Document:

exv10w1

Exhibit 10.1

 

 

Execution Version

OFFICE AND LABORATORY LEASE

between

UCB, INC.

Landlord

and

GEOVAX, INC.

Tenant

 

 

 

 

 

 

1900 LAKE PARK DRIVE

SMYRNA, GEORGIA 30080

LEASE SUMMARY

	 	 	 
	Date:
	 	August 31, 2009
	 
	 	 
	Landlord:
	 	UCB, Inc., a Delaware corporation
	 
	 	 
	Tenant:
	 	GeoVax, Inc., a Georgia corporation
	 
	 	 
	Premises and Floor(s) and
	 	8,430 rentable square feet in Suites 360, 370 and 380 of the Building on
	Expansion:
	 	the ground floor located at 1900 Lake Park Drive, Smyrna Georgia 30080
	[Section 1.1(b)]
	 	(“Premises”)
	 
	 	 
	 
	 	Tenant will only be charged for the use of 6,000 rentable square feet
	 
	 	(“Rentable Area”), but has the right to beneficial occupancy of the
	 
	 	entire Premises; provided, however, Landlord shall have the right to
	 
	 	recapture up to 2,430 rentable square feet beginning from the demising
	 
	 	wall on the left-hand side of Suite 360/370 with ninety (90) days prior
	 
	 	written notice to Tenant and Landlord’s installation, at Landlord's
	 
	 	expense, of a new demising wall.
	 
	 	 
	 
	 	Landlord shall provide a Right of First Refusal on the 2,430 contiguous
	 
	 	rentable square feet to be leased at the then current market lease rate
	 
	 	(“Expanded Rentable Area”).
	 
	 	 
	Lease Term:
	 	Sixty-Two (62) months  with two (2) months rent abatement outside the term
	[Section 2.1]
	 	 
	 
	 	 
	Commencement Date: 
	 	November 1, 2009
	[Section 2.1]
	 	 
	 
	 	 
	Rent Commencement:
	 	January 1, 2010
	[Section 2.1]
	 	 
	 
	 	 
	Expiration Date:
	 	December 31, 2014
	[Section 2.1]
	 	 
	 
	 	 
	Base Rental:
	 	Full service Base Rental Rate, to be paid in equal monthly installments.
	[Section 3.1]
	 	 

	 	 	 	 	 
	Months	 	Rate/RSF Gross
	1 - 2

	 	$	0.00	 
	3 - 12

	 	$	19.00	 
	13 - 24

	 	$	19.57	 
	25 - 36

	 	$	20.16	 
	37 - 48

	 	$	20.76	 
	49 - 60

	 	$	21.38	 
	61 - 62

	 	$	22.02	 

	 	 	 
	Rent Credit:
	 	$0
	 
	 	 

 

 

	 	 	 
	Security Deposit:
	 	Last month’s rent or Eleven Thousand Ten Dollars ($11,010.00)
	 
	 	 
	Landlord’s Address for the
	 	UCB, Inc.
	mailing of payments:
	 	1950 Lake Park Drive
	[Section 3.4]
	 	Smyrna, Georgia 30080
	 
	 	Attn: Scott Gee
	 
	 	 
	Use: [Section 5.1]
	 	General office use and laboratory use
	 
	 	 
	Tenant’s Broker and Address
	 	Stephanie Marino
	for Notices:
	 	CB Richard Ellis, Inc.
	[Section 9.1]
	 	3280 Peachtree Road
	 
	 	Suite 1400
	 
	 	Atlanta, GA 30305
	 
	 	 
	Tenant’s Address for Notices:
	 	GeoVax, Inc.
	[Section 9.2]
	 	1256 Briarcliff Road NE
	 
	 	Atlanta, GA 30306
	 
	 	Attn: Bob McNally, President and CEO
	 
	 	 
	Landlord’s Address for
	 	UCB, Inc.
	Notices:
	 	1950 Lake Park Drive
	[Section 9.2]
	 	Smyrna, Georgia 30080
	 
	 	Attn: Scott Gee
	 
	 
	 	Jay Dowlen
	Landlord’s Broker and
	 	CB Richard Ellis, Inc.
	Address for
	 	3280 Peachtree Road
	Notices:
	 	Suite 1400
	 
	 	Atlanta, GA 30305
	[Section 9.2]
	 	 
	 
	Landlord’s Allowance:
	 	Landlord, at Landlord’s expense, shall repaint and re-carpet the Premises
	[Section 4.1]
	 	and replace the missing ceiling tiles in the Premises with finishes
	 
	 	mutually agreeable to Landlord and Tenant, such cost not to exceed $7.50
	 
	 	per rentable square foot ($45,000.00). Except as otherwise provided in
	 
	 	this Section 4.1, Tenant is accepting the Premises as is, and the
	 
	 	Landlord shall have no obligation whatsoever to perform and contribute to
	 
	 	any additional tenant improvements for the Premises.

 

 

 

 

 

 

1900  LAKE PARK DRIVE

OFFICE LEASE

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	I	 	PREMISES AND OTHER DEFINITIONS
	 	1
	 	 	1.1 Premises
	 	1
	 	 	1.2 Area of the Premises
	 	1
	 	 	1.3 Prime Rate
	 	1
	 	 	1.4 Property Taxes
	 	2
	II	 	TERM, ASSIGNMENT AND SUBLETTING
	 	2
	 	 	2.1 Term
	 	2
	 	 	2.2 Removal of Tenant’s Property
	 	2
	 	 	2.3 Holding Over
	 	2
	 	 	2.4 Assignment and Subleasing
	 	2
	III	 	RENT
	 	3
	 	 	3.1 Base Rental
	 	3
	 	 	3.2 Operating Expenses
	 	3
	 	 	3.3 Security Deposit
	 	3
	 	 	3.4 Payments
	 	3
	 	 	3.5 Advanced Base Rental

	 	3
	 	 	
3.6 Rent for Partial Months
	 	3
	IV	 	PREPARATION, MAINTENANCE AND REPAIR OF PREMISES
	 	4
	 	 	4.1 Tenant Improvements
	 	4
	 	 	4.2 Repairs by Tenant
	 	4
	 	 	4.3 Repairs by Landlord
	 	4
	 	 	4.4 Alterations by Tenant
	 	4
	 	 	4.5 Discharge of Liens
	 	4
	 	 	4.6 Damage and Destruction
	 	4
	 	 	4.7 Eminent Domain
	 	5
	 	 	4.8 Report of Defects
	 	6
	 	 	4.9 Landlord’s Right to Enter Premises
	 	6
	V	 	USE AND SERVICES
	 	6
	 	 	5.1 Use
	 	6
	 	 	5.2 Services, Furniture and Equipment
	 	6

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	 	Page
	VI	 	COMPLIANCE WITH LAWS
	 	7
	 	 	6.1 Tenant’s Compliance with Laws
	 	7
	 	 	6.2 Building Alterations
	 	7
	VII	 	INSURANCE, LIABILITY AND INDEMNIFICATION
	 	7
	 	 	7.1 Insurance
	 	7
	 	 	7.2 Waiver of Subrogation
	 	8
	 	 	7.3 Indemnity by Tenant
	 	8
	 	 	7.4 Limitation of Liability
	 	8
	VIII	 	EVENTS OF DEFAULT AND RELATED REQUIREMENTS
	 	9
	 	 	8.1 Default and Remedies
	 	9
	 	 	8.2 Insolvency or Bankruptcy
	 	11
	 	 	8.3 Late Payments
	 	11
	 	 	8.4 Attorneys’ Fees for Collection
	 	11
	 	 	8.5 No Waiver of Rights
	 	11
	IX	 	MISCELLANEOUS PROVISIONS
	 	11
	 	 	9.1 Brokers
	 	11
	 	 	9.2 Addresses and Notices
	 	12
	 	 	9.3 Entire Agreement and Exhibits
	 	12
	 	 	9.4 Subordination and Attornment
	 	12
	 	 	9.5 Estoppel Certificate/Amendment
	 	12
	 	 	9.6 Severability
	 	13
	 	 	9.7 Captions
	 	13
	 	 	9.8 Successors and Assigns
	 	13
	 	 	9.9 Georgia Law
	 	13
	 	 	9.10 Time is of the Essence
	 	13
	 	 	9.11 Execution
	 	13
	 	 	9.12 Force Majeure
	 	13
	 	 	9.13 Mutual Warranty of Authority
	 	13
	 	 	9.14 Parking Rights
	 	14
	 	 	9.15 Recordation of Lease
	 	14
	 	 	9.16 Hazardous Substances
	 	14
	 	 	9.17 Names
	 	15
	 	 	9.18 Shared Communications Services
	 	15

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	 	Page
	 	 	9.19 Ownership and Management Disclosure
	 	15
	 	 	9.20 Effect of Lease Termination
	 	15
	 	 	9.21 Quiet Enjoyment
	 	15

-iii-

 

 

 

SCHEDULE OF EXHIBITS

	 	 	 
	Exhibit “A”:

	 	Floor Plan(s)
	Exhibit “B”:

	 	Rules and Regulations
	Exhibit “C”:

	 	Tenant Improvements

 

 

-iv-

 

 

 

1900 LAKE PARK DRIVE

OFFICE LEASE

     THIS LEASE AGREEMENT (the “Lease”), dated as of, but not necessarily on, November 1, 2009,
made by and between the undersigned Landlord and the undersigned Tenant.

W I T N E S S E T H   T H A T:

     Landlord, for and in consideration of the rents, covenants, agreements and stipulations herein
contained, to be paid, kept and performed by Tenant, has leased and rented, and by these presents
hereby leases and rents unto Tenant, and Tenant hereby leases upon the terms and conditions herein
contained, the Premises described in Section 1.1(b) below. This Lease shall create the
relationship of landlord and tenant between Landlord and Tenant; and Tenant has only a usufruct
which is not subject to levy and sale. So long as Tenant shall observe and perform the covenants
and agreements binding on it hereunder and subject to the terms and provisions hereof, Tenant shall
at all times during the Lease Term (as hereinafter defined) peacefully and quietly have and enjoy
possession of the Premises.

     This Lease shall be applied and construed in a commercially reasonable manner. Whenever
herein the consent, approval or concurrence of either Landlord or Tenant shall be required for
action or forbearance by the other party, it is agreed that such consent, approval or concurrence
shall not be unreasonably withheld, delayed or conditioned, except as to matters specified as being
in the discretion or sole discretion of the party from which the consent, approval or concurrence
is required. Discretionary consent, approval or concurrence may be withheld, delayed or
conditioned without regard to any standard of reasonableness.

I

PREMISES AND OTHER DEFINITIONS

     Terms not defined in this Lease shall have the respective meanings set forth in the Lease
Summary attached as a preamble hereto, and incorporated herein by this reference. Unless the
context otherwise specifies or requires, the following terms shall have the meanings herein
specified:

     1.1 Premises. Terms used in defining Premises are:

     (a) The term “Building” shall mean the building located at 1900 Lake Park Drive,
Smyrna, Georgia, consisting of approximately 35,858 square feet of rentable space.

     (b) The term “Premises” shall mean that portion of the Building located on the floor(s)
of the Building specified in the Lease Summary, which portion is shown on the floor plan(s)
attached hereto as Exhibit “A” together with a non-exclusive right in common with others to
use and enjoy those common areas or portions of the Building, including but not limited to
driveways, sidewalks, parking lots, hallways, corridors, trash rooms, mechanical and
electrical rooms, storage rooms, stairways, entrances, exits, restrooms, lobbies, stairs,
loading docks, pedestrian walks, roofs and basements, janitor’s and storage closets within
the Building and all other common rooms and common facilities within the Building
(collectively, the “Common Areas”). Upon any expansion or contraction of the Premises
pursuant to the terms of this Lease or other agreement of the parties, the term “Premises”
shall be deemed to apply to such space as adjusted by such expansion or contraction.

     1.2 Area of the Premises. The “Rentable Area” and the “Expanded Rentable Area” of the
Premises for all purposes of this Lease shall be the agreed quantity of square footage so
designated in the Lease Summary.

     1.3  “Prime Rate” shall mean the rate of interest announced from time to time by Bank
of America, N.A. as its prime rate of interest. An increase or decrease in the Prime Rate shall
result in a corresponding increase

 

or decrease in the rate of interest being charged hereunder and shall take effect on the day
the increase or decrease in the Prime Rate is made effective. In the event that Bank of America,
N.A. shall abandon or abolish the practice of publishing the Prime Rate, or should the same become
unascertainable, Landlord shall designate a comparable reference rate which shall then be deemed to
be the Prime Rate under this Lease.

     1.4 “Property Taxes” shall mean the following: (a) personal property ad valorem taxes
imposed upon the furniture, fixtures, machinery, equipment, apparatus, systems and appurtenances
used in connection with the Building for the operation thereof; (b) real estate ad valorem taxes,
assessments, impact fees, sewer charges and transit taxes; and (c) any other federal, state or
local governmental charge, general, special, ordinary or extraordinary (but not including income or
franchise taxes or any other taxes imposed upon or measured by Landlord’s income or profits, unless
the same shall be imposed in lieu of real estate ad valorem taxes) which may now or hereafter be
levied or assessed against the Building and the land underlying the Building or the rents derived
from the Building (in the case of special taxes or assessments which may be payable in
installments, only the amount of installments paid during a calendar year shall be included in the
taxes for that year).

II

TERM, ASSIGNMENT AND SUBLETTING

     2.1 Term. Except as otherwise provided herein, Tenant takes and accepts the Premises
from Landlord in their present condition and as suited for the use intended by Tenant, for the term
described below (the “Lease Term”). The Lease Term shall commence on the date specified in the
Lease Summary as the Commencement Date (the “Commencement Date”) and shall end at 6:00 p.m. local
time on the date specified in the Lease Summary as the Expiration Date (the “Expiration Date”).
The rental and other payments due hereunder from Tenant shall commence on the Rent Commencement
Date. Tenant may occupy the Premises for the two (2) weeks immediately preceding the Commencement
Date to install Tenant’s equipment, phone, cable and furnishings. Tenant shall be subject to all
the terms and conditions of this Lease during such two week period.

     2.2 Removal of Tenant’s Property. Upon or prior to the termination of this Lease,
Tenant shall have the obligation to remove from the Premises and the Building all of its personal
property and trade fixtures, and peaceably surrender the Premises to Landlord in a clean and ready
to occupy condition. Such property of Tenant not so removed from the Premises or the Building upon
the termination of this Lease shall be considered abandoned by Tenant and may be disposed of by
Landlord in any manner whatsoever without accounting to Tenant for same or being liable in any way
to Tenant for such disposition. Upon surrender of possession of the Premises, Tenant shall deliver
to Landlord all keys to the Premises. Tenant shall not remove from the Premises and the Building
those Tenant improvements to the mechanical, electrical or plumbing systems of the Building.

     2.3 Holding Over. In no event shall there be any renewal of this Lease by operation
of law, and if Tenant remains in possession of the Premises after the termination of this Lease
without written authorization executed by Landlord and Tenant, but with the acquiescence or consent
of Landlord, Tenant shall be deemed to be occupying the Premises under a month-to-month periodic
tenancy at a monthly rental equal to one hundred twenty-five percent (125%) of the Base Rental as
adjusted by Rental Adjustment in effect during the last month of the Lease Term, plus all
additional rental provided for in this Lease, and otherwise subject to all the covenants and
provisions of this Lease insofar as the same are applicable to a month-to-month periodic tenancy.
Landlord and Tenant agree that any such periodic tenancy may be terminated by thirty (30) days
prior written notice by either party to the other party. If Tenant remains in possession after
termination of this Lease without Landlord’s acquiescence or consent, Tenant thereupon shall be
deemed a tenant-at-sufferance subject to summary eviction as provided by law.

     2.4 Assignment and Subleasing.

     (a) Tenant may not assign this Lease or sublease the Premises without obtaining the
prior written consent of Landlord which Landlord, which consent Landlord shall not
unreasonably withhold or delay.

     (b) Tenant agrees to pay, as additional rental, to Landlord, on demand, reasonable
costs incurred by Landlord (i) in connection with any request by Tenant for Landlord to
consent to any

2

 

assignment or subleasing by Tenant, and (ii) in providing any services or materials to
any assignee or sublessee of Tenant.

     (c) If, with the consent of Landlord, this Lease is assigned or the Premises or any
part thereof is subleased, Landlord may, after default by Tenant, collect rent from the
assignee, subtenant or occupant, and apply the net amount collected to the Base Rental and
additional rental herein reserved, but no such subleasing, occupancy or collection shall be
deemed (i) a waiver of any of Tenant’s covenants contained in this Lease, (ii) the
acceptance by Landlord of the subtenant as Tenant, or (iii) the release of Tenant from
further performance by Tenant of its covenants under this Lease.

     (d) Landlord’s approval of or consent to an assignment or sublease transaction shall
not operate to release Tenant from its liability hereunder, and shall not affect Landlord’s
rights under this Section 2.4 as to any subsequent proposed assignment or sublease.

     (e) Tenant covenants and agrees to deliver to Landlord one (1) fully executed
counterpart of the instruments and documents (including amendments thereto) evidencing any
approved assignment or subleasing effected pursuant to this Lease. Such delivery shall be
made promptly following the execution of any such instrument or document.

III

RENT

     3.1 Base Rental. Tenant shall pay to Landlord an annual base rent in monthly
installments for and during the Lease Term in the amounts specified in the Lease Summary (the “Base
Rental”). The monthly installments of Base Rental shall be paid in advance on the first (1st) day
of every calendar month during the Lease Term beginning on the Rent Commencement Date.

     3.2 Operating Expenses. Tenant acknowledges that in determining the Base Rental,
Landlord has assumed it will operate the Building during the hours of 8:00 a.m. to 6:00 p.m.,
Monday through Friday, and 8:00 a.m. to 6:00 p.m. Saturdays, holidays excluded. If Tenant’s
operations exceed such hours of operation, Landlord may sub-meter the Premises electric and HVAC,
at Landlord’s option, cost and expense, and Tenant shall pay any such incremental cost associated
with the provision of utilities for the Tenant’s extended hours of operation. Tenant shall
receive a Base Year of 2010 for operating expenses agreed to in 7/28/2009 proposal.

     3.3 Security Deposit. Upon the execution of this Lease, Tenant shall pay to Landlord
a Security Deposit as set forth in the Lease Summary.

     3.4 Payments. Tenant shall pay to Landlord all Base Rental, additional rent and all
other charges due and owing by Tenant under this Lease without deduction or set off, in legal
tender, at the address specified in the Lease Summary for the mailing of payments, or as otherwise
directed from time to time by Landlord.

     3.5 Advanced Base Rental. Upon the execution of this Lease, Tenant shall pay to
Landlord the first full month Base Rental.

     3.6 Rent for Partial Months. A prorated monthly installment, based on a thirty (30)
day month, shall be paid in advance (i) on the Rent Commencement Date for any fraction of a month
if the Lease Term begins on any day other than the first (1st) day of any month and (ii) on the
first (1st) day of the final month of the Lease Term for any fraction of a month if the Lease Term
shall terminate on any day other than the last day of any month.

3

 

IV

PREPARATION, MAINTENANCE AND REPAIR OF PREMISES

     4.1 Tenant Improvements. Landlord, at Landlord’s expense, shall repaint and re-carpet
the Premises and replace the missing ceiling tiles in the Premises with finishes mutually agreeable
to Landlord and Tenant, such cost not to exceed $7.50 per rentable square foot. Except as otherwise
provided in this Section 4.1, Tenant is accepting the Premises as is, and the Landlord shall have
no obligation whatsoever to perform and contribute to any additional tenant improvements for the
Premises. Tenant, at Tenant’s expense, may make additional improvements to the Premises with UCB’s
prior written consent. Improvements mutually agreed upon as of the date of this Lease are set
forth in Exhibit C.

     4.2 Repairs by Tenant. Tenant shall at its own expense keep the Premises in good
repair and tenantable condition and indemnify Landlord against any loss, damage or expense arising
by reason of any failure of Tenant so to keep the Premises in good repair and tenantable condition
or due to any act or neglect of Tenant, its agents, employees, contractors, invitees, licensees,
tenants or assignees. If Tenant fails to perform, or cause to be performed, such maintenance and
repairs, then at the option of Landlord, in its sole discretion, any such maintenance or repair may
be performed or caused to be performed by Landlord and the cost and expense thereof charged to
Tenant, and Tenant shall pay the amount thereof to Landlord on demand as additional rental.
Without limitation, Tenant shall be obligated to maintain the mechanical, plumbing, and electrical
systems that are specific to the Laboratory space, and shall be responsible for maintaining such
areas in accordance with all applicable laws, rules, statutes, ordinances and codes during the
Term.

     4.3 Repairs by Landlord. Landlord shall at its own expense unless otherwise provided
herein keep and maintain in good order and repair the Common Areas of the Building. Additionally,
Landlord is responsible for maintaining and repairing the roof.

     4.4 Alterations by Tenant. Tenant shall make no structural alterations or additions
of any kind in or to the Premises. Tenant shall otherwise have the right to alter the Premises
with Landlord’s consent, not to be unreasonably withheld or delayed so long as such alterations
comply with Landlord’s reasonable rules and regulations, all local law, rules and ordinances are
followed, and Tenant submits a governmentally approved set of plans to Landlord prior to
commencement of such alterations. If a building permit is required in connection with such work,
Landlord shall not unreasonably withhold, condition or delay its approval of the Tenant’s plans
prior to submittal for permit applications. Landlord shall not assess any fees in connection with
its review.

     4.5 Discharge of Liens. Tenant is not authorized to contract for or on behalf of
Landlord for work on or the furnishing of materials to the Premises or any other part of the
Building. Tenant shall discharge of record by payment, bond or otherwise, within thirty (30) days
subsequent to the date of its receipt of notice thereof from Landlord, any mechanic’s, laborer’s or
similar lien filed against the Premises or the Building for work or materials claimed to have been
furnished at the instance of Tenant. If Tenant shall fail to cause such lien or claim of lien to
be so discharged or bonded within such period, in addition to any other right or remedy it may
have, Landlord may, but shall not be obligated to, discharge the same by paying the amount claimed
to be due or by procuring the discharge of such lien or claim by deposit in court or bonding, and
in any such event, Landlord shall be entitled, if Landlord so elects, to compel the prosecution of
any action for the foreclosure of such lien or claim by the claimant and to pay the amount of the
judgment, if any, in favor of the claimant, with interest, costs and allowances. Tenant shall pay
as additional rental on demand from time to time any sum or sums so paid by Landlord and all costs
and expenses incurred by Landlord, including, but not limited to, reasonable attorneys’ fees in
processing such discharge or in defending any such action.

     4.6 Damage and Destruction.

     (a) If the Building or Premises is damaged partially or wholly by fire, the elements,
act of God or other casualty, and if such damage cannot, in Landlord’s reasonable
estimation, be materially restored within one hundred twenty (120) days of such damage, then
either Landlord or Tenant may terminate this Lease as of the date of such fire or casualty
and the Lease Term shall end on such date as if that date had been originally fixed in this
Lease for the expiration of the Lease Term. Landlord or Tenant shall exercise its option provided herein by written notice to the other within sixty
(60) days of such fire or other casualty.

4

 

     (b) If this Lease is not terminated pursuant to subsection (a) above, then Landlord,
within such one hundred twenty (120) day period, shall repair and restore to a condition
substantially the same as existing on the date of this Lease the Building or Premises, as
the case may be (except that Landlord may elect not to rebuild, and thus terminate this
Lease, if such damage occurs during the last year of the Lease Term, regardless of any term
extension option which is unexercised at the date of occurrence of the casualty). In the
event that Landlord shall fail to complete such repairs and material restoration within
sixty (60) days after the end of such 120 day period and Tenant’s use and enjoyment of the
Premises is then materially impaired by the uncompleted restoration, Tenant may at its
option and as its sole remedy terminate this Lease by delivering written notice to Landlord,
whereupon the Lease shall end on the date of such notice as if the date of such notice were
the date originally fixed in this Lease for the expiration of the term hereof; provided,
however, that if construction is delayed because of changes, deletions or additions in
construction requested by Tenant, or because of strikes, lockouts, casualties, acts of God,
war, material or labor shortages, governmental regulation or control or other causes beyond
the reasonable control of Landlord, the period for restoration, repair or rebuilding shall
be extended for the amount of time Landlord is so delayed. In no event shall Landlord be
required to rebuild, repair or replace any personal property, equipment or trade fixtures
which belong to Tenant.

     (c) If this Lease is not terminated pursuant to this Section 4.6 and if the Premises
are unfit for occupancy in whole or in part following such damage, the Base Rental and
Rental Adjustment payable during the period in which the Premises are unfit for occupancy
shall be reduced in proportion to the number of square feet of Rentable Area of the premises
rendered unusable by such damage.

     (d) Any insurance which may be carried by Landlord or Tenant against loss or damage to
the Building or Premises shall be for the sole benefit of the party carrying such insurance
and under its sole control except that Landlord’s insurance may be subject to control by the
holder or holders of any indebtedness secured by a mortgage or deed to secure debt covering
any interest of Landlord in the Premises or the Building.

     (e) Notwithstanding anything herein to the contrary, in the event the holder of any
indebtedness secured by a mortgage or deed to secure debt covering the Premises or Building
requires that any insurance proceeds be paid to it, then Landlord shall have the right to
terminate this Lease by delivering written notice of termination to Tenant within fifteen
(15) days after such requirement is made by any such holder, whereupon the Lease shall end
on the date of such damage as if the date of such damage were the date originally fixed in
this Lease for the expiration of the Lease Term.

     (f) If any such casualty stated in this Section 4.6 occurs, Landlord shall not be
liable to Tenant for inconvenience, annoyance, loss of profits, expenses or any other type
of injury or damage resulting from the repair of any such damage, or from any repair,
modification, arranging or rearranging of any portion of the Premises or any part or all of
the Building or for termination of this Lease as provided in this Section 4.6.

     4.7 Eminent Domain.

     (a) If all or any substantial part of the Building or of the Premises should be taken
for any public or quasi-public use under governmental law, ordinance or regulation or by
right of eminent domain, or by private purchase in lieu thereof, and the taking would
prevent or materially interfere with Tenant’s use of the Premises for the purpose for which
it is then being used, this Lease shall terminate effective when the physical taking shall
occur in the same manner as if the date of such taking were the date originally fixed in
this Lease for the expiration of the Lease Term.

     (b) If part of the Building or Premises is taken for any public or quasi-public use
under any governmental law, ordinance or regulation, or by right of eminent domain or by
private purchase in lieu thereof, and this Lease is not terminated as provided in subsection
(a) above, this Lease shall not terminate

5

 

but the Base Rental and Rental Adjustment payable hereunder during the unexpired
portion of this Lease shall be reduced to such extent, if any, as may be fair and reasonable
under all of the circumstances and Landlord shall undertake to restore the Building and
Premises to a condition suitable for Tenant’s use, as near to the condition thereof
immediately prior to such taking as is reasonably feasible under the circumstances.

     (c) Tenant shall not share in any condemnation award or payment in lieu thereof or in
any award for damages resulting from any grade change of adjacent streets, the same being
hereby assigned to Landlord by Tenant; provided, however, that Tenant may, to the extent
provided by law, separately claim against and receive from the condemning authority, if
legally payable, compensation for Tenant’s removal, relocation costs, loss of business,
business interruption and loss of trade fixtures, but only if and to the extent no such
claim or award therefor will reduce or affect Landlord’s awards.

     (d) Notwithstanding anything to the contrary contained in this Section 4.7, if during
the Lease Term the use or occupancy of any part of the Building or Premises shall be taken
or appropriated temporarily for any public or quasi-public use under any governmental law,
ordinance or regulation, or by right of eminent domain, this Lease shall be and remain
unaffected by such taking or appropriation and Tenant shall continue to pay in full all
rental payable hereunder by Tenant during the Lease Term provided Tenant’s Premises is not
affected. In the event of any such temporary appropriation or taking, Tenant shall be
entitled to receive that portion of any award which represents compensation for the loss of
use or occupancy of the Premises during the Lease Term, and Landlord shall be entitled to
receive that portion of any award which represents the cost of restoration and compensation
for the loss of use or occupancy of the Premises after the end of the term of this Lease.

     4.8 Reports of Defects. Tenant shall report to Landlord immediately in writing any
damage to or defective condition in or about the Building or Premises known to Tenant.

     4.9 Landlord’s Right to Enter Premises. Tenant shall not change the locks on any
entrance to the Premises or install additional locks without Landlord’s prior written consent,
which consent shall not be unreasonably withheld or delayed by Landlord. Upon Tenant’s written
request to Landlord, Landlord will make a reasonable change of locks on behalf of Tenant and at
Tenant’s sole cost and expense. Landlord and its agents, employees and contractors upon
forty-eight (48) hours’ prior telephonic notice shall have the right to enter the Premises at such
times as Landlord deems reasonably necessary to make necessary repairs, additions, alterations and
improvements to the Building, including, without limitation, the erection, use and maintenance of
pipes and conduits and repairs to adjacent premises or other premises. Landlord shall also be
allowed to take into and through the Premises any and all needed materials that may be required to
make such repairs, additions, alterations and improvements. During such time as work is being
carried on, in or about the Premises, provided such work is carried out in a manner so as not to
interfere unreasonably with the conduct of Tenant’s business therein, the rent provided herein
shall in no wise abate. In the event of emergency, or if otherwise necessary to prevent injury to
persons or damage to property, such entry to the Premises may be made without prior notice and by
force, if necessary.

V

USE AND SERVICES

     5.1 Use. Tenant shall use the Premises for the purposes stated in the Lease Summary
and for no other purpose. Tenant shall not use the Premises for any illegal purpose, nor violate
any statute, regulation, rule or order of any governmental body in its use thereof, nor create or
allow to exist any nuisances or trespasses, nor do any act in or about the Premises or bring
anything onto or into the Premises which will in any way increase the rate of insurance on the
Premises nor deface or injure the Premises or overload the floor of the Premises. Tenant shall
have access to the Premises seven days per week, twenty-four hours per day, at which time the
services set forth in Section 5.2 below shall be available (except as otherwise noted):

     5.2 Services, Furniture and Equipment. Landlord agrees to provide to Tenant the
following:

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     (a) Heating and air-conditioning service from 8:00 a.m. to 6:00 p.m., Monday through
Friday and 8:00 a.m. to 12:00 p.m. Saturday, holidays excepted;

     (b) Use of furniture in the Premises consisting of eleven (11) existing Knoll cubicles
that are 8’ x 8’ in size;

     (c) Access to and use of the employee cafeteria located at 2100 Lake Park Drive during
normal hours of cafeteria service subject to business conditions;

     (d) Access to and use of mail room services excluding postage costs on outbound mail,
parcels and COD costs on inbound shipments;

     (e) Shared access to the liquid nitrogen tank located in the truck court of the
Building;

     (f) Janitorial services and those service required to maintain a first class office
complex (through the Landlord’s property management company);

     (g) Electric current in quantity consistent with past operation of the Building;

     (h) Campus security guard service 24 hours per day, seven days per week, 365 days per
year without interruption; and

     (i) Campus reception services to include visitor management.

VI

COMPLIANCE WITH LAWS

     6.1 Tenant’s Compliance with Laws. Tenant shall comply, at its own expense, with all
statutes, regulations, rules, ordinances and orders of any governmental body, department or agency
thereof which apply to or result from Tenant’s use or occupancy of the Premises and shall abide by
and observe the Rules and Regulations attached to this Lease as Exhibit “B” and such other
reasonable rules and regulations for the use, occupancy or operation of the Building as may
hereafter be established in writing by Landlord.

     6.2 Building Alterations. If, in order to maintain the Building as an office building
or otherwise, Landlord shall be required by any governmental authority to repair, alter, remove,
construct, reconstruct or improve any part or all of the Building or Premises, Tenant’s obligations
under this Lease will not be affected, provided, however, that if such action by Landlord shall
render the Premises wholly unfit for occupancy and if, in Landlord’s reasonable estimation, it
cannot complete such acts within ninety (90) days, then at the option of Tenant to be exercised by
giving written notice to Landlord within sixty (60) days following the date of notice to Landlord
by such governmental authority, this Lease shall terminate on the date of such election and Tenant
shall immediately surrender the Premises to Landlord. In such event Tenant shall continue to owe
and pay rent and other charges up to but not beyond the time of such surrender. If Tenant shall
elect not to terminate this Lease as provided above, Landlord and Tenant shall have the same
respective rights and obligations as provided above in Sections 4.7(b) and (c), and the provisions
of Section 4.6(f) shall apply regardless of whether or not Tenant elects to terminate this Lease.

VII

INSURANCE, LIABILITY AND INDEMNIFICATION

     7.1 Insurance.

     (a) Tenant agrees to carry fire and extended coverage insurance insuring Tenant’s
interest in its improvements and betterments to the Premises and any and all furniture,
equipment, supplies and other

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property owned, leased, held or possessed by it and contained therein, such insurance
coverage to be in an amount equal to the full insurable value of such improvements and
property.

     (b) Tenant also agrees to carry a policy or policies of worker’s compensation and
commercial general liability insurance, including personal injury and property damage, with
contractual liability endorsement, in the amount of Five Hundred Thousand Dollars
($500,000.00) for property damage and One Million Dollars ($1,000,000.00) per occurrence for
personal injuries or deaths of persons occurring in or about the Premises. Said policies
shall: (i) name Landlord as an additional insured, (ii) be issued by an insurance company
which is reasonably acceptable to Landlord and licensed to do business in the State of
Georgia, and (iii) provide that said insurance shall not and may not be canceled unless
thirty (30) days prior written notice shall have been given to Landlord. Said policy or
policies, or certificates thereof, shall be delivered to Landlord by Tenant upon
commencement of the term of the Lease and upon each renewal of said insurance.

     (c) Landlord shall keep the Building insured during the Term against loss or damage by
fire, casualty or other insurable hazards and extended coverage in an amount at least equal
to the replacement cost of the Building. Landlord shall also carry a policy or policies of
worker’s compensation and commercial general liability insurance, including personal injury
and property damage, with contractual liability endorsement, in the amount of Five Hundred
Thousand Dollars ($500,000.00) for property damage and One Million Dollars ($1,000,000.00)
per occurrence for personal injuries or deaths of persons occurring in or about the
Premises.

     7.2 Waiver of Subrogation. Anything in this Lease to the contrary notwithstanding,
neither party shall be liable to the other for damages arising out of the damage to or destruction
of the contents of the Premises or for damage to or destruction of the Premises or the Building, or
by fire or other casualty which loss would be covered by a standard fire and extended risk
insurance policy, whether or not such damage or destruction is the result of negligence on the part
of either party, or its agents, servants, or employees, it being the understanding and agreement of
the parties is obligated to carry its own insurance against such risks and that each party will
look to its insurance for indemnity against any such damage. Neither Party shall have any interest
in the other’s insurance or the proceeds thereof.

     7.3 Indemnity by Tenant. Tenant agrees to indemnify and hold Landlord harmless from
and defend Landlord against any and all claims or liability for any injury or death to any of
Tenant’s employees, guests, invitees, agents or contractors, or damage to any property whatsoever:

     (a) either (i) occurring in, on or about the Premises, or (ii) occurring in, on or
about any facilities (including, without limitation, elevators, stairways, passageways or
hallways) the use of which Tenant may have in conjunction with other tenants of the
Building, when such injury, death or damage shall be caused by the act, neglect or fault of,
or omission of any duty with respect to the same, by Tenant, its agents, employees,
contractors, invitees, licensees, tenants or assignees;

     (b) arising from any work or thing whatsoever done by or on behalf of Tenant in or
about the Premises or from transactions of the Tenant concerning the Premises;

     (c) arising from any breach or event of default on the part of the Tenant in the
performance of any covenant or agreement on the part of the Tenant to be performed pursuant
to the terms of this Lease; or

     (d) otherwise arising from any act or neglect of the Tenant, or any of its agents,
employees, contractors, invitees, licensees, tenants or assignees.

     7.4 Limitation of Liability. LANDLORD’S OBLIGATIONS AND LIABILITY WITH RESPECT TO
THIS LEASE SHALL BE LIMITED SOLELY TO LANDLORD’S INTEREST IN THE BUILDING, AS SUCH INTEREST IS
CONSTITUTED FROM TIME TO TIME, AND NEITHER LANDLORD (BEYOND ITS INTEREST IN THE BUILDING) NOR ANY
OFFICER, DIRECTOR, SHAREHOLDER, MEMBER, TRUSTEE,

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BENEFICIARY OR PARTNER OF LANDLORD SHALL HAVE ANY PERSONAL LIABILITY WHATSOEVER WITH RESPECT
TO THIS LEASE. IN ANY ACTION OR PROCEEDING BROUGHT TO ENFORCE THE OBLIGATION OF LANDLORD TO TENANT
UNDER THIS LEASE, LANDLORD AND TENANT AGREE THAT ANY FINAL JUDGMENT OR DECREE SHALL BE ENFORCEABLE
AGAINST LANDLORD ONLY TO THE EXTENT OF LANDLORD’S INTEREST IN THE BUILDING, AS AFORESAID, AND ANY
SUCH JUDGMENT OR DECREE SHALL NOT BE CAPABLE OF EXECUTION AGAINST, NOR BE A LIEN ON, ANY ASSETS OF
LANDLORD OTHER THAN ITS INTEREST IN THE BUILDING, AS AFORESAID.

VIII

EVENTS OF DEFAULT AND RELATED REQUIREMENTS

     8.1 Default and Remedies.

     (a) The occurrence of any of the following shall constitute an event of default
(“Default”) by Tenant hereunder:

     (i) The Base Rental or additional rental payable under this Lease is not paid
within five (5) business days from designated due date;

     (ii) Tenant’s interest in the Lease or the Premises shall be subjected to any
attachment, levy or sale pursuant to any order or decree entered against Tenant in
any legal proceeding and such order or decree shall not be vacated within thirty (30)
days of entry thereof;

     (iii) Tenant breaches or fails to comply in any material respect with any of the
Rules and Regulations in Exhibit “B” hereto, as the same may hereafter be amended
from time to time, and such breach or failure shall continue for more than thirty
(30) days subsequent to the date of receipt by Tenant of written notice of such
breach or failure from Landlord; provided, however, that the foregoing shall not
apply to amended rules that unreasonably interfere with Tenant’s intended use of the
Premises.

     (iv) Tenant breaches or fails to comply with any other term, provision,
condition or covenant of this Lease, and such breach or failure shall continue for
more than thirty (30) days subsequent to the date of receipt by Tenant of written
notice of such breach or failure from Landlord if the matter in question is not
reasonably susceptible of cure by Tenant within the 30-day period, then Tenant shall
have such additional time as may reasonably be necessary, but no more than an
additional seventy (70) days, within which to effect curative action provided that
Tenant institutes the curative action within the 30-day period and prosecutes the
same diligently to completion;

     (v) Tenant, if a corporation, joint venture, partnership, limited liability
company, limited partnership or trust, without Landlord’s prior written consent and
the written assumption of this Lease by another party approved by Landlord, both in
Landlord’s discretion, shall be dissolved or its status as an entity is terminated;
or

     (vi) If Tenant is a joint venture, trust, general partnership, limited
partnership or limited liability company, there shall be instituted by or against any
one or more general partners, trustees or managers of Tenant, without final dismissal
thereof within thirty (30) days of the date of institution, of any proceeding under
state insolvency laws or of any proceeding under the United States Bankruptcy Code.

     (b) Upon the occurrence of a Default, Landlord shall have the option to do and perform
any one or more of the following in addition to, and not in limitation of, any other remedy
or right permitted it at law or in equity or by this Lease:

9

 

     (i) Landlord, with or without terminating this Lease, may immediately or at any
time thereafter reenter the Premises and perform, correct or repair any condition
which shall constitute a failure on Tenant’s part to keep, observe, perform, satisfy
or abide by any term, condition, covenant, agreement or obligation of this Lease or
of the Rules and Regulations now in effect or hereafter adopted, and Tenant shall
fully reimburse and compensate Landlord on demand for all costs and expenses incurred
by Landlord in such performance, correction or repairing, including accrued interest
as provided in the next sentence. All sums so expended to cure Default shall accrue
interest from the date of demand until date of payment at a rate of interest which is
the lower of (x) a per annum rate equal to the Prime Rate plus two percent (2%), or
(y) sixteen percent (16%) per annum, but in no event at a rate higher than that
permitted by applicable law.

     (ii) Landlord, with or without terminating this Lease, may immediately or at any
time thereafter demand in writing that Tenant vacate the Premises and thereupon
Tenant shall vacate the Premises and remove therefrom all property thereon belonging
to or placed on the Premises by, at the direction of or with consent of Tenant within
ten (10) days of receipt by Tenant of such notice from Landlord, whereupon Landlord
shall have the right to reenter and take possession of the Premises. Any such
demand, reentry and taking possession of the Premises by Landlord shall not of itself
constitute an acceptance by Landlord of a surrender of this Lease or of the Premises
by Tenant and shall not of itself constitute a termination of this Lease by Landlord.

     (iii) Landlord, with or without terminating this Lease, may immediately or at
any time thereafter reenter the Premises and remove therefrom Tenant and all property
belonging to or placed on the Premises by, at the direction of or with consent of
Tenant. Any such reentry and removal by Landlord shall not of itself constitute an
acceptance by Landlord of a surrender of this Lease or of the Premises by Tenant and
shall not of itself constitute a termination of this Lease by Landlord.

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

     (v) Landlord may immediately or at any time thereafter terminate this Lease, and
this Lease shall be deemed to have been terminated upon receipt by Tenant of written
notice of such termination; upon such termination Landlord shall recover from Tenant
all damages Landlord may suffer by reason of such termination including, without
limitation, unamortized sums expended by Landlord for construction of Tenant
Improvements, all arrearages in rentals, costs, charges, additional rentals and
reimbursements, the cost (including court costs and reasonable attorneys’ fees) of
recovering possession of the Premises, the cost of any alteration of or repair to the
Premises which is necessary or proper to prepare the same for reletting and, in
addition thereto, Landlord at its election shall have and recover as damages from
Tenant rents and other charges which Landlord would be entitled to receive from
Tenant pursuant to the provisions of clause (iv) of this subsection (b) above if the
Lease were not terminated.

     (c) In the event Landlord institutes dispossessory proceedings or dispossesses or
evicts Tenant by summary proceedings or otherwise, Landlord shall have the option to do and
perform any one or more of the foregoing in addition to, and not in limitation of, any
remedy or right permitted it by law or in

10

 

equity or by this Lease. Specifically, without limiting the foregoing, in the event
Landlord institutes dispossessory proceedings or dispossesses or evicts Tenant by summary
proceedings or otherwise and/or re-enters and takes possession of the Premises, Tenant shall
remain liable for all rent (including Base Rental, Rental Adjustment and additional rental)
and all other charges under the Lease for the remainder of the Lease Term.

     (d) No course of dealing between Landlord and Tenant or any failure or delay on the
part of Landlord in exercising any rights of Landlord under this Section 8.1 or under any
other provisions of this Lease shall operate as a waiver of any rights of Landlord hereunder
or under any other provisions of this Lease, nor shall any waiver of a Default on one
occasion operate as a waiver of any subsequent Default or of any other Default. No express
waiver shall affect any condition, covenant, rule or regulation other than the one specified
in such waiver and that one only for the time and in the manner specifically stated.

     (e) The exercise by Landlord of any one or more of the rights and remedies provided in
this Lease shall not prevent the subsequent exercise by Landlord of any one or more of the
other rights and remedies herein provided. All remedies provided for in this Lease are
cumulative and may, at the election of Landlord, be exercised alternatively, successively or
in any other manner and are in addition to any other rights provided for or allowed by law
or in equity.

     8.2 Insolvency or Bankruptcy. The making by Tenant of an assignment for the benefit
of its creditors, the appointment under state law of a receiver to take possession of all or
substantially all of Tenant’s assets, or the voluntary or involuntary involvement of Tenant as a
principal in a state law insolvency or reorganization proceeding, may, at the option of Landlord,
be deemed and declared a Default by Tenant hereunder. Tenant covenants and agrees promptly to
notify Landlord in writing of (i) the occurrence of any of the events described in the preceding
sentence or any event similar thereto, whether occurring in Georgia or any other jurisdiction, and
(ii) the institution by or against Tenant of any proceeding under the United States Bankruptcy Code
including a copy of the petition filed to initiate such proceeding.

     8.3 Late Payments. Tenant shall pay, in the event Base Rental, additional rental or
other charge to be paid by Tenant hereunder are not paid when due, (A) a late fee of five percent
(5%) of the amount past due, which late fee Tenant acknowledges is an agreed reimbursement to
Landlord for the administrative expense incurred by Landlord as a result of Tenant’s late payment
and not a penalty; and (B) interest on the amount past due (excluding late fees) at a rate which is
the lower of (x) a per annum rate equal to the Prime Rate plus two percent (2%), or (y) sixteen
percent (16%) per annum, but in no event at a rate higher than that permitted by applicable law,
from due date until paid. Should Tenant make a partial payment of past due amounts, the amount of
such partial payment shall be applied first, to late fees, second, to accrued but unpaid interest,
and third, to past due amounts, in inverse order of their due date.

     8.4 Attorneys’ Fees for Collection. If any Base Rental, additional rental or other
debt owing by Tenant to Landlord hereunder is collected by or through an attorney-at-law, Tenant
agrees to pay the reasonable attorneys’ fees incurred by Landlord in such collection action.

     8.5 No Waiver of Rights. No failure or delay of either party to exercise any right or
power given it herein or to insist upon strict compliance by the other party of any obligation
imposed on it herein and no custom or practice of either party hereto at variance with any term
hereof shall constitute a waiver or a modification of the terms hereof by either party or any right
it has herein to demand strict compliance with the terms hereof by the other party. Neither party
has or shall have any authority to waive any provision of this Lease unless such waiver is
expressly made in writing.

IX

MISCELLANEOUS PROVISIONS

     9.1 Brokers. Tenant represents and warrants to Landlord that (except with respect to
any broker identified in the Lease Summary as “Tenant’s Broker”) no broker, agent, commission
salesperson or other person has represented Tenant in the negotiations for and procurement of this
Lease and of the Premises and that (except

11

 

with respect to any broker identified in the Lease Summary) no commissions, fees or
compensation of any kind are due and payable in connection herewith to any broker, agent,
commission salesperson or other person. Tenant agrees to indemnify and hold Landlord harmless from
all loss, cost and damage (including reasonable attorneys’ fees and court costs) suffered or
incurred by Landlord as a result of a breach by Tenant of the representation and warranty contained
in the immediately preceding sentence or as a result of Tenant’s failure to pay commissions, fees
or compensation due to any broker who represented Tenant, whether or not disclosed. Tenant
represents and discloses to Landlord that Tenant’s Broker identified in the Lease Summary has
represented Tenant. The commissions or other compensation due and payable to Tenant’s Broker by
reason of this Lease will be paid by Landlord pursuant to separate written agreements. Landlord
represents and warrants to Tenant that (except with respect to any broker identified in the Lease
Summary as “Landlord’s Broker”) no broker, agent, commission salesperson or other person has
represented Landlord in the negotiations for and procurement of this Lease and of the Premises and
that (except with respect to any broker identified in the Lease Summary) no commissions, fees or
compensation of any kind are due and payable in connection herewith to any broker, agent,
commission salesperson or other person. Landlord agrees to indemnify and hold Tenant harmless from
all loss, cost and damage (including reasonable attorneys’ fees and court costs) suffered or
incurred by Tenant as a result of a breach by Landlord of the representation and warranty contained
in the immediately preceding sentence or as a result of Landlord’s failure to pay commissions, fees
or compensation due to any broker who represented Landlord, whether or not disclosed. Landlord
represents and discloses to Tenant that Landlord’s Broker identified in the Lease Summary has
represented Landlord. The commissions or other compensation due and payable to Landlord’s Broker
by reason of this Lease will be paid by Landlord pursuant to separate written agreements.

     9.2 Addresses and Notices. All notices, unless oral notice is specified, required or
permitted to be given with respect to this Lease in order to be effective shall be in writing and
shall be sent to the address of the intended party at its address specified in the Lease Summary.
Notices shall be sent either by local or overnight courier service, or by the United States Postal
System, certified or registered mail, return receipt requested, with postage and charges prepaid.
Notices by courier service shall be deemed effective on date of delivery to the specified address.
Notices by the United States Postal System shall be deemed effective on the third (3rd) business
day subsequent to date of postmark or on the date of actual receipt by the addressee, whichever
shall be the earlier. In the event of a change of address by either party, such party shall give
written notice thereof in accordance with the foregoing.

     9.3 Entire Agreement and Exhibits. This Lease constitutes and contains the sole and
entire agreement of Landlord and Tenant with respect to the Premises and no prior or
contemporaneous oral or written representation or agreement between the parties and affecting the
Premises shall have legal effect. No modification or amendment of this Lease shall be binding upon
the parties unless such modification or amendment is in writing and signed by Landlord and Tenant.
The content of each and every exhibit, attachment and the Lease Summary which is referenced in this
Lease as being attached hereto is incorporated into this Lease as fully as if set forth in the body
of this Lease.

     9.4 Subordination and Attornment. Tenant shall, upon demand of Landlord, at any time
or times, execute, acknowledge and deliver to Landlord or to the holder of any mortgage, deed to
secure debt, deed of trust or other instrument affecting or encumbering the Building or the land
underlying the Building or to the lessor under any ground lease affecting the Building or the land
underlying the Building, without expense, any and all instruments that may be necessary to make
this Lease superior to any such mortgage, deed to secure debt, deed of trust or other instrument or
the grant of any such ground lease, and each renewal, modification, consolidation, replacement and
extension thereof.

     9.5 Estoppel Certificate/Amendment. At any time and from time to time, Tenant, on or
before the date specified in a request therefor made by Landlord, which date shall not be earlier
than ten (10) days from the making of such request, covenants and agrees to execute, acknowledge
and deliver to Landlord (a) a certificate evidencing (i) whether or not this Lease is in full force
and effect, (ii) whether or not this Lease has been amended in any manner, and if so specifying
such amendment or amendments, (iii) whether or not there are any existing events of default on the
part of Landlord hereunder to the knowledge of Tenant and specifying the nature of such events of
default, if any, and (iv) the date to which rent, and other amounts due hereunder, if any, have
been paid, or (b) amendments to this Lease required by the holder of a mortgage on the Building, as
long as such amendments do not increase the obligations or diminish the rights and benefits of
Tenant hereunder. Each certificate delivered

12

 

pursuant to this Section may be relied on by any prospective purchaser or transferee of Landlord’s
interest hereunder or of any part of Landlord’s property or by any mortgagee of Landlord’s interest
hereunder or of any part of Landlord’s property or by an assignee of any such mortgagee or by any
ground lessor of Landlord’s interest hereunder.

     9.6 Severability. If any clause or provision of this Lease is or becomes illegal,
invalid or unenforceable because of present or future laws or any rule or regulation of any
governmental body or entity, effective during the Lease Term, the intention of the parties hereto
is that the remaining parts of this Lease shall not be affected thereby, unless the lack of such
clause or provision is, in the sole determination of Landlord, essential to the rights of both
parties in which event Landlord shall have the right to terminate this Lease on written notice to
Tenant.

     9.7 Captions. The captions used in this Lease are for convenience only and do not in
any way limit or amplify the terms and provisions hereof.

     9.8 Successors and Assigns. The words “Landlord” and “Tenant” as used herein shall
include the respective contracting party, whether singular or plural, and whether an individual,
masculine or feminine, or a corporation, general partnership, joint venture, limited partnership or
trust. The provisions of this Lease shall inure to the benefit of and be binding upon Landlord and
Tenant, and their respective successors, heirs and assigns, subject, however, in the case of
Tenant, to the provisions of Section 2.4 hereof. It is understood and agreed that the term
“Landlord”, as used in this Lease, means only the owner(s), or the lessee(s), from time to time of
the Building and/or the land underlying the Building so that in the event of any sale or sales of
the Building and/or the land underlying the Building, or of any lease thereof, the Landlord named
herein shall be and hereby is entirely freed and relieved of all covenants and obligations of
Landlord hereunder accruing thereafter to the extent of such sale or lease, and it shall be deemed
without further agreement that the purchaser, or the lessee, as the case may be, has assumed and
agreed, to the same extent, to carry out any and all covenants and obligations of Landlord
hereunder during the period such party has possession of all or such portion of the Building and/or
the land underlying the Building which it has purchased or leased. Should all of the land
underlying the Building and the entire Building be severed as to ownership by sale and/or lease,
then, unless the Tenant is otherwise notified to the contrary in writing, either the owner of the
entire Building or the lessee of the entire Building, as the case may be, which has the right to
lease space in the Building to tenants shall be deemed the “Landlord”. Tenant shall be bound to
any successor landlord for all the terms, covenants and conditions hereof and shall execute any
attornment agreement not in conflict herewith at the request of any successor landlord.

     9.9 Georgia Law. The laws of the State of Georgia shall govern the interpretation,
validity, performance and enforcement of this Lease.

     9.10 Time is of the Essence. Time is of the essence of this Lease. Unless
specifically provided otherwise, all references to terms of days or months shall be construed as
references to calendar days or calendar months, respectively.

     9.11 Execution. This Lease may be executed in any number of counterparts, each of
which shall be deemed an original and any of which shall be deemed to be complete in itself and may
be introduced into evidence or used for any purpose without the production of the other
counterparts.

     9.12 Force Majeure. A party to this Lease shall be excused from the performance of
its duties and obligations under this Lease, except obligations for the payment of money such as
Base Rental, for the period of delay, but in no event longer than ninety (90) days, caused by labor
disputes, governmental regulations, riots, war, terrorism, insurrection, acts of God or other
causes beyond the control of the party whose performance is being excused (but such causes shall
not include insufficiency of funds).

     9.13 Mutual Warranty of Authority. Landlord warrants to Tenant that Landlord is a
validly existing corporation under the laws of the State of Delaware, that its entry into and
performance of this Lease has been duly authorized, and that the party executing this Lease on its
behalf is duly authorized to do so. Tenant, if other than an individual, warrants to Landlord that
Tenant is a validly existing legal entity under the laws of the state of Georgia and that it is
duly qualified to do business in the State of Georgia, that its entry into and performance of this
Lease

13

 

has been duly authorized, and that the officer(s), partner(s) or trustee(s), as applicable,
executing this Lease on its behalf are duly authorized to do so.

     9.14 Parking Rights. For use by Tenant and its employees and invitees, Landlord shall
provide for Tenant’s non-exclusive use a parking ration of 3 spaces per 1000 rentable square feet
which shall be surface spaces at no additional cost to Tenant.

     9.15 Recordation of Lease. This Lease is not in recordable form, and Tenant agrees
not to record or permit the recording of this Lease.

     9.16 Hazardous Substances.

     (a) Tenant hereby covenants that Tenant shall not cause or permit any Hazardous
Substances to be placed, held, located or disposed of in, on or at the Premises or any part
thereof, and neither the Premises nor any part thereof shall ever be used as a dump site or
storage site (whether permanent or temporary) for any Hazardous Substances during the Lease
Term. Tenant hereby covenants that it shall dispose of all laboratory chemicals and medical
waste in accordance with all applicable laws, regulations and rules.

     (b) Tenant hereby agrees to indemnify Landlord and hold Landlord harmless from and
against any and all losses, liabilities, including strict liability, damages, injuries,
expenses, including reasonable attorneys’ fees, costs of any settlement or judgment and
claims of any and every kind whatsoever paid, incurred or suffered by, or asserted against,
Landlord by any person or entity or governmental agency for, with respect to, or as a direct
or indirect result of, the presence on or under, or the escape, seepage, leakage, spillage,
discharge, emission, discharging or release from, the Premises of any Hazardous Substance,
laboratory chemicals and/or medical waste (including, without limitation, any losses,
liabilities, including strict liability, damages, injuries, expenses, including reasonable
attorneys’ fees, costs of any settlement or judgment or claims asserted or arising under the
Comprehensive Environmental Response, Compensation and Liability Act, any so-called federal,
state or local “Superfund” or “Superlien” laws, statute, law, ordinance, code, rule,
regulation, order or decree regulating, relating to or imposing liability, including strict
liability, substances or standards of conduct concerning any Hazardous Substance, laboratory
chemicals and/or medical waste), provided, however, that the foregoing indemnity is limited
to matters arising solely from Tenant’s violation of the covenant contained in subsection
(a) of this Section 9.16.

     (c) For purposes of this Lease, “Hazardous Substances” shall mean and include those
elements or compounds which are contained in the list of hazardous substances now or
hereafter adopted by the United States Environmental Protection Agency (the “EPA”) or the
list of toxic pollutants designated by Congress or the EPA or which are now or hereafter
defined as hazardous, toxic, pollutant, infectious or radioactive by any other Federal,
state or local statute, law, ordinance, code, rule, regulation, order or decree regulating,
relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic
or dangerous waste, substance or material, as now or at any time hereafter in effect.

     (d) Landlord shall have the right but not the obligation, and without limitation of
Landlord’s rights under this Lease, to enter onto the Premises or to take such other actions
as it deems necessary or advisable to cleanup, remove, resolve or minimize the impact of, or
otherwise deal with, any Hazardous Substance following receipt of any notice from any person
or entity (including without limitation the EPA) asserting the existence of any Hazardous
Substance in, on or at the Premises or any part thereof which, if true, could result in an
order, suit or other action against Tenant or Landlord or both. All reasonable costs and
expenses incurred by Landlord in the exercise of any such rights, which costs and expenses
result from Tenant’s violation of the covenant contained in subsection (a) above, shall be
deemed additional rental under this Lease and shall be payable by Tenant upon demand.

     (e) This Section 9.16 shall survive cancellation, termination or expiration of this
Lease.

14

 

     (f) Except as otherwise provided herein, Landlord assumes all responsibility for
compliance by the property/site/facility with all environmental laws, rules and regulations
and agrees to and does hereby hold Tenant harmless from any claims, liabilities, fines or
penalties which may be made or levied against Tenant on account thereof for any pre—lease
or pre-existing conditions. Landlord represents that the Premises are free from asbestos
and other hazardous substances.

     9.17 Names. Upon written notice to Tenant, Landlord reserves the right, from time to
time, to change the name of the development, the name of the Building and the street address of the
Building. Tenant shall not, without the prior written consent of Landlord, any name given the
development, the Building or any other deceptively similar name, or use any associated service mark
or logo of the development or the Building for any purpose other than Tenant’s business address.

     9.18 Shared Communications Services. Landlord may contract with a vendor (the “Shared
Services Vendor”) to make available to tenants of the Building certain shared communications
services. With respect to such shared communications services, if and so long as available,
Landlord and Tenant agree as follows:

     (a) Tenant, at its election, may contract with Shared Services Vendor or any other
vendor for communications services. Tenant may make such election at its sole and absolute
discretion.

     (b) Tenant acknowledges and agrees that Shared Services Vendor is an independent
contractor of Landlord and not Landlord’s employee, agent, partner or joint venturer and
Tenant waives any and all right Tenant may have or claim to have to assert the contrary.

     (c) Tenant acknowledges and agrees that any cessation or interruption of shared
communications services or default by Shared Services Vendor under the terms and conditions
of Tenant’s agreement with Shared Services Vendor shall not constitute a default under this
Lease nor a constructive eviction by Landlord of Tenant. Tenant agrees that it shall not
abate or setoff against any amount of Base Rental, Rental Adjustment, additional rent or
other sum due under this Lease for any claim against Shared Services Vendor or for a default
under Tenant’s agreement with Shared Services Vendor. Tenant waives and releases Landlord
from any and all claims Tenant may have, now or in the future, against Landlord, if any,
that arise from or are related to the acts, omissions, negligence or gross negligence of
Shared Services Vendor or its agents and employees.

     9.19 Ownership and Management Disclosure. Landlord discloses to Tenant, and Tenant
acknowledges, that Landlord is the owner of record of the Building and the Premises.

     9.20 Effect of Lease Termination. No termination of this Lease by reason of exercise
of an optional right, lapse of time, failure of condition or election of a party to terminate shall
release or otherwise relieve either party from liability for breach of this Lease or from
performance of any contractual obligation provided herein accruing prior to such termination. The
possessory rights of Tenant, however, shall cease and expire as of the effective time of any such
termination.

     9.21 Quiet Enjoyment. Landlord covenants with Tenant that Tenant shall peaceably hold
and enjoy the Premises during the full term of this Lease and any extension and renewals upon
paying the rent and performing its covenants herein contained, subject only to the terms of this
Lease and any interests of record to which this Lease may be or become subject and subordinate.

15

 

     IN WITNESS WHEREOF, the parties hereto have duly executed and sealed this Lease as of the date
and year first above stated.

	 	 	 	 	 
	 	LANDLORD:

UCB, Inc., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TENANT:

GeoVax, Inc., a Georgia corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

16

 

	 	 	 	 	 

EXHIBIT “A”

FLOOR PLAN(S)

1900 LAKE PARK DRIVE

 

 

 

 

EXHIBIT “B”

RULES AND REGULATIONS

     1. The sidewalks, and public portions of the Building, such as entrances, passages,
courts, elevators, vestibules, stairways, corridors or halls and the streets, alleys or
ways surrounding or in the vicinity of the Building shall not be obstructed, even
temporarily, or encumbered by Tenant or used for any purpose other than ingress and egress
to and from the Premises.

     2. No awnings or other projections shall be attached to the outside walls of the
Building. No curtains, blinds, shades, louvered openings, tinted coating, film or screens
shall be attached to or hung in, or used in connection with, any window, glass surface or
door of the Premises, without the prior written consent of Landlord, unless installed by
Landlord.

     3. No sign, advertisement, notice or other lettering shall be exhibited, inscribed,
painted or affixed by Tenant on any part of the outside of the Premises or Building or on
corridor walls or windows or other glass surfaces (including without limitation glass
storefronts). Signs on doors shall, at Tenant’s expense, be inscribed, painted or affixed
for each tenant by sign makers approved by Landlord. In the event of the violation of the
foregoing by Tenant, Landlord may remove same without any liability, and may charge the
expense incurred by such removal to Tenant.

     4. The sashes, sash doors, skylights, windows, heating, ventilating and air
conditioning vents and doors that reflect or admit light and air into the halls,
passageways or other public places in the building shall not be covered or obstructed by
Tenant, nor shall any bottles, parcels or other articles be placed on the window sills.

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

     6. 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
or other substances shall be thrown therein. All damages resulting from any misuse of the
fixtures shall be borne by Tenant.

     7. Tenant shall not in any way deface any part of the Premises or the Building. If
Tenant desires to use linoleum or other similar floor covering, an interlining of
builder’s deadening felt shall be first affixed to the floor, by a paste or other
material, soluble in water; the use of cement or other similar adhesive materials, which
are not water soluble, are expressly prohibited.

     8. No vehicles or animals (other than seeing eye-dogs) of any kind shall be brought
into or kept in or about the Premises. No cooking shall be done or permitted by Tenant on
the Premises except in conformity to law and then only in the utility kitchen, if any, as
set forth in Tenant’s layout, which is to be primarily used by Tenant’s employees for
heating beverages and light snacks. Tenant shall not cause or permit any unusual or
objectionable odors to be produced upon or permeate from the Premises.

     9. No space in the Building shall be used for manufacturing, distribution or for the
storage of merchandise or for the sale of merchandise, goods or property of any kind at
auction.

     10. Tenant shall not make, or permit to be made, 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. Tenant shall not
throw anything out of the doors, windows or skylights or down the passageways. Tenant
shall not cause or permit any unseemly or disturbing activity or conduct to be visible
through any window, opening, doorway, glass storefront or other glass surface or any other
means of visibility that disturbs or interferes with (i) tenants or other occupants of the
building or their licensees or invitees or (ii) neighboring buildings or

 

 

premises or those having business with them, including without limitation, receptions,
parties, recreation and other activities of a social nature not directly related to
Tenant’s use of the Premises.

     11. Neither Tenant, nor any of Tenant’s servants, employees, agents, visitors or
licensees, shall at any time bring or keep upon the Premises any inflammable, combustible
or explosive fluid or chemical substance, other than reasonable amounts of cleaning fluids
or solvents required in the normal operation of Tenant’s business.

     12. No additional locks or bolts of any kind shall be placed upon any of the doors or
windows by Tenant, nor shall any changes be made in existing locks or the mechanism
thereof, without the prior written approval of Landlord and unless and until a duplicate
key is delivered to Landlord. Tenant shall, upon the termination of its tenancy, restore
to Landlord all keys of stores, offices and toilet rooms, either furnished to, or
otherwise procured by, Tenant, and in the event of the loss of any keys so furnished,
Tenant shall pay to Landlord the cost thereof.

     13. Tenant shall not overload any floor. Tenant shall obtain Landlord’s consent before
bringing any safes, freight, furniture or bulky articles into the Building and Landlord
can specify to Tenant the location for the placement of such articles. All removals, or
the carrying in or out of any safes, freight, furniture or bulky matter of any description
must take place during the hours which Landlord or its agent may determine from time to
time. Landlord reserves the right to inspect all freight to be brought into the Building
and to exclude from the Building all freight which violates any of these Rules and
Regulations or the Lease of which these Rules and Regulations are a part.

     14. Tenant shall not occupy or permit any portion of the Premises to be occupied, without
Landlord’s expressed prior written consent, as an office for a public stenographer or
typist, or for the possession, storage, manufacture or sale of liquor, narcotics, dope,
tobacco in any form, or as a barber or manicure shop, or as a public employment bureau or
agency, or for a public finance (personal loan) business; provided, however, nothing in
this sentence shall be deemed to prohibit Tenant or its employees or business invitees
from personal use of tobacco. Tenant shall not engage or pay any employees on the
Premises, except those actually working for Tenant on said premises, nor advertise for
laborers giving an address at the Building. Tenant shall not keep or utilize any jukebox,
billiard or pool table or other recreational device at or in the Premises.

     15. Tenant agrees to employ such janitorial contractor as Landlord may from time to time
designate, for any waxing, polishing and other maintenance work of the Premises and of the
Tenant’s furniture, fixtures and equipment. Tenant agrees that it shall not employ any
other cleaning and maintenance contractor, nor any individual, firm or organization for
such purpose without Landlord’s prior written consent.

     16. Landlord shall have the right to prohibit any advertising by Tenant which, in
Landlord’s opinion, tends to impair the reputation of the Building or its desirability as
a building for offices, and upon written notice from Landlord, Tenant shall refrain from
or discontinue such advertising.

     17. Landlord reserves the right to exclude from the Building between the hours of 6:00
p.m. and 7:00 a.m. and at all hours on Sundays, legal holidays and after 2:00 p.m. on
Saturdays all persons who do not sign in and out on a register in the lobby of the
Building, showing the name of the person, the Premises visited and the time of arrival and
departure. All such persons entering or leaving the Building during such times may be
expected to be questioned by the Building security personnel as to their business in the
Building. Landlord shall in no case be liable for damages for any error with regard to the
admission to or exclusion from the Building of any person. In the case of invasion, mob,
riot, public excitement or other circumstances rendering such action advisable in the
Landlord’s opinion, Landlord reserves the right to prevent access to the Building during
the continuance of the same by such action as Landlord may deem appropriate, including
closing doors.

     18. The Premises shall not be used for lodging or sleeping or for any immoral or illegal
purpose or for any other activity not appropriate, in Landlord’s sole discretion, to an
office building of the quality and stature of the Building.

 

 

     19. The requirements of Tenant will be attended to only upon application at the office of
the Building. Building employees shall not perform any work or do anything outside of
their regular duties, unless under special instructions from the office of Landlord.

     20. Canvassing, soliciting and peddling in the Building are prohibited and Tenant shall
cooperate to prevent the same.

     21. There shall not be used in any space, or in the public halls of any building, either
by Tenant or by its jobbers or others, in the delivery or receipt of merchandise, any hand
trucks, except those equipped with rubber tires and side guards. No hand trucks shall be
used in passenger elevators.

     22. Tenant, in order to obtain maximum effectiveness of the cooling system, shall lower
and/or close the blinds or drapes when sun’s rays fall directly on windows of Premises.
Tenant shall not remove the standard blinds installed in the Premises.

     23. All paneling, rounds or other wood products not considered furniture shall be of fire
retardant materials. Before installation of any such materials, certification of the
materials’ fire retardant characteristics shall be submitted to Landlord or its agents, in
a manner satisfactory to Landlord.

     24. Tenant shall not install any vending machines in the Building or Premises
without Landlord’s consent.

     25. All articles and the arrangement style, color and general appearance thereof, in the
interior of the Premises that will be visible from the exterior thereof, including,
without limitation, window displays, advertising matter, signs, merchandise, furniture and
store fixtures, shall be subject to Landlord’s approval, and, in any case, shall be
maintained in keeping with the character and standards of the development of which the
Building is a part.

     26. Landlord may waive any one or more of these Rules and Regulations for the benefit of
any particular Tenant or Tenants, but no such waiver by Landlord shall be construed as a
waiver of such Rules and Regulations in favor of any other Tenant or Tenants, nor prevent
Landlord from thereafter enforcing any such Rules and Regulations against any or all of
the Tenants of the Building.

     27. Tenant shall abide by no-smoking restrictions in all areas within the Building, other
than spaces, designated or posted by Landlord as smoking areas.

     28. These Rules and Regulations are in addition to, and shall not be construed to in any
way modify or amend, in whole or part, the terms, covenants, agreements and conditions of
the main text (including Special Stipulations) of the Lease, which text shall control in
the instance of conflict.

     29. Landlord reserves the right to make such other and reasonable rules and regulations as
in its judgment may from time to time be needed for safety, care and cleanliness of the
Building, and for the preservation of good order therein. Such other Rules and Regulations
shall be effective upon written notification of Tenant.

 

 

EXHIBIT “C” 

TENANT IMPROVEMENTS

BACKUP POWER OUTLET LIST

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Circuit	 	Equipment
	ID	 	Outlet Location	 	Voltage	 	Current	 	ID	 	Power	 	Priority
	LP-28, LP-30
	 	360D	 	208V	 	15A	 	Freezer	 	2500	 	Critical
	NC24
	 	360I	 	208V	 	15A	 	Freezer	 	2500	 	Critical
	NC25
	 	360I	 	208V	 	15A	 	Freezer	 	2500	 	Critical
	NC5
	 	360C	 	120V	 	20A	 	Freezer	 	1920	 	Critical
	LP-1
	 	360A	 	120V	 	20A	 	Roller bottle incubator	 	2400	 	High
	LP-13
	 	360D	 	120V	 	20A	 	Refrigerator	 	1300	 	High
	LP-13
	 	360D	 	120V	 	20A	 	Freezer	 	600	 	High
	LP-14
	 	360F	 	120V	 	20A	 	Refrigerator	 	300	 	High
	LP-20
	 	360E	 	120V	 	20A	 	Freezer	 	1265	 	High
	LP-23
	 	360D	 	120V	 	20A	 	Three incubators	 	1320	 	High
	LP-3
	 	360A	 	120V	 	20A	 	Chiller	 	1440	 	High
	NC1
	 	360A	 	120V	 	20A	 	Minitron incubator	 	1150	 	High
	NC10
	 	360D	 	120V	 	20A	 	Freezer	 	600	 	High
	NC11
	 	360D	 	120V	 	20A	 	Refrigerator	 	1000	 	High
	NC14
	 	360E	 	120V	 	20A	 	Refrigerator	 	1265	 	High
	NC2
	 	360A	 	120V	 	20A	 	Minitron incubator	 	1150	 	High
	NC3
	 	360A	 	120V	 	20A	 	Bioreactor	 	1300	 	High
	NC4
	 	360A	 	120V	 	20A	 	Refrigerator	 	1000	 	High
	LP-12
	 	360F	 	120V	 	20A	 	Incubator	 	400	 	High
	NC21
	 	360H	 	120V	 	20A	 	Manifold	 	120	 	High
	LP-35
	 	360A	 	120V	 	20A	 	Incubator	 	400	 	High
	L3-15
	 	360F	 	120V	 	20A	 	Laminar flow hood	 	1725	 	Low
	LP-6
	 	360E	 	120V	 	20A	 	FACSCanto	 	500	 	Low

     Total connected Critical-priority load: 9420 W

     Total connected High-priority load: 17,010 W

     Total connected Low-priority load: 2225 W

     Total connected Critical- & High-priority load: 26,430 W

     Overall total connected load: 28,655 W

 

 

ELECTRICAL IMPROVEMENTS LIST

	 	 	 	 	 
	Improvement description	 	Circuit ID*	 	Location of outlet	 
	Install 30-kW generator

	 	NA
	 	NA
	Add 120V-20A circuit

	 	NC1
	 	Room 360A back wall
	Add 120V-20A circuit

	 	NC2
	 	Room 360A back wall
	Add 120V-20A circuit

	 	NC3
	 	Room 360A right wall
	Convert circuit to 120V-20A

	 	LP-3
	 	Room 360A right wall
	Add 120V-20A circuit

	 	NC4
	 	Room 360A front wall
	Add 120V-20A circuit

	 	NC5
	 	Hallway 360C end
	Add 120V-20A circuit

	 	NC6
	 	Room 360B, 1st wall
	Add 120V-20A circuit

	 	NC7
	 	Room 360B, 2nd wall
	Add 120V-20A circuit

	 	NC8
	 	Room 360B, 3rd wall
	Add 120V-20A circuit

	 	NC9
	 	Room 360B, 4th wall
	Add 120V-20A circuit

	 	NC10
	 	Room 360D, by flammable cabinet
	Adapt circuit to 208V-15A (NEMA 6-15P)

	 	 LP-28,30
	 	Room 360D, current chiller location
	Wire LP-11 outlets in 360A to new circuit

	 	 NC12
	 	Room 360A
	Add 120V-20A circuit

	 	NC11
	 	Room 360D, near chiller
	Add 120V-20A circuit

	 	NC13
	 	Room 360D, corner
	Add 120V-20A circuit

	 	NC14
	 	Room 360E, blank wall
	Add 208V-15A circuit

	 	NC15
	 	Room 360E, wall facing office
	Add 120V-20A circuit

	 	NC16
	 	Room 360E, wall facing office
	Add 120V-20A circuit

	 	NC17
	 	Room 360E, along bench
	Add 120V-20A circuit

	 	NC18
	 	Room 360E, along bench
	Add 120V-20A circuit

	 	NC19
	 	Room 360E, along bench
	Add 120V-20A circuit

	 	NC20
	 	Room 360E, along bench
	Add 120V-20A circuit

	 	NC21
	 	Room 360H, “oven” corner
	Add 120V-20A circuit

	 	NC22
	 	Room 360H, next to sink
	Add 208V circuit (Current TBD)

	 	NC23
	 	Room 360H, current fume hood location
	Add 208V-15A circuit

	 	NC24
	 	Room 360I, back wall
	Add 208V-15A circuit

	 	NC25
	 	Room 360I, back wall

 

*NCx indicates New Circuit x

 

 

PLUMBING IMPROVEMENTS LIST

	 	 	 
	Location	 	Description
	Room 360A

	 	Remove safety shower and eyewash
	Room 360A

	 	Add CO2 valves with hose barb for incubators
	Room 360A

	 	Replace all 3/8” CO2 pipes (currently labeled
	 

	 	for nitrogen) with 1/2” copper
	Rooms 360A and 370A

	 	Run two 1/2” copper pipes (one for air and
	 

	 	one for O2) with shutoff valves and hose barbs at
	 

	 	both ends between source (370A) and point of
	 

	 	use (360A).
	Room 360D

	 	Adapt existing Nitrogen plumbing to four hoods
	 

	 	to feed three incubators with CO2 (hose barb
	 

	 	fittings)
	Room 360F

	 	Add CO2 valve with hose barb for incubator
	Room 360F

	 	Cut and cap nitrogen pipe on both sides of
	 

	 	exterior wall
	Room 360F

	 	Add sink with foot control
	Room 360H

	 	Run CO2 pipe from ceiling (using pipes
	 

	 	currently marked for nitrogen) down wall to
	 

	 	connect to CO2 manifold
	Room 360H

	 	Connect deionized water system to cold water
	 

	 	supply
	Room 360H

	 	Connect deionized water system to dishwasher
	Room 360H

	 	Connect deionized water system to autoclave
	Room 360H

	 	Connect autoclave drain to existing drain pipe
	Room 360H

	 	Connect autoclave to cold water supply

NOTE: NEED TO DISCUSS HVAC REQUIREMENTS – POSITIVE VS. NEGATIVE PRESSURE IN ROOMS AND
ADDITION OF VENTILATION OR HEAT SINKS TO DEAL WITH HEAT GENERATED BY EQUIPMENT

 

 

CARPENTRY AND MOVING IMPROVEMENTS LIST

	 	 	 
	Location	 	Description
	Room 360A

	 	Remove entire bench along left wall
	Room 360A

	 	Remove entire bench along back wall
	Room 360B

	 	Remove carpet and replace with tile
	Room 360C

	 	Remove carpet and replace with tile
	Hallway 360C

	 	Add door and small section of wall to separate hallway (lab)
	 

	 	from office
	Room 360A

	 	Add adjustable track shelving along right wall
	Room 360D

	 	Remove 7 fume hoods
	Room 360D

	 	Install adjustable shelving along back wall and open bench
	Room 360D

	 	Remove small section of bench between the 4-hood bench
	 

	 	and the bench along the back wall. Remove chiller.
	Room 360D

	 	Remove all casework under one hood (the one next to the
	 

	 	walk-in hood)
	Room 360D

	 	Remove all casework under one hood (in corner of lab)
	Room 360D

	 	Rotate flammable cabinet 90°
	Room 360F

	 	Remove 3 fume hoods
	Room 360K

	 	Tile floor (currently bare concrete)
	Rooms 360G and 370B

	 	Add wall to separate lab (hallway) from office
	Rooms 360G and 360H

	 	Remove flammable cabinet and move to storage. Make
	 

	 	passthrough (double door size) between glasswash room
	 

	 	360H and hallway 360G.
	Room 360H

	 	Remove bench in corner of glasswash room 360H (location
	 

	 	currently marked as “oven.”
	Room 360H

	 	Remove 1 fume hood
	Room 360H

	 	Remove all casework along wall that currently has fume
	 

	 	hood
	Room 360H

	 	Remove one glassware cabinet (the one closest to the fume
	 

	 	hood) and move to hallway 360C.
	Rooms 370A  — C

	 	Move two cubicles from 370A to 370B & 370C
	Room 360F

	 	Remove small benchexv10w14

EXHIBIT 10.14

October 2, 2009

AMCON Distributing Company

7405 Irvington Road

Omaha, Nebraska 68122

And

Chamberlin Natural Foods, Inc.

430 North Orlando Avenue

Winter Park, Florida 32789

And

Health Food Associates, Inc.

7807 East 51st Street

Tulsa, Oklahoma 74145

			
	     Re:	 	Thirteenth Amendment to Amended and Restated Loan and Security Agreement
(this “Amendment”) 

Ladies and Gentlemen:

AMCON Distributing Company, a Delaware corporation (“AMCON”), Chamberlin Natural Foods, Inc.,
a Florida corporation (“Chamberlin Natural”), and Health Food Associates, Inc., an Oklahoma
corporation (“Health Food”) (AMCON, Chamberlin Natural, and Health Food are each referred to as a
“Borrower” and are collectively referred to as “Borrowers”) and Bank of America, N.A., as successor
in interest to LaSalle Bank National Association, a national banking association (in its individual
capacity, “BofA”), as agent (in such capacity as agent, “Agent”) for itself, M&I Marshall & Ilsley
Bank (successor by merger to Gold Bank), and all other lenders from time to time party to the Loan
Agreement referred to below (“Lenders”), have entered into that certain Amended and Restated Loan
and Security Agreement dated September 30, 2004 (the “Loan Agreement”). From time to time
thereafter, Borrowers, Agent and Lenders have executed various amendments (each an “Amendment” and
collectively the “Amendments”) to the Loan Agreement (the Loan Agreement and the Amendments
hereinafter are referred to, collectively, as the “Agreement”). Borrowers, Agent and Lenders now
desire to further amend the Agreement as provided herein, subject to the terms and conditions
hereinafter set forth.

 

 

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants and
agreements set forth herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto hereby agree as follows:

	1.	 	Amendment of the Agreement.

     (i) The definition of the term “Fixed Charges” set forth in Section 1.1 of the
Agreement is hereby amended and restated in its entirety to read as follows:

	 	 	“Fixed Charges” shall mean for any period, without duplication,
scheduled payments of principal during the applicable period with
respect to all indebtedness of AMCON, for borrowed money (including,
but not limited to, the $500,000 Promissory Note payable by AMCON to
Harps Food Stores, Inc. (the “Harp Note”)), plus scheduled payments
of principal during the applicable period with respect to all
capitalized lease obligations of AMCON, plus scheduled payments of
interest with respect to all indebtedness of AMCON and the Harp
Note, for borrowed money including capital lease obligations, plus
unfinanced Capital Expenditures of AMCON, during the applicable
period, plus payments during the applicable period in respect of
income or franchise taxes of AMCON, plus any dividends or
distributions made by AMCON, plus any payments made by any Borrower
in connection with certain contingent earn-out payments in favor of
Harps Food Stores, Inc. or any affiliate thereof.

          (ii) Subsection 13(b) of the Agreement is amended and restated in full, to read
as follows:

     (b) Indebtedness.

	 
	 	 	No Borrower shall create, incur, assume or become obligated
(directly or indirectly), for any loans or other indebtedness for
borrowed money other than the Loans, except that a Borrower may
(i) borrow money from a Person other than Agent and Lenders on an
unsecured and subordinated basis if a subordination agreement in
favor of Agent for its benefit and the benefit of the other Lenders
and in form and substance satisfactory to the Agent is executed and
delivered to Agent relative thereto; (ii) maintain its present
indebtedness listed on Schedule 11(n) hereto; (iii) incur
unsecured indebtedness to trade creditors in the ordinary course of
business; (iv) incur purchase money indebtedness or capitalized
lease obligations in connection with Capital Expenditures permitted
pursuant to subsection 14(c) hereof; (v) in the case of
AMCON, maintain its existing loans to Trinity described in and in
accordance with subsection 13(f) hereof, (vi) together with
each other Borrower, incur operating lease obligations requiring payments not to exceed Six Million and No/100 Dollars
($6,000,000.00)

-2-

 

	 	 	in the aggregate for all Borrowers during any Fiscal
Year of Borrowers; and (vii) incur Rate Hedging Obligations
(provided, however, that the aggregate outstanding
Rate Hedging Obligations owing by all Borrowers shall not at any
time exceed Twenty Million and No/100 Dollars ($20,000,000.00)) and
(viii) incur indebtedness in an amount not to exceed $500,000
payable to Harps Food Stores, Inc. (“Harp”) pursuant to a promissory
note in form and substance acceptable to the Bank amortized on a
straight-line basis over two years bearing interest at 5% per annum
subject to quarterly principal and interest payments; provided,
however, that no payments of principal or interest may be made to
Harp under such indebtedness in the event (a) any Default or Event
of Default has occurred or would be caused by the making of such
payment after giving effect thereto and (b) the Borrowers do not
have Average Excess Availability greater than or equal to Five
Million Dollars ($5,000,000) for the thirty day period immediately
prior to such payment and after giving effect to such payment.

     2. Limited Waiver and Consent. Notwithstanding the provisions of
Section 13(d) of the Agreement, Agent and the Lenders hereby consent to (i) the purchase of
the convenience distribution assets (the “Purchase”) of Harp’s Food Stores, Inc. (“Harp”) in
accordance with the terms of that certain Asset Purchase Agreement dated as of October 21, 2009
between Amcon and Harp (the “Purchase Agreement”), (ii) the incurrence of debt in the amount
$500,000 payable by Amcon to Harp subject to the requirements of Section 13(b) of the Agreement and
(iii) the payment of certain contingent payments to be made by Amcon to Harp in accordance with the
terms of the Purchase Agreement (the “Harp Contingent Payment”) subject to the following
conditions: (a) the amount of such contingent payments paid to Harp by the Borrowers may not
exceed One Million Forty Thousand Dollars ($1,040,000) in the aggregate at any time, (b) no Event
of Default has occurred or would be caused by the making of any such contingent payment after
giving effect thereto (including, but not limited to, all financial covenants set forth in
Section 14 of the Loan Agreement) and (c) the Borrowers have Average Excess Availability of
not less than Five Million Dollars ($5,000,000) for the thirty day period immediately prior to the
payment of such contingent payment and after giving effect to the payment of such contingent
payment. The consent provided herein shall be limited to the matter set forth herein and shall not
suspend, waive or affect any other covenant, condition or definition contained in the Loan
Agreement. Except as otherwise provided herein, all provisions, terms and conditions of the Loan
Agreement remain in full force and effect. The consent is granted only for the specific instance
specified herein and in no manner creates a course of dealing or otherwise impairs the future
ability of Lenders to declare an Event of Default under or otherwise enforce the terms of the Loan
Agreement.

     3. Consent to Advance under Confectionary and Tobacco Accordion. Subject to
compliance by the Borrowers with the conditions set forth in Section 2(a) of the Loan
Agreement for an advance under the Confectionary and Tobacco Accordion, BofA hereby consents to an
advance not to exceed $5,000,000 under the Confectionary and Tobacco
Accordion to be allocated to the Lenders on or before October 31, 2009 to be

-3-

 

 utilized for certain candy and
confectionary inventory purchases from the Hershey Company and cigarette inventory from
Commonwealth Brands, Inc.

     4. Conditions of Amendment This Amendment shall not become effective until each of
the following conditions precedent has been satisfied:

     (i) Agent shall have received this Amendment, duly executed by the parties hereto; and

     (ii) Agent shall have received a fully executed copy of the Purchase Agreement.

     5. Representations and Warranties The representations and warranties set forth in
Section 11 of the Agreement shall be deemed remade as of the date hereof by each Borrower,
except that any and all references to the Agreement in such representations and warranties shall be
deemed to include this Amendment. No Event of Default has occurred and is continuing and no event
has occurred and is continuing which, with the lapse of time, the giving of notice, or both, would
constitute an Event of Default under the Agreement.

     6. Costs and Expenses. Borrowers agree to pay on demand all costs and expenses of or
incurred by Agent (including, but not limited to, legal fees and expenses) in connection with the
negotiation, preparation, execution and delivery of this Amendment.

     7. Counterparts. This Amendment may be executed in two or more counterparts, each of
which shall be deemed an original, and all of which together shall constitute one and the same
instrument. Delivery of an executed counterpart of this Amendment by facsimile or other electronic
means shall be equally as effective as delivery of a manually executed counterpart of this
Amendment. Any party delivering an executed counterpart of this Amendment by facsimile or other
electronic means also shall deliver a manually executed counterpart of this Amendment but the
failure to deliver a manually executed counterpart shall not affect the validity, enforceability,
and binding effect of this Amendment.

     8. Reaffirmation. Except as expressly amended hereby, the Agreement and the Other
Agreements are hereby ratified and confirmed by the parties hereto and remain in full force and
effect in accordance with the terms thereof. Each Borrower hereby reaffirms its grant of the
security interest in the Collateral.

     9. Governing Law. This Amendment shall be governed by and construed under the laws of
the State of Illinois, without regard to conflict of laws principles of such State.

[Signatures appear on following pages]

-4-

 

(Signature Page to Thirteenth Amendment to

Amended and Restated Loan and Security Agreement)

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., a national

banking association, as Agent and a Lender

	 
	 	 	 	 	 	 
	 

	 	By:

 

Title:
	 	/s/ Jason Hoefler
 

VP
	 	 
	 
	 	 	 	 	 	 
	 	 	M&I MARSHALL & ILSLEY BANK, as 

a Lender

	 
	 	 	 	 	 	 
	 

	 	By:

 

Title:
	 	/s/ Michael Doyle
 

VP
	 	 
	 
	 	 	 	 	 	 
	 	 	M&I MARSHALL & ILSLEY BANK, as

a Lender

	 
	 	 	 	 	 	 
	 

	 	By:

 

Title:
	 	/s/ Dan DeWitt
 

AVP
	 	 

	 	 	 	 	 
	ACKNOWLEDGED AND AGREED TO 

this 2nd day of October, 2009:
	 	 
	 
	 	 	 	 
	AMCON DISTRIBUTING COMPANY
	 	 
	 
	 	 	 	 
	By: 

 

Title:

	 	/s/ Andrew C. Plummer
 

CFO / VP
	 	 
	 
	 	 	 	 
	CHAMBERLIN NATURAL FOODS,

 INC.
	 	 
	 
	 	 	 	 
	By: 

 

Title:

	 	/s/ Clifford W. Ginn
 

VP
	 	 
	 
	 	 	 	 
	HEALTH FOOD ASSOCIATES, INC.
	 	 
	 
	 	 	 	 
	By: 

 

Title:

	 	/s/ Clifford W. Ginn
 

VP
	 	 

-5-

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