Document:

Exhibit 10.11

 

T-REX CORPORATE CENTER@BOCA

LEASE AGREEMENT - STANDARD PROVISIONS

 

THIS LEASE AGREEMENT (“Lease”) is dated as of the         
day of                   ,
2003, by and between Boca Technology Center,
LLC, a Florida limited liability company (“Landlord”), and LifeWatch Holding Corporation, a Delaware
corporation, authorized to do business in Florida (“Tenant”).

 

ARTICLE 1

INCORPORATION
OF BASIC LEASE INFORMATION RIDER

 

1.                         The Basic Lease Information Rider (“Rider”) attached hereto, and all of
the defined terms contained therein, are incorporated herein by reference and
made a part hereof. In the event of any conflict between the terms of the Rider
and the terms of the Standard Provisions to Lease, the terms of the Rider shall
control.

 

ARTICLE 2

PREMISES

 

2.1                   (a)                   Landlord hereby leases to Tenant, and Tenant hereby leases from
Landlord, the Premises, for the term and upon the conditions and covenants set
forth herein. The Premises are outlined on Exhibit
B-1, which is attached hereto for locational purposes only and
by this reference made a part hereof.

 

(b)                In
addition to the occupancy of the Premises, Tenant and its officers, employees,
agents, customers and invitees also shall have the right to the non-exclusive
use of public parking areas (as distinguished from parking areas or portions
thereof that are specifically licensed to tenants of the building from
time-to-time during the Term hereof), walkways, landscaped areas, driveways and
sidewalks within the Building that are designated by Landlord from time to time
as areas for the common use of all tenants (the “Common Areas”). Landlord agrees to make the Common Areas
continuously available to Tenant for the non-exclusive use by Tenant, other
tenants and the their respective officers, employees, agents, customers and
invitees during the Lease Term and any extension thereof, except when portions
of the Common Areas temporarily may be unavailable for use by reason of repair
work then being underway thereon and as a result of the temporary use of such Common
Areas by Landlord and other tenants and their respective contractors while they
are engaged in the construction and/or renovation of other areas of the
Building. Landlord shall have the right from time to time temporarily to close
the Common Areas to prevent the acquisition of public rights thereon. Landlord
shall, as part of Operating Charges, operate and maintain the Common Areas
during the Lease Term and any extensions thereof in good order and repair in
accordance with the standards of comparable Buildings in the area in which the
Premises are located.

 

ARTICLE 3

TERM

 

3.1                 The Lease Term shall be as set forth on the
Rider and shall continue for the period set forth thereon. The Lease Term shall
also include any renewal or extension of the term of this Lease as described in
the Rider.

 

3.2                 The Rent Commencement Date shall be the date
set forth in the Rider.

 

3.3                 “Lease Year” shall mean a period of twelve
(12) consecutive months, the first such Lease Year to commence on the Lease
Commencement Date; provided, however, that if the Lease Commencement Date is
not the first day of a month, then the first Lease Year shall commence on the
Lease Commencement Date and shall continue for the balance of the month in
which the Lease Commencement Date occurs and for a period of twelve (12)
consecutive months thereafter. Each succeeding Lease Year shall be a period of
twelve (12) consecutive months commencing immediately upon the expiration of
the prior Lease Year.

 

ARTICLE 4

BASE RENT

 

4.1                 Commencing on the Rent Commencement Date and
during each Lease Year of the Lease Term, Tenant shall pay the Base Rent
specified in the Rider attached hereto and made a part hereof. The Base Rent
shall be due and payable in equal monthly installments, without notice, demand,
setoff or deduction, in advance on the first day of each month during each
Lease Year.

 

4.2                 All sums payable by Tenant under this Lease
shall be paid to Landlord in legal tender of the United States by wire transfer
(in accordance with wire transfer instructions contained on Schedule 4.2 attached hereto and made a
part hereof, as same may be amended from time-to-time in accordance with the
notice provisions of this Lease) or by check drawn on a U.S. bank (subject to
collection), at the address to which notices to Landlord are to be given or to
such other party or such other address as Landlord may designate in writing.
Landlord’s acceptance of rent after it shall have become due and payable shall
not excuse a delay upon any subsequent occasion or constitute a waiver of any
of Landlord’s rights. Until further notice, it is agreed that Tenant shall pay
all sums due under this Lease to Landlord at the address to which notices to
Landlord are to be given. In the event that Landlord’s lender imposes special
collection and bank account procedures on Landlord as a condition of Landlord’s
financing, Tenant agrees to cooperate fully with Landlord in assisting Landlord
in complying with such requirements and such modified terms shall be deemed to
be made a part hereof.

 

ARTICLE 5

OPERATING
CHARGES AND REAL ESTATE TAXES

 

5.1                 (a)                 Tenant
shall also pay as additional rent (“Additional Rent”): (i) Tenant’s
Proportionate Share of the Operating Charges (as defined in Section 5.1(b))
incurred during each calendar year falling entirely or partly within the Lease
Term and (ii) Tenant’s Proportionate Share of the amount of Real Estate Taxes
(as defined in Section 5.1(c)) incurred during each calendar year falling
entirely or partly within the Lease Term. Tenant’s Proportionate Share has been
set forth on the Rider. In the event the number of square feet comprising the
Premises increases or decreases, respectively, pursuant to any provision of
this Lease or of the Rider, or in the event the number of square feet of
rentable area in the Building increases or decreases, Tenant’s Proportionate
Share shall increase or decrease accordingly. Total Rentable Space for the
Building may change from time to time. Therefore, if and when such change
occurs, Tenant’s Proportionate Share will be appropriately adjusted and
Landlord will provide Tenant with a written statement describing the
adjustment.

 

(b)                Operating Charges shall mean all costs and
expenses incurred by the Landlord in the operation of the Building, including
without limitation, those items set forth on Schedule 5.1(b) attached hereto and made a part hereof.

 

(c)                    Real Estate Taxes shall mean (1) all real
estate taxes, vault and/or public space rentals (including general and special
assessments, if any), which are imposed upon Landlord or assessed against the
Building and/or the land upon which the Building is located (the “Land”) at the
maximum discounted amount, regardless of whether the Landlord has paid such
real estate taxes at the maximum discounted amount, (2) any other present or
future taxes or governmental charges that are imposed upon Landlord or assessed
against the Building and/or the Land which are in the nature of or in
substitution for real estate taxes, including any tax levied on or measured by
the rents payable by tenants of the Building, and (3) expenses (including
reasonable attorneys’, consultants’ and appraisers’ fees) incurred in
reviewing, protesting or seeking a reduction of Real Estate Taxes.

 

Real Estate Taxes will
not include capital stock, succession, transfer, franchise, gift, estate or
inheritance taxes imposed on Landlord.

 

5.2                 (a)
                Tenant shall make
estimated monthly payments to Landlord on account of the Operating Charges and
Real Estate Taxes expected to be incurred during each calendar year.

 

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From time to time,
Landlord will submit a statement to Tenant setting forth Landlord’s reasonable
estimate of such charges and the amount of Tenant’s Proportionate Share
thereof. Tenant shall pay to Landlord on the first day of each month following
receipt of such statement, until Tenant’s receipt of the succeeding annual
statement, an amount equal to one-twelfth (1/12) of such share (estimated on an
annual basis).

 

(b)                Within one hundred twenty (120) days following
the end of each calendar year, Landlord shall submit a statement showing (1)
Tenant’s Proportionate Share of the actual amount of Operating Charges and Real
Estate Taxes actually incurred during the preceding calendar year, and (2) the
aggregate amount of Tenant’s estimated payments during such year. If such
statement indicates that the aggregate amount of such estimated payments
exceeds Tenant’s actual liability, then Tenant shall deduct the net overpayment
from its next monthly payment(s) of estimated Operating Charges and Real Estate
Taxes. If such statement indicates that Tenant’s actual liability exceeds the
aggregate amount of such estimated payments, then Tenant shall pay the amount
of such excess within thirty (30) days of Tenant’s receipt of such notice of
excess due. Such statement of Operating Charges and Real Estate Taxes shall
become binding and conclusive if not contested by Tenant within sixty (60) days
after it is rendered.

 

Notwithstanding anything to the contrary in the Lease, within sixty
(60) days of Tenant’s receipt of Landlord’s statement, in the event any dispute
arises between Landlord and Tenant as to Operating Charges and/or Real Estate
Taxes, Tenant shall have the right, upon reasonable notice, to inspect and
photocopy, if desired, Landlord’s records concerning the Operating Charges
and/or Real Estate Taxes of the Building. If, after such inspection, Tenant
continues to dispute Operating Charges and/or Real Estate Taxes, Tenant shall
be entitled, within such sixty (60) day period, to retain an independent
accountant or accountancy firm that has a specialty in auditing operating
expenses to conduct an audit. The accountant or accountancy firm shall not be
compensated on a contingency basis. The results of any such audit shall be
completed not later than one hundred twenty days (120) days after Tenant’s
receipt of Landlord’s statement. If as to any specific issue it is determined
that Tenant has been overcharged, then Tenant shall receive a credit against
the next month’s required payment of Operating Charges in the amount of such
overcharge. If the audit reveals that Tenant was undercharged, then, within
thirty (30) days after the results of such audit are made available to Tenant,
Tenant shall reimburse Landlord for the amount of such undercharge. Tenant
shall pay the cost of any audits requested by Tenant, unless any audit reveals
that Landlord’s determination of the Operating Charges and/or Real Estate Taxes
was in error by more than five percent (5%), in which case Landlord shall pay
the cost of such audit. Landlord shall be required to maintain records of the
Operating Charges and Real Estate Taxes for the three-year period following
each Operating Charges statement. To the extent either party owes any amount to
the other, and such obligation arises at the end of the Term, such amount shall
be paid in its entirety within thirty (30) days following the completion of the
audit process.

 

(c)                 If the Lease Term commences or expires on a
day other than the first day or the last day of a calendar year, respectively,
then Tenant’s liability for Tenant’s Proportionate Share of Operating Charges
and Real Estate Taxes incurred during such calendar year shall be equitably
apportioned on a pro-rata basis.

 

5.3.              If during all or part of any Lease Year or
portion of a Lease Year of the Term, Landlord does not furnish any particular
item of work or service which would constitute an item of “Operating Charges”
to ninety-five percent (95%) of the Buildings because less than all of the
Building is occupied, then an adjustment shall be made in computing Operating
Charges for such Lease Year (or partial Lease Year) so that Operating Charges
shall be increased for such Lease Year (or partial Lease Year) to the amount
that reasonably would have been incurred had Landlord provided such item of
work or service to ninety-five percent (95%) of the aggregate leaseable area of
the Building for the entire Lease Year (or partial Lease Year). For example, if there are two groups of
tenants in the Building, one of which groups occupies forty percent (40%) of
the aggregate leaseable area of the Building for an entire Lease Year (the “40%
Group”), and the other of which occupies sixty percent (60%) of the aggregate
leaseable area of the Building for the same entire Lease Year (the “60% Group”),
and during the second Lease Year the 40% Group vacates the Building following
the expiration of three (3) months of said

 

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second Lease Year, and
following said 40% Group’s vacating of the Building, Landlord continues to
provide heat to the entire leaseable area of the Building but only provides
water service to the leaseable area occupied by the 60% Group, then Operating
Charges would include such expenses for heat and water service determined as
follows:

 

Heat                                    100%
of the heating costs of the Building, because Landlord continued to provide
heat to the entire Building even after the 40% Group vacated its space. In
other words, no adjustment is necessary.

 

Water Service

 

a.                                                     For
the first three (3) months of the second Lease Year, include the actual cost of
water service, because during the 3 month period Landlord provided such service
for the entire Building and the cost was thus the actual cost incurred for the
entire Building. In other words, no adjustment is necessary.

 

b.                                                    For
the remaining nine (9) months of the second Lease Year, include an amount which
is equal to the product of (i) the actual costs of water service during said 9
month period multiplied by (ii) a fraction, the numerator of which is 95 and
the denominator of which is the 60% Group’s proportionate share, because the
objective is to include the cost of water service that would have been provided
had the Building been fully occupied. For example, if the actual amount for
water service during said nine (9) month period when only the 60% Group
occupied the Building was $30,000, the amount which would be includable as the
water service element of Operating Charges for said 9 month period would be
$47500, i.e. $30,000 multiplied by 95 divided by 60.

 

5.4                 Notwithstanding
the provisions of this Article 5, in no event shall Tenant’s share of
Controllable Operating Charges be increased by more than five percent (5%)
annually, applied cumulatively, from that charged to Tenant for the immediately
preceding Lease Year. “Controllable” Operating Expenses are defined to mean all
Operating Expenses EXCEPT: (i) real estate taxes, (ii) utility charges and
fees, and (iii) insurance costs.

 

ARTICLE 6 

USE OF PREMISES

 

6.1                 (a)
                Tenant may use,
occupy and operate the Premises in accordance with the use clause set forth in
the Rider. Tenant agrees at all times during the Lease Term and any extensions
thereof to comply with all applicable laws affecting the use of the Premises.

 

(b)                Tenant
acknowledges and agrees that the precise location of equipment of the Premises
in the Building, to the Building or between and among floors, both at the
commencement of Tenant’s occupancy and as same may be modified, expanded or
adjusted from time-to-time after initial occupancy, shall be in conformity with
plans and specifications which have been approved in writing in advance by the
Landlord, in Landlord’s sole discretion, and shall otherwise be in accordance
with Building operating regulations. With respect to the location of equipment
within the Premises, Landlord shall have the right to review and approve such
initial placement and any relocation thereof, with such approval not to be
unreasonably withheld or delayed.

 

(c)                 Tenant
shall not use the Premises for any unlawful purpose or in any manner that will
constitute waste, nuisance or unreasonable annoyance to Landlord or any other
tenant of the Building, or in any manner that will increase the number of
parking spaces required for the Building at full occupancy or otherwise as
required by law. Tenant shall not generate, use, store, or dispose of any
materials in quantities or concentrations which pose a health or environmental
hazard in or about the Building, nor use or occupy the Premises in any manner
which may result in an increase in Landlord’s insurance premiums payable in
respect of the Building. Tenant shall comply with and conform to all present
and future laws, ordinances, regulations and orders of all applicable
governmental or quasi-governmental authorities having jurisdiction over the
Premises, including those concerning the use, occupancy and condition of the
Premises and all machinery, equipment and furnishings therein. The party
installing the initial leasehold improvements

 

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described in Exhibit D hereto shall obtain the
initial certificate of occupancy for the Premises. Any amended or substitute
certificate of occupancy necessitated by Tenant’s particular use of the
Premises or any Alterations made by Tenant in the Premises shall be obtained by
Tenant at Tenant’s sole expense. (The foregoing sentence shall not be construed
as to constitute the consent of the Landlord for any Alterations of the
Premises.) Use of the Premises is subject to all covenants, conditions and
restrictions of record.

 

6.2                 Tenant
shall pay, within thirty (30) days of notice thereof, but in any event before
delinquency, any business, rent or other taxes or fees that are now or
hereafter levied, assessed or imposed upon Tenant’s use or occupancy of the
Premises, the conduct of Tenant’s business in the Premises or Tenant’s
equipment, fixtures, furnishings, inventory or personal property. If any such
tax or fee is enacted or altered so that such tax or fee is levied against
Landlord or so that Landlord is responsible for collection or payment thereof,
then Tenant shall pay to Landlord as Additional Rent the amount of such tax or
fee within thirty (30) days of its having been assessed, but in no event in a
fashion as to constitute a delinquency in the payment of such taxes, fees or
assessments. Tenant shall also promptly pay any sales tax and/or other local
tax now or hereafter in existence that is imposed. Any sales tax on rent shall
be paid by Tenant to Landlord simultaneously with the monthly payment of Base
Rent. Any such tax obligation shall be deemed Additional Rent.

 

6.3                 (a)
                Tenant shall not
cause or permit any Hazardous Materials to be generated, used, released, stored
or disposed of in or about the Building, in quantities, concentrations or
manner which violate any Environmental Law, as herein defined, or impose
liability on Landlord as a result thereof. At the expiration or earlier
termination of this Lease, Tenant shall surrender the Premises to Landlord free
of Hazardous Materials and in compliance with all Environmental Laws except to
the extent any Hazardous Materials or violation of Environmental Laws was
caused by the conduct or actions of Landlord or its agents or employees, other
tenants at the Center or Building, or from off-site migration or pre-existing
contamination not caused or created by Tenant. “Hazardous Materials” means (a)
asbestos and any asbestos containing material and any substance that is then
defined or listed in, or otherwise classified pursuant to, any Environmental
Law or any other applicable Law as a “hazardous substance,” “hazardous
material,” “hazardous waste,” “infectious waste,” “toxic substance,” “toxic
pollutant” or any other formulation intended to define, list, or classify
substances by reason of deleterious properties such as ignitability,
corrosivity, reactivity, carcinogenicity, toxicity, reproductive toxicity, or
Toxicity Characteristic Leaching Procedure (TCLP) toxicity, (b) any petroleum
and drilling fluids, produced waters, and other wastes associated with the
exploration, development or production of crude oil, natural gas, or geothermal
resources, and (c) any petroleum product, polychlorinated biphenyls, urea
formaldehyde, radon gas, radioactive material (including any source, special
nuclear, or by-product material), medical waste, chlorofluorocarbon, lead or
lead-based product, and any other substance whose presence could be detrimental
to the Building or the Land or hazardous to health or the environment, “Environmental
Law” means any present and future Law and any amendments (whether common law,
statute, rule, order, regulation or otherwise), permits and other requirements
or guidelines of governmental authorities applicable to the Building or the
Land and relating to the environment and environmental conditions or to any
Hazardous Material (including, without limitation, CERCLA, 42 U.S.C. § 9601 et seq., the Resource Conservation and
Recovery Act of 1976, 42 U.S.C. § 6901 et
seq., the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq., the Federal Water Pollution
Control Act, 33 U.S.C. § 1251 et seq., the
Clean Air Act, 33 U.S.C, § 7401 et seq., the
Toxic Substances Control Act, 15 U.S.C. § 2601 et
seq., the Safe Drinking Water Act, 42 U.S.C. § 300f et seq., the Emergency Planning and
Community Right-To-Know Act, 42 U.S.C. § 1101 et
seq., the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq., and any so-called “Super Fund” or
“Super Lien” law, any Law requiring the filing of reports and notices relating
to hazardous substances, environmental laws administered by the Environmental
Protection Agency, and any similar state and local Laws, all amendments thereto
and all regulations, orders, decisions, and decrees now or hereafter
promulgated thereunder concerning the environment, industrial hygiene or public
health or safety).

 

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(b)                Notwithstanding
any termination of this Lease, Tenant shall indemnify and hold Landlord, its
employees and agents, and, if applicable, Landlord’s prime landlord under any
ground lease to which Landlord is a party, and Landlord’s lender(s), harmless
from and against any damage, injury, loss, liability, charge, demand or claim
based on or arising out of the presence or removal of, or failure to remove,
Hazardous Materials generated, used, released, stored or disposed of by Tenant
or any Invitee in or about the Building, whether before or after Lease
Commencement Date. In addition, Tenant shall give Landlord immediate verbal and
follow-up written notice of any actual or threatened Environmental Default,
which Environmental Default Tenant shall cure at the sole expense of the Tenant
in accordance with all Environmental Laws and to the satisfaction of Landlord
and only after Tenant has obtained Landlord’s prior written consent. An “Environmental
Default” means any of the following by Tenant or any Invitee: a violation of an
Environmental Law; a release, spill or discharge of a Hazardous Material on or
from the Premises, the Land or the Building; an environmental condition
requiring responsive action; or an emergency environmental condition. Upon any
Environmental Default, in addition to all other rights available to Landlord
under this Lease, at law or in equity, Landlord shall have the right, but not
the obligation, to immediately enter the Premises, to supervise and approve any
actions taken by Tenant to address the Environmental Default, and, if Tenant
fails to immediately address same to Landlord’s satisfaction, to perform, at
Tenant’s sole cost and expense, any lawful action necessary to address same.
This provision will survive the termination or expiration of this Lease, and
any renewals, extensions or expansions thereof.

 

ARTICLE 7

ASSIGNMENT AND SUBLETTING

 

7.1                 Except
as provided below, Tenant will not sell, assign, transfer, mortgage or
otherwise encumber this Lease or sublet, rent or permit occupancy or use of the
Premises or any part thereof by others, without obtaining the prior written
consent of Landlord, nor shall any assignment or transfer of this Lease or the
right of occupancy hereunder be effectuated by operation of law or otherwise
without the prior written consent of Landlord, which consent may be granted,
withheld or conditioned in the sole and absolute discretion of the Landlord.
Any such assignment, subletting or occupancy without the prior written consent
of Landlord shall constitute an Event of Default, or, at the election of the
Landlord, shall be void. Tenant shall pay all reasonable expenses (including
attorney’s fees) incurred by Landlord in connection with Tenant’s request for
Landlord to give its consent to any assignment, subletting or occupancy.

 

7.2                 Any
transfer, by operation of law or otherwise, of Tenant’s interest in this Lease
(in whole or in part), or of a fifty percent (50%) or greater interest in
Tenant (whether stock, partnership interest or otherwise), or any mortgaging or
encumbering of any interest in Tenant, shall be deemed an assignment of this
Lease within the meaning of this Article 7. The issuance of shares of stock to
other than the existing shareholders is deemed to be a transfer of that stock
for the purposes of this Article 7. If there has been a previous transfer of
less than a fifty percent (50%) interest in Tenant, then any other transfer of
an interest in Tenant which, when added to the total percentage interest
previously transferred, totals a transfer of greater than a fifty percent (50%)
interest in Tenant shall be deemed an assignment of Tenant’s interest in this
Lease within the meaning of this Article 7. Tenant shall be obligated to notify
Landlord when a transfer of fifty percent (50%) or greater interest in Tenant
is proposed. The provisions of this Section 7.2 shall not apply to the sale of
shares by persons other than those deemed “insiders” within the meaning of the
Securities Exchange Act of 1934, as amended, where such sale is effected
through any recognized exchange or through the “over-the-counter market.”

 

7.3                 If
Landlord shall decline to give its consent to any proposed assignment or
sublease, or if Landlord shall exercise any of its rights under this Article 7,
Tenant shall indemnify, defend and hold harmless Landlord against and from any
and all loss, liability, damages, costs and expenses (including reasonable attorneys’
fees) resulting in connection with any claim relating to the proposed
assignment or sublease that may be made against Landlord by the proposed
assignee or sublessee or by any brokers or other persons, including, without
limitation, claims for a commission or similar compensation in connection with
the proposed assignment or sublease.

 

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7.4                 In
the event that (i) Landlord fails to exercise any of its options under this
Article 7 and (ii) Tenant fails to execute and deliver the assignment or
sublease to which Landlord consented within forty-five (45) days after the
giving of such consent then, Tenant shall again comply with all of the
provisions and conditions of this Article 7 before assigning its interest in
this Lease or subletting any portion of the Premises.

 

7.5                 The
consent by Landlord to an assignment or to a subletting shall not relieve
Tenant from obtaining the express consent in writing of Landlord to any further
assignment or subletting. If Tenant’s interest in this Lease is assigned, or if
the Premises or any part thereof is sublet or occupied by anyone other than
Tenant, Landlord may collect rent from the assignee, subtenant or occupant and
apply the net amount collected to the Rent payable hereunder, but no such
assignment, subletting, occupancy or collection shall be deemed a waiver of the
provisions of this Article 7 or of any default hereunder or the acceptance of
the assignee, subtenant or occupant as Tenant, or a release of Tenant from the further
observance or performance by Tenant of all covenants, conditions, terms and
provisions on the part of Tenant to be performed or observed.

 

7.6                 Notwithstanding
anything to the contrary in this section, Tenant, without Landlord’s consent
may (a) assign this Lease to any party into which Tenant is merged,
consolidated or reorganized, or to which all or substantially all of Tenant’s
assets are transferred or sold, provided: (i) Landlord shall receive a copy of
the executed transfer document promptly after execution, (ii) Tenant or its
successors by merger shall remain liable under this Lease, (iii) the transferee
shall expressly assume Tenant’s obligations under this Lease and the successor
entity is, after the transfer or assignment, at least as creditworthy as
Tenant; and (b) upon prior written notice to Landlord, sublease the Premises to
Tenant’s affiliates. For purposes of this Lease, an affiliate of Tenant is a
corporation, partnership, limited liability company, or other entity that,
directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, the Tenant. The term “control”
(including the terms “controlled by” and “under common control with”) means the
possession, direct or indirect, of the power to direct, or cause the direction
of, the management and policies of Tenant, whether through the ownership of
voting securities, by contract, or otherwise. Tenant shall give Landlord
written notice (containing the information described above) of any such
sublease to Tenant’s affiliates.

 

7.7                 In
the event of an attempted subletting or assignment to an unaffiliated third
party, Tenant shall submit a request for consent thereto to Landlord. If
Landlord elects to deny the request for consent to assignment, Landlord shall
have the right to recapture the Premises, or that portion of the Premises
sought to be subleased, by providing Tenant written notice of intent to
recapture, within thirty (30) days of Landlord’s receipt of a request by Tenant
for consent to assignment to an unaffiliated third party of this permitted
assignment. If Landlord consents to such an assignment or sublease, Tenant
agrees that Landlord and Tenant shall equally share in any amount of rent
received in excess of the then-effective Base Rent, after deduction of Landlord’s
expenses in connection with the assignment or sublease.

 

ARTICLE 8

MAINTENANCE AND REPAIRS

 

8.1                 Tenant
shall keep and maintain the Premises, and all fixtures and equipment located
therein, in clean, safe and sanitary condition, shall take good care thereof
and make all repairs thereto, and shall suffer no waste or injury thereto. At
the expiration or earlier termination of the Lease Term, Tenant shall surrender
the Premises, and in the same order and condition in which they were on the
Lease Commencement Date, ordinary wear and tear and unavoidable damage by the
elements excepted. Except as otherwise provided in Article 18, all injury,
breakage and damage to the Premises and to any other part of the Building or
the Land caused by any act or omission of Tenant or of any invitee, agent,
employee, subtenant, assignee, contractor, client, family member, licensee,
customer or guest of Tenant (collectively, “Invitees”), including any act or
omission in connection with the installation and/or removal of any of Tenant’s
furniture, fixtures and equipment, shall be repaired by and at Tenant’s
expense, except

 

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that Landlord shall have
the right at Landlord’s option to make any such repair and to charge Tenant for
all costs and expenses incurred in connection therewith.

 

8.2                 Landlord
shall keep and maintain in good order and repair, in accordance with
commercially reasonable standards for comparable facilities in the jurisdiction
in which the Building is located, the base-building structure and systems,
including the roof, exterior walls, elevators, electrical, plumbing and common
area HVAC systems (which excludes such elevator, electrical, plumbing and HVAC
systems to the extent same are located within or exclusively service the Tenant’s
Premises or the premises of other tenants only, in which event same shall be
governed by Section 8.1 above), and the ground floor lobby and other common
areas and facilities of the Building.

 

ARTICLE 9 

INITIAL TENANT IMPROVEMENTS AND ALTERATIONS

 

9.1                 The
original improvement of the Premises shall be accomplished in accordance with Exhibit D. Landlord is under no
obligation to make, or to permit Tenant or Tenant’s contractors to make, any
structural or other alterations, decorations, additions, improvements or other
changes (collectively “Alterations”) in or to the Premises except as set forth
in Exhibit D or otherwise
expressly provided in this Lease. Prior to the commencement by Tenant of the
construction of any improvements, Tenant shall obtain and deliver to Landlord
written, unconditional waivers of mechanics’ and materialmen’s liens against
the Complex from all proposed contractors, subcontractors, laborers and
suppliers in connection with such improvements, in form and content reasonably
satisfactory to Landlord.

 

9.2                 Tenant
shall not make or permit anyone for whom Tenant is responsible to make any
Alterations in or to the Premises or the Building, without Landlord’s prior
written consent. The criteria for such consent shall be determined by the
nature of the Alteration and whether same shall have an impact upon the
structural integrity of the Building or a Building system of general use, or
shall have an impact on a tenant other than the Tenant, in which event, the
consent or approval of the Landlord may be granted, conditioned or withheld in
the sole and absolute discretion of the Landlord. If the two impacts described
in the preceding sentence are not factors, in the reasonable judgment of
Landlord, then the consent or approval of the Landlord to an Alteration shall
not be unreasonably withheld, conditioned or delayed. Any authorized and
approved Alteration made by Tenant shall be made: (a) in a good, workmanlike,
first-class and prompt manner; (b) using new materials only; (c) by an
experienced, reputable contractor, approved in advance by the Landlord in its
reasonable discretion or expressly identified on the Rider, and constructed in
accordance with plans and specifications approved in writing by Landlord in
accordance with this Section 9.2; (d) in accordance with all applicable legal
requirements and requirements of any insurance company insuring the Building or
portion thereof; (e) after having obtained any required consent of the holder of
any Mortgage (as defined in Section 22.1); (f) after Tenant has obtained public
liability and worker’s compensation insurance policies approved in writing by
Landlord; and (g) after Tenant has obtained and delivered to Landlord written,
unconditional waivers of mechanics’ and materialmen’s liens against the
Premises and the Building from all proposed contractors, subcontractors,
laborers and material suppliers for all work and materials in connection with
such Alteration. Any such Alteration shall be performed in a manner consistent
with the Building Rules and Regulations as may be promulgated from time-to-time
by the Landlord.

 

9.3                 In
the event of an approved Alteration after the initial build-out of Tenant’s
Premises, Tenant agrees that Tenant shall reimburse Landlord for its actual
costs of plan review, construction monitoring and oversight by Landlord. Said
reimbursement shall be due within thirty (30) days of Tenant’s receipt of
Landlord’s statement therefor, and shall be considered Additional Rent.

 

8

 

9.4                 Liens.

 

A.                   General. In accordance with the applicable
provisions of the Florida Construction Lien Law and specifically Florida
Statutes, Section 713.10, no interest of Landlord whether personally or in the
Premises, or in the underlying land or Building of which the Premises are a
part, or the leasehold interest aforesaid shall be subject to liens for
improvements made by Tenant or caused to be made by Tenant hereunder. Further,
Tenant shall have no power or authority to create any lien or permit any lien
to attach to the present estate, reversion, or other estate of Landlord in the
Premises or in the Building, and all mechanics, materialmen, contractors,
artisans and other parties contracting with Tenant or its representatives or
privies as to the Premises or any part of the Premises are hereby charged with
notice that they must look to the Tenant to secure payment of any bill for work
done or material furnished or for any other purpose during this Lease term. The
foregoing provisions are made with express reference to Section 713.10 of the
Florida Statutes. Landlord has recorded a notice of the foregoing in the Public
Records of Palm Beach County, Florida, pursuant to the provisions of Section
713.10 Florida Statutes.

 

B.                     Default. Notwithstanding the foregoing, if
any construction lien or other lien, attachment, judgment, execution, writ,
charge or encumbrance is filed against the Building or the Premises or this
leasehold, or any alterations, fixtures or improvements therein or thereto, as
a result of any work action or inaction done by or at the direction of Tenant
or any of Tenant’s Agents, Tenant will discharge same of record within ten (10)
days after Tenant knows or should have known of the filing thereof, failing
which Tenant will be in default under this Lease. Further, Tenant agrees to
indemnify, defend and save Landlord harmless from and against any damage or
loss, including reasonable attorneys’ fees, incurred by Landlord as a result of
any liens or other claims arising out of or related to work performed in the
Premises by or on behalf of Tenant. In such event, without waiving Tenant’s
default, Landlord, in addition to all other available rights and remedies,
without further notice, may discharge the same of record by payment, bonding or
otherwise, as Landlord may elect, and upon request Tenant will reimburse
Landlord for all costs and expenses so incurred by Landlord plus interest
thereon at the rate of eighteen percent (18%) per annum, together with an
administrative fee of $2,500.00.

 

9.5                 Consent
to an Alteration shall not constitute consent or authorization by the Landlord
to the placement of financing by the Tenant relating to the Alterations that
purports to create any security interest in the Building or that purports to
subordinate this Lease to any such financing, and any such effort or agreement
by Tenant shall constitute an Event of Default.

 

9.6                 Tenant
acknowledges and agrees that, during the construction of initial improvements,
any subsequent Alterations and thereafter during the operation of the Building,
Landlord has authority to coordinate access to loading areas, freight
elevators, the roof, shafts, space and other areas of the Building, and that
Landlord has authority to adopt reasonable rules and regulations pertaining to
same, and to approve such Tenant access. Tenant will also cause its
Contractor(s) to coordinate their use of and access to the foregoing with
Landlord’s Base Building Contractor, which will have authority to approve such
access during construction.

 

ARTICLE 10

SIGNS

 

10.1           Landlord will list Tenant’s name in the
common area Building directory, if any, and provide Building standard signage
on one suite entry door at Tenant’s expense. No other sign, advertisement or
notice referring to Tenant shall be painted, affixed or otherwise displayed on
any part of the exterior or interior of the Building; provided, however, that
Tenant may install signs in the interior of the Premises that are not visible
from the exterior of the Premises. Tenant shall not display any decoration,
fitting or other item visible from the exterior of the Premises without
Landlord’s prior approval. If any sign or item visible from the exterior of the
Premises is displayed without Landlord’s approval, then Landlord shall have the
right to remove such item at Tenant’s expense or to require Tenant to do the
same.

 

9

 

10.2           To the extent that Tenant wishes to erect an
exterior sign, it may do so only with the prior written consent of the
Landlord, which consent may be granted, conditioned or withheld in the sole and
absolute discretion of Landlord. If approved, Landlord will establish an annual
fee for the value of such signage rights to be paid by Tenant, and Tenant shall
also pay the cost of erection of such signage and such erection shall be
treated as an Alteration. Upon request by Landlord, Tenant shall remove such
signage in accordance with Section 11.2 below.

 

10.3           Landlord shall have the right to prescribe
standards for curtains, drapes, blinds and shades to give the building a
uniform appearance from the exterior.

 

ARTICLE 11

TENANT’S EQUIPMENT

 

11.1           Tenant may, from time to time during the Term
or any extension hereof, install, maintain, replace, repair, expand, construct
and operate in or upon the Premises and remove therefrom such trade fixtures
and equipment as it may deem necessary or appropriate to its business
operations; provided, any damage which may be caused to the Premises by the
installation, maintenance, replacement, repair, expansion, construction,
operation or removal of any of Tenant’s trade fixtures or equipment shall be
forthwith repaired by Tenant at its expense. Landlord may impose reasonable
rules and regulations concerning the location, weight and timing and method of
installation of trade fixtures or equipment, wherever installed.

 

11.2           Tenant covenants and agrees that, if directed
by the Landlord at its sole discretion, Tenant shall remove, at Tenant’s sole
risk and expense, all fixtures and improvements to the Premises upon the
expiration of the Lease Term. If so requested by the Landlord, Tenant shall
restore the Premises to its original condition, normal wear and tear, and
approved structural changes excepted. Tenant shall also exercise extraordinary
care in removing such fixtures and improvements so as to eliminate damage to
the Building, the premises and property of other tenants and the inconvenience
to the operation of the Building and its tenants.

 

ARTICLE 12

SECURITY DEPOSIT

 

12.1           Simultaneously with Tenant’s execution of
this Lease, Tenant shall deposit with Landlord the Security Deposit as stated
in the Rider. Landlord shall not be required to maintain the Security Deposit
in a separate account. Except as may be required by law, Tenant shall not be
entitled to interest on the Security Deposit. The Security Deposit shall be
security for Tenant’s performance of its obligations under this Lease. Within
three (3) business days after written notice of Landlord’s use of the Security
Deposit or portion thereof, Tenant shall deposit with Landlord cash in an
amount sufficient to restore the Security Deposit to its amount prior to such
use, and Tenant’s failure to do so shall constitute a default hereunder. Within
approximately thirty (30) days after the later of (a) the expiration or earlier
termination of the Lease Term, or (b) Tenant’s vacating the Premises, Landlord
shall return the Security Deposit less such portion thereof as Landlord shall
have used to satisfy Tenant’s obligations under this Lease. If Landlord
transfers the Security Deposit to any transferee of the Building or Landlord’s
interest therein, then such transferee shall be liable to Tenant for the return
of the Security Deposit, and Landlord shall be released from all liability for
the return of the Security Deposit. The holder of any Mortgage shall not be
liable for the return of the Security Deposit unless such Mortgage holder
actually receives the Security Deposit.

 

ARTICLE 13

ACCESS AND INSPECTION

 

13.1           Tenant shall permit Landlord and its
designees to enter the Premises, without charge therefor and without diminution
of the rent payable by Tenant, to inspect the Premises, to make such
alterations and repairs as Landlord may deem necessary, or to exhibit the
Premises to prospective tenants during the last one hundred eighty (180) days
of the Lease Term. Tenant shall at all times during its occupancy of the
Premises provide Landlord duplicates of the keys to the doors and other points
of entry to the Premises. In connection with any such entry,

 

10

 

Landlord shall make
reasonable efforts to minimize the disruption to Tenant’s use of the Premises
and shall conform to Tenant’s reasonable security requirements. Except in an
emergency, Landlord shall give Tenant reasonable prior notice (which shall be
in writing, except in an emergency) of any entry into the Premises pursuant to
this Section.

 

ARTICLE 14

INSURANCE

 

14.1           Tenant will not conduct or permit to be
conducted any activity, or place any equipment in or about the Premises or the
Building, which will, in any way, invalidate the insurance coverage in effect
or increase the cost of insurance on or for the Building; and if any
invalidation of coverage or increase in the cost of insurance is stated by any
insurance company or by the applicable Insurance Rating Bureau to be due to any
activity or equipment of Tenant in or about the Premises or the Building, such
statement shall be conclusive evidence that same is due to such activity or
equipment and, as a result thereof, Tenant shall be liable for same and shall
reimburse Landlord therefor upon demand and any such sum shall be considered
Additional Rent payable with the monthly installment of Rent next becoming due.

 

14.2           Tenant, at Tenant’s expense, shall carry and
keep in full force and effect at all times during the Lease Term for the
protection of Tenant, Landlord and any other persons designated by Landlord
pursuant to Section 14.4 hereof commercial general liability insurance
including contractual liability coverage with a combined single limit of at
least One Million Dollars ($1,000,000.00) for each occurrence of bodily or
personal injury, death or property damage and Tenant shall deliver to Landlord
a copy of said policy or, at Landlord’s option, a binder or certificate showing
the same to be in full force and effect. It is understood and agreed that
liability coverage provided for hereunder shall extend beyond the Premises to
portions of the common area of the Building used from time to time by Tenant,
its agents, employees, contractors, invitees, licensees, customers, clients,
family members and guests, and, further, shall include contractual liability
coverage insuring the indemnity provisions of this Lease.

 

14.3           Tenant, at Tenant’s expense, shall further
carry a policy of “all risk” insurance covering all of Tenant’s personal
property and improvements in the Premises for not less than the full insurable
cost and replacement cost of such personal property and improvements without
reduction for depreciation. All proceeds of such insurance shall be used solely
to restore, repair or replace the Tenant’s personal property and improvements
in the Premises.

 

14.4           Said commercial general liability and “all
risk” insurance policies and any other insurance policies carried by Tenant
with respect to the Premises and/or any common areas accessible to Tenant shall
(i) be issued in form acceptable to Landlord by good and solvent insurance
companies qualified to do business in the jurisdiction in which the Building is
located and otherwise reasonably satisfactory to Landlord, (ii) designate as
additional insureds, besides Tenant as named insured, Landlord, Landlord’s
managing agent, Landlord’s lender(s) as may exist from time to time, and any
other person from time to time designated in writing by notice from Landlord to
Tenant, (iii) be written as primary policy coverage and not contributing with
or in excess of any coverage which Landlord may carry, (iv) provide for thirty (30)
days’ prior written notice to Landlord of any cancellation or other expiration
or material modification of such policy or any defaults thereunder, and (v)
contain an express waiver of any right of subrogation by the insurance company
against Landlord. Neither the issuance of any insurance policy required
hereunder nor the minimum limits specified herein with respect to Tenant’s
insurance coverage shall be deemed to limit or restrict in any way Tenant’s
liability arising under or out of this Lease.

 

14.5           Tenant shall obtain such additional amounts
of insurance and additional types of coverage as Landlord may reasonably
request from time to time. If Tenant fails to comply with any of the insurance
requirements of this Lease, Landlord may obtain such insurance and keep the
same in effect, and Tenant shall pay Landlord as Additional Rent the premium
cost thereof with the next installment of Rent otherwise due.

 

11

 

14.6           Notwithstanding anything to the contrary
contained in this Lease, Landlord and Tenant and all parties claiming under
them, to the extent covered by insurance (or to the extent such party would
have been covered by insurance had such party maintained the insurance required
by the terms hereof to be maintained by such party), each hereby waives any and
all rights of recovery, claim, action and liability against the other, its
agents, officers or employees for any loss or damage that may occur to the
Building and Premises, or any improvements thereto, and any personal property
owned by them therein, by reason of fire, the elements or any other cause(s)
which could be covered by “all risk” property insurance, regardless of cause or
origin, including negligence of the other party hereto.

 

ARTICLE 15

SERVICES AND UTILITIES

 

15.1           Landlord shall provide the following services
and utilities in a manner consistent with the standards for quality followed in
comparable facilities in the jurisdiction in which the Building is located:

 

(i)         Electrical service to
operate the common areas of the Building, and electrical capacity to a point of
connection at the Building for Tenant. It is understood and agreed that the
cost of separately metering any electrical or other utility service, if any,
shall be borne by Tenant, and it is also understood and agreed that to Tenant
shall be responsible for paying all costs associated with all utility services
to the Premises.

 

(ii)      Heat and air-conditioning for
the common areas of the Building during normal hours of operation of the
Building as set forth in Section 15.3 below.

 

(iii)   Cold water for drinking,
lavatory and toilet purposes at those points of supply provided for
nonexclusive general use of other tenants at the Building, and supplies for
such lavatory and toilet purposes.

 

(iv)         Operatorless passenger
elevator service 24 hours per days, 365 days per year, and freight elevator
service (subject to scheduling by Landlord) in common with Landlord and other
tenants and their contractors, agents and visitors; provided, however, that
Landlord shall have the right to remove elevators from service as they are
required for moving freight or for servicing and/or maintaining the elevators
and/or the Building.

 

(v)     Access to the Premises and the
Building 24 hours per day, 365 days a year, subject to reasonable security
regulations (such as providing identification to Building security personnel)
imposed by Landlord during non-business hours.

 

(vi)         Replacement of all
Building standard lighting tubes and bulbs, if any, located in common areas.

 

15.2           Landlord agrees to operate and maintain the
Building in accordance with the standards for quality followed by other
comparable facilities in the jurisdiction in which the Building is located and
to provide building security personnel, equipment, procedures and systems in
the Building similar to other such comparable facilities. Landlord reserves the
right to interrupt, curtail or suspend the services required to be furnished by
Landlord under this Article 15 when the necessity therefor arises by reason of
accident, emergency, mechanical breakdown, or when required by any Law, or for
any other cause beyond the reasonable control of Landlord. Landlord shall use
reasonable efforts to complete all repairs or other work so that Tenant’s inconvenience
resulting therefrom may be for as short a period of time as circumstances will
permit.

 

15.3           Landlord will furnish all services and
utilities required by this Lease only during the normal hours of operation of
the Building, unless otherwise specified herein, in a manner consistent with
industry standards for comparable buildings in the jurisdiction in which the
Building is located. The normal hours of operation of the Building are from
7:00 am to 7:00

 

12

 

pm., Monday through
Friday. It is understood and agreed that Landlord shall not be liable for
failure to furnish, or for delay, suspension or reduction in furnishing, any of
the utilities, services or other manner of thing required to be furnished by
Landlord hereunder, if such failure to furnish or delay, suspension or
reduction in furnishing same is caused by breakdown, maintenance, repairs,
strikes, scarcity of labor or materials, acts of God, Landlord’s compliance
with governmental regulation or legislation or judicial or administrative
orders or from any other cause whatsoever; provided, however, that Landlord
shall, in the event of a breakdown, use reasonable diligence to repair all
equipment owned by Landlord and all building standard equipment furnished by
Landlord which is required to provide such utilities and services.

 

15.4           Landlord agrees to provide and maintain an
electronically controlled access system for the common areas of the Building
during the Lease Term (“Electronic Access System”); provided, however, that no
representation or warranty with respect to the adequacy, completeness or
integrity of the Electronic Access System is made by Landlord, and except for
losses attributable to Landlord’s gross negligence the risk that any such
system or entrance may not be effective, or may malfunction, or be circumvented
by a criminal, is assumed by Tenant with respect to Tenant’s property and
interest, and Tenant shall obtain insurance coverage to the extent Tenant
desires protection against such criminal acts and other losses. Landlord
reserves the right to modify, supplement or revise the access system at any
time in its sole judgment. Said access system is not intended to serve as
security for the Premises or otherwise for individual tenant-occupied spaces or
suites.

 

15.5           Tenant shall have the right to provide and
maintain a security system within the Premises in accordance with plans and
specifications approved by the Landlord in accordance with the Tenant Work
approval process or, in the event that such system is installed after
completion of the Tenant Work, in accordance with the approval of Alterations
under Article 9 above.

 

ARTICLE 16 

LIABILITY OF LANDLORD

 

16.1           Landlord, its employees and agents shall not
be liable to Tenant, any Invitee or any other person or entity for any damage
(including indirect and consequential damage), injury, loss or claim (including
claims for the interruption of or loss to business) based on or arising out of
any cause whatsoever (except as otherwise provided in this Section), including
without limitation the following: repair to any portion of the Premises or the
Building; interruption in the use of the Premises or any equipment therein; any
accident or damage resulting from any use or operation (by Landlord, Tenant or
any other person or entity) of elevators or heating, cooling, electrical,
sewerage or plumbing equipment or apparatus; termination of this Lease by
reason of damage to the Premises or the Building; fire, robbery, theft,
vandalism, mysterious disappearance or any other casualty; actions of any other
tenant of the Building or of any other person or entity; failure or inability
of Landlord to furnish any utility or service specified in this Lease; and
leakage in any part of the Premises or the Building, or from water, rain, ice
or snow that may leak into, or flow from, any part of the Premises or the
Building, or from drains, pipes or plumbing fixtures in the Premises or the
Building. Any property stored or placed by Tenant or Invitees in or about the
Premises or the Building shall be at the sole risk of Tenant, and Landlord
shall not in any manner be held responsible therefor. If any employee of
Landlord receives any package or article delivered for Tenant, then such
employee shall be acting as Tenant’s agent for such purpose and not as Landlord’s
agent. For purposes of this Article, the term “Building” shall be deemed to
include the Land. Notwithstanding the foregoing provisions of this Section,
Landlord shall not be released from liability, if any, to Tenant for any damage
caused by the willful misconduct or gross negligence of Landlord, its employees
or agents, to the extent such damage is not covered by insurance carried by
Tenant or required to be carried by Tenant.

 

16.2           Tenant shall indemnify and hold Landlord, its
employees and agents harmless from and against all costs, damages, claims,
liabilities and expenses (including attorneys’ fees) suffered by or claimed
against Landlord, directly or indirectly, based on or arising out of the following
except to the extent caused by the gross negligence or willful misconduct of
Landlord, its employees or agents: (a) Tenant’s use and occupancy of the
Premises or the business

 

13

 

conducted by Tenant therein,
(b) any act or omission of Tenant or any Invitee, (c) any breach of Tenant’s
obligations under this Lease, including failure to surrender the Premises upon
the expiration or earlier termination of the Term, or (d) any entry by Tenant
or any Invitee upon the Land prior to the Lease Commencement Date.

 

16.3           If any landlord hereunder transfers the
Building or such landlord’s interest therein, then such landlord shall not be
liable for any obligation or liability based on or arising out of any event or condition
occurring on or after the date of such transfer. Within fifteen (15) days after
any such transferee’s request, Tenant shall attorn to such transferee and
execute, acknowledge and deliver any requisite or appropriate document
submitted to Tenant confirming such attornment.

 

16.4           Tenant shall not have the right to offset or
deduct the amount allegedly owed to Tenant pursuant to any claim against
Landlord from any rent or other sum payable to Landlord. Tenant’s sole remedy
for recovering upon such claim shall be to institute an independent action
against Landlord.

 

16.5           Notwithstanding anything to the contrary
contained herein, if Tenant or any Invitee is awarded a money judgment against
Landlord, then recourse for satisfaction of such judgment shall be limited to
execution against Landlord’s estate and interest in the Building. No other
asset of Landlord, any member or partner of Landlord or any other person or
entity shall be available to satisfy, or be subject to, such judgment, nor
shall any such member, partner, person or entity be held to have personal
liability for satisfaction of any claim or judgment against Landlord or any
member or partner of Landlord.

 

16.6           Notwithstanding anything to the contrary
contained in this Lease, if any provision of this Lease expressly or impliedly
obligates Landlord not to unreasonably withhold its consent or approval, an
action for declaratory judgment or specific performance will be Tenant’s sole
right and remedy in any dispute as to whether Landlord has breached such
obligation.

 

16.7           Landlord shall not be liable in any manner to
Tenant, its agents, employees, invitees or visitors for any injury or damage to
Tenant, Tenant’s agents, employees, invitees or visitors, or their property,
caused by the criminal or intentional misconduct of third parties or of Tenant,
Tenant’s employees, agents, invitees or visitors. All claims against Landlord
for any such damage or injury are hereby expressly waived by Tenant, and Tenant
hereby agrees to hold harmless and indemnify Landlord from all such damages and
the expense of defending all claims made by Tenant’s employees, agents,
invitees, or visitors arising out of such acts.

 

ARTICLE 17 

RULES

 

17.1           Tenant and its Invitees shall at all times
abide by and observe the rules set forth in Exhibit E. Tenant and its Invitees shall also abide by and
observe any other rules that Landlord may reasonably promulgate from
time-to-time for the operation and maintenance of the Building, provided that
notice thereof is given and such rules are not inconsistent with the provisions
of this Lease. Except for Landlord’s obligation to enforce the rules in a
non-discriminatory manner, nothing contained in this Lease shall be construed
as imposing upon Landlord any duty to enforce such rules or any condition or
covenant contained in any other lease against any other tenant, and Landlord
shall not be liable to Tenant for the violation of such rules or regulations by
any other tenant or its invitees.

 

ARTICLE 18 

DAMAGE OR DESTRUCTION

 

18.1           If the Premises or the Building are totally
or partially damaged or destroyed, thereby rendering the Premises totally or
partially inaccessible or unusable, then Landlord shall diligently repair and
restore the Premises and the Building to substantially the same condition they
were in prior to such damage or destruction; provided, however, that if in
Landlord’s

 

14

 

reasonable judgment such
repair and restoration cannot be completed within one hundred eighty (180) days
after the adjustment of the loss in connection with such damage or destruction,
then Landlord shall have the right, at its sole option, to terminate this Lease
by giving written notice of termination within forty-five (45) days after the
occurrence of such damage or destruction.

 

18.2           If Landlord determines, in its reasonable
judgment, that the repairs and restoration cannot be substantially completed
within one hundred eighty (180) days after the date of adjustment of the loss
in connection with such damage or destruction, Landlord shall promptly notify
Tenant of such determination. For a period of thirty (30) days after receipt of
such determination, Tenant shall have the right to terminate this Lease by
providing written notice to Landlord. If Tenant does not elect to terminate
this Lease within such thirty (30) day period, and provided that Landlord has
not elected to terminate this Lease, Landlord shall proceed to repair and
restore the Premises and the Building. Notwithstanding the foregoing, Tenant
shall not have the right to terminate this Lease if the act or omission of
Tenant or any of its Invitees shall have caused the damage or destruction.

 

18.3           If this Lease is terminated pursuant to
Section 18.1 or 18.2 above, then all rent shall be apportioned (based on the
portion of the Premises which is usable after such damage or destruction) and
paid to the date of termination. If this Lease is not terminated as a result of
such damage or destruction, then until such repair and restoration of the Premises
are substantially complete, Tenant shall be required to pay the Base Rent and
additional rent only for the portion of the Premises that is usable while such
repair and restoration are being made. Landlord shall bear the expenses of
repairing and restoring the Premises and the Building; provided, however, that
Landlord shall not be required to repair or restore any Alteration previously
made by Tenant or any of Tenant’s trade fixtures, furnishings, equipment or
personal property; and provided further that if such damage or destruction was
caused by the act or omission of Tenant or any Invitee, then Tenant shall pay
the amount by which such expenses exceed the insurance proceeds, if any,
actually received by Landlord on account of such damage or destruction.

 

18.4           Notwithstanding anything herein to the
contrary, Landlord shall not be obligated to restore the Premises or the
Building and shall have the right to terminate this Lease if (a) the holder of
any Mortgage fails or refuses to make insurance proceeds available for such
repair and restoration, (b) zoning or other applicable laws or regulations do
not permit such repair and restoration, or (c) the cost of repairing and
restoring the Building would exceed fifty percent (50%) of the replacement
value of the Building, whether or not the Premises are damaged or destroyed,
provided the leases of all other tenants in the Building are similarly
terminated.

 

18.5           Notwithstanding the foregoing Sections of
this Article 18, Landlord shall not be obligated to restore the Tenant Work
which was a part of the work required to be performed under Exhibit D attached hereto. Rather, the
restoration of such Tenant Work shall be the sole expense and responsibility of
Tenant.

 

ARTICLE 19 

CONDEMNATION

 

19.1           If (a) one-third or more of the Premises or
occupancy thereof shall be permanently taken or condemned by any governmental
or quasi-governmental authority for any public or quasi-public use or purpose
or sold under threat of such a taking or condemnation (collectively, “condemned”),
or (b) there is condemned a portion of the Premises which, in Tenant’s good
faith and reasonable determination, makes it substantially uneconomic for
Tenant to continue to conduct its business operations from or within the
Premises (an “Uneconomic Taking”), then in any such event, at the option of
Tenant (in the case of (a) or (b) above) or Landlord (in the case of (a) above)
made within thirty (30) days after the taking, this Lease shall terminate on
the date Tenant or Landlord, as applicable, elects to terminate the Lease and
rent shall be apportioned as of such date. If less than one-third of the
Premises or occupancy thereof is condemned and such condemnation does not
constitute an Uneconomic Taking, then this Lease shall continue in full force
and effect as to the part of the Premises not condemned, except that as of the
date title vests in such authority Tenant shall not be required to pay the Base
Rent and Additional Rent with respect to the part of the Premises condemned.

 

15

 

19.2           All awards, damages and other compensation
paid by such authority on account of such condemnation shall belong to
Landlord, and Tenant assigns to Landlord all rights to such awards, damages and
compensation. Tenant shall not make any claim against Landlord or the authority
for any portion of such award, damages or compensation attributable to damage
to the Premises, value of the unexpired portion of the Lease Term, loss of
profits or goodwill, leasehold improvements or severance damages. Nothing
contained herein, however, shall prevent Tenant from pursuing a separate claim
against the authority for the value of furnishings and trade fixtures installed
in the Premises at Tenant’s expense and for relocation expenses, provided that
such claim shall in no way diminish the award, damages or compensation payable
to or recoverable by Landlord in connection with such condemnation.

 

ARTICLE 20

DEFAULT

 

20.1           Each of the following shall constitute an
Event of Default: (a) Tenant’s failure to make any payment of the Base Rent,
Additional Rent or other sum on or before such payment’s due date, provided
that, on up to two (2) occasions in any twelve (12) month period, there shall
exist no Event of Default unless Tenant shall have been given written notice of
such failure and shall not have made the payment within five (5) days following
the giving of such notice; (b) Tenant’s violation or failure to perform or
observe any other covenant or condition within thirty (30) days after written
notice thereof from Landlord; (c) Tenant’s vacation or abandonment of the
Premises and failure to perform its other obligations hereunder; (d) an Event
of Bankruptcy as specified in Article 21 with respect to Tenant, any general
partner or member or managing member of Tenant (a “General Partner”) or any
Guarantor; or (e) Tenant’s dissolution or liquidation. If, prior to the
commencement of the Lease Term, Tenant notifies Landlord of or otherwise
unequivocally demonstrates an intention to repudiate this Lease, Landlord may,
at its option, consider such anticipatory repudiation an Event of Default. In
addition to any other remedies available to it hereunder or at law or in
equity, Landlord may retain all rent paid upon execution of the Lease and the
security deposit, if any, to be applied to damages of Landlord incurred as a
result of such repudiation, including without limitation attorneys’ fees,
brokerage fees, costs of reletting, and loss of rent. Tenant shall pay in full
for all tenant improvements constructed or installed within the Premises to the
date of the breach, and for materials ordered at its request for the Premises.
Notwithstanding the foregoing, in the case of a non-monetary default only, if
such an asserted default is not reasonably subject to cure within said thirty
(30) day period, and provided, that Tenant has commenced a cure within said
original thirty (30) period that is reasonably calculated to effect the cure
within a reasonable time; and, provided further, that Tenant continues to diligent
prosecute its efforts to accomplish the cure, then Tenant shall be granted an
additional reasonable time to effect the cure, it being understood that in no
event shall any period of permitted cure extend for longer than a total of
sixty (60) days, including the original thirty (30) day period

 

20.2           If there shall be an Event of Default,
including an Event of Default prior to the Rent Commencement Date, then
Landlord shall have the right, at its sole option, to terminate this Lease. In
addition, with or without terminating this Lease, Landlord may re-enter,
terminate Tenant’s right of possession and take possession of the Premises. The
provisions of this Article shall operate as a notice to quit, any other notice
to quit or of Landlord’s intention to re-enter the Premises being hereby
expressly waived. If necessary, Landlord may proceed to recover possession of
the Premises under and by virtue of the laws of the jurisdiction in which the
Building is located, or by such other proceedings, including re-entry and
possession, as may be applicable. If Landlord elects to terminate this Lease
and/or elects to terminate Tenant’s right of possession, then everything
contained in this Lease to be done and performed by Landlord shall cease,
without prejudice, however, to Landlord’s right to recover from Tenant all rent
and other sums accrued through the later of termination or Landlord’s recovery
of possession. Whether or not this Lease and/or Tenant’s right of possession is
terminated, Landlord agrees to endeavor, in good faith, to relet the Premises
or any part thereof, alone or together with other premises, for such rent and
upon such terms and conditions (which may include concessions or free rent and
alterations of the Premises) as Landlord, in its sole discretion, may
determine, but Landlord shall

 

16

 

not be liable for, nor
shall Tenant’s obligations be diminished by reason of, Landlord’s failure to
relet the Premises or collect any rent due upon such reletting. Whether or not
this Lease is terminated, Tenant nevertheless shall remain liable for any Base
Rent, Additional Rent or damages which may be due or sustained prior to such
default, all costs, fees and expenses (including without limitation reasonable
attorneys’ fees, brokerage fees and expenses incurred in placing the Premises
in first-class rentable condition) incurred by Landlord in pursuit of its
remedies and in renting the Premises to others from time to time. Tenant shall
also be liable for additional damages which at Landlord’s election shall be
either:

 

(a) an
amount equal to the Base Rent and Additional Rent which would have become due
during the remainder of the Lease Term, less the amount of rental, if any,
which Landlord receives during such period from others to whom the Premises may
be rented (other than any Additional Rent payable as a result of any failure of
such other person to perform any of its obligations), which damages shall be
computed and payable in monthly installments, in advance, on the first day of
each calendar month following Tenant’s default and continuing until the date on
which the Lease Term would have expired but for Tenant’s default. Separate
suits may be brought to collect any such damages for any month(s), and such
suits shall not in any manner prejudice Landlord’s right to collect any such
damages for any subsequent month(s), or Landlord may defer any such suit until
after the expiration of the Lease Term, in which event the cause of action
shall be deemed not to have accrued until the expiration of the Lease Term; or

 

(b) an
amount equal to the present value (as of the date of the termination of this
Lease) of the difference between (i) the Base Rent and Additional Rent which
would have become due during the remainder of the Lease Term, and (ii) the fair
market rental value of the Premises for the same period, which damages shall be
payable to Landlord in one lump sum on demand. For purpose of this Section,
present value shall be computed by discounting at a rate equal to one (1) whole
percentage point above the discount rate then in effect at the Federal Reserve
Bank of New York (or, if such rate is not reasonably available, such substitute
rate as Landlord reasonably shall select).

 

Tenant waives any
right of redemption, re-entry or restoration of the operation of this Lease
under any present or future law, including any such rights which Tenant would
otherwise have if Tenant shall be dispossessed for any cause.

 

20.3           Landlord’s rights and remedies set forth in
this Lease are cumulative and in addition to Landlord’s other rights and
remedies at law or in equity, including those available as a result of any
anticipatory breach of this Lease. Landlord’s exercise of any such right or
remedy shall not prevent the concurrent or subsequent exercise of any other
right or remedy. Landlord’s delay or failure to exercise or enforce any of
Landlord’s rights or remedies or Tenant’s obligations shall not constitute a
waiver of any such rights, remedies or obligations. Landlord shall not be
deemed to have waived any default unless such waiver expressly is set forth in
an instrument signed by Landlord. If Landlord waives in writing any default,
then such waiver shall not be construed as a waiver of any covenant or
condition set forth in this Lease except as to the specific circumstances
described in such written waiver. Neither Tenant’s payment of a lesser amount
than the sum due hereunder nor Tenant’s endorsement or statement on any check
or letter accompanying such payment shall be deemed an accord and satisfaction,
and Landlord may accept the same without prejudice to Landlord’s right to
recover the balance of such sum or to pursue any other remedy available to
Landlord. Landlord’s re-entry and acceptance of keys shall not be considered an
acceptance of a surrender of this Lease.

 

20.4           If more than one natural person and/or entity
shall execute this Lease as Tenant, then the liability of each such person or
entity shall be joint and several. Similarly, if Tenant is a general
partnership or other entity the partners or members of which are subject to
personal liability, then the liability of each such partner or member shall be
joint and several.

 

17

 

20.5           If Tenant fails to make any payment to any
third party or to do any act herein required to be made or done by Tenant, then
Landlord may, but shall not be required to, make such payment or do such act.
Landlord’s taking such action shall not be considered a cure of such failure by
Tenant or prevent Landlord from pursuing any remedy to which it is otherwise
entitled in connection with such failure. If Landlord elects to make such
payment or do such act, then all expenses incurred, plus interest thereon at a
rate per annum (the “Default Rate”) which is five (5) whole percentage points
higher than the prime rate published from time to time in the Money Rates
section of The Wall Street Journal (or, if such rate is not reasonably
available, such substitute rate as Landlord reasonably shall select), from the
date incurred to the date of payment thereof by Tenant, shall constitute
Additional Rent.

 

20.6           If Tenant fails to make any payment of the
Base Rent, Additional Rent or any other sum payable to Landlord within five (5)
days after the date such payment is due and payable, then Tenant shall pay a
late charge of five percent (5%) of the amount of such payment. In addition,
such payment and such late fee shall bear interest at the Default Rate from the
date such payment was due to the date of payment thereof.

 

ARTICLE 21 

BANKRUPTCY

 

21.1           The following shall be Events of Bankruptcy
under this Lease: (a) Tenant’s, a Guarantor’s, a General Partner’s, or a
Managing Member’s becoming insolvent, as that term is defined in Title 11 of
the United States Code (the “Bankruptcy Code”), or under the insolvency laws of
any state (the “Insolvency Laws”); (b) appointment of a receiver or custodian
for any property of Tenant, a Guarantor, a General Partner or a Managing
Member, or the institution of a foreclosure or attachment action upon any
property of Tenant, a Guarantor, a General Partner; or a Managing Member (c)
filing of a voluntary petition by Tenant, a Guarantor, a General Partner or a
Managing Member under the provisions of the Bankruptcy Code or Insolvency Laws;
(d) filing of an involuntary petition against Tenant, a Guarantor, a General
Partner or a Managing Member as the subject debtor under the Bankruptcy Code or
Insolvency Laws, which either (i) is not dismissed within thirty (30) days of
filing, or (ii) results in the issuance of an order for relief against the
debtor; or (e) Tenant’s, a Guarantor’s, a General Partner’s or a Managing
Member’s making or consenting to an assignment for the benefit of creditors or
a composition of creditors.

 

21.2           (a)                 Upon
occurrence of an Event of Bankruptcy, Landlord shall have all rights and
remedies available pursuant to Article 20; provided, however, that while a case
in which Tenant is the subject debtor under the Bankruptcy Code is pending,
Landlord shall not exercise its rights and remedies pursuant to Article 20 so
long as (i) the Bankruptcy Code prohibits the exercise of such rights and
remedies, and (ii) Tenant or its trustee in Bankruptcy (“Trustee”) is in
compliance with the provisions of Section 21.2(b).

 

(b)     If Tenant becomes the subject
debtor in a case pending under the Bankruptcy Code, then Landlord’s right to
terminate this Lease pursuant to Section 21.2(a) shall be subject, to the
extent required by the Bankruptcy Code, to any rights of Trustee to assume or
assign this Lease pursuant to the Bankruptcy Code. Trustee shall not have the
right to assume or assign this Lease unless Trustee promptly (1) cures all
defaults under this Lease, (2) compensates Landlord for monetary damages
incurred as a result of such defaults, (3) provides adequate assurance of
future performance on the part of Tenant as debtor in possession or of the
assignee of Tenant, and (4) complies with all other requirements of the
Bankruptcy Code. This Lease may be terminated in accordance with
Section 21.2(a) if the foregoing criteria for assumption or assignment are
not met, or if Tenant, Trustee or such assignee defaults under this Lease after
such assumption or assignment. Adequate assurance of future performance, as
used in this Section 21.2(b), shall mean that all of the following minimum
criteria must be met: (A) Tenant’s gross receipts in the ordinary course of
business during the thirty (30) day period immediately preceding the initiation
of the case under the Bankruptcy Code must be greater than two (2) times the
next monthly installment of the Base Rent and additional rent; (B) both the
average and median of Tenant’s monthly gross receipts in the ordinary course of
business during the six (6) month period immediately preceding the initiation
of the case under the Bankruptcy Code must be greater than two (2) times the
next monthly installment of the Base Rent and additional rent;

 

18

 

(C) Tenant must pay its
estimated pro rata share of the cost of all services performed or provided by
Landlord (whether directly or through agents or contractors and whether or not
previously included as part of the Base Rent) in advance of the performance or
provision of such services; (D) Trustee must agree that Tenant’s business shall
be conducted in a first-class manner, and that no liquidating sale, auction or
other non-first-class business operation shall be conducted in the Premises;
(E) Trustee must agree that the use of the Premises as stated in this Lease
shall remain unchanged and that no prohibited use shall be permitted; (F)
Trustee must agree that the assumption or assignment of this Lease shall not
violate or affect the rights of other tenants in the Building; (G) Trustee must
pay to Landlord at the time the next monthly installment of the Base Rent is
due, in addition to such installment, an amount equal to the monthly
installments of the Base Rent and additional rent due for the next six (6)
months thereafter, such amount to be held as a security deposit; and (H) all
assurances of future performance specified in the Bankruptcy Code must be
provided.

 

ARTICLE 22

SUBORDINATION

 

22.1           This Lease is subject and subordinate to the
lien, provisions, operation and effect of all mortgages, deeds of trust, ground
leases or other security instruments which may now or hereafter encumber the
Building or the Land (collectively “Mortgages”), to all funds and indebtedness
intended to be secured thereby, and to all renewals, extensions, modifications,
recastings or refinancings thereof. Landlord shall obtain for Tenant, however,
promptly following a request therefor from time to time, a customary
Subordination, Non-Disturbance and Attornment Agreement (“SNDA”) from the
holder/beneficiary of any Mortgage. The form of such SNDA shall be the
holder/beneficiary’s customary form (which shall be reasonable) subject to
Tenant’s reasonable comments necessary to effectuate legally the
non-disturbance agreement. The holder of any Mortgage to which this Lease is
subordinate shall have the right (subject to any required approval of the
holders of any superior Mortgage) at any time to declare this Lease to be
superior to the lien, provisions, operation and effect of such Mortgage and
Tenant shall execute, acknowledge and deliver all documents required by such
holder in confirmation thereof.

 

22.2           In confirmation of the foregoing
subordination, Tenant shall at Landlord’s request, but in no event later than
five (5) business days following a request therefor, execute and deliver any
requisite or appropriate document. Tenant waives the provisions of any statute
or rule of law now or hereafter in effect which may give or purport to give
Tenant any right to terminate or otherwise adversely affect this Lease or
Tenant’s obligations in the event any such foreclosure proceeding is prosecuted
or completed or in the event the Land, the Building or Landlord’s interest
therein is sold at a foreclosure sale or by deed in lieu of foreclosure. If
this Lease is not extinguished upon such sale or by the purchaser following
such sale, then, at the request of such purchaser, Tenant shall attorn to such
purchaser and shall recognize such purchaser as the landlord under this Lease.
Upon such attornment such purchaser shall not be (a) bound by any payment of
the Base Rent or additional rent more than one (1) month in advance, (b) bound
by any amendment of this Lease made without the consent of the holder of each
Mortgage existing as of the date of such amendment, (c) liable for damages for
any breach, act or omission of any prior landlord, or (d) subject to any
offsets or defenses which Tenant might have against any prior landlord;
provided, however, that after succeeding to Landlord’s interest, such purchaser
shall perform in accordance with the terms of this Lease all obligations of
Landlord arising after the date such purchaser acquires title to the Building.
Within fifteen (15) days after the request of such purchaser, Tenant shall
execute, acknowledge and deliver any requisite or appropriate document submitted
to Tenant confirming such attornment.

 

22.3           (a)                 After
Tenant receives notice from any person, firm or other entity that it holds a
Mortgage on the Building or the Land, no notice from Tenant to Landlord
alleging any default by Landlord shall be effective unless and until a copy of
the same is given to such holder, provided that Tenant shall have been
furnished with the name and address of such holder. Any such holder shall have
thirty (30) days after its receipt of notice from Tenant of a default by
Landlord under this Lease to cure such default before Tenant may exercise any
remedy hereunder. The curing of any of Landlord’s defaults by such holder shall
be treated as performance by Landlord.

 

19

 

(b)     In the event that any lender
providing construction interim or permanent financing or any refinancing for
the Building requires, as a condition of such financing, that modifications to
this Lease be obtained, and provided that such modifications (i) are
reasonable; (ii) do not adversely affect in a material manner Tenant’s use of
the Premises as herein permitted; and (iii) do not increase the rent and other
sums to be paid by Tenant hereunder, Landlord may submit to Tenant a written
amendment to this Lease incorporating such required changes, and Tenant hereby
covenants and agrees to execute, acknowledge and deliver to Landlord such
amendment, in form reasonably acceptable to Tenant, within fifteen (15) days of
Tenant’s receipt thereof, otherwise same shall be deemed to have been accepted
by Tenant and Tenant shall be obliged to execute and deliver said amendment to
Landlord within five (5) days after the expiration of the said fifteen (15) day
period.

 

ARTICLE 23

HOLDING OVER

 

23.1           If Tenant does not immediately surrender the
Premises upon the expiration or earlier termination of the Lease Term, then
Tenant shall become a tenant by the month and the rent shall be increased to
equal the greater of (a) fair market rent for the Premises, or (b) double the Base
Rent, Additional Rent and other sums that would have been payable pursuant to
the provisions of this Lease if the Lease Term had continued during such
holdover period. Such rent shall be computed on a monthly basis and shall be
payable on the first day of such holdover period and the first day of each
calendar month thereafter during such holdover period until the Premises have
been vacated. Landlord’s acceptance of such rent shall not constitute consent
by Landlord to Tenant’s holdover possession and shall not in any manner
adversely affect Landlord’s other rights and remedies, including Landlord’s
right to evict Tenant and to recover damages.

 

ARTICLE 24

COVENANTS OF LANDLORD

 

24.1           Landlord covenants that it has the right to
enter into this Lease and that if Tenant shall perform timely all of its
obligations hereunder, then subject to the provisions of this Lease Tenant
shall during the Lease Term peaceably and quietly occupy and enjoy the full
possession of the Premises without hindrance by Landlord or any party claiming
through or under Landlord.

 

24.2           Landlord reserves the following rights: (a)
to change the street address and name of the Building; (b) to change the
arrangement and location of entrances, passageways, doors, doorways, corridors,
elevators, stairs, toilets or other public parts of the Building; (c) to erect,
use and maintain pipes and conduits in and through the Premises; and (d) to
grant to anyone the exclusive right to conduct any particular business in the
Building not inconsistent with Tenant’s permitted use of the Premises. Landlord
shall also have the right to construct a building and/or parking lots or
garages on the property owned by Landlord adjacent to the Building and to
install connections and/or passageways linking the Building to such neighboring
building. Landlord may exercise any or all of the foregoing rights without
being deemed to be guilty of an eviction, actual or constructive, or a
disturbance of Tenant’s business or use or occupancy of the Premises. In
addition, Landlord reserves for itself the exclusive use of all portions of the
roof of the Building and all interstitial space within the buildings and
Complex.

 

ARTICLE 25

PARKING

 

25.1           During the Lease Term, Tenant shall have the
right to use the parking spaces as described in the Rider. Tenant shall not
sell, assign or permit anyone other than Tenant’s personnel to use any of the
aforesaid parking spaces, except in conjunction with a permitted assignment of
this Lease or a permitted sublease of the Premises. Tenant and its personnel
shall comply with all reasonable rules and regulations promulgated by Landlord
or Landlord’s parking

 

20

 

area manager for the
orderly functioning of the Building’s parking areas; provided however that such
rules and regulations shall not impose on Tenant any parking charges or fees
(other than maintenance costs collected as Operating Charges, and parking fees
for reserved parking spaces) for use of the parking spaces pursuant to this
Lease.

 

ARTICLE 26

GENERAL PROVISIONS

 

26.1           Tenant acknowledges that neither Landlord nor
any broker, agent or employee of Landlord has made any representations or
promises with respect to the Premises or the Building except as herein
expressly set forth, and no right, privilege, easement or license is being
acquired by Tenant except as herein expressly set forth.

 

26.2           Nothing contained in this Lease shall be
construed as creating a partnership or joint venture between Landlord and
Tenant or to create any other relationship other than that of landlord and
tenant.

 

26.3           Landlord and Tenant each warrant to the other
that in connection with this Lease neither has employed or dealt with any
broker, agent or finder, other than the Brokers identified in the Rider. Landlord
acknowledges that it shall pay any commission or fee due to the Brokers,
pursuant to the terms of the Rider or, if existent, a separate written
agreement. Landlord and Tenant shall indemnify and hold the other harmless from
and against any claim for brokerage or other commissions asserted by any
broker, agent or finder employed by Landlord or Tenant, respectively, or with
whom Landlord or Tenant, respectively, has dealt, other than the Brokers.

 

26.4           At any time and from time to time upon not
less than fifteen (15) days’ prior written notice, Tenant and each subtenant or
assignee of Tenant or occupant of the Premises shall execute, acknowledge and
deliver to Landlord and/or any other person or entity designated by Landlord,
an estoppel certificate: (a) certifying that this Lease is unmodified and in
full force and effect (or if there have been modifications, that this Lease is
in full force and effect as modified and stating the modifications); (b)
stating the dates to which the rent and any other charges have been paid; (c)
stating whether or not, to the best knowledge of Tenant, Landlord is in default
in the performance of any obligation of Landlord contained in this Lease, and
if so, specifying the nature of such default; (d) stating the address to which
notices are to be sent; (e) confirming that this Lease is subject and
subordinate to all Mortgages encumbering the Building or the Land; and (f)
certifying to such other matters as Landlord may reasonably request. Any such
statement may be relied upon by any owner of the Building or the Land, any
prospective purchaser of the Building or the Land, or any holder or prospective
holder of a Mortgage. Tenant acknowledges that time is of the essence to the
delivery of such statements and that Tenant’s delay, failure or refusal to
deliver such statements may cause substantial damages resulting from, for
example, delays in obtaining financing secured by the Building. Tenant shall be
liable for all such damages. Upon request, Tenant agrees to furnish Landlord with
copies of any 10-Q and 10-K reports filed by tenant with the Securities and
Exchange Commission. Landlord agrees, at any time and from time-to-time upon
not less than fifteen (15) days’ prior written notice, to execute and deliver
an estoppel certificate to Tenant certifying to the items referred to in
clauses (a) through (d) and (f) above.

 

26.5           Landlord,
Tenant, and all Guarantors, if any, waive trial by jury in any action,
proceeding, claim or counterclaim brought in connection with any matter arising
out of or in any way connected with this Lease, the landlord-tenant
relationship, Tenant’s use or occupancy of the Premises or any claim of injury
or damage. Tenant consents to service of process and any pleading relating to
any such action at the Premises; provided, however, that nothing herein shall
be construed as requiring such service at the Premises. Landlord, Tenant, and
all Guarantors, if any, waive any objection to the venue of any action filed in
any court situated in the jurisdiction in which the Building is located and
waive any right under the doctrine of forum non conveniens or otherwise, to
transfer any such action filed in any such court to any other court. The
Landlord, Tenant and all Guarantors further hereby agree that the Lease shall be
governed by the laws of the State of Florida, and that the venue for any
action, proceeding or counterclaim brought by either party

 

21

 

against
the other on any matters whatsoever arising out of or in any way connected with
the Lease or Guaranty shall be in Palm Beach County, Florida. The Tenant
expressly and affirmatively acknowledges and agrees that the execution of this
Lease and performance of the obligations contained herein, constitute doing
business in Florida for purposes of long-arm jurisdiction. The Tenant further
consents and agrees that the courts located in Palm Beach County, Florida,
shall have jurisdiction over the Tenant in connection with any action or
actions commenced to enforce this Lease.

 

26.6           All notices or other required communications
hereunder shall be in writing and shall be deemed duly given when delivered in
person (with receipt therefor), or when sent by Express Mail or overnight
courier service (provided a receipt will be obtained) or by certified or
registered mail, return receipt requested, postage prepaid, to the following
addresses: (i) if to Landlord, care of T-Rex Management Company, 5000 T-Rex
Avenue, #100, Boca Raton, Florida 33431, with a copy to William S. Weisman,
Esquire, Mandel, Weisman, Heimberg, Brodie & Griffin, P.A., 2102 Corporate
Boulevard, Suite 300, Boca Raton, Florida 33431; (ii) if to Tenant, at the
Tenant Address for Notices identified in the Rider. Either party may change its
address for the giving of notices by notice given in accordance with this
Section. If Landlord or the holder of any Mortgage notifies Tenant that a copy
of each notice to Landlord shall be sent to such holder at a specified address,
then Tenant shall send (in the manner specified in this Section and at the same
time such notice is sent to Landlord) a copy of each such notice to such
holder, and no such notice shall be considered duly sent unless such copy is so
sent to such holder.

 

26.7           Each provision of this Lease shall be valid
and enforceable to the fullest extent permitted by law. If any provision of
this Lease or the application thereof to any person or circumstance shall to
any extent be invalid or unenforceable, then such provision shall be deemed to
be replaced by the valid and enforceable provision most substantively similar
to such invalid or unenforceable provision, and the remainder of this Lease and
the application of such provision to persons or circumstances other than those
as to which it is invalid or unenforceable shall not be affected thereby.

 

26.8           Feminine, masculine or neuter pronouns shall
be substituted for those of another form, and the plural or singular shall be
substituted for the other number, in any place in which the context may require
such substitution.

 

26.9           The provisions of this Lease shall be binding
upon and inure to the benefit of the parties and each of their respective
representatives, successors and assigns, subject to the provisions herein
restricting assignment or subletting.

 

26.10     This Lease contains the entire agreement of the
parties hereto and supersedes all prior agreements, negotiations, letters of
intent, proposals, representations, warranties, understandings and discussions
between the parties hereto. Any representation, inducement, warranty,
understanding or agreement that is not contained in this Lease shall be of no
force or effect. This Lease may be modified or changed in any manner only by an
instrument duly signed by both parties.

 

26.11     This Lease shall be governed by and construed in
accordance with the laws of the jurisdiction in which the Building is located.

 

26.12     Article and section headings are used for
convenience and shall not be considered when construing this Lease.

 

26.13     The submission of an unsigned copy of this document
to Tenant shall not constitute an offer or option to lease the Premises. This
Lease shall become effective and binding only upon execution and delivery by
both Landlord and Tenant.

 

26.14     Time is of the essence of each provision of this
Lease.

 

26.15     This Lease may be executed in multiple
counterparts, each of which shall be deemed an original and all of which
together constitute one and the same document.

 

22

 

26.16     This Lease shall not be recorded, except that upon
the request of Landlord. Tenant agrees to execute, in recordable form, a
short-form memorandum of this Lease, provided that such memorandum shall not
contain any of the specific rental terms set forth herein. Such memorandum may
be recorded in the land records of the jurisdiction in which the Building is
located at Landlord’s cost.

 

26.17     Except as otherwise provided in this Lease, any
Additional Rent or other sum owed by Tenant to Landlord, and any cost, expense,
damage or liability incurred by Landlord for which Tenant is liable, shall be
considered Additional Rent payable pursuant to this Lease and paid by Tenant no
later than ten (10) days after the date Landlord notifies Tenant of the amount
thereof and supplies reasonable back-up with respect thereto.

 

26.18     Tenant’s liabilities existing as of the expiration
or earlier termination of the Lease Term shall survive such expiration or
earlier termination. Similarly, Landlord’s obligation to refund to Tenant the
excess, if any, of the amount of Tenant’s estimated payments on account of
increases in Operating Charges and Real Estate Taxes for the last calendar year
falling wholly or partly within the Lease Term over Tenant’s actual liability
therefor shall survive the expiration or earlier termination of the Lease Term.

 

26.19     If either Landlord or Tenant is in any way delayed
or prevented from performing any of their respective obligations under this
Lease (other than Tenant’s obligations to pay Base Rent and Additional Rent
hereunder) due to fire, act of God, governmental act or failure to act, strike,
labor dispute, inability to procure materials or any other cause beyond
Landlord’s or Tenant’s reasonable control, as may apply (whether similar or
dissimilar to the foregoing events), then the time for performance of such
obligation shall be excused for the period of such delay or prevention and
extended for a period equal to the period of such delay or prevention.

 

26.20     Tenant represents that the person executing and
delivering this Lease on Tenant’s behalf is duly authorized to so act.
Simultaneously with the execution of this Lease, Tenant shall deliver to
Landlord certified copies of any corporate resolution or partnership consent
necessary to evidence the due execution of this Lease on Tenant’s behalf, or a
letter of Tenant’s General Counsel confirming such authorization and that
execution and delivery of this Lease is in the ordinary course of Tenant’s
business.

 

26.21     This Lease includes and incorporates the Rider and
all Exhibits attached hereto.

 

26.22     This Lease shall, for purposes of applicable law,
be deemed a deed of lease executed under seal.

 

26.23     For so long as there is a cafeteria service in the
Complex, Tenant acknowledges and agrees that it may not open or operate a
cafeteria or food service of any nature within its Premises, and shall not
import food or food products within the Premises without Landlord’s consent,
which may be granted, denied or conditioned in Landlord’s sole and absolute
discretion, provided however that Tenant may utilize coffee machines, toaster
and microwave ovens, and other kitchen items for Tenant’s employee’s use only.
Tenant may obtain food service (on a twenty four hour per day, seven day a week
basis) by direct arrangement with the cafeteria operator (it being understood
that Landlord is making no representation or warranty that such service will be
available at all times on a twenty four hour per day, seven day a week basis).

 

26.24     Special Events. The Tenant shall not, without the
prior written consent of the Landlord, schedule, advertise or undertake any
public exposition, promotion or other type of special event at the Premises.
Any approval of the Landlord to a special event may include, but not be limited
to, at the Landlord’s option, to conditions such as guidelines for traffic and
pedestrian control, security, parking and other considerations in the interest
of maintaining the health and safety for both the Tenant’s invitees as well as
that of other tenants, all at Tenant’s cost and expense. In addition, the
Landlord may, in its sole discretion, require the Tenant to have

 

23

 

delivered a bond by a
surety acceptable to Landlord to guaranty any financial undertakings of any
indemnification.

 

26.25     If Tenant has a lease for other space in the
Building, an Event of Default by Tenant under such lease will constitute a
default hereunder.

 

26.26     Submission of this Lease to Tenant does not
constitute an offer, and this Lease becomes effective only upon execution and
delivery by both Landlord and Tenant.

 

26.27     The Tenant shall submit to Landlord annually, not
later than one hundred twenty (120) days after either (i) its 10K report or
(ii) fiscal year end, annual audited financial statements.

 

26.28     In the event of any litigation under this Lease the
prevailing party will be reimbursed by the non-prevailing party for all
reasonable attorneys’ fees and out-of-pocket costs, including through all
appellate actions and proceedings, and excluding bankruptcy proceedings.

 

26.29     Carpooling, Mass Transit and Traffic Control

 

Tenant
acknowledges that, due to the nature and size of the Complex, Landlord may be
required by applicable governmental authorities to participate in, and require
tenants to participate in, carpool programs, mass transit programs, flexible
shift and other flexible time programs, and other traffic reduction programs
and measures. Tenant agrees to participate in and comply with such programs and
measures required by applicable governmental authorities or agreed to by
Landlord with respect to the Complex or Building.

 

26.30     Association. The Complex and the Building in which
the Premises are located may be subject to a Declaration of Restrictive
Covenants, Easements and Conditions (the “Declaration”) which shall govern
certain matters with respect to the development, management and maintenance of
the Complex and Building and to satisfy requirements with respect to surface
water management, drainage and other aspects of the Complex. The Declaration
shall provide for the creation of a property owner’s association (“Association”)
to perform certain management, operational and maintenance obligations pursuant
thereto. The Association will have the authority to levy fees and assessments
against the Complex, including the Building, to pay for the obligations of the
Association. This Lease is subject to the Declaration, upon the recordation of
the Declaration, and to the rights of the Association pursuant thereto.
Additionally, fees and assessments of the Association paid by the Landlord
shall be deemed Operating Expenses for the purpose of determining Overhead
Rent. Notwithstanding the foregoing, in no event shall any cost assessed
against Tenant under this Section exceed, during any year, an amount equal to
ten percent (10%) of the Operating Charges otherwise assessed against Tenant
under this Lease.

 

26.31     Vending Machines. No Tenant shall obtain, or accept
for use in the Premises, vending machines or pay telephones, or other similar
services from any persons other than those specifically designated by Landlord
to offer or distribute such services.

 

26.32     Confidentiality. Landlord and Tenant acknowledge
that the terms and provisions of this Lease have been negotiated based upon a
variety of factors, occurring at a coincident point in time, including, but not
limited to: (i) the individual principals involved and the financial strength
of Tenant, (ii) the nature of Tenant’s business and use of the Premises, (iii)
the current leasing market place and the economic conditions affecting rental
rates, (iv) the present and projected tenant mix of the Building, and (v) the
projected juxtaposition of tenants on the floor(s) upon which the Premises are
located and the floors within the Building. Therefore, recognizing the
totality, uniqueness, complexity and interrelation of the aforementioned
factors, the Tenant agrees to use its commercially reasonable efforts not to
disseminate in any manner whatsoever, (whether by word of mouth, mechanical
reproduction, physical tender or by any manner of visual or aural transmission
or review) the terms and conditions of this Lease to third parties who could in
any way be considered presently or in the future as prospective tenants for
this or any other leasehold property with which Landlord may be involved.

 

24

 

Additionally,
Tenant agrees that information concerning the Landlord and T-Rex Corporate
Center @ Boca (previously the Blue Lake Project) and the financial and other
terms of this Lease, are confidential and proprietary information and Tenant
agrees that it will not duplicate or disclose any such information to any
person in any manner unless such duplication, use, or disclosure is
specifically authorized by Landlord in writing. Confidential and proprietary
information is not meant to include any information that is in the public
domain. In addition, Tenant agrees to keep the financial terms and conditions
as contained herein confidential, with the following exceptions:

 

A. Tenant may
disclose the contents of this Lease to its accountants, advisors, potential
investors and other third parties similarly situated (“Recipient”), and shall
notify such Recipients of the confidentiality provisions contained herein; and

 

B. Tenant may
disclose such information as required by court order.

 

C. Tenant may
disclose such information as required by the securities laws and other laws and
regulations of the United States of America.

 

D. Tenant shall
issue no press release or statement to the media regarding this Lease without
the Landlord’s prior approval, which approval shall not be unreasonably
withheld.

 

The word “Tenant”
shall include the officers, employees, directors and representatives of Tenant,
and Tenant covenants and agrees to exercise its commercially reasonable efforts
to cause such persons to comply with the terms hereof. Tenant shall be liable
for the failure of any such person to comply therewith unless Tenant can
demonstrate by clear and convincing evidence that it has exercised best efforts
to do so and that, notwithstanding such commercially reasonable efforts,
compliance has not been achieved.

 

26.33     Incentive Programs. Tenant acknowledges advice from
Landlord that Landlord may, from time to time, apply for various loans, grants
and/or other incentive programs (“Incentive Programs”), which may enhance the
value of the Complex. It is anticipated that certain applications for
solicitations may require a tenant or other possessor of portions of the
Building to be the applicant, co-applicant or participating party in applying
for and/or securing the Incentive Program(s). Within five (5) business days of
Landlord’s request, Tenant shall, at Landlord’s expense execute, to the extent
required as to any Incentive Program, any and all applications, petitions
and/or other documentation in support of Incentive Program. In any instance in
which an Incentive Program is applied for and secured, Tenant hereby
irrevocably assigns and quit-claims to Landlord any and all rights and interests
which Tenant may claim in and to any benefits or proceeds of the Incentive
Programs. The assignment contained in the immediately preceding sentence is
self-effectuating without need for further confirmation to be effective;
however, at the request of Landlord, Tenant shall execute and deliver such
assignment(s), confirmations with supporting documentation as may from
time-to-time be required by Landlord in furtherance of this Section. Landlord
covenants with Tenant that Tenant shall not incur any liability or obligation
by virtue of or associated with the application, processing or any
participation in the securing of any Incentive Program. Tenant further agrees
that, except that to the extent necessary in processing any application for
Incentive Programs that all information received by Tenant or any employee,
shareholder, attorney, accountant or other party acting by, through or under
Tenant shall and remain confidential as proprietary information owned and
reserved solely by Landlord the dissemination of which without prior approval
of Landlord shall constitute an Event of Default under this Lease. Landlord may
exclusively, and, its sole option, prepare a memorandum of this Section which
shall be executed by Tenant upon request of Landlord, and at no cost to Tenant,
and which may be recorded in the public records of Palm Beach County, Florida.

 

26.34     Saving Provision. If any provision of this Lease,
or its application to any situation shall be invalid or unenforceable to any
extent, the remainder of this Lease, or the application thereof to situations
other than that as to which it is invalid or unenforceable, shall

 

25

 

not be affected thereby
and every provision of this Lease shall be valid and enforceable to the fullest
extent permitted by law.

 

26.35     Examination Not Option. Submission of this Lease
shall not be deemed to be a reservation of the Premises. Neither Tenant nor
Landlord shall be bound by this Lease until each has received a copy of this Lease
duly executed by Tenant and has delivered to Tenant a copy of this Lease duly
executed by Landlord, and until such delivery Landlord reserves the right to
exhibit and lease the Premises to other prospective tenants. Notwithstanding
anything to the contrary, Landlord may withhold delivery of possession of the
Premises from Tenant until such time as Tenant has paid to Landlord all sums
required to be paid by Tenant by the initial date of delivery.

 

26.36     Relocation of Tenant.

 

A. General. Recognizing that the Building is
large and the needs of tenants as to space may vary from time to time, and in
order for Landlord to accommodate Tenant and prospective tenants, Landlord
expressly reserves the right, prior to and/or during the Lease Term, but not
more than once per the Lease Term, at Landlord’s sole expense, to move Tenant
from the Premises and relocate Tenant in other space of Landlord’s choosing of
approximately the same dimensions and size within the Building (or additions to
the Building or new construction related to the Building or the campus in which
Building is located), which other space will be decorated by Landlord at its
expense. Landlord shall pay all costs of such relocation. Landlord may use
decorations and materials from the existing Premises, or other materials, so
that the space in which Tenant is relocated will be comparable in its interior
design and decoration to the space from which Tenant is removed.

 

B. No Interference. During the relocation
period Landlord will use reasonable efforts not to unduly interfere with Tenant’s
business activities and Landlord agrees to substantially complete the
relocation within a reasonable time under all then existing circumstances.

 

C. Premises. This Lease and each of its terms
and conditions will remain in full force and effect and be applicable to any
such new space and such new space will be deemed to be the Premises demised
hereunder; upon request Tenant will execute such documents which may be
requested to evidence, acknowledge and confirm the relocation (but it will be
effective even in the absence of such confirmation).

 

D. Costs. Landlord’s obligation for expenses
of removal and relocation will be the actual cost of relocating and decorating
Tenant’s new space and Tenant’s reasonable moving and relocation expenses, and
Tenant agrees that Landlord’s exercise of its election to remove and relocate
Tenant will not release Tenant in whole or in part from its obligations
hereunder for the full Lease Term. No rights granted in this Lease to Tenant,
including the right of peaceful possession and quiet enjoyment, will be deemed
breached or interfered with by reason of Landlord’s exercise of the relocation
right reserved herein.

 

E.
Release/Waiver. Provided that Landlord complies with its
obligation under this Section 20, Tenant acknowledges and agrees that Tenant's
relocation shall not release Tenant, in whole or in part, from its obligations
hereunder for the full Lease Term. Provided that Landlord complies with its
obligations under this Section 20, no rights granted in this Lease to Tenant,
including the right of peaceful possession and quiet enjoyment, will be deemed
breached or interfered with by reason of Landlord’s exercise of the right to
relocate Tenant as herein reserved.

 

F.
Notice. If Landlord exercises its relocation right under this
paragraph, (i) Tenant will be given ninety (90) days prior notice in writing
and (ii) Landlord will reimburse Tenant for the reasonable cost of telephone
relocation necessitated by the exercise of said right of relocation.

 

26

 

IN
WITNESS WHEREOF, Landlord and Tenant have executed this
Lease, under seal, as of the day and year first above written.

 

	
   

  	
   

  	
  Landlord:

  
	
   

  	
   

  	
  BOCA
  TECHNOLOGY CENTER, LLC,

  a Florida limited liability company

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  T-Rex
  Boca Owners Corp, a Florida

  corporation, its Managing Member

  
	
  Witness:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Clifford J.
  Preminger

  	
   

  
	
  /s/ Cheryl A.

  	
   

  	
   

  	
   

  	
   

  	
  Clifford
  J. Preminger

  
	
   

  	
   

  	
   

  	
   

  	
  Its
  President

  
	
  /s/ Simpson

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
  Tenant:

  
	
   

  	
   

  	
  LIFEWATCH
  HOLDING CORPORATION, a

  
	
   

  	
   

  	
  Delaware
  corporation, authorized to do business

  in Florida

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Maria, Murray

  	
   

  	
   

  	
  By:

  	
  /s/ Michael Turchi

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael Turchi

  	
   

  
	
  /s/ Illegible

  	
   

  	
   

  	
  Title:

  	
  V. P. of FINANCE

  	
   

  
								

 

27

 

EXHIBIT A

THE COMPLEX

 

 

 

Exhibit A-1

“Building”

 

 

 

EXHIBIT B-1

THE PREMISE

 

 

 

EXHIBIT C

TENANT IMPROVEMENTS

 

 

 

EXHIBIT “D”

 

WORK LETTER AGREEMENT

 

 

In the event of any inconsistencies between this Agreement and the
Lease dated currently herewith to which this Agreement is attached as Exhibit “D”,
this Agreement shall control. Capitalized terms used in this Agreement shall,
unless otherwise specifically set forth herein, have the same meanings as in
the Lease.

 

1.       Landlord
shall complete or cause the completion of improvements to the Premises as shown
on the Final Plans (defined below) and as more fully described in this Section
(the “Work”). Landlord shall retain an architect and engineer to prepare
complete and detailed architectural plans and specifications, and structural,
mechanical and engineering plans and specifications, showing the Work
(collectively, the “Construction Plans”). Subject to the Landlord’s
Contribution for Tenant Improvements, the cost of the Construction Plans shall
be the responsibility of Tenant. The Work shall meet or exceed the minimum
standards for the Work (“Minimum Building Materials and Construction”) attached
hereto as Exhibit “D-1” and otherwise as determined by Landlord in its
reasonable discretion. It is the intent of the parties that Exhibit “D-1” set
forth the minimum quality of the Work, however, Exhibit “D-1” shall not be
construed to require any particular quantity of the items described therein
except to the extent required by applicable codes or laws. The Construction
Plans shall be consistent with all applicable laws, codes, ordinances and
regulations, including but not limited to the Americans with Disabilities Act
of 1990, of governmental and quasi-governmental entities having jurisdiction
regarding the Work and/or the Building.

 

The Construction Plans
shall include, but not be limited to, indication or identification of the
following:

 

A.        locations
and structural design of all floor area requiring live load capacities in
excess of 150 pounds per square foot;

 

B.         the density of occupancy in large work
areas;

 

C.         areas
requiring 24-hour air conditioning, Tenant’s supplemental air-conditioning
units (if any), and electrical consumption submeters if required by Landlord;
chilled water requirements and tonnage; air conditioning access doors at the
fire dampers.

 

D.         location of rooms for telephone
equipment;

 

E.         locations
and types of plumbing, if any, required for toilets (other than core
facilities), sinks, drinking fountains, etc;

 

F.         light switching of offices, conference
rooms, etc;

 

G.         layouts
for specially installed equipment, including computers, size and capacity of
mechanical and electrical services required and heat projection of equipment;

 

H.         dimensioned
location of: (a) electrical receptacles (120 volts), including receptacles for
wall clocks, and telephone outlets and their respective locations (wall or
floor), (b) electrical receptacles for use in the operation of Tenant’s
business equipment which requires 208 volts or separate electrical circuits,
(c) electronic calculating, CRT systems, etc., and (d) special audio-visual
requirements, (e) total load requirements and phasing for items (a) through
(d), inclusive;

 

I.          special
fire protection equipment and raised flooring where permitted by Building
systems and otherwise approved by Landlord;

 

J.          reflected
ceiling plan;

 

K.         information
concerning air conditioning loads, including, but not limited to, air volume
amounts at all supply vents;

 

L.         non-building
standard ceiling heights and/or materials;

 

M.        materials,
colors and designs of wall coverings and finishes;

 

N.         painting
and decorative treatment required to complete all construction;

 

O.         swing
of each door;

 

P.         a
schedule for doors (including dimensions for undercutting of doors to clear carpeting)
and frames complete with hardware; and

 

Q.         all
other information necessary to make the work complete and in all respects ready
for operation.

 

2.         Landlord shall deliver complete
Construction Plans to Tenant for Tenant’s review. Tenant shall review the
Construction Plans within ten (10) business days of submission of complete
Construction Plans. Tenant shall reimburse

 

 

Landlord for reasonable
architect, engineer and other professional fees incurred by Landlord in
connection with review of the Construction Plans and Revisions. However, (i)
Tenant may use Landlord’s Contribution, if provided for in the BLI Rider, for
such reimbursement, and (ii) reimbursement shall be limited to customary rates.

 

3.         As used herein, “Final Plans” refers to
the Construction Plans after the same have been completed and approved in
writing by Landlord. The Landlord Contribution to cost of construction, if any,
is set forth in the BLI Rider. Tenant shall be responsible for the cost of any
revisions to the Final Plans (“Revisions”). Landlord shall obtain, or cause to
be obtained, all necessary governmental permits and commence and pursue
construction of the Work contemplated by the Final Plans, substantially in
accordance with the Final Plans. If applicable, the Final Plans shall include
all information necessary to reflect Tenant’s requirement for the installation
of any supplemental air conditioning system and ductwork, electrical, plumbing
and other mechanical systems and all work necessary to connect any special or
non-standard facilities to the Building’s base mechanical, electrical and
structural systems, all of which shall be at Tenant’s cost.

 

A.        Performance of Work.
The Work shall be constructed in a good and workmanlike manner substantially in
accordance with the Construction Plans. Landlord for good cause shall have the
right to require Tenant to terminate any construction work at any time being
performed by or on behalf of Tenant in the Premises, and to require that any
contractor or subcontractor, or any employee of same, leave the Building. Upon
written notification, setting forth in reasonable detail such good cause, from
Landlord to Tenant to cease any work, Tenant shall forthwith remove from the
Premises all agents, employees and contractors of Tenant performing such work
until such time as Landlord shall have given its written consent for the
resumption of such construction work (such consent not to be unreasonably
withheld or delayed), and Tenant shall have no claim for damages of any nature
whatsoever against Tenant in connection therewith.

 

B.         Change Orders.
Tenant shall obtain Landlord’s written approval prior to the undertaking of any
construction work by Tenant which deviates from or modifies in a substantial
manner from the Final Plans. Should Tenant or Tenant’s contractor request or
desire to make any substantial changes to the Final Plans, Tenant shall submit
same to Landlord for its approval in writing.

 

C.         Insurance.
During the course of construction, Tenant or any contractor or sub-contractor
acting by or through Tenant shall provide builder’s risk insurance equal to the
replacement cost of any improvements being constructed, naming Landlord as an
additional insured as its interests may appears, and owners and contractors
protective liability insurance in an amount of not less than $3,000,000. In
addition, Tenant shall maintain the insurance required pursuant to the Lease.

 

D.         Building Rules and
Regulations. During the course of construction, Tenant and any contractor
or subcontractor acting by or through Tenant shall comply with the Building
rules and regulations relating to construction within the Building. Attached to
the Lease as Exhibit “E” are such rules and regulations, which Tenant and any
contractor or sub-contractor acting by and through Tenant, shall initial and
cause to be posted during the course of construction.

 

E.         Notice of
Commencement. Tenant agrees not to cause or permit any construction or work
to commence construction and shall not disburse any funds to any contractor,
subcontractors, sub-subcontractors, materialmen and laborers until a Notice of
Commencement is recorded pursuant to Chapter 713.13 of the Florida Statutes, a
certified copy of such Notice of Commencement has been posted on the
construction site, and an Affidavit of such posting is furnished to Landlord.
Such Notice of Commencement shall not be recorded without Landlord’s prior
written consent to the form and content of same which shall not be unreasonably
withheld or delayed. The form of the Notice of Commencement shall be in
accordance with Exhibit “D-2” attached hereto. Landlord shall be named on the
Notice of Commencement to receive copies of Notices to Owner. Landlord may
desire to inquire and communicate directly with various parties named in
statements provided to Landlord by Tenant and Contractor or those parties who
give a Notice to Owner. Tenant hereby authorizes Landlord to make such
inquiries and authorize those parties to furnish the information required by
Landlord.

 

F.         Liens. Pursuant
to the provisions of the Florida Construction Lien Law (Chapter 713) and this
Lease, the interest of the Landlord shall not be subject to the liens for
improvements made by the Tenant, Contractor, any subcontractor,
sub-subcontractor, materialman, supplier or laborer, and the Lease is hereby
deemed to expressly prohibit such liability. Tenant agrees to notify any
contractor, subcontractors, sub-subcontractors, materialmen, laborers and
suppliers doing Work for Tenant on the Premises of this provision.

 

G.         Landlord’s
Contribution. Landlord’s contribution, to the extent provided for in the
BLI Rider, may be utilized and accessed only for structural matters
incorporated in the final plans. Landlord’s Contributions shall specifically
exclude any personalty, equipment or cosmetic work in the Premises.
Notwithstanding anything to the contrary contained herein, Tenant acknowledges
that Landlord is merely providing the Landlord’s Contribution as an incentive
for Tenant to enter into this Lease and Landlord is not in any way acting as a
contractor or as any other party with respect to construction of the Work, and
further, that neither the Landlord nor the Building are liable for, nor stand
as security for the claims or liens of any contractor, subcontractors,
sub-subcontractors, materialmen, laborers and other third parties, hired by or
on behalf of the Tenant.

 

4.         Tenant shall have the right to make
Revisions from time to time after Final Plans have been prepared. All
Revisions, of a substantial nature (i.e., those that are material, structural
or mechanical in nature) shall be subject to Landlord’s prior written approval,
which shall not be unreasonably withheld or delayed. Landlord shall either
approve or disapprove such Revisions within five (5) business days after
submission thereof by Tenant. Without limiting the generality of the foregoing,
no Revision will be approved unless (a) all changes to and modifications from
the Final Plans are circled or highlighted as per standard practices and (b)
said Revisions conform with the requirements of this Work Letter. The cost of
any Revisions shall be borne solely by Tenant and the Revisions shall not delay
the Rent Commencement Date hereunder.

 

 

5.         Landlord shall endeavor to notify
Tenant of the date of Substantial Completion at least three (3) days prior
thereto. As used herein, “Substantial Completion” shall mean that, with the
exception of punch-list items, the Work shall have been completed in accordance
with the Final Plans and all mechanical systems serving or affecting the
Premises shall then be in working order. Landlord and Tenant shall thereupon
set a mutually convenient time for Tenant’s Construction Agent and Landlord or
Landlord’s Consultant to inspect the Premises. Upon completion of the
inspection, Tenant’s Construction Agent shall acknowledge in writing that
Substantial Completion has occurred.

 

6.         Tenant shall be responsible for payment
of all charges, costs and expenses for bringing electrical services to the
Premises and paying for any electric services, equipment and devices, utilized
in constructing or otherwise implementing Tenant Improvements at Tenant’s sole
expense. Tenant shall likewise be responsible for the calibration of all
breakers utilized in the construction of Tenant Improvements. Any sourcing of
electricity other than from the Premises shall be subject to the reasonable
approval of Landlord or the Energy Manager whose prescriptions for utilization
shall be adhered to in the interest of safety.

 

 

EXHIBIT D-1

 

TO WORK LETTER AGREEMENT

 

1.        PARTITIONS

 

(A)     Demising Walls:

One hour fire
rated construction (unless otherwise required by code due to existing
conditions), full height from floor slab to underside of upper deck, 3-5/8” 25
gauge (or as structurally required for height to underside of upper deck) steel
studs spaced per code requirements, 3-1/2” fiberglass batt insulation for sound
attenuation full height of wall, Type “X” 5/8” gypsum board, taped and finished
2” above ceiling height ready to receive finishes, and fire taped to the
underside of the upper deck. Construction to include both sides of wall.

(B)      Interior Partitions:

Non-rated wall
construction, framed above ceiling height 2”, or to ceiling height (with zip
bead), 3-5/8” 25 gauge steel studs spaced per code requirements, minimum 5/8”
gypsum board, taped and finished ready to receive finishes.

(C)      Interior Face of Concrete/Masonry Walls:

Non-rated wall
construction, furred above ceiling height 2”, furring strips spaced per
applicable code, minimum 5/8” gypsum board, taped and finished ready to receive
finishes. No alterations or changes to exterior wall without the written
consent of the Landlord.

 

2.        DOORS

 

(A)     Interior Entry Doors:

(i). Main Entry:
C-Label fire rated door, 3’-0” X 8’-0” X 1-3/4”, two flush solid core wood,
paint grade, steel frame.

(ii). Secondary
Entry: same as above. Landlord to review for access to mechanical systems and
door requirements. Doors to be recessed within the tenant space.

(B)      Exterior Entry Doors:

Two flush glass
and aluminum non-label doors, 3’-0” X 8’-0”, with aluminum frame.

(C)      Interior Doors:

Solid core wood, 3’-0” X
7’-0”, paint grade, hollow metal frame. Match existing for spaces re-using
existing doors.

 

3.        HARDWARE

 

(A)     Interior Entry Doors:

Three (3) pair
Hager BB1279 4.5” X 4.5” US 26D finish hinges, Lever lockset Schlage “D” series
Athens model with US 26D finish and to have top and bottom flush bolts with
threshold and weatherstrips, two door closers LCN Smooth Series with US 26D
finish, two door stoppers model IVES 435/436 and eight door silencers model
IVES 20.

(B)      Exterior Entry Doors:

Three (3) pair
Hager BB1279 4.5” X 4.5” US 26D finish hinges, Lever lockset Schlage “D” series
Athens model with US 26D finish and to have top and bottom flush bolts with
threshold and weatherstrips, two door closers LCN Smooth Series with US 26D
finish, two door stoppers model IVES 435/436 and eight door silencers model
IVES 20.

(C)      Interior Doors:

Three (3) Hager BB1279
4.5” X 4.5” US 26D finish hinges, Lever latchset Schlage “D” series Athens
model with US 26D finish, one door stopper model IVES 435/436 and four door
silencers model IVES 20.

(D)      Tenant shall provide one entry keyed to
the Landlord’s building master key (see building engineer) that entry shall be
the closest door to the fire alarm control panel.

 

4.        CEILINGS

 

For new
construction: 2’ X 2’ Armstrong Cortega #704 regular edge ceiling tile with 15”
X 16” white metal grid at 9’-0” above finish floor.

Existing
construction: Match existing.

 

5.        FLOORING

 

(A)     Carpet:

Shaw, Lotus or
equivalent 26 ounce commercial grade textured loop pile direct glue down carpet
in work areas and offices. Vinyl base.

(B)      Vinyl (VCT) tiles in kitchen areas.

(C)      Ceramic tiles (4” X 4”) in bathrooms.

 

6.        FINISHES

 

(A)     Paint B Walls primed first coat, latex
based paint single color.

(B)      Window Treatments are to be mini-blinds,
white, Levelor, to match existing. The Y-buildings (001, 002, 031, 032, 003,
005) shall be vertical blinds Satiqe-off white/3522.

(C)      No wallcoverings to be used on exterior
masonry/concrete walls.

 

 

7.        MECHANICAL

 

(A)     Controls:

All thermostats
and other controls to match existing controls (Johnson Controls, Robert-Shaw,
see Building Engineer).

(B)                  Variable Air
Volume Box:

Match existing VAV
(Trane, Carrier)

(C)                  Registers,
Grills:

MetalAire white
perforated air diffuser series 7000 Model PCS-CB-5 (4-way) all 24” X 24”.

(D)                 Ductwork:

Ducting shall be 24 gauge
sheet metal construction with appropriate connections and hangers as per code
for high pressure systems. Ductboard can be used for low-pressure systems,
including the drops. Match existing shall be code compliant.

 

8.         ELECTRICAL

 

(A)     Light Fixtures:

2’ X 4’ three-tube
recessed parabolic fluorescent fixture with electronic ballast and T-8 lamps or
match/re-use existing lighting.

(B)                 Light Switches:

Toggle type single
pole single throw switch.

(C)                 Exit Lights:

Battery backup
and/or emergency lighting circuit direct wired. Installed per code.

(D)     Receptacles:

Wall mounted
duplex at 110 volts 20 amp rating at 16” above finish floor as per code.

(E)      Telephone:

Modular wall mounted
outlets with pull string conduit stubbed above ceiling with pull-string.
Conduit (size as required) shall be supplied from telephone room to leased
space.

(F)      Power:

Electric to be
individually metered.

 

9.        PLUMBING

 

Common area restrooms as
per existing. New bathrooms and/or renovation of existing bathrooms as below
and are to be ADA compliant:

 

(A)     Toilet Partitions:

Plastic laminate
(solid color) with 1-1/4” thick panels and 5’-10” high floor-mounted with
stainless steel hardware.

(B)                  Vanity Top:

Plastic laminate
solid color with ADA compliant design.

(C)                  Water Closet:

Wall-mounted,
American Standard

(D)                 Lavatory - H:

Wall-mounted
accessible fixture (American Standard) with wrist blade handled faucet.

(E)      Lavatory B S:

Where applicable,
counter-mounted oval lavatory (American Standard)

(F)      Urinal:

Wall-mounted
urinal, where applicable.

(G)      Break Room Sink:

22x18 stainless
steel sink, Elkay

(H)      Provide fixture count as required by
applicable code, with accessible fixtures as required.

 

Per applicable code for
ADA and density requirements.

 

10.      LIFE SAFETY SYSTEMS

 

(A)     Fire alarm panel to be Thorn AutoCall
AL-1500.

Approved fire
alarm contractor is WSA Systems, Inc., contact Brad Golub (954) 570-8155.

(B)      Fire Sprinkler system per code

 

11.      EXTERIOR ENTRIES

 

All exterior entries to
be per approved style as attached. Landlord to review.

 

(A)     Y-building entries.

(B)      Flex building entries.

(C)      Building 021/022/023/042 west face
entries.

 

12.       ARCHITECTURAL STANDARDS

 

(A)     Drawing standards.

(B)      CAD storage maintenance standards.

 

 

13.       S1GNAGE

 

(A)     Exterior signage to be submitted by tenant
and approved in writing by Landlord.

(B)      Interior signage package to be submitted
by tenant and approved in writing by Landlord.

(C)      Temporary
directional signage: tenant to submit to Landlord a signage package. Landlord
to review and approve in writing.

 

14.       CABINETRY

 

(A)     Cabinetry
is limited to a 30” accessible base cabinet with adjacent counter and 6”
backsplash in the Break area, where applicable. All cabinetry to have plastic
laminate finish.

 

15.       RESTROOM ACCESSORIES

 

Restrooms, where
applicable, shall be provided with wall-mounted stainless steel accessories
(H/C accessible where required), including:

 

(A)     Mirror

(B)      Soap dispenser

(C)      Toilet paper dispenser

(D)      Paper towel dispenser

(E)      Grab rails where required

 

16.       OTHER

 

(A)     Any exterior details, modifications,
temporary signage, posters, banners, etc., to be reviewed and approved in
writing by Landlord prior to installation.

 

 

EXHIBIT D-2

FORM OF NOTICE OF COMMENCEMENT

(Landlord Work Letter)

 

	
  Permit No.

  	
   

  	
   

  
	
  Tax Folio No.

  	
   

  	
   

  
				

 

NOTICE OF COMMENCEMENT

 

STATE
OF FLORIDA

COUNTY OF PALM BEACH

 

The undersigned
hereby gives notice that improvement will be made to certain real property, and
in accordance with Chapter 713, Florida Statutes, the following information is
provided in this Notice of Commencement.

 

1.        Description of property: (legal description of the property,
and street address if available)

 

See Exhibit A attached hereto and made a part
hereof.

 

2.        Owner Information:

 

	
   

  	
  a.

  	
  Name and Address:

  	
   

  	
  Boca Technology Center, LLC

  5000 T-Rex Avenue

  Boca Raton, Florida 33431

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Telephone Number:

  	
   

  	
  (561) 997-1111

  

 

3.        Leaseholder Information:

 

	
   

  	
  a.

  	
  Name and Address:

  	
   

  	
  LifeWatch Holding Corporation

  4800 T-Rex Avenue, Suite 130

  Boca Raton, Florida 33431

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  Interest in Property:

  	
   

  	
  Unrecorded Leasehold

  

 

c.         Lien Prohibition: This Notice of Commencement is being filed
on behalf of the herein identified leaseholder. The leaseholder has no interest
in the underlying Premises, whether fee simple or otherwise, except as a Tenant
under Lease. The Lease specifically provides a prohibition against the liening
of any interest of Owner, whether personally or in the Premises, or in the
underlying land or Building of which the Premises are a part by virtue of
improvements made by or on behalf of Tenant pursuant to the provisions of
Florida Statute § 713.10. Owner has also filed in the Public Records of Palm
Beach County a Notice of Lien Prohibition pursuant to the provisions of Florida
Statute § 713.10

 

4.        General description of improvement:

 

Tenant’s build-out of
leasehold improvements to a portion of 4800 T-Rex Avenue, Suite 130, Boca
Raton, Florida, pursuant to Work Letter Exhibit to Lease between Owner and
LifeWatch Holding Corporation, constituting approximately 6,118 rentable square
feet.

 

5.        Contractor (name and address):

 

a.         Name and address:

 

b.        Fax Number:

 

6.        Surety

 

a.         Name and address: N/A

 

b.        Phone Number:

 

c.         Fax Number: (optional, if service by fax is acceptable).

 

d.        Amount of bond:               $

 

7.        Lender: (name and address)

 

a.         Name and address:

 

b.        Fax Number: (optional, if service by fax is acceptable).

 

 

8.        Persons within the State
of Florida designated by Owner upon whom notices or other documents may be served
as provided by Section 713.13(1)(a)7., Florida Statutes. (name and address)

 

Boca Technology
Center, LLC

5000 T-Rex Avenue

Boca Raton, Florida 33431

Att: Joan Stavola,

 

9.        In addition to himself,
Owner designates                                                  
(name)                                         
(address) to receive a copy of the Lienor’s Notice as provided in Section
713.13(1)(b), Florida Statutes.

 

10.      Expiration date of notice
of commencement: Six (6) months from the date of recordation.

 

	
   

  	
   

  	
  BOCA TECHNOLOGY CENTER,
  LLC, a Florida

  limited liability company

  
	
   

  	
   

  	
  By: T-REX BOCA
  OWNERS CORP., a Florida

  corporation, its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Joan E. Stavola

  	
   

  
	
   

  	
   

  	
   

  	
        Joan
  E. Stavola

  	
   

  
	
   

  	
   

  	
   

  	
        Its
  Vice President

  	
   

  
						

 

Sworn to and
subscribed before me this 3 day of September, 2003, by Joan E. Stavola, as Vice
President of T-REX BOCA OWNERS CORP., a Florida corporation, its Managing
Member BOCA TECHNOLOGY CENTER, LLC, a Florida limited liability company, who is
personally known to me or who has furnished a                                    
for identification.

 

 

	
   

  	
   

  	
  /s/ Linda W. Hilton

  	
   

  
	
   

  	
   

  	
  Notary Public

  My Commission Expires:

  

 

	
   

  	
   

  	
   

  	
  [SEAL]

  	
  Linda W. Hilton

  Commission #DD214253

  Expires: Jun 18, 2007
            Bonded Thru

  Atlantic Bonding Co., Inc.

  

 

 

EXHIBIT E

RULES AND REGULATIONS

 

This Exhibit is
attached to and made a part of that certain Lease Agreement dated as of the             
day of August, 2003, (the “Lease”), by and between BOCA TECHNOLOGY CENTER,
L.L.C. (“Landlord”) and LIFEWATCH HOLDING CORPORATION, a Delaware corporation,
authorized to do business in Florida (“Tenant”).

 

The following
Rules and Regulations have been formulated for the safety and well-being of all
tenants of the Building and to ensure compliance with all municipal and other
requirements. Strict adherence to these Rules and Regulations is necessary to
guarantee that each and every tenant will enjoy a safe and unannoyed occupancy
in the Building in accordance with the Lease. Any continuing violation of these
Rules and Regulations by Tenant, after notice from Landlord, shall be deemed to
be an Event of Default under the Lease.

 

Landlord may, upon
request by any tenant, waive the compliance by such tenant to any of these
Rules and Regulations, provided that (i) no waiver shall be effective unless
signed by Landlord or Landlord’s authorized agent, (ii) any such waiver shall
not relieve such tenant from the obligation to comply with such Rule and
Regulation in the future unless expressly consented to by Landlord, (iii) no
waiver granted to any tenant shall relieve any other tenant from the obligation
of complying with the Rules and Regulations unless such other tenant has
received a similar waiver in writing from Landlord, and (iv) any such waiver by
Landlord shall not relieve Tenant from any obligation or liability of Tenant to
Landlord pursuant to the Lease for any loss or damage occasioned as a result of
Tenant’s failure to comply with any such Rule or Regulation.

 

1.     The
sidewalks, entrances, passages, courts, elevators, vestibules, stairways,
corridors, halls and other parts of the Building not occupied by any tenant
shall not be obstructed or encumbered by any tenant or used for any purpose
other than ingress and egress to and from the Premises, and if the Premises are
situated on the ground floor of the Building, then Tenant shall, at its own
expense, keep the sidewalks and curbs directly in front of the Premises clean
and free from ice and snow. Landlord shall have the right to control and
operate the public portions of the Building and the facilities furnished for
common use of the tenants in such manner as Landlord deems best for the benefit
of the tenants generally. No tenant shall permit the visit to the Premises of
persons in such numbers or under such conditions as to interfere with the use
and enjoyment by other tenants of the entrances, corridors, elevators and other
public portions or facilities of the Building.

 

2.     No awnings or other
projections shall be attached to any wall of the Building without the prior
written consent of Landlord. No drapes, blinds, shades or screens shall be
attached to or hung in, or used in connection with, any window or door of the
Premises, without the prior written consent of Landlord. Such awnings,
projections, curtains, blinds, shades, screens or other fixtures must be of a
quality, type, design and color, and attached in the manner, approved by
Landlord.

 

3.     No showcases or other
articles shall be put in front of or affixed to any part of the exterior of the
Building, nor placed in the halls, corridors or vestibules without the prior
written consent of Landlord.

 

4.     The water and wash closets
and other plumbing fixtures shall not be used for any purposes other than those
for which they were constructed, and no sweepings, rubbish, rags, chemicals,
paints, cleaning fluids or other substances shall be thrown therein. All
damages resulting from any misuse of the fixtures shall be borne by the tenant
who, or whose servants, employees, agents, visitors or licensees, shall have
caused the same.

 

5.     There shall be no marking,
painting, drilling into or in any way defacing the Building or any part of the
Premises visible from public areas of the Building. Tenant shall not construct,
maintain, use or operate within the Premises any electrical device, wiring or
apparatus in connection with a loud speaker system or other sound system,
except as reasonably required for its communication system and approved prior
to the installation thereof by Landlord. No

 

E-1

 

 

such loudspeaker
or sound system shall be constructed, maintained, used or operated outside of
the Premises.

 

6.     No bicycles, vehicles,
animals, birds or pets of any kind shall be brought into or kept in or about
the Premises, and no cooking (except for hot-plate or microwave cooking by
Tenant’s employees for their own consumption, the equipment for and location of
which are first approved by Landlord) shall be done or permitted by any tenant
on the Premises. No tenant shall cause or permit any unusual or objectionable
odors to be produced upon or to permeate from the Premises.

 

7.     The use of the Premises by
each tenant was approved by Landlord prior to execution of the Lease and such
use may not be changed from the Permitted Use without the prior approval of
Landlord. No space in the Building shall be used for manufacturing of goods for
sale in the ordinary course of business, for the storage of merchandise for
sale in the ordinary course of business or for the sale at auction of
merchandise, goods or property of any kind.

 

8.     No tenant shall make any
unseemly or disturbing noises or disturb or interfere with occupants of the
Building or neighboring buildings or Premises or those having business with
them whether by the use of any musical instrument, radio, talking machine,
unmusical noise, whistling, singing or in any other way. No tenant shall throw
anything out of the doors or windows or down the corridors or stairs.

 

9.     No flammable, combustible
or explosive fluid, chemical, asbestos or other hazardous substance or any
other material harmful to tenants of the Building shall be brought, installed
in or kept upon the Premises. No space heaters, fans or individual air
conditioning units may be used in the Premises. Any electrical or extension
cords deemed to be a fire hazard by Landlord in Landlord’s sole discretion
shall be removed.

 

10.  No additional locks or bolts
of any kind shall be placed upon any of the doors or windows by any tenant nor
shall any changes be made in existing locks or the mechanism thereof. The doors
leading to the corridors or main halls shall be kept closed during business
hours except as they may be used for ingress or egress. Each tenant shall, upon
the termination of its tenancy, restore to the Landlord all keys of stores, offices,
storage and toilet rooms either furnished to, or otherwise procured by, such
tenant, and in the event of the loss of any keys so furnished, such tenant
shall pay to Landlord the cost thereof.

 

E-2

 

EXHIBIT F

Offer Space

 

 

 

SCHEDULE 4.2 

WIRE TRANSFER INSTRUCTIONS

 

	
  BANK NAME:

  	
   

  	
  PNC Bank

  
	
   

  	
   

  	
   

  
	
  CREDIT NAME:

  	
   

  	
  Boca Technology/Midland Loan Services

  
	
   

  	
   

  	
   

  
	
  RFERENCE:

  	
   

  	
  Boca Technology Center

  
	
   

  	
   

  	
   

  
	
  ACCOUNT #:

  	
   

  	
  1015527352

  
	
   

  	
   

  	
   

  
	
  ABA#:

  	
   

  	
  043 000 096

  

 

 

 

SCHEDULE 5.1(b)

TENANT’S OPERATING CHARGES

 

Operating Charges
shall mean all costs and expenses incurred by Landlord in the ownership and
operation of the Building, including all of the following: (1) electricity,
gas, water, sewer and other utility charges with respect to the operation of
common areas of the Building; (2) premiums and other charges for insurance
(including, but not limited to, property insurance, rent loss insurance and
liability insurance); (3) all market rate management fees incurred in the
management of the Building; (4) all costs incurred in connection with service
and maintenance contracts; (5) maintenance and repair expenses and supplies;
(6) amortization (calculated over the useful life of the improvement, with
interest at Landlord’s cost of funds or [if the improvement is not financed] at
the prime rate reported in The Wall Street Journal) for capital expenditures
which have been approved by Tenant or which are made by Landlord for the
purpose of complying with legal or insurance requirements or that are intended
to result in a net decrease in Operating Charges (hereinafter referred to as “Qualified
Capital Expenditures”); (7) salaries, wages, benefits and other expenses of
Building personnel; (8) legal fees (except as excluded below), administrative
expenses, and accounting, architectural and other professional fees and
expenses; (9) costs of any service not provided to the Building on the Lease
Commencement Date but thereafter provided by Landlord in the prudent management
of the Building; (10) charges for concierge, security, janitorial, char and
cleaning services and supplies furnished to the Building; (11) costs associated
with the provision or operation of any common facilities and service amenities;
(12) the cost of maintaining management, engineering and/or maintenance offices
in the Building (including the fair market rental value of the space devoted to
such uses); (13) any business, professional and occupational license tax paid
by Landlord with respect to the Building; (14) any personal property tax
payable with respect to Landlord’s property located at the Building that is
used in connection with the maintenance, repair, or operation of the Building;
and (15) any other expense incurred by Landlord in maintaining, repairing or
operating the Building and related property. Operating Charges shall not
include the following:

 

(i)        Principal payments or interest payments
on any mortgage, other debt costs and ground rent payments on any ground lease.

 

(ii)       Leasing commissions paid by Landlord.

 

(iii)      Cost of repair or other work occasioned by
fire, windstorm or other casualty, or by condemnation, to the extent reimbursed
by insurance proceeds or condemnation award, and any other costs of items for
which Landlord receives reimbursement from a third party.

 

(iv)     Costs incurred due to renovating,
decorating, redecorating or otherwise improving space for tenants in the
Building.

 

(v)      Costs of correcting latent defects (not
standard repairs) during the initial warranty period after construction. All
repairs and replacements resulting from ordinary wear and tear, use, fire,
casualty, vandalism and other matters shall not be deemed to be latent
construction defects.

 

(vi)     Landlord’s costs of electricity and other
services sold to particular tenants which services are not standard for the
Building and for which Landlord is entitled to reimbursement by such particular
tenants.

 

(vii)    Depreciation and amortization of the
Building or any fixtures or improvements therein.

 

(viii)   Expenses in connection with services or other
benefits of a type which are not standard for the Building and which are not
available to Tenant without specific charge therefor, but which are provided to
another tenant or occupant and for which such other tenant or occupant is
specifically charged by Landlord.

 

(ix)      Costs, penalties, fines and associated
legal expenses incurred due to violation by Landlord or any tenant in the
Building of the terms of any applicable federal, state or

 

2

 

local government laws,
codes or similar regulations that would not have been incurred but for any such
violations by Landlord, it being intended that each party shall be responsible
for costs resulting from its own violation of such laws, codes and regulations as
the same shall pertain to the Building. Notwithstanding the foregoing, interest
or penalties incurred in connection with assessments or taxes which are
reasonably contested by Landlord shall be included as an acceptable Operating
Charge.

 

(x)       Costs of Landlord’s general overhead and
general administrative expenses (individual, partnership or corporate, as the
case may be), which costs would not be chargeable to operating expenses of the
Building in accordance with generally accepted accounting principles,
consistently applied.

 

(xi)      Any compensation paid to clerks,
attendants or other persons in commercial concessions (such as snack bar or
restaurant), if any, operated by Landlord.

 

(xii)     All items and services for which Tenant or
any other building tenant specifically reimburses Landlord.

 

(xiii)    Legal fees in connection with leasing,
tenant disputes or enforcement of leases,

 

(xiv)    Capital expenditures, except Qualified
Capital Expenditures.

 

(xv)     Costs of overtime HVAC service whether
provided to the Tenant or any other tenant of the Building.

 

(xvi)    Costs of repairing, replacing or otherwise
correcting defects (including latent defects) in or inadequacies of (but not
the costs of ordinary and customary repair for normal wear and tear) the
initial design or construction of the Building.

 

(xvii)   Allowances, concessions, permits, licenses,
inspections and other costs and expenses incurred in completing, fixturing,
renovating or otherwise improving, decorating or redecorating space for tenants
(including Tenant), prospective tenants or other occupants of the Building, or
vacant leasable space in the Building, or constructing or finishing demising
walls and public corridors with respect to any such space.

 

(xviii)  Any amount specifically required to be paid by
Landlord to Tenant under this Lease, and any cost or expense (A) which is due
to Landlord’s negligence or willful misconduct, (B) which is incurred pursuant
to any Landlord indemnification and/or hold harmless provision, or (C) which is
a result of any breach of this Lease or any other lease for space in the
Building.

 

(xix)    Costs incurred in connection with the sale,
financing, refinancing, mortgaging, selling or change of ownership of the Land
or Building.

 

(xx)     Costs, fines, interest, penalties, legal fees
or costs of litigation incurred due to the late payments of utility bills and
other costs of operating the Building incurred by Landlord’s failure to make
such payments when due.

 

(xxi)    All amounts which would otherwise be
included in Operating Charges which are paid to any affiliate or subsidiary of
Landlord, or any representative, employee or agent of same, to the extent the
costs of such services exceed the competitive rates for similar services of
comparable quality rendered by persons or entities of similar skill, competence
and experience. It is hereby acknowledged by Tenant that the management fee in
the amount of 5% of gross rentals to be paid to an affiliate of Landlord is a
competitive, market rate fee.

 

(xxii)       Increased insurance premiums caused by
Landlord’s or any other tenant’s hazardous acts.

 

(xxiii)      Moving expense costs of tenants of the
Building.

 

3

 

(xxiv)       Advertising, public relations and
promotional costs associated with the promotion or leasing of the Building, and
costs of signs in or on the Building identifying the owners of the Building or
any tenant of the Building.

 

(xxv)        Costs incurred to correct violations by
Landlord of any law, regulation, rule, order or ordinance which was in effect
as of the Lease Commencement Date.

 

(xxvi)       Non-cash items, such as interest on
capital invested, bad debt losses, rent losses and reserves for such losses.

 

(xxvii)      Electric power costs for which any tenant
directly contracts with the local public service company.

 

In the event a single
expenditure pays for the provision of a good or service to both the Building
and any neighboring building owned by Landlord, then Operating Charges of the
Building shall include only the portion of such payment that is equitably
allocable to the Building, as reasonably determined by Landlord.

 

4

 

EXHIBIT “F”

LEASE GUARANTY

 

FOR VALUE
RECEIVED, and in consideration for and as an inducement to Boca Technology
Center, LLC, a Florida limited liability company, as LANDLORD to enter into
that certain lease dated September 3, 2003 (the “LEASE”), for approximately
5,538 square feet of net rentable area known as Suite Number 130 in the 4800
Building of the T-REX CORPORATE CENTER @ BOCA (the “PREMISES”) to LIFEWATCH
HOLDING CORPORATION, a Delaware corporation authorized todo business in Florida, as TENANT, the
undersigned, INSTROMEDIX, INC., an Oregon corporation (the “GUARANTOR”), does
hereby guaranty to LANDLORD the punctual payment of the Base Rent and
Additional Rent and all other charges (hereinafter collectively called “RENTS”)
and the due performance of all the other terms, covenants and conditions
contained in said LEASE on the part of the TENANT to be paid and/or to be
performed thereunder. If any default shall be made by the TENANT under said
LEASE, the GUARANTOR does hereby covenant and agree to pay to the LANDLORD in
each and every instance such sum or sums of money as the TENANT is and shall
become liable for and/or obligated to pay under said LEASE and/or fully to
satisfy and perform such other terms, covenants and conditions of said LEASE on
the part of the TENANT to be performed thereunder and, provided LANDLORD is the
prevailing party in any such action, to pay also any and all damages, expenses
and attorneys fees (hereafter collectively called “DAMAGES”) that may be
suffered or incurred by LANDLORD in consequence of the nonpayment of said RENTS
or the nonperformance of any such other terms, covenants and conditions of said
LEASE. Provided, however, that LANDLORD shall pay the GUARANTOR’s attorney’s
fees and expenses in any such action where the GUARANTOR is the prevailing
party. Such payments of RENTS to be made monthly or at such other intervals as
the same shall or may become payable under said LEASE, including any
accelerations thereof, such performance of said other terms, covenants and
conditions to be made when due under said LEASE and such DAMAGES to be paid
when incurred by LANDLORD, all without requiring any notice from LANDLORD or
proof of notice or demand, all of which the GUARANTOR hereby expressly waives.

 

The maintenance of
any action or proceeding by the LANDLORD to recover any sum or sums that may be
or become due under said LEASE, or to secure the performance of any of the
other terms, covenants and conditions of said LEASE or to recover damages,
shall not preclude the LANDLORD from thereafter instituting and maintaining
subsequent actions or proceedings for any subsequent default or defaults of
TENANT under said LEASE. The GUARANTOR does hereby consent that, without
affecting the liability of the GUARANTOR under this Guaranty and without notice
to the GUARANTOR, time may be given by LANDLORD to TENANT for payment of RENTS
and performance of said other terms, covenants and conditions, or any of them,
and such time extended and indulgences granted, from time to time, or the
TENANT may be dispossessed or the LANDLORD may avail itself of or exercise any
or all of the rights and/or remedies against the TENANT provided by law or by
said LEASE, and may proceed either against the TENANT alone or jointly against
the TENANT and the GUARANTOR or against the GUARANTOR alone without proceeding
against the TENANT. The GUARANTOR does hereby further consent to any subsequent
change, modification and/or amendment of said LEASE in any of its terms,
covenants or conditions, or in the RENTS payable thereunder, and/or to any
assignment or assignments of said LEASE, and/or to any renewals or extensions
thereof, all of which may be made without notice to or consent of the GUARANTOR
and without in any manner releasing or relieving the GUARANTOR from liability
under this Guaranty.

 

The GUARANTOR does
hereby further agree that in respect of any payments made by the GUARANTOR
hereunder, the GUARANTOR shall not have any rights based on suretyship or
otherwise to

 

 

stand in the place of
LANDLORD so as to compete with LANDLORD as a creditor of TENANT, unless and
until all claims of LANDLORD under said LEASE shall have been fully paid and satisfied.

 

The GUARANTOR
acknowledges receipt of valuable consideration received in its undertaking of
this LEASE in that the GUARANTOR is an affiliated, sister company of TENANT. It
is further acknowledged by the GUARANTOR that the LEASE herein guaranteed by
the GUARANTOR is of benefit and value to the GUARANTOR and would not have been
negotiated or consummated by LANDLORD without this LEASE Guaranty being
executed and delivered by the GUARANTOR. As a further inducement to LANDLORD to
make said LEASE and in consideration therefor, LANDLORD and the GUARANTOR
hereby agree that in any action, proceeding or counterclaim brought by either
LANDLORD or the GUARANTOR against the other on any matters whatsoever arising
out of or in any way connected with said LEASE or this Guaranty, that LANDLORD
and the GUARANTOR shall and do hereby waive trial by jury.

 

The GUARANTOR
further hereby agrees that the LEASE and this GUARANTY shall be governed by the
laws of the State of Florida, and that the venue for any action, proceeding or
counterclaim brought by either party against the other on any matters
whatsoever arising out of or in any way connected with said LEASE or this
Guaranty, shall be in Palm Beach County, Florida. GUARANTOR hereby waives any
objection to the venue of any action filed in any court situated in Palm Beach
County, Florida and waives any right under the doctrine of forum non conveniens
or otherwise, to transfer any such action filed in any such court to any other
court. The GUARANTOR expressly and affirmatively acknowledges and agrees that
the execution of this Guaranty
and performance of the obligations contained herein, constitute doing business
in Florida for purposes of long-arm jurisdiction. The GUARANTOR further
consents and agrees that the courts located in Palm Beach County, Florida,
shall have jurisdiction over the GUARANTOR in connection with any action or
actions commenced to enforce the LEASE or this GUARANTY.

 

This Guaranty and
any of the provisions hereof cannot be modified, waived or terminated, unless
in writing, signed by the parties hereto. The provisions of this Guaranty shall
apply to and bind and inure to the benefit of the GUARANTOR and LANDLORD and
their respective heirs, legal representatives, successors and assigns. In any
suit or action under this Guaranty, the prevailing party shall be entitled to
payment of all attorneys’ fees incurred in connection with enforcing this
Guaranty including, without limitation, fees at the trial and all appellate
levels.

 

 

IN WITNESS
WHEREOF, the GUARANTOR has executed, or caused to be executed, this Guaranty on
September 3, 2003.

 

	
  WITNESSES:

  	
   

  	
  GUARANTOR:

  CARD GUARD AG, a corporation formed

  under the laws of Switzerland, and

  authorized to do business in the State of Florida

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Maria Murry

  	
   

  	
  By:

  	
  /s/ Michael Turchi

  	
   

  
	
  Print Name:

  	
  Maria Murry

  	
   

  	
  Name:

  	
  Michael Turchi

  	
   

  
	
   

  	
   

  	
  Title:

  	
  V. P. of Finance

  	
   

  
	
  /s/ Joane Stavola

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name: 

  	
  Joane Stavola

  	
   

  	
   

  	
   

  	
   

  
									

 

 

Basic Lease Information
Rider

T-Rex
Corporate Center @ Boca Raton

 

The terms of this
Basic Lease Information Rider (“Rider”) contain fundamental information
relating to the Lease, many of the principal economic terms, the commencement
dates, and related obligations. The Rider, the Standard Provisions to Lease and
Exhibits attached thereto are, by this reference, hereby incorporated into one
another, and taken together shall be referred to as the Lease. Terms defined
herein apply both for the purpose of this Rider and the Lease. Capitalized
terms that are defined in the Lease have the same meaning when used in this
Rider. In the event of any conflict between the terms of the Rider and the
terms of the Standard Provisions to Lease, the terms of the Rider shall
control.

 

1.         Date
of Lease:          September
3, 2003 (“Effective Date”).

 

2.         Landlord:          Boca Technology Center, LLC,
a Florida limited liability company.

 

3.         Tenant:          LifeWatch Holding Corporation, a Delaware
corporation, authorized to do business in Florida

 

4.         Complex
and Building:          The
improvements to the real property described and depicted on Exhibits A and A-1.

 

5.         Premises:

 

A.       The Premises are shown on
Exhibit B-1 attached to the Lease.

 

B.        From
and after the Delivery Date as hereinafter defined, Tenant shall have access to
the Premises twenty-four (24) hours per day, seven (7) days per week. Tenant
shall obtain, in advance and at its own cost, all permits and approvals
required from any municipal or governmental authority necessary for it to use
and occupy the Premises for Tenant’s intended purposes. Landlord’s prior written
approval, not to be unreasonably withheld, shall be obtained with respect to
the specific equipment Tenant desires to place in the Premises. Tenant
acknowledges that Landlord may have reserved certain risers, pads, roof
locations, and similar areas of the Building for lease to tenants who have in
excess of building standard need for such areas.

 

6.         Rentable
Area:         The
Rentable Area of the Premises consists of 5,538 rentable square feet located in
Suite 130 in Building 4800. Prior to the Commencement Date, Landlord shall
cause its architect to measure the Premises and the Building to determine the
total rentable square footages contained therein. Such measurement shall be
completed in compliance with the “Modified BOMA Standard” (the “BOMA Measurement”).
To the extent the Premises contains more or less than 5,538 rentable square
feet of space (including a 15% add-on factor for common areas), as determined
under the BOMA Measurement, the square footage of the Premises shall be
adjusted accordingly, and the Base Rent, Tenant’s Share, the Tenant Improvement
Allowance and all other matters which are determined, calculated or otherwise
affected by the rentable square footage of the Premises shall be adjusted
accordingly. The Landlord and Tenant shall execute a written lease amendment to
confirm the changes. The term “Modified BOMA Standard” as used in this Lease
shall mean the American National Standard Method of Measuring Floor Area in
Office Buildings of the Building Owners and Managers Association International
(ANSI Z65.1-1980; reaffirmed 1989 and approved June 21, 2989, including the
questions and answers section). In the event of a renewal of the lease it is
agreed that a re-measurement may, in the discretion of Landlord, be made in
accordance with the provisions described in this Paragraph 6.

 

7.         Proportionate Share:           Tenant’s
Proportionate Share is a fraction, stated in decimal terms, the numerator of
which is the Rentable Area of the Premises and the denominator of which is
1,770,600. Tenant’s Proportionate Share is agreed to be 0.313

 

1

 

8.         Lease Commencement Date and Delivery
Date:    The Effective Date of the Lease shall
be the date upon which both Landlord and Tenant have executed the Lease. The
Lease Commencement Date shall be the later of (a) January 1, 2004, or (b) the
date of substantial completion of the Tenant Improvements (as herein defined)
and issuance of a Certificate of Occupancy from the City of Boca Raton.

 

9.         Rent Commencement Date:   The
Rent Commencement Date shall be sixty (60) days after the Lease Commencement
Date. Notwithstanding the foregoing, in the event the Lease Commencement Date
is delayed as a result of a “Tenant Delay” the Rent Commencement Date shall be
sixty (60) days after the date the Lease Commencement Date would have occurred
but for the Tenant Delay. For purposes of this Section 9, “Tenant Delay” shall
mean a failure of Tenant to comply with the obligations of Tenant on the Work
Letter attached as Exhibit D to the Lease, or Tenant requested changes or
revisions to the Final Plans after approval, or any act or omission of Tenant
which has the result of delaying commencement or completion of the Tenant
Improvements. On the Rent Commencement Date it is agreed that Tenant shall
commence payment of the Base Rent and its Proportionate Share of Operating
Charges, Real Estate Taxes and other Additional Rent, plus state and local
sales taxes, as applicable, without abatement or set-off.

 

10.       Expiration Date:     The
last day of the calendar month which is sixty two (62) months after the Lease
Commencement Date.

 

11.       Lease Term:   From the Lease
Commencement Date to the Expiration Date, unless extended or sooner terminated
in accordance with the Lease.

 

12.       Base Rent: Beginning on the Rent
Commencement Date, Tenant shall pay Base Rent in the amount of $12.50 per
rentable square foot, or Sixty Nine Thousand Two Hundred Twenty Five and 00/100
Dollars ($69,225.00) per annum, payable to Landlord in twelve (12) equal monthly
installments of Five Thousand Seven Hundred Sixty Eight and 75/100 Dollars
($5,768.75), plus applicable sales taxes and local taxes (“Base Rent”). During
the Lease Term, on the anniversary date of the Rent Commencement date, the Base
Rent for the ensuing year shall be, without further notice thereof, increased
annually by three percent (3%) over the Base Rent for the Lease Year just
concluded, and the monthly installments shall be adjusted in conformity
therewith.

 

13.       Additional Rent:    Additional
Rent consists of Tenant’s Proportionate Share of the sum of Operating Charges,
the Real Estate Taxes and any other expenses passed through to Tenant under the
Lease, as more fully set forth in Article 5 of the Lease.

 

14.       Operating Charges:   As
described in Article 5 of the Lease.

 

15.       Real Estate Taxes:     As
described in Article 5 of the Lease.

 

16.       Prepaid Rent and Security Deposit
Paid/Guaranty:      Upon execution
hereof Tenant shall deliver to Landlord an amount equal to Sixteen Thousand Six
Hundred Thirty Two and 46/100 Dollars ($16,632.46) (first and last month’s Base
Rent and Additional Rent, inclusive of sales tax), as prepaid rent. The amount
of $8,316.23 shall be applied to the first month of Base Rent and Additional
Rent due hereunder. In addition Tenant shall tender cash or a letter of credit
in form satisfactory to Landlord from a lending institution acceptable to
Landlord, in an amount equal to Twenty Four Thousand Nine Hundred Forty Eight
and 69/100 Dollars ($24,948.69) (three months Base Rent and Additional Rent,
inclusive of sales tax). The letter of credit shall remain in place throughout
the Lease Term, shall be renewable thirty (30) days prior to the date same
shall terminate, and shall be callable by Landlord without further call in the
event Tenant shall fail to deliver to Landlord a notice of renewal of said
letter of credit by not later than thirty (30) days prior to the termination of
said existing letter. The letter of credit shall, among other things, secure
the faithful performance of Tenant’s obligations under the Lease. The terms of
the letter of credit substituted in lieu of a cash security deposit shall
otherwise be governed by the terms of Article 12 of the Standard Provisions to
Lease. Additionally, Tenant’s obligations under the Lease shall be guaranteed
by Card Guard AG and Instromedix, Inc., by execution of Guaranties in the form
attached hereto as Exhibit F.

 

2

 

17.       Use of Premises:     Tenant
may use the Premises for general office use and must be in compliance with the “LIRP”
zoning classification currently in place.

 

18.       Parking Spaces:      Tenant’s
use of parking during the Lease term shall be subject to the requirements of
Article 25 of the Standard Provisions to Lease, and in accordance with the City
of Boca Raton Code of Ordinances (the “Code”) parking requirements, providing
for 3 parking spaces per 1,000 square feet of space. Landlord has current
parking modification plans which contemplate the addition of new surface parking
spaces.

 

19.       Tenant’s Address for Notices:

 

LifeWatch, Inc.

4800 T-Rex Avenue, Suite 130
Boca Raton, Florida 33431

 

20.       Tenant’s Representative For Build-Out

 

21.       Tenant’s Approved Contractor (from Landlord’s Approved
List)

 

22.       Broker(s):    Tenant
acknowledges that it has dealt with no real estate broker or other person or
firm which may claim a commission or fee in connection with this Lease other
than CB Richard Ellis, Inc. (the Landlord’s broker) and Insignia/ESG (the
Tenant’s broker) and that this provision is subject to Section 26.3 of the
Standard Provisions to Lease.

 

23.       Tenant Improvements:      Landlord
shall complete, at Landlord’s expense up to $138,450.00 ($25.00 per square foot
of the Premises) (the “Landlord’s Contribution”) the improvements as set forth
on the space plan attached hereto as Exhibit
C (the “Tenant Improvements”), which shall be completed with
Building standard materials, and include 2’x 4’ lay-in ceiling tile, carpet,
paint, fluorescent lighting, partitioning and doors and frames for five
offices/conference room/reception area, and standard electrical power. If the
hard and soft costs of the Tenant Improvements, including without limitation
architectural and permit fees, are less than $25.00 per square foot, Tenant may
use the difference between the actual costs and $25.00 per square foot, for
upgrades to the Premises, including millwork and cabinetry. Except for
completion of the Tenant Improvements as set forth herein, Tenant accepts the
Premises “as is” and acknowledges that Landlord shall have no obligation to
perform any other work relating to tenant improvements within the Premises.

 

24.       Management.    The
Building shall be professionally managed for Landlord by a management company
(which may be affiliated with Landlord) selected by Landlord.

 

25.       Tenant Execution and Delivery.     Notwithstanding
anything to the contrary herein or in the Lease, Tenant expressly covenants and
agrees that the execution and delivery of this Rider and the Lease by Tenant
constitutes an offer by Tenant to lease the Premises on the terms and
conditions stated in the Rider and Lease, and that Tenant may not withdraw this
offer to lease unless Landlord fails to execute and deliver fully executed
counterparts of the Rider and Lease on or before 5:00 pm (EST), September
      , 2003. Tenant acknowledges that execution
of this Lease by Landlord is subject to the written approval of Landlord’s
lender, which approval shall be obtained within sixty (60) days after the Lease
is fully executed by Landlord and Tenant. If such approval is not obtained
within said sixty (60) day period, Tenant may, at its option, terminate the
Lease, and all parties shall be relieved from any obligations arising
thereunder.

 

26.       Landlord Testing.     It
is understood and agreed that from time-to-time and at any time, Landlord may
test building equipment, including but not limited to stand-by electric power
equipment and facilities, and Landlord shall not be liable in the event of any
temporary interruption of service arising from or relating to such testing.

 

3

 

27.       Option
to Terminate.    Tenant shall have the option
(the “Termination Option”) to cancel this Lease at the end of the thirty-sixth
(36th) month (the “Termination Date”); provided that (a) the Tenant
shall not be in default under the Lease, beyond any applicable notice and cure
period, at the time of giving of the Termination Notice, or on the Termination
Date; (b) the Tenant shall not have assigned or sublet any portion of the
Premises; (c) the Tenant shall give written notice to Landlord at least six (6)
months prior to the Termination Date (the “Termination Notice”), and (d)
simultaneous with Tenant’s delivery of the Termination Notice Tenant shall
deliver to Landlord, in certified funds, the Termination Fee as hereinafter
defined. The Termination Fee shall be the aggregate value of the following: (i)
the unamortized value of the Tenant Improvement costs, plus (b) the unamortized
value of real estate brokerage/leasing commissions incurred by Landlord with
respect to this Lease, plus (c) a sum equal to two (2) month’s Rent (Base Rent,
Additional Rent and sales tax) based upon the then current rental rate. The
unamortized value of the Tenant Improvement costs and real estate
brokerage/leasing commissions shall be calculated by dividing the amount of the
costs and commissions by the total number of months in the Lease Term and
multiplying by the number of months remaining in the Lease Term, after the last
month in which Tenant occupies the Premises and pays Rent.

 

28.       Right
of First Offer.    During the initial term of
this Lease, Tenant shall have a one time right of first offer (the “Right of
First Offer”) to lease space contiguous to the Premises, as identified on the
space plan attached hereto as Exhibit F (the “Offer Space”) subject to
the following conditions. At the time Tenant exercises the Right of First
Offer, (i) the Lease must be in full force and effect; (ii) Tenant shall not be
in Default under the Lease beyond any applicable notice and cure period; nor
shall Tenant be in Default under the Lease beyond any applicable notice and
cure period, at the Commencement Date, as defined hereinbelow for the Offer
Space; and (iii) Tenant’s then current financial condition, as revealed by its
most recent financial statements (which shall include quarterly and annual
financial statements, including income statements, balance sheets, and cash
flow statements), must demonstrate that either (a) Tenant’s net worth is at
least equal to its net worth at the time this Lease was signed; or (b) Tenant
meets the financial criteria reasonably acceptable to Landlord. Subject to the
other terms of this Clause, after the Offer Space has or will “become available”
for leasing by the Landlord (as defined below), Landlord shall not, during the
initial term of this Lease, lease to another tenant the Offer Space without
first offering Tenant the right to lease the Offer Space. The Offer Space shall
be deemed to “become available” when the lease for the current tenant of the
Offer Space expires or is otherwise terminated. The Offer Space shall not be
deemed to “become available” if the space is either assigned or subleased by
the current tenant of the space; or re-let by the current tenant of the space
by renewal, extension, or renegotiation. Landlord shall not lease the Offer
Space to another tenant unless and until Landlord has first offered the Offer
Space to Tenant in writing (the “First Offer Leasing Notice”) and Tenant either
rejects such offer or a period often (10) days has elapsed from the date that
Tenant has received the First Offer Leasing Notice without Tenant having
notified Landlord in writing of its acceptance of such First Offer Leasing
Notice and supplied Landlord with current financial statements as required
herein, whichever occurs first. The First Offer Leasing Notice shall contain
(i) the date on which the Landlord expects the Offer Space to become available;
(ii) the Base Rent for the Offer Space, and (iii) the Tenant’s increased pro
rata share of Operating Expenses and Real Estate Taxes. If Tenant timely
delivers to Landlord written notice of Tenant’s exercise of the Right of First
Offer for all of the Offer Space, along with Tenant’s financial statements as
required herein, and Landlord determines that Tenant meets all of the
conditions provided in this Clause, then the Offer Space shall be deemed added
to the Premises and subject to the terms and conditions in the Lease, with the
exception of those Lease modifications set forth herein. If Tenant declines or
fails to duly and timely exercise its Right of First Offer or fails to meet all
of the conditions provided in this Clause, this Right of First Offer shall
expire, and Landlord shall thereafter be free to lease the Offer Space in
portions or in its entirety to any third-party tenant at any time without
regard to the restrictions in this Clause and on whatever terms and conditions
Landlord may decide in its sole discretion. If Tenant leases the Offer Space
pursuant to the terms of this Clause, all the obligations, terms, and
conditions under the Lease shall also apply to the Offer Space except that the
commencement date of the Lease for the Offer Space (the “Offer Space
Commencement Date”) shall be the day the Offer Space is delivered to the Tenant
broom clean, free of tenants or other occupants, and in its then “as is”
condition; as of the Offer Space Commencement Date the Offer Space shall be
deemed part of the Premises, and Tenant’s pro rata share of Operating Charges
and Real Estate Taxes shall be increased

 

4

 

to an amount computed by
dividing the amount deemed by Landlord to be the total of the rentable square
footage of the Premises, including the Offer Space, by the amount deemed by
Landlord to be the rentable square footage of the Building, and expressing the
fraction as a percentage. As of the Offer Space Commencement Date, the Base
Rent shall be increased to an amount computed by multiplying the square footage
dollar amount that Landlord desires to charge for the Offer Space by the number
of rentable square feet deemed by Landlord to be contained in Offer Space taken
by Tenant.

 

[The remainder of this space is intentionally left
blank.]

 

5

 

IN WITNESS WHEREOF, the parties hereto have executed this Basic
Lease Information Rider on this 3 day
of September 2003, intending that it be, and the same hereby is, incorporated
into and made a part of the T-Rex Corporate Center @ Boca Lease.

 

	
   

  	
   

  	
   

  	
  Landlord:

  
	
   

  	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
   

  	
  BOCA TECHNOLOGY CENTER, LLC

  a Florida limited liability company

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Illegible

  	
   

  	
  By:

  	
  T-Rex
  Boca Owners Corp., a Florida

  
	
  /s/ Illegible

  	
   

  	
   

  	
  corporation,
  its Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Clifford J.
  Preminger

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Clifford
  J. Preminger

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Its
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Tenant:

  	
   

  
	
   

  	
   

  	
   

  	
  LifeWatch Holding Corporation, a Delaware

  
	
   

  	
   

  	
   

  	
  corporation, authorized to do business in Florida

  
	
  Witness:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Illegible

  	
   

  	
  By:

  	
  /s/ Michael Turchi

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael Turchi

  	
   

  
	
  /s/ Illegible

  	
   

  	
  Title:

  	
  V. P. of Finance

  	
   

  
												

 

6

 

EXHIBIT “F” 

LEASE GUARANTY

 

FOR VALUE RECEIVED, and in consideration for and as an inducement to
Boca Technology Center, LLC, a Florida limited liability company, as LANDLORD
to enter into that certain lease dated September 3, 2003 (the “LEASE”), for
approximately 5,538 square feet of net rentable area known as Suite Number 130
in the 4800 Building of the T-REX CORPORATE CENTER @ BOCA (the “PREMISES”) to
LIFEWATCH HOLDING CORPORATION, a Delaware corporation authorized to do business
in Florida, as TENANT, the undersigned, INSTROMEDIX, INC., an Oregon
corporation (the “GUARANTOR”), does hereby guaranty to LANDLORD the punctual
payment of the Base Rent and Additional Rent and all other charges (hereinafter
collectively called “RENTS”) and the due performance of all the other terms,
covenants and conditions contained in said LEASE on the part of the TENANT to
be paid and/or to be performed thereunder. If any default shall be made by the
TENANT under said LEASE, the GUARANTOR does hereby covenant and agree to pay to
the LANDLORD in each and every instance such sum or sums of money as the TENANT
is and shall become liable for and/or obligated to pay under said LEASE and/or
fully to satisfy and perform such other terms, covenants and conditions of said
LEASE on the part of the TENANT to be performed thereunder and, provided
LANDLORD is the prevailing party in any such action, to pay also any and all
damages, expenses and attorneys fees (hereafter collectively called “DAMAGES”)
that may be suffered or incurred by LANDLORD in consequence of the nonpayment
of said RENTS or the nonperformance of any such other terms, covenants and
conditions of said LEASE. Provided, however, that LANDLORD shall pay the
GUARANTOR’s attorney’s fees and expenses in any such action where the GUARANTOR
is the prevailing party. Such payments of RENTS to be made monthly or at such
other intervals as the same shall or may become payable under said LEASE,
including any accelerations thereof, such performance of said other terms,
covenants and conditions to be made when due under said LEASE and such DAMAGES
to be paid when incurred by LANDLORD, all without requiring any notice from
LANDLORD or proof of notice or demand, all of which the GUARANTOR hereby
expressly waives.

 

The maintenance of any action or proceeding by the LANDLORD to recover
any sum or sums that may be or become due under said LEASE, or to secure the
performance of any of the other terms, covenants and conditions of said LEASE
or to recover damages, shall not preclude the LANDLORD from thereafter
instituting and maintaining subsequent actions or proceedings for any
subsequent default or defaults of TENANT under said LEASE. The GUARANTOR does
hereby consent that, without affecting the liability of the GUARANTOR under
this Guaranty and without notice to the GUARANTOR, time may be given by
LANDLORD to TENANT for payment of RENTS and performance of said other terms,
covenants and conditions, or any of them, and such time extended and
indulgences granted, from time to time, or the TENANT may be dispossessed or
the LANDLORD may avail itself of or exercise any or all of the rights and/or
remedies against the TENANT provided by law or by said LEASE, and may proceed
either against the TENANT alone or jointly against the TENANT and the GUARANTOR
or against the GUARANTOR alone without proceeding against the TENANT. The
GUARANTOR does hereby further consent to any subsequent change, modification
and/or amendment of said LEASE in any of its terms, covenants or conditions, or
in the RENTS payable thereunder, and/or to any assignment or assignments of
said LEASE, and/or to any renewals or extensions thereof, all of which may be
made without notice to or consent of the GUARANTOR and without in any manner
releasing or relieving the GUARANTOR from liability under this Guaranty.

 

The GUARANTOR does hereby further agree that in respect of any payments
made by the GUARANTOR hereunder, the GUARANTOR shall not have any rights based
on suretyship or otherwise to

 

 

stand
in the place of LANDLORD so as to compete with LANDLORD as a creditor of
TENANT, unless and until all claims of LANDLORD under said LEASE shall have
been fully paid and satisfied.

 

The GUARANTOR acknowledges receipt of valuable consideration received
in its undertaking of this LEASE in that the GUARANTOR is an affiliated, sister
company of TENANT. It is further acknowledged by the GUARANTOR that the LEASE
herein guaranteed by the GUARANTOR is of benefit and value to the GUARANTOR and
would not have been negotiated or consummated by LANDLORD without this LEASE
Guaranty being executed and delivered by the GUARANTOR. As a further inducement
to LANDLORD to make said LEASE and in consideration therefor, LANDLORD and the
GUARANTOR hereby agree that in any action, proceeding or counterclaim brought
by either LANDLORD or the GUARANTOR against the other on any matters whatsoever
arising out of or in any way connected with said LEASE or this Guaranty, that
LANDLORD and the GUARANTOR shall and do hereby waive trial by jury.

 

The GUARANTOR further hereby agrees that the LEASE and this GUARANTY
shall be governed by the laws of the State of Florida, and that the venue for
any action, proceeding or counterclaim brought by either party against the
other on any matters whatsoever arising out of or in any way connected with
said LEASE or this Guaranty, shall be in Palm Beach County, Florida. GUARANTOR
hereby waives any objection to the venue of any action filed in any court
situated in Palm Beach County, Florida and waives any right under the doctrine
of forum non conveniens or otherwise, to transfer any such action filed in any
such court to any other court. The GUARANTOR expressly and affirmatively
acknowledges and agrees that the execution of this Guaranty and performance of
the obligations contained herein, constitute doing business in Florida for
purposes of long-arm jurisdiction. The GUARANTOR further consents and agrees
that the courts located in Palm Beach County, Florida, shall have jurisdiction
over the GUARANTOR in connection with any action or actions commenced to
enforce the LEASE or this GUARANTY.

 

This Guaranty and any of the provisions hereof cannot be modified,
waived or terminated, unless in writing, signed by the parties hereto. The
provisions of this Guaranty shall apply to and bind and inure to the benefit of
the GUARANTOR and LANDLORD and their respective heirs, legal representatives,
successors and assigns. In any suit or action under this Guaranty, the
prevailing party shall be entitled to payment of all attorneys’ fees incurred
in connection with enforcing this Guaranty including, without limitation, fees
at the trial and all appellate levels.

 

 

IN WITNESS WHEREOF, the GUARANTOR has executed, or caused to be executed,
this Guaranty on September      , 2003.

 

	
  WITNESSES:

  	
   

  	
  GUARANTOR:

  
	
   

  	
   

  	
  INSTROMEDIX, INC., an
  Oregon corporation,

  
	
   

  	
   

  	
  authorized to do business
  in the State of Florida

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Maria Murry

  	
   

  	
  By:

  	
  /s/ Michael Turchi

  	
   

  
	
  Print Name:

  	
  Maria Murry

  	
   

  	
  Name:

  	
  Michael Turchi

  	
   

  
	
   

  	
   

  	
  Title:

  	
  V. P. of Finance

  	
   

  
	
  /s/ Joane Stavola

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Joane StavolaExhibit 10.12

 

Capital Note

 

US Dollars 14,245,248

 

This Capital Note of Card
Guard Technologies Inc. a Californian corporation, (the “Company”), in favor of Card Guard
Scientific Survival Ltd., an Israeli corporation (the “Holder”).

 

1.                         The
Company hereby promises to pay to the Holder the amount of US$14,245,248
(Fourteen million two hundred and forty five thousands two hundred and forty
eight US Dollars), (the “Note Amount”).

 

2.                         The
Company may repay the Note Amount to the Holder at such time as the Company and
the Holder shall jointly determine. If so decided, the Note Amount shall be
paid at the Company’s registered office, or such other address designated by
the Company, against delivery of this Capital Note. Should the Company fail to
pay its obligations under the note Holder shall be entitled to all remedies
available to it hereunder and under any applicable laws.

 

3.                         This
Capital Note is not secured by any pledge, lien or charge of any kind.

 

4.                         This
Capital Note shall bear no interest.

 

5.                         This Capital
Note shall be paid in lowful currency of the USA and shall be wire transformed
to Card Guard bank account according to its instructions.

 

6.                         Subordination.
The Company’s obligation of repayment of the Note Amount shall be subordinate
and rank junior to all other current debt obligations of the Company.

 

7.                         The
Company shall not be liable for any default or delay in performing its
obligations under this Capital Note that is the result of “force majeure”.

 

8.                         The
Holder may not transfer, assign or otherwise dispose of this Capital Note and
the Holder’s rights and obligations hereunder, in whole or in part, except with
the written consent of the Company. This Capital Note shall be binding upon and
inure to the benefit of each party’s successors and permitted assigns.

 

9.                         Any
person receiving title to the Capital Note shall be bound by these terms of
Capital Note and shall have the right to be registered in the Company’s books
as holder of the Capital Note, upon producing adequate evidence to its title to
the Capital Note.

 

10.                   Severability.
In the event that any one of the provisions of this Capital Note is for any
reason held to be invalid or unenforceable, the remaining provisions of this
Capital Note will be unimpaired and the invalid or unenforceable

 

1

 

provision will be
replaced by a mutually acceptable provision, which being valid and enforceable,
comes closest to the intention of the parties underlying the invalid of
unenforceable provision.

 

11.                   Governing
Law; Dispute Resolution. This Capital Note shall be governed by and
construed in accordance with the laws of the State of Delaware (without regard
to the conflict of laws principles thereof).

 

 

IN WITNESS WHEREOF, the
parties hereto have executed this Capital Note as of the date first written
above.

 

 

	
   

  	
  Card
  Guard Technologies Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
    8.12.04

  	
   

  

 

2

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