Document:

Exhibit 10.34

 

LEASE AGREEMENT

 

CONCOURSE

 

ATLANTA, GEORGIA

 

 

	
  LANDLORD:

  	
   

  	
  485
  PROPERTIES, LLC

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
   

  	
  FIRST
  HORIZON PHARMACEUTICAL CORPORATION

  
	
   

  	
   

  	
   

  
	
  BUILDING:

  	
   

  	
  CORPORATE
  CENTER V

  
	
   

  	
   

  	
   

  
	
  FLOORS:

  	
   

  	
  17
  AND 18

  
	
   

  	
   

  	
   

  
	
  SQ.
  FT.:

  	
   

  	
  50,994

  
	
   

  	
   

  	
   

  
	
  TERM:

  	
   

  	
  EIGHT
  (8) YEARS

  

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  PREMISES AND TERM

  	
  1

  
	
  2.

  	
   

  	
  RENT

  	
  2

  
	
  3.

  	
   

  	
  OPERATING COSTS

  	
  3

  
	
  4.

  	
   

  	
  DELIVERY OF THE PREMISES

  	
  9

  
	
  5.

  	
   

  	
  MEMORANDUM CONFIRMING TERM

  	
  10

  
	
  6.

  	
   

  	
  USE

  	
  10

  
	
  7.

  	
   

  	
  TENANT’S CARE OF THE PREMISES

  	
  10

  
	
  8.

  	
   

  	
  SERVICES

  	
  11

  
	
  9.

  	
   

  	
  DESTRUCTION OR DAMAGE TO PREMISES

  	
  14

  
	
  10.

  	
   

  	
  DEFAULT BY TENANT; LANDLORD’S REMEDIES

  	
  15

  
	
  11.

  	
   

  	
  ASSIGNMENT AND SUBLETTING

  	
  18

  
	
  12.

  	
   

  	
  CONDEMNATION

  	
  19

  
	
  13.

  	
   

  	
  INSPECTIONS

  	
  19

  
	
  14.

  	
   

  	
  SUBORDINATION

  	
  19

  
	
  15.

  	
   

  	
  INDEMNIFICATION AND HOLD HARMLESS

  	
  20

  
	
  16.

  	
   

  	
  INSURANCE

  	
  21

  
	
  17.

  	
   

  	
  REMEDIES CUMULATIVE

  	
  22

  
	
  18.

  	
   

  	
  ENTIRE AGREEMENT - NO WAIVER

  	
  23

  
	
  19.

  	
   

  	
  HOLDING OVER

  	
  23

  
	
  20.

  	
   

  	
  HEADINGS

  	
  23

  
	
  21.

  	
   

  	
  NOTICES

  	
  23

  
	
  22.

  	
   

  	
  HEIRS, SUCCESSORS, AND ASSIGNS - PARTIES

  	
  24

  
	
  23.

  	
   

  	
  ATTORNEY’S FEES

  	
  24

  
	
  24.

  	
   

  	
  TIME OF ESSENCE

  	
  24

  
	
  25.

  	
   

  	
  NO ESTATE IN LAND

  	
  25

  
	
  26.

  	
   

  	
  INTENTIONALLY DELETED

  	
  25

  
	
  27.

  	
   

  	
  INTENTIONALLY DELETED

  	
  25

  
	
  28.

  	
   

  	
  PARKING ARRANGEMENTS

  	
  25

  
	
  29.

  	
   

  	
  RULES AND REGULATIONS

  	
  25

  
	
  30.

  	
   

  	
  INTENTIONALLY DELETED

  	
  26

  
	
  31.

  	
   

  	
  LATE PAYMENTS

  	
  26

  
	
  32.

  	
   

  	
  ESTOPPEL CERTIFICATE

  	
  26

  
	
  33.

  	
   

  	
  SEVERABILITY AND INTERPRETATION

  	
  26

  
	
  34.

  	
   

  	
  MULTIPLE TENANTS

  	
  26

  
	
  35.

  	
   

  	
  FORCE MAJEURE

  	
  27

  
	
  36.

  	
   

  	
  QUIET ENJOYMENT

  	
  27

  
	
  37.

  	
   

  	
  BROKERAGE COMMISSION; INDEMNITY

  	
  27

  
	
  38.

  	
   

  	
  EXCULPATION OF LANDLORD

  	
  27

  
	
  39.

  	
   

  	
  ORIGINAL INSTRUMENT

  	
  28

  
	
  40.

  	
   

  	
  GEORGIA LAW

  	
  28

  
	
  41.

  	
   

  	
  NO RECORDATION OF LEASE

  	
  28

  
	
  42.

  	
   

  	
  HAZARDOUS WASTES

  	
  28

  
	
  43.

  	
   

  	
  PATRIOT ACT

  	
  29

  
	
  44.

  	
   

  	
  LEASE BINDING UPON DELIVERY

  	
  29

  
	
  45.

  	
   

  	
  SPECIAL STIPULATIONS

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature Page

  	
   

  

 

ii

 

Exhibit “A”
- Space Plan of Premises

 

Exhibit “A-l”
– Space Plan of Expansion Space

 

Exhibit “B” - Description of the Property

 

Exhibit “C”-Work Letter

 

Exhibit “C-l” – General Building Specifications to be Performed by
Landlord

 

Exhibit “D” - Acceptance of Premises Form

 

Exhibit “E” - Rules and Regulations

 

Exhibit “F” - Special Stipulations

 

Exhibit “G” – Cleaning Specifications

 

Exhibit “H” – Description of Building Standard Materials

 

iii

 

DEFINITIONS

 

	
  Defined Term

  	
   

  	
  Paragraph

  
	
   

  	
   

  	
   

  
	
  ADA

  	
   

  	
  Exhibit “C”

  
	
  Additional
  Electrical Equipment

  	
   

  	
  8(b)(iv)

  
	
  Allowance

  	
   

  	
  Exhibit “C”

  
	
  Architect

  	
   

  	
  Exhibit “C”

  
	
  Base
  Building Improvements

  	
   

  	
  Exhibit “C”

  
	
  Building

  	
   

  	
  l(a)

  
	
  Building
  Plans and Specifications

  	
   

  	
  Exhibit “C”

  
	
  Building
  Standard Materials

  	
   

  	
  Exhibit “C”

  
	
  Change
  Order

  	
   

  	
  Exhibit “C”

  
	
  Change
  Order Effect Notice

  	
   

  	
  Exhibit “C”

  
	
  Commencement
  Date

  	
   

  	
  l(b)

  
	
  Completion
  Date

  	
   

  	
  Exhibit “C”

  
	
  Construction
  Contract

  	
   

  	
  Exhibit “C”

  
	
  Contractor

  	
   

  	
  Exhibit “C”

  
	
  Expiration
  Date

  	
   

  	
  l(b)

  
	
  Force
  Majeure

  	
   

  	
  35

  
	
  Initial
  Operating Costs

  	
   

  	
  3(a)

  
	
  Landlord

  	
   

  	
  Caption

  
	
  Lease

  	
   

  	
  Caption

  
	
  Lease
  Year

  	
   

  	
  l(c)

  
	
  Monthly
  Rental

  	
   

  	
  2(a)

  
	
  Mortgagee

  	
   

  	
  14(a)

  
	
  Operating
  Costs

  	
   

  	
  3(b)

  
	
  Premises

  	
   

  	
  l(a)

  
	
  Property

  	
   

  	
  l(d) and
  Exhibit “B”

  
	
  Rent

  	
   

  	
  2(c)

  
	
  Rules

  	
   

  	
  6
  and Exhibit “E”

  
	
  Shared
  Service

  	
   

  	
  8(e)

  
	
  Substantial
  Completion or Substantially Complete

  	
   

  	
  Exhibit “C”

  
	
  Tenant

  	
   

  	
  Caption

  
	
  Tenant
  Delay

  	
   

  	
  Exhibit “C”

  
	
  Tenant
  Improvement Construction Documents

  	
   

  	
  Exhibit “C”

  
	
  Tenant
  Improvement Costs

  	
   

  	
  Exhibit “C”

  
	
  Tenant
  Improvements

  	
   

  	
  Exhibit “C”

  
	
  Tenant
  Space Plans

  	
   

  	
  Exhibit “C”

  
	
  Tenant’s
  Share

  	
   

  	
  3(c)

  
	
  Tenant’s
  Work

  	
   

  	
  Exhibit “C”

  
	
  Term

  	
   

  	
  l(b)

  
	
  Total
  Building Rentable Area

  	
   

  	
  l(a)

  
	
  Working
  Day

  	
   

  	
  Exhibit “C”

  

 

iv

 

LEASE AGREEMENT

CONCOURSE

 

THIS LEASE AGREEMENT (this “Lease”), made this 7th
day of February, 2006, by and between 485 PROPERTIES, LLC (“Landlord”),
a Delaware limited liability company, which has as its address for all purposes
hereunder as follows:

 

485 Properties, LLC

c/o Cousins Properties Services LP

Five Concourse Parkway

Suite 1200

Atlanta, Georgia 30328-6111

 

and FIRST HORIZON PHARMACEUTICAL CORPORATION (“Tenant”), a Delaware
corporation, which has as its address prior to the Commencement Date:

 

6195 Shiloh Road

Alpharetta, Georgia 30005

 

and after the Commencement Date:

 

Five Concourse Parkway

Suite 1800

Atlanta, Georgia 30328-6111

 

WITNESSETH:

 

1.             PREMISES AND TERM

 

(a)           Landlord hereby rents and leases to Tenant, and Tenant hereby rents and
leases from Landlord, the following described space (the “Premises”):

 

Floors: 17 and 18

Rentable Square Feet: 50,994

Usable Square Feet:    46,358

 

located at the herein called “Building”:

 

Building: Corporate Center V

Address: Five Concourse Parkway

Fulton County, Georgia

Total Building Rentable Area: 687,107

 

(b)           The Premises are more particularly shown and outlined on the space
plans attached hereto as Exhibit “A”, and made a part hereof.
Subject to the provisions of Paragraph 4 below, the term of this Lease (the “Term”)
shall commence on the earliest to occur of (i) the thirtieth (30th) day
following the date the Tenant Improvements have been Substantially Complete or
the date the Tenant Improvements would have been Substantially Complete in the

 

1

 

absence
of Tenant Delay; (ii) the date Tenant occupies the Premises or any portion
thereof for the purpose of conducting business therefrom; or (iii) July 15,
2006 (the earliest to occur of (i), (ii) or (ii) being hereinafter
referred to as the “Commencement Date”), and shall end at midnight on the last
day of the ninety-sixth (96th) full calendar month following the Commencement
Date (the “Expiration Date”), unless sooner terminated as herein provided.
Notwithstanding the foregoing, this Lease shall be effective and enforceable
upon its execution and delivery by Landlord and Tenant.

 

(c)           “Lease Year” as used herein shall mean (i) each and every twelve
(12) month period during the Term, or (ii) in the event of Lease
expiration or termination, the period between the last twelve (12) calendar
month period and said expiration or termination; provided, however, that the
first Lease Year shall commence on the Commencement Date and expire on the last
day of the twelfth (12th) full calendar month following the
Commencement Date.

 

(d)           The Building and the land upon which said Building is located (which includes
certain parking facilities serving the Building), more particularly described
on Exhibit “B”, attached hereto and by this reference incorporated
herein, is herein referred to as the “Property”.

 

(e)           The Premises shall include the appurtenant right to use, in common with
others, public lobbies, entrances, stairs, corridors, elevators, and other
public portions of the Building and of the office park commonly known as “Concourse”.
All the windows and outside walls of the Premises, and any space in the
Premises used for shafts, pipes, conduits, ducts, telephone ducts and equipment,
electric or other utilities, sinks or other Building facilities, and the use
thereof and access thereto through the Premises for the purposes of operation,
maintenance, inspection, display and repairs are hereby reserved to Landlord.
No easement for light, air or view is granted or implied hereunder, and the
reduction or elimination of Tenant’s light, air or view will not affect this
Lease.

 

2.             RENT

 

(a)           Tenant shall pay to Landlord at P.O. Box 402862, Atlanta, Georgia
30384-2862 or at such other place Landlord designates, without demand,
deduction or setoff, an annual rental for each Lease Year of the Term as set
forth below in this Paragraph 2(a), due and payable in equal monthly
installments (the “Monthly Rental”) in advance on the first (1st) day of each
calendar month during the Term, except that Tenant shall pay the first
installment of Monthly Rental upon the execution and delivery of this Lease by
Tenant. Said annual rental shall be paid as follows:

 

	
   

  	
   

  	
  Rate (per rentable

  	
   

  	
  Annual Rental

  	
   

  	
   

  	
   

  
	
  Months

  	
   

  	
  square foot per annum)

  	
   

  	
  (annualized basis)

  	
   

  	
  Monthly Rental

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1-12

  	
   

  	
  $

  	
  18.75

  	
   

  	
  $

  	
  956,137.56

  	
   

  	
  $

  	
  79,678.13

  	
   

  
	
  13-24

  	
   

  	
  $

  	
  19.27

  	
   

  	
  $

  	
  982,654.44

  	
   

  	
  $

  	
  81,887.87

  	
   

  
	
  25-36

  	
   

  	
  $

  	
  19.80

  	
   

  	
  $

  	
  1,009,681.20

  	
   

  	
  $

  	
  84,140.10

  	
   

  
	
  37-48

  	
   

  	
  $

  	
  20.34

  	
   

  	
  $

  	
  1,037,217.96

  	
   

  	
  $

  	
  86,434.83

  	
   

  
	
  49-60

  	
   

  	
  $

  	
  20.90

  	
   

  	
  $

  	
  1,065,774.60

  	
   

  	
  $

  	
  88,814.55

  	
   

  
	
  61-72

  	
   

  	
  $

  	
  21.47

  	
   

  	
  $

  	
  1,094,841.24

  	
   

  	
  $

  	
  91,236.77

  	
   

  
	
  73-84

  	
   

  	
  $

  	
  22.06

  	
   

  	
  $

  	
  1,124,927.64

  	
   

  	
  $

  	
  93,743.97

  	
   

  
	
  85-96

  	
   

  	
  $

  	
  22.67

  	
   

  	
  $

  	
  1,156,034.04

  	
   

  	
  $

  	
  96,336.17

  	
   

  

 

2

 

(b)           If the Term commences at any time other than the first day of a month
or terminates at any time other than the last day of a month, the amount of
Rent due from Tenant shall be proportionately adjusted based on that portion of
the month that this Lease is in effect.

 

(c)           The term “Rent”, as used herein, shall mean Monthly Rental, Tenant’s
Share of Operating Costs and any other amounts due of Tenant hereunder.

 

(d)           At all times that Landlord shall direct Tenant to pay Rent to a “lockbox”
or other depository whereby checks issued in payment of Rent are initially
cashed or deposited by a person or entity other than Landlord (albeit on
Landlord’s authority), then, for any and all purposes under this Lease; (i) Landlord
shall not be deemed to have accepted such payment until ten (10) days
after the date on which Landlord shall have actually received such funds, and (ii) Landlord
shall be deemed to have accepted such payment if (and only if) within said ten (10) day
period, Landlord shall not have refunded (or attempted to refund) such payment
to Tenant. Nothing contained in the immediately preceding sentence shall be
construed to place Tenant in default of Tenant’s obligation to pay Rent if and
for so long as Tenant shall timely pay the Rent required pursuant to this Lease
in the manner designated by Landlord.

 

3.             OPERATING COSTS

 

(a)           Tenant hereby covenants and agrees and shall be obligated to pay to Landlord,
in addition to and not in lieu of the other amounts specified herein, Tenant’s
Share of Operating Costs in excess of the Initial Operating Costs. These
payments shall be in addition to and not in lieu of any other payments due from
Tenant hereunder. The “Initial Operating Costs” shall be, for the purposes of
this Lease, the actual Operating Costs for calendar year 2006, adjusted pursuant
to the terms of this Lease.

 

(b)           The term “Operating Costs”, as adjusted pursuant to the terms of this Lease,
shall mean any and all operating expenses of the Property, Building and related
areas (such as, by way of illustration but not limitation, the parking areas),
computed on an accrual basis and including all expenses, costs, and
disbursements of every kind and nature, which Landlord (i) shall pay;
and/or (ii) become obligated to pay, including, but not limited to, the following:

 

(i)            Costs, wages and salaries of all persons
engaged in the management, operation, repair, security or maintenance of the
Property and Building, including, but not limited to, fringe benefits, taxes,
insurance and any other benefits relating thereto;

 

(ii)           All supplies and materials used in the
operation and maintenance of the Property and Building;

 

(iii)          Cost of water, sewage, electricity and other
utilities furnished in connection with the operation of the Building;

 

3

 

(iv)          Cost of all service agreements and
maintenance for the Property and Building and the equipment therein, including,
but not limited to, trash removal, security services, alarm services, window
cleaning, janitorial service, HVAC maintenance, elevator maintenance, and
grounds maintenance, and cost of all services described in subparagraph 8(a) below;

 

(v)           Cost of all insurance relating to the
Property and Building including, but not limited to, the cost of casualty and
liability insurance applicable to the Property and Building and Landlord’s
personal property used in connection therewith;

 

(vi)          All Taxes (as hereinafter defined) and any
reasonable consultants fees incurred with respect to issues or concerns
involving the taxes or the Building, the Property, or both;

 

(vii)         Cost of repairs and general maintenance of
the interior and exterior of the Property and Building (including, but not
limited to, light bulbs and glass breakage; the redecorating, repainting,
recarpeting and other such work of any common areas; heating, ventilation and
air conditioning equipment; plumbing and electrical equipment; and elevators),
parking areas, and landscaping;

 

(viii)        A management fee and other expenses incurred
for the general operation and management of the Property and Building, not to
exceed 3% of gross revenues from the Building;

 

(ix)           An amortization cost due to any capital
expenditures incurred (i) which have the effect of reducing or limiting
Operating Costs of the Property and Building, if such reduction or limitation
inures to Tenant’s benefit (but only to the extent and in the amount that such
Operating Costs of the Property and Building are reduced); (ii) which may be
required by governmental authority or by Landlord’s insurance carrier; or (iii) which
are designed to protect or enhance the health, safety or welfare of the tenants
in the Building or their invitees;

 

(x)            All assessments made, charged, levied,
assessed or accrued against Landlord by The Concourse Office Park Association, Inc.;

 

(xi)           Reasonable legal and accounting fees and
expenses incurred by Landlord in connection with the management, maintenance
and repair of the Property; and

 

(xii)          Anything which could be classified as an
Operating Cost under generally accepted accounting principles, consistently
applied, but not specified or expressly set forth hereunder; provided such cost
is reasonably consistent with operating costs of similar class A office
buildings in the central perimeter submarket of Atlanta, Georgia.

 

4

 

Excluded
from “Operating Costs” are:

 

(i)            net recoveries which reduce expenses incurred
by the Landlord including, but not limited to, those pursuant to legal or
contractual warranties;

 

(ii)           costs or expenses incurred in connection with
satisfying obligations of Landlord which are expressly provided in this Lease
to be done at Landlord’s sole cost and expense;

 

(iii)          any expenses which are recovered by the
Landlord under a contract, agreement, insurance policy or lease to which the
Tenant is not a party, including such amounts which the Landlord would have
been able to recover pursuant to insurance policies had the Landlord taken out
and maintained the insurance coverage which is required pursuant to this Lease;

 

(iv)          costs of any replacement of to the structure
of the Building or its integral systems including but not limited to footings,
foundations, structural columns and beams, structural sub-floors bearing walls,
exterior walls, roofs, HVAC systems and components, which would be required to
be capitalized under generally accepted accounting principles (“GAAP”);

 

(v)           costs and expenses considered to be capital
expenses in accordance with GAAP, except as described in Section 3(b)(ix) above;

 

(vi)          any depreciation or notional interest charges
thereon, except as expressly set out herein;

 

(vii)         costs and expenses incurred when Tenant was
not a Tenant of the Building, such as the original construction costs of the
Building, development or complex;

 

(viii)        costs and expenses incurred with respect to
any risk which, according to the terms and conditions of this Lease, is not
Tenant’s responsibility;

 

(ix)           financing, mortgage and interest charges on
the capital retirement of debt of the Landlord and all payments of principal on
such debt;

 

(x)            amounts expended by the Landlord related to
the leasing of the Building, or any part thereof, including (1) marketing,
advertising and promotional expenditures whether specifically for leasing or to
promote the Building’s image or otherwise, (2) leasing commissions, (3) tenant
inducements of any kind, and (4) the cost of any work related to portions
of the Building occupied by other tenants of the building and vacant areas of
the Building other than those designated as shared common areas;

 

(xi)           costs and expenses in connection with
services or other benefits provided to another tenant or occupant of the
Building;

 

5

 

(xii)          payments made under any ground or head lease
or any legal or other costs incurred as a result of activities or disputes
between the Landlord and its mortgagees, partners, shareholders or ground
lessors;

 

(xiii)         bad debts, lost rents and any costs
associated with the collection or attempted collection of such debts;

 

(xiv)        any unfunded pension or other benefits of any
person described in Section 3(b)(i);

 

(xv)         any expenses (including, but not limited to
fines, penalties, legal fees and interest) resulting from the Landlord’s
failure to comply with this Lease, other tenants’ leases, any contracts laws,
or resulting from the negligent acts or willful misconduct of the Landlord or
its employees, agents or contractors;

 

(xvi)        any wages, salaries or other compensation
paid to any employee not employed at least in part for or on behalf of the
Building (provided that costs for employees working for or on behalf of the
Building part-time must be allocated by Landlord on a pro rata basis to the
Building);

 

(xvii)       any property management fees other than those
fees which are consistent with similar buildings in the area and which are
consistent with the level of service provided by the Landlord.

 

(xviii)      any duplication of costs created by the
Landlord charging a property management fees in addition to the salaries of its
employees who are rendering the actual services that would otherwise be covered
by the fee;

 

(xix)         other than the Property’s concierge services,
any compensation paid to clerks, attendants or other persons in commercial
concessions operated by Landlord or any affiliate of Landlord in excess of arms
length compensation;

 

(xx)          legal, accounting and similar or related
costs paid or incurred in connection with any sale, syndication, financing or
refinancing involving the Building or any of Landlord’s interests therein;

 

(xxi)         costs or expenses related to Landlord’s
cleaning, removal, remediation or compliance required due to the existence of
any hazardous materials in, on or affecting the Building and/or land provided
such contamination is not a result of the Tenant’s actions or those for whom
the Tenant is at law responsible;

 

(xxii)        costs for charitable or political
contributions;

 

(xxiii)       costs of any rent loss or income loss
insurance or additional casualty insurance premiums for the Building in excess
of the standard rate paid by

 

6

 

Landlord, which additional cost is attributable to the tenancy of any
other tenant or occupant of the Building;

 

(xxiv)       costs of advertising and promotional for
leasing space in the Building;

 

(xxv)        costs allocable to land held for future
development that is not in direct support of the Building;

 

(xxvi)       any cost or expense incurred in connection
with correcting latent defects in the Premises or the Property;

 

(xxvii)      Landlord’s actual costs incurred in bringing
the Property into compliance with applicable laws with which the Property is
not in compliance as of the date hereof, including, without limitation,
building codes, fire safety regulations and the Americans with Disabilities
Act.

 

(xxviii)     corporate, income or profit taxes assessed
against the personal income of the Landlord;

 

(xxix)       the Landlord’s capital tax or any large
corporation taxes;

 

(xxx)        business taxes levied against the business
carried on by the Landlord or any other tenant of the Building; and

 

(xxxii)      local improvement taxes where attributable to
the initial development of the Building;

 

(c)           The term “Tenant’s Share” shall mean the
proportion that the rentable square footage of the Premises bears to
ninety-five percent (95%) of the Total Building Rentable Area, or the average
percentage of the Total Building Rentable Area actually leased in the Building
for any calendar year, if such average is greater than ninety-five percent
(95%) of the Total Building Rentable Area. The average shall be determined by
adding together the total leased space on the last day of each month during the
calendar year in question and dividing by twelve (12). Tenant’s Share is used
in this Lease to determine the portion of Operating Costs payable by Tenant, on
a per square foot per annum basis. Notwithstanding anything to the contrary
contained herein, if the Building is not fully occupied during any calendar
year, appropriate adjustments shall be made to determine Operating Costs as
though the Building had been fully occupied in such calendar year for the
entire calendar year.

 

(d)           Prior to January 1 of each calendar year
after the calendar year in which this Lease is executed (or as soon thereafter
as practical), Landlord shall provide Tenant with the projected Operating Costs
for such current calendar year, and Tenant shall thereafter pay Tenant’s Share
of projected Operating Costs for operating the Property and Building in excess
of the Initial Operating Costs. Such projected Operating Costs in excess of the
Initial Operating Costs shall be payable in advance on a monthly basis by
paying one-twelfth (l/12th) of such amount during each month of such respective
calendar year. If Landlord has not furnished Tenant such comparison by January 1,
Tenant shall continue to pay on the basis of the prior year’s estimate until
the month after such comparison is given. Not later than May 1, 2007,
Landlord shall provide Tenant with an

 

7

 

unaudited
statement of the actual Operating Costs for 2006 and Landlord shall, no later
than September 1 (or as soon thereafter as practical) after each calendar
year during the Term thereafter, provide Tenant an unaudited statement of such
year’s actual Operating Costs. If actual Operating Costs are greater than
projected Operating Costs, Tenant shall pay Landlord, within thirty (30) days
of such statement’s receipt, Tenant’s Share of the difference thereof. If such
year’s projected Operating Costs are greater than the actual Operating Costs,
Landlord shall credit Tenant, within thirty (30) days of such statement
issuance, Tenant’s Share of the difference between projected Operating Costs
and actual Operating Costs.

 

(e)           If this Lease commences at any time other than the first day of a calendar
year or terminates at any time other than the last day of a calendar year, the
amount of Operating Costs due from Tenant shall be proportionately adjusted
based on that portion of the year that this Lease was in effect.

 

(f)            Tenant’s payments of Operating Costs shall
not be deemed payments of base rental under any governmental wage and price
controls or analogous governmental actions affecting the amount of Rent which
Landlord may charge Tenant for the Premises.

 

(g)           Notwithstanding anything in this Lease to the contrary, Tenant will be responsible
for Tenant’s Share of all Taxes (as hereinafter defined), costs of all
insurance relating to the Property and the Building, utilities, snow removal,
and charges assessed against or attributed to the Building pursuant to any
applicable declaration of protective covenants (“Uncontrollable Operating Costs”),
without regard to the level of increase in any or all of the above in any year
or other period of time. Tenant’s obligation to pay all other Operating Costs that
are not Uncontrollable Operating Costs (herein “Controllable Operating Costs”)
shall be limited to an annual increase commencing in 2007, equal to the lesser
of (i) 6% of the previous year’s Controllable Operating Costs or (ii) the
actual increase in Controllable Operating Costs from the previous year.

 

(h)           “Taxes” shall mean all taxes, assessments and government fees and
charges (whether determined on an ad valorem basis or otherwise) relating to
the Property and any other taxes and assessments attributable to the Property
or its operation (and the costs of contesting any of the same), excluding,
however, the following: (a) income or franchise taxes or any other taxes
imposed upon or measured by Landlord’s income or profits; (b) any fines,
penalties or increased interest charged due to Landlord’s failure to pay Taxes
in a timely fashion and (c) taxes, assessments, and government fees and
charges relating to any additions to or expansions of the Building constructed
after the Commencement Date.

 

(i)            Within ninety (90) days after Tenant receives
Landlord’s statement of any calendar year’s actual Operating Costs as described
in subparagraph (d) above, Tenant may contest such statement by
providing written notice to Landlord, provided that there does not then exist
an Event of Default hereunder. If no such contest is made by written notice to
Landlord within such ninety (90) day period, such Operating Expenses statement
shall be binding upon Tenant in all respects. If Tenant timely contests such
Operating Expenses statement, Tenant shall have the right to inspect and
examine, at reasonable times during normal business hours, Landlord’s books of
account and records pertaining to the Operating Expenses, all at Tenant’s sole
cost and expense. Prior to any such audit being performed, Tenant and its
auditor shall execute a confidentiality agreement in form and substance
reasonably acceptable to Landlord. Such audit

 

8

 

shall
be conducted at the offices of the Building manager where such records are kept
within thirty (30) days after the date of Tenant’s notice. Such audit may be
initially conducted, at Tenant’s expense, by a qualified employee of Tenant, or
an independent auditor of Tenant’s choice (whose compensation in no event shall
be contingent upon the results of such audit or the amount of any refund
received by Tenant). Landlord and/or Landlord’s Building manager shall
cooperate with Tenant and/or Tenant’s representatives with respect to any such
specific inquiries or questions and with respect to the conduct of such audit,
so as to facilitate the prompt and efficient answer thereto and/or conduct of
same, as applicable. Tenant shall notify Landlord of the results of such audit
in writing. Landlord may have an agent or employee present during such
inspection and audit. Landlord shall have the right to dispute the results of
Tenant’s audit, by written notice delivered to Tenant within thirty (30) days
following Landlord’s receipt of the results of such audit. Any such dispute
shall be resolved by an independent certified public accountant mutually
satisfactory to Landlord and Tenant (whose compensation in no event shall be
contingent upon the results of such audit or the amount of any refund received
by Tenant), or pursuant to the applicable rules of the American
Arbitration Association if Landlord and Tenant cannot agree on the identity of
such accountant, with the cost of such accountant being shared by Landlord and
Tenant. If the audit by Tenant shall ultimately result in a determination
(whether by agreement between Landlord and Tenant or by arbitration) that
Tenant has underpaid Landlord for its share of Operating Expenses, Tenant shall
pay the additional amount owed to Landlord within thirty (30) days of such
ultimate resolution. If the audit by Tenant shall ultimately result in a
determination (whether by agreement between Landlord and Tenant or by
arbitration) that Tenant has overpaid Landlord for its share of Operating
Expenses, such overpayment shall be applied to the next accruing installment(s)
of Monthly Rental due from Tenant, until such credit is depleted, except that
if the ultimate result of any such audit of Operating Expenses for the last
year of the Term shows that Tenant has overpaid Landlord for its share of
Operating Expenses, Landlord shall directly reimburse Tenant such amount within
thirty (30) days of such ultimate resolution. If the audit by Tenant shall
ultimately result in a determination that Tenant has overpaid Landlord for its
share of Operating Expenses by more than five percent (5%) of Tenant’s share of
the Operating Expenses, then Landlord shall pay the cost of such audit. Tenant
hereby agrees to keep the results of any such audit confidential, and to
require Tenant’s auditor and its employees and each of their respective
attorneys and advisors to likewise keep the results of such audit confidential.
In particular, but without limitation, Tenant agrees that: (i) Tenant
shall not disclose the results of any such audit to any past, current or
prospective tenant of the Building; and (ii) Tenant shall require, that
its auditors, attorneys and anyone associated with such parties shall not
disclose the results of such audit to any past, current or prospective tenant
of Landlord in the Building; provided, however, that Landlord hereby agrees
that nothing in items (i) or (ii) above shall preclude Tenant from
disclosing the results of such audit in any judicial or quasi-judicial
proceeding, or pursuant to court order or discovery request, or to any current
or prospective assignee or sub lessee of Tenant, or to any agent,
representative, or employee of Landlord who or which requests the same or as
required in governmental and regulatory filings.

 

4.             DELIVERY OF THE PREMISES

 

Tenant shall cause completion of the work described in Exhibit “C”,
which work shall be performed within the provisions and according to all
standards of said Exhibit “C”. Without limiting the generality of the
foregoing, Tenant shall timely apply for all permits and

 

9

 

approvals necessary with respect to such work and shall use reasonable
efforts to Substantially Complete the same on or before June 15, 2006.

 

Subject to Tenant Delay and Force Majeure, and provided that this Lease
is executed by Tenant prior to January 31, 2006, Landlord shall permit
Tenant and its contractors access to the Premises beginning on February 1,
2006, for purposes of moving and installation of wiring, cabling, furnishings,
fixtures and equipment. Access shall include access to and use of the loading
docks, common areas, electricity, air conditioning, security and elevators at
no charge to Tenant or its contractors. All provisions of this Lease shall
apply with respect to such early access by Tenant other than the obligation to
pay Rent.

 

5.             MEMORANDUM CONFIRMING TERM

 

Tenant shall execute and deliver a “Memorandum Confirming Term”
agreement upon the taking of possession of the Premises, in the form attached
as Exhibit “D”, by this reference incorporated herein.

 

6.             USE

 

Tenant shall use the Premises for professional, executive office
purposes (including data center and call center uses), generally in accordance
with the manner of use by other tenants in the Building. The occupancy rate of
the Premises shall in no event be more than one (1) person per 200
rentable square feet within said Premises. Tenant’s use of the Premises shall
not violate any ordinance, law or regulation of any governmental body, or the “Rules and
Regulations” of Landlord (the “Rules”) as set forth in Exhibit “E”
attached hereto and made a part hereof, or cause an unreasonable amount of
use of any of the services provided in the Building. Tenant shall conduct its
business in the manner and according to the generally accepted business principles
of the business or profession in which Tenant is engaged.

 

7.             TENANT’S CARE OF THE PREMISES

 

(a)           Tenant will maintain the Premises and the fixtures and appurtenances therein
in a first-class condition, and will not commit or permit waste therein. Any
repair work, maintenance and any alterations permitted by Landlord in the
Premises (i) shall be done at Tenant’s sole cost and expense; (ii) shall
be done by Landlord’s employees or agents or, with Landlord’s consent, by
persons requested by Tenant; and (iii) shall first be consented to by Landlord.
Tenant shall, at Tenant’s expense (but under the direction of Landlord and
performed by Landlord’s employees or agents, or with Landlord’s consent, by
persons requested by Tenant and consented to by Landlord), promptly repair any
injury or damage to the Premises or Building caused by the misuse or neglect
thereof by Tenant, by Tenant’s contractors, sub-contractors, customers,
employees, licensees, agents, or invitees. Tenant shall give prompt notice to
Landlord of any defective condition in or about the Premises known to Tenant.

 

(b)           Tenant will not, without Landlord’s prior consent, make alterations,
additions or improvements (including, but not limited to, structural
alterations, additions or improvements) in or about the Premises and will not
do anything to or on the Premises which will increase the rate of insurance on
the Building or the Property. All alterations, additions or improvements of a permanent
nature made or installed by Tenant to the Premises shall become the property of

 

10

 

Landlord at the expiration or early termination of this Lease. Except
for any typical office improvements or fixtures (including HVAC equipment),
Landlord reserves the right to require Tenant to remove any improvements or
additions made to the Premises by Tenant and to repair and restore the Premises
to their condition prior to such alteration, addition or improvement,
reasonable wear and tear, unrepaired casualty and condemnation excepted, unless
Landlord has agreed at or prior to the time Tenant requests the right to make
such alteration, addition or improvement that such item need not be removed by
Tenant at the expiration or early termination of the Term.

 

(c)           No later than the last day of the Term, Tenant will remove Tenant’s
personal property and repair injury done by or in connection with installation
or removal of said property and surrender the Premises (together with all keys,
access cards or entrance passes to the Premises and/or the Building) in as good
a condition at the beginning of the Term, reasonable wear and tear, unrepaired
casualty and condemnation excepted. All property of Tenant remaining in the
Premises after expiration or early termination of the Term shall be deemed
conclusively abandoned and may be removed by Landlord, and Tenant shall
reimburse Landlord for the cost of removing the same, subject however, to
Landlord’s right to require Tenant to remove any improvements or additions made
to the Premises by Tenant pursuant to subparagraph (b) above.

 

(d)           In doing any work on the installation of Tenant’s furnishings,
fixtures, or equipment in the Premises, Tenant will use only contractors or
workers consented to by Landlord prior to the time such work is commenced.
Landlord may condition its consent upon its receipt from such contractors
or workers of acceptable (i) lien waivers; and (ii) evidence of
liability and personal property insurance coverage in amounts and with
insurance carriers satisfactory to Landlord. Tenant shall promptly remove any
lien or claim of lien for material or labor claimed against the Premises or
Building, or both, by such contractors or workers if such claim should arise, and
Tenant hereby indemnifies and holds Landlord harmless from and against any and
all loss, cost, damage, expense or liabilities including, but not limited to,
attorney’s fees, incurred by Landlord, as a result of or in any way related to
such claims or liens.

 

(e)           All personal property brought into the Premises by Tenant, its
employees, licensees and invitees shall be at the sole risk of Tenant, and
Landlord shall not be liable for theft thereof or of money deposited therein or
for any damages thereto, such theft or damage being the sole responsibility of
Tenant.

 

8.            SERVICES

 

(a)           Landlord shall cause to be furnished the following services (the cost
of which services are included within Operating Costs):

 

(i)            Elevator service for passenger and delivery
needs;

 

(ii)           During the hours from 8:00 AM to 6:00 PM on
weekdays and 8:00 AM to 1:00 PM on Saturdays, air conditioning during summer
operations and heat during winter operations at temperature levels similar to
other first class office buildings in the Atlanta area, but consistent
with and subject to all Federal and local energy conservation regulations.
Landlord will provide Tenant with additional heating and air conditioning
services so long as Tenant notifies Landlord of its desire for such services no
later than 3:00 PM

 

11

 

on the day before such services are requested or 3:00 PM on Friday if
such services are requested for Saturday.

 

(iii)          Public restrooms, including the furnishing of
soap, paper towels, and toilet tissue;

 

(iv)          Either hot and cold or tempered running water
for all restrooms and lavatories;

 

(v)           Janitorial service as itemized in Exhibit G,
including, without limitation, sanitizing, dusting, cleaning, mopping,
vacuuming, and trash removal, each Monday through Friday, and floor waxing and
polishing, window washing, smudge removal and Venetian blind cleaning as
appropriate;

 

(vi)          The replacement of building standard
fluorescent lamps and ballasts as needed;

 

(vii)         Repairs and maintenance, for maintaining in
good order at all times the exterior walls, exterior windows, exterior doors
and roof of the Building, public corridors, stairs, elevators, storage rooms,
restrooms, the heating, ventilating and air conditioning systems, electrical
and plumbing systems of the Building, and the walks, paving and landscaping surrounding
the Building;

 

(viii)        General grounds care;

 

(ix)           General management, including supervision,
inspections and management functions; and

 

(x)            Electricity for the Premises, Building and
Property at a design load not less than six (6) watts per rentable square
foot.

 

(b)           The services provided in Paragraph 8(a) are
predicated on and are in anticipation of the use of the Premises as follows:

 

(i)            Services shall be provided for the Building
during normal business hours as described in the Rules;

 

(ii)           HVAC design is based on sustained outside
temperatures being no higher than 95 degrees Fahrenheit and no lower than 14
degrees Fahrenheit with sustained occupancy of the Premises by no more than one
person per 200 square feet of floor area and heat generated by electrical
lighting and fixtures not to exceed

3.0 watts per square foot;

 

(iii)          Electric power usage and consumption for the
Premises shall be based on lighting of the Premises during normal business
hours on a level suitable for normal office use and power for small desk-top
machines and devices using no more than 110 volt, 20 amp circuits (allowable
load of 15 amps). Heavier

 

12

 

use items shall not be used or installed, unless expressly permitted
elsewhere herein or by consent of Landlord; and

 

(iv)          Should Tenant’s total rated electrical design
load per square foot in the Premises exceed the Building standard rated
electrical design load of six (6) watts per rentable square foot, on a per
rentable square foot basis, as accurately determined by Landlord from time to
time, for either low or high voltage electrical consumption, or if Tenant’s
electrical design requires low voltage or high voltage circuits in excess of
Tenant’s share of the Building standard circuits, as such share is accurately
determined by Landlord in Landlord’s reasonable judgment, Landlord may (at
Tenant’s expense), if reasonably possible, install within the Building one (1) additional
high voltage panel and/or one (1) additional low voltage panel with
associated transformer (the “Additional Electrical Equipment”) as necessary to
accommodate the aforesaid requirements. If the Additional Electrical Equipment
is installed because Tenant’s low or high voltage rated electrical design load
exceeds the applicable Building standard rated electrical design load (on a per
square foot basis) of six (6) watts per rentable square foot, then a meter
may also be added by Landlord (at Tenant’s expense) to measure the
electricity provided through the Additional Electrical Equipment.

 

(c)           If Tenant uses any services in an amount or for a period in excess of
that provided for herein, Landlord also reserves the right to charge Tenant
reimbursement for the cost of such added services. The charge for after hours
heating and air conditioning shall be $30.00 for each hour outside the times
set forth in Section 8(a)(ii). Landlord reserves the right to install separate
metering devices to determine such excessive periods and/or amounts, at Tenant’s
sole cost and expense. If there is disagreement as to such additional charge,
the opinion of the appropriate local utility company or an independent
professional engineering firm shall prevail.

 

(d)           Except as set forth in subparagraph (f) below, Landlord shall not
be liable for any damages and Tenant shall have no right of set-off or
reduction in Rent as a result of the installation, use, malfunction, or
interruption of use of any equipment in connection with the furnishing of
services referred to herein, including, but not limited to, any interruption in
services by any cause beyond the immediate control of the Landlord; provided
however, Landlord shall exercise due care in furnishing adequate and
uninterrupted services. Without limitation on the foregoing, under no circumstances
shall Landlord incur liability for damages caused directly or indirectly by any
malfunction of Tenant’s computer systems resulting from or arising out of the
failure or malfunction of any electrical, air conditioning or other system
serving the Building, and Tenant hereby expressly waives the right to make any
such claim against Landlord.

 

(e)           There may be available in the Building a shared communications
systems service (the “Shared Service”), upon terms, conditions and fees to be
agreed upon by Tenant and the party providing such Shared Service. Neither
Landlord nor any manager of the Building shall be liable to Tenant for damages
if the furnishing of any such Shared Service is disrupted, terminated or diminished
in any manner, nor shall any disruption, diminution, or cessation relieve
Tenant from the performance of any of Tenant’s covenants, conditions and
agreements under this Lease, nor shall any disruption, diminution or cessation
constitute constructive eviction or entitle Tenant to an

 

13

 

abatement
of Rent. Tenant holds Landlord and any such manager harmless from any claims
Tenant may have arising out of or connected with such cessation or
interruption. If Tenant elects not to use the Shared Service, and Tenant has
telephone or other such equipment installed at Tenant’s own direction, such
system shall not (i) cause the Building to violate any municipal safety
codes or ordinances, including, but not limited to, fire safety codes; (ii) cause
damage to the Building; (iii) require an amount of electrical or other
services unreasonably in excess of the requirements for customary
business-telephone systems; or (iv) impact upon the normal use, function
and operation of the Shared Service. If Tenant elects not to use or be a part of
the Shared Service, Tenant shall not use any wiring or other equipment which is
a part of the Shared Service without the prior, written consent of the
provider of such Shared Service. If Tenant uses any such wiring or equipment
without such consent, Tenant shall be liable for, and shall pay to the provider
of such services on demand, (i) the cost of such use; (ii) the cost
of repairing or replacing any wiring or equipment damaged or altered by such
use; and (iii) any other damages caused by such use.

 

(f)            Notwithstanding the foregoing, in the event
that (i) Landlord fails to provide services to Tenant as required by this
Lease for a continuous period in excess of five (5) consecutive business
days after receiving written notice of such failure, (ii) such failure is
on account of a reason within Landlord’s reasonable control, and (iii) such
failure materially interferes with Tenant’s use and enjoyment of all or a
portion of the Premises then:

 

(i)            Landlord shall provide Tenant a credit
against Monthly Rental next owing, in an amount equal to the Monthly Rental
under this Lease (with the amount of such Monthly Rental being prorated in the
event such failure does not affect Tenant’s ability to use or enjoy the entire
Premises) from and after the expiration of such five (5) business day
period and until such time as Landlord resumes providing such service or
services to Tenant; provided, however, Tenant shall not be entitled to any such
credit in the event that such failure to provide services is caused or
contributed to materially by Tenant or Tenant’s employees, invitees,
contractors, licensees and other visitors to the Premises or the Building; and

 

(ii)           Notwithstanding the foregoing, if such
failure to provide services is a failure under Section 8(a)(ii), and such
failure cannot be remedied within four hours of such failure, then upon Tenant’s
request, Landlord shall provide temporary HVAC.

 

(g)           Landlord agrees to engage appropriate consultants from time to time to
contest any Taxes determined by Landlord to be unreasonably high.

 

(h)           Throughout the Term,
Landlord shall maintain the structural components of the Building and all
common areas in a first class manner.

 

9.            DESTRUCTION OR DAMAGE TO PREMISES

 

(a)           If the Premises or the Building are totally destroyed (or so
substantially damaged as to be untenantable in the determination of the
Architect) by storm, fire, earthquake or other casualty, Landlord shall have
the option to:

 

14

 

(i)            Terminate this Lease as of the date of the
occurrence of the storm, earthquake, fire or other casualty by giving notice to
Tenant within sixty (60) days from the date of such damage or destruction; or

 

(ii)           Commence the process of restoration of the
Premises to a tenantable condition within sixty (60) days from the date of
receipt by Landlord of all of the insurance proceeds paid with respect to such
casualty, and proceed with due
diligence to complete said restoration of the Premises. If Landlord chooses to restore
the Premises, Rent shall abate with respect to the untenantable portion of the
Premises from the date of such casualty until the date of Substantial
Completion thereof.

 

If
Landlord fails to complete such restoration within one hundred fifty (150) days
of the date of the casualty, this Lease may be terminated as of the date
of the casualty upon notice from either party to the other, given not more than
ten (10) days following the expiration of said one hundred eighty (180)
day period. If such notice is not given, this Lease shall remain in force and
effect and Rent shall commence upon delivery of the Premises to Tenant in a
state of Substantial Completion.

 

(b)           If the Premises are damaged but not rendered untenantable for Tenant’s business
use by any event set forth in Paragraph 9(a) above, Rent shall abate in
the proportion the Premises have been made untenantable. Landlord shall restore
the Premises expeditiously, and upon the date of restoration, full Rent shall
commence.

 

(c)           Rent shall not abate if the damage or destruction of the Premises,
whether total or partial, is the result of the negligence of Tenant, its
contractors, subcontractors, agents, employees, guests or invitees.

 

10.           DEFAULT BY TENANT; LANDLORD’S REMEDIES

 

(a)           The occurrence of any of the following shall
constitute an Event of Default hereunder by Tenant:

 

(i)            The Rent or any other sum of money due of
Tenant hereunder is not paid within five (5) days following the later of (i) the
date that the same is due or (ii) written notice from Landlord that the
same is due, provided, however, that in no event shall Landlord be obligated to
provide Tenant any such written notice on more than two (2) occasions
during any twelve (12) month period;

 

(ii)           Any petition is filed by or against Tenant
under any section or chapter of the National or Federal Bankruptcy Act or any other applicable Federal or State
bankruptcy, insolvency or other similar law, and, in the case of a petition
filed against Tenant, such petition is not dismissed within thirty (30) days
after the date of such filing; if Tenant shall become insolvent or transfer
property to defraud creditors; if Tenant shall make an assignment for the
benefit of creditors; or if receiver is appointed for any of Tenant’s assets;

 

15

 

(iii)          Tenant fails to bond off or otherwise remove
any lien filed against the Premises or the Building by reason of Tenant’s
actions, within ten (10) days after Tenant has notice of the filing of
such lien; or

 

(iv)          Tenant fails to observe, perform and
keep the covenants, agreements, provisions, stipulations, conditions and Rules herein
contained to be observed, performed and kept by Tenant (other than the failure
to pay when due any Rent or any
other sum of money becoming due Landlord hereunder, which under all
circumstances is governed by and subject to Paragraph 10(a)(i) herein),
and persists in such failure after thirty (30) days written notice by Landlord
requiring that Tenant remedy, correct, desist or comply (or if any such failure
to comply on the part of Tenant would reasonably require more than thirty
(30) days to rectify, unless Tenant commences rectification within the thirty
(30) day notice period and thereafter promptly, effectively and continuously
proceeds with the rectification of the failure to comply on the part of
Tenant and, in all such events, cures such failure to comply on the part of
Tenant no later than sixty (60) days after such notice).

 

(b)           Upon the occurrence of an Event of Default, Landlord shall have the
option to do and perform any one or more of the following:

 

(i)            Terminate this Lease, in which event Tenant
shall immediately surrender the Premises to Landlord. If Tenant shall fail to
do so, Landlord may, without further notice and without prejudice to any other
remedy Landlord may have, enter upon the Premises without the requirement
of resorting to the dispossessory procedures set forth in O.C.G.A. §§ 44-7-50
et  seq. and expel or remove Tenant and Tenant’s effects without
being liable for any claim for trespass or damages therefor. Upon any such
termination, Tenant shall remain liable to Landlord for damages, due and
payable monthly on the day Rent would have been payable hereunder, in an amount
equal to the Rent and any other amounts which would have been owing by Tenant
for the balance of the Term, had this Lease not been terminated, less the net
proceeds, if any, of any reletting of the Premises by Landlord, after deducting
all of Landlord’s costs and expenses (including, without limitation,
advertising expenses and professional fees) incurred in
connection with or in any way related to the termination of this Lease,
eviction of Tenant and such reletting; and/or

 

(ii)           Declare the entire amount of Rent calculated
on the current rate being paid by Tenant, and other sums which in Landlord’s
reasonable determination would become due and payable during the remainder of
the Term (including, but not limited to, increases in Rent pursuant to
Paragraph 2(b) and 3(d) herein), discounted to present value by using
a reasonable discount rate selected by Landlord, to be due and payable
immediately. Upon such acceleration of such amounts, Tenant agrees to pay the
same at once, together with all Rent and other amounts theretofore due, at
Landlord’s address as provided herein; provided however, that such payment
shall not constitute a penalty or forfeiture but shall constitute liquidated
damages for

 

16

 

Tenant’s failure to comply with the terms and provisions of this Lease
(Landlord and Tenant agreeing that Landlord’s actual damages in such event are
impossible to ascertain and that the amount set forth above is a reasonable
estimate thereof). Upon making such payment, Tenant shall receive from Landlord
all rents received by Landlord from other tenants renting the Premises during
the Term, provided that the monies to which Tenant shall so become entitled
shall in no event exceed the entire amount actually paid by Tenant to Landlord
pursuant to the preceding sentence, less all of Landlord’s costs and expenses
(including, without limitation, advertising expenses and professional fees)
incurred in connection with or in any way related to the reletting of the
Premises. The acceptance of such payment by Landlord shall not constitute a
waiver of rights or remedies to Landlord for any failure of Tenant thereafter
occurring to comply with any term, provision, condition or covenant of this
Lease; and/or

 

(iii)          Enter the Premises as the agent of Tenant
without the requirement of resorting to the dispossessory procedures set forth
in O.C.G.A. §§ 44-7-50 et  seq. and without being liable for
any claim for trespass or damages therefor, and, in connection therewith, rekey
the Premises, remove Tenant’s effects therefrom and store the same at Tenant’s
expense, without being liable for any damage thereto, and relet the Premises as
the agent of Tenant, without advertisement, by private negotiations, for any
term Landlord deems proper, and receive the rent therefor. Tenant shall pay
Landlord on demand any deficiency that may arise by reason of such
reletting, but Tenant shall not be entitled to any surplus so arising. Tenant
shall reimburse Landlord for all costs and expenses (including, without
limitation, advertising expenses and professional fees) incurred in connection
with or in any way related to the eviction of Tenant and reletting the
Premises, and for the amount of any other Rent which would have been due of
Tenant to Landlord hereunder if not for certain concessions granted by Landlord
to Tenant. Landlord, in addition to but not in lieu of or in limitation of any
other right or remedy provided to Landlord under the terms of this Lease or
otherwise (but only to the extent such sum is not reimbursed to Landlord in
conjunction with any other payment made by Tenant to Landlord), shall have the
right to be immediately repaid by Tenant the amount of all sums expended by
Landlord and not repaid by Tenant in connection with preparing or improving the
Premises to Tenant’s specifications and any and all costs and expenses incurred
in renovating or altering the Premises to make it suitable for reletting;
and/or

 

(iv)          As agent of Tenant, do whatever Tenant is
obligated to do under this Lease, including, but not limited to, entering the
Premises, without being liable to prosecution or any claims for damages, in
order to accomplish this purpose. Tenant agrees to reimburse Landlord
immediately upon demand for any expenses which Landlord may incur in thus
effecting compliance with this Lease on behalf of Tenant. Landlord shall not be
liable for any damages

 

17

 

resulting to Tenant from such action, whether caused by the negligence
of Landlord or otherwise.

 

(c)           Pursuit by Landlord of any of the foregoing remedies shall not preclude
the pursuit of general or special damages incurred, or of any of the other
remedies provided herein, at law or in equity.

 

(d)           No act or thing done by Landlord or Landlord’s employees or agents
during the Term shall be deemed an acceptance of a surrender of the Premises.
Neither the mention in this Lease of any particular remedy, nor the exercise by
Landlord of any particular remedy hereunder, at law or in equity, shall
preclude Landlord from any other remedy Landlord might have under this Lease,
at law or in equity. Any waiver of or redress for any violation of any covenant
or condition contained in this Lease or any of the Rules now or hereafter
adopted by Landlord, shall not prevent a subsequent act, which would have
originally constituted a violation, from having all the force and effect of an
original violation. The receipt by Landlord of Rent with knowledge of the
breach of any covenant in this Lease shall not be deemed a waiver of such
breach.

 

11.           ASSIGNMENT AND SUBLETTING

 

(a)           Tenant shall not sublet any part of the Premises, nor assign this
Lease or any interest herein, nor, once any such sublet or assignment is
consented to by Landlord, amend or modify the terms of such sublet or
assignment, without the prior consent of Landlord, which consent shall not be
unreasonably withheld, delayed or conditioned. Without limiting the generality
of the foregoing, Landlord may deny consent to an assignment or sublease
if, by way of illustration but not limitation, (i) the financial statements
of the proposed assignee or sublessee are unsatisfactory, or (ii) the
proposed assignment or sublease provides for rental or other payment for such
use, occupancy or utilization based, in whole or in part, on the net income or profits
derived by any person or entity from the Premises leased, used, occupied or
utilized.

 

(b)            Consent by Landlord to one assignment or
sublease shall not destroy or waive this provision, and all later assignments
and subleases shall likewise be made only upon prior consent of Landlord. If a
sublease or assignment is consented to by Landlord, any sublessees or assignees
shall become liable directly to Landlord for all obligations of Tenant
hereunder without relieving or in any way modifying Tenant’s liability
hereunder. If Tenant notifies Landlord of Tenant’s intent to sublease or assign
this Lease, Landlord shall within fifteen (15) days following receipt of such
notice, together with a copy of the proposed sublease or assignment and
together with information regarding the proposed subtenant or assignee in
detail reasonably sufficient to enable Landlord to evaluate the proposed
subtenant or assignee (i) consent to such proposed subletting; or (ii) deny
such consent, giving reasons for denying such consent at the time of the denial.
If Landlord gives its consent to any such assignment or sublease, after
deducting Tenant’s out of pocket costs, including marketing costs, leasing
commissions, rent abatement and tenant improvements, fifty percent (50%) of any
rent or other cost collected by Tenant from the assignee or subtenant for all
or any portion of the Premises over and above the Rent payable by Tenant for
such space shall be due and payable, and shall be paid, to Landlord. If the
area of Premises is reduced or a sublease or assignment is made as herein
provided, Tenant shall pay Landlord a charge equal to the actual costs incurred
by Landlord, in Landlord’s reasonable judgment (including, but not limited to,
the use and time of Landlord’s personnel), for all of the reasonably necessary
legal and

 

18

 

accounting services required to accomplish such reduction of area of
the Premises, assignment or subletting, as the case may be.

 

(c)           Notwithstanding anything in this Lease to the contrary, Landlord’s
consent shall not be required for any assignment of this Lease or subletting of
the Premises by Tenant to an assignee or sublessee that is directly or
indirectly in control of, controlled by or under common control with Tenant or
its principals, or into which or with which Tenant merges or consolidates, or
which purchases all or substantially all of the stock or assets of Tenant;
provided, however, (i) in no event shall Tenant be released from its
liability under this Lease, and (ii) Tenant shall provide to Landlord
written notice of such assignment or subletting at least thirty (30) days prior
to the effective date thereof, together with a copy of the proposed agreement
of assignment or sublease and together with such information regarding the
assignee or sublessee in such reasonable detail to enable Landlord to determine
that the proposed assignment or sublease is permitted without Landlord’s
consent pursuant to this subparagraph (c).

 

12.           CONDEMNATION

 

If the Premises (or a part of
such Premises such that the Premises, in the reasonable judgment of the
Architect, are untenantable) are taken by eminent domain or other similar
proceeding or are conveyed in lieu of such taking, this Lease shall expire on
the date when title or right of possession vests, and Rent paid for any period
beyond said date shall be repaid to Tenant. If there is a partial taking where
this Lease is not terminated, the Rent shall be adjusted in proportion to the
square feet of Premises taken, as determined by Architect. In either event,
Landlord shall be entitled, and Tenant shall not have any right, to claim any
award made in any condemnation proceeding, action or ruling relating to the
Building or the Property; provided, however, Tenant shall be entitled to make a
claim in any condemnation proceeding, action or ruling relating to the Building
for Tenant’s moving expenses and the unamortized value of leasehold
improvements in the Premises actually paid for by Tenant, to the extent such
claim does not in any manner impact upon or reduce Landlord’s claim or award in
such condemnation proceeding, action or ruling. Landlord shall have, in
Landlord’s sole discretion, the option of terminating this Lease if any such
condemnation, action, ruling or conveyance in lieu thereof makes continuation
of Landlord’s use of the Building economically unfeasible.

 

13.           INSPECTIONS

 

Landlord, its agents or employees may enter the Premises at
reasonable hours and upon reasonable notice (which notice may be by
telephone) to Tenant except in the event of an emergency to (a) exhibit the
Premises to prospective purchasers or tenants of the Premises or the Building; (b) inspect
the Premises to see that Tenant is complying with its obligations hereunder;
and (c) make repairs (i) required of Landlord under the terms hereof;
(ii) to any adjoining space in the Building; or (iii) to any systems
serving the Building which run through the Premises.

 

14.           SUBORDINATION

 

(a)           This Lease shall be subject and subordinate to any underlying land
leases or deeds to secure debt which may now or hereafter affect this
Lease, the Building or the Property and also to all renewals, modifications,
extensions, consolidations, and replacements of

 

19

 

such
underlying land leases and deeds to secure debt. Neither the Building nor the
Property nor any portion thereof is currently subject to any such land lease or
deed to secure debt. In confirmation of the subordination set forth in this
Paragraph 14, Tenant shall, at Landlord’s request, execute and deliver such
further instruments desired by the holder of the deed to secure debt (a “Mortgagee”)
executed after the date hereof or by any lessor (“Lessor”) under any such
underlying land leases executed after the date hereof, provided that Landlord
obtains a nondisturbance agreement for the benefit of Tenant from such
Mortgagee or Lessor. Notwithstanding the foregoing, Landlord or such Mortgagee
or Lessor shall have the right to subordinate or cause to be subordinated, in
whole or in part, any such underlying land leases or deeds to secure debt to
this Lease (but not in respect to priority of entitlement of insurance or
condemnation proceeds). If any such underlying land leases or deeds to secure
debt terminate for any reason or any such deeds to secure debt are foreclosed
or a conveyance in lieu of foreclosure is made for any reason, Tenant shall,
notwithstanding any subordination, deliver to Mortgagee within ten (10) days
of written request an attornment agreement, providing that such Tenant shall
continue to abide by and comply with the terms and conditions of this Lease.

 

(b)           If any proceedings are brought for the foreclosure of, or in the event
of exercise of the power of sale or conveyance in lieu of foreclosure under any
deed to secure debt, Tenant shall at the option of the purchaser at such
foreclosure or other sale, attorn to such purchaser and recognize such person
as Landlord under this Lease. The institution of any suit, action or other proceeding
by a Mortgagee or a sale of the Property pursuant to the powers granted to a
Mortgagee under its deed to secure debt, shall not, by operation of law or
otherwise, result in the cancellation or the termination of this Lease or of
the obligations of Tenant hereunder.

 

(c)           If such purchaser requests and accepts such attornment, from and after
such attornment, Tenant shall have the same remedies against such purchaser for
the breach of an agreement contained in this Lease that Tenant might have had
against Landlord if the deed to secure debt had not been terminated or
foreclosed, except such purchaser shall not be (i) liable for any act or
omission of the prior Landlord; (ii) subject to any offsets or defenses
which Tenant might have against the prior Landlord; or (iii) bound by any
Rent or security deposit which Tenant might have paid in advance to the prior
Landlord.

 

15.           INDEMNIFICATION AND HOLD HARMLESS

 

(a)           Tenant shall defend, protect, indemnify and hold harmless Landlord and
Landlord’s agents and employees against and from any and all claims, suits,
liabilities, judgments, costs, demands, causes of action and expenses
(including, without limitation, reasonable attorneys’ fees, costs and
disbursements) arising from (i) the use of the Premises, the Building or
the Concourse project by Tenant or Tenant’s agents, employees or contractors,
or from any activity done, permitted or suffered by Tenant or Tenant’s agents,
employees or contractors in or about the Premises, the Building or the
Concourse project, and (ii) any act, neglect, fault, willful misconduct or
omission of Tenant or Tenant’s agents, employees or contractors, or from any
breach or default in the terms of this Lease by Tenant or Tenant’s agents,
employees or contractors that results in any cost or expense being incurred by
Landlord, or (iii) any action or proceeding brought on account of any
matter in items (i) or (ii). If any action or proceeding is brought
against Landlord by reason of any such claim, upon notice from Landlord, Tenant
shall defend the same at Tenant’s expense by counsel reasonably satisfactory to
Landlord. As a material part of the consideration to Landlord, Tenant
hereby releases Landlord

 

20

 

and
Landlord’s agents and employees from responsibility for, waives its entire
claim of recovery for and assumes all risk of (x) damage to property or injury
to persons in or about the Premises, the Building or the Concourse project from
any cause whatsoever (except to the extent caused by the negligence or willful
misconduct of Landlord or Landlord’s agents or employees or by the failure of
Landlord to observe any of the terms and conditions of this Lease), or (x) loss
resulting from business interruption or loss of income at the Premises. The
obligations of Tenant under this Paragraph 15(a) shall survive any
termination of this Lease with respect to any events occurring or circumstances
existing prior to such termination.

 

(b)           Landlord shall indemnify and hold harmless Tenant and Tenant’s agents
and employees against and from any and all claims, suits, liabilities,
judgments, costs, demands, causes of action and expenses (including, without
limitation, reasonable attorney’s fees) arising from the negligence or willful
misconduct of Landlord or Landlord’s agents or employees or from the breach of
this Lease by Landlord.

 

(c)           The foregoing indemnities shall not relieve any insurance carrier of
its obligations under any policies required to be carried by either party
pursuant to this Lease, to the extent that such policies cover the peril or
occurrence that results in the claim that is subject to the foregoing
indemnities.

 

16.          INSURANCE

 

(a)           Tenant shall carry during the Term (and any other period during which
Tenant is in possession of the Premises, with all premiums paid prior to the
due date at Tenant’s sole expense) (i) all risk coverage insurance
insuring Tenant’s interest in its improvements to the Premises and any and all
furniture, equipment, supplies, contents and other property owned, leased, held
or possessed by Tenant and contained therein, such insurance coverage to be in
an amount equal to the full insurable value of such improvements and property,
as such may increase from time to time, (ii) worker’s compensation
and employer’s liability insurance as required by applicable law, (iii) commercial
general liability coverage for injury to or death of a person or persons and
for damage to property occasioned by or arising out of any construction work
being done on the Premises, or arising out of the condition, use, or occupancy
of the Premises, or other portions of the Building or Property, the limits of
such policy or policies to be in amounts not less than One Million Dollars
($1,000,000) combined single limit for bodily injury and property damage per
occurrence, plus excess coverage of not less than Five Million Dollars
($5,000,000) combined single limit for bodily injury and property damage per
occurrence, (iv) insurance against thefts within the Premises, the
Building or any project within which the Building is located, and (v) business
interruption insurance with a limit of liability representing loss of at least
twelve (12) months of income. Tenant shall also maintain and provide such other
required evidence to Landlord of any other form of insurance which
Landlord, acting reasonably, requires from time to time in form, in amounts,
and for risks against which a prudent tenant would insure. Landlord and Tenant
shall each have included in all policies of insurance respectively obtained by
them with respect to the Building or Premises a waiver by the insurer of all
right of subrogation against the other in connection with any loss or damage
insured against. All said insurance policies shall be carried with companies
licensed to do business in the State of Georgia reasonably satisfactory to
Landlord and rated in Best’s Insurance Guide, or any successor thereto (or, if
there be none, an organization having a national reputation) as having a
general policyholder rating of “A-” and a financial rating of at least “X.” All
such policies shall be noncancellable except after twenty (20) days’ written
notice to Landlord.

 

21

 

Each
policy shall name Landlord, Landlord’s property manager and any other person
designated by Landlord as additional insureds and provide that it is primary
to, and not contributing with, any policy carried by Landlord, Landlord’s
property manager, or other designated person covering the same loss. At
Landlord’s request, duly executed certificates of such insurance shall be
delivered to Landlord prior to the Commencement Date and at least thirty (30)
days prior to the expiration of each respective policy term.

 

(b)           Landlord shall carry and maintain during the Term general comprehensive
public liability insurance coverage with respect to the Property and property
insurance coverage on an all-risk extended coverage basis with respect to the
Property, in such amounts, with such insurance providers and under such terms
as such insurance coverage is typically carried and maintained by institutional
owners of Class A properties similar to the Property in the Atlanta, Georgia
office market. Notwithstanding the foregoing, Landlord shall have the right to
self- insure (“Self-Insure”) all or any part of any of said required
insurance coverages, in Landlord’s sole discretion, so long as such
self-insuring party maintains has a net worth of not less than Fifty Million
Dollars ($50,000,000.00) as shown on financial statements for the most recently
concluded fiscal year prepared by an independent certified public accountant in
accordance with generally accepted accounting principles consistently applied
and provided to Tenant upon request. “Self-Insure” shall mean that Landlord is
itself acting as though it were the insurance company providing the insurance
required under the provisions hereof, and Landlord shall pay amounts due in
lieu of insurance proceeds because of self-insurance which amounts shall be treated
as insurance proceeds for all purposes under this Lease. In the event that Landlord
elects to Self-Insure, and an event or claim occurs for which a defense and/or
coverage would have been available from an insurance company, with respect to a
loss or damage which Landlord would otherwise be required to insure against as
provided above, Landlord shall (i) undertake the defense of any such
claim, including a defense of Tenant, at Landlord’s sole cost and expense, and (ii) use
its own funds to pay any claim or replace any property or otherwise provide the
funding which would have been available from insurance proceeds but for such
election by Landlord to Self-Insure.

 

(c)           Landlord and Tenant hereby mutually waive any claim against the other and
its agents for any loss or damage to any of their property located on or about
the Premises, the Building or the Concourse project that is caused by or
results from perils covered by property insurance carried by the respective
parties, to the extent of the proceeds of such insurance actually received with
respect to such loss or damage, whether or not due to the negligence of the other
party or its agents. Because the foregoing waivers will preclude the assignment
of any claim by way of subrogation to an insurance company or any other person,
each party shall immediately notify its insurer, in writing, of the terms of
these mutual waivers and have their insurance policies endorsed to prevent the
invalidation of the insurance coverage because of these waivers. Nothing in
this Paragraph 16(c) shall relieve a party of liability to the other for failure
to carry insurance required by this Lease.

 

17.          REMEDIES CUMULATIVE

 

The rights given to Landlord and Tenant herein are in addition to any
rights that may be given to Landlord or Tenant by any statute or under
law.

 

22

 

18.                                   ENTIRE AGREEMENT - NO WAIVER

 

This Lease contains the entire agreement of the parties hereto and no
representations, inducements, promises or agreements, oral or otherwise,
between the parties not embodied herein shall be of any force and effect. The failure
of either party to insist in any instance on strict performance of any covenant
or condition hereof, or to exercise any option herein contained, shall not be
construed as a waiver of such covenant, condition or option in any other
instance. This Lease cannot be changed or terminated orally, and can be
modified only in writing, executed by each party hereto.

 

19.                                   HOLDING OVER

 

If Tenant remains in possession of the Premises after expiration of the
Term, or after any termination of this Lease by Landlord, with Landlord’s
acquiescence and without any written agreement between the parties, Tenant
shall be a tenant at sufferance and such tenancy shall be subject to all the
provisions hereof, except that the Monthly Rental for said holdover period
shall be (i) 150% of the amount of Rent due in the last month of the Term
during the first three (3) months of the holdover period, and (ii) double
the amount of Rent due in the last month of the Term for the remainder of the
holdover period. There shall be no renewal of this Lease by operation of law.
Nothing in this Paragraph shall be construed as a consent by Landlord to the
possession of the Premises by Tenant after the expiration of the Term or any
termination of this Lease by Landlord, or as an exclusive remedy in the event
of a holdover. This Paragraph 19 shall survive the termination of this Lease,
by lapse of time or otherwise. Notwithstanding the above, Tenant shall have the
option to extend the Term for up to six (6) months (the “Short Term
Holdover Option”) by providing Landlord with written notice of its intent to
exercise the Short Term Holdover Option no later than one hundred eighty (180)
days prior to the otherwise effective Expiration Date. Monthly Rental during
any such period shall be 110% of the amount of Rent due in the month
immediately preceding the otherwise effective Expiration Date.

 

20.                                   HEADINGS

 

The headings in this Lease are included for convenience only and shall
not be taken into consideration in any construction or interpretation of any part of
this Lease.

 

21.                                   NOTICES

 

(a)                                  Any notice, request or consent by either
party to the other hereunder shall be valid only if in writing and shall be
deemed to be duly given only if hand-delivered, or sent by certified mail or by
a recognized national overnight delivery service which has a receipt of notice
as a part of its delivery function. Such notices shall be addressed (i) if
to Tenant, at the Premises after the Commencement Date and, prior to the
Commencement Date, at:

 

6195 Shiloh Road

Alpharetta, GA 30005

Attention: Leslie Zacks, General Counsel

 

with, in both cases, a copy to:

 

23

 

Paul Hastings

600 Peachtree Street NE

Twenty-fourth Floor

Atlanta, GA 30308

Attn: Tinley Anderson, Esq.

 

and
(ii) if to Landlord, at Landlord’s address set forth above, or at such
other address for either party as that party may designate by notice to
the other. Notice shall be deemed given, if delivered personally, upon delivery
thereof, and if mailed, upon the mailing thereof.

 

(b)                                 Tenant hereby appoints as its agent to
receive service of all dispossessory or distraint proceedings, Tenant’s
administrator of the Premises at the time of any such service.

 

22.                                   HEIRS, SUCCESSORS, AND ASSIGNS - PARTIES

 

(a)                                  This Lease shall bind and inure to the
benefit of Landlord and Tenant, and their respective successors, heirs, legal
representatives and assigns. The term “Landlord” as used in this Lease means
only the owner (or the ground lessee) for the time being of the Property and Building
of which the Premises are a part, so that in the event of any sale or sales of
said Property (or of any lease thereof), Landlord named herein shall be and
hereby is entirely released of all covenants and obligations of Landlord
hereunder accruing thereafter, and it shall be deemed without further agreement
that the purchaser, or the lessee, as the case may be, has assumed and
agreed to carry out any and all covenants and obligations of Landlord hereunder
during the period such party has possession of the Property and Building. If
the Property and Building are severed as to ownership by sale and/or lease, the
owner of the entire Building or lessee of the entire Building that has the
right to lease space in the Building to tenants shall be deemed “Landlord”.
Tenant shall be bound to any such succeeding party for performance by Tenant of
all the terms, covenants, and conditions of this Lease and agrees to execute
any attornment agreement not in conflict with the terms and provisions of this
Lease at the request of any such party.

 

(b)                                 The parties “Landlord” and “Tenant” and
pronouns relating thereto, as used herein, shall include male, female, singular
and plural, corporation, partnership or individual, as may fit the
particular parties.

 

23.                                   ATTORNEY’S FEES

 

If Landlord has to engage or consult with an attorney as a result of or
in connection with a failure by Tenant to pay any Rent as
and when due under this Lease, then Tenant shall owe to Landlord, in addition
to and not in lieu of any other amounts due hereunder, and shall pay within ten
(10) days after demand for payment therefor is made, all such attorneys
fees incurred by Landlord. Also, if any law suit or court action between
Landlord and Tenant arises out of or under this Lease, the prevailing party in
such law suit or court action shall be entitled to and shall collect from the
non-prevailing party the reasonable attorney’s fees and court costs actually
incurred by the prevailing party with respect to said lawsuit or court action.

 

24.                                   TIME OF ESSENCE

 

TIME IS OF THE ESSENCE OF THIS LEASE.

 

24

 

25.                              NO ESTATE IN LAND

 

Tenant has been granted a usufruct only in the Premises under this
Lease, and not a leasehold or other estate in land, and that Tenant’s interest
hereunder is not subject to levy, execution and sale and is not assignable
except with Landlord’s prior written consent. No estate shall pass out of
Landlord by this Lease.

 

26.                              INTENTIONALLY DELETED

 

27.                               INTENTIONALLY DELETED

 

28.                               PARKING ARRANGEMENTS

 

Landlord shall maintain unreserved covered parking spaces for use by
Tenant and Tenant’s invitees and employees, in such amount or ratio as is in compliance with the zoning for the Property, as may be
modified from time to time, but in no event less than 4 parking spaces for
every 1,000 occupied rentable square feet in the Premises, and Tenant (and
Tenant’s guests and employees) shall only be entitled to use that amount of
parking spaces (determined on a parking space per square foot leased basis).
Such parking shall be available subject to the reasonable limitations and
conditions from time to time imposed by Landlord, but neither Landlord nor any
parking contractor or other party acting on behalf of Landlord shall charge any
parking fees to Tenant or its visitors for such unreserved spaces. Said parking
shall be maintained on the Property or on areas located in the vicinity of the
Property. Notwithstanding the above, Tenant shall be entitled, as part of
the parking ratio above, to the use of twelve (12) reserved spaces. Such
reserved spaces shall be located at an area mutually agreed upon by Landlord
and Tenant, and Tenant shall not be charged for the use of such twelve (12)
reserved spaces.

 

29.                               RULES AND REGULATIONS

 

The Rules on Exhibit “E” are a part of this
Lease. Landlord may from time to time amend, modify, delete or add
additional Rules for the use, operation, safety, cleanliness and care of
the Premises and the Building, provided that Landlord enforces such Rules against
all tenants on a nondiscriminatory basis and provided that no such change
materially affects Tenant’s ability to use and enjoy the Premises for the
purposes intended by this Lease. Such new or modified Rules shall be
effective upon notice to Tenant. Tenant will cause its employees and agents, or
any others permitted by Tenant to occupy or enter the Premises to at all times
abide by the Rules. If there is a breach of any Rules beyond any
applicable notice and cure period provided in Paragraph 10(a), Landlord shall
have all remedies in this Lease provided for in an Event of Default by Tenant
and shall, in addition, have any remedies available at law or in equity,
including but not limited to, the right to enjoin any breach of such Rules.
Landlord shall not be responsible to Tenant for the nonobservance by any other
tenant or person of any such Rules.

 

25

 

30.                                   INTENTIONALLY DELETED

 

31.                                   LATE PAYMENTS

 

Any payment due of Tenant hereunder not received by Landlord within
five (5) days of the date when due shall be assessed a five percent (5%)
charge for Landlord’s administrative and other costs in processing and pursuing
the payment of such late payment, and shall be assessed an additional five
percent (5%) charge for the aforesaid costs of Landlord for each month
thereafter until paid in full. Acceptance by Landlord of a payment, and the
cashing of a check, in an amount less than that which is currently due shall in
no way affect Landlord’s rights under this Lease and in no way be an accord and
satisfaction. This provision does not prevent Landlord from declaring the
non-payment of Rent when due an Event of Default hereunder, subject to
Paragraph 10(a)(i).

 

32.                                   ESTOPPEL CERTIFICATE

 

Tenant shall, within ten (10) business days of the request by
Landlord, execute, acknowledge and deliver to Landlord, any Mortgagee,
prospective Mortgagee or any prospective purchaser or transferee of the
Property, the Building, or both (as designated by Landlord), an Estoppel
Certificate in recordable form, or in such other form as Landlord may from
time to time require, evidencing whether or not (a) this Lease is in full
force and effect; (b) this Lease has been amended in any way; (c) Tenant
has accepted and is occupying the Premises; (d) there are any existing
defaults on the part of Landlord hereunder or defenses or offsets against
the enforcement of this Lease to the knowledge of Tenant (specifying the nature
of such defaults, defenses or offsets, if any); (e) the date to which Rent
and other amounts due hereunder, if any, have been paid; and (f) any such
other information as may be reasonably requested by Landlord. Each
certificate delivered pursuant to this Paragraph may be relied on by
Landlord, any prospective purchaser or transferee of Landlord’s interest
hereunder, or any Mortgagee or prospective Mortgagee.

 

33.                                   SEVERABILITY AND INTERPRETATION

 

(a)                                  If any clause or provision of this Lease
shall be deemed illegal, invalid or unenforceable under present or future laws
effective during the Term, the remainder of this Lease shall not be affected by
such illegality, invalidity or unenforceability, and in lieu of each clause or provision
of this Lease that is illegal, invalid or unenforceable, there shall be added
as a part of this Lease a clause or provision as similar in terms to such
illegal, invalid or unenforceable clause or provision as may be possible
and be legal, valid and enforceable.

 

(b)                                    If any provisions of this Lease require
judicial interpretation, the court interpreting or construing the same shall
not apply a presumption that the terms of any such provision shall be more
strictly construed against one party or the other by reason of the rule of
construction that a document is to be construed most strictly against the party
who itself or through its agent prepared the same, as all parties hereto have
participated in the preparation of this Lease.

 

34.                                   MULTIPLE TENANTS

 

If more than one individual or entity comprises and constitutes Tenant,
then all individuals and entities comprising Tenant are and shall be jointly
and severally liable for the due

 

26

 

and
proper performance of Tenant’s duties and obligations arising under or in
connection with this Lease.

 

35.                                  FORCE MAJEURE

 

Any prevention, delay or stoppage due to strikes, lockouts, labor
disputes, acts of God, inability to obtain services, labor, or materials or
reasonable substitutes therefor, inability to obtain permits or other
governmental approvals after timely application therefor, governmental actions,
civil commotions, war, terrorism, fire or other casualty, and other causes
beyond the reasonable control of the party obligated to perform, except with
respect to the obligations imposed with regard to Rent and other charges to be
paid by Tenant pursuant to this Lease (collectively, “Force Majeure”),
notwithstanding anything to the contrary contained in this Lease, shall excuse
the performance of such party for a period equal to any such prevention, delay
or stoppage and therefore, if this Lease specifies a time period for
performance of an obligation of either party, that time period shall be
extended by the period of any delay in such party’s performance caused by an
event of Force Majeure.

 

36.                                  QUIET ENJOYMENT

 

So long as Tenant is in full compliance with the terms and conditions
of this Lease, Landlord shall warrant and defend Tenant in the quiet enjoyment
and possession of the Premises during the Term against any and all claims made
by, through or under Landlord, subject to the terms of this Lease.

 

37.                                  BROKERAGE COMMISSION; INDEMNITY

 

COUSINS PROPERTIES SERVICES LP (“COUSINS”) HAS ACTED AS CONTRACT
MANAGER FOR LANDLORD IN THIS TRANSACTION AND TRAMMELL CROW SERVICES, INC.
HAS ACTED AS AGENT FOR TENANT IN THIS TRANSACTION. BOTH COUSINS AND TRAMMELL
CROW SERVICES, INC. ARE TO BE PAID A COMMISSION BY LANDLORD. Tenant and
Landlord each warrant to the other that there are no other claims for broker’s
commissions or finder’s fees in connection with the warranting party’s
execution of this Lease. Tenant hereby indemnifies Landlord and holds Landlord
harmless from and against all loss, cost, damage or expense, including, but not
limited to, attorney’s fees and court costs, incurred by Landlord as a result
of or in conjunction with a claim of any real estate agent or broker, if made
by, through or under Tenant. Landlord hereby indemnifies Tenant and holds
Tenant harmless from and against all loss, cost, damage or expense, including,
but not limited to, attorney’s fees and court costs, incurred by Tenant as a
result of or in conjunction with a claim of any real estate agent or broker, if
made by, through or under Landlord. Tenant shall cause any agent or broker
representing Tenant, upon such broker’s receipt of any commission due to such
broker, to execute a lien waiver to and for the benefit of Landlord, waiving
any and all lien rights with respect to the Building or Property such agent or
broker has or might have under Georgia law.

 

38.                                  EXCULPATION OF LANDLORD

 

LANDLORD’S LIABILITY TO TENANT WITH RESPECT TO THIS LEASE SHALL BE
LIMITED SOLELY TO LANDLORD’S INTEREST IN THE PROPERTY. NEITHER LANDLORD, ANY
OFFICER, DIRECTOR, OR SHAREHOLDER OF LANDLORD

 

27

 

NOR ANY OF THE PARTNERS OF LANDLORD SHALL HAVE ANY PERSONAL LIABILITY
WHATSOEVER WITH RESPECT TO THIS LEASE.

 

39.                                   ORIGINAL INSTRUMENT

 

Any number of counterparts of this Lease may be executed, and each
such counterpart shall be deemed to be an original instrument.

 

40.                                   GEORGIA LAW

 

This Lease has been made under and shall be construed and interpreted
under and in accordance with the laws of the State of Georgia.

 

41.                                   NO RECORDATION OF LEASE

 

Neither this Lease nor any memorandum hereof shall be recorded or
placed on public record.

 

42.                                   HAZARDOUS WASTES

 

Tenant shall not (either with or without negligence) cause or permit
the escape, disposal or release of any biologically or chemically active or
other hazardous substances or materials. Tenant shall not allow the storage or
use of such substances or materials in any manner not sanctioned by law or by
the highest standards prevailing in the industry for the storage and use of
such substances or materials, nor allow to be brought into the Building, the
Premises or the Property, any such materials or substances except to use in the
ordinary course of Tenant’s business, and then only after notice is given to
Landlord of the identity of such substances or materials. Without limitation,
hazardous substances and materials shall include those described in the
Comprehensive Environmental Response, Compensation and Liability Act of 1980,
as amended, 42 U.S.C. Section 9601 et seq., the Resource Conservation and
Recovery Act, as amended, 42 U.S.C. Section 6901 et seq., any applicable
state or local laws and the regulations adopted under these acts. If any lender
or governmental agency shall ever require testing to ascertain whether or not
there has been any release of hazardous materials, then the reasonable costs
thereof shall be reimbursed by Tenant to Landlord upon demand as additional
charges if such requirement applies to the Premises. In addition, Tenant shall
execute affidavits, representations and the like from time to time at Landlord’s
request concerning Tenant’s best knowledge and belief regarding the presence of
hazardous substances or materials on the Premises. In all events, Tenant shall
indemnify Landlord in the manner elsewhere provided in this Lease from any
liability, loss, cost, damage or expense (including, without limitation,
reasonable attorney fees) incurred by or on behalf of Landlord resulting from
any release of hazardous materials on the Premises occurring while Tenant is in
possession, or elsewhere if caused by Tenant or persons acting under Tenant.
Except with respect to any release described in the preceding sentence,
Landlord shall indemnify Tenant from any liability of Tenant resulting from the
presence of any hazardous materials on the Property or any release of hazardous
materials from the Property. The within covenants shall survive the expiration or
earlier termination of the Term. As of the date of this Lease, Landlord has not
received any written notice that the Premises, the Building or the Property
contains any such hazardous substances of materials in violation of applicable
law.

 

28

 

43.                                    PATRIOT ACT.

 

Tenant (which for this purpose includes its partners, members,
principal stockholders and any other constituent entities (i) has not been
designated as a “specifically designated national and blocked person” on the
most current list published by the U.S. Treasury Department Office of Foreign
Assets Control at its official website, <http://www.treas.gov/ofac/t11sdn.pdf>
or at any replacement website or other replacement official publication of such
list; (ii) is currently in compliance with and will at all times during
the Term (including any extension thereof) remain in compliance with the
regulations of the Office of Foreign Asset Control of the Department of the
Treasury and any statute, executive order (including the September 24,
2001, Executive Order Blocking Property and Prohibiting Transactions with
Persons Who Commit, Threaten to Commit, or Support Terrorism), or other
governmental action relating thereto; and (iii) has not used and will not
use funds from illegal activities for any payment made under this Lease.

 

44.                                    LEASE BINDING UPON DELIVERY

 

This Lease shall not be binding until and unless all parties have duly
executed said Lease and a fully executed counterpart of said Lease has
been delivered to Tenant.

 

45.                                    SPECIAL STIPULATIONS

 

The special stipulations attached hereto as Exhibit “F”, if
any, and made a part hereof shall control if in conflict with any of the
foregoing provisions of this Lease.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

29

 

IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be
executed under seal, on the day and year first above written.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  485
  PROPERTIES, LLC, a

  
	
   

  	
  Delaware
  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Elizabeth Andress

  	
   

  
	
  Date
  executed by

  	
  Name:

  	
  Elizabeth Andress

  	
   

  
	
  Landlord:
  1/7/2006

  	
  Title:

  	
  Assistant
  Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  FIRST
  HORIZON PHARMACEUTICAL

  
	
   

  	
  CORPORATION,
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Darrell Borne

  	
  (SEAL)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
    /s/ Darrell Borne

  	
   

  
	
   

  	
   

  	
  Type
  Name of Signatory

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date
  executed by 

  	
  By:

  	
     /s/ Leslie B Zales

  	
  (SEAL)

  
	
  Tenant:
  January 30, 2006

  	
   

  	
  Authorized
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
     /s/ Leslie B Zacks

  	
   

  
	
   

  	
   

  	
  Type
  Name of Signatory

  	
   

  
	
   

  	
   

  
	
   

  	
  (CORPORATE SEAL)

  
						

 

*Note: If Tenant is a corporation, two authorized
corporate officers must execute this Lease in their appropriate capacities for
Tenant, affixing the corporate seal.

 

By the execution and delivery of this Lease Tenant has made and shall
be deemed to have made a continuous and irrevocable offer to lease the
Premises, on the terms contained in this Lease, subject only to acceptance by
Landlord (as evidenced by Landlord’s signature hereon), which Landlord may accept
in its sole and absolute discretion. If a fully executed counterpart of
this Lease is not delivered to Tenant within twelve (12) days after the date
executed by Tenant and delivered to Landlord, as set forth above, Tenant’s
offer shall expire and no longer be subject to acceptance by Landlord.

 

Tenant’s
Federal Employer Identification Number: 582004779

 

 

EXHIBIT “A”

 

SPACE PLAN OF PREMISES

 

A-1

 

EXHIBIT “A-l”

 

SPACE PLAN OF EXPANSION SPACE 

 

A-1-1

 

EXHIBIT “B”

 

LEGAL DESCRIPTION - CORPORATE CENTER V

TRACT I

 

All that tract or parcel of land lying and being in Land Lot 17, 17th
District, Fulton County, Georgia and being more particularly described as
follows:

 

To reach the TRUE POINT OF BEGINNING, commence at the intersection of
the former southern Right-of-way of Hammond Drive (variable Right-of-Way, was
47.9 feet from the centerline) extended and the former western Right-of-Way of
Peachtree Dunwoody Road (variable Right-of-Way, was 41.7 feet from the
centerline) extended; thence along the former southern Right-of-Way of Hammond
Drive North 86° 36’ 33” West a distance of 169.01 feet to a point; thence
continuing along said former Right-of-Way North 84° 29’ 08” West a distance of
208.47 feet to a point; thence continuing along said former Right-of-Way North
87° 58’ 03” West a distance of 344.41 feet to a point; thence continuing along
said former Right-of-Way South 02° 01’ 32” West a distance of 23.63 feet to a
point; thence leaving said Right-of-Way South 02° 01’ 32” West a distance of
97.90 feet to the TRUE POINT OF BEGINNING; thence South 02° 01’ 32” West a
distance of 161.45 feet to a point; thence North 87° 56’ 37” West a distance of
68.50 feet to a point; thence South 02° 42’ 10” West a distance of 424.58 feet
to a point; thence North 87° 18’ 46” West a distance of 0.27 feet to a point;
thence South 02° 33’ 01” West a distance of 113.39 feet to a point; thence
North 88° 54’ 38” West a distance of 49.13 feet to a point; thence South 02° 41’
57” West a distance of 369.97 feet to a point; thence North 42° 17’ 47” West a
distance of 26.56 feet to a point; thence North 02° 42’ 13” East a distance of
43.66 feet to a point; thence North 87° 17’ 47” West a distance of 19.09 feet
to a point; thence North 02° 42’ 13” East a distance of 19.09 feet to a point;
thence North 87° 17’ 47” West a distance of 19.09 feet to a point; thence North
02° 42’ 13” East a distance of 19.09 feet to a point; thence North 87° 17’ 47”
West a distance of 19.09 feet to a point; thence North 02° 42’ 13” East a
distance of 19.09 feet to a point; thence North 87° 17’ 47” West a distance of
19.09 feet to a point; thence North 02° 42’ 13” East a distance of 19.09 feet
to a point; thence North 87° 17’ 47” West a distance of 123.76 feet to a point;
thence South 47° 42’ 13” West a distance of 24.63 feet to a point; thence North
87° 17’ 47” West a distance of 26.04 feet to a point; thence North 02° 42’ 13”
East a distance of 44.37 feet to a point; thence along a curve to the left an
arc distance of 184.93 feet (said curve having a radius of 67.55 feet, a chord
distance of 132.35 feet and a chord bearing of North 02° 42’ 13” East) to a
point; thence North 02° 42’ 13” East a distance of 44.37 feet to a point;
thence North 87° 17’ 47”, West a distance of 33.87 feet to a point; thence
North 00° 00’ 00” East a distance of 211.03 feet to a point; thence North 47°
42’ 11” East a distance of 105.51 feet to a point; thence North 48° 42’ 12”
East a distance of 103.91 feet to a point; thence along a curve to the left an
arc distance of 150.75 feet (said curve having a radius of 1317.92 feet, a
chord distance of 150.67 feet, and a chord bearing of North 41° 59’ 43” East)
to a point; thence along a curve to the left an arc distance of 37.41 feet (said
curve having a radius of 23.00 feet, a chord distance of 33.42 feet, and a
chord bearing of North 07° 52’ 36” West) to a point; thence along a curve to
the left an arc distance of 44.69 feet (said curve having a radius of 78.00
feet, a chord distance of 44.08 feet, and a chord bearing of North 70° 53’ 04”
West) to a point; thence North 87° 17’ 49” West a distance of 129.20 feet to a
point; thence South 02° 42’ 11” West a distance of 10.75 feet to a point;
thence North 87° 17’ 49” West a distance of 77.00 feet to a point; thence South
02° 42’ 11” West a distance of 22.00 feet to a point; thence North 87° 17’ 49”
West a distance of 60.67 feet to a point; thence North 02° 42’ 11” East a
distance of 22.00 feet to a point; thence North 87°

 

B-1

 

17’
49” West a distance of 193.33 feet to a point; thence North 02° 42’ 11” East a
distance of 279.00 feet to a point; thence South 87° 17’ 49” East a distance of
340.88 feet to a point; thence South 02° 13’ 27” West a distance of 225.00 feet
to a point; thence South 88° 11’ 11” East a distance of 195.22 feet to a point;
thence North 01° 55’ 53” East a distance of 96.86 feet to a point; thence South
50° 05’ 28” East a distance of 78.91 feet to a point; thence North 39° 45’ 06”
East a distance of 143.00 feet to a point being the TRUE POINT OF BEGINNING,
said tract containing 7.225 acres.

 

The legal description as contained herein is based on the property as
shown on a survey title “As-Built Survey of Concourse Corporate Center V for
Concourse V Associates and Ticor Title Insurance Company of California and
Teachers Insurance and Annuity Association of America”, prepared by Benchmark
Engineering Corporation, bearing the certification of Dennis Boutwell, Georgia
Registered Land Surveyor No. 1873, dated September 20, 1988, last
revised July 24, 1989

 

LEGAL DESCRIPTION - CORPORATE CENTER V

TRACT II

 

All that tract or parcel of land lying and being in Land Lot 17, 17th
District, Fulton County, Georgia and being more particularly described as
follows

 

To reach the TRUE POINT OF BEGINNING, commence at the intersection of
the former southern Right-of-Way of Hammond Drive (variable Right-of-Way, was
47.9 feet from the centerline) extended and the former western Right-of-Way of
Peachtree Dunwoody Road (variable Right-of-Way, was 41.7 feet from the
centerline) extended; thence along the former southern Right-of-Way of Hammond
Drive North 86° 36’ 33” West a distance of 169.01 feet to a point; thence
continuing along said former Right-of-Way North 84° 29’ 08” West a distance of
208.47 feet to a point; thence continuing along said former Right-of-Way North
87° 58’ 03” West a distance of 344.41 feet to a point; thence continuing along
said former Right-of-Way South 02° 01’ 32” West a distance of 26.81 feet to a
point on the existing Right-of-Way of Hammond Drive; thence leaving said
existing Right-of-Way South 02° 01’ 32” West a distance of 161.45 feet to a
point; thence South 39° 45’ 06” West a distance of 143.00 feet to a point;
thence North 50° 05’ 28” West a distance of 78.91 feet to a point; thence North
01° 55’ 53” West a distance of 96.86 feet to a point; thence North 88° 11’ 11”
West a distance of 195.22 feet to a point; thence North 02° 13’ 27” East a
distance of 225.00 feet to a point, being the TRUE POINT OF BEGINNING; thence
North 87° 17’ 49” West a distance of 600.13 feet to a point; thence South 00°
28’ 40” East a distance of 115.99 feet to a point; thence along a curve to the
right an arc distance of 162.30 feet (said curve having a radius of 1301.00
feet, a chord distance of 162.20 feet, and a chord bearing of South 03° 05’ 46”
West) to a point; thence South 06° 40’ 11” West a distance of 133.86 feet to a
point; thence along a curve to the left an arc distance of 156.81 feet (said
curve having a radius of 1000.00 feet, a chord distance of 156.65 feet, and a
chord bearing of South 02° 10’ 40” West) to a point; thence South 02° 18’ 52”
East a distance of 22.60 feet to a point; thence South 87° 41’ 08” West a
distance of 109.76 feet to a point on the eastern Right-of-Way of North Fulton
Expressway (also known as Georgia Route No. 400 - variable Right-of-Way);
thence along said Right-of-Way along a curve to the right an arc distance of
175.78 feet (said curve having a radius of 3701.72 feet, a chord distance of
175.77 feet, and a chord bearing of North 00° 16’ 12” East) to a point; thence
continuing along said Right-of-Way North 01° 33’ 39” East a distance of 425.80
feet to a point at the intersection with the existing southern Right-of-Way
of said Hammond Drive; thence along the said existing southern

 

B-2

 

Right-of-Way of Hammond Drive North 89° 30’ 25” East a distance of
51.66 feet to a point; thence continuing along said existing Right-of-Way North
83° 08’ 10” East a distance of 136.85 feet to a point; thence continuing along
said existing Right-of-Way North 88° 57’ 54” East a distance of 244.32 feet to
a point; thence continuing along said existing Right-of-Way South 87° 56’ 55”
East a distance of 295.27 feet to a point; thence leaving said existing
Right-of-Way South 02° 13’ 27” West a distance of 45.94 feet to a point being
the TRUE POINT OF BEGINNING, said tract containing 2.197 acres.

 

The legal description as contained herein is based on the property as
shown on a survey title “As-Built Survey of Concourse Corporate Center V for
Concourse V Associates and Ticor Title Insurance Company of California and
Teachers Insurance and Annuity Association of America”, prepared by Benchmark
Engineering Corporation, bearing the certification of Dennis Boutwell, Georgia
Registered Land Surveyor No. 1873, dated September 20, 1988, last
revised July 24, 1989.

 

B-3

 

EXHIBIT “C”

 

WORK AGREEMENT FOR

COMPLETION OF THE PREMISES

 

Landlord
and Tenant executed a Lease for Premises on the seventeenth (17th)
and eighteenth (18th) floors of the Building and hereby attach this
Work Agreement to said Lease as Exhibit “C” thereto. To induce
Tenant to enter into the Lease and in consideration of the mutual covenants
herein contained, Landlord and Tenant agree as follows:

 

ARTICLE 1 - DEFINITIONS

 

The following terms shall have the meanings described below. Terms not
defined herein shall have the meaning given in the Lease:

 

Additional Allowance shall mean Ten Thousand Dollars ($10,000).

 

Allowance
shall mean Thirty Seven Dollars and Fifty Cents ($37.50) multiplied by the
number of rentable square feet in the Premises.

 

Architect
shall mean Veenendaal Cave, Inc.

 

Base Building Improvements shall mean Building Standard improvements to be constructed or
installed in the Building.

 

Building Plans and Specifications shall mean the final drawings and
specifications for Base Building Improvements.

 

Building Standard Materials shall mean such materials described in Exhibit H attached hereto,
or materials of comparable quality substituted therefor by Landlord. Except for
Building Standard Hardware and items pre-installed by Landlord, Tenant may, but
is not obligated to, purchase Building Standard Materials. Tenant shall be
obligated to buy Building Standard Hardware and all items pre-installed by
Landlord. Tenant may also be obligated to utilize and pay for certain
other Building Standard Materials in accordance with Section 3.01(c) herein.

 

Contractor
shall mean the party selected in accordance with Article 5 herein to do
the Tenant Improvements.

 

Change Order
shall mean any alteration, substitution, addition or change to or in the Tenant
Space Plans or Tenant Improvement Construction Documents requested by Tenant
after the same have been consented to by Landlord.

 

Completion Date
shall mean the date of Substantial Completion of Tenant Improvements under the
Tenant Improvement Construction Documents.

 

C-1

 

Construction Contract shall mean the agreement to be entered between Tenant and Contractor
for the construction of the Tenant Improvements.

 

Design Allowance
shall mean Two Dollars Seventy-five Cents ($2.75) multiplied by the number of
rentable square feet in the Premises.

 

Substantial Completion or Substantially Complete shall be as described in Section 3.04
hereof.

 

Tenant’s Architect shall mean Rule, Joy, Trammell + Rubio, LLC.

 

Tenant’s Costs
shall mean the aggregate of (a) all costs and expenses of constructing the
Tenant Improvements that are in excess of the Allowance, and (b) all costs
and expenses related to the design (including any revision and redesign costs)
of the Tenant Improvements.

 

Tenant Improvements shall mean all improvements constructed or installed in or on the
Premises and common areas of the Building in accordance with the Tenant
Improvement Construction Documents, net of a $.15 per square foot test fit
allowance to be paid to Rule, Joy, Trammell + Rubio, LLC by Landlord.

 

Tenant Improvement Costs shall mean the aggregate cost for the Tenant Improvements, approved by
Tenant in accordance with Section 3.01 hereof, together with the cost of
any Change Orders as provided in Section 3.05 hereof and the costs of all
contract administration and construction management performed by Tenant’s
Architect.

 

Tenant Improvement Construction Documents shall mean the working drawings,
specifications and finish schedules for the Tenant Improvements prepared by
Tenant’s Architect and consented to by Landlord and Tenant in accordance
herewith.

 

Tenant Space Plans shall mean the schematic presentation of the Premises prepared by
Tenant’s Architect and consented to by Landlord and Tenant in accordance
herewith.

 

Tenant’s Work
shall mean all work in or about the Premises not within the scope of the work
necessary to construct the Tenant Improvements, such as (by way of illustration
and not limitation) delivering and installing furniture, telephone equipment
and wiring and office equipment.

 

Working Day
shall mean the period from 9:00 A.M. until 5:00 P.M. on any Monday
through Friday, excluding federal and Georgia state holidays. By way of
illustration, any period described in this Work Letter as expiring at the end
of the third (3rd) Working Day after receipt of a document, then: (i) if
receipt occurs at 9:01 A.M. on Monday, said period shall expire at 5:00 P.M.
on the following Thursday; and (ii) if receipt occurs at 4:59 P.M. on
Wednesday, the period shall expire at 5:00 P.M. on the following Monday.

 

ARTICLE 2. TENANT SPACE
PLANS AND TENANT

IMPROVEMENT PLANS AND SPECIFICATIONS

 

C-2

 

Section 2.01 Schedule for Preparation

 

Tenant
shall contract with Tenant’s Architect for the preparation of the Tenant Space
Plans and Tenant Improvement Construction Documents; provided, however, that
Tenant agrees to contract, at reasonable or market rates, with the Building’s
mechanical, electrical and plumbing engineers with respect to the engineering
drawings that are included in the Tenant Improvement Construction Documents.
Subject to the immediately preceding sentence, Tenant Space Plans and Tenant
Improvement Construction Documents for the Tenant Improvements shall be
prepared by Tenant’s Architect, reviewed by Architect, and consented to by
Tenant and Landlord as provided hereinbelow. Architect, on Landlord’s behalf,
shall provide review and monitoring services during both the preparation of the
Tenant Space Plans and Tenant Improvement Construction documents and the
completion of the work therein for a fee of one percent (1%) of the Tenant
Improvement Costs, but not in excess of $15,000. Tenant shall be solely
responsible for such Architect’s fee, but Tenant shall be allowed to apply any
portion of the Allowance towards such fee.

 

1.                                       As soon as reasonably possible (but in no
event later than ten (10) Working Days after the full execution and
delivery of the Lease) Tenant shall provide Tenant’s Architect all specifications,
information and documents necessary to enable Tenant’s Architect to prepare the
Tenant Space Plans.

 

2.                                       Within ten (10) Working Days after
receipt of all items described in Section 2.01(1) above, Tenant’s
Architect shall prepare and deliver to Tenant and Landlord the Tenant Space
Plans.

 

3.                                       By the end of the third (3rd) full Working
Day after receipt of the Tenant Space Plans, Tenant and Landlord shall review
and resubmit the same to Tenant’s Architect, either with consent or with
comments thereto. Landlord’s comments shall include its determination of whether
Tenant will be required to remove any Tenant Improvements at the end of the
Term pursuant to Section 7(b) and whether Tenant’s electrical design
would require Additional Electrical Equipment pursuant to Section 8(b)(iv).
Landlord agrees that Tenant will not be obligated to remove any HVAC equipment
or other Tenant Improvements that are typical for commercial use.

 

4.                                       By the end of the third (3rd) full Working
Day after receipt of any comments to the Tenant Space Plans, Tenant’s Architect
shall resubmit to Tenant and Landlord the Tenant Space Plans with such changes
or information as requested.

 

5.                                       This process described in Section 2.01(2),(3) and
(4) shall continue until Tenant and Landlord have satisfied themselves
that such proposed Tenant Space Plans are acceptable, but once Tenant Space
Plans have been resubmitted, Tenant and Landlord shall confine their comments
thereupon only to the changes made by Tenant’s Architect or changes requested to
the prior submission of Tenant Space Plans, but not made by Tenant’s Architect.
Once each of Tenant and Landlord has satisfied itself that such proposed Tenant
Space Plans are acceptable, each shall notify the other, and the Tenant Space
Plans as so consented to shall constitute the final Tenant Space Plans. When
the parties give such final consent, Tenant shall notify Landlord of the amount
of time Tenant estimates, in Tenant’s reasonable judgment, Substantial
Completion of Tenant Improvements within the portion of the Premises shown on
such Tenant Space Plans will require.

 

C-3

 

6.                                       After final consent to the Tenant Space
Plans, Tenant’s Architect shall prepare and deliver to Tenant and Landlord the
prepared Tenant Improvement Construction Documents.

 

7.                                       By the end of the third (3rd) full Working
Day after receipt of the Tenant Improvement Construction Documents, Tenant and
Landlord shall review and resubmit the same to Tenant’s Architect, either with
Tenant’s consent or comments thereto.

 

8.                                       By the end of the third (3rd) full Working
Day after receipt of any comments to the Tenant Improvement Construction
Documents, Tenant’s Architect shall resubmit to Tenant and Landlord the Tenant
Improvement Construction Documents with such changes or information as
requested.

 

9.             The process described in Section 2.01(6),
(7) and (8) shall continue until each of Landlord and Tenant is
satisfied that such proposed Tenant Improvement Construction Documents are acceptable,
but once Tenant Improvement Construction Documents have been resubmitted to,
Tenant and Landlord shall confine their comments thereupon only to changes made
by Tenant’s Architect or the changes requested to the prior submission of
Tenant Improvement Construction Documents, but not made by Tenant’s Architect.
Once each of Landlord and Tenant is satisfied that such proposed Tenant
Improvement Construction Documents are acceptable, each shall notify the other,
and the Tenant Improvement Construction Documents consented to by Tenant and
Landlord shall constitute the final Tenant Improvement Construction Documents.

 

10.           Any approval or consent by Landlord of any
items submitted by Tenant to and/or reviewed by Landlord pursuant to this Work
Letter shall be deemed to be strictly limited to an acknowledgment of approval
or consent by Landlord thereto and shall not imply or be deemed to imply any
representation or warranty by Landlord that the design is safe or structurally
sound or will comply with any legal or governmental requirements. Any deficiency,
mistake or error in design (expressly excluding the engineering drawings), although
the same has the consent or approval of Landlord, shall be the sole
responsibility of Tenant, and Tenant shall be liable for all costs and expenses
which may be incurred and all delays suffered in connection with or
resulting from any such deficiency, mistake or error in design.

 

ARTICLE 3. CONSTRUCTION
OF TENANT IMPROVEMENTS

 

Section 3.01
Pricing of Tenant Improvements

 

(a) Within ten (10) Working Days after final approval of the
Tenant Improvement Construction Documents, Tenant shall obtain a price proposal
for the Tenant Improvements from Contractor. Such price proposal shall be
subject to Landlord’s review and approval, which approval by Landlord shall not
be unreasonably withheld or delayed. Should Tenant desire to seek adjustments
of such price proposal, Tenant shall work promptly with Tenant’s Architect and
Contractor to alter the Tenant Improvement Construction Documents to cause the
price quotation to be acceptable to Tenant and to establish the Tenant
Improvement Costs. Upon determination of the Tenant Improvement Costs and the
written approval of the Tenant Improvement Construction Documents by Landlord
and Tenant, Tenant shall have given final approval of the same, and Tenant
shall be

 

C-4

 

authorized
to proceed with contracting with Contractor for the construction and
installation of the Tenant Improvements in accordance with the Tenant
Improvement Construction Documents.

 

(b)                                 Included in the pricing for the Tenant
Improvements shall be the cost of those Building Standard Materials which
Tenant is obligated to purchase under this Work Letter, which shall be purchased
by Tenant in appropriate quantities for the Premises. The cost of such Building
Standard Materials shall be charged against the Allowance, to the extent
available.

 

(c)                                  If Tenant has, as a part of any
specifications for the Tenant Improvements, designated Building Standard
Materials or a standard that allows for equivalent quality items and would
permit the use of Building Standard Materials, Landlord shall have the right,
at Landlord’s option and in Landlord’s sole discretion, to sell those Building
Standard Materials to Tenant at the price given for such item (on a unit cost
basis) by the bidder selected to perform that portion of the work which
will be using the Building Standard Materials in question; provided, however,
Landlord shall not charge for any materials, whether or not Building Standard
Materials, which were located in the Premises on January 1, 2006 or
remained after the demolition of existing improvements. Any such costs under this
Section 3.01(c) shall be charged against the Allowance, to the extent
available.

 

Section 3.02 Construction of Tenant Improvements.

 

Tenant will enter into a Construction Contract with Contractor to
construct the Tenant Improvements, with Landlord named as a third party
beneficiary thereunder. Tenant shall cause the Tenant Improvements to be
performed in a good and workmanlike manner. If Landlord notifies Tenant of any
defect with the Tenant Improvements within ninety (90) days after Tenant takes
possession of the Premises then Tenant shall, at Tenant’s cost, remedy such
defect.

 

Section 3.03 Tenant Delay

 

If there is delay in achieving Substantial Completion of Tenant’s
Improvements as a result of or in connection with:

 

A.                                   Tenant’s failure to furnish any information
or documents in accordance with this Work Letter;

 

B.                                     Tenant’s request for materials, finishes or
installations other than Building Standard Materials, finishes or
installations;

 

C.                                     Any Change Order, including any change in the
Tenant Improvement Construction Documents made pursuant to Section 3.01
hereof and any failure by Tenant to respond to a “Change Order Effect Notice”
within the time period required hereunder;

 

D.                                    Tenant’s failure to respond within any of the
time periods specified herein;

 

E.                                      If in the performance or prosecution of
Tenant’s Work, Tenant’s employees or agents interfere with or in any manner
hinder Contractor from prosecuting to the fullest extent possible the Tenant
Improvements work; or

 

C-5

 

F.                                      Tenant’s failure to return properly executed
original counterparts of this Lease to Landlord within three (3) Working
Days after receipt from Landlord;

 

then such shall be a “Tenant Delay”. 

 

Section 3.04
Completion of Premises

 

A.                                   The Premises shall be Substantially
Completed, as to any floor, and Substantial Completion shall have occurred, as
to any floor, upon the following:

 

(i)            Tenant Improvements shall have been completed
as to the floor in substantial compliance with the Construction Contract and
otherwise sufficient so that Architect can execute the most recently published
version of AIA form G704, titled “Certificate of Substantial Completion”;
and

 

(ii)           Tenant shall have obtained a certificate of
occupancy (or evidence reasonably satisfactory to Tenant and Landlord that upon
completion of the Tenant’s Work, a certificate of occupancy will be issued) for
the Premises in question, permitting use of the floor of the Premises in
question;

 

provided, to the extent compliance with the conditions set forth above
would have occurred earlier but for Tenant Delay, then compliance with such
condition shall be deemed to have occurred on the date it would have occurred
but for the Tenant Delay.

 

Section 3.05 Changes in Plans and Specifications

 

A.                                   If at any time after the Tenant Improvement
Costs are determined, Tenant desires to make Change Orders, Tenant shall submit
to Tenant’s Architect, with a copy to Architect, for pricing by Contractor
working drawings and specifications for any and all such desired Change Orders.
Tenant’s Architect shall respond to Tenant, within five (5) Working Days
of such request by Tenant, with an estimate of the effect of such desired
Change Order on Tenant Improvement Costs and the schedule of anticipated
Substantial Completion (the “Change Order Effect Notice”). Tenant shall have
three (3) Working Days to respond to such Change Order Effect Notice, with
the authorization required hereunder, although Tenant may, within said three (3) Working
Day period, request more time to finally respond to the Change Order Effect
Notice. A failure by Tenant to respond to any such Change Order Effect Notice
shall be denial of consent, and, upon denial, Contractor shall proceed with its
work in accordance with the Tenant Improvement Construction Documents. Once the
cost and the schedule change, if any, for such Change Order has been approved
by Tenant, all references in this Work Agreement to the “Tenant Improvement Construction
Documents” shall be to the Tenant Improvement Construction Documents, as
changed pursuant to this Section 3.05, and all references to “Tenant
Improvement Costs” shall include the net aggregate approved cost for the Change
Orders determined in this Section 3.05 (after taking into account any
savings affected by such Change Order), except that there may be a fee
charged by the Tenant Improvement Contractor for any Change Order which reduces
Tenant Improvement Costs.

 

B.                                     Once the Change Order, the costs therefor and
the schedule change associated therewith have been approved and a form evidencing
such approval executed by Tenant is delivered to Landlord, Tenant shall have
given full authorization to cause Contractor to proceed with the work of

 

C-6

 

constructing
the Tenant Improvements in accordance with the Tenant Improvement Construction
Documents as so modified; provided that any changes required by Tenant which
constitute a material deviation from the previously approved Tenant Improvement
Construction Documents shall be effective only after the approval of Landlord,
not to be unreasonably withheld or delayed, unless such change would result in
a material delay in the completion of the work being done by Contractor.

 

Section 3.06 General Provisions Applicable to Tenant’s Work

 

1.                                       Tenant will require a high grade, first-class operation
to be conducted in the Premises. Tenant’s Work and the Tenant Improvements
shall be performed in a first-class manner, using new and first-class,
quality materials. Tenant’s Work and the Tenant Improvements shall be
constructed and installed in accordance with all applicable laws, ordinances,
codes and rules and regulations of governmental authorities. Tenant shall
promptly correct any of Tenant’s Work and the Tenant Improvements which is not
in conformance therewith.

 

2.                                       Tenant’s contract parties and subcontractors
shall be subject to administrative supervisions by Landlord and Architect in
their use of the Building and their relationship with Contractor, or
contractors of other tenants in the Building. The entry by Tenant and/or its
contract parties into the Premises for the performance of Tenant’s Work shall
be subject to the Lease, except the payment of Rent. If Landlord allows Tenant
and/or its contract parties to enter the Premises and commence the performance
of Tenant’s Work prior to the Completion Date, such entry by Tenant shall be at
Tenant’s sole risk.

 

3.                                       Tenant’s Work shall be coordinated and
conducted to maintain harmonious labor relations and not (a) to interfere
unreasonably with or to delay the completion of any work being performed by
Contractor or by any other tenant in the Building; or (b) to interfere
with or disrupt the use and peaceful enjoyment of other tenants in the
Building. Contractor shall have priority over Tenant’s Work.

 

4.                                       Tenant and Tenant’s contract parties shall
perform their work, including any storage for construction purposes,
within the Premises only. Tenant shall be responsible for removal, as needed,
from the Premises and the Building of all trash, rubbish, and surplus materials
resulting from any work being performed in the Premises. Tenant shall exercise
extreme care and diligence in removing such trash, rubbish, or surplus
materials from the Premises to avoid littering, marring, or damaging any
portion of the Building. If any such trash, rubbish, or surplus materials are
not promptly removed from the Building in accordance with the provisions hereof
or if any portion of the Building is littered, marred, or damaged, Landlord may cause
same to be removed or repaired, as the case may be, at Tenant’s cost and
expense. Tenant shall pay Landlord the amount of any such cost and expenses
promptly upon demand therefor.

 

ARTICLE 4. PAYMENT OF
COSTS

 

Section 4.01
Allowance for Tenant Improvement Costs

 

Landlord shall pay the Tenant Improvement Costs, up
to, but not in excess of, the Allowance, Additional Allowance and Design Allowance
and Tenant will pay any excess. The Allowance is

 

C-7

 

applicable
to Tenant Improvements (including the costs of cabling and other soft costs in
an amount up to Five Dollars ($5.00) per rentable square foot in the Premises
and moving expenses in an amount up to Five Dollars ($5.00) per rentable square
foot in the Premises). If the Tenant Improvement Costs are less than the
Allowance then up to Five Dollars of any portion of the Allowance remaining may be
credited towards the first months Rent. The Additional Allowance is applicable
only to improvements to the common areas of the Building performed in
accordance with plans and specifications mutually approved by Landlord and
Tenant as provided herein. The Design Allowance is applicable only to the fees
of Tenant’s Architect. Notwithstanding the foregoing, the costs of furnishing
new ceiling tile and standard building lighting throughout the Premises shall
be provided by Landlord at its sole cost and expense and shall not be applied
to the Allowance. In addition, Landlord shall, at its sole cost and expense,
perform the general specifications described on Exhibit “C-l”
attached hereto. The cost of demolishing the space below ceilings in accordance
with Tenant’s demolition plan shall be provided as follows. Landlord shall, at
its sole cost and expense, pay the amount of the lowest bid received for the
demolition work and the difference, if any, between the lowest bid received for
the demolition work and the actual cost of the demolition work done by
Contractor shall be included in the Tenant Improvement Costs. Landlord shall
disburse the Allowance, Additional Allowance, and Design Allowance in
accordance with applications for payment and supporting material submitted to
Landlord by Tenant’s Architect. Such applications and supporting materials
shall be submitted on a monthly basis, by Tenant’s Architect and Landlord shall
make such disbursements within thirty (30) days of the receipt thereof. Except
as specifically set forth elsewhere in this Lease, Landlord will not charge any
fees to Tenant for supervision, coordination or similar services, unless such
services are specifically requested by Tenant.

 

Section 4.02 Payment of Tenant’s Costs

 

Tenant shall pay Tenant’s Costs to Landlord prior to commencement of
construction of the Tenant Improvements upon Tenant’s receipt from Tenant’s
Architect of an invoice for such costs. Failure by Tenant to pay Tenant’s Costs
in accordance with this Article 4 will constitute a failure by Tenant to
pay Rent when due under the Lease.

 

ARTICLE 5. CONTRACTOR
REQUIREMENTS

 

A.                                   The prospective bidders for the engagement as
“Contractor” shall be four (4), including:

 

(i)                                     Raven

(ii)                                  Leapley

(iii)                               Cork & Howard

(iv)                              DPR Construction

 

B.                                     Tenant shall be responsible for preparing bid
instructions to prospective contractors. Such bid instructions shall seek a
separate bid for the cost of demolishing the space below ceilings. Tenant shall
receive, qualify and determine the responsiveness of all bids. However,
Landlord may elect to review such work and services.

 

C-8

 

C.                                     All bids from such potential contractors
shall be required to be submitted on or before ten (10) business days
after such potential contractors’ receipt from Tenant of Tenant Space Plans or
Building Plans and Specifications sufficient to generate a bid with a maximum
price quoted. From such bids, Tenant shall select Contractor.

 

ARTICLE 6. DESIGNATION
OF REPRESENTATIVES

 

Section 6.01
Landlord’s Agent

 

Landlord
hereby designates Jennifer Zeigler to act as its authorized representative on
this Work Agreement. Any response from such person under this Work Agreement
shall be the response of Landlord.

 

Section 6.02
Tenant’s Agent

 

Tenant
hereby designates Ann Rubio to act as its authorized representative on this
Work Agreement. Any response from such person under this Work Agreement shall
be the response of Tenant.

 

Section 6.03
Mutual Cooperation

 

Landlord’s
Agent and Tenant’s Agent shall cooperate with one another in coordinating
Substantial Completion of Tenant’s Work and the Tenant Improvements, and in
controlling and minimizing the time and costs of the Tenant Improvements and
Tenant Work.

 

ARTICLE 7. ADA COMPLIANCE

 

Section 7.01
Building

 

Tenant
shall not be obligated to pay for Building compliance with the Americans with
Disabilities Act (“ADA”), unless such compliance arises out of Tenant’s
specific use of the Premises and Building.

 

Section 7.02
Tenant’s Improvements

 

Tenant
Improvements shall be and Tenant shall cause the Tenant Space Plan to be in
compliance with the ADA, to the extent the ADA requirements are applicable and
mandatory and are not voluntary (but not mandatory) for such Tenant
Improvements.

 

C-9

 

EXHIBIT “C-l”

 

GENERAL BUILDING SPECIFICATIONS TO BE
PERFORMED BY LANDLORD

 

The
general building specifications outlined below, will be performed by the
Landlord at its sole expense, and shall be performed in a good and workmanlike
manner and shall conform to National Building Code and applicable
municipal by-laws. In any new construction or whereever possible, Tenant will
require the Landlord to install the HVAC distribution, lighting and sprinklers
pursuant to the Tenant’s plans and specifications in quantities as outlined
below:

 

A.                                   General Requirement: Ensure that all plans
and specifications for the proposed office project can accommodate a
workstation densification ratio of 220 rentable square feet per person. This
includes but is not limited to HVAC, electrical, lighting, floor loading,
elevators, washrooms and stairwells.

 

B.                                     Common Areas: Tenant requires the base
building work to include the main lobby, and washrooms (pursuant to OBC
requirements) to be constructed and finished to a suburban Class “A”
standard by the Landlord.

 

C.                                     Electrical: Tenant requires a minimum of 6
watts per square foot of power for lighting and tenant requirements. Outline
any potential for additional power or back-up systems that the Landlord would
make available to Tenant as part of base building. All power shall be
distributed from the main disconnect to a panel on each floor.

 

D.                                    HVAC: HVAC to meet requirements of current
ASHRAE standards (15 CFM per person of outdoor air) and distributed in an open
area concept. Identify the Building’s current HVAC system and distribution
method and hours of operation.

 

E.                                      Lighting: 
Tenant requires base building lighting to provide 40 foot candles at
desk top level, distributed in an open area concept.

 

F.                                      Ceiling System: Tenant requires the Building’s
ceiling finish height to be a minimum of nine (9) feet, and the Landlord
to install a drop, T-bar ceiling system, with new ceiling tile (Armstrong
Cirrus or equivalent) stockpiled in the floor for installation by Tenant.

 

G.                                     Exterior Walls: All exterior and core walls
to be dry-walled, taped and sanded, with one coat of primer.

 

H.            Floor Covering: Tenant requires the
floors to be smooth, level concrete ready to receive Tenant’s floor covering.

 

I.                                         Life Safety: Tenant requires Landlord to
install a base-building fire suppression system, including installation of a
primary loop and branch distribution system, distribution of sprinkler system,
fire hose and extinguisher cabinets finished and installed at each stairwell,
exit signs, smoke detectors and any additional signal devices or systems, all
as required in accordance with municipal and provincial codes.

 

C-1-1

 

EXHIBIT “D”

 

MEMORANDUM CONFIRMING TERM

 

THIS MEMORANDUM (“Memorandum”) is made as of                        ,
20     between                                        (“Landlord”)
and                                             ,
a                                   (“Tenant”),
pursuant to that certain Lease Agreement between Landlord and Tenant dated as
of                        ,
20      (the “Lease”) for the premises located at
                                                                                   ,
                                         (the “Premises”) and more particularly described
in the Lease. All initial-capitalized terms used in this Memorandum have the
meanings ascribed to them in the Lease.

 

1.                                       Landlord and Tenant hereby confirm that:

 

(a)                                  The Commencement Date of the Term is                        ,
20    ;

 

(b)                                 The Expiration Date of the Term is                        ,
20    ; and

 

(c)                                  The date rental commences under the Lease is                        ,
20    .

 

2.                                       Tenant hereby confirms that all commitments,
arrangements or understandings made to induce Tenant to enter into the Lease
have been satisfied.

 

3.                                       This Memorandum shall be binding upon and
inure to the benefit of the parties and their permitted successors and assigns.

 

IN WITNESS WHEREOF, the parties have executed this Memorandum as of the
date first set forth above.

 

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Authorized Representative

  	
   

  	
  Its:

  	
   

  	
   

  
							

 

D-1

 

EXHIBIT “E”

 

RULES AND REGULATIONS

 

The rules and regulations set forth in this Exhibit shall be
and hereby are made a part of the Lease to which they are attached.
Whenever the term “Tenant” is used in these rules and regulations, it
shall be deemed to include Tenant, its employees or agents and any other
persons permitted by Tenant to occupy or enter the Premises. The following rules and
regulations may from time to time be modified by Landlord in the manner
set forth in Paragraph 29 of the Lease.

 

1.                                       Obstruction. The sidewalks, entries, passages, corridors, halls, lobbies, stairways,
elevators and other common facilities of the Building shall be controlled by
Landlord and shall not be obstructed by Tenant or used for any purposes other
than ingress or egress to and from the Premises. Tenant shall not place any
item in any of such locations, whether or not any such item constitutes an
obstruction, without the prior written consent of Landlord. Landlord shall have
the right to remove any obstruction or any such item without notice to Tenant
and at the expense of Tenant. The floors, skylights and windows that reflect or
admit light into any place in said Building shall not be covered or obstructed
by Tenant.

 

2.                                       Ordinary Business Hours. Whenever used in the Lease or in these rules and
regulations, the ordinary business hours of the Building shall be from 8:00 A.M.
to 6:00 P.M. Monday through Friday and 8:00 A.M. to 1:00 P.M.
Saturday of each week, excluding the legal holidays of New Year’s Day, Memorial
Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day, and any
other holidays observed by owners of comparable buildings.

 

3.                                       Deliveries. Tenant shall insure that all deliveries of supplies to the Premises shall
be made only upon the elevator designated by Landlord for deliveries and only
during the ordinary business hours of the Building. If any person delivering
supplies to Tenant damages the elevator or any other part of the Building,
Tenant shall pay to Landlord upon demand the amount required to repair such
damage.

 

4.                                       Moving. Furniture and equipment shall be moved in or out of the Building only
upon the elevator designated by Landlord for deliveries and then only during
such reasonable hours and in such manner as may be prescribed by Landlord.
Landlord shall have the right to approve or disapprove the movers or moving
company employed by Tenant and Tenant shall cause such movers to use only the
loading facilities and elevator designated by Landlord. If Tenant’s movers
damage the elevator or any other part of the Building, Tenant shall pay to
Landlord upon demand the amount required to repair such damage.

 

5.                                       Heavy Articles. No safe or article the weight of which
may, in the reasonable opinion of Landlord, constitute a hazard or damage to
the Building or its equipment, shall be moved into the Premises. Landlord shall
have the right to designate the location of such articles in the Premises.
Safes and other heavy equipment, the weight of which will not constitute a
hazard or damage the Building or its equipment shall be moved into, from or
about the Building only during such hours and in such manner as shall be
reasonably prescribed by Landlord.

 

E-1

 

6.                                       Nuisance. Tenant shall not do or permit anything to be done in the Premises, or
bring or keep anything therein which would in any way constitute a nuisance or
waste, or obstruct or interfere with the rights of other tenants of the
Building, or in any way injure or annoy them, or conflict with the laws
relating to fire, or with any regulations of the fire department or with any
insurance policy upon the Building or any part thereof, or conflict with
any of the rules or ordinances of any governmental authority having
jurisdiction over the Building.

 

7.                                       Building Security. Landlord may restrict access to and
from the Premises and the Building outside of the ordinary business hours of
the Building. Landlord may require identification of persons entering and
leaving the Building during this period and, for this purpose, may issue
Building passes to tenants of the Building.

 

8.                                       Pass Key. The janitor of the Building may at all times keep a pass key to
the Premises, and he and other agents of Landlord shall at all reasonable times
be allowed admittance to the Premises, but access within the Premises shall be
limited by governmental regulations applicable to pharmaceutical companies.

 

9.                                       Locks and Keys for Premises. No additional lock or locks shall be placed
by Tenant on any door in the Building and no existing lock shall be changed
unless the written consent of Landlord shall first have been obtained. A
reasonable number of keys to the Premises and to the toilet rooms, if locked by
Landlord, will be furnished by Landlord, and Tenant shall not have any
duplicate key made. At the termination of this tenancy Tenant shall promptly
return to Landlord all keys to the Building, Premises and toilet rooms.

 

10.                                 Signs. Signs on Tenant’s entrance doors will be provided for Tenant by Landlord,
the cost of the signs to be charged to and paid for by Tenant. No
advertisement, sign or other notice shall be inscribed, painted or affixed on
any part of the outside or inside of the Building, except upon the
interior doors as permitted by Landlord, which advertisement, signs, or other
notices shall be of Building standard order, size and style, and at such places
as shall be designated by Landlord.

 

11.                                 Use of Water Fixtures. Water closets and other water fixtures
shall not be used for any purpose other than that for which the same are
intended, and any damage resulting to the same from misuse on the part of
Tenant shall be paid for by Tenant. No person shall waste water by tying back
or wedging the faucets or in any other manner.

 

12.                                 No Animals, Excessive Noise. No animals shall be allowed in the offices,
halls, corridors and elevators in the Building. No person shall disturb the
tenants of this or adjoining buildings or space by the use of any radio or
musical instrument or by the making of loud or improper noises.

 

13.                                 Bicycles. Bicycles or other vehicles shall not be permitted anywhere inside or
on the sidewalks outside of the Building, except in those areas designated by
Landlord for bicycle parking.

 

14.                                 Trash. Tenant shall not allow anything to be placed on the outside of the Building,
nor shall anything be thrown by Tenant out of the windows or doors, or down the
corridors, elevator shafts, or ventilating ducts or shafts of the Building. All
trash shall be placed in

 

E-2

 

receptacles
provided by Tenant on the Premises or in any receptacles provided by Landlord
for the Building.

 

15.                                 Windows and Entrance Doors. Window shades, blinds or curtains of a uniform Building
standard, color and pattern only shall be used throughout the Building to give uniform color
exposure through exterior windows. Exterior blinds shall remain in the lowered position
at all times to provide uniform exposure from the outside. Tenant entrance
doors should be kept closed at all times in accordance with the fire code.

 

16.                                 Hazardous Operations and Items. Tenant shall not install or operate any steam
or gas engine or boiler, or carry on any hazardous business in the Premises
without Landlord’s prior written consent, which consent may be withheld in
Landlord’s absolute discretion. The use of oil, gas or inflammable liquids for
heating, lighting or any other purpose is expressly prohibited. Explosives or
other articles deemed extra hazardous shall not be brought into the Building.
Landlord acknowledges that Tenant may have controlled substances within
the Premises for use in connection with Tenant’s business and in compliance
with applicable laws.

 

17.                                 Hours for Repairs, Maintenance and
Alterations. Any repairs,
maintenance and alterations required or permitted to be done by Tenant under
the Lease shall be done only during the ordinary business hours of the Building
unless Landlord shall have first consented in writing to such work being done
outside of such times. If Tenant desires to have such work done by Landlord’s
employees on Saturdays, Sundays, holidays or weekdays outside of ordinary business
hours, Tenant shall pay the extra cost of such labor.

 

18.                                 No Defacing of Premises. Except as permitted by Landlord, Tenant
shall not mark upon, cut, drill into, drive nails or screws into, or in any way
deface the doors, walls, ceilings, or floors of the Premises or of the
Building, nor shall any connection be made to the electric wires or electric
fixtures without the consent in writing on each occasion of Landlord or its agents.
Any defacement, damage or injury to the Premises or Building caused by Tenant
shall be paid for by Tenant. Nothing contained in this Paragraph shall prohibit
Tenant from decorating the walls of the Premises with such items as are
normally found in first-class, commercial office buildings, so long as such
items are no heavier than twenty (20) pounds.

 

19.                                 Limit on Equipment. Tenant shall not, without Landlord’s prior
written consent, which consent shall not be unreasonably withheld or delayed,
install or operate any equipment which will consume in conjunction with Tenant’s
other equipment throughout the Premises, an amount of electricity which exceeds
that provided for under the Lease. If Tenant requires any interior wiring such
as for a business machine, intercom, printing equipment or copying equipment,
such wiring shall be done by the electrician of the Building only at Tenant’s expense,
and no outside wiring persons shall be allowed to do work of this kind unless
by the written consent of Landlord or its representatives. If telegraphic or
telephonic service is desired, the wiring for same shall be done as directed by
the electrician of the Building or by some other employee of Landlord who may be
instructed by the superintendent of the Building to supervise same, and no
boring or cutting for wiring shall be done unless approved by Landlord or its representatives,
as stated.

 

E-3

 

20.                                 Solicitation. Landlord reserves the right to restrict,
control or prohibit canvassing, soliciting and peddling within the Building.
Tenant shall not grant any concessions, licenses or permission for the sale or
taking of orders for food or services or merchandise in the Premises, nor
install or permit the installation or use of any machine or equipment for
dispensing goods or foods or beverages in the Building, nor permit the
preparation, serving, distribution or delivery of food or beverages in the
Premises without the approval of Landlord and in compliance with arrangements
prescribed by Landlord. Only persons approved in writing by Landlord shall be permitted
to serve, distribute, or deliver food and beverages within the Building, or to
use the elevators or public areas of the Building for that purpose.

 

21.                                 Doors. Doors for entrance to and exit from the Premises shall be kept closed
at all times, except when in use for entering or exiting the Premises.

 

22.                                 Captions. The caption for each of these rules and regulations is added as
a matter of convenience only and shall be considered of no effect in the
construction of any provision or provisions of these rules and
regulations.

 

23.                                 No Smoking. Landlord shall prohibit smoking in any area other than certain
designated smoking areas in the Building. Landlord shall notify Tenant of such
designated areas from time to time.

 

24.                                 No Use of Balconies. Tenant shall not have the right to use or
have access to the balconies of the Building.

 

E-4

 

EXHIBIT “F”

 

SPECIAL STIPULATIONS

 

Special
Stipulations to Office Lease Agreement, dated February 7,  2006,
by and between 485 PROPERTIES, LLC, a Delaware limited liability company, as “Landlord,”
and FIRST HORIZON PHARMACEUTICAL CORPORATION, a Delaware, corporation as “Tenant.”
In the event of any conflict between the terms and conditions of any of the
following Special Stipulations and the terms and conditions of the main text of
this Lease or of any of the other Exhibits to this Lease, the terms and
conditions of these Special Stipulations shall control. In addition to any
other terms whose definitions are fixed and defined by these Special
Stipulations, the terms used herein with the initial letter capitalized shall
have the same meaning ascribed to them as set forth in the main text of this
Lease or any of the other Exhibits. No inference or implication shall result
from or interpretation be based upon the deletion or omission of words or
material from the form on which this Lease appears or from a draft of this
Lease, the words or material having been deleted or omitted being as though
they were never in such form or draft.

 

1.                                      Renewal Option. Tenant shall have the right to renew the Term
for two (2) additional periods of five (5) years each (the “Renewal
Term”), by giving Landlord prior written notice no more than twelve (12) months
and no less than nine (9) months prior to the otherwise effective
Expiration Date, that Tenant intends to exercise either of such renewal rights,
subject to the following conditions:

 

(a)                                  Tenant shall be in possession of the Premises
and there shall not be an Event of Default by Tenant under any of the terms or
provisions of this Lease at the time such notice is given or at the time of the
commencement of the Renewal Term.

 

(b)                                 Tenant shall occupy the Premises during the
Renewal Term under the same terms and conditions as specified in this Lease,
except, for the first Renewal Term (x) Tenant shall be entitled to receive an
Allowance of Five Dollars ($5.00) per rentable square feet in the Premises and
(y) the Monthly Rental shall be Twenty Seven Dollars and Fifty Cents ($27.50)
with 2.5% escalations every twelve (12) months and for the second Renewal Term (i) Tenant
shall be entitled to receive an Allowance and other market concessions then
offered by Landlord to similarly situated tenants, (ii) the Monthly Rental
for any Renewal Term shall be the then Market Rate, but not less than the
Monthly Rental for the Premises in effect immediately prior to the commencement
of such Renewal Term. In no event shall Tenant be entitled to enter into more
than two (2) Renewal Terms.

 

(c)                                  As used herein, the term “Market Rate” shall
be determined as described in subparagraph (d) below as the amount of base
annual rent per square foot then being charged in comparable first-class office
buildings located in the Central Perimeter area of Atlanta, Georgia for space
comparable to the Premises and taking into consideration all other relevant factors
establishing similarity or dissimilarity between the comparable lease and the
leasing of the Premises to Tenant for the Renewal Term, including without
limitation, escalations (including type, base year and stop), concessions,
length of term, size and location of the Premises, building standard work letter
and/or tenant improvement allowances, amenities

 

F-1

 

offered,
location of building, the cost and provision of parking spaces, and other
generally applicable concessions, allowances, terms and conditions of tenancy.
In determining the Market Rate, the greatest weight shall be accorded to leases
in the Building for comparable space entered into in the twelve (12) months
preceding the date on which the Market Rate is determined.

 

(d)                                 Within thirty (30) days after Landlord
receives the notice of Tenant’s exercise of the renewal option with respect to
any applicable Renewal Term, Landlord shall notify Tenant of the proposed
Market Rate. If Tenant rejects in writing the Market Rate proposed by Landlord
(and Tenant shall be deemed to have accepted the same if Tenant does not object
thereto in a written notice to Landlord given within five (5) business
days following Tenant’s receipt of Landlord’s proposed Market Rate), Landlord
and Tenant shall negotiate in good faith for a period of fifteen (15) days to
reach a mutual agreement on the Market Rate. If the parties are unable to come
to an agreement within such period, Tenant shall have the option, exercisable
by written notice delivered to Landlord within five (5) days after the
expiration of such fifteen (15) day period, to elect to arbitrate such rate.
Tenant shall have the option to specify in such notice its selection of a real
estate appraiser, who shall act on Tenant’s behalf in determining the Market
Rate or elect to allow the then-current Term of this Lease to expire on this
Lease expiration date. Within ten (10) days after Landlord’s receipt of
Tenant’s selection of a real estate appraiser, Landlord, by written notice to
Tenant shall designate a real estate appraiser, who shall act on Landlord’s
behalf in the determination of the Market Rate. Within fifteen (15) days of the
selection of Landlord’s appraiser, the two appraisers shall render a joint
written determination of the Market Rate. If the two appraisers are unable to
agree upon a joint written determination within said fifteen (15) day period,
the two appraisers shall select a third appraiser meeting the qualifications
stated below. Each of the parties shall bear one-half (1/2) of the cost of the
appointment of the third appraiser and of the third appraiser’s fee. If the
three (3) appraisers are unable to agree upon the Market Rate within
fifteen (15) days following the appointment of the third appraiser, then each
appraiser shall separately determine the Market Rate, they shall average the
two (2) closest figures, and within three (3) days after the
expiration of such fifteen (15) day period, the appointed third appraiser shall
notify Landlord and Tenant of such averaged determination of the Market Rate,
which averaged determination shall be binding upon both Landlord and Tenant. In
the event that one of the three appraised Market Rates is equidistant between
the highest and the lowest, then notwithstanding the foregoing sentence, there
shall be no averaging, and the equidistant Market Rate shall be the final
arbitrated rate. In the event that the appraisal process has not been completed
prior to the commencement of the Renewal Term, then upon commencement of the
Renewal Term, and until the appraisal process is completed (the “Interim Period”),
Tenant shall pay Landlord monthly Rent equal to the Rent for the immediately
preceding Lease year, until the increase in the Rent is determined by such
process as provided herein; provided, however, that such payments made during
the Interim Period shall be subject to adjustment based upon the results of
such process. If, as a result of such appraisal process, it is determined that
Tenant has underpaid Rent during the Interim Period, then such underpaid Rent
shall be due from Tenant to Landlord within fifteen (15) days after expiration
of the Interim Period. If, as a result of such appraisal process, it is
determined that Tenant has overpaid Rent during the Interim Period, then such
overpaid Rent shall be credited to Tenant’s next payment(s) of Rent falling due
under this Lease. All appraisers selected in accordance with this subparagraph
shall have at least ten (10) years prior experience in the Central
Perimeter area of metropolitan Atlanta, Georgia commercial leasing market and
shall be

 

F-2

 

members of the American Institute of Real Estate Appraisers or similar
professional organization. If either Landlord or Tenant fails or refuses to
select an appraiser, the other appraiser shall alone determine the Market Rate.
Landlord and Tenant agree that they shall be bound by the determination of
Market Rate pursuant to this subparagraph for the Renewal Term. Landlord shall
bear the fee and expenses of its appraiser and Tenant shall bear the fee and
expenses of its appraiser.

 

(e)                                  In the event Tenant fails timely to notify
Landlord in the manner herein specified, Tenant shall be conclusively deemed to
have waived its right to enter into any Renewal Term.

 

(f)                                    This renewal right shall be subject to review
and approval by Landlord, in its reasonable discretion, of Tenant’s credit and
financial condition at the time of such renewal.

 

2.                                      Right of First Offer. Subject to the rights of existing tenants
which occupied space on the 16th floor as of January 1, 2006,
Landlord hereby grants to Tenant a continuous right of first offer to lease
available space on the sixteenth (16th) floor of the Building (the “ROFO
Space”), which right shall be exercised by Tenant or its parent, subsidiary, or
affiliate, at either (i) by written notice given to Landlord upon Tenant’s
decision to lease such ROFO Space or (ii) by written notice given to
Landlord within ten (10) business days after Landlord provides written
notice to Tenant that Landlord is negotiating to lease the ROFO Space to
another occupant (Tenant’s failure to provide such notice by the expiration of
such ten (10) business day period being deemed Tenant’s waiver of any
right to lease the ROFO Space), subject to the following conditions:

 

(a)                                  Tenant, or its parent, subsidiary, or
affiliate, shall be in possession of the Premises and there shall not be an
Event of Default by Tenant under any of the terms or provisions of this Lease
at the time Landlord provides such notice to Tenant.

 

(b)                                 Tenant, or its parent, subsidiary, or
affiliate, shall occupy the Premises (including but not limited to the ROFO
Space) under the same terms and conditions as specified in this Lease,
including the Allowance and Design Allowance, except that if Tenant exercises
the right of first offer after the eighteenth (18th) month of the
Term, then the rental rate, allowance and concessions for the ROFO Space will
be the Market Rate, which shall be determined as described in Sections l(c) and
l(d) of Exhibit F of this Lease.

 

(c)                                  The term of this Lease for ROFO Space shall
be conterminous with the Term for the remainder of the Premises, provided
however, that if less than thirty-six (36) months are remaining in the Term for
the remainder of the Premises, then the Term with respect to the entire
Premises (including the ROFO space) shall be extended to no less than
thirty-six (36) months from the date Tenant occupies the ROFO Space.

 

3.                                      Expansion Option. In addition to Tenant’s rights under
Paragraph 2 above, Landlord hereby grants to Tenant an exclusive right to lease
up to approximately 25,000 square feet of space on the Sixteenth (16th)
floor of the Building, as shown on Exhibit “A-l” (the “Expansion Space”),
subject to the following conditions:

 

F-3

 

(a)                                  Such expansion option will exist only for the
first eighteen (18) months of the initial Term of this Lease.

 

(b)                                 Tenant, or its parent, subsidiary, or
affiliate, shall be in possession of the Premises and there shall not be an Event
of Default by Tenant under any of the terms or provisions of this Lease at the
time Tenant provides such notice to Landlord.

 

(c)                                  Tenant, or its parent, subsidiary, or
affiliate, shall occupy the Expansion Space under the same terms and provisions
of this Lease, except that Tenant’s obligation to pay Rent with respect to the
Expansion Space shall commence on the earliest to occur of (i) five (5) months
after the date the Expansion Space is Substantially Complete or the date the
Expansion Space would have been Substantially Complete in the absence of Tenant
Delay, (ii) four (4) months after the date Tenant occupies the
Expansion Space or any portion thereof for the purpose of conducting business
therefrom; or (iii) the twenty second (22nd) month following
the Commencement Date.

 

4.                                      Termination Option. Tenant, or its parent, subsidiary, or
affiliate, shall have the right to terminate this Lease effective as of any
date on or after the fifth (5th) anniversary of the Commencement
Date, subject to the following terms and conditions:

 

(a)                                  In order for Tenant to exercise such
termination right there shall not be an Event of Default by Tenant under any of
the terms or provisions of this Lease at the time such notice is given or upon
the effective date of termination.

 

(b)                                 In order for Tenant to exercise such
termination right, Tenant must provide written notice of such exercise to
Landlord no later than nine (9) months prior to the effective date of
termination.

 

(c)                                  One (1) month prior to the effective
date of termination of this Lease pursuant to this Special Stipulation
Paragraph 4, Tenant shall pay to Landlord an amount equal to the sum of the
unamortized portion of the Allowance, all other concessions, fees and
allowances (including, without limitation, the Additional Allowance and the
Design Allowance) and any leasing commissions paid by Landlord with respect to
this Lease, calculated using an eight (8) year amortization schedule.

 

(d)                                 Tenant acknowledges that Landlord would not
agree to grant Tenant this termination right unless Tenant agrees to pay
Landlord the applicable amount set forth in paragraph (c) above and that
such amount represents freely bargained for consideration for such termination.
Landlord and Tenant acknowledge and agree that the payment of such applicable amount
is intended to compensate Landlord for lost rentals, the unamortized balance of
free rent, tenant improvements, leasing commissions, any other concessions
granted to Tenant and other losses incurred by Landlord on account of any such
termination. In no event, however, shall Landlord be obligated to prove the
actual amount of such lost rentals, unamortized balance or other losses.

 

F-4

 

(e)                                  On or prior to the effective date of
termination, Tenant shall surrender possession of the Premises to Landlord in
accordance with the provisions of this Lease. Upon termination, Landlord and
Tenant will be relieved of their obligations under this Lease, except for those
accruing prior to the effective date of such termination.

 

5.                                      Concourse Athletic Club. Upon the Commencement Date, Landlord shall
provide Tenant with an allowance of Twenty-five Thousand Dollars ($25,000) to
be applied towards initiation fees and membership dues at the Concourse Athletic
Club.

 

6.                                      Signage. Tenant, at Tenant’s sole cost and expense,
shall have the nonexclusive right to have Landlord install and maintain Tenant’s
tradename (“Tradename”) on the existing “monument” sign for the Building as it
exists on the date of this Lease (the “Monument Sign”), subject to the
following terms and conditions:

 

a.                                       The Monument Sign may, at Landlord’s option,
include the names or logos, or both, of other tenants in the Building from time
to time.

 

b.                                      Landlord reserves the right to review and approve
the location, color, size (which will be consistent with other two-floor
tenants), configuration, materials, workmanship and design of Tenant’s
Tradename.

 

c.                                       No assignee or subtenant of Tenant shall
succeed to Tenant’s right to maintain its Tradename on the Monument Sign.

 

d.                                      If Tenant ever occupies less than 15,000
rentable square feet in the Building, then Landlord shall have the option, at
Tenant’s expense, to remove Tenant’s Tradename from the Monument Sign. In any
event, Tenant’s rights under this Special Stipulation shall cease and terminate
immediately upon the expiration or any earlier termination of this Lease.

 

e.                                       All costs, if any, for which Tenant is
responsible under this Special Stipulation shall be paid by Tenant to Landlord,
in full, within thirty (30) days after Tenant’s receipt of an invoice from
Landlord.

 

Tenant
shall also be entitled, at no cost, to have the name of Tenant’s business,
related entities, assignees, sublesses, senior managers and employees listed in
the building directory located in the lobby of the Building.

 

7.                                      Satellite Dish. Landlord hereby grants to Tenant the right to
install, maintain and operate a satellite dish and related equipment (the “Equipment”)
at its sole cost and expense on the roof of the Building subject to the
following terms and conditions:

 

(a)                                  The location of the Equipment shall be
approved by Landlord prior to Tenant’s installation of the Equipment. Tenant
shall deliver to Landlord Tenant’s plans and specifications for the
installation of the Equipment and the surrounding screening for review and
approval by Landlord’s engineer not less than thirty (30) days prior to
commencing installation of the Equipment. Tenant shall reimburse Landlord for
all costs and expenses incurred by

 

F-5

 

Landlord
in connection with Landlord or its designated agent’s review and approval of
such plans and specifications as well as ensuring Tenant’s compliance with this
provision.

 

(b)                                 Tenant shall have the right to access and use
a portion of the Building’s roof for the installation of the Equipment at no
additional charge to Tenant. Tenant shall install the Equipment in an
aesthetically pleasing manner and exercise all reasonable steps to shield or screen
the Equipment from public view. Tenant shall fence or screen the Equipment so
as to minimize any risks to ensure that the Equipment does not create a
nuisance. Tenant shall at its cost, be entitled to run riser cable to the roof
of the Building and Landlord will provide adequate vertical space therefor at
no charge. Tenant shall be responsible for any required roof reinforcement and
for ensuring the integrity of the Building’s roof and warranty thereon. Tenant shall
have 24 hour access to the roof and all associated areas where Tenant’s cabling
accesses between the Premises and the roof, subject to Landlord’s reasonable rules and
regulations.

 

(c)                                  Tenant shall maintain and operate the
Equipment in compliance with all applicable laws, rules, regulations and
ordinances at its sole cost and expense.

 

(d)                                 At Landlord’s option, Landlord shall perform all
roof penetrations and modifications necessary for the installation, maintenance
or removal of Tenant’s Equipment. Tenant will reimburse Landlord for all
reasonable costs and expenses incurred by Landlord in connection with such roof
penetrations and modifications.

 

(e)                                  Tenant hereby agrees to indemnify and hold
Landlord, its agents, employees, contractors and representatives, harmless from
and against any and all cost, claims, damages (including, but not limited to,
any damage to the Building, the roof or Landlord’s property), causes of action
and liability which may arise by reason of any occurrence attributable to
or arising out of Tenant’s installation, maintenance, repair, operation or
removal of any of the Equipment, including without limitation, any claim or
cause of action for injury to or death of any person or damage to any property
arising therefrom and Tenant agrees to defend any claim or demand against
Landlord, its agents or employees arising out of any such occurrence. Tenant shall,
upon thirty (30) days prior written notice from Landlord, reimburse Landlord
for all costs and expenses incurred by Landlord as a result of Tenant’s
operation of the Equipment, including damages to the Building and the
furnishing of electric power for the operation of the Equipment.

 

(f)                                    Upon the expiration or earlier termination of
this Lease, Tenant shall, at its sole expense, promptly remove the Equipment
and repair all damage to the Building caused thereby.

 

(g)                                 Tenant’s Equipment shall not hinder or
unreasonably interfere with any other tenants’ or licensees’ installation,
operation and maintenance or repair of antennae or satellite equipment.

 

(h)                                 Landlord reserves the right to enter into a
contract with a third-party manager for the leasing and management of the roof
of the Building. Tenant shall be responsible for complying with all reasonable rules and
regulations established by such manager, provided

 

F-6

 

however, that Tenant shall in no event be subject to any additional
costs or limitation of rights as a result thereof.

 

8.                                      Auxiliary Air. Landlord hereby grants to Tenant the right to
install, maintain and operate package air conditioning units and related
equipment (the “Auxiliary AC”) at its sole cost and expense in the Premises
subject to the following terms and conditions:

 

(a)                                  The location of the Auxiliary AC shall be
approved by Landlord prior to Tenant’s installation of the Auxiliary AC. Tenant
shall deliver to Landlord Tenant’s plans and specifications for the
installation of the Auxiliary AC and related equipment for review and approval
by Landlord’s engineer not less than thirty (30) days prior to commencing
installation of the Auxiliary AC. Tenant shall reimburse Landlord for all costs
and expenses incurred by Landlord in connection with Landlord or its designated
agent’s review and approval of such plans and specifications as well as
ensuring Tenant’s compliance with this provision.

 

(b)                                 Tenant shall maintain and operate the
Auxiliary AC in compliance with all applicable laws, rules, regulations and
ordinances at its sole cost and expense.

 

(c)                                  Tenant hereby agrees to indemnify and hold
Landlord, its agents, employees, contractors and representatives, harmless from
and against any and all cost, claims, damages (including, but not limited to,
any damage to the Building, the Premises or Landlord’s property), causes of
action and liability which may arise by reason of any occurrence attributable
to or arising out of Tenant’s installation, maintenance, repair, operation or
removal of any of the Auxiliary AC, including without limitation, any claim or
cause of action for injury to or death of any person or damage to any property
arising therefrom and Tenant agrees to defend any claim or demand against
Landlord, its agents or employees arising out of any such occurrence. Tenant shall,
upon thirty (30) days prior written notice from Landlord, reimburse Landlord
for all costs and expenses incurred by Landlord as a result of Tenant’s
operation of the Auxiliary AC, including damages to the Building and the
furnishing of electric power for the operation of the Auxiliary AC.

 

(f)                                    Upon the expiration or earlier termination of
this Lease, Tenant shall, at its sole expense, promptly remove the Auxiliary AC
and repair all damage to the Building and Premises caused thereby.

 

(g)                                 Tenant’s Auxiliary AC shall not hinder or
unreasonably interfere with any other tenants’ or licensees’ enjoyment of the
Building.

 

9.                                      Landlord’s Representations
and Warranties. Landlord
hereby represents and warrant to Tenant as follows:

 

(a)                                  Due Authorization and Execution. This Lease is duly authorized and shall be
binding upon Landlord.

 

F-7

 

(b)                                 Due Organization. Landlord is duly organized, validly
existing and in good standing under the laws of the State of Delaware and is
duly authorized and qualified to do all things required of Landlord under this
Lease within the State in which the Property is located.

 

(c)                                  No Breach of Other Agreements. This Lease does not violate the terms of any
other agreement to which Landlord is a party.

 

(d)                                 Title. Landlord owns fee simple title to the Property.

 

10.                                 Tenant’s Representations and
Warranties. Tenant hereby
represents and warrant to Landlord as follows:

 

(a)                                  Due Authorization and Execution. This Lease is duly authorized and shall be
binding upon Tenant.

 

(b)                                 Due Organization. Tenant is duly organized, validly existing
and in good standing under the laws of the State of Delaware and is duly authorized and qualified to do
all things required of Tenant under this Lease within the State in which the
Property is located.

 

(c)                                  No Breach of Other Agreements. This Lease does not violate the terms of any
other agreement to which Tenant is a party.

 

11.                                 Storage. To the extent available, Tenant shall be
entitled to rent storage space in the basement of the building currently known
as Corporate Center Four at an annual rate of $12.00 per square foot of useable
area.

 

F-8

 

EXHIBIT “G”

 

CLEANING SPECIFICATIONS

 

Lobby and Corridors - Daily
Service

 

1.               Sweep and mop lobby entrance vestibule floors
nightly and machine scrub floors as necessary.

 

2.               Clean and sweep public elevator lobby
corridor flooring nightly. (Machine scrub floors as necessary.) Carpeting shall
be vacuumed and spots removed nightly and shampooed as necessary.

 

3.               Wipe down, with a soft cloth, all metal
surfaces in the lobby and building as required.

 

4.               Dust all lobby and public corridor walls
nightly and wash as required.

 

5.               Clean entrances and lobby doors at least once
per day. Clean all elevator, stairway, utility and office doors as necessary to
remove dirt and finger marks.

 

6.               Clean and sanitize all public telephone
areas. (Neatly arrange and replace, as needed all phone books.)

 

7.               Screen all exterior sand urns of cigarette
butts and debris in the canopy area. Clean container and add sand as needed.
(CONTRACTOR supplies sand.)

 

8.               Empty all trash receptacles, clean container
with clean, damp cloth, and replace plastic liner. (MANAGER may supply
liners.)

 

9.               Remove all debris from landscaped pots and
planters. (Report any thefts, broken pots or missing plants.)

 

10.         Dust and clean all horizontal surfaces less than seven feet.

 

11.         Clean and remove smudges and marks on walls and wall coverings.

 

12.         Clean, polish and straighten all furniture as needed.

 

13.         Wipe clean all directory boards with clean, soft cloth.

 

14.         Wipe clean all fire extinguisher cabinets and glass. (Report broken
glass or missing extinguishers).

 

15.         Wipe clean all elevator doors, jambs, call plates, and hall lanterns.

 

16.         Dust all lobby and corridor signage.

 

17.         Report any maintenance issues. For example:  lights burned out, stopped up toilets, and cracked
flooring.

 

18.         Secure all doors upon completion of work assignments. 

 

Lobbies and Corridors -
Weekly Service

 

1.               Clean and polish all entry metal and sills.

 

H-1

 

2.               Dust and clean or polish all baseboards.

 

3.               Spot clean all carpeted areas.

 

4.               Dust all ledges and exit signs.

 

5.               Dust all walls above seven feet.

 

6.               Maintain lobby floors.

 

7.               Mop stone, ceramic tile, marble, terrazzo
flooring (including exterior surfaces under the canopy).

 

8.               Clean resilient flooring.

 

Lobbies and Corridors -
Monthly Service

 

1.               Clean all ceiling vents and grills.

 

2.               Dust high ceiling corners and entryways.

 

3.               Dust and clean light fixtures and covers
(interior and exterior).

 

4.               Clean and treat all wood paneling and
furniture as requested.

 

5.               Strip, reseal or re-wax common area floors as
necessary.

 

6.               Shampoo carpet areas as necessary.

 

7.               Clean, detail and sanitize public phones and
enclosures.

 

8.               Dust and clean all fire lobby doors inside
and out.

 

9.               Polish door floor plates. 

 

Offices - Daily Service

 

1.               Remove hand spots or smudges from entry
doors.

 

2.               Using a dustless mop, damp mop all
non-carpeted areas.

 

3.               Vacuum and spot clean carpets in all traffic
areas, removing staples and other debris.

 

4.               Properly position furniture, books and
magazines in reception areas.

 

5.               Properly position furniture in offices and
conference rooms.

 

6.               Blackboards will be erased/chalk boards
cleaned upon request only.

 

7.               Remove fingerprints and smudges from all
walls.

 

8.               Spot clean all partition glass and mirrors.

 

9.               Remove all fingerprints and smudges from
light switch covers, electrical outlet cover plates and doorknob handles.

 

10.         Dust all horizontal surfaces less than seven feet, furniture, and
equipment. DO NOT dust desks, conference tables or counters that are cluttered
with paperwork.

 

I1.           Dust and replace all desk ornaments, phones and machines in their
original position.

 

F-2

 

12.         Clean furniture fabric with a whiskbroom to sweep off any dust,
paper bits, and erasures as needed. (Remove all staples)

 

13.         Empty all ashtrays in smoking lounges and wipe clean.

 

14.         Empty all wastebaskets and carry trash to designated areas for removal;
replace plastic liners.

 

15.         Clean and wash all lunchroom tabletops, counters, sinks, cabinets,
refrigerator, and stove (exterior only) surfaces. (Report any insect problems)

 

16.         Report all maintenance issues.

 

17.         Perform additional services requested by tenant (excluding
extensive carpet cleaning, appliance cleaning, dishwashing, and other similar
services that may require invoicing to the tenant).

 

18.         Before leaving any suite, lock all entrance doors and interior doors as
requested.

 

19.         Clean all water fountains. 

 

Offices - Weekly Service

 

1.               Damp wipe all interior doors with a treated
cloth.

 

2.               Detail vacuum entire carpet areas; remove
staples and other debris.

 

3.               Polish all desktops that are cleared of
paperwork.

 

4.               Dust all ledges, files, baseboards, and sills
under seven feet.

 

5.               Vacuum all furniture or wipe vinyl furniture
clean.

 

6.               Dust all lower parts of furniture.

 

7.               Detail and clean all kitchens or wet bar
areas.

 

8.               Empty large recycling bins from offices into
separate container to be disposed of into specially designated recycling
dumpsters.

 

Offices - Monthly Service

 

1.               Completely clean all partitions and doors,
doorjambs, door floor plates, glass and mirrors from floor to ceiling.

 

2.               Dust all ledges, wall moldings, shelves, etc.
over seven feet.

 

3.               Dust windowsills and ledges.

 

4.               Dust clean or vacuum all drapes and blinds.

 

5.               Brush down and clean all vents and grills.

 

6.               Scrub and wax all tile floors.

 

7.               Sweep stairwells and dust handrails.

 

8.               Detail all desks and office furniture.

 

9.               Dust and clean all light fixtures and covers.

 

10.         Detail and clean all kitchens, wet bars or lunch room areas.

 

F-3

 

11.         Clean all baseboards.

 

12.         Detail and vacuum chairs and upholstered furniture. 

 

Restrooms - Daily Service

 

1.               Dust and clean restroom signage and
doors.

 

2.               Vacuum all restroom vestibules and
remove spots.

 

3.               Wet mop and disinfect tile/marble floor,
paying particular attention to areas under urinals and toilet bowls.

 

4.               Clean alkaline deposits and soap spills from
floor tile grout.

 

5.               Wash and disinfect all basins, urinals, and
toilet bowls.

 

6.               Clean underside rims of urinals and toilet
bowls.

 

7.               Wash both sides of toilet seats with soap and
water and disinfect.

 

8.               Empty, clean, sanitize, and polish all paper
dispensers, replacing liners nightly.

 

9.               Clean and polish all mirrors.

 

10.         Dust ledges and base boards.

 

11.         Damp wipe, polish, and shine all chrome, metal fixtures, hand plates,
kick plates, utility covers, plumbing, clean-out covers, and doorknobs.

 

12.         Spot clean with disinfectant all partitions and tile walls. (Report any
graffiti and remove if possible)

 

13.         Fill all toilet latrines, soap, sanitary napkin, and towel dispensers
as necessary.

 

14.         Report all burned out lights, leaking faucets, running plumbing, or
other maintenance needs.

 

15.         Janitor carts will not be
brought into restroom areas or used to prop open doors.

 

16.         Restroom doors will be propped open with a rubber stop, and a sign
indicating, “Restroom Closed for Cleaning”, will be placed outside.

 

17.         Empty all restroom trash, including sanitary disposal. Replace
sanitary disposal liner. 

 

Restrooms - Semi-Weekly
(twice per week)

 

1.     Pour clean water down floor drains to prevent sewer gas from
escaping. 

 

Restrooms - Weekly Service

 

1.               Wash down all walls.

 

2.               Wash all waste containers and disinfect.

 

3.               Clean and polish all doors, doorplates, and
hardware. 

 

Restrooms - Monthly Service

 

1.               Wipe clean all ceilings, lights, and
fixtures.

 

2.               Machine scrub tile floors.

 

F-4

 

3.               Shampoo, as needed, and clean vestibule
carpet.

 

4.               Detail all toilet compartments and fixtures.

 

5.               Brush and clean all grills and vents. 

 

Elevators - Daily Service

 

1.               Vacuum and clean all spots and stains from
carpet.

 

2.               Dust and clean baseboards.

 

3.               Dust and wipe with clean soft cloth all
metal. (Do not use abrasives).

 

4.               Remove all fingerprints from doors and walls
(interior and exterior).

 

5.               Dust and clean elevator ceilings and lights.

 

6.               Remove gum, stains or debris from ceilings,
handrails and elevator tracks.

 

7.               Dust, disinfect and clean emergency phone and
security compartments.

 

8.               Clean all call buttons, call plates, and
signage.

 

9.               Report any burned-out lights or malfunctions
of elevator.

 

10.         Clean elevator tracks. 

 

Elevators - Weekly Service

 

1.               Detail call buttons and call plates.

 

2.               Disinfect emergency phones.

 

3.               Polish brass elevator tracks. 

 

Stairwells - Daily Service

 

1.               Police entire stairwell, removing all trash,
cigarette butts, etc.

 

2.               Report any exit signs that are burned out.

 

3.               Report any lights burned-out. 

 

Stairwells - Bi-Weekly
Service

 

1.               Sweep down all stairs and landings.

 

2.               Dust all handrails, banisters, and ledges.

 

3.               Clean all walls of fingerprints and smudge
marks, etc.

 

4.               Dust and clean all stairwell signage.

 

5.               Dust and clean all emergency phones. 

 

Stairwells - Monthly Service

 

1.               Wipe clean all stairwell doors and doorjambs.

 

2.               Wet mop or vacuum all stairs and landings, as
required. (Clean base boards if necessary)

 

F-5

 

3.               Dust and clean all lights and fixtures.

 

4.               Dust and clean all emergency fire equipment
and plumbing.

 

5.               Wipe clean all handrails.

 

F-6

 

Exhibit “H”

 

Concourse V
— Building Standards

April 2005

 

	
  Corridor Partition

  	
   

  	
  3-5/8” metal stud (24”o.c.),
  1/2” gwb (Type ‘C’) each side with 1-1/2” fire safing insulation (floor to
  underside of structure above)

  
	
   

  	
   

  	
   

  
	
  Demising Partition

  	
   

  	
  3-5/8” metal stud (24”o.c),
  1/2” gwb (Type ‘C’) each side with 1-1/2” fire safing insulation (floor to
  underside of structure above)

  
	
   

  	
   

  	
   

  
	
  Interior Partition

  	
   

  	
  3-5/8” metal stud (24”o.c),
  1/2” gwb each side, (floor to underside of suspended ceiling or floor
  to underside of structure above)

  
	
   

  	
   

  	
   

  
	
  Tenant Entry Single Door

  	
   

  	
  3’-0” x 8’-l 0” x 1-3/4”
  solid core, Mahogany veneer

  4 hinges, 1 lockset, 1 closer, 1 doorstop

  
	
   

  	
   

  	
   

  
	
  Tenant Entry Double Door

  	
   

  	
  3’-0” x 8’-10” x 1-3/4”
  solid core, Mahogany veneer

  6 hinges, 1 lockset, 2 closers

  
	
   

  	
   

  	
   

  
	
  Tenant Interior Door

  	
   

  	
  3’-0” x 8’-10” x 1-3/4”
  solid core, Mahogany veneer

  3 hinges, 1 lockset, 1 doorstop

  
	
   

  	
   

  	
   

  
	
  Door Frame

  	
   

  	
  Hollow metal frame,
  painted

  
	
   

  	
   

  	
   

  
	
  Hardware

  	
   

  	
  Lever — polished brass

  
	
   

  	
   

  	
   

  
	
  Ceiling Height

  	
   

  	
  9’-0” in Tenant spaces
  and Common Corridors

  
	
   

  	
   

  	
   

  
	
  Ceiling Grid

  	
   

  	
  2x2 suspended grid
  15/16” wide

  
	
   

  	
   

  	
   

  
	
  Ceiling Tile

  	
   

  	
  2x2 tiles — Armstrong “Cirrus”
  584, tegular edge         Contact:
  Armstrong (Jodi Teeter) 1.888.234.5464 x 8082

  
	
   

  	
   

  	
   

  
	
  Fire Extinguisher

  	
   

  	
  Woll Hung: Cosmic 10E
  multipurpose dry chemical extinguisher

  Cabinet: JL Industries #1012521, Ambassador steel cabinet with ADAC option

  
	
   

  	
   

  	
   

  
	
  Exterior Window Blinds

  	
   

  	
  Charcoal gray
  horizontal metal mini-blinds

  
	
   

  	
   

  	
   

  
	
  Fluorescent Fixtures

  	
   

  	
  2x2 - 9 cell, 3 lamp
  parabolic

  2x4 - 18 cell, 3 lamp parabolic — Lithonia Lighting 2PM3N G A
  3 32 18 LD 277 GEB

  
	
   

  	
   

  	
   

  
	
  Down Lights

  	
   

  	
  Lightolier #1102 PI
  frame in kit with #1151 specualr clear Alzak reflector; 150W R40 lamp

  
	
   

  	
   

  	
   

  
	
  Exit Signs — Common Areas

  	
   

  	
  Lithonia Lighting LRP
  series, Precise Collection, brushed oluminum housing, double face, green on clear
  acrylic panel, LED edge lit exit light, dual voltage 120/277 V, with
  directional arrow(s) as required for specific ceiling location.

  
	
   

  	
   

  	
   

  
	
  Exit Signs — Tenant Spaces

  	
   

  	
  Lithonia Lighting Die
  Cast Aluminum Exit with LED lamps, brushed aluminum housing, double face,
  with green panel color, dual voltage 120/277 V, with directional arrow(s) as
  required for specific ceiling location.

  

 

 

	
  Coverplates &
  Electrical Devices

  	
   

  	
  TBD

  
	
   

  	
   

  	
   

  
	
  HVAC

  	
   

  	
  2x2 supply &
  return air diffusers

  
	
   

  	
   

  	
   

  
	
  Elevator
  Lobby Limestone Tile

  	
   

  	
  Tiles: 12x12,
  color: Pewter Fossil, finish: polished.

  Grout: Hydromet, standard, color: Antique White #370

  Edge Strip: Aluminum #CTC38.              Contact
  Bryan Parker @ Spectra.

  
	
   

  	
   

  	
   

  
	
  Elevator
  Lobby Inset Carpet

  	
   

  	
  Manufacturer:-.
  Bolyu; Style: Vega; Color: VGA73 Holm Oak

  
	
   

  	
   

  	
   

  
	
  Corridor
  Carpet

  	
   

  	
  Manufacturer: Show
  Contact; Style: Shimmer Ultraloc Pattern #5A017; Color: Natural Tonic #17755

  
	
   

  	
   

  	
   

  
	
  Elevator
  Lobby & Corridor Rubber Base

  	
   

  	
  Manufacturer:
  Roppe; Style: 4” continuous cove base; Color: Camel #191

  
	
   

  	
   

  	
   

  
	
  Elevator
  Lobby & Corridor Fabric Wallcovering

  	
   

  	
  Manufacturer:
  Luna Textiles; Style: Calligraph; Color: Stone #HCL-156

  
	
   

  	
   

  	
   

  
	
  Elevator
  Lobby & Corridor Paint

  	
   

  	
  Manufacturer:
  ICI; Style: (2) coats eggshell; Color: 20YY 49/071-537

  For use on all GWB soffits and fascias (not light coves)Exhibit 10.35

 

FIRST HORIZON
PHARMACEUTICAL CORPORATION

 

 

ACCELERATED VESTING PLAN

 

(also functioning as a Summary Plan Description)

 

 

Effective:
January 24, 2006

 

 

FIRST
HORIZON PHARMACEUTICAL CORPORATION

 

ACCELERATED
VESTING PLAN

 

Plan Document and
Summary Plan Description

 

The Board of Directors of First Horizon Pharmaceutical
Corporation (the “Company”)
has determined that it is in the best interest of the Company to adopt this Accelerated
Vesting Plan (the “Plan”) in
order to attract and to retain the qualified personnel needed to assist in the
Company’s business.

 

This document is the Plan’s plan document, and also
functions as its summary plan description. This Plan will control in case of
conflict with any other document except as provided in Section 2.4. Throughout
this Plan, the term “Sponsor” is
used when the Company is acting in its non-fiduciary capacity as Plan sponsor
and settlor. The term “Plan Administrator”
is used when the Company is acting in the limited capacity of interpreting the
Plan and determining eligibility for benefits (see Section 8 below for
detailed information).

 

The Plan became effective on January     ,
2006, when it received approval of the Company’s Board of Directors. Even if
the Plan expires or is terminated, the Sponsor will thereafter honor any vested
but unpaid benefits under the Plan (subject to Section 8 below). References
to Sponsor, the Company, and their affiliates also refer to any successor to
their interests.

 

1.             Plan
Eligibility. Participants in the Plan as of January     ,
2006 (the “Participant Date”) are listed
on Exhibit A (each a “Participant”)
and will be eligible for certain severance benefits described in Section 2.
Any employee hired after the Participant Date will only be a Participant if
approved by the Compensation Committee of the Company’s Board of Directors (the
“Compensation Committee”). The
Compensation Committee of the Company’s Board of Directors shall have the
absolute discretion and authority to determine the Participants.

 

2.             Severance
Benefits

 

2.1.         Amount
and Conditions

 

A Participant who experiences
a Triggering Event (defined below) and executes any agreement that the Sponsor
may, in its discretion, require pursuant to Section 2.3, will become
vested in the right to receive the following “Severance
Benefit”:

 

(a)  If the
Triggering Event is a Change in Control, such Participant shall become 100%
vested in any stock option, restricted stock, or other stock-based award
received from the Company or its affiliates.

 

(b)  If the
Triggering Event is other than a Change in Control, such Participant shall
receive credit for one year of additional vesting for purposes of determining
vested interest in any stock option, restricted stock, or other stock-based
award that the Participant has received from the Company or its affiliates,
except as Participant’s employment agreement with the Company, if any, may provide
for greater vesting benefits.

 

If a Participant’s employment
with the Company is terminated for any reason other than a Triggering Event,
Participant will not be eligible for any benefits under this Plan.

 

2.2.         Definitions

 

2.2.1.      “Triggering Event” means any of
the following:

 

 

(a)           Participant’s
death;

 

(b)           the
Company’s termination of Participant’s employment with or service to the Company
without Cause;

 

(c)           the
occurrence of a Change in Control; and

 

(d)           the
Participant’s termination of Participant’s employment with or service to the
Company for Good Reason.

 

2.2.2.      “Cause” means that:  (a) Participant shall have
been convicted of, or shall have pleaded guilty or nolo contendere to, any
felony or a crime involving dishonesty, fraud or moral turpitude; (b) Participant
shall have repeatedly refused to follow the lawful direction of the Company’s
Board of Directors or supervising officers; (c) Participant shall have engaged
in acts of fraud, embezzlement, theft, misappropriation of funds, breach of
fiduciary duty or other act of dishonesty against the Company; (d) Participant
shall have been grossly negligent or shall have engaged in willful misconduct
in the discharge of Participant’s duties and/or responsibilities.

 

2.2.3.      “Change in Control” shall be deemed to have occurred
upon the following:

 

(a)           the
acquisition (other than by a direct purchase of shares from the Company or
pursuant to any action or transaction or series of related actions or
transactions approved in advance by the Board) by any “person,” including a “syndication”
or “group,” as those terms are used in Section 13(d)(3) or 14(d)(2) of
the Exchange Act, of securities representing 20% or more of the combined voting
power of the Company’s then outstanding voting securities, which is any
security that ordinarily possesses the power to vote in the election of the
board of directors of a corporation without the happening of any precondition
or contingency;

 

(b)           the
Company is merged or consolidated with another corporation and immediately
after giving effect to the merger or consolidation less than 80% of the
outstanding voting securities of the surviving or resulting entity are then
beneficially owned in the aggregate by (x) the shareholders of the Company
immediately prior to such merger or consolidation, or (y) if a record date has
been set to determine the shareholders of the Company entitled to vote on such
merger or consolidation, the shareholders of the Company as of such record
date;

 

(c)           if
at any time during a calendar year a majority of the directors of the Company
are not persons who were directors at the beginning of the calendar year; or

 

(d)           the
Company transfers substantially all of its assets to another corporation which
is less than 80% owned by the Company.

 

Notwithstanding the foregoing, a “Change in Control”
shall not mean any acquisition by any “person,” including a “syndication” or “group,”
as those terms are used in Section 13(d)(3) or Section 14(d)(2) of
the Exchange Act, of securities representing 20% or more of the combined voting
power of the Company’s then outstanding voting securities with respect to any
person who owns such outstanding voting securities at the time of the
effectiveness of this Plan, provided such person does not thereafter acquire
any additional voting securities that in the aggregate exceed more than 2% of
the combined voting power of the Company’s then outstanding voting securities.

 

2

 

2.2.4.      “Good
Reason” means the occurrence of any one or more of the following events
which continues uncured for a period not less than thirty (30) days following
written notice given by the Participant to the Company within fifteen (15) days
following the occurrence of such event:

 

(a)           any
material breach of Participant’s employment agreement, if any, with the
Company;

 

(b)           any
failure to continue the Participant as an executive officer of the Company provided
that Participant is or becomes an executive officer;

 

(c)           any
Company requirement that Participant performs his services to the Company
primarily at a location outside of metropolitan Atlanta, Georgia; or

 

(d)           the
reduction of Participant’s salary below the amount established in Participant’s
employment agreement, if any.

 

2.3.         Agreements
Precedent to Collecting Benefits. As a condition precedent to the vesting of
a Participant’s right to collect any benefits pursuant to this Plan, the
Participant must execute all of the following agreements (in a form satisfactory
to the Sponsor, subject to the Sponsor’s sole and absolute discretion to waive
the execution of any agreement):

 

2.3.1.      a
general release of any and all past, present, or future claims (whether or not
such claims relate to the Plan) that the Participant may have against the
Company, its subsidiaries and affiliates, and their officers, directors,
employees and agents, and a covenant not to bring any action in respect of any
claim so released;

 

2.3.2.      an
agreement not to make disparaging comments (whether orally or in writing)
regarding the Company or its subsidiaries and affiliates, its officers and
employees, its products and services, or any other aspect of the Company’s
business either during or following termination of your employment with the
Company; and

 

2.3.3.      an
agreement that the Participant will not, without the prior written consent of
the Company, disclose to any entity or person any information which is treated
as confidential by the Company (“Confidential Information”),
and is not generally known or available to the public, provided, that you may make
disclosures of such Confidential Information to the extent required by law or
legal process. The term “Confidential Information” includes:

 

(a)           information
regarding the business methods, business policies, procedures, techniques,
business or strategic plans, trade secrets, pricing policies, or other
processes of or developed by the Company;

 

(b)           any
names and addresses of customers or clients, and any data on or relating to
past, present or prospective customers or clients;

 

(c)           formulae,
inventions, research or development projects or results, or other knowledge
developed by the Company; and

 

(d)           any
other confidential information relating to or dealing with the business
operations or activities of the Company; made known to you or learned or
acquired by you while in the employ of the Company, which is not generally
known to others outside the Company, whether written or otherwise, regarding
earnings, plans, strategies, prospective and executed contracts and other
business arrangements.

 

3

 

2.3.4.      Participant’s
agreement, upon termination of employment, to promptly return all property of the
Company, to reimburse the Company for any personal telephone calls, credit card
charges and other expenses, and Participant’s payment of all amounts due to the
Company.

 

Notwithstanding any other provision of the Plan, Participant
will not be treated as having satisfied the requirements of this Section 2.3
unless (a) Participant executes any one or more of the above agreements
that the Sponsor may for any reason require, (b) Participant delivers
such agreements to the person, and within the time period, prescribed in such
agreement, and (c) Participant does not make a legally valid revocation of
such agreement.

 

2.4.         Pre-existing
Plans

 

Notwithstanding anything in this Plan to the contrary,
Section 12 of the Company’s 2002 Stock Plan and Section 12 of the
Company’s 2003 Stock Plan, and not this Plan (including Section 2.1
hereof) shall govern the vesting of options and stock awards granted under the 2002
Stock Plan and 2003 Stock Plan, respectively, in the event of a Change in
Control.

 

3.             Taxes

 

Taxes will be withheld from each Participant’s Severance
Benefits to the extent the Plan Administrator determines that this is required
by law.

 

4.             Relation
to Other Plans and Agreements

 

Any Severance Benefits that a Participant receives
will be in addition to any other benefits to which a Participant is entitled by
Company policy or the law. No Severance Benefits will be taken into account for
purposes of determining benefits under other Company benefit plans, retirement or
pension plans, 401(k) plans, or similar retirement arrangements. All such plans
or similar arrangements, to the extent inconsistent with this Plan, are hereby
so amended.

 

5.             Claims
Procedures

 

5.1.         Formal
Claims Typically Not Required

 

Typically, you will not
need to present a formal claim to receive the Severance Benefits payable under
this Plan.

 

5.2.         Disputes

 

If any person believes
that Severance Benefits are being denied improperly, that the Plan is not being
operated properly, that fiduciaries of the Plan have breached their duties, or
that the Participant’s legal rights are being violated with respect to the
Plan, the Participant must file a formal claim with the Plan Administrator within the time period set forth
in Section 5.3. The Plan Administrator will handle all such claims in
accordance with the procedures set forth in Section 5.4. This
requirement applies to all claims that any person has with respect to the Plan,
including claims against fiduciaries and former fiduciaries, except to the
extent the Plan Administrator determines, in its sole discretion, that it does
not have the power to grant all relief reasonably being sought by the Participant.

 

5.3.         Time
for Filing Claims

 

A formal claim must be
filed within ninety (90) days after the date the Participant first knew or
should have known of the facts on which the claim is based (or, if earlier, the date that is one
hundred twenty (120) days after your employment terminates for any reason),
unless the Sponsor in writing consents otherwise. The Plan

 

4

 

Administrator will
provide a Participant, on request, with a copy of the claims procedures
established under Section 5.4. If a Participant files an
untimely claim, no Severance Benefits of any kind shall be payable under the
Plan.

 

5.4.         Procedures

 

5.4.1.      If
the Plan Administrator does not offer a Participant the payment of Severance
Benefits under this Plan within ten (10) days after the occurrence of a Triggering
Event, the Participant must file a claim for benefits on a form prescribed
by the Plan Administrator and within the time frame set forth in Section 5.3
above. If the Participant’s claim for a benefit is wholly or partially denied,
the Plan Administrator will furnish the Participant with a written notice of
the denial. This written notice must be provided to the Participant within a
reasonable period of time after the receipt of the Participant’s claim by the
Plan Administrator (generally within thirty (30) days after the occurrence of a
Triggering Event). Written notice of denial of a claim must contain the
following information:

 

(a)           the
specific reason or reasons for the denial;

 

(b)           a
specific reference to those provisions of the Plan on which such denial is
based;

 

(c)           a
description of any additional information or material necessary to perfect the Participant’s
claim, and an explanation of why such material or information is necessary; and

 

(d)           a
copy of the appeals procedures under the Plan and the time limits applicable to
such procedures, including a statement of the Participant’s right to bring a
civil action under Section 502(a) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”)
following an adverse determination of the Participant’s claim.

 

5.4.2.      If
the Participant’s claim has been denied, and the Participant wishes to submit
his or her request for a review of his or her claim, the Participant must
follow the following Claims Review Procedure:

 

(a)           Upon
the denial of a claim for benefits, the Participant may file a request for
review of the claim, in writing, with the Plan Administrator;

 

(b)           The
Participant must file the claim for review not later than sixty (60) days after
the Participant has received written notification of the denial of the claim
for benefits;

 

(c)           The
Participant has the right to review and obtain copies of all  relevant
documents relating to the denial of the claim and to submit any issues and
comments, in writing, to the Plan Administrator;

 

(d)           If
the Participant’s claim is denied, the Plan Administrator must provide the Participant
with written notice of this denial within sixty (60) days after the Plan
Administrator’s receipt of the Participant’s written claim for review.

 

5.4.3.      The
Plan Administrator’s decision regarding the Participant’s claim for review will
be communicated to the Participant in writing, and if the Participant’s claim
for review is denied in whole or part, the decision will include:

 

(a)           the
specific reason or reasons for the denial;

 

5

 

(b)           specific
references to the pertinent provisions of the Plan on which the decision was
based; and

 

(c)           a
statement that the Participant may receive, upon request and free of
charge, reasonable access to and copies of, all documents, records and other
information relevant to the Participant’s claim for benefits.

 

6.             Plan
Administration

 

6.1.         Discretion.
The Plan Administrator is responsible for the general administration and
management of the Plan and shall have all powers and duties necessary to
fulfill its responsibilities, including, but not limited to, the discretion to
interpret and apply the provisions of the Plan and to determine all questions
relating to eligibility for Plan benefits. The Plan Administrator and all Plan
fiduciaries shall have the discretion to interpret or construe ambiguous,
unclear, or implied (but omitted) terms in any fashion they deem to be
appropriate in their sole and absolute discretion, and to make any findings of
fact needed in the administration of the Plan. The validity of any such
interpretation, construction, decision, or finding of fact shall not be given
de novo review if challenged in court, by arbitration, or in any other forum,
and shall be upheld unless clearly arbitrary or capricious.

 

6.2.         Finality
of Determinations. Unless arbitrary and capricious, all actions taken and
all determinations by the Plan Administrator or by Plan fiduciaries will be
final and binding on all persons claiming any interest in or under the Plan. To
the extent the Plan Administrator or any Plan fiduciary has been granted
discretionary authority under the Plan, the Plan Administrator’s or Plan
fiduciary’s prior exercise of such authority will not obligate it to exercise
its authority in a like fashion thereafter.

 

6.3.         Drafting
Errors. If, due to errors in drafting, any Plan provision does not
accurately reflect its intended meaning, as demonstrated by consistent
interpretations or other evidence of intent (by the Sponsor or the Plan
Administrator, as the case may be), or as determined by the Plan
Administrator in its sole and absolute discretion, the provision shall be
considered ambiguous and shall be interpreted by the Plan Administrator and all
Plan fiduciaries in a fashion consistent with its intent, as determined in the
sole and absolute discretion of the Plan Administrator (but with regard to the
intent of the Sponsor as settlor).

 

6.4.         Scope.
This Section may not be invoked by any person to require the Plan
to be interpreted in a manner inconsistent with its interpretation by the Plan
Administrator or other Plan fiduciaries.

 

7.             Costs,
Indemnification, and Reimbursement for Litigation Expenses

 

7.1.         All
costs of administering the Plan and providing Plan benefits will be paid by the
Company.

 

7.2.         To
the extent permitted by applicable law and in addition to any other indemnities
or insurance provided by the Company, the Company will indemnify and hold
harmless its (and its affiliates’) current and former officers, directors,
employees, and agents against all expenses, liabilities, and claims (including
legal fees incurred to defend against such liabilities and claims) arising out
of their discharge in good faith of their administrative and fiduciary
responsibilities with respect to the Plan. Expenses and liabilities arising out
of willful misconduct will not be covered under this indemnity.

 

8.             Plan
Amendment and Termination; Limitation on Employee Rights; Conditions of Receipt
of Severance Benefits

 

8.1.         Sponsor
May Amend or Terminate the Plan. Subject to subsection 8.2, the
Sponsor, acting through its Board of Directors or its delegate, has the right
in its sole and absolute discretion to amend the Plan, to extend its term, or
to terminate the Plan, prospectively.

 

6

 

8.2.         Application
of Amendment or Termination of the Plan. Notwithstanding the foregoing, any
amendment or termination of the Plan that occurs on or after the Participation
Date will only apply to those Participants:

 

8.2.1.      who
consent individually and in writing to the amendment or termination of the Plan;
or

 

8.2.2.      whose
vested Severance Benefit is not adversely affected by such amendment or
termination.

 

8.3.         No
Right to Continued Employment. This Plan shall not give any employee the
right to be retained in the service of the Company, and shall not interfere
with or restrict the right of the Company to discharge or retire the employee for
any lawful reason.

 

9.             Governing
Law. This Plan is not a welfare plan subject to ERISA. The laws of the
State of Georgia (excluding its choice of laws principles) shall govern this
Plan.

 

	
  FIRST HORIZON
  PHARMACEUTICAL CORPORATION

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Patrick
  Fourteau

  	
   

  
	
   

  	
  Patrick
  Fourteau, President

  
	
   

  	
  and Chief Executive Officer

  

 

7

 

Exhibit A

 

Initial
Participants

 

Michael Mavrogordato

 

Leslie Zacks

 

Sam Gibbons

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