Document:

Echo Automotive, Inc.: Exhibit 10.3 - Filed by newsfilecorp.com

		

CLIENT LEASE

_____________________

          THIS
LEASE is made and entered into this 4/1/2012, by and between FLAGSHIP ENTERPRISE
CENTER, INC., an Indiana not-for-profit corporation (hereinafter called
“Landlord”), and CONTROLLEDCARBON LLC, DBA ECHO AUTOMOTIVE (hereinafter called
“Tenant”). 

Witnesseth That: 

Article I. 
Leased Premises.

          Section
1.01. Lease and Description of Premises. Landlord, for and in
consideration of the rent, covenants, agreements and conditions stated herein,
does hereby lease to Tenant and Tenant does hereby lease from Landlord the
following described premises (hereinafter referred to as the “Leased Premises”)
situated at the east end of the Flagship Enterprise Center Building located at
2701 Enterprise Drive, Anderson, Indiana 46013 (hereinafter referred to as
“Building”) and including all that certain space of the Flagship Lab Addition
Building which contains Three Thousand Four Hundred (3,400) square feet, as
shown in Exhibit “A.” Because of the special nature of Landlord’s building,
Landlord has the option, in its sole discretion, to require Tenant to move to
comparable space in the Building during the term of this Lease. In the event
that Landlord decides to require Tenant to move, the following additional terms
shall apply: 

	 	(A) 	
      Tenant shall have at least 90 days notice of such
      move;

	 	(B) 	
      All costs, including Tenants moving expenses, associated
      with the relocation shall be borne by Landlord.

          Section
1.02. Additional Consideration to Tenant/Use of Equipment and Shared
Services. As additional consideration of Tenant’s payment of rent as
herein below provided, Landlord shall provide Tenant with the following
equipment and/or services: 

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 1 of 18 

	 	(a) 	
      Central Office Services. Landlord shall provide
      reception services in the main Flagship Enterprise Center lobby, access to
      common areas, including scheduled access to conference rooms; access to
      shared restrooms, fitness room and kitchen facilities; a centralized mail
      area, including a mailbox for Tenant; access to centralized copying and
      faxing facilities and equipment; Landlord’s standard centralized computer
      systems and services, including internet access; and security and
      janitorial services. Tenant is responsible for the cost of any additional
      office services required by Tenant. One CAT6 internet data jack for both
      voice and internet is included at no additional cost to the tenant.
      Additional data jacks can be accessed for a fee of $40.00 each. In the
      event that Tenant desires to replace or upgrade Landlord’s standard
      computer systems or services, Tenant must obtain Landlord’s prior written
      approval. Tenant shall pay all costs and fees incurred in connection with
      any replacement or upgrade of Landlord’s standard computer systems or
      services.

	 	 	 
	 	(b) 	
      Telephone Infrastructure Services. The Landlord
      will assist in arranging Tenant with local calling area telephone service,
      telecommunication lines and telephone and computer network jacks. Tenant
      is responsible for the cost of these lines and any other expenses
      associated with its telephone service and equipment, including but not
      limited to charges associated with the installation of additional
      telephone lines, additional bandwidth requirements, long distance charges,
      and all other expenses. In the event that Tenant desires to replace or
      upgrade telephone equipment or service, Tenant must obtain Landlord’s
      prior written approval. Tenant shall pay all costs and fees incurred in
      connection with such replacement or upgrade. Landlord shall provide Tenant
      with monthly invoices reflecting any such additional telephone systems and
      services charges and Tenant shall pay Landlord for such charges within
      fifteen (15) days of receipt of each invoice.

	 	 	 
	 	(c) 	
      Parking. Landlord shall provide Tenant with access
      to parking facilities, which shall be subject to availability and
      Landlord’s parking facilities policies. Handicapped parking is made
      available for those tenant/visitors with a handicap parking pass only, all
      others may be towed or ticketed.

          Section
1.03. Examination and Inspection of Leased Premises / Renovation
Expenses. Tenant acknowledges that it has had the opportunity to examine
and inspect and has examined and inspected the Leased Premises. Tenant accepts
the Leased Premises in their current “as is” condition, subject to the
responsibility of the Landlord to effect repairs and maintenance as below
provided.

          As
per the negotiations heretofore completed between the parties, Landlord, prior
to the inception of this Lease, has renovated and improved the Leased Premises.
As to such renovations and improvements, Landlord has paid or will pay the total
cost of such renovations and improvements. 

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 2 of 18 

Article II. 
Lease Term. 

          Section
2.01. Initial Lease Term. Unless sooner terminated under the provisions
hereof, the term of this Lease shall be for a period of two (2) years (the
“Initial Term”), commencing on the 1st day of April, 2012
(hereinafter referred to as the “Commencement Date”) and ending on the
31st day of March, 2014.

          Section
2.02. Lease Renewal. This Lease may be renewed for a subsequent term of
two (2) years (each a “Renewal Term”) with option for four (4) additional
renewal terms if two (2) years each, on such terms as are acceptable to Tenant
and to Landlord. The term of this Lease, including the Initial Term and any
Renewal Term(s), is referred to in this Lease as the “Term.” 

          Section
2.03. Provisions for Negotiation of Renewal. The parties shall commence
negotiations for a Renewal Term no sooner than ninety (90) days before the
expiration of the existing Term and such negotiations shall be completed no
later than thirty (30) days before the expiration of the existing Term.

          Section
2.04. Holding Over. In the event Tenant remains in possession of the
Leased Premises after the expiration of the Initial Term and/or expiration of
agreed upon renewal terms, without the execution of a lease extension agreement
or exercise of a renewal option, Tenant shall be deemed to be occupying the
Leased Premises as a tenant from month to month and all terms of the Lease shall
continue unabated, excepting for the length of term as herein specified. Such
month to month tenancy may at any time be terminated by either party upon thirty
(30) days written notice given to the other party.

Article III. 
Rental
Payments. 

          Section
3.01. Rent. Based upon negotiations between the parties, Tenant shall
pay, as rent, to Landlord, a sum equal to that as set forth in Exhibit “B.” Such
Rent shall be increased 3% from each successive annual anniversary date of the
lease as shown in Exhibit “B.”

          Section
3.02. Rent During Renewal Terms. The rental payments for any Renewal Term
shall be in the monetary sum mutually agreed to by the parties prior to the
commencement of the Renewal Term.

          Section
3.03. Obligation of Tenant to Relocate in Madison County, IN. Tenant
agrees that, following termination or expiration of this Lease for any reason
(other than any termination by Landlord during the Initial Term without cause),
Tenant shall maintain its principal place of business and operations in the
State of Indiana for a period of time at least equal to the length of time that
Tenant leases space within the Flagship Enterprise Center (the “Term"). If,
after termination or expiration of this Lease, Tenant relocates its principal place of business and operations
outside of Madison County, Indiana prior to expiration of the Term, then Tenant
shall pay to Landlord an amount equal to the difference between (i) the fair
market rent for leasing Tenant Space during Tenant's tenancy at the Flagship
Enterprise Center and (ii) the total amount of rent paid by Tenant to Landlord
during such tenancy. The "fair market rent" shall be the stipulated fair market
rental as set forth in Exhibit “B”. The exception to this clause shall occur
with a change in the ownership of a majority of a tenant’s stock; if a majority
interest is acquired by another entity, and that entity requires the relocation
of the company outside of Madison County, Indiana, then this clause shall not
apply to the tenant.

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 3 of 18 

          Section
3.04. Landlord’s Payment of Utilities. Landlord shall pay all usage and
other monthly charges for all utility services rendered or furnished to or based
upon or in connection with the Leased Premises, including, but not limited to,
electricity, gas, water/sewage, or other utility or service. Provided, however,
should Tenant’s use of the Leased Premises cause an unreasonable or unexpected
use of any utility or utility service, Landlord reserves the right, upon notice
to Tenant, to charge such excessive utility use and the charges therefore to
Tenant. The use of the dynamometer located in the leased
premises constitutes an “extensive utility use,” and as such utility costs for
this specific piece of equipment would be the responsibility of the
Tenant.

          Section
3.05. Payment of Taxes on Real Estate and Personal Property. Landlord
covenants and agrees to assume and pay all real estate taxes, if any, incurred
and/or assessed against the real estate and improvements located on the Leased
Premises. Tenant covenants and agrees to assume and pay all personal property
taxes incurred and/or assessed against the personal property owned by Tenant
located on the Leased Premises.

          Section
3.06. Past Due Payments. In the event any rental payment or other payment
owing from Tenant to Landlord pursuant to this Lease shall become overdue for a
period in excess of ten (10) days, a late charge in the amount of five percent
(5%) of such overdue payment shall be paid by Tenant to Landlord, which late
charge shall be payable upon demand. Said late charge shall be in addition to
and not in lieu of any other remedy Landlord may have and any fee, charge,
payment and advancements landlord may be entitled to hereunder or by law. In the
event any rental payment or other payment owing from Tenant to Landlord pursuant
to this Lease shall become overdue for a period in excess of twenty-five (25)
days, such unpaid amounts shall bear interest from the due date thereof to the
date of payment at the rate of one and one-half percent (11⁄2%) per month. 

          Section
3.07. Place of Payments. All payments required to be paid, and all
statements required to be rendered by Tenant to Landlord shall be delivered to
Landlord at its address set forth in Section 15.01 hereof or to such other
address as Landlord specifies to tenant in accordance with such Section.

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 4 of 18 

Article IV. 
Use and
Occupancy. 

          Section
4.01. Use of Leased Premises. The Leased Premises in the office area
shall be used solely as office or laboratory research space. The Leased Premises
in the manufacturing area shall be used as manufacturing, research or lab space.
Landlord may relocate Tenant to comparable space within the Building at
Landlord's sole discretion. Tenant will have full access to and use of Tenant
Space, and the right to use and access all common areas within the Building on
an “as available” basis, subject to the Flagship Enterprise Center’s Building
Rules and Regulations, as amended or modified from time to time, which are
incorporated by reference into this Lease. Tenant hereby acknowledges receipt of
the current Building Rules and Regulations. Landlord shall provide to Tenant
written notice of any amendments or modifications to the Building Rules and
Regulations, which shall be effective with respect to Tenant after such notice
has been given. Tenant will not have access to any other areas within the
Building, including but not limited to the space of other tenants and Landlord’s
executive offices. 

          Section
4.02. Prohibition Against Waste and Unlawful Uses. Tenant shall not
commit or allow any waste or damage to be committed on any portion of the Leased
Premises. Tenant shall not occupy or use or permit any portion of the Leased
Premises to be occupied or used for any business or purpose which is unlawful,
disreputable or deemed to be hazardous, or permit anything to be done which
would in any way significantly increase the cost of insurance coverage on the
Leased Premises or its contents. 

          Section
4.03. Prohibition Against Use or Storage of Hazardous Materials. Tenant
shall not maintain, store or use any other hazardous materials upon the Leased
Premises without Landlord’s written consent. Hazardous materials shall mean any
hazardous, toxic or radioactive substance, matter, material or waste which is or
becomes regulated by any federal, state or local law, ordinance, order, rule,
regulations, code or other governmental restriction or requirement and includes,
without limitation, asbestos, petroleum products and the terms hazardous
substance and hazardous waste as defined in CERCLA and RCRA, as each may be
amended. If any hazardous materials are necessary for the carrying on of
tenant’s business operations, notice of existence of such materials must be
given to Landlord, and Tenant shall retain such licenses as may be required to
handle, transport and dispose of such materials in accordance with local, state
and federal rules, regulations and laws.

          Section
4.04. Environmental Responsibility. Tenant must supply Landlord Material
Safety Data Sheets for all chemicals used by Tenant, excepting ordinary office
chemicals used in laser printers and copiers, and other ordinary and widely used
business machines. Nevertheless, Tenant shall dispose of any and all such items
in an appropriate and responsible manner. Tenant must comply with the OSHA and
EPA requirements. Noise levels created by Tenant’s machinery must not exceed a
limit of 85 decibels or such noise level required by the applicable zoning
ordinance, whichever is lower. Tenant shall defend and hold Landlord harmless
from all fines, penalties and costs relating to any violation or noncompliance
with such laws and regulations. 

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 5 of 18 

          Section
4.05. Prohibition Against Excessive Floor Loads. Tenant shall not
overload the floors of the Tenant Space beyond their designed weight-bearing
capacity. Landlord reserves the right to direct the positioning of all heavy
equipment, furniture and fixtures that Tenant desires to place in the Tenant
Space so as to distribute weight properly. Landlord may require the removal of
any equipment, furniture or fixtures that exceeds appropriate weight limits for
the Tenant Space. 

          Section
4.06. Condition, Alterations and Additions. Tenant’s acceptance of the
Leased Premises on the Commencement Date shall be as is, where is and without
warranty of any kind as to zoning, condition, fitness for Tenant’s business
purpose or otherwise. Tenant assumes sole responsibility for examining the
Leased Premises prior to the Commencement Date to assure itself of the Leased
Premises’ compliance with this Lease and Tenant’s business purpose. Tenant
shall make no leasehold improvements, alterations or additions to any part of
the Leased Premises without the prior written consent of Landlord. All such
improvements, alterations and additions, excepting only unattached and movable
trade fixtures, shall be the sole property of Landlord.

          Section
4.07. Signage. All signage, whether installed inside the structure on the
Leased Premises or on the exterior thereof, shall be subject to the written
approval of Landlord.

Article V. 
Maintenance and
Repairs. 

          Section
5.01. Maintenance by Landlord. Landlord, at Landlord’s expense, shall
keep the foundation, walls and other structural parts, including the roof, of
the building in reasonable order, condition and repair; provided, however,
Landlord shall not be responsible for making any repairs or replacements
occasioned by any act or negligence of Tenant, its employees, contractors,
agents, invitees, licensees or concessionaires. Landlord shall also keep,
maintain, replace and repair the Leased Premises and every part thereof in good
order, condition and repair, including, but not limited to, interior and
exterior electrical, mechanical and utility equipment and systems; fixtures; and
interior walls, floors and ceilings.

          Section
5.02. Payment of Cleaning & Janitorial Service Expenses. Tenant shall
assume and pay all expenses for routine/customary cleaning and janitorial
services to keep the Leased Premises in a clean and orderly condition. Should
Tenant fail in this responsibility, Landlord reserves the right, but shall not
be obligated, to cause the Leased Premises to be cleaned and charges therefore
would be assessed to Tenant. Landlord shall assume and pay all expenses for
routine/customary cleaning and janitorial services to keep the Common Areas
within the Building in a clean and orderly condition. Tenants are responsible
for picking up after themselves in the kitchen area. 

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 6 of 18 

          Section
5.03. Landlord’s Provision of Snow Removal and Lawn Care. As additional
consideration for Tenant’s payment of Monthly Rental Payments, Landlord, during
the Initial Term and any Renewal Term, shall provide snow removal for Tenant’s
parking and walkways and shall further provide lawn care and landscaping
services to the area surrounding the Leased Premises.

          Section
5.04. Notice. Tenant shall give Landlord prompt written notice of the
need for any maintenance, replacement or repairs which Landlord is obligated to
make under foregoing Section 5.01 and of any material damage to the Leased
Premises or any part thereof.

          Section
5.05. Access to Leased Premises. Landlord and its agents may retain a
pass key to the Leased Premises and shall have the right to enter the Leased
Premises at any and all times to service and inspect the Leased Premises. During
the period beginning sixty (60) days prior to the expiration of the Initial Term
or any Renewal Term (unless Landlord has already agreed to extend the Term of
this Lease), Landlord’s staff may enter the Leased Premises to show the Leased
Premises to prospective tenants. Tenant shall have the right of access to its
leased area on a 24 hour a day, 7 day a week basis. 

Article VI. 
Insurance and
Indemnification. 

          Section
6.01. Public Liability Insurance: Tenant. Tenant, at Tenant’s expense,
shall maintain in full force and effect throughout the Lease Term a policy of
general public liability insurance naming Landlord as an additional insured and
covering any and all claims for injuries to or death of persons and damage to
property occurring in or upon the Leased Premises, in an amount not less than
One Million Dollars ($1,000,000.00) for injury to or death of any one person;
Two Million Dollars ($2,000,000.00) for injury to or death of more than one
person in the same accident or occurrence; and Five Hundred Thousand Dollars
($500,000.00) for damaged property arising out of any one accident or
occurrence.

          Section
6.02. Insurance on Tenant’s Property. All of Tenant’s fixtures,
equipment, merchandise or other personal property shall be kept at Tenant’s sole
risk and expense, and Tenant, at Tenant’s expense, shall maintain in full force
and effect throughout the Lease Term fire and extended coverage insurance on its
fixtures, equipment, merchandise and other personal property in or upon the
Leased Premises for its full insurable value on a replacement cost basis, if
obtainable, and if not obtainable, for the full amount of the estimated cash
value for such property.

          Section
6.03. Insurance on Leased Premises. Landlord shall maintain in full force
and effect throughout the Lease Term broad form fire and extended coverage
insurance on the Leased Premises and Landlord’s fixtures, equipment and personal
property, in, on or about the Leased Premises, for their full insurable value on
a replacement cost basis, if obtainable, and if not obtainable,
for the full amount of its actual cash value. 

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 7 of 18 

          Section
6.04. Waiver of Subrogation. Each of the parties hereto hereby waives and
releases any and all rights of recovery which it might have against the other
for any loss or damage, whether or not caused by any alleged negligence of the
other party, its agents, licensees or invitees, to the extent that such loss or
damage is or would be covered by any insurance required to be maintained under
this Lease. Each policy of insurance required under this Lease shall contain an
endorsement to such effect, so long as such endorsement is available. Should
either Landlord or Tenant be unable to procure such an endorsement, the other
party shall be relieved of carrying insurance with such an endorsement and the
foregoing provisions for waiver of right of recovery against the other (right of
subrogation) shall be of no further force or effect. 

          Section
6.05. Tenant’s Indemnification. Unless caused or contributed to by the
gross negligence or willful misconduct of Landlord, its agents or employees,
Tenant assumes all risks and responsibilities for accidents, injuries or damages
to person or property and agrees to indemnify and hold Landlord harmless from
any and all claims, liabilities, losses, costs and expenses (including
attorneys’ fees) arising from or in connection with its, use or control of the
Leased Premises and any improvements thereon during the Lease Term or Tenant’s
breach of any term, covenant, condition or agreement to be observed by Tenant
under this Lease. Tenant shall be liable to Landlord for any damages caused by
gross negligence or willful misconduct to the Leased Premises and for gross
negligence or willful misconduct done by Tenant or any person coming on the
Leased Premises by the license or invitation of Tenant, express or implied
(except Landlord, its agents or employees). 

          Section
6.06. Tenant’s Waiver of Claims. Landlord shall not be liable for, and
Tenant waives all claims against Landlord for, any injuries, damages (including,
but not limited to, consequential damages) or losses of or to person, property
or otherwise, sustained by Tenant and not covered by insurance, unless resulting
from Landlord’s gross negligence or willful misconduct. All property of Tenant
kept or stored in, upon or about the Leased Premises shall be so kept or stored
at the sole risk of Tenant; and Tenant shall hold Landlord harmless from any
claims, costs or expenses, including attorneys’ fees, arising out of damage
thereto, unless such claim arises out of grossly negligent or willful misconduct
on the part of Landlord, its agents and employees. 

          Section
  6.07. Certificates of Insurance. For each type of insurance which Landlord
  or Tenant are required to maintain under this Lease, each shall furnish the
  other an endorsed copy of such insurance policy showing that each such type
  of insurance is in full force and effect and not cancelable without thirty (30)
  days prior written notice to the other party.

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 8 of 18 

Article VII. 
Eminent
Domain. 

          Section
7.01. Legal Effect. If the whole or any part of the Leased Premises is
taken for public or quasi-public use by a governmental or other authority having
the power of eminent domain, or shall be conveyed to any such authority in lieu
of such taking, and if such taking or conveyance shall cause the remaining part
of the Leased Premises to be untenantable and inadequate for Tenant’s Business,
then Landlord or Tenant may, at their option, terminate this Lease as of the
date Tenant is required to surrender possession of the Leased Premises by giving
the other party notice of such termination. If a part of the Leased Premises
shall be taken or conveyed, but the remaining part is tenantable and adequate
for Tenant’s Business (as reasonably determined by Tenant, and with notice of
such determination given to Landlord within fifteen (15) days of any such
taking), then this Lease shall be terminated as to the part taken or conveyed as
of the date Tenant surrenders possession thereof; Landlord shall make such
repairs, alterations and improvements as may be necessary to render the part not
taken or conveyed tenantable; and the rent shall be reduced in proportion to the
part of the Leased Premises so taken or conveyed.

          Section
7.02. Payment of Award. All compensation awarded for such taking or
conveyance shall be the sole property of Landlord, without any deduction
therefrom for any present or future estate of Tenant, and Tenant hereby assigns
to Landlord all its right, title and interest in and to any such award;
provided, however, Tenant shall have the right to recover from such taking
authority, but not from Landlord, such compensation as may be awarded to Tenant
on account of moving and relocation expenses and depreciation to and removal of
Tenant’s property.

Article VIII. 
Destruction and
Damage. 

          Section
8.01. Damage by Casualty. In the event of a fire or other casualty in the
Leased Premises, Tenant shall give prompt notice thereof to Landlord. If the
Leased Premises shall be partially destroyed by fire or other casualty so as to
render the Leased Premises partially or wholly untenantable, the Rent shall be
abated on the basis of leasable square footage remaining and occupied
thereafter, until such time as the Leased Premises are made fully fit for use by
Tenant; provided, however, that if gross negligence or willful misconduct of
Tenant, or its agents or employees shall have contributed to such fire or other
casualty, the Rental shall not be abated during the period of restoration of the
Leased Premises. 

          Section
8.02. Restoration; Partial or Total Destruction of Building. In the event
the Building shall be partially or totally destroyed by fire or other casualty,
the same shall be repaired as soon as is reasonably possible, at the expense of
Landlord, unless Landlord shall elect to terminate this Lease as hereinafter
provided. If damage to the Leased Premises is to such extent that the cost of
restoration, as estimated by Landlord will exceed fifty percent (50%) of the
replacement value of the Leased Premises (including the building standard improvements) or thirty
percent (30%) of the replacement value of the Building (exclusive of the
foundation) in its condition just prior to the occurrence of the damage,
Landlord may, no later than the sixtieth (60th) day following such
damage, give Tenant notice that it elects to terminate this Lease. If such
notice shall be given: 

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 9 of 18 

	 	(a) 	
      This Lease shall terminate on the twentieth (20th
      ) day following the giving of said notice;

	 	 	 
	 	(b) 	
      Tenant shall surrender possession of the Leased Premises
      on or before such termination date; and

	 	 	 
	 	(c) 	
      The rental provided hereunder shall be apportioned as of
      the date of such termination and any Rental paid for any period beyond
      said date shall be refunded to Tenant.

Unless Landlord so elects to terminate this Lease, Landlord
shall proceed with the restoration of the Leased Premises and/or the Building as
soon as reasonably possible. If the damage to the Building as the result of any
casualty is such that the Leased Premises cannot be used by Tenant for Tenant’s
Business for a period of three (3) or more months, as estimated by Landlord,
either Landlord or Tenant may cancel and terminate this Lease by giving notice
of such termination to the other party within thirty (30) days after the date of
such casualty. In such event of termination, all Rental shall be apportioned as
of the date of such termination and any Rental paid for any period beyond said
date shall be refunded to Tenant. In no event, however, shall Tenant have the
right to cancel or terminate this Lease if the gross misconduct or willful
neglect of Tenant, or its agents, employees or invitees shall have contributed
to the cause of such casualty. 

Article IX. 
Events of Default and
Remedies. 

          Section
9.01. Events of Default. The occurrence of any one (1) or more of the
following events shall be deemed to be an “Event of Default”: 

	 	(a) 	
      The failure of Tenant to pay any installment of rent
      within thirty (30) days after its due date;

	 	 	 
	 	(b) 	
      The failure of Tenant to perform any other of its
      covenants under this Lease or to comply with the Building Rules and
      Regulations within thirty (30) days after written notice or demand
      therefore is served upon Tenant by Landlord;

	 	 	 
	 	(c) 	
      The making by Tenants of an assignment for the benefit of
      creditors;

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 10 of 18 

	 	(d) 	
      The levying of a writ of execution or attachment on or
      against the Leased Premises or Tenant’s interest therein as the property
      of Tenant, and the same not being released or discharged within sixty (60)
      days thereafter;

	 	 	 
	 	(e) 	
      The institution of proceedings in a court of competent
      jurisdiction for the reorganization, liquidation, voluntary or involuntary
      dissolution of Tenant, or for its adjudication as a bankrupt or insolvent,
      or for the appointment of a receiver of the property of Tenant, and said
      proceedings are not dismissed within sixty (60) days after the institution
      of said proceedings; or

	 	 	 
	 	(f) 	
      A mechanic’s lien or similar lien upon the Leased
      Premises or the building is asserted of record in connection with work
      allegedly done in or about the Leased Premises at the request or instance
      of Tenant, and the same is not removed by Tenant, or adequate security for
      the satisfaction thereof deposited with Landlord, within forty-five (45)
      days from the date any such lien was filed in the office of the Recorder
      of Madison County, Indiana.

          Section
9.02 Remedies. Upon the occurrence of an Event of Default, Landlord shall
have the option to: 

	 	(a) 	
      Re-enter the Leased Premises with or without process of
      law, using such means as may be necessary to remove all persons and
      property therefrom; and/or

	 	 	 
	 	(b) 	
      Exercise any other right or remedy available to Landlord
      at law or in equity in addition to or as an alternative to any of the
      other rights and remedies of Landlord herein specified upon the occasion
      of any such Event of Default.

In the event that subsequent to an Event of Default, Landlord
should relet the Leased Premises or a portion thereof during the balance of the
Term of this Lease, the proceeds of such reletting, after deduction of all
reasonable costs incurred by Landlord in connection with repossession and
reletting of the Leased Premises (including without limitation, all legal fees,
leasing commissions, remodeling costs and similar expenses) shall be applied to
satisfaction of Tenant’s obligations hereunder. Landlord shall have the right to
file suit to recover any sums which have fallen due under this Lease from time
to time on one (1) or more occasions without being obligated to wait until the
expiration of the Term of this Lease. Alternatively, in the event Landlord
should elect to terminate this Lease, Landlord shall be entitled to recover
forthwith as damages from Tenant a sum of money equal to: (i) the cost of
recovering possession of the Leased Premises, (ii) the unpaid Rent owed at the
time of such termination; (iii) the balance of the Rent for the remainder of the
term; and (iv) any other sum of money or damages owed by Tenant to Landlord,
less the fair market rental value of the Leased Premises for the remainder of
the term of this Lease. 

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 11 of 18 

Article X. 
Subordination.

          Section
  10.01. Subordination. Upon request by Landlord, this Lease shall become
  subordinate to the lien of a mortgage given by Landlord, if such mortgage provides
  that Tenant’s rights under this Lease and possession of the Leased Premises
  shall not be disturbed as long as it performs its duties hereunder. Tenant shall
  enter into any confirming subordination and non-disturbance agreement such mortgagee
  may reasonably require.

Article XI. 
Assignment and
Subletting. 

          Section
11.01. Assignment and Subletting. Tenant shall not assign or encumber
this Lease or any interest herein, or sublet the Leased Premises or any part
thereof, or permit the use of the Leased Premises or any part thereof by any
party other than Tenant, without the prior written consent of Landlord. 

Article XII. 
Covenant of Quiet
Enjoyment. 

          Section
12.01. Covenant of Quiet Enjoyment. Landlord covenants and warrants that
it has all necessary right, title and interest in the Leased Premises to enter
into this Lease and grant tenant the rights herein. Landlord agrees that if
Tenant performs all the covenants and agreements herein provided to be performed
by Tenant, Tenant shall, at all times during the Lease Term, have the peaceable
and quiet enjoyment of possession of the Leased Premises without any manner of
hindrance from Landlord or any persons claiming under Landlord subject to the
terms of any mortgage to which this Lease is subordinate or subordinated to.

Article XIII. 
Termination of
Lease and Surrender of Leased Premises. 

          Section
13.01. Termination. This Lease shall Terminate upon any one (1) of the
following occurrences:

	 	(a) 	
      Upon expiration of ten (10) days following written notice
      by Landlord to Tenant, if Tenant continues to be in default in the
      performance of obligations of this Lease required to be performed by
      Tenant;

	 	 	 
	 	(b) 	
      Upon expiration of the Initial Term or any Renewal Term
      where no extension of the Initial Term or Renewal Term has been
      negotiated;

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 12 of 18 

	 	(c) 	
      Upon expiration of thirty (30) days following written
      notice by one party to the other during any holdover period;

	 	 	 
	 	(d) 	
      Upon expiration of thirty (30) days following written
      demand by Landlord to Tenant, if Tenant continues to be more than Five
      Hundred Dollars ($500.00) in arrears in the payment of monies due and
      owing Landlord’s list of recommended Preferred Providers as listed in the
      Flagship Enterprise Center Building Rules and Regulations as amended from
      time to time, for services rendered to Tenant.

	 	 	 
	 	(e) 	
      Upon expiration of thirty (30) days following written
      notice of Landlord’s Board of Director’s written findings that Tenant,
      despite written notice and provision of a ninety (90) day period to cure,
      continues by its conduct to:

		(i.) 	
      depart in a material and significant manner from its
      business intentions, as originally submitted to Landlord at commencement
      of the Initial Term; 

		(ii.) 	
      fail to exercise due diligence in the execution of its
      business plan and/or pursuit of its business objectives; 

		(iii.) 	
      be absent from the Building for protracted periods
      without appropriate excuse or justification; 

		(iv.) 	
      violate the terms and provisions of the Articles of
      Incorporation of the Flagship Enterprise Center, Inc.

          Section
13.02. Surrender. At the termination or expiration of this Lease, Tenant
shall deliver the Tenant Space in good order and repair, ordinary wear and tear
excepted. Tenant shall not be required to surrender any of Tenant's trade
fixtures, equipment or personal property, unless permanently affixed to the
Tenant Space, provided that any trade fixtures, equipment or personal property
of Tenant not removed within forty-eight (48) hours following the termination or
expiration of this Lease shall be deemed abandoned and shall become the sole and
exclusive property of the Landlord. Tenant shall repair any damage to the Tenant
Space caused by removal of any trade fixtures, equipment, or personal property
of Tenant. In no event will Tenant have the right to hold over past the
termination of this Lease. Tenant acknowledges that time is of the essence and
that it is of critical importance for Landlord to have possession of the Tenant
Space upon the termination or expiration of this Lease. In the event Tenant does
not vacate the Tenant Space as required in this Lease, Landlord shall be
entitled to any and all remedies at law or in equity, including, without
limitation, the right to change locks on the building, remove all trade
fixtures, equipment or personal property from the Tenant Space and/or to
demolish all improvements in the Tenant Space, all which shall be without any
liability or claim against Landlord, which are hereby waived by Tenant.

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 13 of 18 

Article XIV. 
Enforcement
Expenses. 

          Section
  14.01. Enforcement Expenses. In the event that either party hereto shall
  be successful in enforcing against the other any remedy, legal or equitable,
  for a breach of any of the provisions of this lease, there shall be included
  in the judgment or any decree the reasonable expenses and attorney fees of the
  successful party against the unsuccessful party.

Article XV. 
Notices. 

          Section
15.01. Notices. All notices and demands which may or are required to be
given by either party to the other hereunder shall be in writing and shall be
deemed to have been fully given two (2) days after being deposited with the
United States Postal Service, or its successor, as certified or registered mail,
postage prepaid, and addressed as follows: 

	 	To Tenant: 	ControlledCarbon, LLC 
	 	  	DBA Echo Automotive 
	 	  	12157 E. Collembine Dr. 
	 	  	Scottsdale, AZ 85259 
	 	  	  
	 	  	Attention: CEO 
	 	  	  
	 	  	  
	 	  	  
	 	To Landlord: 	Flagship Enterprise Center, Inc.
    
	 	  	2701 Enterprise Drive 
	 	  	Anderson, Indiana 46013 
	 	  	  
	 	  	Attention: President / CEO
  

or to such other address as either party may designate from
time to time for itself by notice similarly given. Any notice to be given may
also be given by personal delivery of the written notice to the person in charge
of the business operations at the Leased Premises at the time of such notice,
and shall be deemed effective as of the date such personal delivery is made.

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 14 of 18 

Article XVI. 
Compliance With
Economic Development Administration (“EDA”)
Civil Rights and
Nonrelocation Regulations. 

          Section
16.01. Compliance. Inasmuch as Landlord has received benefits and grants
from EDA, Tenant agrees that it shall comply with EDA civil rights requirements,
which, in general, prohibit unlawful discrimination practices in the work place.
Also, Tenant agrees that it shall comply with EDA nonrelocation regulations,
which, in general, prohibit use of EDA financial assistance to assist employers
from transferring jobs from one commuting area to another.

Article XVII. 
General
Provisions. 

          Section
17.01. Relationship of the Parties. Nothing herein contained shall be
deemed or construed by the parties hereto, nor by any third party, as creating a
relationship of principal and agent, partnership or joint venture between the
parties hereof, it being understood and agreed that nothing herein, no any acts
of the parties hereto, shall be deemed to create any relationship between the
parties hereto other than the relationship of Landlord and Tenant.

          Section
17.02. Provision for Non-Waiver. No delay or omission of the right to
exercise any power by either party shall impair any such right or power, or
shall be construed as a waiver of any default or as an acquiescence thereon. One
or more waivers of any covenant, term or condition of this Lease by either party
shall not be construed by the other party as a waiver of subsequent breach of
the same covenant, term or condition. Consent or approval by either party to or
of any act by the other party of a nature requiring consent or approval shall
not be deemed to waive or render unnecessary consent to or approval of any
subsequent similar act.

          Section
17.03. Recording Memorandum of Lease. Either party hereto, upon written
request of the other, shall join in the execution of a Memorandum of Lease in
proper form for recording or filing in the office of the Recorder of Madison
County, Indiana, which Memorandum shall set forth the existence of terms of this
Lease, with subordination of the leasehold interest to any mortgage by the
Landlord and such other terms as the parties may mutually agree upon. 

          Section
17.04. Law of Indiana Governs. The laws of the State of Indiana shall
govern the validity, performance and enforcement of this Lease. The invalidity
or unenforceability of any provision of this Lease shall not affect or impair
any other provision.

          Section
17.05. Complete Agreement. Headings of the several articles of sections
contained herein are for convenience only and do not define, limit, or construe
the contents of such articles and sections. All negotiations, considerations,
representations and understandings between the parties are
incorporated herein and may be modified or altered only by memorandum in writing
signed by the parties hereto.

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 15 of 18 

          Section
17.06. Agreement Binding on Successor and Assigns. The covenants,
agreements and obligations herein contained shall extend to, bind and inure to
the benefit not only of the parties hereto, but their respective personal
representatives, heirs, successors and assigns.

          Section
17.07. Tenant’s Compliance with Rules and Regulations. Tenant agrees to
conduct its business and operations so as to comply with the Rules and
Regulations adopted by the Landlord.

IN WITNESS WHEREOF, the said parties have hereunto set their
hands this _________, day of ___________, 2012. 

 

	CONTROLLEDCARBON, LLC 	FLAGSHIP ENTERPRISE CENTER 
	DBA ECHO AUTOMOTIVE 	Landlord 
	Tenant 	  
	  	  
	  	  
	  	  
	  	  
	BY:_________________________________________________ 	BY:_________________________________________________
	                   William
      D. Kennedy, CEO 	           
             Charles Staley, President/CEO

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 16 of 18 

EXHIBIT “A” 

FIRST FLOOR DIAGRAM – Lab Addition (Suite 122)

 

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 17 of 18 

EXHIBIT “B” 

RENT SCHEDULE 

 

Rent Calculation 

          Effective
April 1, 2012, Tenant will rent the space known as the Flagship Lab Addition.
The monthly rent for this space is set at Three Thousand, Four Hundred and
Thirty-Five Dollars and Zero Cents ($3,435.00) for the first year, being the
product of the rent per square foot ($12.00), multiplied by square footage
(3,400), divided by 12 (months); to which is added the monthly fob access fee of
Thirty-Five Dollars and Zero Cents ($35.00) .

          Rent
for subsequent annual Terms will incorporate a 3% increase of the base rental
fee (excluding the fob access fee), which will become effective upon each year’s
anniversary date of April 1st. 

	TIME PERIOD 	MONTHLY RENT 
	 	 
	4/01/2012 to 3/31/2013 	$3,400.00 + $35 (fob access fee) = $3,435.00
  
	 	 
	4/01/2013 to 3/31/2014 	$3,502.00 + $35 = $3,537.00 
	 	 
	2 Year Renewal Option: 	 
	 	 
	4/01/2014 to 3/31/2015 	$3,607.06 + $35 = $3,642.06 
	 	 
	4/01/2015 to 3/31/2015 	$3,715.27 + $35 = $3,750.27

	ControlledCarbon, LLC dba Echo Automotive -2012 	Page 18 of 18Echo Automotive, Inc.: Exhibit 10.4 - Filed by newsfilecorp.com

		

CLIENT LEASE

___________________

          THIS
LEASE is made and entered into this 6/1/2012, by and between FLAGSHIP ENTERPRISE
CENTER, INC., an Indiana not-for-profit corporation (hereinafter called
“Landlord”), and CONTROLLEDCARBON, LLC DBA ECHO AUTOMOTIVE (hereinafter called
“Tenant”). 

Witnesseth That: 

Article I. 
Leased Premises.

          Section
1.01. Lease and Description of Premises. Landlord, for and in
consideration of the rent, covenants, agreements and conditions stated herein,
does hereby lease to Tenant and Tenant does hereby lease from Landlord the
following described premises (hereinafter referred to as the “Leased Premises”)
situated in the Flagship Enterprise Center Building located at 2701 Enterprise
Drive, Anderson, Indiana 46013 (hereinafter referred to as “Building”) and
including all that certain space, which is on the First floor of the Flagship
Enterprise Center Building which is designated as Labs 1 through 4 (4,900 square
feet), and including the Dynamometer and Control Lab (914 square feet), making a
total of 5,814 square feet of space as shown in Exhibit “A.” Because of the
special nature of Landlord’s building, Landlord has the option, in its sole
discretion, to require Tenant to move to comparable space in the Building during
the term of this Lease. In the event that Landlord decides to require Tenant to
move, the following additional terms shall apply: 

	 	(A) 	
      Tenant shall have at least 90 days notice of such
      move;

	 	(B) 	
      All costs, including Tenants moving expenses, associated
      with the relocation shall be borne by Landlord.

          Section
1.02. Additional Consideration to Tenant/Use of Equipment and Shared
Services. As additional consideration of Tenant’s payment of rent as
herein below provided, Landlord shall provide Tenant with the following
equipment and/or services: 

	ControlledCarbon, LLC DBA Echo Automotive -
      2012 	Page 1 of 18 

	 	(a) 	
      Central Office Services. Landlord shall provide
      reception services, access to common areas, including scheduled access to
      conference rooms; access to shared restrooms, exercise room and kitchen
      facilities; a centralized mail area, including a mailbox for Tenant;
      access to centralized copying and faxing facilities and equipment;
      Landlord’s standard centralized computer systems and services, including
      internet access; and security and janitorial services. Tenant is
      responsible for the cost of any additional office services required by
      Tenant. One CAT6 internet data jack for both voice and internet is
      included at no additional cost to the tenant. Additional data jacks can be
      accessed for a fee of $40.00 each. In the event that Tenant desires to
      replace or upgrade Landlord’s standard computer systems or services,
      Tenant must obtain Landlord’s prior written approval. Tenant shall pay all
      costs and fees incurred in connection with any replacement or upgrade of
      Landlord’s standard computer systems or services.

	 	 	 
	 	(b) 	
      Telephone Infrastructure Services. The Landlord
      will assist in arranging Tenant with local calling area telephone service,
      telecommunication lines and telephone and computer network jacks. Tenant
      is responsible for the cost of these lines and any other expenses
      associated with its telephone service and equipment, including but not
      limited to charges associated with the installation of additional
      telephone lines, additional bandwidth requirements, long distance charges,
      and all other expenses. In the event that Tenant desires to replace or
      upgrade telephone equipment or service, Tenant must obtain Landlord’s
      prior written approval. Tenant shall pay all costs and fees incurred in
      connection with such replacement or upgrade. Landlord shall provide Tenant
      with monthly invoices reflecting any such additional telephone systems and
      services charges and Tenant shall pay Landlord for such charges within
      fifteen (15) days of receipt of each invoice.

	 	 	 
	 	(c) 	
      Parking. Landlord shall provide Tenant with access
      to parking facilities, which shall be subject to availability and
      Landlord’s parking facilities policies. Handicapped parking is made
      available for those tenant/visitors with a handicap parking pass only, all
      others may be towed or ticketed.

          Section
1.03. Examination and Inspection of Leased Premises/Renovation
Expenses. Tenant acknowledges that it has had the opportunity to examine
and inspect and has examined and inspected the Leased Premises. Tenant accepts
the Leased Premises in their current “as is” condition, subject to the
responsibility of the Landlord to effect repairs and maintenance as below
provided.

          As
per the negotiations heretofore completed between the parties, Landlord, prior
to the inception of this Lease, has renovated and improved the Leased Premises.
As to such renovations and improvements, Landlord has paid or will pay the total
cost of such renovations and improvements. 

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 2 of 18 

Article II. 
Lease Term. 

          Section
2.01. Initial Lease Term. Unless sooner terminated under the provisions
hereof, the term of this Lease shall be for a period of one (1) year and (10)
ten months (the “Initial Term”), running concurrently with the April 1, 2012
lease of the Flagship Lab Addition, and commencing on the 1st day of
June, 2012 (hereinafter referred to as the “Commencement Date”) and ending on
the 31st day of March, 2014.

          Section
2.02. Lease Renewal. This Lease may be renewed for a subsequent term of
two (2) years (each a “Renewal Term”) with option for four (4) additional
renewal terms of two (2) years each, on such terms as are acceptable to Tenant
and to Landlord. The term of this Lease, including the Initial Term and any
Renewal Term(s), is referred to in this Lease as the “Term.” 

          Section
2.03. Provisions for Negotiation of Renewal. The parties shall commence
negotiations for a Renewal Term no sooner than ninety (90) days before the
expiration of the existing Term and such negotiations shall be completed no
later than thirty (30) days before the expiration of the existing Term.

          Section
2.04. Holding Over. In the event Tenant remains in possession of the
Leased Premises after the expiration of the Initial Term and/or expiration of
agreed upon renewal terms, without the execution of a lease extension agreement
or exercise of a renewal option, Tenant shall be deemed to be occupying the
Leased Premises as a tenant from month to month and all terms of the Lease shall
continue unabated, excepting for the length of term as herein specified. Such
month to month tenancy may at any time be terminated by either party upon thirty
(30) days written notice given to the other party.

Article III. 
Rental
Payments. 

          Section
3.01. Rent. Based upon negotiations between the parties, Tenant shall
pay, as rent, to Landlord, a sum equal to that as set forth in Exhibit “B.” Such
Rent shall be increased 3% upon each successive annual anniversary date of the
lease as shown in Exhibit “B.”

          Section
3.02. Rent During Renewal Terms. The rental payments for any Renewal Term
shall be in the monetary sum mutually agreed to by the parties prior to the
commencement of the Renewal Term.

          Section
3.03. Obligation of Tenant to Relocate in Madison County, IN. Tenant
agrees that, following termination or expiration of this Lease for any reason
(other than any termination by Landlord during the Initial Term without cause),
Tenant shall maintain its principal place of business and operations in the
State of Indiana for a period of time at least equal to the length of time that
Tenant leases space within the Flagship Enterprise Center (the “Term"). If,
after termination or expiration of this Lease, Tenant relocates its principal place of business and operations
outside of Madison County, Indiana prior to expiration of the Term, then Tenant
shall pay to Landlord an amount equal to the difference between (i) the fair
market rent for leasing Tenant Space during Tenant's tenancy at the Flagship
Enterprise Center and (ii) the total amount of rent paid by Tenant to Landlord
during such tenancy. The "fair market rent" shall be the stipulated fair market
rental as set forth in Exhibit “B”. The exception to this clause shall occur
with a change in the ownership of a majority of a tenant’s stock; if a majority
interest is acquired by another entity, and that entity requires the relocation
of the company outside of Madison County, Indiana, then this clause shall not
apply to the tenant.

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 3 of 18 

          Section
  3.04. Landlord’s Payment of Utilities. Landlord shall pay all usage
  and other monthly charges for all utility services rendered or furnished to
  or based upon or in connection with the Leased Premises, including, but not
  limited to, electricity, gas, water/sewage, or other utility or service. Provided,
  however, should Tenant’s use of the Leased Premises cause an unreasonable
  or unexpected use of any utility or utility service, Landlord reserves the right,
  upon notice to Tenant, to charge such excessive utility use and the charges
  therefore to Tenant. The use of the dynamometer and cycler
  located in the leased premises constitutes an extensive use, and utility costs
  for these specific pieces of equipment would be the responsibility of the Tenant.

          Section
3.05. Payment of Taxes on Real Estate and Personal Property. Landlord
covenants and agrees to assume and pay all real estate taxes, if any, incurred
and/or assessed against the real estate and improvements located on the Leased
Premises. Tenant covenants and agrees to assume and pay all personal property
taxes incurred and/or assessed against the personal property owned by Tenant
located on the Leased Premises.

          Section
3.06. Past Due Payments. In the event any rental payment or other payment
owing from Tenant to Landlord pursuant to this Lease shall become overdue for a
period in excess of ten (10) days, a late charge in the amount of five percent
(5%) of such overdue payment shall be paid by Tenant to Landlord, which late
charge shall be payable upon demand. Said late charge shall be in addition to
and not in lieu of any other remedy Landlord may have and any fee, charge,
payment and advancements landlord may be entitled to hereunder or by law. In the
event any rental payment or other payment owing from Tenant to Landlord pursuant
to this Lease shall become overdue for a period in excess of twenty-five (25)
days, such unpaid amounts shall bear interest from the due date thereof to the
date of payment at the rate of one and one-half percent (11⁄2%) per month. 

          Section
3.07. Place of Payments. All payments required to be paid, and all
statements required to be rendered by Tenant to Landlord shall be delivered to
Landlord at its address set forth in Section 15.01 hereof or to such other
address as Landlord specifies to tenant in accordance with such Section.

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 4 of 18 

Article IV. 
Use and
Occupancy. 

          Section
4.01. Use of Leased Premises. The Leased Premises in the office area
shall be used solely as office or laboratory research space. The Leased Premises
in the manufacturing area shall be used as manufacturing, research or lab space.
Landlord may relocate Tenant to comparable space within the Building at
Landlord's sole discretion. Tenant will have full access to and use of Tenant
Space, and the right to use and access all common areas within the Building on
an “as available” basis, subject to the Flagship Enterprise Center’s Building
Rules and Regulations, as amended or modified from time to time, which are
incorporated by reference into this Lease. Tenant hereby acknowledges receipt of
the current Building Rules and Regulations. Landlord shall provide to Tenant
written notice of any amendments or modifications to the Building Rules and
Regulations, which shall be effective with respect to Tenant after such notice
has been given. Tenant will not have access to any other areas within the
Building, including but not limited to the space of other tenants and Landlord’s
executive offices. 

          Section
4.02. Prohibition Against Waste and Unlawful Uses. Tenant shall not
commit or allow any waste or damage to be committed on any portion of the Leased
Premises. Tenant shall not occupy or use or permit any portion of the Leased
Premises to be occupied or used for any business or purpose which is unlawful,
disreputable or deemed to be hazardous, or permit anything to be done which
would in any way significantly increase the cost of insurance coverage on the
Leased Premises or its contents. 

          Section
4.03. Prohibition Against Use or Storage of Hazardous Materials. Tenant
shall not maintain, store or use any other hazardous materials upon the Leased
Premises without Landlord’s written consent. Hazardous materials shall mean any
hazardous, toxic or radioactive substance, matter, material or waste which is or
becomes regulated by any federal, state or local law, ordinance, order, rule,
regulations, code or other governmental restriction or requirement and includes,
without limitation, asbestos, petroleum products and the terms hazardous
substance and hazardous waste as defined in CERCLA and RCRA, as each may be
amended. If any hazardous materials are necessary for the carrying on of
tenant’s business operations, notice of existence of such materials must be
given to Landlord, and Tenant shall retain such licenses as may be required to
handle, transport and dispose of such materials in accordance with local, state
and federal rules, regulations and laws.

          Section
4.04. Environmental Responsibility. Tenant must supply Landlord Material
Safety Data Sheets for all chemicals used by Tenant, excepting ordinary office
chemicals used in laser printers and copiers, and other ordinary and widely used
business machines. Nevertheless, Tenant shall dispose of any and all such items
in an appropriate and responsible manner. Tenant must comply with the OSHA and
EPA requirements. Noise levels created by Tenant’s machinery must not exceed a
limit of 85 decibels or such noise level required by the applicable zoning
ordinance, whichever is lower. Tenant shall defend and hold Landlord harmless
from all fines, penalties and costs relating to any violation or noncompliance
with such laws and regulations. 

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 5 of 18 

          Section
4.05. Prohibition Against Excessive Floor Loads. Tenant shall not
overload the floors of the Tenant Space beyond their designed weight-bearing
capacity. Landlord reserves the right to direct the positioning of all heavy
equipment, furniture and fixtures that Tenant desires to place in the Tenant
Space so as to distribute weight properly. Landlord may require the removal of
any equipment, furniture or fixtures that exceeds appropriate weight limits for
the Tenant Space. 

          Section
4.06. Condition, Alterations and Additions. Tenant’s acceptance of the
Leased Premises on the Commencement Date shall be as is, where is and without
warranty of any kind as to zoning, condition, fitness for Tenant’s business
purpose or otherwise. Tenant assumes sole responsibility for examining the
Leased Premises prior to the Commencement Date to assure itself of the Leased
Premises’ compliance with this Lease and Tenant’s business purpose. Tenant
shall make no leasehold improvements, alterations or additions to any part of
the Leased Premises without the prior written consent of Landlord. All such
improvements, alterations and additions, excepting only unattached and movable
trade fixtures, shall be the sole property of Landlord.

          Section
4.07. Signage. All signage, whether installed inside the structure on the
Leased Premises or on the exterior thereof, shall be subject to the written
approval of Landlord.

Article V. 
Maintenance and
Repairs. 

          Section
5.01. Maintenance by Landlord. Landlord, at Landlord’s expense, shall
keep the foundation, walls and other structural parts, including the roof, of
the building in reasonable order, condition and repair; provided, however,
Landlord shall not be responsible for making any repairs or replacements
occasioned by any act or negligence of Tenant, its employees, contractors,
agents, invitees, licensees or concessionaires. Landlord shall also keep,
maintain, replace and repair the Leased Premises and every part thereof in good
order, condition and repair, including, but not limited to, interior and
exterior electrical, mechanical and utility equipment and systems; fixtures; and
interior walls, floors and ceilings.

          Section
5.02. Payment of Cleaning & Janitorial Service Expenses. Tenant shall
assume and pay all expenses for routine/customary cleaning and janitorial
services to keep the Leased Premises in a clean and orderly condition. Should
Tenant fail in this responsibility, Landlord reserves the right, but shall not
be obligated, to cause the Leased Premises to be cleaned and charges therefore
would be assessed to Tenant. Landlord shall assume and pay all expenses for
routine/customary cleaning and janitorial services to keep the Common Areas
within the Building in a clean and orderly condition. Tenants are responsible
for picking up after themselves in the kitchen area. 

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 6 of 18 

          Section
5.03. Landlord’s Provision of Snow Removal and Lawn Care. As additional
consideration for Tenant’s payment of Monthly Rental Payments, Landlord, during
the Initial Term and any Renewal Term, shall provide snow removal for Tenant’s
parking and walkways and shall further provide lawn care and landscaping
services to the area surrounding the Leased Premises.

          Section
5.04. Notice. Tenant shall give Landlord prompt written notice of the
need for any maintenance, replacement or repairs which Landlord is obligated to
make under foregoing Section 5.01 and of any material damage to the Leased
Premises or any part thereof.

          Section
5.05. Access to Leased Premises. Landlord and its agents may retain a
pass key to the Leased Premises and shall have the right to enter the Leased
Premises at any and all times to service and inspect the Leased Premises. During
the period beginning sixty (60) days prior to the expiration of the Initial Term
or any Renewal Term (unless Landlord has already agreed to extend the Term of
this Lease), Landlord’s staff may enter the Leased Premises to show the Leased
Premises to prospective tenants. Tenant shall have the right of access to its
leased area on a 24 hour a day, 7 day a week basis. 

Article VI. 
Insurance and
Indemnification. 

          Section
6.01. Public Liability Insurance:Tenant. Tenant, at Tenant’s expense,
shall maintain in full force and effect throughout the Lease Term a policy of
general public liability insurance naming Landlord as an additional insured and
covering any and all claims for injuries to or death of persons and damage to
property occurring in or upon the Leased Premises, in an amount not less than
One Million Dollars ($1,000,000.00) for injury to or death of any one person;
Two Million Dollars ($2,000,000.00) for injury to or death of more than one
person in the same accident or occurrence; and Five Hundred Thousand Dollars
($500,000.00) for damaged property arising out of any one accident or
occurrence.

          Section
6.02. Insurance on Tenant’s Property. Tenant’s fixtures, equipment,
merchandise or other personal property shall be kept at Tenant’s sole risk and
expense, and Tenant, at Tenant’s expense, shall maintain in full force and
effect throughout the Lease Term fire and extended coverage insurance on its
fixtures, equipment, merchandise and other personal property in or upon the
Leased Premises for its full insurable value on a replacement cost basis, if
obtainable, and if not obtainable, for the full amount of the estimated cash
value for such property.

          Section
6.03. Insurance on Leased Premises. Landlord shall maintain in full force
and effect throughout the Lease Term broad form fire and extended coverage
insurance on the Leased Premises and Landlord’s fixtures, equipment and personal
property, in, on or about the Leased Premises, for their full insurable value on
a replacement cost basis, if obtainable, and if not obtainable,
for the full amount of its actual cash value. 

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 7 of 18 

          Section
6.04. Waiver of Subrogation. Each of the parties hereto hereby waives and
releases any and all rights of recovery which it might have against the other
for any loss or damage, whether or not caused by any alleged negligence of the
other party, its agents, licensees or invitees, to the extent that such loss or
damage is or would be covered by any insurance required to be maintained under
this Lease. Each policy of insurance required under this Lease shall contain an
endorsement to such effect, so long as such endorsement is available. Should
either Landlord or Tenant be unable to procure such an endorsement, the other
party shall be relieved of carrying insurance with such an endorsement and the
foregoing provisions for waiver of right of recovery against the other (right of
subrogation) shall be of no further force or effect. 

          Section
6.05. Tenant’s Indemnification. Unless caused or contributed to by the
gross negligence or willful misconduct of Landlord, its agents or employees,
Tenant assumes all risks and responsibilities for accidents, injuries or damages
to person or property and agrees to indemnify and hold Landlord harmless from
any and all claims, liabilities, losses, costs and expenses (including
attorneys’ fees) arising from or in connection with its, use or control of the
Leased Premises and any improvements thereon during the Lease Term or Tenant’s
breach of any term, covenant, condition or agreement to be observed by Tenant
under this Lease. Tenant shall be liable to Landlord for any damages caused by
gross negligence or willful misconduct to the Leased Premises and for gross
negligence or willful misconduct done by Tenant or any person coming on the
Leased Premises by the license or invitation of Tenant, express or implied
(except Landlord, its agents or employees). 

          Section
6.06. Tenant’s Waiver of Claims. Landlord shall not be liable for, and
Tenant waives all claims against Landlord for, any injuries, damages (including,
but not limited to, consequential damages) or losses of or to person, property
or otherwise, sustained by Tenant and not covered by insurance, unless resulting
from Landlord’s gross negligence or willful misconduct. All property of Tenant
kept or stored in, upon or about the Leased Premises shall be so kept or stored
at the sole risk of Tenant; and Tenant shall hold Landlord harmless from any
claims, costs or expenses, including attorneys’ fees, arising out of damage
thereto, unless such claim arises out of grossly negligent or willful misconduct
on the part of Landlord, its agents and employees. 

          Section
  6.07. Certificates of Insurance. For each type of insurance which Landlord
  or Tenant are required to maintain under this Lease, each shall furnish the
  other an endorsed copy of such insurance policy showing that each such type
  of insurance is in full force and effect and not cancelable without thirty (30)
  days prior written notice to the other party.

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 8 of 18 

Article VII. 
Eminent
Domain. 

          Section
7.01. Legal Effect. If the whole or any part of the Leased Premises is
taken for public or quasi-public use by a governmental or other authority having
the power of eminent domain, or shall be conveyed to any such authority in lieu
of such taking, and if such taking or conveyance shall cause the remaining part
of the Leased Premises to be untenantable and inadequate for Tenant’s Business,
then Landlord or Tenant may, at their option, terminate this Lease as of the
date Tenant is required to surrender possession of the Leased Premises by giving
the other party notice of such termination. If a part of the Leased Premises
shall be taken or conveyed, but the remaining part is tenantable and adequate
for Tenant’s Business (as reasonably determined by Tenant, and with notice of
such determination given to Landlord within fifteen (15) days of any such
taking), then this Lease shall be terminated as to the part taken or conveyed as
of the date Tenant surrenders possession thereof; Landlord shall make such
repairs, alterations and improvements as may be necessary to render the part not
taken or conveyed tenantable; and the rent shall be reduced in proportion to the
part of the Leased Premises so taken or conveyed.

          Section
7.02. Payment of Award. All compensation awarded for such taking or
conveyance shall be the sole property of Landlord, without any deduction
therefrom for any present or future estate of Tenant, and Tenant hereby assigns
to Landlord all its right, title and interest in and to any such award;
provided, however, Tenant shall have the right to recover from such taking
authority, but not from Landlord, such compensation as may be awarded to Tenant
on account of moving and relocation expenses and depreciation to and removal of
Tenant’s property.

Article VIII. 
Destruction and
Damage. 

          Section
8.01. Damage by Casualty. In the event of a fire or other casualty in the
Leased Premises, Tenant shall give prompt notice thereof to Landlord. If the
Leased Premises shall be partially destroyed by fire or other casualty so as to
render the Leased Premises partially or wholly untenantable, the Rent shall be
abated on the basis of leasable square footage remaining and occupied
thereafter, until such time as the Leased Premises are made fully fit for use by
Tenant; provided, however, that if gross negligence or willful misconduct of
Tenant, or its agents or employees shall have contributed to such fire or other
casualty, the Rental shall not be abated during the period of restoration of the
Leased Premises. 

          Section
8.02. Restoration; Partial or Total Destruction of Building. In the event
the Building shall be partially or totally destroyed by fire or other casualty,
the same shall be repaired as soon as is reasonably possible, at the expense of
Landlord, unless Landlord shall elect to terminate this Lease as hereinafter
provided. If damage to the Leased Premises is to such extent that the cost of
restoration, as estimated by Landlord will exceed fifty percent (50%) of the
replacement value of the Leased Premises (including the building standard improvements) or thirty
percent (30%) of the replacement value of the Building (exclusive of the
foundation) in its condition just prior to the occurrence of the damage,
Landlord may, no later than the sixtieth (60th) day following such
damage, give Tenant notice that it elects to terminate this Lease. If such
notice shall be given: 

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 9 of 18 

	 	(a) 	
      This Lease shall terminate on the twentieth (20th
      ) day following the giving of said notice;

	 	 	 
	 	(b) 	
      Tenant shall surrender possession of the Leased Premises
      on or before such termination date; and

	 	 	 
	 	(c) 	
      The rental provided hereunder shall be apportioned as of
      the date of such termination and any Rental paid for any period beyond
      said date shall be refunded to Tenant.

Unless Landlord so elects to terminate this Lease, Landlord
shall proceed with the restoration of the Leased Premises and/or the Building as
soon as reasonably possible. If the damage to the Building as the result of any
casualty is such that the Leased Premises cannot be used by Tenant for Tenant’s
Business for a period of three (3) or more months, as estimated by Landlord,
either Landlord or Tenant may cancel and terminate this Lease by giving notice
of such termination to the other party within thirty (30) days after the date of
such casualty. In such event of termination, all Rental shall be apportioned as
of the date of such termination and any Rental paid for any period beyond said
date shall be refunded to Tenant. In no event, however, shall Tenant have the
right to cancel or terminate this Lease if the gross misconduct or willful
neglect of Tenant, or its agents, employees or invitees shall have contributed
to the cause of such casualty. 

Article IX. 
Events of Default and
Remedies. 

          Section
9.01. Events of Default. The occurrence of any one (1) or more of the
following events shall be deemed to be an “Event of Default”: 

	 	(a) 	
      The failure of Tenant to pay any installment of rent
      within thirty (30) days after its due date;

	 	 	 
	 	(b) 	
      The failure of Tenant to perform any other of its
      covenants under this Lease or to comply with the Building Rules and
      Regulations within thirty (30) days after written notice or demand
      therefore is served upon Tenant by Landlord;

	 	 	 
	 	(c) 	
      The making by Tenants of an assignment for the benefit of
      creditors;

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 10 of 18 

	 	(d) 	
      The levying of a writ of execution or attachment on or
      against the Leased Premises or Tenant’s interest therein as the property
      of Tenant, and the same not being released or discharged within sixty (60)
      days thereafter;

	 	 	 
	 	(e) 	
      The institution of proceedings in a court of competent
      jurisdiction for the reorganization, liquidation, voluntary or involuntary
      dissolution of Tenant, or for its adjudication as a bankrupt or insolvent,
      or for the appointment of a receiver of the property of Tenant, and said
      proceedings are not dismissed within sixty (60) days after the institution
      of said proceedings; or

	 	 	 
	 	(f) 	
      A mechanic’s lien or similar lien upon the Leased
      Premises or the building is asserted of record in connection with work
      allegedly done in or about the Leased Premises at the request or instance
      of Tenant, and the same is not removed by Tenant, or adequate security for
      the satisfaction thereof deposited with Landlord, within forty-five (45)
      days from the date any such lien was filed in the office of the Recorder
      of Madison County, Indiana.

          Section
9.02 Remedies. Upon the occurrence of an Event of Default, Landlord shall
have the option to: 

	 	(a) 	
      Re-enter the Leased Premises with or without process of
      law, using such means as may be necessary to remove all persons and
      property therefrom; and/or

	 	 	 
	 	(b) 	
      Exercise any other right or remedy available to Landlord
      at law or in equity in addition to or as an alternative to any of the
      other rights and remedies of Landlord herein specified upon the occasion
      of any such Event of Default.

In the event that subsequent to an Event of Default, Landlord
should relet the Leased Premises or a portion thereof during the balance of the
Term of this Lease, the proceeds of such reletting, after deduction of all
reasonable costs incurred by Landlord in connection with repossession and
reletting of the Leased Premises (including without limitation, all legal fees,
leasing commissions, remodeling costs and similar expenses) shall be applied to
satisfaction of Tenant’s obligations hereunder. Landlord shall have the right to
file suit to recover any sums which have fallen due under this Lease from time
to time on one (1) or more occasions without being obligated to wait until the
expiration of the Term of this Lease. Alternatively, in the event Landlord
should elect to terminate this Lease, Landlord shall be entitled to recover
forthwith as damages from Tenant a sum of money equal to: (i) the cost of
recovering possession of the Leased Premises, (ii) the unpaid Rent owed at the
time of such termination; (iii) the balance of the Rent for the remainder of the
term; and (iv) any other sum of money or damages owed by Tenant to Landlord,
less the fair market rental value of the Leased Premises for the remainder of
the term of this Lease. 

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 11 of 18 

Article X. 
Subordination.

          Section
10.01. Subordination. Upon request by Landlord, this Lease shall become
subordinate to the lien of a mortgage given by Landlord, if such mortgage
provides that Tenant’s rights under this Lease and possession of the Leased
Premises shall not be disturbed as long as it performs its duties hereunder.
Tenant shall enter into any confirming subordination and non-disturbance
agreement such mortgagee may reasonably require.

Article XI. 
Assignment and
Subletting. 

          Section
11.01. Assignment and Subletting. Tenant shall not assign or encumber
this Lease or any interest herein, or sublet the Leased Premises or any part
thereof, or permit the use of the Leased Premises or any part thereof by any
party other than Tenant, without the prior written consent of Landlord. 

Article XII. 
Covenant of Quiet
Enjoyment. 

          Section
12.01. Covenant of Quiet Enjoyment. Landlord covenants and warrants that
it has all necessary right, title and interest in the Leased Premises to enter
into this Lease and grant tenant the rights herein. Landlord agrees that if
Tenant performs all the covenants and agreements herein provided to be performed
by Tenant, Tenant shall, at all times during the Lease Term, have the peaceable
and quiet enjoyment of possession of the Leased Premises without any manner of
hindrance from Landlord or any persons claiming under Landlord subject to the
terms of any mortgage to which this Lease is subordinate or subordinated to.

Article XIII. 
Termination of
Lease and Surrender of Leased Premises. 

          Section
13.01. Termination. This Lease shall Terminate upon any one (1) of the
following occurrences:

	 	(a) 	
      Upon expiration of ten (10) days following written notice
      by Landlord to Tenant, if Tenant continues to be in default in the
      performance of obligations of this Lease required to be performed by
      Tenant;

	 	 	 
	 	(b) 	
      Upon expiration of the Initial Term or any Renewal Term
      where no extension of the Initial Term or Renewal Term has been
      negotiated;

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 12 of 18 

	 	(c) 	
      Upon expiration of thirty (30) days following written
      notice by one party to the other during any holdover period;

	 	 	 
	 	(d) 	
      Upon expiration of thirty (30) days following written
      demand by Landlord to Tenant, if Tenant continues to be more than Five
      Hundred Dollars ($500.00) in arrears in the payment of monies due and
      owing Landlord’s list of recommended Preferred Providers as listed in the
      Flagship Enterprise Center Building Rules and Regulations as amended from
      time to time, for services rendered to Tenant.

	 	 	 
	 	(e) 	
      Upon expiration of thirty (30) days following written
      notice of Landlord’s Board of Director’s written findings that Tenant,
      despite written notice and provision of a ninety (90) day period to cure,
      continues by its conduct to:

		(i.) 	
      depart in a material and significant manner from its
      business intentions, as originally submitted to Landlord at commencement
      of the Initial Term; 

		(ii.) 	
      fail to exercise due diligence in the execution of its
      business plan and/or pursuit of its business objectives; 

		(iii.) 	
      be absent from the Building for protracted periods
      without appropriate excuse or justification; 

		(iv.) 	
      violate the terms and provisions of the Articles of
      Incorporation of the Flagship Enterprise Center, Inc.

          Section
13.02. Surrender. At the termination or expiration of this Lease, Tenant
shall deliver the Tenant Space in good order and repair, ordinary wear and tear
excepted. Tenant shall not be required to surrender any of Tenant's trade
fixtures, equipment or personal property, unless permanently affixed to the
Tenant Space, provided that any trade fixtures, equipment or personal property
of Tenant not removed within forty-eight (48) hours following the termination or
expiration of this Lease shall be deemed abandoned and shall become the sole and
exclusive property of the Landlord. Tenant shall repair any damage to the Tenant
Space caused by removal of any trade fixtures, equipment, or personal property
of Tenant. In no event will Tenant have the right to hold over past the
termination of this Lease. Tenant acknowledges that time is of the essence and
that it is of critical importance for Landlord to have possession of the Tenant
Space upon the termination or expiration of this Lease. In the event Tenant does
not vacate the Tenant Space as required in this Lease, Landlord shall be
entitled to any and all remedies at law or in equity, including, without
limitation, the right to change locks on the building, remove all trade
fixtures, equipment or personal property from the Tenant Space and/or to
demolish all improvements in the Tenant Space, all which shall be without any
liability or claim against Landlord, which are hereby waived by Tenant.

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 13 of 18 

Article XIV. 
Enforcement
Expenses. 

          Section
14.01. Enforcement Expenses. In the event that either party hereto shall
be successful in enforcing against the other any remedy, legal or equitable, for
a breach of any of the provisions of this lease, there shall be included in the
judgment or any decree the reasonable expenses and attorney fees of the
successful party against the unsuccessful party.

Article XV. 
Notices. 

          Section
15.01. Notices. All notices and demands which may or are required to be
given by either party to the other hereunder shall be in writing and shall be
deemed to have been fully given two (2) days after being deposited with the
United States Postal Service, or its successor, as certified or registered mail,
postage prepaid, and addressed as follows: 

	 	To Tenant: 	ControlledCarbon, LLC 
	 	  	DBA Echo Automotive 
	 	  	12157 E. Collembine Dr. 
	 	  	Scottsdale, AZ 85259 
	 	  	  
	 	  	Attention: CEO 
	 	  	  
	 	  	  
	 	To Landlord: 	Flagship Enterprise Center, Inc.
    
	 	  	2701 Enterprise Drive 
	 	  	Anderson, Indiana 46013 
	 	  	  
	 	  	Attention: President / CEO
  

or to such other address as either party may designate from
time to time for itself by notice similarly given. Any notice to be given may
also be given by personal delivery of the written notice to the person in charge
of the business operations at the Leased Premises at the time of such notice,
and shall be deemed effective as of the date such personal delivery is made.

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 14 of 18 

Article XVI. 
Compliance With
Economic Development Administration (“EDA”)
Civil Rights and
Nonrelocation Regulations. 

          Section
16.01. Compliance. Inasmuch as Landlord has received benefits and grants
from EDA, Tenant agrees that it shall comply with EDA civil rights requirements,
which, in general, prohibit unlawful discrimination practices in the work place.
Also, Tenant agrees that it shall comply with EDA nonrelocation regulations,
which, in general, prohibit use of EDA financial assistance to assist employers
from transferring jobs from one commuting area to another.

Article XVII. 
General
Provisions. 

          Section
17.01. Relationship of the Parties. Nothing herein contained shall be
deemed or construed by the parties hereto, nor by any third party, as creating a
relationship of principal and agent, partnership or joint venture between the
parties hereof, it being understood and agreed that nothing herein, no any acts
of the parties hereto, shall be deemed to create any relationship between the
parties hereto other than the relationship of Landlord and Tenant.

          Section
17.02. Provision for Non-Waiver. No delay or omission of the right to
exercise any power by either party shall impair any such right or power, or
shall be construed as a waiver of any default or as an acquiescence thereon. One
or more waivers of any covenant, term or condition of this Lease by either party
shall not be construed by the other party as a waiver of subsequent breach of
the same covenant, term or condition. Consent or approval by either party to or
of any act by the other party of a nature requiring consent or approval shall
not be deemed to waive or render unnecessary consent to or approval of any
subsequent similar act.

          Section
17.03. Recording Memorandum of Lease. Either party hereto, upon written
request of the other, shall join in the execution of a Memorandum of Lease in
proper form for recording or filing in the office of the Recorder of Madison
County, Indiana, which Memorandum shall set forth the existence of terms of this
Lease, with subordination of the leasehold interest to any mortgage by the
Landlord and such other terms as the parties may mutually agree upon. 

          Section
17.04. Law of Indiana Governs. The laws of the State of Indiana shall
govern the validity, performance and enforcement of this Lease. The invalidity
or unenforceability of any provision of this Lease shall not affect or impair
any other provision.

          Section
17.05. Complete Agreement. Headings of the several articles of sections
contained herein are for convenience only and do not define, limit, or construe
the contents of such articles and sections. All negotiations, considerations,
representations and understandings between the parties are
incorporated herein and may be modified or altered only by memorandum in writing
signed by the parties hereto.

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 15 of 18 

          Section
17.06. Agreement Binding on Successor and Assigns. The covenants,
agreements and obligations herein contained shall extend to, bind and inure to
the benefit not only of the parties hereto, but their respective personal
representatives, heirs, successors and assigns.

          Section
17.07. Tenant’s Compliance with Rules and Regulations. Tenant agrees to
conduct its business and operations so as to comply with the Rules and
Regulations adopted by the Landlord.

          IN
WITNESS WHEREOF, the said parties have hereunto set their hands this _________,
day of ___________, 2012. 

	CONTROLLEDCARBON, LLC 	FLAGSHIP ENTERPRISE CENTER 
	Tenant 	Landlord 
	  	  
	  	  
	  	  
	  	  
	BY:_______________________________________________	BY::_______________________________________________
	             
       William D. Kennedy, CEO 	               Charles
      E. Staley, President/CEO 

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 16 of 18 

EXHIBIT “A” 

FIRST FLOOR DIAGRAM – Labs 1, 2, 3, and 4

 

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 17 of 18 

EXHIBIT “B” 

RENT SCHEDULE 

Rent Calculation 

          Effective
June 1, 2012, Tenant will lease the space known as the *Labs 1 through 4,
located within the Flagship Enterprise Center facility. This space includes four
labs and houses a full chassis dynamometer and control room, totaling 5814
square feet. The rental rate for said space is set at Six Dollars and Zero Cents
($6.00) per square foot for the first six months of the Term; after which rent
will be ramped up to Twelve Dollars and Zero Cents ($12.00) per square foot.

          The
monthly rent for this space is the product of the square footage times the rent
per square foot, divided by 12 months; to which is added a base fee of $35 for
the use of a fob security system allowing Tenant access into Leased
quarters.

          Rent
for subsequent annual Terms will incorporate a 3% increase of the base rental
fee (excluding the fob access fee), which will become effective upon each year’s
anniversary date of April 1st. 

	TIME PERIOD 	MONTHLY RENT 
	 	 
	Initial Term (first 6 months): 	 
	 	 
	          6/01/12
      to 11/30/12      ($6.00/sq ft) 	$2,907.00 + $35 = $2,942.00 
	 	 
	Initial Term (4 months after 	 
	 	 
	          12/01/12
      to 3/31/13      ($12.00/sq ft) 	$5,814.00 + $35 = $5,849.00 
	 	 
	Initial Year 2: 	 
	 	 
	          4/01/2013
      to 3/31/2014 	$5988.42 + $35 = $6,023.42 
	 	 
	2 Year Renewal Option: 	 
	 	 
	          4/01/2014
      to 3/31/2015 	$6,168.07 + $35 = $6,203.07 
	 	 
	          4/01/2015
      to 3/31/2016 	$6,353.11 + $35 = $6,388.11

*The Flagship Enterprise Center reserves the right to
nullify a HOLD placed on leasable space if a viable offer is received for
immediate lease. 

	ControlledCarbon, LLC DBA Echo Automotive - 2012 	Page 18 of 18

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