval of such request. 
Any non-structural alterations, physical additions or 

 

9

 

improvements in or to the
Premises made by Tenant shall be performed in accordance with Applicable
Laws.  Any alterations, physical additions or improvements to the Premises
made by or installed by either party hereto shall remain upon and be
surrendered with the Premises and become the property of Landlord upon the
expiration or earlier termination of this Lease without credit to Tenant; provided,
however, Landlord, at its option, may require Tenant to remove any physical
improvements or additions and/or repair any alterations, except those performed
in accordance with the Tenant Improvements Rider attached hereto, in order to
restore the Premises to the condition existing at the time Tenant took
possession, all costs of removal and/or alterations to be borne by
Tenant.  This clause shall not apply to moveable equipment, furniture or
moveable trade fixtures owned by Tenant, which may be removed by Tenant at the
end of the term of this Lease if Tenant is not then in default and if such
equipment and furniture are not then subject to any other rights, liens and
interests of Landlord.  Tenant shall have no authority or power, express
or implied, to create or cause any mechanic’s or materialman’s lien, charge or
encumbrance of any kind against the Premises, the Property or any portion
thereof.  Tenant shall promptly cause any such liens that have arisen by
reason of any work claimed to have been undertaken by or through Tenant to be
released by payment, bonding or otherwise within ten (10) days after Tenant
first has notice thereof, and shall indemnify and defend Landlord against
liability or loss arising out of any such claim (including, without limitation,
legal fees and court costs).

 

6.3          Common
and Service Area Alterations.  Landlord shall have the
right to decorate and to make repairs, alterations, additions, changes or
improvements, whether structural or otherwise, in, about or on the Property or
any part thereof, and to change, alter, relocate, remove or replace service
areas and/or Common Areas, to place, inspect, repair and replace in the
Premises (below floors, above ceilings or next to columns) utility lines, pipes
and the like to serve other areas of the Property outside the Premises and to
otherwise alter or modify the Property, and for such purposes to enter upon the
Premises and, during the continuance of any such work, to take such measures
for safety or for the expediting of such work as may be required, in Landlord’s
judgment, all without affecting any of Tenant’s obligations hereunder.

 

6.4          Security
System.  Subject to Landlord’s prior written approval of
detailed plans and specifications, Tenant shall be permitted to install a
security monitoring alarm system (“Security System”) within the Premises. 
Tenant shall pay all costs of installation and maintenance of the Security
System.  Tenant hereby agrees to indemnify and hold Landlord harmless from
and against any losses, claims, liabilities, costs and expenses incurred by
Landlord and arising from Tenant’s installation, use, operation, or removal of
the Security System, or the existence of the Security System within the
Premises.  At the expiration or earlier termination of the Term, Tenant
shall, at its sole cost and expense, if Landlord so directs, remove the
Security System and restore the Premises to the same condition as such were in
prior to installation of the Security System.

 

ARTICLE 7 – CASUALTY AND INSURANCE

 

               
7.1          Substantial
Destruction.  If the Premises should be totally destroyed by
fire or other casualty, or if in the determination of Landlord the Premises
should be damaged so that rebuilding cannot reasonably be completed substantially
within one hundred fifty (150) days after Landlord’s receipt of written
notification by Tenant of the destruction, or if the Premises are damaged or
destroyed by casualty not covered by the standard broad form of fire and
extended coverage insurance then in common use in the state where the Premises
are located, or if the insurance proceeds received by Landlord from its
insurance are not sufficient to completely restore the damage or destruction,
or if all or any portion of such insurance proceeds are required by its lender
to be applied against debt owed to such lender, or if the damage occurs during
the last twelve (12) months of the Term, then, at Landlord’s sole option, this
Lease may be terminated and, in such event, the rent shall be abated for the
unexpired portion of the Lease, effective as of the date of the damage.

 

               
7.2         
Partial Destruction.  If following damage or destruction
to the Premises by fire or other casualty, this Lease is not terminated
pursuant to Section 7.1 hereof, Landlord shall proceed with reasonable
diligence to rebuild or repair the Building or other improvements to
substantially the same conditions in which they existed prior to the
damage.  If the Premises are to be rebuilt or repaired and are untenantable
in whole or in part following the damage, and the damage or destruction was not
caused or contributed to by act or negligence of Tenant, its agents, employees,
invitees or those for whom Tenant is responsible, the Base Rent payable under
this Lease during the 

 

 

10

 

period for which the Premises
are untenantable shall be reduced to an amount determined by multiplying the
Base Rent that would otherwise be payable but for this provision by the ratio
that the portion of the Premises not rendered untenantable bears to the total
area of the Premises prior to the casualty, Landlord’s obligation to rebuild or
restore under this Section shall be limited to restoring to substantially the
condition in which the same existed prior to the casualty, and Tenant shall,
promptly after the completion of such work by Landlord, proceed with reasonable
diligence and at Tenant’s sole cost and expense to otherwise make the Premises
suitable for Tenant’s use.

 

               
7.3          Property Insurance. 
Landlord shall at all times during the term of this Lease insure the
Property against all risk of direct physical loss in an amount and with such
deductibles as Landlords considers appropriate; provided, Landlord shall have
the right to self-insure against the above-described risks and Landlord shall
not be obligated in any way or manner to insure any personal property
(including, but not limited to, any furniture, machinery, goods or supplies) of
Tenant upon or within the Premises, any fixtures installed or paid for by
Tenant upon or within the Premises, or any improvements which Tenant may
construct on the Premises.  Tenant shall have no right in or claim to the
proceeds of any policy of insurance maintained by Landlord even if the cost of
such insurance is borne by Tenant as set forth in Article 2.

 

               
7.4          Waiver of Recovery.  ANYTHING IN
THIS LEASE TO THE CONTRARY NOTWITHSTANDING, LANDLORD AND TENANT HEREBY WAIVE
AND RELEASE EACH OTHER OF AND FROM ANY AND ALL RIGHT OF RECOVERY, CLAIM, ACTION
OR CAUSE OF ACTION, AGAINST EACH OTHER, THEIR AGENTS, OFFICERS AND EMPLOYEES,
FOR ANY LOSS OR DAMAGE THAT MAY OCCUR TO THE PREMISES, IMPROVEMENTS TO THE
PROPERTY, OR PERSONAL PROPERTY WITHIN THE PROPERTY, BY REASON OF FIRE OR THE
ELEMENTS OR ANY CAUSE THAT IS, OR IS REQUIRED BY THE TERMS OF THIS LEASE TO BE
INSURED AGAINST,  (WHETHER OR NOT ACTUALLY INSURED) REGARDLESS OF CAUSE OR
ORIGIN, INCLUDING NEGLIGENCE OF LANDLORD OR TENANT AND THEIR AGENTS, OFFICERS
AND EMPLOYEES, AND STRICT LIABILITY OF ANY KIND, REGARDLESS OF THE AMOUNT OF
THE PROCEEDS, IF ANY, PAYABLE UNDER SUCH INSURANCE.  LANDLORD AND TENANT
AGREE IMMEDIATELY TO GIVE THEIR RESPECTIVE INSURANCE COMPANIES WHICH HAVE
ISSUED POLICIES OF INSURANCE COVERING ALL RISK OF DIRECT PHYSICAL LOSS SUBJECT
TO TERMS AND LIMITATIONS OF POLICY, WRITTEN NOTICE OF THE TERMS OF THEMUTUAL
WAIVERS CONTAINED IN THIS SECTION, AND TO HAVE THE INSURANCE POLICIES PROPERTY
ENDORSED, IF NECESSARY, TO PREVENT THE INVALIDATION OF THE INSURANCE COVERAGES
BY REASON OF THE MUTUAL WAIVERS.

 

               
7.5          Hold Harmless.  Landlord
shall not be liable to Tenant or to Tenant’s customers, employees, agents,
guests or invitees, or to any other person whomever, for any injury to persons
or damage to property on or about the Premises or the Common Area, including
but not limited to, consequential damage, (1) caused by any act or omission of
Tenant, its employees, subtenants, licensees and concessionaires or of any
other person entering the Property or the Premises by express or implied
invitation of Tenant, or (2) arising out of the use of the Premises or the
Property by Tenant, its employees, subtenants, licensees, concessionaires or
invitees, or (3) arising out of any breach or default by Tenant in the
performance of its obligations hereunder, or (4) caused by the improvements
located in the Premises becoming out of repair or by defect in or failure of
equipment, pipes, or wiring, or by broken glass, or by the backing up of
drains, or by gas, water, steam, electricity or oil leaking, escaping or
flowing into the Premises or Property, or (5) arising out of the failure or
cessation of any service provided by Landlord (including security service and
devices).  Tenant hereby agrees to indemnify Landlord and hold Landlord
harmless from any liability, loss, expense or claim (including, but not limited
to reasonable attorneys’ fees) (a) caused by any act or omission of Tenant, its
employees, subtenants, licensees and concessionaires or of any other person
entering the Property or the Premises by express or implied invitation of
Tenant, or (b) arising out of the use of the Premises or the Property by
Tenant, its employees, subtenants, licensees, concessionaires or invitees, or
(c) arising out of any breach or default by Tenant in the performance of its
obligations hereunder.  Nor shall Landlord be liable to Tenant for any
loss or damage that may be occasioned by or through the acts or omissions of
other tenants of the Property or of any other persons whomsoever, excepting only
duly authorized employees and agents of Landlord acting within the scope of
their authority.  Further, Tenant specifically agrees to be responsible
for and indemnify and hold Landlord harmless from any and all damages or
expenses of whatever kind arising out of or caused by a burglary, theft,
vandalism, malicious mischief or other illegal acts performed in, at or from
the Premises, except for damages 

 

 

11

 

or expenses resulting from
Landlord’s, or Landlord’s agents’ employees’, officers’, or directors’ gross
negligence or willful misconduct.

 

               
7.6          Liability
Insurance.  Tenant at all times during the Term shall, at its
own expense, keep in full force and effect comprehensive general liability
insurance which may be combined with an umbrella liability policy with
“personal injury” coverage and contractual liability coverage, with minimum
limits of $3,000,000.00 on account of bodily injuries to, or death of, on or
more than one person as the result of any one accident or occurrence and
$1,000,000.00 on account of damage to property.  Tenant shall also carry
insurance against fire and such other risks as are from time to time included
in Standard All-Risk Insurance (including coverage against vandalism and
malicious mischief) for the full insurable value of Tenant’s trade fixtures,
furnishings, wall covering, carpeting, drapes, equipment and all items of
personal property of Tenant located on or in the Premises.  Landlord and
Landlord’s property management company shall be named as additional insureds on
said policy.  All insurance policies or duly executed certificates for the
same required to be carried by Tenant under this Lease, together with
satisfactory evidence of the payment of the premium thereof, shall be deposited
with Landlord on the date Tenant first occupies the Premises and upon renewals
of such policies not less than thirty (30) days prior to the expiration of the
term of such coverage.  All insurance required to be carried by Tenant
under this lease shall be in form and content, and written by insurers
acceptable to Landlord, in its sole discretion.  If Tenant shall fail to
comply with any of the requirements contained relating to insurance, Landlord
may obtain such insurance and Tenant shall pay to Landlord, on demand as additional
rent hereunder, the premium cost thereof.

 

ARTICLE 8 – CONDEMNATION

 

               
8.1         
Substantial Taking.  If in the determination of Landlord
all or a substantial part of the Premises are taken for any public or
quasi-public use under any governmental law, ordinance or regulation, or by
right of eminent domain or by purchase in lieu thereof, and in the
determination of Landlord the taking would prevent or materially interfere with
the use of the Premises for the purpose for which it is then being used, this
Lease shall, at the option of either Landlord or Tenant, terminate and the rent
shall be abated during the unexpired portion of this Lease effective on the
date physical possession is taken by the condemning authority.

 

               
8.2         
Partial Taking.  If in the determination of Landlord a
portion of the Premises shall be taken for any public or quasi-public use under
any governmental law, ordinance or regulation, or by right of eminent domain or
by purchase in lieu thereof, and this Lease is not terminated as provided in
Section 8.1 above, Landlord shall restore and reconstruct, to the extent of
condemnation proceeds (excluding any proceeds for land) actually received after
the exercise by any mortgagee of the Property of an option to apply such
proceeds against Landlord’s debt to such mortgagee, the Property and other
improvements on the Premises to the extent necessary to make it reasonably
tenantable.  The rent payable under this Lease during the unexpired portion
of the term shall be reduced to an amount determined by multiplying the Base
Rent that would otherwise be payable but for this provision by the ratio that
the portion of the Premises not rendered untenantable due to such taking bears
to the total area of the Premises prior to the taking.  If Landlord fails
to substantially complete such restoration and reconstruction within one
hundred eighty (180) days of the date of physical possession by the condemning
authority, Tenant may at its option terminate this Lease by delivering written
notice of termination to Landlord, whereupon all rights and obligations of this
Lease shall cease to exist.

 

               
8.3         
Condemnation Proceeds.  All compensation awarded for any
taking (or the proceeds of private sale in lieu thereof), whether for the whole
or a part of the Premises, shall be the property of Landlord (whether such
award is compensation for damages to Landlord’s or Tenant’s interest in the
Premises), and Tenant hereby assigns all of its interest in any such award to
Landlord; provided, however, Landlord shall have no interest in any award made
to Tenant for loss of business or for taking of Tenant’s fixtures and other
property within the Premises if a separate award for such items is made to
Tenant.

 

ARTICLE 9 – ASSIGNMENT OR
SUBLEASE

 

               
9.1          Tenant Assignment. 
Tenant shall not assign, in whole or in part, this Lease, or allow it
to be assigned, in whole or in part, by operation of law or otherwise
(including, without limitation, by merger, dissolution 

 

12

 

or transfer of a controlling
interest in any partnership or corporate Tenant, which merger, dissolution or
transfer shall be deemed an assignment) or mortgage or pledge the same, or
sublet the Premises, in whole or in part, without the prior written consent of
Landlord, which consent shall not be unreasonably withheld.   In
considering whether to consent, Landlord may take into account, among other
factors, the reputation and creditworthiness of the proposed transferee, the
type of business proposed, the desires of other occupants and tenants in the
Building, whether Tenant is likely to remain in the city where the Premises are
located (so Tenant may respond if the proposed transferee subsequently
defaults) and any other matters Landlord believes are pertinent.  In no
event shall any such assignment or sublease ever release Tenant or any
guarantor from any obligation or liability hereunder.  No assignee or
sublessee of the Premises of any portion thereof may assign or sublet the
Premises or any portion thereof.

 

               
9.2         
Landlord Assignment.  Landlord shall have the right to
sell, transfer or assign, in whole or in part, its rights and obligations under
this Lease and in the Property.  Any such sale, transfer or assignment
shall operate to release Landlord from any and all liabilities under this Lease
arising after the date of such sale, assignment or transfer.

 

9.3          Rights
of Mortgagee.  Tenant accepts this Lease subject and
subordinate to any recorded lease, mortgage, deed to secure debt or deed of
trust lien presently existing, if any, or hereafter encumbering the Property
and any renewals, modifications, extensions or replacements thereof and to all
existing ordinances and recorded restrictions, covenants, easements, and
agreements with respect to the Property.  Landlord hereby is irrevocably
vested with full power and authority to subordinate Tenant’s interest under
this Lease to any mortgage, deed to secure debt or deed of trust lien hereafter
placed on the Property, and Tenant agrees upon demand to execute additional
instruments subordinating this Lease as Landlord may require.  Upon any
foreclosure, or any other transfer of Landlord’s interest in the Property,
whether or not in connection with a mortgage, Tenant hereby does, and hereafter
agrees to attorn to the purchaser at such foreclosure sale or to the grantee
under any deed in lieu of foreclosure or to any other transferee of Landlord’s
interest, and shall recognize such purchaser, grantee, or other transferee as
Landlord under this Lease, and no further attornment or other agreement shall
be required to effect or evidence Tenant’s attornment to and recognition of
such purchaser or grantee as Landlord hereunder.  Such agreement of Tenant
to attorn shall survive any such foreclosure sale, trustee’s sale, conveyance
in lieu thereof, or any other transfer of Landlord’s interest in the
Property.  Tenant, upon demand, at any time, before or after any such
foreclosure sale, trustee’s sale, conveyance in lieu thereof, or other transfer
shall execute, acknowledge and deliver to the mortgagee any written instruments
and certificates evidencing such attornment as the mortgagee or other
prospective transferee may reasonably require, and Tenant hereby irrevocably
appoints Landlord as Tenant’s agent and attorney-in-fact for the purpose of
executing, acknowledging, and delivering any such instruments and
certificates.  Notwithstanding anything to the contrary implied in this
Section, any mortgagee under any mortgage shall have the right at any time to
subordinate any such mortgage to this Lease on such terms and subject to such
conditions as the mortgagee in its discretion may consider appropriate.

 

               
9.4          Estoppel
Certificates.  Tenant agrees to furnish, from time to time,
within ten (10) days after receipt of a request from Landlord or Landlord’s
mortgagee, a statement certifying to the extent requested (a) the length of the
Term; the Commencement Date and the Commencement Date and the scheduled
expiration date of this Lease; the amount of the Base Rent; and (b) the
following, if true (or if not, specifying why not):  Tenant is in
possession of the Premises; the Lease is in full force and effect; the Lease is
unmodified (except as disclosed in such statement); Tenant claims no present
charge, lien or claim of offset against rent; the rent is paid for the current
month, but is not prepaid for more than one (1) month and will not be prepaid
for more than one (1) month in advance; there is no existing default by
Landlord; landlord has performed all inducements required by Landlord in
connection with this Lease, including construction obligations, and Tenant
accepts the Premises as constructed; and such other matters as may be reasonably
required by Landlord or Landlord’s mortgagee.  Any statement delivered pursuant to this
Article may be relied upon by any mortgagee, beneficiary, purchaser or
prospective purchaser of the Building or any interest therein.  Tenant’s
failure to deliver such statement within such time shall be conclusive upon
Tenant:  (l) that this Lease is in full force and effect, without
modification except as may be represented by Landlord; (2) that there are no
uncured defaults in Landlord’s performance, and (3) that not more than one
month’s rental has been paid in advance.  Tenant’s failure to deliver said
statement to Landlord within ten (10) working days of receipt shall constitute
a material default under this Lease and Landlord may, at Landlord’s option, terminate
the 

 

 

13

 

Lease, provided written notice of such termination is
received by Tenant prior to Landlord’s receipt of said statement.

 

ARTICLE 10 – LIENS

 

               
10.1       
Landlord’s Lien.  In addition to any statutory
Landlord’s lien and as security for payment of rent, damages and all other
payments required to be made by Tenant under this Lease, Tenant hereby grants
to Landlord a lien upon and security interest in all property of Tenant now or
subsequently located upon the Premises.  If Tenant is in default of any
provision of this Lease, Landlord may enter upon the Premises, by legal
process, and take possession of all or any part of such property, and may sell
all or any part of such property at a public or private sale, in one or successive
sales, with or without having such property at the sale, to the highest bidder
for cash, and, on behalf of Tenant, sell and convey all or part of such
property to the highest bidder, delivering to the highest bidder all of
Tenant’s title and interest in the property sold.  The proceeds of the
sale of such property shall be applied by Landlord toward the reasonable costs
and expenses of the sale, including attorneys’ fees, and then toward the
payment of all sums then due by Tenant to Landlord under the terms of this
Lease.  Any excess remaining shall be paid to Tenant or any other person
entitled thereto by law; and Tenant shall pay any deficiency forthwith.

 

10.2        Uniform
Commercial Code.  This Lease is intended as and constitutes a
security agreement within the meaning of the Uniform Commercial Code of the
state in which the Premises are situated.  Landlord, in addition to the
rights prescribed in this Lease, shall have all of the rights, titles, liens
and interests in and to Tenant’s property, now or hereafter located upon the
Premises, which may be granted a secured party (as that term is defined under
such Uniform Commercial Code), under this Lease.  Tenant will on request
execute and deliver to Landlord a financing statement (or continuation statement)
for the purpose of perfecting Landlord’s security interest under this
Lease.  Landlord may file this Lease, a photographic or other reproduction
of this Lease, or a memorandum of this Lease as a financing statement.

 

               
10.3       
Liens Arising from Tenant’s Work.  Tenant shall not
suffer or permit the interest of Landlord in either the Premises or the
Property to be subject to any construction, mechanics’, materialman’s liens or
liens of any kind.  All parties with whom Tenant may deal are put on
notice that Tenant has no power to subject Landlord’s interest to any claim or
lien of any kind or character, and all such persons so dealing with Tenant must
look solely to the credit of Tenant, and not to Landlord’s assets or interest. 
Tenant shall put all such parties with whom Tenant may deal on notice of the
terms of this Section.  If at any time a lien or encumbrance is filed
against either the Premises or the Property as a result of Tenant’s work,
materials, or obligations, Tenant shall promptly discharge said lien or
encumbrance by payment or bond.

 

ARTICLE 11 – DEFAULT AND
REMEDIES

 

               
11.1        Default by Tenant.  The following shall be deemed to
be events of default by Tenant under this Lease:  (1) Tenant’s failure to
pay any installment of Base Rent, Additional Rent or any other sum due
hereunder within seven (7) days after notice has been given that the payment is
delinquent; provided that Landlord shall not be obligated to send written
notice of a failure to pay more than two (2) times in any consecutive eighteen
(18) month period; (2) Tenant shall abandon the Premises; (3) Tenant or any
guarantor of Tenant’s obligations hereunder shall file a petition or be
adjudged bankrupt or insolvent under any applicable federal or state bankruptcy
or insolvency law or admit that it cannot meet its financial obligations as
they become due, or a receiver or trustee shall be appointed for all or
substantially all of the assets of Tenant or any guarantor of Tenant’s
obligations hereunder; (4) Tenant or any guarantor of Tenant’s obligations
hereunder shall make a transfer in fraud of creditors or shall make an
assignment for the benefit of creditors; (5) Tenant shall do or permit to be
done any act which results in a lien being filed against the Premises or the
Property; (6) the liquidation, termination, dissolution or (if the Tenant is a
natural person) the death of any Tenant or any guarantor of Tenant’s
obligations hereunder; or (7)  Tenant shall be in default of any other
term, provision or covenant of this Lease, other than those specified in
subparts (1) through (6), above, and such default is not cured within ten (10)
days after written notice thereof to Tenant.

 

 

14

 

 

               
11.2        Remedies for Tenant’s Default.  Upon the
occurrence of any event of default set forth in this Lease, Landlord shall have
the option to pursue any one or more of the remedies set forth in this Section
11.2 without any additional notice or demand:

 

                                               
               
(1)  Without declaring the terminated, Landlord may enter upon and take
possession of the Premises, by legal process, and lock out, expel or remove
Tenant and any other person who may be occupying all or any part of the Premises
without being liable for any claim for damages, and relet the Premises on
behalf of Tenant and receive the rent directly by reason of the
reletting.  Tenant agrees to pay Landlord on demand any deficiency that
may arise by reason of any reletting of the Premises; further, Tenant agrees to
reimburse Landlord for any expenditures made by it in order to relet the
Premises, including, but not limited to, remodeling and repair costs.

 

                                               
               
(2)  Without declaring the terminated, Landlord may enter upon the
Premises, by legal process, without being liable for any claim for damages, and
do whatever Tenant is obligated to do under the terms of this Lease.
 Tenant agrees to reimburse Landlord on demand for any expenses which
Landlord may incur in effecting compliance with Tenant’s obligations under this
Lease; further, Tenant agrees that Landlord shall not be liable for any damages
resulting to Tenant from effecting compliance with Tenant’s obligations under
this Lease caused by the negligence of Landlord or otherwise.

 

                                               
               
(3)  Landlord may terminate this Lease, in which event Tenant shall
immediately surrender the Premises to Landlord, and if Tenant fails to
surrender the Premises, Landlord may, without prejudice to any other remedy
which it may have for possession or arrearages in rent, enter upon and take
possession of the Premises, by legal process, and lock out, expel or remove
Tenant and any other person who may be occupying all or any part of the
Premises without being liable for any claim for damages.  Tenant agrees to
pay on demand the amount of all loss and damage which Landlord may suffer for
any reason due to the termination of this Lease under this Section 11.2,
including (without limitation) loss and damage due to the failure of Tenant to
maintain and/or repair the Premises as required hereunder and/or due to the
inability of Landlord to relet the Premises on satisfactory terms or otherwise.

 

                                               
               
(4)           Landlord may
accelerate and sue for the entire balance of the unpaid rent for the remainder
of the Term, whereupon, Tenant shall immediately become liable for and pay on
demand to Landlord all Base Rent and other charges payable for the period that,
but for such termination, would have constituted the remainder of the Term in
addition to all past due Base Rent and other charges unpaid by Tenant.

 

                                               
               
(5)           Landlord may
exercise all rights and remedies that are available under the laws of the state
where the Property is located and applicable federal law.

 

In addition to any other remedy set forth in this
Lease, if Landlord has made rent concessions of any type or character, or
waived any Base Rent, and Tenant fails to take possession of the Premises on
the Commencement Date or otherwise defaults at any time during the term of this
Lease, the rent concessions, including any waived Base Rent, shall be
cancelled, and the amount of the waived Base Rent or other rent concessions
shall be due and payable immediately as if no rent concessions or waiver of any
Base Rent had ever been granted.  A rent concession or waiver of the Base
Rent shall not relieve Tenant of any obligation to pay any other charge due and
payable under this Lease, including, without limitation, any sum due under
Section 2.4 of this Lease.  Notwithstanding anything contained in this Lease
to the contrary, this Lease may be terminated by Landlord only by written
notice of such termination to Tenant given in accordance with this Lease, and
no other act or omission of Landlord shall be construed as a termination of
this Lease.  If Tenant defaults under this Lease at anytime during the
Term, in addition to any other remedies to which Landlord is entitled, Tenant
shall reimburse Landlord, within five (5) days of demand, the unamortized
amount of the leasing commission paid to any broker in connection with this
Lease.

 

               
11.3        Remedies Cumulative.  All rights
and remedies of Landlord herein or existing at law or in equity are cumulative
and the exercise of one or more rights or remedies shall not be taken to
exclude or waive the right to the exercise of any other.

 

15

 

 

ARTICLE
12 – MISCELLANEOUS

 

               
12.1        Waiver.  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.  Pursuit of any one or more of the remedies set forth in
Article 11 above shall not preclude pursuit of any remedy hereunder or at law
constitute forfeiture or waiver of any rent or damages accruing to Landlord by
reason of the violation of any of the terms, provisions or covenants of this
Lease.  Failure by Landlord to enforce one or more of the remedies
provided hereunder or at law upon any event of default shall not be deemed or
construed to constitute a waiver of the default or of any other violation or
breach of any of the terms, provisions and covenants contained in this
Lease.  Landlord may collect and receive rent due from Tenant without
waiving or affecting any rights or remedies that Landlord may have at law or in
equity or by virtue of this Lease at the time of such payment. 
Institution of a forcible detainer action to re-enter the Premises shall not be
construed to be an election by Landlord to terminate this Lease.

 

               
12.2        Act of God.  Landlord
shall not be required to perform any covenant or obligation in this Lease, or
be liable in damages to Tenant, so long as the performance or non-performance
of the covenant or obligation is delayed, caused or prevented by an act of God,
force majeure or by Tenant.

 

               
12.3        Attorneys’ Fees.  If Tenant
defaults in the performance of any of the terms, covenants, agreements or
conditions contained in this Lease and Landlord places in the hands of any
attorney the enforcement of all or any part of this Lease, the collection of
any rent or other sums due or to become due, or recovery of the possession of
the Premises, Tenant agrees to pay Landlord’s costs and expenses incurred,
including reasonable attorneys’ fees, whether suit is actually filed or not.

 

               
12.4        Successors.  This Lease
shall be binding upon and inure to the benefit of Landlord and Tenant and their
respective heirs, personal representatives, successors and assigns, subject to
Article 9 above.

 

               
12.5        Notices.  Whenever
this Lease requires or permits any consent, approval, notice, request or demand
from one party to the other (collectively, “Notice”), such Notice must be in
writing and shall be effective on the date of actual receipt of such Notice by
the addressee or when the attempted initial delivery is refused or when it cannot
be made because of a change in address of which the sending party has not been
notified.  The following shall, without limitation, be prima facia
evidence of actual receipt of Notice by the addressee:  (a) if mailed, by
a United States certified mail return receipt, signed by the addressee or the
addressee’s agent or representative, (b) if by a nationally-recognized
overnight courier, by a receipt from the courier evidencing delivery, or (c) if
hand delivered, by a delivery receipt signed by the addressee or the
addressee’s agent or representative.  The parties’ respective addresses
for delivery of any Notice shall be as set forth on page 1 of this Lease, or to
such other address as any party may have designated by Notice to the
other.  Manager shall be a co-addressee with Landlord on all Notices sent
to Landlord by Tenant hereunder, and any Notice sent to Landlord and not also
to Manager in accordance with this Section shall be deemed ineffective.

 

               
12.6        Corporate Authority. 
If Tenant executes this Lease as a corporation or a partnership
(general or limited) or other entity, Tenant and each person executing this
Lease on behalf of Tenant hereby personally represents and warrants that: 
Tenant is a duly authorized and existing corporation or partnership (general or
limited) or other entity as provided herein; Tenant is qualified to do business
in the state in which the Premises are located, the corporation or partnership
(general or limited) or other entity as provided herein has full right and
authority to enter into this Lease; each person signing on behalf of the
corporation or partnership (general or limited) or other entity as provided
herein is authorized to do so; and the execution and delivery of the Lease by
Tenant will not result in any breach of, or constitute a default under any
mortgage, deed of trust, lease, loan, credit agreement, partnership agreement,
or other contract or instrument to which Tenant is a party or by which Tenant
may be bound.  If any representation or warranty contained in this Section
is false, each person who executes this Lease shall be jointly and severally
liable, individually, as Tenant hereunder.

 

 

16

 

 

               
12.7       
Multiple Tenants.  If
this Lease is executed by more than one person or entity as “Tenant”, each such
person or entity shall be jointly and severally liable hereunder.  It is
expressly understood that any one of the named Tenants shall be empowered to
execute any modification, amendment, exhibit, floor plan, or other document
herein referred to and bind all of the named Tenants thereto; and Landlord
shall be entitled to rely on same to the extent as if all of the named Tenants
had executed same.

 

               
12.8       
Broker Indemnification.  As part of the consideration
for the granting of this Lease, Tenant represents and warrants to the Landlord
that no broker or agent engaged or contacted by Tenant either negotiated or was
instrumental in negotiating or consummating this Lease other than the
Authorized Broker, and Tenant agrees to indemnify Landlord against any loss,
expense (including reasonable attorneys’ fees and costs), cost or liability
incurred by Landlord as a result of a claim by any broker or finder other than
the Authorized Broker.

 

               
12.9       
Interpretation.  The captions appearing in this Lease
are for convenience only and in no way define, limit, construe or describe the
scope of intent of any Section.  Grammatical changes required to make the
provisions of this Lease apply (a) in the plural sense where there is more than
one tenant, and (b) to either corporations, associations, partnerships or
individuals, males or females, shall in all instances be assumed as though in
each case fully expressed.  The laws of the state where the property is
located shall govern the validity, performance and enforcement of this
Lease.  This Lease shall not be construed more or less favorably with
respect to either party as a consequence of the Lease or various provisions
hereof having been drafted by one of the parties hereto.

 

               
12.10      Rent
Tax.  Tenant shall pay and be liable for all rental, sales
and use taxes or other similar taxes, if any, levied or imposed by any city,
state, county or other governmental body having authority, such payments to be
in addition to all other payments required to be paid to Landlord by Tenant
under the terms of this Lease.  Any such payment shall be paid
concurrently with the payment of the rent, additional rent, or other charge
upon which the tax is based as set forth above.

 

               
12.11      Submission
of Lease.  Submission of this Lease to Tenant for signature
does not constitute a reservation of space or an option to lease.  This
Lease is not effective until execution by and delivery to both Landlord and
Tenant.

 

               
12.12      Severability. 
If any provision of this Lease or the application thereof to any person or
circumstances shall be invalid or unenforceable to any extent, the remainder of
this Lease and the application of such provisions to other persons or
circumstances shall not be affected thereby and shall be enforced to the
greatest extent permitted by law.  Each covenant and agreement contained
in this Lease shall be construed to be a separate and independent covenant and
agreement, and the breach of any such covenant or agreement by Landlord shall
not discharge or relieve Tenant from Tenant’s obligation to perform each and
every covenant and agreement of this Lease to be performed by Tenant.

 

               
12.13      Landlord’s Liability.  The
liability of Landlord for any breach or default by Landlord under the terms of
this Lease, or otherwise for whatever reason regarding this Lease or the
Property, whether such liability is in contract, tort or otherwise, shall, in
each instance, be limited to the interest of Landlord in the Property, and
Tenant agrees to look solely to Landlord’s interest in the Property as the same
may then be encumbered, for the recovery of any judgment against Landlord, it
being intended and agreed that neither Landlord nor, in any event, any person
or entity comprising, owning or affiliated with Landlord, or any of the
partners, shareholders, directors, officers, employees and representatives of
Landlord or any such person or entity, shall ever be personally liable for any
judgment or deficiency.

 

               
12.14      Sale of Property.   Upon
any conveyance, sale or exchange of the Premises or assignment of this Lease,
Landlord shall be and is hereby entirely free and relieved of all liability
under any and all of its covenants and obligations contained in or derived from
this Lease arising out of any act, occurrence, or omission relating to the
Premises or this Lease occurring after the consummation of such sale or
exchange and assignment.

 

 

17

 

               
12.15      Time is of the Essence.  The timely
performance of all of the covenants, conditions and agreements of this Lease is
of the essence.

 

               
12.16      Security.  Tenant acknowledges
that Landlord has or may have guards or other security personnel or security
systems.  Such guards, security personnel and security systems are for
Landlord’s sole benefit.  Landlord has no obligation to continue providing
same and Landlord may make such changes in the provision thereof from time to
time, as Landlord may desire.  Tenant acknowledges that Tenant has no
right to the benefit of such security personnel, guards or security systems,
and Tenant waives all claims against Landlord, its agents and/or employees based
on or related to any failure to furnish security services, failure to furnish
protection from crime or related matters.  Landlord will not unreasonably
subject Tenant, it’s agents, employees, or invitees to any additional security
restrictions to access Premises during times and dates not established as
normal business hours of the bank.

 

               
12.17      Exhibits. 
All exhibits to this Lease are attached hereto and incorporated herein by this
reference.

 

               
12.18      Waiver of Jury Trial.  The parties
waive trial by jury in any action or proceeding to which they may be parties
arising out of, in connection with, or in any way pertaining to this
Lease.  It is agreed and understood that this waiver constitutes a waiver
of trial by jury of all claims against all parties to such actions or
proceedings, including, claims against parties who are not parties to this
Lease.  This waiver is knowingly, willingly and voluntarily made by Tenant
and Tenant hereby represents that no representations of fact or opinion have
been made by any individual to induce this waiver of trial by jury or to in any
way modify or nullify its effect.  Tenant further represents that it has
been represented in the signing of this Lease and in the making of this waiver
by independent legal counsel, or has had the opportunity to be represented by
independent legal counsel selected of its own free will, and that it has had
the opportunity to discuss this waiver with counsel

 

               
12.19      Easements. 
Landlord reserves to itself, the right, from time to time, to grant such
easements, rights and dedications as Landlord deems necessary or desirable, and
to cause the recordation of site plans, restrictions and similar instruments so
long as such easements, rights and dedications do not unreasonably interfere
with the use of the Premises by Tenant.  Tenant shall sign any of the
aforementioned documents upon request of Landlord and failure to do so shall
constitute an event of default under this Lease.

 

               
12.20      Confidentiality Clause.  Tenant
represents and warrants to Landlord that Tenant shall keep the terms set forth
in this Lease in confidence (the “Information”) and specifically, Tenant shall
not discuss or disclose the Information with any other tenants or persons
located in the Building or the Property.  However, Tenant is not
prohibited from disclosing the Information (a) to its employees, auditors
and/or attorneys who need to know it and who are directed by Tenant to comply with
this confidentiality agreement, (b) to the extent that disclosure is required
by regulatory requirement or judicial or administrative process or other
requirement of law, (c) in connection with any action or proceeding to enforce
or interpret this Lease or any provision hereof, (d) to the extent that the
Information is in the public domain through no fault of or cause by Tenant, or
(e) to the extent otherwise expressly permitted by this Lease or consented to
by Landlord in writing.

 

               
12.21      Nondiscrimination  Tenant herein covenants by and for
itself, its heirs, executors, administrators, personal representatives,
successors and assigns, and all persons claiming under or through it, and this
Lease is made and accepted upon and subject to the condition that there shall
be no discrimination against or segregation of any person or group of persons
on account of race, color, creed, sex, national origin, or ancestry in the
leasing, subletting, transferring, use, occupancy, tenure, or enjoyment of the
Premises.  Neither Tenant nor any person claiming under or through Tenant
shall establish or permit any such practice or practices of discrimination or
segregation with reference to the selection, location, number, use, or
occupancy of tenants, lessees, subtenants, sublessees, or vendees in or on the
Premises.

 

               
12.22      No Light, Air Or View Easement.  Any diminution or shutting off of
light, air or view by any structure which may be erected on lands adjacent to
the Project shall in no way affect this Lease or impose any liability on
Landlord.

 

18

 

 

               
12.23      Financial Statements.  At any time during the term of
this Lease, Tenant shall upon ten (10) days’ prior written notice from
Landlord, provide Landlord with a current financial statement and financial
statements of the two (2) years prior to the current financial statement
year.  Such statement shall be prepared in accordance with generally
accepted accounting principles and if Tenant is in default at the time of such
request from Landlord, shall be audited by an independent certified public
accountant.

 

ARTICLE 13 – AMENDMENT AND
LIMITATION OF WARRANTIES

 

               
13.1        Entire Agreement.  IT IS
EXPRESSLY AGREED BY TENANT, AS A MATERIAL CONSIDERATION FOR THE EXECUTION OF
THIS LEASE, THAT THIS LEASE, WITH THE SPECIFIC REFERENCES TO EXTINSIC
DOCUMENTS, IS THE ENTIRE AGREEMENT OF THE PARTIES; THAT THERE ARE, AND WERE, NO
VERBAL REPRESENTATIONS, WARRANTIES, UNDERSTANDINGS, STIPULATIONS, AGREEMENTS OR
PROMISES PERTAINING TO THE SUBJECT MATTER OF THIS LEASE OR OF ANY EXPRESSLY
MENTIONED EXTINSIC DOCUMENTS THAT ARE NOT INCORPORATED IN WRITING IN THIS
LEASE.  ALL EXHIBITS TO THIS LEASE ARE ATTACHED HERETO AND INCORPORATED
HEREIN BY THIS REFERENCE.

 

13.2        Amendment.  THIS LEASE
MAY NOT BE ALTERED, WAIVED, AMENDED OR EXTENDED EXCEPT BY AN INSTRUMENT IN
WRITING SIGNED BY LANDLORD AND TENANT.

 

               
13.3        Limitation of Warranties.  LANDLORD AND
TENANT EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO IMPLIED WARRANTIES OF
MERCHANTABILITY, HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OF ANY OTHER
KIND ARISING OUT OF THIS LEASE, AND THERE ARE NO WARRANTIES WHICH EXTEND BEYOND
THOSE EXPRESSLY SET FORTH IN THIS LEASE.  WITHOUT LIMITING THE GENERALITY
OF THE FOREGOING, TENANT EXPRESSLY ACKNOWLEDGES THAT LANDLORD HAS MADE NO
WARRANTIES OR REPRESENTATIONS CONCERING ANY HAZARDOUS MATERIALS OR OTHER
ENVIRONMENTAL MATTERS AFFECTING ANY PART OF THE PROPERTY, AND LANDLORD HEREBY
EXPRESSLY DISCLAIMS AND TENANT WAIVES ANY EXPRESS OR IMPLIED WARRANTIES WITH
RESPECT TO ANY SUCH MATTERS.

 

               
13.4        Waiver and Releases.  TENANT SHALL
NOT HAVE THE RIGHT TO WITHHOLD OR TO OFFSET RENT OR TO TERMINATE THIS LEASE
EXCEPT AS EXPRESSLY PROVIDED HEREIN.  TENANT WAIVES AND RELEASES ANY AND
ALL STATUTORY LIENS AND OFFSET RIGHTS.

 

 

19

 

This Lease is executed by
Landlord and Tenant on the respective dates set forth below (the date of
signature of the last to sign of the parties hereto is the date of execution of
this Lease), but for purposes of identification and reference, the date of this
Lease shall be deemed to be the date first set forth on page 1 of this Lease.

 

 

	
  LANDLORD:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FIRST
  STATE INVESTORS 5200, LLC,

  	
   

  	
  EXECUTED
  ON: October    , 2004

  
	
  a
  national banking association

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   /s/ SONYA A.
  HUFFMAN

  	
   

  	
   

  
	
  Name:

  	
   Sonya A. Huffman

  	
   

  	
   

  
	
  Title:

  	
   Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  TENANT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HEARTLAND
  PAYMENT SYSTEMS, INC.

  	
   

  	
  EXECUTED
  ON: September 9, 2004

  
	
  a
  Delaware corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   /s/ MARTIN J.
  UHLE

  	
   

  	
   

  
	
  Name:

  	
   Martin J. Uhle

  	
   

  	
   

  
	
  Title:

  	
   President/Chief
  Operating Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

20

 

EXHIBIT A

 

Rent Schedule

 

 

	
  Rent/SF

  	
   

  	
  Beginning

  	
   

  	
  Ending

  	
   

  	
  Monthly

  	
   

  	
  Annual

  	
   

  
	
  $

  	
  —

  	
   

  	
  2/1/05

  	
   

  	
  9/30/05

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
  $

  	
  31.00

  	
   

  	
  10/1/05

  	
   

  	
  9/30/06

  	
   

  	
  $

  	
  24,043.08

  	
   

  	
  $

  	
  288,517.00

  	
   

  
	
  $

  	
  31.93

  	
   

  	
  10/1/06

  	
   

  	
  9/30/07

  	
   

  	
  $

  	
  24,764.38

  	
   

  	
  $

  	
  297,172.51

  	
   

  
	
  $

  	
  32.89

  	
   

  	
  10/1/07

  	
   

  	
  9/30/08

  	
   

  	
  $

  	
  25,507.31

  	
   

  	
  $

  	
  306,087.68

  	
   

  
	
  $

  	
  33.87

  	
   

  	
  10/1/08

  	
   

  	
  9/30/09

  	
   

  	
  $

  	
  26,272.52

  	
   

  	
  $

  	
  315,270.30

  	
   

  
	
  $

  	
  34.89

  	
   

  	
  10/1/09

  	
   

  	
  9/30/10

  	
   

  	
  $

  	
  27,060.70

  	
   

  	
  $

  	
  324,728.39

  	
   

  
	
  $

  	
  35.94

  	
   

  	
  10/1/10

  	
   

  	
  9/30/11

  	
   

  	
  $

  	
  27,872.52

  	
   

  	
  $

  	
  334,470.23

  	
   

  
	
  $

  	
  37.02

  	
   

  	
  10/1/11

  	
   

  	
  9/30/12

  	
   

  	
  $

  	
  28,708.69

  	
   

  	
  $

  	
  344,504.32

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  TOTAL

  	
   

  	
  $

  	
  2,210,750.42

  	
   

  

 

 

21

 

 

EXHIBIT B

 

 

[Metes and bounds or lot and block

description of underlying property]

 

 

ALL THAT CERTAIN TRACT, PARCEL AND LOT OF LAND LYING
AND BEING SITUATE IN THE BOROUGH OF PRINCETON, COUNTY OF MERCER, STATE OF NEW
JERSEY, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

BEGINNING AT A POINT SAID POINT BEING THE INTERSECTION
OF THE WESTERLY LINE OF WITHERSPOON STREET AND THE NORTHERLY LINE OF NASSAU
STREET AND RUNNING, THENCE;

 

1)   ALONG THE LAST MENTIONED LINE
SOUTH SEVENTY-SIX DEGREES ELEVEN MINUTES WEST (S 76° 11’ W) FORTY-NINE AND
FIFTY-TWO HUNDREDTHS (49.52) FEET TO A POINT, THENCE;

 

2)   ALONG LANDS NOW OR FORMERLY OF
CHARLES FISHER THE FOLLOWING THREE (3) COURSES NORTH TWELVE DEGREES TWO MINUTES
FORTY SECONDS WEST (N 12° 02’ 40” W) SIXTY-THREE AND TWENTY-SEVEN
HUNDREDTHS (63.27) FEET TO A POINT, THENCE;

 

3)   NORTH NINE DEGREES FIFTY-SEVEN
MINUTES THIRTY SECONDS WEST (N 9° 57’ 30” W) FORTY-ONE AND THREE HUNDREDTHS
(41.03) FEET TO A POINT, THENCE;

 

4)   NORTH NINE DEGREES FORTY-ONE
MINUTES WEST (N 9° 41’ W) TWENTY-NINE AND TEN HUNDREDTHS
(29.10) FEET TO A POINT, THENCE;

 

5)   ALONG LANDS NOW OR FORMERLY OF THE
BOROUGH CORPORATION NORTH SEVENTY-EIGHT DEGREES FIFTY-ONE MINUTES TWENTY
SECONDS EAST (N 78° 51’ 20” E) FORTY-SEVEN AND THIRTY-FIVE
HUNDREDTHS (47.35) FEET TO A POINT IN THE AFORESAID LINE OF WITHERSPOON STREET,
THENCE;

 

6)   ALONG THE LAST MENTIONED LINE THE
FOLLOWING THREE (3) COURSES SOUTH ELEVEN DEGREES FORTY-NINE MINUTES THIRTY
SECONDS EAST (S 11° 49’ 30” E) TWENTY-EIGHT AND THIRTY-TWO
HUNDREDTHS (28.32) FEET FOR A POINT, THENCE;

 

7)   SOUTH TWELVE DEGREES SIX MINUTES
THIRTY SECONDS EAST (S 12° 06’ 30” E) TWENTY-SEVEN AND
NINETY-NINE HUNDREDTHS (27.99) FEET TO A POINT, THENCE;

 

8)   SOUTH ELEVEN DEGREES FORTY-TWO
MINUTES EAST (S 11° 42” E) SEVENTY-FOUR AND SEVENTY-FIVE
HUNDREDTHS (74.75) FEET TO THE POINT AND PLACE OF BEGINNING.

 

BEING ALSO KNOWN AS (REPORTED INFORMATIONAL PURPOSES
ONLY):

 

LOT 38, BLOCK 20.01, ON THE OFFICIAL TAX MAP OF THE
BOROUGH OF PRINCETON, MERCER COUNTY, NEW JERSEY.

 

 

22

 

 

 

EXHIBIT C

 

 

[Location of Premises]

 

 

23

 

EXHIBIT D

 

COMMENCEMENT DATE AGREEMENT

 

 

               
This Memorandum is executed in connection with the Lease for space located at
90 Nassau Street, Princeton, NJ, dated the                        
day of                                            ,
2004, between Bank of America, N.A., as Landlord, and Heartland Payment
Systems, Inc., as Tenant.

 

Tenant acknowledges and agrees
that:

 

               
1.             The
Premises (as defined in the Lease) are tenantable and accepted by Tenant as
suitable for the purpose for which they were let.

 

               
2.             All
construction of improvements at the Premises is completed, has been inspected
by Tenant, and is acceptable.

 

               
3.             The
Commencement Date of the Lease is agreed to be the 1st day of
February, 2005.

 

               
4.             The
expiration date of the Lease is agreed to be the 30th day of
September, 2012.

 

5.                                      
All
other terms and conditions of the Lease are ratified and acknowledged to be
unchanged.

 

               
6.            
Landlord will remove all furniture and carpeting from Premises at its expense
within two weeks of the execution of the Lease Agreement.

 

               
Executed and delivered this                         
day of                                     ,
2004.

 

 

	
   

  	
   

  	
   

  
	
  TENANT:

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HEARTLAND
  PAYMENT SYSTEMS, INC.

  	
   

  	
  BANK
  OF AMERICA, N.A.

  
	
  a
  Delaware corporation

  	
   

  	
  a
  national banking association

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Name

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

24

 

EXHIBIT E

 

 

RULES AND REGULATIONS

 

 

               
1.            
Landlord agrees to furnish Tenant two keys without charge.  Additional
keys will be furnished at a nominal charge.  Tenant shall not change locks
or install additional locks on doors without prior written consent of
Landlord.  Tenant shall not make or cause to be made duplicates of keys procured
from Landlord without prior written approval of Landlord.  All keys to the
Premises shall be surrendered to Landlord upon termination of this Lease.

 

               
2.            
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 before performance of any contractual
service.  Tenant’s contractors and installation technicians shall comply
with Landlord’s rules and regulations pertaining to construction and
installation.  This provision shall apply to all work performed on or
about the Premises, including installation of telephones, telegraph equipment,
electrical devices and attachments and installations of any nature affecting
floors, walls, woodwork, trim, windows, ceilings and equipment or any other
physical portion of the Premises or the Property.

 

               
3.            
Tenant shall not at any time occupy any part of the Premises as sleeping or
lodging quarters.

 

               
4.            
Tenant shall not place, install or operate on the Premises or in any part of
the Property any engine, stove or machinery, or conduct mechanical operations
or cook thereon or therein, or place or use in or about the Premises or the Property
any explosives, gasoline, kerosene, oil, acids, caustics, heating source, or
any flammable, explosive or hazardous material without written consent of
Landlord.  Tenant shall be permitted to maintain a kitchen facility for
its employees utilizing a refrigerator, an electric coffee maker and microwave
oven.

 

               
5.            
Landlord will not be responsible for lost or stolen merchandise, trade
fixtures, furniture, furnishings, personal property, equipment, money or
jewelry from the Premises or the Property regardless of whether such loss
occurs when the area is locked against entry or not.

 

               
6.             No
dogs, cats, fowl, or other animals shall be brought into or kept in or about
the Premises or Property, except those utilized by handicapped individuals.

 

               
7.            
Employees of Landlord shall not receive or carry messages for or to any Tenant
or other person or contract with or render free or paid services to any Tenant
or to any of Tenant’s agents, employees or invitees.

 

               
8.             None
of the parking, plaza, recreation or lawn areas, entries, passages, doors,
elevators, hallways or stairways shall be blocked or obstructed or any rubbish,
litter, trash, or material of any nature placed, emptied or thrown into these
areas or such area used by Tenant’s agents, employees or invitees at any time
for purposes inconsistent with their designation by Landlord.

 

               
9.             The
water closets and other water fixtures shall not be used for any purpose other
than those for which they were constructed, and any damage resulting to them
from misuse or by the defacing or injury of any part of the Property shall be
borne by the person who shall occasion it.  No person shall waste water by
interfering with the faucets or otherwise.

 

               
10.           No person shall
disturb occupants of the Property by the use of any radios, record players,
tape recorders, musical instruments, the making of unseemly noises or any
unreasonable use.

 

               
11.           Nothing shall
be thrown out of the windows of the Property or down the stairways or other
passages.

 

 

 

1

 

 

               
12.           (a) 
Tenant and its employees, agents and invitees shall park their vehicles only in
those parking areas designated by Landlord.  Tenant shall furnish Landlord
with state automobile license numbers of Tenant’s vehicles and its employees’
vehicles within five (5) days after taking possession of the Premises and shall
notify Landlord of any changes within five (5) days after such change
occurs.  Tenant shall not leave any vehicle in a state of disrepair
(including without limitation, flat tires, out of date inspection stickers or
license plates) on the Property.  If Tenant or its employees, agents or
invitees park their vehicles in areas other than the designated parking areas
or leave any vehicle in a state of disrepair, Landlord, after giving written
notice to Tenant of such violation, shall have the right to remove such
vehicles at Tenant’s expense.

 

                               
(b)  Parking in a parking garage or parking area shall be in compliance
with all parking rules and regulations established from time to time by
Landlord.  Landlord reserves the right to charge for use of parking areas,
to establish reserved parking areas and to assign designated parking spaces
therein for exclusive use by Landlord or other specified tenants, to establish
any sticker or other identification system, to alter, reduce or modify any
parking areas, and to take any other actions regarding the parking garage or
parking area.  Failure to observe the rules and regulations shall
terminate Tenant’s right to use the parking garage or parking area and subject
the vehicle in violation of the parking rules and regulations to removal and
impoundment.  No termination of parking privileges or removal of
impoundment of a vehicle shall create any liability on Landlord or be deemed to
interfere with Tenant’s right to possession of its Premises.  Vehicles
must be parked entirely within the stall lines and all directional signs,
arrows and posted speed limits must be observed.  Parking is prohibited in
areas not striped for parking, in aisles, where “No Parking” signs are posted,
on ramps, in cross-hatched areas, and in other areas as may be designated by
Landlord.  Parking stickers or other forms of identification supplied by
Landlord shall remain the property of Landlord and not the property of Tenant
and are not transferable.  Every person is required to park and lock his
vehicle.  All responsibility for damage to vehicles or persons is assumed
by the owner of the vehicle or its driver.

 

                               
(c)  If there is an exhibit to this Lease regarding parking, then the
parking provisions set forth in such parking exhibit shall govern any contrary
provisions set forth in these Rules and Regulations, but only to the extent of
the conflict.

 

               
13.           Movement in or
out of the Property of furniture or office supplies and equipment, or dispatch
or receipt by Tenant of any merchandise or materials which require use of
elevators or stairways, or movement through the Property entrances or lobby,
shall be restricted to hours designated by Landlord.  All such movement
shall be carried out in the manner agreed between Tenant and Landlord by
prearrangement before performance.  Such prearrangement will include
determination by Landlord of time, method, and routing of movement and
limitations imposed by safety or other concerns which may prohibit any article,
equipment or any other item from being brought into the Property.  Tenant
assumes, and shall indemnify Landlord against, all risks and claims of damage
to persons and properties arising in connection with any said movement.

 

               
14.           Landlord shall
not be liable for any damages from the stoppage of elevators for necessary or
desirable repairs or improvements or delays of any sort or duration in
connection with the elevator service.

 

               
15.           Tenant shall
not lay floor covering within the Premises without written approval of Landlord

 

               
16.           Tenant agrees
to cooperate and assist Landlord in the prevention of canvassing, soliciting
and peddling within the Property.

 

               
17.           During all
hours other than regular hours, Landlord reserves the right to exclude from the
Property, all persons who are not known to the Property security personnel and
who do not present a pass to the Property signed by the Tenant.  Each
Tenant shall be responsible for all persons for whom Tenant supplies a pass.

 

               
18.           If any
governmental license or permit shall be required for the proper and lawful
conduct of Tenant’s business, Tenant, before occupying the Premises, shall
procure and maintain such license or permit and submit it for Landlord’s
inspection.  Tenant shall at all times comply with the terms of any such
license or permit.

 

 

2

 

 

               
19.           Except with the
prior written consent of Landlord, Tenant shall not sell, or permit the sale
from the Premises of, or use or permit the use of any sidewalk or mall area
adjacent to the Premises for the sale of newspapers, magazines, periodicals,
theatre tickets or any other goods or merchandise, nor shall Tenant carry on,
or permit or allow any employee or other person to carry on, business in or
from the Premises for the service or accommodation of occupants of any other
portion of the Building, nor shall the Premises be used for manufacturing of
any kind, or for any business or activity other than that specifically provided
for in the Lease.

 

               
20.           Tenant shall
not install any radio or television antenna, satellite dish, loudspeaker or
other device on the roof or exterior walls of the Building or elsewhere on the
Property.

 

               
21.           Tenant shall
not use in any space, or in the Common Areas of the Building, any handtrucks
except those equipped with rubber tires and side guards or such other material
handling equipment as Landlord may approve.  No other vehicles of any kind
shall be brought by Tenant into the Building or kept in or about the Premises
without prior written approval of Landlord.

 

               
22.           Tenant shall
store all its trash and garbage within the Premises until daily removal of same
by Tenant to such location in the Building as may be designated from time to
time by Landlord.  No material shall be placed in the Building trash boxes
or receptacles if such material is of such 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 in which the Premises is located without being in violation
of any law or ordinance governing such disposal.

 

               
23.           Tenant shall
not permit the use or the operation of any coin operated machines on the
Premises, including, without limitation, vending machines, video games, pinball
machines, or pay telephones without the prior written consent of Landlord.

 

               
24.           As used in the
Lease, “business days” means Monday through Saturday (except holidays);
“regular hours” means 8:00 a.m. to 6:00 p.m. on weekdays and 8:00 a.m. to 1:00
p.m. on Saturday; and “holidays” means New Year’s Day, Memorial Day, Fourth of
July, Labor Day, Thanksgiving and Christmas, together with such other holidays
designated by Landlord consistent with those holidays designated by national
banks located in the county in which the Building is located.

 

               
25.           Landlord
desires to maintain in the Property the highest standard of dignity and good
taste consistent with comfort and convenience for tenants.  Any action or
condition not meeting this high standard should be reported directly to
Landlord.  Tenant’s cooperation will be mutually beneficial and sincerely
appreciated.  Landlord reserves the right to make such other and further
reasonable rules and regulations (or amend any of the foregoing rules or
regulations) as in its judgment may from time to time be necessary, for the
safety, care and cleanliness of the Premises and for the preservation of good
order therein.

 

               
26.           Tenant shall
comply, at its sole expense, with applicable laws, rules, regulations and
standards relating to protection of human health or safety or the environment,
including, without limitation, the federal Comprehensive Environmental
Response, Compensation and Liability Act, the Federal Resource Conservation and
Recovery Act.

 

               
27.           Smoking is
prohibited in the Premises, the Building, and the Common Areas.  Tenant
shall not permit its employees, customers, licensees, contractors, agents, or
invitees to smoke in the Premises, the Building, or the Common Areas.

 

28.          
Tenant is responsible for accounting for the whereabouts of its employees after
an evacuation of the Premises and/or Building.  Tenant shall maintain an
updated list of its employees and shall appoint a contact person, who shall
promptly let the Building manager and emergency personnel know, which, if any,
of its employees are unaccounted for after an evacuation.

 

3

 

 

Right
of First Offer (Lease) Rider

 

               
The following provisions are hereby added to the terms of the Lease.  In
the event of a conflict between the terms of this Rider and the terms of the
Lease, the terms of this Rider shall control. Unless otherwise defined in this
Rider, each capitalized term used in this Rider shall have the meaning assigned
to it in the Lease.  As hereinafter used in this Rider, the term “this
Lease” shall mean the Lease, as modified by this Rider.

 

1.            
Grant of Right.  Landlord hereby grants to Tenant a right of first
offer to lease the premises on the fourth floor of the Building (“Additional
Premises”). If Tenant exercises Tenant’s right of first offer for the
Additional Premises in accordance with Section 2 below, the Additional Premises
shall be added to the Premises and Rent and Tenant’s Proportionate Share shall
be increased by the total rentable square footage of the Additional Premises.

 

2.            
Exercise of Right of First Offer.  If during the Term of this
Lease, Landlord desires to lease the Additional Premises to a third party
tenant that is not an affiliate of Landlord, Landlord shall so notify Tenant in
writing (“Notice”).  If Tenant desires to lease the Additional Premises,
Tenant shall so notify Landlord in writing within ten (10) days following
Tenant’s receipt of the Notice.  In such event, without further action of
Landlord or Tenant, Landlord shall be deemed to have agreed to lease the
Additional Premises to Tenant, and Tenant shall be deemed to have agreed to
lease the Additional Premises from Landlord, for the Rent and upon the terms
and conditions set forth in the Lease.  If Tenant does not so agree to
lease the Additional Premises within said ten day period, at any time
thereafter Landlord shall be free to lease the Additional Premises free and
clear of Tenant’s rights under this Rider, provided that if Landlord shall not
lease the Additional Premises within one year following the date of the Notice
without, in such case, sending a new Notice to Tenant, in which event Tenant
shall have a further period of ten days following Tenant’s receipt of the new
Notice to lease the Additional Premises.

 

4

 

 

Leasehold
Improvements Rider

 

The following provisions
are hereby added to the terms of the Lease.  In the event of a conflict
between the terms of this Rider and the terms of the Lease, the terms of this
Rider shall control. Unless otherwise defined in this Rider, each capitalized
term used in this Rider shall have the meaning assigned to it in the
Lease.  As hereinafter used in this Rider, the term “this Lease” shall
mean the Lease, as modified by this Rider.

 

               
1.             Representatives.  Landlord hereby appoints
______________ (“Landlord’s Representative”) to act as Landlord’s
Representative in all matters covered by this Rider.  The address of
Landlord’s Representative is 123 S. Broad Street, Philadelphia, Pennsylvania
19106.  Tenant hereby appoints ____________________________ (“Tenant’s
Representative”) to act as Tenant’s Representative in all matters covered by
this Rider.  The address of Tenant’s Representative is
_______________________________________________________________________. 
All inquiries, requests, instructions, authorizations and other communications
with respect to the matters covered by this Rider will be made to Landlord’s
Representative or Tenant’s Representative, as the case may be.  Either
party may change its Representative under this Rider at any time by giving ten
(10) days’ written notice to the other party.

 

               
2.             Base
Building. 
Landlord is providing the shell of and certain improvements in the Leased
Premises, free of any existing furniture or carpeting which have been inspected
and accepted by Tenant “as is.”

 

               
3.             Tenant’s
Plans. 
Tenant shall employ an architect approved by Landlord and duly licensed to
practice in the State where the Leased Premises are located (“Tenant’s
Architect”), who shall prepare and submit to the Landlord plans, specifications
and drawings describing Tenant’s desired improvements to the Leased Premises in
accordance with this Section 3.  Tenant and Tenant’s Architect shall be
solely responsible for compliance by the leasehold improvements with all
applicable legal requirements, including without limitation building and fire
codes.  Any and all consultants’ fees incurred by Landlord in connection
with the review and approval of the plans, specifications and drawings of
Tenant’s Work and in connection with the inspection and approval of Tenant’s
improvements shall be paid by Tenant upon demand.

 

                                               
               
(a)           Tenant’s
Architect shall (at the cost and expense of Tenant) prepare and submit to
Landlord for Landlord’s approval a layout of the Leased Premises (the
“Preliminary Space Plan”).  If Landlord objects to the Preliminary Space
Plan (or any revision thereof), Tenant shall deliver a revised Preliminary
Space Plan to Landlord and the procedure will be repeated, if necessary, until
a final space plan is approved.  The final approved space plan is hereinafter
referred to as the “Final Space Plan”.

 

                                               
               
(b)           From the Final
Space Plan, Tenant’s Architect shall (at the cost and expense of Tenant)
prepare and submit to Landlord for Landlord’s approval all one-eighth inch
(1/8”) architectural, mechanical and electrical working drawings together with
specifications necessary to complete all of the leasehold improvements
(collectively, the “Preliminary Drawings”).  If Landlord objects to the
Preliminary Drawings (or any revision thereof), Tenant shall deliver revised
Preliminary Drawings to Landlord and the procedure will be repeated, if
necessary, until final drawings are approved.  The final approved drawings
are hereinafter referred to as the “Final Drawings”.

 

5

 

 

                                               
               
(c)           In connection
with the approval of the Final Drawings, Landlord shall prepare and the parties
shall initial a final budget for the work contemplated by the Final Drawings
(the “Budget”).  After the Budget has been initialed by both parties, the
Budget shall be attached to this Rider and form a part hereof.  The Budget
shall be on a form designated by Landlord and shall list the major cost items
involved in such work and the cost allocated to each such item, with a total
cost indicated for all items.  However, if the Budget is not so initialed
or so attached, that shall not impair or release Tenant from any of Tenant’s
obligations herein or otherwise adversely affect Landlord’s rights herein.

 

               
4.             Construction.  Tenant will cause
the leasehold improvements to be constructed, at its cost and expense, in a
good and workmanlike manner, in substantial accordance with the Final Drawings
(“Tenant’s Work”), and in accordance with all applicable legal
requirements.  Tenant’s Work shall include, but not be limited to,
replacement of the windows in the Premises and all work necessary for the
separate metering of the electricity servicing the Premises.

 

                                               
               
(a)           Permits.  In connection with
Tenant’s Work, Tenant shall file all drawings, plans and specifications, pay
all fees and obtain all permits and applications from any authorities having
jurisdiction; and Tenant shall promptly obtain a permanent certificate of
occupancy and all other approvals required of Tenant to use and occupy the
Leased Premises and to open for business with the public.  In the event that
Tenant is unable to obtain the necessary permits for Tenant’s Work by November
31, 2004, Tenant may terminate this Lease upon fifteen (15) days prior written
notice, at which time Landlord shall return the Deposit and the parties shall
have no further obligations one to the other.

 

                                               
               
(b)           Approval.  Prior to the
commencement of Tenant’s Work, Tenant shall submit to Landlord for Landlord’s
approval a list of contractors and/or subcontractors who will perform Tenant’s
Work.  Tenant or Tenant’s contractors or subcontractors shall be required
to obtain from Landlord permission for transporting materials on service
elevators and/or using any area outside the Leased Premises for storage, handling
or moving materials and equipment or for parking any vehicles.  In
addition, Tenant and its contractors and subcontractors shall comply with
Landlord’s building guidelines applicable to construction of Tenant’s
Work.  If any of Tenant’s Work relates to areas or conditions over which
Landlord requires sole control, then Landlord shall have the right at
Landlord’s discretion to perform (or have Landlord’s contractor perform) such
portion of Tenant’s Work at Tenant’s expense.

 

                                               
               
(c)           Insurance.  Tenant and/or Tenant’s
contractors and subcontractors shall be required to provide, in addition to the
insurance required to be maintained by Tenant pursuant to the Lease, the
following types of insurance and the following minimum amounts, naming Landlord
and any other persons having an interest in the building as “additional
insureds” or “as their interests may appear”, issued by companies and in form
and substance approved by Landlord:

 

                                                                                               
               
(i)            Workman’s
Compensation coverage with limits of at least $500,000.00 for the employer’s
liability coverage thereunder.

 

                                                                                               
               
(ii)           All Risk
Builders Risk on 100% Completed Value, covering damage to the construction and
improvements to be made by Tenant with 100% coinsurance protection.

 

                                                                                               
               
(iii)          Automobile
Liability coverage with bodily injury limits of at least $1,000,000.00 per
accident and $500,000.00 accident for property damage.

 

6

 

 

                                                                                               
               
(iv)          Other insurance
reasonably required by Landlord.

 

                                                                                               
Original or duplicate
policies for all of the foregoing insurance shall be delivered to Landlord
before Tenant’s Work is started and before any contractor’s or subcontractor’s
equipment is moved on to any part of the Leased Premises.  In addition,
Tenant’s contractor shall obtain payment and performance bonds in form and
substance satisfactory to Landlord in face amounts of 110% of the value of work
to be accomplished.  All bonds shall be dual or multiple obligee bonds
inuring to the benefit of Landlord, Tenant, and other persons as Landlord shall
require.

 

                                               
               
(d)           Liability during Construction. 
Tenant hereby assumes any and all liability arising out of or relating to
Tenant’s Work or to the Leased Premises after the date hereof, including any
liability arising out of statutory or common law for any and all injuries to or
death of any and all persons (including, without limitation, Tenant’s
contractors and subcontractors and their employees) and any liability for any
and all damage to property caused by, or resulting from, or arising out of any
act or omission on the part of the Tenant, Tenant’s contractors and Tenant’s or
their subcontractors or employees in the performance of Tenant’s Work, and
Tenant further agrees to defend, indemnify and save harmless Landlord from and
against all damages, claims, costs, liabilities, losses and/or expenses
(including legal fees and expenses) arising out of or related to Tenant’s Work,
including without limitation any and all such injuries, death and/or
damage.  Tenant agrees to insure the foregoing assumed contractual
liability in its liability policies and the original or duplicate original of
said policy that Tenant will deliver to Landlord shall expressly include said
contractual liability coverage.

 

                                               
               
(e)          
Removal during Construction.  Contractors and/or
subcontractors participating in the Tenant’s Work shall be required to keep the
Leased Premises and adjacent areas in a neat and clean condition and to remove
and dispose of, as frequently as Landlord may direct, all debris and rubbish
caused by, or resulting from the work and upon completion, to remove all
temporary structures, surplus materials, debris and rubbish of whatever kind
remaining on any part of the Leased Premises or in proximity thereto that was
brought in or created by the performance of Tenant’s Work.  If at any time
Tenant’s contractors and subcontractors shall neglect, refuse, or fail to
remove any debris, rubbish, or surplus materials within twenty-four (24) hours
after written notice to Tenant, Landlord may remove the same at Tenant’s
expense.

 

                                               
               
(f)           
Utilities during Construction.  Subject to the design
capacity of the Building, Landlord shall furnish, water, electricity, and
elevator service, to the Leased Premises for use by Tenant’s contractors in
connection with the performance of Tenant’s Work during normal business hours
at a cost to Tenant as determined by Landlord.  Heating, venting and air
conditioning to the Leased Premises during construction will be furnished by
Landlord upon written request from Tenant or Tenant’s general contractor and
will be charged to Tenant at a rate as determined by Landlord per floor during
those hours which Tenant or Tenant’s general contractor requests such service
be provided.  Landlord shall designate the method established for
scheduling elevators and advise Tenant of advance notice requirements to
schedule and secure elevators for use in Tenant’s Work.

 

                                               
               
(g)           Changes.  All changes to the Final
Drawings shall be subject to Landlord’s prior written approval.  If there
are any changes, the Budget shall be revised to take into account any changes
in the cost of performing Tenant’s Work, and the revised Budget shall be
initialed by the parties.  However, if the revised Budget is not so
initialed or so attached, that shall not impair or release Tenant from any of
Tenant’s obligations herein or otherwise adversely affect Landlord’s 

 

7

 

rights herein.  Tenant’s Work (including any changes)
shall be the property of Landlord and shall remain upon and be surrendered with
the Leased Premises upon the expiration of the Lease term.

 

                                               
               
(h)          
Affidavits.  Tenant shall cause to be filed and/or
recorded such affidavits as Landlord requests regarding Tenant’s Work,
including without limitation an affidavit of commencement of Tenant’s Work and
an affidavit of completion of Tenant’s Work on the dates required by law to
give proper effect thereto, or if requested by Landlord, on the dates specified
by Landlord.

 

               
5.             Completion Date.  Tenant’s Work
shall be completed by January 31, 2005 (“Completion Date”).  If, for any
reason, the Leased Premises are not ready for occupancy by Tenant on the
Commencement Date, Landlord shall not be liable for any claims or damages by
reason thereof and Tenant’s obligations to pay Base Rent and other charges
shall nevertheless commence.

 

               
6.            
Waiver of Certain Remedies.

 

                                               
               
(a)           Offsets.  No sum payable to Tenant
as the result of any breach or default by Landlord under this Rider shall be
deducted from or offset against any rent or other sums payable under the Lease,
unless Landlord (in Landlord’s discretion) consents thereto, and no such breach
or default by Landlord under this Rider shall:

 

                                                                                               
               
(i)            be the
subject of a defense or counterclaim in any action or proceeding brought by
Landlord to enforce its rights under the Lease; or

 

                                                                                               
               
(ii)           excuse Tenant
from the performance of any of its obligations under the Lease or relieve
Tenant of any of its liabilities thereunder.

 

                                               
               
(b)          
Consequential Damages.  Nothing contained in this Rider
shall render Landlord liable to Tenant for consequential damages arising out of
any breach or default under this Rider, including, without limitation, loss of
use or income from the building or the Leased Premises or any equipment or
facilities therein, whether by Tenant or any person claiming through or under
Tenant.

 

                                               
               
(c)           Liability.  If Landlord shall be
in default under this Rider or this Lease and, if as a consequence of such
default, Tenant shall recover a money judgment against Landlord, such judgment
shall be satisfied only out of the right, title, and interest of Landlord in
the Property as the same may then be encumbered and neither Landlord nor any
person or entity comprising Landlord shall be liable for any deficiency. 
In no event shall Tenant have the right to levy execution against any property
of Landlord nor any person or entity comprising Landlord other than its
interest in the Property as herein expressly provided.

 

               
7.             Assignment.  This Rider and
Tenant’s rights hereunder shall not be assigned by Tenant except to a permitted
assignee of all of Tenant’s rights under the Lease and any other purported
assignment by Tenant shall be null and void and of no force and effect. 
If Tenant shall properly assign Tenant’s rights hereunder, the assignee shall
execute, acknowledge and deliver to Landlord an agreement in form and substance
satisfactory to Landlord whereby the assignee shall assume the obligations of
this Rider on the part of Tenant to be performed or observed.

 

 

8

 

 

               
8.             Notices.  Any notice, or other
communication shall be in writing and shall be given in the manner required by
the notice provisions of the Lease, with a copy to Landlord’s Representative or
Tenant’s Representative (as applicable) at their address as set forth herein.

 

               
9.             Conflicts and Conformity with Lease. 
Any rights and obligations of Landlord and Tenant relative to any matter not
stated in this Rider shall be governed by the Lease.  If there shall be
any conflict between this Rider and the Lease, the provisions of this Rider
shall prevail.  As used herein, all capitalized terms not defined herein
shall have the same meaning as defined in the Lease.

 

               
10.          Allowance.

 

                                               
               
(a)           As stated
above, all Work shall be done at Tenant’s expense, including building permit
fees, other fees, architectural and engineering expenses and other expenses
relating to Tenant’s Work.  However, Landlord shall provide Tenant with an
allowance of $35.00 per rentable square foot in the Leased Premises, totaling
to $325,745.00 (the “Allowance”).  Tenant understands that if the cost of
Tenant’s Work, including without limitation any changes in Tenant’s Work,
exceeds the Allowance, then Tenant shall be solely responsible for all such costs
in excess of the Allowance.  The Allowance shall be paid to Tenant
following receipt of the following documentation (i) full and final waivers of
liens from the general contractor and the subcontractors retained by Tenant in
an amount equal to the portion of the Allowance to be disbursed, (ii)
completion certificates from Tenant, the general contractor and Tenant’s
architect, (c) a sworn contractor’s affidavit from the general contractor, and
(d) a request to disburse from Tenant containing an approval by Tenant of the
work done, receipted bills covering all labor and materials expended and used
in connection with the improvements.  If Tenant has not previously paid
the general contractor for the cost of the improvements, Landlord, at its
option, may pay the Allowance directly to the order of the general contractor
that performed the improvements or to the joint order of the general contractor
and all included subcontractors.  Notwithstanding anything herein to the
contrary, Landlord shall not be obligated to disburse any portion of the
Allowance during the continuance of an uncured default under this Lease, and
Landlord’s obligation to disburse shall only resume when and if such default is
cured.  The Allowance may only be used for the cost of labor, material and
contractor’s fees for the improvements to the Leased Premises, and the cost of
preparing plans and drawings in connection therewith.  In no event shall
the Allowance be used for the purchase of equipment, furniture and other items
of personal property of Tenant.  In the event Tenant has not presented
proper documentation evidencing the use of the entire Allowance by February 28,
2005, any unused amount shall accrue to the sole benefit of Landlord, it being
understood that Tenant shall not be entitled to any credit, abatement or other
concession in connection therewith.

 

                                               
               
(b)           If the actual
construction costs exceed the Allowance, then Tenant shall pay the excess and
Landlord shall not be responsible therefor.

 

                                               
               
(c)           If the actual
construction costs are less than the Allowance, then Tenant shall not be
entitled to any portion of the unexpended Allowance, which shall belong to
Landlord.

 

9

 

Renewal Option
Rider

 

The following provisions
are hereby added to the terms of the Lease.  In the event of a conflict
between the terms of this Rider and the terms of the Lease, the terms of this
Rider shall control. Unless otherwise defined in this Rider, each capitalized
term used in this Rider shall have the meaning assigned to it in the
Lease.  As hereinafter used in this Rider, the term “this Lease” shall
mean the Lease, as modified by this Rider.

 

1.                                      
Provided
the Lease is still in full force and effect and there is no uncured event of
default by Tenant under the Lease beyond any applicable cure period, Tenant
shall have the right and option to renew the Lease for one (1) additional five
(5) year terms (such terms being hereinafter called the “Renewal Term”), on the
following terms and conditions.

 

2.                                      
Tenant
shall exercise each right and option to renew the term of this Lease by giving
Landlord written notice thereof no later than one hundred eighty (180) days
prior to the expiration of the primary term or any preceding Renewal Term, as
applicable. If Landlord does not receive such notice by such deadline, Tenant
shall be deemed to have elected not to exercise such renewal option.

 

3.                                      
The
Base Rent (excluding Tenant’s share of increases in operating expenses) during
each Renewal Term shall be determined as set forth below.  The Base Rent
shall be adjusted on the first day of each Renewal Term (the “Rental Adjustment
Date”) to the “fair rental value” of the Premises, determined in the following
manner.  Not later than one hundred twenty (120) days prior to the Rental
Adjustment Date Landlord and Tenant shall meet in an effort to negotiate in
good faith the fair rental value of the Premises as of the Rental Adjustment
Date.  If Landlord and Tenant have not agreed upon the fair rental value
of the Premises at least ninety (90) days prior to the Rental Adjustment Date,
the fair rental value shall be determined by appraisal to be performed by a
real estate broker as set forth below.  If Landlord and Tenant are not
able to agree upon the fair rental value of the Premises within the prescribed
time period, then Landlord and Tenant shall attempt to agree in good faith upon
a single appraiser not later than seventy-five (75) days prior to the Rental
Adjustment Date.  If Landlord and Tenant are unable to agree upon a single
appraiser within that time period, then Landlord and Tenant shall each appoint
one appraiser not later than sixty (60) days prior to the Rental Adjustment
Date.  Within ten (10) days thereafter the two appointed appraisers shall
appoint a third independent appraiser.  If either Landlord or Tenant fails
to appoint its appraiser within the prescribed time period, the single
appraiser appointed shall determine the fair rental value of the
Premises.  If both parties fail to appoint appraisers within the
prescribed time period, then the first appraiser thereafter selected by a party
shall determine the fair rental value of the Premises.  Each party shall
bear the cost of its own appraiser and the parties shall share equally the cost
of the single or third appraiser.  Each appraiser shall be a licensed real
estate broker with a minimum of ten (10) years of experience in commercial 

 

 

10

 

real property in the area in
which the Premises are located and shall be a member of a professional
appraisal organization such as MAI or equivalent.

 

4.                                      
For
the purposes of such appraisal, the term “fair rental value” shall mean the
price that a ready and willing tenant would pay as of the Rental Adjustment Date,
as monthly rent to a ready and willing landlord of property comparable to the
Premises if such property were exposed for lease on the open market for a
reasonable period of time and taking into account all of the purposes for which
such property may be used as provided in the Lease.  If a single appraiser
is chosen, then that appraiser shall determine the fair rental value of the
Premises.  Otherwise the fair rental value of the Premises shall be the
arithmetic average of the two of the three appraisals which are closest in
amount, and the third appraisal shall be disregarded.  Landlord and Tenant
shall instruct the appraisers to complete their determination of the fair
rental value not later than thirty (30) days prior to the Rental Adjustment
Date.  If the fair rental value is not determined prior to the Rental
Adjustment Date, then Tenant shall continue to pay to Landlord the Base Rent
applicable to the Premises immediately prior to the Renewal Term, until the
fair rental value is determined.  When the fair rental value of the
Premises is determined, Landlord shall deliver notice thereof to Tenant, and
Tenant shall pay to Landlord, or Landlord shall pay to Tenant, as applicable,
within thirty (30) days after receipt of that notice, the difference between
the Base Rent actually paid by Tenant to Landlord and the new Base Rent determined
hereunder.

 

5.                                      
The
leasing of the Premises by Landlord to Tenant during a Renewal Term shall be
upon all terms and conditions set forth in the Lease, except as expressly
modified by this Exhibit. Tenant, if requested by Landlord, agrees to execute a
new lease for the Renewal Term(s) on the same terms and conditions set forth in
this Lease, except (a) as modified with respect to the Renewal Rate in
accordance with the terms of this Exhibit, (b) that Tenant shall accept the
Premises in its then “AS-IS” condition, and (c) that Landlord shall not be
required to perform any tenant finish or other work to the Premises, or to
provide Tenant any tenant finish allowance or other allowance or inducement
with respect to the Premises.  At Landlord’s request, instead of executing
a new lease, as set forth above, the parties shall execute an amendment to the
Lease, in form and substance acceptable to Landlord, reflecting the leasing of
the Premises for the Renewal Term in accordance with the foregoing.

 

6.                                      
If
Tenant fails to properly exercise any renewal option, that renewal option and
all subsequent renewal options, if any, shall terminate immediately and Tenant
shall have no right to extend the term of this Lease.  The renewal option
granted herein is personal to the Tenant named in this Lease and may not be
transferred or assigned except in connection with an assignment of the Lease
approved by Landlord in accordance with the provisions of this Lease.

 

11Exhibit 10.20

 

Property:
Princeton

 

 

FIRST AMENDMENT TO LEASE
AGREEMENT

 

THIS FIRST AMENDMENT TO LEASE AGREEMENT (this “Amendment”) is made and
entered into this 17th day of March, 2005, by and between FIRST STATES
INVESTORS 5200, LLC, a Delaware limited liability company (the “Landlord”) and
HEARTLAND PAYMENT SYSTEMS, INC., a Delaware corporation (the “Tenant”).

 

BACKGROUND

 

                A.            Landlord and Tenant are parties to
an Lease Agreement dated as of September 9, 2004 (the “Lease”), wherein
Landlord leased to Tenant approximately 9,307 rentable square feet (the “Premises”)
on the second and third floors of the Building located at 90 Nassau Street,
Princeton, New Jersey, all as is more fully described in the Lease.

 

                B.            Landlord and Tenant desire to amend
the Lease as set forth below.

 

AGREEMENT

 

                NOW, THEREFORE, in
consideration of the covenants and mutural promises contained herein, Ten
Dollars ($10.00) and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Landlord and Tenant, agreed to
amend, and do hereby amend, the Lease as follows:

 

                1.             Capitalized Terms.  Except as specifically defined in this
Amendment, capitalized terms shall have the same meaning given to such term in
the Lease.

 

                2.             Commencement Date.  The definition of Commencement Date, as set
forth in Article 1 of the Lease, is hereby deleted in its entirety and replaced
with the following:

 

“Upon Tenant’s completion of the Tenant’s Work in
accordance with the Leasehold Improvements Rider attached hereto.”

 

                3.             Expiration Date.   The definition of Expiration Date, as set
forth in Article 1 of the Lease, is hereby deleted in its entirety and replaced
with the following:

 

“The date that is the last day of the ninety-second
(92nd) month following the Commencement Date.”

 

                4.             Completion of the Work.  Paragraph 5 of the Leasehold Improvements
Rider is hereby deleted in its entirety and replaced with the following:

 

“5.           Completion
Date.  Tenant shall use commercially
reasonable efforts to complete the Work described in the Final Plans in a
timely and professional manner. However, notwithstanding any other provisions
hereof or of the Lease, the Commencement Date of the Term shall be the earlier
of the date Tenant begins operating its business in the Premises or the date
upon which Tenant’s Work is substantially completed. For the purposes of this
Paragraph 4, Tenant’s

 

 

 

 

Work shall be conclusively deemed to be substantially
completed when: (i) all Tenant’s Work has substantially completed in accordance
with this Rider, except for items which, in Landlord’s discretion, will not
materially affect Tenant’s use of the Premises for its Permitted Use, (ii)
ingress and egress to the Premises is secure, free and unobstructed, (iii) the
Premises conforms to all current applicable zoning, municipal, county, state
and federal laws, ordinances and regulations, and any covenants or restrictions
of record and (iv) a temporary certificate of occupancy has been issued without
any conditions that will materially interfere with Tenant’s use of the Premises
for its Permitted Use. If, for any reason, the Premises are not ready for
occupancy by the Commencement Date set forth in the Lease, Landlord shall not
be liable for any claims or damages by reason thereof.’’

 

                5.             Entire Agreement.  This Amendment sets forth all covenants,
agreements and understandings between Landlord and Tenant with respect to the
subject matter hereof, and there are no other covenants, conditions or
understandings, either written or oral, between the parties hereto except as
set forth in this Amendment.

 

                6.             Full Force and Effect.  Except as expressly amended hereby, all other
terms and provisions of the Lease remain unchanged and continue to be in full
force and effect.

 

                7.             Compliance with Warranties, No
Default.  The representations and
warranties set forth in the Lease as amended hereby shall be true and correct
with the same effect as if made on  the
date of this Amendment, and no uncured default under the Lease has occurred or
is continuing on the date of this Amendment.

 

                8              Conflicts.  The terms of this Amendment shall control
over any conflict between the terms of the Lease and the terms of this Amendment.

 

                9.             Successors and Assigns.  This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

 

                10.           Counterparts.  This Amendment may be executed in multiple
counterparts, and each counterpart when fully executed and delivered shall
constitute an original instrument, and all such multiple counterparts shall
constitute but one and the same instrument.

 

[Remainder of
Page Intentionally Blank]

 

 

                IN WITNESS
WHEREOF, Landlord and Tenant agree to the Lease Amendments set forth herein.

 

	
  FIRST
  STATE INVESTORS 5200, LLC

  
	
  a
  Delaware limited liability company

  
	
   

  
	
   

  
	
  By

  	
   /s/ SONYA A.
  HUFFMAN

  	
   

  
	
   

  	
  Sonya A. Huffman, Vice
  President

  

 

 

 

	
  HEARTLAND
  PAYMENT SYSTEMS, INC.

  
	
  a
  Delaware corporation

  
	
   

  
	
   

  
	
  By

  	
   /s/ROBERT H.B.
  BALDWIN, Jr.

  	
   

  
	
  Name:

  	
  Robert H.B. Baldwin Jr.

  
	
  Title:

  	
  Chief Financial Officer

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