Document:

exv4w3

 

EXHIBIT 4.3

LOCK-UP AGREEMENT

J.P. Turner & Company, L.L.C.

3340 Peachtree Road

23rd Floor

Atlanta, Georgia 30326

Ladies and Gentlemen:

     The undersigned understands that J.P. Turner & Company, LLC (the
“Representative”) proposes to enter into an Underwriting Agreement with
Integrated Financial Services, Inc. (the “Company”), providing for the public
offering of shares of Common Stock of the Company (the “Securities”) pursuant
to a Registration Statement on Form SB-2 (the “Registration Statement”) filed
with the Securities and Exchange Commission.

     In consideration of the agreement by the Representative to offer and sell
the Securities pursuant to the public offering, and of other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the undersigned agrees that he, she or it will not, directly or indirectly, for
a period of 12 months following the date of the Prospectus relating to the
public offering of the Securities, sell, offer to sell, contract to sell, grant
any option for the sale of, grant any security interest in, pledge,
hypothecate, or otherwise sell or dispose of any of the Common Stock of the
Company (“Common Stock”) , or any options or warrants to purchase any Common
Stock, or any securities convertible into or exchangeable for Common Stock, or
any interest in such securities or rights, owned directly by the undersigned or
with respect to which the undersigned has the power of disposition, in any such
case whether now owned or hereafter acquired at any time prior to the Effective
Date of the Registration Statement (the “Restricted Securities”), other than as
a bona fide gift or gifts, provided that the undersigned provides prior written
notice of such gift or gifts to the Representative and the donee or donees
thereof agree to be bound by the restrictions set forth herein. As a reasonable
means of ensuring compliance with the terms of this Agreement, the undersigned
further agrees that (i) the undersigned shall deliver the certificates
evidencing the Restricted Securities for deposit to an account established at
the Representative for the undersigned; (ii) the certificates representing the
Restricted Securities shall have noted conspicuously thereon a legend that the
Restricted Securities are subject to the restrictions on transfer imposed by
the terms of this Agreement; and (iii) the Company shall instruct the transfer
agent for the Restricted Securities to place a transfer restriction as to the
Restricted Securities on such transfer agent’s records.

     In the event that the undersigned owns no Common Stock at the date hereof
or prior to the Effective Date, but has the right to acquire Common Stock
pursuant to options or warrants, and if the undersigned exercises such options
or warrants prior to the expiration of the 12 month period commencing on the
Effective Date, he, she or it agrees that the Common Stock purchased on such
exercise of options or warrants will be subject to the terms of this Agreement
for the remaining portion of such 12 month period. In addition, the
undersigned agrees that he, she or it will not sell, pledge, hypothecate or
otherwise dispose of such Common Stock pursuant to the exemption afforded by
Rule 701 under the Securities Act of 1933, as amended, during such 12 month
period without the prior written consent of the Representative.

 

 

     The undersigned further agrees that he, she or it shall not enter into any
swap or other arrangement that transfers all or a portion of the economic
consequences associated with the ownership of any Common Stock owned by the
undersigned at the date hereof, or that the undersigned obtains ownership of
during the 12 month period commencing on the Effective Date (regardless of
whether any of the transactions are to be settled by the delivery of Common
Stock, other securities, cash or otherwise), for a period of 12 months from the
Effective Date.

     The undersigned further agrees that all of the rights, authority and
preemptive provisions granted to the Representative pursuant to the foregoing
provisions may be transferred by the Representative to any other NASD member
firm that participates in the proposed public offering of the Company’s
Securities.

     IN WITNESS WHEREOF, the undersigned has executed and delivered this
Lock-Up Agreement intending to be bound thereby in accordance with the above
terms and conditions. Execution and return of this Lock-Up Agreement by
facsimile transmission will be considered execution and return of an original
for all purposes and the undersigned authorizes the Representative to rely upon
a facsimile copy as if it was an original for all purposes.

	 	 	 	 	 
	

	 	 	 	Very truly yours,
	 
	 	 	 	 
	Date:
	 	 	 	 
	

	 	
 
	 	
 
	

	 	 	 	Signature(s)
	 
	 	 	 	 
	

	 	 	 	
 
	

	 	 	 	Print Name(s) as they appear on the
	

	 	 	 	Company’s registration books
	 
	 	 	 	 
	

	 	 	 	
 
	

	 	 	 	Position with Company (i.e., officer,
	

	 	 	 	director and/or shareholder)
	 
	 	 	 	 
	

	 	 	 	
 
	

	 	 	 	Social Security Number of EIN Number
	 
	 	 	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	 	 	
 
	

	 	 	 	Address of record for all shareholder
	

	 	 	 	communications
	 
	 	 	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	 	 	
 
	

	 	 	 	Day Phone Number, Fax Number and
	

	 	 	 	E-Mail Address

 2exv10w1

 

EXHIBIT 10.1

CONSENT TO SUBLEASE

     THIS CONSENT TO SUBLEASE (“Consent”) is made as of this ____ day of August,
2002, by and among Multi-Employer Property Trust, a trust organized under 12
C.F.R. Section 9.18 (“Landlord”), PartMiner, Inc., a New York corporation
(“Tenant”) and Vesture Enterprises, a Colorado limited liability company
(“Subtenant”).

BACKGROUND

     A. Tenant
is leasing that certain real property (the “Premises”) from
Landlord pursuant to the terms of that certain lease dated as of September 5,
2000, as amended by First Amendment to Lease dated June 15, 2001 (as amended
from time to time, the “Main Lease”). Under which Landlord leased to Tenant the
Building commonly known as Peakview Plaza located at 7807 East Peakview Avenue.
The Premises are more specifically described on Exhibit A attached hereto.

     B. Tenant desires and has agreed to sublease a portion of the Premises
consisting of 11,748 rentable square feet as shown and marked on the floor plan
attached to the Sublease (the “Sublet S ace”) to Subtenant. Subtenant desires
and has agreed to sublease the Sublet Space under a Sublease dated as of August
9 2002 (the “Sublease”) from and after August 15, 2002 (the “Effective Date”).

     C. Pursuant to the terms of the Main Lease, Tenant now seeks Landlord’s
consent to such subletting.

AGREEMENT

     1. Landlord hereby consents to the subletting by Tenant to Subtenant,
pursuant to the Sublease, a copy of which is attached hereto, of the Sublet
Space, such consent being subject to and upon the following terms and
conditions, to each of which Tenant and Subtenant expressly agree:

     2. Nothing contained in this Agreement shall:

          (a) operate as a consent to or approval or ratification by Landlord of any
of the provisions of the Sublease or as a representation or warranty by
Landlord, and Landlord shall not be bound or estopped in any way by the
provisions of the Sublease;

          (b) be construed to modify, waive or affect (i) any of the provisions,
covenants or conditions in the Main Lease, (ii) any of Tenant’s obligations
under the Main Lease, or (iii) any rights or remedies of Landlord under the
Main Lease or otherwise or to enlarge or increase Landlord’s obligations or
Tenant’s rights under the Main Lease or otherwise. Without limiting the
generality of the foregoing, nothing contained in this Agreement shall be
construed to modify, waive or affect Landlord’s rights under subparagraph 3.4
of the Main Lease to collect Additional Rent from Tenant based on rent payable
to Tenant from Subtenant, and Landlord expressly reserves its rights to collect
such sums if, as and when they become due and payable; or

          (c) be construed to waive any present or future breach or default on the
part of Tenant under the Main Lease. In case of any conflict between the
provisions of this Agreement and the Provisions of the Sublease, the provisions
of this Agreement shall prevail unaffected by the Sublease.

     3. This Consent is not assignable.

 

 

     4. The Sublease shall be subject and subordinate at all times to the Main
Lease and all of its provisions, covenants and conditions. In case of any
conflict between the provisions of the Main Lease and the provisions of the
Sublease, the provisions of the Main Lease shall prevail unaffected by the
Sublease.

     5. Neither the Sublease nor this Consent thereto shall release or
discharge the Tenant from any liability under the Main Lease and Tenant shall
remain liable and responsible for the full performance and observance of all of
the provisions, covenants and conditions set forth in the Main Lease on the
part of Tenant to be performed and observed. Any material breach or violation
of any provision of the Main Lease by Subtenant shall be deemed to be and shall
constitute a default by Tenant in fulfilling such provision.

     6. This Consent by Landlord shall not be construed as a consent by
Landlord to any further subletting either by Tenant or Subtenant or to any
expansion or modification of the Sublet Space or to any modification or
amendment to the Sublease. The Sublease may not be assigned, modified, amended,
renewed or extended nor shall the Premises or Sublet Space, or any part
thereof, be further sublet without the prior written consent of the Landlord
thereto in each instance.

     7. Upon expiration or any earlier termination of the term of the Main
Lease, or in any case of the surrender of the Main Lease by Tenant to Landlord,
except as provided in the next succeeding sentence, the Sublease and its term
shall expire and come to an end as of the effective date of such expiration,
termination, or surrender and Subtenant shall vacate the Sublet Space on or
before such date. If the Main Lease shall expire or terminate during the term
of the Sublease for any reason other than condemnation or destruction by fire
or other cause, or if Tenant shall surrender the Main Lease to Landlord during
the term of the Sublease, Landlord, in its sole discretion, upon written notice
given to Tenant and Subtenant not more than thirty (30) days after the
effective date of such expiration, termination or surrender, without any
additional or further agreement of any kind on the part of Subtenant, may elect
to continue the Sublease with the same force and effect as if Landlord as
lessor and Subtenant as lessee had entered into a lease as of such effective
date for a term equal to the then unexpired term of the Sublease and containing
the same terms and conditions as those contained in the Sublease, Subtenant
shall attorn to Landlord and Landlord, and Subtenant shall have the same
rights, obligations and remedies thereunder as were had by Tenant and Subtenant
thereunder prior to such effective date, respectively, except that in no event
shall Landlord be

               (a) liable for any act or omission by Tenant, or

               (b) subject to any offsets or defenses which Subtenant had or might have
against Tenant,

               (c) bound by any rent or additional rent or other payment paid by
Subtenant to Tenant in advance, or

               (d) bound by any amendment to the Sublease not consented to by Landlord.

     Upon expiration of the Sublease pursuant to the provisions of the first
sentence of this paragraph 7, in the event of the failure of Subtenant to
vacate the Sublet Space as therein provided, Landlord shall be entitled to all
the rights and remedies available to a landlord against a tenant holding over
the expiration of a term.

     8. Both the Tenant and Subtenant shall be and continue to be liable for
all bills rendered by Landlord for charges incurred by or imposed upon
Subtenant for services rendered and materials supplied to the Sublet Space. If
a separate submeter shall be installed to measure electric

2

 

current furnished to the Sublet Space, then payment for the current so
furnished shall be made by Subtenant directly to Landlord as and when billed
and furnishing of such current shall be in accordance with and subject to all
of the applicable terms, covenants and conditions of the Main Lease.

     9. Any notice or communication with any party hereto may desire or be
required to give to any other party under or with respect to this Consent shall
be given by prepaid certified mail addressed to such other party, in the case
of Landlord at its address set forth below, and in the case of Tenant or
Subtenant at the address set forth below, or in any case at such other address
as such other party may have designated by notice given in accordance with the
provisions of this paragraph. The time when such notice or communication shall
be deemed to have been given shall be five (5) days after such mailing.

     10. In the event that Landlord places the enforcement of the Main Lease or
Sublease, or any part thereof, or the collection of any rent or other sums due,
or to become due thereunder, or recovery of possession of the Premises in the
hands of an attorney, Tenant shall pay to Landlord, upon demand, Landlord’s
reasonable attorneys’ fees and court costs. In any action which Landlord brings
to enforce its rights under the Main Lease or Sublease, should Landlord
prevail, Tenant shall pay all costs incurred by Landlord including reasonable
attorneys’ fees, to be fixed by the court, and said costs and attorneys’ fees
shall be a part of the judgment in said action.

     11. Notwithstanding any language to the contrary in the Sublease and
except for the security deposit under paragraph 9 of the Sublease in the amount
of two (2) months’ rent, Tenant and Subtenant expressly acknowledge and agree
that Tenant shall not collect from Subtenant, and Subtenant shall not pay to
Tenant, any rent under the Sublease more than one (1) month in advance of its
due date.

     12. In accordance with subparagraph 4.16.2 of the Main Lease, Tenant has
agreed to pay Landlord’s reasonable attorneys’ fees incurred in the review of
such documentation and in documenting Landlord’s consent, plus an
administrative fee of $350.00 as Landlord’s fee for processing such proposed
assignment or sublease. Tenant has already deposited with Landlord the sum of
$350 as Landlord’s administrative fee and shall promptly pay, after receipt of
invoice, Landlord’s reasonable attorneys’ fees incurred in connection with this
Consent.

     13. This Consent shall be construed in accordance with the laws of the
State of Colorado, contains the entire agreement of the parties hereto with
respect to the subject matter hereof and may not be changed or terminated
orally or by course of conduct.

     14. Landlord acknowledges that the terms of subparagraph 4.15 of the Main
Lease, entitled Waiver of Subrogation, shall apply to Subtenant, its agents,
employees or contractors.

DATED this    day of August 2002.

	 	 	 
	Landlord’s Designated Address:

	 	LANDLORD:
	 
	 	 
	c/o Kennedy Associates Real Estate

	 	MULTI-EMPLOYER PROPERTY TRUST, a trust
	Counsel, Inc.

	 	organized under 12 C.F.R. Section 9.18
	Attn: Greg Skinner
	 	 
	1215 Fourth Avenue, Suite 2400

	 	By: Kennedy Associates Real Estate Counsel,
	Seattle, WA 98161

	 	Inc., 
	Facsimile: 206-882-4769
	 	 
	

	 	By: /s/ Michael R. McCormick
	and to:

	 	Name: Michael R. McCormick

3

 

	 	 	 
	

	 	Its: Vice President
	 
	 	 
	Riggs & Company IMEPT

	 	TENANT:
	Attn: Patrick O. Mayberry
	 	 
	808-17th Street NW, 7th Floor

	 	PARTMINER, INC., a New York corporation
	Washington, D.C. 20006
	 	 
	Tenant’s Designated Address:

	 	By: /s/ Michael R. Manley
	

	 	Name: Michael R. Manley
	PartMiner, Inc.

	 	Its: President
	Attn: General Counsel
	 	 
	80 Ruland Road
	 	 
	Subtenant’s Designated Address:

	 	SUBTENANT:
	 
	 	 
	7807 East Peakview Avenue

	 	VESTURE ENTERPRISES, a Colorado limited liability
	Attn: John Herbers
	 	company
	Suite #300
	 	 
	Englewood, Colorado 80111
	 	 
	

	 	By: /s/ Steven C. Robbins
	

	 	Name: Steven C. Robbins
	

	 	Its: Manager
	 
	 	 
	

	 	Date: 9/2/02

4

 

Agreement of Sublease

1. Parties: This Sublease, dated as of the 22nd day of August 2002, is made by
and between PartMiner, Inc., a New York corporation having an office at 80
Ruland Road Melville, NY 11747 Sublessor”), and Vesture Enterprises, LLC, a
Colorado limited liability company, having an office at 7315 E. Orchard Road,
Suite 300, Greenwood Village, CO 80111 (“‘Vesture”) and Independent Financial
Systems, Inc., a Colorado corporation, having an office at 7315 E. Orchard
Road, Suite 300, Greenwood Village, CO 80111 (“IFS ”)(“Vesture” and “IFS”
collectively referred to hereinafter as “Sublessee”).

2. Master Lease:

Pursuant to the Lease Agreement (the “Master Lease”) dated as of September 5,
2000, as amended by the First Amendment to Lease dated June 15, 2001, Riggs &
Company, a division of Riggs Bank N.A., as Trustee of the Multi-Employer
Property Trust, a trust organized under 12 C.F.R. Section 9.18, as Landlord,
leased to PartMiner, Inc., a New York corporation, as Tenant, approximately
24,851 rentable square feet of space on the third floor, a diagram of which is
shown on Exhibit A-1 attached hereto and incorporated herein (the “Prime Lease
Premises”) of the building known as 7807 Peakview Avenue, Denver, Colorado (the
“Building”).

     A copy of the Master Lease is attached hereto as Exhibit A. Terms not
otherwise defined herein shall have the meanings given in the Master Lease.

     2.2 This Sublease is, and at all times shall be, subject and subordinate
to the Master Lease.

     2.3 The terms, conditions and respective obligations of Sublessor and
Sublessee to each other under this Sublease shall be the terms and conditions
of the Master Lease, which are incorporated herein by reference, except for
those provisions of the Master Lease which are directly contradicted by this
Sublease, in which event the terms of this Sublease shall control over the
Master Lease. For purposes of this Sublease, wherever in the Master Lease the
word “Landlord” is used, it shall be deemed to mean or refer to Sublessor
herein, and wherever in the Master Lease the word “Tenant” is used, it shall be
deemed to mean or refer to Sublessee herein. Nothing in this Sublease (other
than the obligations to assist in enforcement as described in Section 14.9
hereof) shall be construed to make Sublessor liable for the performance or
nonperformance of any obligation of the Landlord under the Master Lease.
Sublessee acknowledges that Sublessee has read and is familiar with all of the
Master Lease, and hereby agrees to perform Sublessee’s Assumed Obligations (as
defined in Section 2.5 below), and to be bound by the conditions and
limitations, imposed on the Tenant under the Master Lease, insofar as such
obligations, conditions, and limitations relate to the Sublease Premises as
such premises are defined in Section 5 herein.

     2.4 Sublessee acknowledges that Sublessor has no responsibility for the
provisions set forth in Sections 4.1, 4.3, 4.14, 4.17 and 4.24 and Exhibit G of
the Master Lease, other than the obligations to assist in enforcement as
described in Section 14.9 hereto. Failure on the part of Landlord to provide
these services shall not be a default by Sublessor of its obligations under
this Sublease. Notwithstanding the provisions of Section 2.3 hereof, the
following provisions of the Master Lease are not incorporated herein: Sections
1.5, 1.6, 1.10, 1.12, 1.20, 1.23, 1.24, 1.28, 1.29, 1.32, 1.34, 1.38, 1.39,
1.41, 2.4, 2.5, 2.6, 2.9, 2.10, 3.3, 3.4, 4.1, 4.3, 4.14, 4.16, 4.17, 4.24,
4.26; 4.27, 5.4, Exhibit B, Exhibit C, Exhibit D, Exhibit F, Exhibit G, Exhibit
H and Exhibit I. The foregoing exclusions shall in no way limit the obligations
of Landlord to provide such services pursuant to the terms of the Master Lease.

     2.5 During the term of this Sublease, and all periods subsequent thereto
for obligations that have arisen during the term of this Sublease, Sublessee
hereby expressly assumes, and agrees to perform and comply with, for the
benefit of Sublessor and Landlord, each and every obligation of Sublessor as
Tenant under the Master Lease; provided that, such obligations shall be limited
by all of the following:

5

 

          (i) Sublessee is expressly not assuming any obligations of Sublessor under
the Master Lease that apply to portions of the Premises defined in the Master
Lease other than the Sublease Premises, which Sublessee’s obligations shall be
limited only to those applicable to the Subleased Premises;

          (ii) Sublessee is expressly not assuming any obligations of Sublessor
under the Master Lease that occurred (with respect to any obligation
restricting or requiring actions) or were required to occur prior to August 15,
2002, or with respect to any payments under the Master Lease accruing and due
and payable prior to August 15, 2002;

          (iii) Sublessor’s monetary obligations under the Master Lease shall be
considered performed by Sublessee to the extent and in the amount that
“Sublease Rent” is paid to Sublessor in accordance with Paragraph 8 hereof;

          (iv) Sublessee shall have no obligation to pay any portion of the
Operating Costs and Taxes as defined in the Master Lease or any utilities used
in the operation of the business; except that, Sublessee shall be solely
responsible for all charges related directly or indirectly to Sublessee’s
telephone, online and Internet usage, including without limitation,
installation of telephone or cable lines, online connectivity charges, etc.

          (v) Sublessor shall comply with any obligations of Tenant contained in the
following provisions of the Master Lease: Sections 1.5, 1.6, 1.10, 1.12, 1.20,
1.23, 1.24, 1.28, 1.29, 1.32, 1.34, 1.38, 1.39, 1.41, 2.4, 2.5, 2.6, 2.9, 2.10,
3.3, 3.4, 4.1, 4.3, 4.14, 4.16, 4.17, 4.24, 4.26, 4.27, 5.4, Exhibit B, Exhibit
C, Exhibit D, Exhibit E, Exhibit F, Exhibit G, Exhibit H and Exhibit I;

          (vi) Sublessee does not assume or agree to perform any obligations arising
or resulting from any default by Sublessor under the Master Lease.

     The obligations that Sublessee has assumed under this Paragraph 2.5 are
referred to in this Sublease as the “Sublessee’s Assumed Obligations”.

     2.6 Sublessee agrees to indemnify and shall hold Sublessor and Landlord
free and harmless of and from any liability, judgments, costs, damages, claims
and demands, including reasonable attorney’s fees, arising out of Sublessee’s
failure to comply with or perform Sublessee’s Assumed Obligations. Sublessor
shall indemnify and hold Sublessee free and harmless of and from any liability,
judgments, costs, damages, claims and demands, including reasonable attorney’s
fees, arising out of Sublessor’s failure to comply with or perform its
obligations under the Master Lease.

     2.7 Provided that Sublessee performs its obligations under this Sublease,
Sublessor agrees to comply with all of its obligations under the Master Lease,
including without limitation, its obligation to pay the Base Rent and amounts
payable under Section 3 of the Master Lease. Sublessor agrees that it will not
terminate the Master Lease (except in the event of casualty or condemnation
pursuant to an express right of termination provided with respect to such
occurrences in the Master Lease), or modify or further amend the Master Lease
in any manner which would adversely affect Sublessee or the Sublease Premises,
and any such modification or amendment, as between Sublessor and Sublessee,
shall be void and of no force or effect. In no event shall Sublessor be
obligated to exercise any option to renew the Master Lease.

     2.8 Sublessor represents and warrants to Sublessee that, as of the date
hereof, (i) the Master Lease is in full force and effect; (ii) the Master Lease
has not been modified or amended except as expressly set forth herein; (iii)
Sublessor has not heretofore entered into any assignment of the Master Lease or
any sublease of the Sublease Premises that has not previously expired that
might have any adverse impact on this Sublease; (iv) upon Landlord’s consent to
this Sublease in accordance with the provisions of this Sublease, Sublessor has
full right and authority to enter into this Sublease and Sublessee shall and
may, subject to the

6

 

terms and provisions of this Sublease, peacefully and quietly have, hold and
enjoy the Sublease Premises without interference by any person claiming by,
through or under Sublessor, so long as Sublessee pays all of the Monthly Base
Sublease Rent due hereunder and provided that Sublessee performs all
Sublessee’s covenants and agreements contained herein and in the Master Lease
as herein incorporated; and (v) that no material default exists on the part of
Sublessor or, to the knowledge of Sublessor, the Landlord.

3. Default:

     (a) Sublessee agrees that it shall be an event of default (“Event of
Default”) under this Sublease if Sublessee fails to pay rent as and when
provided for herein or otherwise fails to perform any obligation hereunder or
fails to perform any of Sublessee’s Assumed Obligations and such failure would
constitute an Event of Default by the Tenant under the Master Lease, regardless
of whether or not the Landlord seeks to enforce the applicable default
provisions of the Master Lease; provided, however, that Sublessee shall be
entitled to such notice as is provided for in the Master Lease from Sublessor
and/or Landlord of such default and an opportunity to cure in accordance with
the terms of the Master Lease; provided, further, however, that any such cure
period afforded to Sublessee shall be three (3) days less than the cure period
afforded to Sublessor as tenant. Upon the occurrence of an Event of Default
(and after the expiration of all applicable cure periods, if any) by Sublessee,
(i) Sublessor shall have all remedies afforded to the Landlord under Section
5.2 of the Master Lease, or otherwise available at law or equity, and (ii)
subject to compliance by Sublessor with applicable law regarding tenant
eviction upon a tenant default, Sublessee agrees that it will immediately
vacate the Premises upon written request of the Sublessor. The parties
recognize and agree that Sublessee’s agreement to abide by the above-described
terms and conditions is a material factor in Sublessor’s agreement to enter
into this Sublease. By execution hereof, Sublessee, to the maximum extent
allowable under Colorado law, hereby waives its rights to dispute Sublessor’s
right to possession of the Premises upon the occurrence of such an uncured
default.

     (b) Sublessor agrees that it shall be a Sublessor “Event of Default” under
this Sublease if Sublessor takes any action or fails to perform any action or
condition that would constitute an Event of Default by the Tenant under the
Master Lease, subject to any applicable cure period provided in the Master
Lease to cure Tenant Events of Default.

4. Sublessee Cooperation: In the event that after the expiration of this
Sublease, or upon lawful termination of this Sublease for any reason
whatsoever, Sublessee remains in possession of the Sublease Premises without
execution of a new agreement under which Sublessee may lawfully use and occupy
the same, such holding over shall not be deemed to extend the term of this
Sublease or renew this Sublease, and Sublessee shall, upon demand of Sublessor,
be obligated to pay for such period of unlawful use and occupancy an amount
equal to 200%0 of the amount that would otherwise be due under Paragraph 8 of
this Sublease. Sublessee acknowledges that Sublessee’s failure to surrender
possession of the Sublease Premises immediately upon the expiration of this
Sublease may constitute a default by Sublessor under the Master Lease and
subject Sublessor to liability to the Landlord. Accordingly, if Sublessee
remains in possession of the Sublease Premises after the expiration of this
Sublease without the written consent of both Sublessor and the Landlord, then
Sublessee shall be deemed to have detained the Premises unlawfully. Sublessee
hereby agrees to indemnify Sublessor and hold Sublessor harmless against any
loss, claim, damage or expense that may be asserted against or incurred by
Sublessor in connection with Sublessee’s failure to surrender possession of the
Sublease Premises immediately upon the expiration of this Sublease. In the
absence of a written agreement to the contrary, no tender by Sublessee, and no
acceptance by Sublessor or the Landlord, of any payment after the expiration of
this Sublease, whether designated as rent or otherwise, shall be deemed to
evidence or give rise to a tenancy of any kind, but instead shall be construed
as a payment on account of damages resulting from Sublessee’s unlawful
detention of the Sublease Premises.

5. Subleased Premises: Sublessor hereby subleases to — Sublessee, and Sublessee
hereby subleases from Sublessor the following rentable square feet located on
the third floor of the Prime Lease Premises and as shown in the diagram which
is attached as Exhibit B attached hereto:

7

 

     (a) From the Commencement Date (defined below) until November 14, 2002
approximately 8,044 rentable square feet, as indicated on Exhibit B;

     (b) From November 15, 2002 until January 14, 2003 approximately 10,000
rentable square feet, as indicated on Exhibit B;

     (c) From January 15, 2003 to the Expiration Date (defined below)
approximately 11,748 rentable square feet (subject to prior floor plan approval
by Sublessor’s architect, which approval shall not be unreasonably withheld),
as indicated on Exhibit B.

     (d) Notwithstanding the foregoing, the parties agree that (i) Sublessor
shall be entitled to use the main conference room located immediately to the
west of the Main Reception Area, subject to the approval of Sublessee, such
approval not to be unreasonably withheld, delayed or conditioned, (ii)
Sublessee shall be entitled to use the kitchen area located immediately to the
east of the Main Elevator Lobby, subject to the approval of Sublessor, such
approval not to unreasonably withheld, delayed or conditioned, and (iii) for
the avoidance of doubt, Sublessor shall have complete and unfettered access to
and use of the large training room located to the south of the Main Elevator
Lobby.

6. Term:

     6.1 Term: The term of this Sublease shall be for forty-three (43) months
commencing on August 15, 2002 (''Commencement Date”) and ending March 15, 2006
(“Expiration Date”) (the period from the Commencement Date and to the
Expiration Date hereinafter called the “Term”), unless sooner terminated
pursuant to any provision hereof. Sublessee shall have no right to renew the
Term of this Sublease nor shall Sublessee have any right of first offer with
respect to any other space, except as specifically agreed to by the Landlord in
the consent agreement.

     6.2 Delay in Commencement: Notwithstanding the provisions of Paragraph 6.1
above, if for any reason, Sublessor cannot provide telephone, online or
Internet access to the Sublease Premises on the Commencement Date provided in
such paragraph, Sublessor shall not be -subject to any liability on account of
such failure to deliver, nor shall such failure affect the validity of this
Sublease or the obligations of Sublessee hereunder or extend the term hereof;
provided, however, Sublessor hereby agrees to use reasonable efforts to
complete access to telephones and online or Internet access to the Sublease
Premises at Sublessee’s sole expense. Any delay in the delivery of such access
within the Sublease Premises shall not cause any extension of the Expiration
Date. Such date shall remain at March 15, 2006.

     6.3 Early Occupancy: If Sublessee occupies the Sublease Premises prior to
the Commencement Date, such occupancy shall be subject to all provisions of
this Sublease and shall not advance the Expiration Date and Sublessee shall be
required to pay rent effective upon the date of such occupancy. For purposes of
the preceding sentence, construction work conducted in the Sublease Premises
shall not constitute occupancy. Occupancy shall only take place at such time
Sublessee is operating its business from the Sublease Premises. From the date
of the execution of this Sublease Agreement, Sublessee’s agents and
representatives shall have the right to access the Sublease Premises for the
purpose of making improvements to the Sublease Premises, installing computer
lines, phone lines, and similar items, and for such other purposes as may be
necessary or desirable to allow Sublessee the ability to begin business
operations at the Sublease Premises on or before the Commencement Date.

     6.4 Sublessee Improvements: Sublessee agrees to take the Sublease Premises
in their “As Is” condition, subject to Sublessor’s obligation to construct the
demising walls in accordance with the attached drawings. Once Sublessee has
occupied 11,748 square feet of rentable floor space, but no later than six (6)
months from the Commencement Date, Sublessor shall cause to be constructed, at
its sole expense, the demising walls using construction quality as reasonably
required by Landlord (but in no event of lesser

8

 

quality than is currently existing for interior walls of the Premises),
generally in the location set forth on Exhibit E, but subject to the final
approval of Landlord. Sublessee shall have the right to undertake such
alterations as are necessary to complete two (2) additional offices in the
southwest comer of the Sublease Premises; provided, however, Sublessor shall
have the right to review and approve plans and specifications for any such
alteration and such alteration shall be undertaken in accordance with all
applicable terms and provisions of the Master Lease.

7. Assignment and Subletting: Sublessee shall have no right to assign this
Sublease or sublet all or any portion of the Sublease Premises, or permit the
Sublease Premises to be used by any person other than Sublessee, without the
express written consent of Sublessor and Landlord, such consent, as to the
Sublessor, shall not be unreasonably withheld. Sublessor is under no obligation
to consent if the Landlord does not consent. Any attempted assignment or
sublease in violation of this provision shall be null and void and be deemed a
material breach of this Sublease. The consent of Sublessor or Landlord to any
assignment or sublease shall not be construed as a waiver or release of
Sublessee from the terms of any covenant or obligation under this Sublease, nor
shall the collection or acceptance of rent from any transferee under an
assignment or sublease constitute acceptance of the assignment or sublease, nor
shall Sublessor’s or Landlord’s consent to any assignment or sublease be
construed to relieve Sublessor from the requirement of obtaining the consent in
writing of Landlord or Sublessor to any further assignment or sublease.
Notwithstanding the foregoing to the contrary, Sublessor acknowledges and
consents to the use of the Sublease Premises by Integrated Financial Systems,
Inc. who is engaged in common business with Sublessee and who will share in the
rental obligation hereunder; provided that, Sublessor shall receive one check
each month for the total rent due under this Sublease and Sublessee shall
provide a single point of contact, which contact shall have appropriate
authority to make decisions for all entities sharing use of the Sublease
Premises.

8. Sublease Rent:

     8.1 Sublease Rent: Sublessee shall pay to Sublessor a Base Rental Rate of
Sixteen dollars ($16.00) per rentable square foot per year with 2% compounded
annual escalations (“Sublease Rent”). Such Sublease Rent shall, therefore, be
at the following rates per rentable square foot in the Sublease Premises:

	 	 	 	 	 
	

	 	First 12 months
	 	$16.00 per rentable square foot
	 
	 	 	 	 
	

	 	Second 12 months
	 	$16.32 per rentable square foot
	 
	 	 	 	 
	

	 	Third 12 months
	 	$16.65 per rentable square foot

     Last 4 months and 2 weeks $16.98 per rentable square foot

     Such amount per rentable square foot shall be multiplied by the amount of
rentable square feet in the Sublease Premises during the particular period
referenced in Section 5 hereof.

     Sublessor shall have the right to direct Sublessee to pay any Sublease
Rent directly to Landlord with the request that Landlord shall credit such
amounts to the Base Rent due for the Prime Lease Premises pursuant to the
Master Lease. Upon the occurrence of an Event of Default by Sublessor,
Sublessee shall have the right, subject to the approval of Landlord, to pay the
Sublease Rent set forth in this Sublease to Landlord directly, in which event,
Landlord shall credit such amounts as provided in the Master Lease with respect
to payments of rent by Sublessor.

     8.2 Payment of Sublease Rent: Sublessee agrees to pay, and Sublessor
agrees to accept, Sublease Rent in equal monthly installments, in advance.
Sublessee shall pay the Sublease Rent for the half-month of August and the
month of September 2002 prior to occupancy. Beginning. on October 1, 2002,
Sublease Rent for each month of the term of this Sublease shall be due and must
have been received by Sublessor not later

9

 

than the first day of the month. Sublease Rent shall be payable in lawful
money of the United States at the address stated herein, or to such other
persons or at such other places as Sublessor may designate, in writing, to
Sublessee. Sublease Rent for any period during the term of this Sublease that
is less than a full month shall be a pro rata portion of the Sublease Rent
otherwise provided for in this Sublease.

     Sublessee shall pay the Sublease Rent set forth in this Sublease promptly
as and when same shall become due and payable, without notice or demand
therefore and without any abatement, deduction or setoff whatsoever. In the
event Sublessee fails for any reason to pay when due any Sublease Rent required
hereunder, such obligation to pay shall extend beyond and shall survive the
Expiration Date or sooner termination of this Sublease.

9. Security Deposit: Sublessee shall deposit with Sublessor upon execution
hereof a sum equal to the last two (2) months of Sublease Rent (i.e.
$33,246.$4) (the “Deposit”) as security for Sublessee’s faithful performance of
Sublessee’s obligations under this Sublease. Sublessor may commingle the
Deposit with other funds of Sublessor. If the entire Deposit has not been
utilized, the remaining amount will be refunded to Sublessee, without interest,
within 30 days after full performance of this Sublease by Sublessee. Sublessee
agrees that, in the event that Sublessee defaults, beyond all applicable grace
and cure periods after notice, in respect of any terms, provisions, conditions
and covenants of this Sublease or the Master Lease, Sublessor may apply the
whole or any part of the Deposit as the case may be, to the extent required for
the payment of rent or additional rent, or any other sums as to which Sublessee
is in default, or for any sum that Sublessor may expend by reason of
Sublessee’s default. If and to the extent Sublessor uses all or any portion of
the Deposit, Sublessee shall, within ten (10) days of notice by Sublessor,
replenish such Deposit to the original amount thereof so that at all times
during the Term Sublessor is in possession of a full Deposit amount.

10. Use of Premises:

     10.1 Use: The Sublease Premises shall be used only for general office
space in accordance with Section 1.26 of the Master Lease.

     10.2 Compliance With Law: Sublessee hereby accepts the Sublease Premises
“as is”, however, the Sublease Premises will be delivered in clean condition,
but subject to all applicable zoning, municipal, county, federal and state
laws, ordinances and regulations governing or regulating the use or occupancy
of the Sublease Premises, and Sublessee accepts this Sublease subject thereto
and to all matters disclosed hereby and by any exhibits attached hereto.
Sublessee acknowledges that neither Sublessor nor its agents have made any
representations or warranties as to the suitability of the Sublease Premises
for the conduct of Sublessee’s business.

11. Furniture & Phones: Sublessee shall have the right to use all phones, phone
equipment and furniture currently located in the Sublease Premises throughout
the Term of this Sublease. All such phones, phone equipment and furniture is
provided to Sublessee in its “As Is” condition. An inventory of such phones,
phone equipment and furniture is attached hereto as Exhibit C (“Furniture”).
Sublessor shall have no obligation to maintain or repair any such furniture or
equipment during the Term hereof. Effective upon the Commencement Date,
Sublessor hereby agrees to sell and Sublessee hereby agrees to purchase the
Furniture on the terms and conditions contained in this Section 11. The
purchase price for the Furniture is twenty percent (20°0) of the Furniture’s
original cost, which cost is $236,672.39 (the “Purchase Price”). The Purchase
Price shall be paid in the form of a promissory note (the “Note”),
substantially in the form of Exhibit D attached hereto, executed by Sublessee
and delivered to Sublessor on or before the Commencement Date, which Note shall
be interest free payable in one lump sum on the earlier to occur of (i) January
1, 2006, or (ii) any Event of Default by Sublessee under this Sublease. The
Note shall be secured by the Furniture sufficient to make Sublessor a secured
creditor with respect to the Furniture. Contemporaneously with the delivery of
the Note and the Commencement Date, Sublessor shall deliver to

10

 

Sublessee a Bill of Sale conveying the Furniture to Sublessee. Sublessee shall
reimburse Sublessor for all reasonable costs of filing and perfecting
Sublessor’s security interest in the Furniture.

12. Attorneys’ Fees: If either Sublessor or Sublessee brings any action or
proceeding, whether legal, equitable or administrative, to enforce rights and
obligations under this Sublease, or to declare rights hereunder, the prevailing
party in any such action or proceeding shall be entitled to recover from the
other party reasonable attorneys’ fees and costs of suit, in addition to any
other relief allowed by the court.

13. Notices from Landlord. Whenever Landlord provides Sublessor with any
written notice of a material default regarding the Sublease Premises pursuant
to the terms of the Master Lease, Sublessor shall promptly provide a copy of
such notice to Sublessee. Failure to provide any such notice shall not be
deemed as an Event of Default hereunder.

14. Additional Provisions:

     14.1 Insurance: Sublessee shall maintain at its sole cost and expense, at
all times during the Term, adequate insurance to cover Sub lessor’s/Tenant’s
obligations pursuant to Section 4.13 of the Master Lease. Sublessee shall name
Landlord, Landlord’s managing agent, Landlord’s mortgagee (and any other party
designated by Landlord) and Sublessor as additional insureds in said policy or
policies. Sublessee shall furnish to Sublessor a certificate or certificates of
insurance or other reasonably satisfactory evidence confirming that such
insurance is in effect as of or before the Commencement Date of this Sublease,
and, upon request, at reasonable intervals thereafter.

     14.2 Indemnification:

          (a) Sublessee shall indemnify and hold Sublessor and Landlord harmless
from and against any and all claims, loss, damages, costs and expenses,
including reasonable attorney’s fees and related disbursements, arising from
the acts or omissions of Sublessee, its employees, contractors, and agents, and
from the conduct or management of the business conducted by Sublessee in the
Sublease Premises or from any breach or default on the part of Sublessee in the
performance of any covenant or agreement on the part of Sublessee to be
performed pursuant to the terms of this Sublease, or from the negligence or
willful misconduct of Sublessee, its agents, contractors, servants, employees,
concessionaires or licensees in or about the Sublease Premises. In case any
action or proceeding is brought against Sublessor by reason of any such claim,
Sublessee, upon notice from Sublessor, covenants to defend diligently such
action or proceeding, and to retain legal counsel reasonably satisfactory to
Sublessor in connection therewith.

          (b) Sublessor shall indemnify and hold Sublessee and Landlord harmless
from and against any and all claims, damages, cost and expenses, including
reasonable attorney’s fees, arising from any breach or default on the part of
Sublessor in the performance of any covenant or agreement on the part of
Sublessor to be performed pursuant to the terms of this Sublease, or from the
negligence or willful misconduct of Sublessor, its agents, contractors,
servants, employees, concessionaires or licensees in or about the Sublease
Premises. In case any action or proceeding is brought against Sublessee by
reason of any such claim, Sublessor, upon notice from Sublessee, covenants to
defend diligently such action or proceeding, and to retain legal counsel
reasonably satisfactory to Sublessee in connection therewith.

     14.3 Notices: Any notice required or permitted to be given under this
Sublease, including any change of address for purpose of giving notice, shall
be in writing, and shall be given by personal delivery, or by certified mail,
return receipt requested, or by commercial overnight courier, in each case
addressed to the party to whom such notice is given at the address of such
party indicated next to each party’s signature at the end of this Sublease.

11

 

     14.4
Parking and Signage: Sublessee shall have access to its pro rata
share (i.e., 32% from commencement through November 14, 2002; 40% from November
15, 2002 until January 14, 2003 and 47% for the remainder of the Term) of
Sublessor’s allowance of surface and covered parking spaces as detailed in and
subject to any conditions or restrictions outlined in Sections 1.25 and 4.11
and other relevant provisions of the Master Lease. Sublessee shall also have
the right to its pro rata share of the Sublessor’s allotted signage as detailed
in and subject to any conditions or restrictions outlined in Section 4.23 of
the Master Lease. Sublessee shall also be entitled to an equal allotment of
signage with Sublessor in the Main Elevator Lobby and the Main Reception Area
located immediately to the west of the Main Elevator Lobby.

     14.5 Brokerage Clause: Sublessee warrants and represents that (a) it dealt
with no broker other than Patrick Henry or Fuller and Company and Michael A.
Sponseller of Julien J. Studley, Inc. (collectively, the “Brokers”) in
consummating this Sublease, and (b) no conversations or prior negotiations were
had with any broker other than the Brokers concerning the leasing of the
Sublease Premises. Commissions due the Brokers shall be paid by Sublessor
pursuant to separate agreements. Sublessee agrees to hold Sublessor harmless
from and against any claims for brokerage commission arising out of any
conversations or negotiations had by Sublessee with any broker other than the
Brokers.

     14.6 Incorporation of Prior Agreements: This Sublease incorporates all
agreements of the parties with respect to the subject matter hereof, and
supersedes all prior agreements and understandings of the parties, whether oral
or written, pertaining to the subject matter hereof.

     14.7 Modifications: This Sublease may be modified or amended only by an
instrument in writing, executed by both parties in interest hereunder.

     14.8 Governing Law; Severability: This Sublease shall be governed by and
construed in accordance with the laws of the State of Colorado as that is where
the Sublease Premises are located. If any term or provision of this Sublease is
found by a court of competent jurisdiction to be void or unenforceable, such
term or provision shall be deemed severed from the remainder of the terms and
provisions of this Sublease, and such remainder shall remain in full force and
effect, according to its terms, to the extent permitted by law.

     14.9 Enforcement of Rights: If Landlord defaults in any of its obligations
under the .Master Lease, Sublessee shall be entitled to participate with
Sublessor in any action undertaken by Sublessor in the enforcement of
Sublessor’s rights against the Landlord. If Sublessor fails to take action
promptly, whether legal action or otherwise, for the enforcement of Sublessor’s
rights against Landlord, or fails to diligently pursue such action to
completion (but Sublessor shall have no obligation to appeal any decisions),
Sublessee shall have the right, at its own cost and expense, to take such
action in its own name. With respect to any such action taken by Sublessee,
Sublessor shall provide reasonable cooperation to Sublessee for purposes only
of enforcing Tenant’s rights under the Master Lease against Landlord. All
rights of Sublessor under the Master Lease with respect to the Sublease
Premises shall be and are hereby, to the extent permitted by applicable law and
the Master Lease, conferred upon Sublessee solely for this purpose, and
Sublessee shall be subrogated to such rights to the extent permitted by
applicable law and the Master Lease and to the extent they apply to the
Sublease Premises. Sublessee shall defend, indemnify and hold Sublessor
harmless from all claims, costs and liabilities, including attorney’s fees and
costs, arising out of or in connection with any such action by Sublessee.

     14.10 Effectiveness: Consent of Landlord: Non-Disturbance: This Sublease
shall be of no force or effect unless and until each party hereto has executed
this Sublease and Landlord and Sublessor have executed the Consent to Sublease,
which is attached hereto as Exhibit D. If Sublessee is required to cure a
default caused by Sublessor in order to maintain occupancy of the Sublease
Premises, Sublessor agrees to reimburse Sublessee for all amounts reasonably
expended by Sublessee in curing Sublessor’s default.

12

 

     14.11 Counterparts: Facsimile: This Sublease may be executed by the
Sublessor and Sublessee in counterparts and when so executed, such counterparts
taken together shall be deemed to be a full and complete contract between the
parties. The Consent to Sublease may be executed by the Landlord and Sublessor
and when so executed, such counterparts taken together shall be deemed to be a
full and complete contract between the parties. Signatures may be evidenced by
facsimile and this Sublease shall be binding between the parties.

     14.12 Reasonableness Standard of Approvals. Any provision of this Sublease
requiring the approval or consent of either party shall be deemed to require
that such consent or approval shall not be unreasonably withheld, delayed or
conditioned.

	 	 	 
	Designated Address for Sublessee:

	 	SUBLESSEE:
	 
	 	 
	

	 	VESTURE ENTERPRISES, LLC
	 
	 	 
	

	 	By: /s/ John C. Herbers
	

	 	Name. John C. Herbers
	

	 	Title: Manager
	 
	 	 
	

	 	INTEGRATED FINANCIAL SYSTEMS, INC.
	 
	 	 
	

	 	By: /s/ John C. Herbers
	

	 	Name: John C. Herbers
	

	 	Title: President & CEO
	 
	 	 
	Designated Address for Sublessor:

	 	SUBLESSOR:
	 
	 	 
	PartMiner, Inc.

	 	PARTMINER, INC.
	Attn: Chief Administrative Officer and General Counsel
	 	 
	80 Ruland Road

	 	By: /s/ Michael R. Manley
	Melville, New York 11747

	 	Name: Michael Re. Manley
	Facsimile: (631) 501-2880

	 	Title: President

13

 

EXHIBIT A-1

PRIME LEASE PREMISES

See Attached.

14

 

MASTER LEASE

See attached.

13

15

 

PEAKVIEW

LEASE

     THIS LEASE (this “Lease”) is made as of` September 5, 2000 by and between

	 	 	 
	“Landlord”

	 	RIGGS & COMPANY, a division of Riggs Bank N.A., as Trustee of the
Multi-Employer Property Trust, a trust organized under 12 C.F.R. Section
9.18
	 
	 	 
	

	 	and
	 
	 	 
	“Tenant”

	 	PARTMINER, INC.

SECTION 1: DEFINITIONS

	1.1	 	Definitions: Each underlined term in this section shall have the meaning set forth next to
that underlined term.
	 
	1.2	 	Access Laws: The Americans With Disabilities Act of 1990 (including the Americans with
        .Disabilities Act Accessibility Guidelines for Building and Facilities)
and alt other Governmental
Requirements relating to the foregoing.
	 
	1.3	 	Additional Rent: Defined in paragraph captioned “Additional Rent”.
	 
	1.4	 	Base Amount Allocable to the Premises: Defined in paragraph captioned “Additional Rent”.
	 
	1.5	 	Base Rent: Base Rent shall be as follows:

	 	(a)	 	from the Commencement Date through MONTH TWO 2); $0.00 per rentable
square foot
	 
	 	(b)	 	MONTH THREE (3) through MONTH THIRTY-EIGHT (38); $17.68 per rentable
square foot
	 
	 	(c)	 	MONTH THIRTY-NINE (39) through MONTH SIXTY-TWO (62); $18.43 per
rentable
square foot

	1.6	 	Brokers: Tenant was represented in this transaction by C8 RICHARD ELLIS,
INC., a licensed
real estate broker.
Landlord was represented in this transaction by TRAMMELL CROW DENVER,
INC., a
licensed real estate broker.
	 
	1.7	 	Building: The building located on the Land at 7807 PEAKVIEW AVENUE.
DENVER COLORADO, commonly known as PEAKVIEW OFFICE PLAZA and containing
approximately 96,269 rentable square feet.
	 
	1.8	 	Business Day: Calendar days, except for Saturdays and Sundays and holidays when banks
are closed in Washington, D.C.
	 
	1.9	 	Claims: An individual and collective reference to any and alt claims, demands, damages,
injuries, losses, liens, liabilities, penalties, fines, lawsuits,
actions, other proceedings and
expenses (including reasonable attorneys’ fees and expenses incurred in
connection with the
proceeding whether at trial or on appeal).
	 
	1.10	 	Commencement Date: The earlier to occur of: (a) the date of Substantial
Completion; or (b) the date on which Tenant takes possession of the
Premises.
	 
	1.11	 	Intentionally deleted.

16

 

	1.12	 	Estimated Operating Costs Allocable to the Premises: Defined in paragraph
captioned “Additional Rent”.
	 
	1.13	 	Events of Default: One or more of those events or states of facts
defined in the paragraph captioned “Events of Default’.
	 
	1.14	 	Governmental Agency: The United States of America, the state in which
the Land is located, any county, city, district, municipality or other
governmental subdivision, court or agency or quasi-governmental agency
having jurisdiction over the Land and any board, agency or authority
associated with any such governmental entity, including the fire
department having jurisdiction over the Land.
	 
	1.15	 	Governmental Requirements: Any and ail statutes, ordinances, codes,
laws, rules, regulations, orders and directives of any Governmental
Agency as now or later amended.
	 
	1.16	 	Hazardous Substances: Asbestos, PCBs, petroleum or petroleum-based
chemicals or substances, urea formaldehyde or any chemical, material,
element, compound, solution, mixture, sub: stance or other matter of any
kind whatsoever which is now or later defined, classified, listed,
designated or regulated as hazardous, toxic or radioactive by any
Governmental Agency.
	 
	1.17	 	Land: The land upon which the Building is located in ARAPAHOE County,
COLORADO State, as legally described in Exhibit A attached to this Lease.
	 
	1.18	 	Landlord: The trust named on the first page of this Lease, or its
successors and assigns as provided in paragraph captioned “Assignment by
Landlord”.
	 
	1.19	 	Landlord’s Agents: Any and all partners, officers, agents, employees,
trustees, investment advisors and consultants of Landlord.
	 
	1.20	 	Lease Term: Commencing on the Commencement Date, and ending SIXTY-TWO
(621 months later, provided that, if the Commencement Date is a date other
than the first day of a calendar month, the Lease Term shall be extended
by the number of days remaining in the month in which the Commencement
Date occurs.
	 
	1.21	 	Manager: TRAMMELL CROW DENVER. INC., or its replacement as specified by
written notice from Landlord to Tenant.
	 
	1.22	 	Manager’s Address: 7535 EAST HAMPDEN AVENUE, SUITE 650, DENVER, COLORADO
8023 1 , which address may be changed by written notice from Landlord to Tenant.
	 
	1.23	 	Operating Costs: Defined in paragraph captioned “Additional Rent’”.
	 
	1.24	 	Operating Costs Allocable to the Premises: Defined in paragraph captioned “Additional Rent”.
	 
	1.25	 	Parking Ratio: 4.9 stalls per 1,000 USABLE square feet of the Premises.
	 
	1.26	 	Permitted Use: GENERAL OFFICE, so long as such use is consistent with
Governmental Requirements and with first-class buildings of the same or
similar use as the Building located in the metropolitan area in which the
Building is located.
	 
	1.27	 	Plans and Specifications: (a) Those certain plans and specifications for
the Tenant Improvements as listed in Exhibit C and any modifications to
them approved in writing by Landlord and Tenant; or (b) if Exhibit C does
not include a listing of such plans and specifications, then such plans
and

17

 

	 	 	specifications shall be prepared by Tenant (the ‘Preparing Party”) and
delivered to Landlord (the “Receiving Party) and approved by Landlord and
Tenant as set forth in the paragraph captioned “Plans and Specifications”.
	 
	1.28	 	Prepaid Rent: $78,216.32, to be applied toward Base Rent for the first TWO
(2) calendar
months of the Lease Term or to the first TWO f 2) MONTHS in which full
rent is due.
	 
	1.29	 	Premises: All of the third floor of the Building depicted on the plan
attached to this Lease as Exhibit B. The Premises are anticipated to
consist of approximately 24,851 rentable square feet. On or about the
Commencement Date, Landlord shall re-measure the rentable square footage
of the Premises using the then practiced BOMA guidelines for calculating
rentable square feet, and the results of such re-measurement shall be
provided to Tenant and shall be binding and conclusive on Tenant for all
purposes under this Lease.
	 
	1.30	 	Prime Rate: Defined in paragraph captioned “Default Rate”.
	 
	1.31	 	Project: The Building and any related buildings constructed on the Land.
	 
	1.32	 	Property Taxes: (a) Any form of ad valorem real or personal property tax
or assessment imposed by any Governmental Agency on the Land, Building,
related improvements or any personal property owned by Landlord associated
with such Land, Building or improvements; (b) any other form of tax or
assessment, license fee, license tax, tax or excise on rent or any other
levy, charge, expense or imposition made or required by any Governmental
Agency on any interest of Landlord in such Land, Building, related
improvements or personal property; (c) any fee for services charged by any
Governmental Agency for any services such as fire protection, street,
sidewalk and road maintenance, refuse collection, school systems or other
services provided or formerly provided to property owners and residents
within the general area of the Land; (d) any governmental impositions
allocable to or measured by the area of any or all of such Land, Building,
related improvements or personal property or the amount of any base rent,
additional rent or other sums payable under any lease for any or all of
such Land, Building, related improvements or personal property, including
any tax on gross receipts or any excise tax or other charges levied by any
Governmental Agency with respect to the possession, leasing, operation,
maintenance, alteration, repair, use or occupancy of any or all of such
Land, Building, related improvements, personal property or the rent earned
by any part of or interest in such Land, Building, related improvements or
personal property; (e) any impositions by any Governmental Agency on any
transaction evidenced by a lease of any or all of such Land, Building,
related improvements or personal property or charge with respect to any
document to which Landlord is a party creating or transferring an interest
or an estate in any or all of such Lands, Building, related improvements
or personal property; and (f) any increase in any of the foregoing based
upon construction of improvements or change of ownership of any or all of
such Land, Building, related improvements or personal property. Property
Taxes shall not include taxes on Landlord’s net income or any inheritance,
estate or gift taxes.
	 
	1.33	 	Punch List Work: Minor items of repair, correction, adjustment or completion as such
phrase is commonly understood in the construction industry in the metropolitan area in
which the Land is located.
	 
	1.34	 	Security Deposit: Tenant shall supply Landlord with an irrevocable standby Letter of Credit
in the amount of Eight Hundred Thirty-Two Thousand Five Hundred Eight and 50/100
Dollars ($832,508.50) to be issued by a national bank reasonably acceptable to Landlord.
Said letter of credit shall be reduced each anniversary of the lease Commencement Date in
five (5) equal installments of the original principal amount.
	 
	1.35	 	Substantial Completion: The date that the Tenant Improvements have been completed
substantially in accordance with the Plans and Specifications, subject to Punch List Work.

18

 

	1.36	 	Tenant: The person or entity(ies) named on the first page of this Lease.
	 
	1.37	 	Tenant Alterations: Defined in paragraph captioned “Tenant Alterations”.
	 
	1.38	 	Tenant Improvement Allowance: The maximum amount to be expended by Landlord, if any,
for the cost of Tenant Improvements (including architectural, engineering, permitting and
space planning fees and construction management fees), which maximum shall not exceed
SIX HUNDRED SEVENTY THOUSAND NINE HUNDRED SEVENTY-SEVEN AND ZERO ONE
HUNDREDTHS Dollars 05700,977.00).
	 
	1.39	 	Tenant improvements: Those alterations or improvements to the
Premises as appear and are depicted in the Plans and Specifications. Upon
Tenant’s written request, LANDLORD SHALL ALSO AMORTIZE UP TO AN ADDITIONAL
Seventy-four thousand five hundred fifty-three and zero one-hundredths
dollars ($74,533.00) APPLICABLE TO TENANT IMPROVEMENT WORK. SAID MONEY
SHALL BE AMORTIZED AT AN ANNUAL INTEREST RATE OF ELEVEN PERCENT(‘ 1 %) AND
SHALL BE PAID TO LANDLORD MONTHLY WITH BASE RENT PAYMENT and added to the
Security Deposit. .
	 
	1.40	 	Tenant’s Agents: Any and all officers, partners, contractors,
subcontractors, consultants, licensees, agents, concessionaires,
subtenants, servants, employees, customers, guests, invitees or visitors
of Tenant. .
	 
	1.41	 	Tenant’s Pro Rata Share is TWENTY-FIVE AND EIGHT TENTHS PERCENT (25.8%).
	 
	1.42	 	Year: A calendar year commencing January 1 and ending December 31.

SECTION 2: PREMISES AND TERM

	2.1	 	Lease of Premises. Landlord leases the Premises to Tenant, and Tenant
leases the Premises from Landlord, upon the terms and conditions set forth
in this Lease.
	 
	2.2	 	Lease Term. The Lease Term shall be for the period stated in the
definition of that term, unless earlier terminated as provided in this
Lease.
	 
	2.3	 	Plans and Specifications. If clause (b) of the definition of Plans and
Specifications is applicable, then the Preparing Party shall deliver the
plans and specifications for the Tenant Improvements to the Receiving
Party. Upon receipt of the proposed plans and specifications, the
Receiving Party and Preparing Party shall proceed pursuant to Exhibit 1,
Work Letter and Construction Agreement.
	 
	2.4	 	Commencement Date. Landlord shall notify Tenant in writing of Substantial
Completion. If Tenant believes that Substantial Completion has not
occurred, Tenant shall notify Landlord in writing of its objections within
ten (10) Business Days after its receipt of the Landlord’s notice
described in the preceding sentence. Landlord shall have a reasonable time
after its receipt of Tenant’s notice in which to take such action as may
be necessary to achieve Substantial Completion, and shall notify Tenant in
writing when such has been completed. Taking of possession by Tenant shall
establish the Commencement Date as specified in the definition of that
term and the establishment of such fact upon the taking of possession
shall occur even if Tenant disputes whether Substantial Completion has
occurred or attempts to condition or qualify the taking of possession.
Such taking of possession shall further establish that the Premises are in
good and satisfactory condition when possession was so taken and the
Commencement Date has occurred. Tenant acknowledges that no
representations as to the condition of the Premises have been made by
Landlord, unless such are expressly set forth in this Lease. In the event
of any dispute as to whether Substantial Completion has occurred, the
certificate of Landlord’s architect shall be conclusive. If on the
Commencement Date, Punch List

19

 

	 	 	Work remains to be completed, Landlord and Tenant shall agree on such
Punch List Work prior to occupancy by Tenant and Landlord will promptly
complete it after the Commencement Date. In no event shall Tenant’s
refusal or failure to agree on the nature and extent of Punch List Work or
the existence of items of Punch List Work delay or postpone the occurrence
of the Commencement Date. Tenant shall make no changes to the Plans and
Specifications or the work reflected in the Plans and Specifications
without the consent of Landlord.
	 
	2.5	 	Tenant’s Contribution to Tenant Improvement Costs. If the cost of the
Tenant Improvements exceeds the Tenant Improvement Allowance, Tenant shall
pay to Landlord such excess within ten (70) Business Days after demand by
Landlord. If Tenant fails to pay to Landlord the cost of any such excess
Tenant Improvements as and when due, Landlord may elect to suspend work on
the Tenant Improvements pending such timely payment, and the Commencement
Date shaft be deemed to have occurred on the date that the Tenant
improvements would have achieved Substantial Completion absent such
suspension of work. All Tenant Improvements, regardless of which party
constructed them, shall become the property of Landlord and shall remain
upon and be surrendered with the Premises upon the expiration or earlier
termination of this Lease provided that, at Landlord’s election and upon
notice to Tenant at the time the Plans and specifications are approved,
Tenant shall be required to remove all or any portion of the Tenant
Improvements (other than building standard items) upon the expiration or
earlier termination of this Lease.
	 
	2.6	 	Memorandum of Commencement Date. The parties shall execute a Memorandum
of Commencement Date in the form attached as Exhibit D. In no event shall
Tenant record this Lease or the Memorandum of Commencement Date.
	 
	2.7	 	Use and Conduct of Business. The Premises are to be used only for the
Permitted Uses, and for no other business or purpose without the prior
consent of Landlord- Landlord makes no representation or warranty as to
the suitability of the Premises for Tenant’s intended use. Tenant shall,
at its own cost and expense, obtain and maintain any and all licenses,
permits, and approvals necessary or appropriate for its use, occupation
and operation of the Premises. Tenant’s inability to obtain or maintain
any such license, permit or approval necessary or appropriate for its use,
occupation or operation of the Premises shall not relieve it of its
obligations under this Lease, including the obligation to pay Base Rent
and Additional Rent. No act shall be done in or about the Premises that is
unlawful or that will increase the existing rate of insurance on any or
all of the Land or Building. Tenant shall not commit or allow to be
committed or exist: 1a) any waste upon the Premises, (b) any public or
private nuisance, or (c) any act or condition which disturbs the quiet
enjoyment of any other tenant in the Building, violates any of Landlord’s
contracts affecting any or all of the Land or Building, creates or
contributes to any work stoppage, strike, picketing, labor disruption or
dispute, interferes in any way with the business of Landlord or any other
tenant in the Building or with the rights or privileges of any
contractors, subcontractors, licensees, agents, concessionaires,
subtenants, servants, employees, customers, guests, invitees or visitors
or any other persons lawfully in and upon the Land or Building, or causes
any impairment or reduction of the good will or reputation of the Land or
Building. Tenant shall not, without the prior consent of Landlord, use any
apparatus, machinery, device or equipment in or about the Premises which
will cause any substantial noise or vibration or any increase in the
normal consumption level of electric power. If any of Tenant’s apparatus,
machinery, devices or equipment should disturb the quiet enjoyment of any
other tenant in the Building, then Tenant shall provide, at its sole cost
and expense, adequate insulation or take other such action, including
removing such apparatus, machinery, devices or equipment, as may be
necessary to eliminate the disturbance. No food or beverage dispensing
machines shall be installed by Tenant in the Premises without the prior
written consent of Landlord or except as expressly shown on the floor plan
attached hereto.
	 
	2.8	 	Compliance with Governmental Requirements and Rules and Regulations.
Tenant shall comply with all Governmental Requirements relating to its
use, occupancy and operation of the Premises and

20

 

	 	 	shall observe such reasonable rules and regulations as may be adopted and
published by Landlord from time to time for the safety, care and
cleanliness of the Premises and the Building, including the Rules and
Regulations attached to this Lease as Exhibit E.
	 
	2.9	 	Option to Renew. (a) Subject to the terms and conditions set forth below,
Tenant shall have the option to extend the Lease Term as to all, but not
less than all, of the then-existing Premises, for one (1) extension period
of five (5) years. In order to exercise the option to extend. Tenant must
satisfy all of the following requirements: (i) Tenant shall have provided
Landlord with written notice of Tenant’s intention to exercise the option
to extend, which notice must be received by Landlord no earlier than
twelve (12) months and not later than nine (9) months before the
expiration of the initial Lease Term, (ii) as of the date that Tenant
notifies Landlord of Tenant’s intention to exercise the option and as of
the expiration of the initial Lease Term, there shall be no Event of
Default by Tenant under this Lease; and (iii) at no time prior to the
expiration of the initial Lease Term, shall there have been any assignment
or subletting of all or any portion of the Premises except for assignments
or sublettings described in Section 4.18.7.
	 
	(b)	 	In the event the initial Lease Term is extended as provided in this
paragraph, Tenant shall, upon request of Landlord, evidence any such
extension through the execution of a lease amendment to be provided by
Landlord. The extension shall be on the same terms, covenants and
conditions as set forth in this Lease; provided that, the monthly Base
Rent during the extension period shall be the greater of (i) the fair
market rental (the “Fair Market Rental Rate”) then in effect for similar
class A office properties, of equivalent size, at the commencement of the
extension period, as mutually determined by Landlord and Tenant, or (ii)
the Base Rent for the last year of the preceding term.
	 
	(c)	 	If the parties cannot agree on the Fair Market Rental Rate within
fifteen (15) calendar days of receipt by Landlord of the notice of intent
to exercise the option to extend, Landlord shall, no more than fifteen
(15) calendar days thereafter, select an independent M.A.I. real estate
appraiser (certified in the State of Colorado) with at least ten (1 0)
years experience in the Denver, Colorado commercial real estate market,
who shall prepare a written appraisal of the Fair Market Rental Rate using
the assumptions described in this paragraph. The appraisal report shall be
completed and delivered to Tenant and Landlord within fifteen (151
calendar days from the date Landlord ;elects the appraiser. Such
appraiser’s determination of Fair Market Rental Rate shall be
determinative unless Tenant disputes it as provided in the next sentence.
If Tenant disputes such appraisal, Tenant shall within ten (10) calendar
days following delivery of the appraisal report, deliver to Landlord
written notice (a) that Tenant disputes such appraisal report, and (b) of
the identity of the appraiser selected by Tenant meeting the
qualifications set forth in this paragraph. The appraiser selected by
Tenant shall submit his appraisal report of the Fair Market Rental Rate
using the assumptions described in this paragraph within fifteen (15)
calendar days following the delivery of Tenant’s notice to Landlord
disputing the initial appraisal. If the two appraisals are within five
percent (5%) of each other (based on the higher number), the Fair Market
Rental Rate shall be that set forth in the appraisal report of Landlord’s
appraiser. If not, then within ten (101 calendar days after the delivery
of the second appraisal, the two appraisers shall appoint a third
appraiser meeting the qualifications set forth in this paragraph, and the
third appraiser shall deliver his decision within ten (10) calendar days
following his selection and acceptance of the appraisal assignment. The
third appraiser shall be limited in authority to selecting, in this
opinion, which of the two earlier appraisal determinations best reflects
the Fair Market Rental Rate under the assumptions set forth in this
paragraph. The third appraiser must choose one of the two earlier
appraisals, and, upon doing so, the third appraiser’s determination shall
be the controlling determination of the Fair Market Rental Rate. Each
party shall pay the costs and fees of the appraiser it selected; if a
third appraiser is selected, the party whose appraisal is not selected to
be the Fair Market Rental Rate by said third appraiser shall pay all of
said appraiser’s costs and fees. 2.10 Right of First Refusal. Subject to
the terms and conditions set forth in this subparagraph, Tenant shall have
a right of first refusal to lease additional space (“Additional Space”) on
the second floor of the Building, at any time during the Lease Term, after
the initial occupancy of such space terminates and as such space becomes
available. In order to exercise such right of first refusal: (a) as of the
date that Landlord provides Tenant with the notice triggering the right of
first

21

 

	 	 	refusal, and as of the Commencement Date applicable to the Additional
Space, there shall be no Event of Default by Tenant under this Lease and
there shall have occurred no act or omission which, with the passage of
time or the giving of notice, or both, would become and Event of Default
by Tenant under this Lease; and (b) at no point in time prior to the
Commencement Date applicable to the Additional Space shall Tenant have
assigned or subleased all or any part of the Premises or the Additional
Space to another party except for assignments or sublettings described in
Section 4.16.7. If Landlord receives a bona fide offer to lease the
Additional Space, Landlord shall notify Tenant in writing of the terms of
such offer, including the commencement date, base rent, tenant
improvements, and other basic business terms. Tenant shall have ten (10)
Business Days from receipt of such notice to exercise its right of first
refusal. If Tenant exercises its right of first refusal to lease the
Additional Space, it shall thereafter lease the Additional Space under the
terms of this Lease, with a Tenant Improvement Allowance proportionate to
the Tenant Improvement Allowance described in Section 1.38 above, as
supplemented by the terms set forth in Landlord’s notice triggering the
right of first refusal. If the Tenant does not exercise its right of first
refusal within the time allotted, Landlord may, in its sole discretion,
lease the Additional Space pursuant to the bona fide offer.

SECTION 3: RASE RENT, ADDITIONAL RENT AND OTHER SUMS PAYABLE UNDER LEASE

	3.1	 	Payment of Rental. Tenant agrees to pay Base Rent, Additional Rent and
any other sum due under this Lease to Landlord without demand, deduction,
credit, adjustment or offset of any kind or nature, in lawful money of the
United States when due under this Lease, at the offices of Manager at
Manager’s Address, or to such other party or at such other place as
Landlord may from time to time designate in writing.
	 
	3.2	 	Base Rent. On execution of this Lease, Tenant shall pay to Landlord the
amount specified in the definition of Prepaid Rent for the month specified
in the definition of that term. Tenant agrees to pay Base Rent to Landlord
without demand, in advance on or before the first day of each calendar
month of the Lease Term. Base Rent for any partial month at the beginning
or end of the Lease Term shall be prorated. Base Rent for any partial
month at the beginning of the Lease Term shall be paid by Tenant on the
Commencement Date.
	 
	3.3	 	Letter of Credit. As security for the full and faithful payment of all
sums due under this Lease and the full and faithful performance of every
covenant and condition of this Lease to be performed by Tenant, prior to
the Commencement Date, Tenant shall furnish an unconditional irrevocable
Letter of Credit payable at sight (“Letter of Credit”) in the amount of
$832,508.50 from a national bank reasonably acceptable to Landlord payable
to Landlord or Landlord’s assigns as “Beneficiary”. The Letter of Credit
shall be effective as of the Commencement Date and will expire on 12:00
midnight the day before the annual anniversary of the Commencement Date
each year thereafter throughout the Lease Term. The Letter of Credit shall
be automatically extended annually not less than thirty (30) days prior to
the annual expiration date, or if not extended by such date, Tenant shall
cause such Letter of Credit to be funded on the expiration date. Tenant’s
failure to automatically extend or fund as herein provided shall
constitute an Event of Default under this Lease. Tenant may reduce the
amount of the Letter of Credit, at a 2096 annual rate, on each of the
anniversary dates of the Commencement Date.
	 
	 	 	     Landlord shall be entitled to draw on the Letter of Credit, at any
time during the Lease Term after an Event of Default by Tenant under the
terms of this Lease, by presenting the original Letter of Credit to the
issuing bank. Partial draws shall be permitted.
	 
	 	 	     Tenant shall, within fifteen (15) days after Landlord’s demand,
restore the amount of the Letter of Credit drawn so that the Letter of
Credit is restored to the original amount existing prior to the

22

 

	 	 	default. If Tenant does not restore the Letter of Credit to its original
amount within the required time frame, such non-restoration shall be
considered an event of default under this Lease.
	 
	 	 	     Additionally, Landlord’s use or application of all or any portion of
the proceeds of the Letter of Credit shall not impair any other rights or
remedies provided under this Lease or under applicable law and shall not
be construed as a payment of liquidated damages. If Tenant shall have fully complied with all of the covenants and conditions of this Lease, the
Letter of Credit shall be returned to Tenant or, if Landlord has drawn on
the Letter of Credit, the remaining proceeds of the Letter of Credit shall
be repaid to Tenant, without interest, within thirty (30) Business Days
after the expiration of this Lease. In the event any bankruptcy,
insolvency, reorganization or other creditor debtor proceedings shall be
instituted by or against Tenant, the proceeds of the Letter of Credit
shall be deemed to be applied first to the payment of Base Rent,
Additional Rent and all other sums Payable under this Lease to Landlord
for all periods prior to the institution of such proceedings and the
balance, if any, may be retained by Landlord and applied against
Landlord’s damages. In the event of a sale or transfer of Landlord’s
estate or interest in the Land and Building, Landlord shall have the right
to transfer the Letter of Credit to the vendee or the transferee, and
Landlord shall thereafter be considered released by Tenant from all
liability for the return of the Letter of Credit. Tenant shall look solely
to the transferee for the return or any proceeds thereof, and it is agreed
that, all of the foregoing shall apply to every transfer or assignment
made of the Letter of Credit to a new transferee. No mortgagee or
purchaser of any or all of the Building at any foreclosure proceeding
brought under the provisions of any mortgage shall (regardless of whether
the Lease is at the time in question subordinated to the lien of any
mortgage) be liable to Tenant or any other person for any or all of such
sum (or any other or additional security deposit or other payment made by
Tenant under the provisions of this Lease), unless Landlord has actually
delivered it in cash to such mortgagee or purchaser, as the case may be.
	 
	 	 	     No right or remedy available to Landlord in this Lease shall preclude
or extinguish any other right to which Landlord may be entitled. It is
understood that if Tenant fails to perform its obligations and to take
possession of the Premises as provided in this Lease, the Prepaid Rent and
the Letter of Credit shall not be deemed liquidated damages. Landlord may
apply such sums to reduce Landlord’s damages and such application of funds
shall not preclude Landlord from recovering from Tenant all additional
damages incurred by Landlord. 3.4 Additional Rent. Definitions of certain
terms used in this paragraph are set forth in subparagraph 3.4.5. Tenant
agrees to pay to Landlord additional rent as computed in this paragraph
(individually and collectively the “Additional Rent”):
	 
	3.4.1	 	Rental Adjustment for Estimated Operating Costs. Landlord shall furnish
Tenant a written statement of Estimated Operating Costs Allocable to the
Premises for each Year and the amount payable monthly by Tenant for such
Costs shall be computed as follows: one-twelfth (1/12) of the amount, if
any, by which the Estimated Operating Costs Allocable to the Premises
exceeds the Base Amount Allocable to the Premises shall be Additional Rent
and shall be paid monthly by Tenant for each month during such Year after
the Commencement Date. If such written statement is furnished after the
commencement of the Year (or as to the first Year during the Lease Term,
after the Commencement Date), Tenant shall also make a retroactive
lump-sum payment to Landlord equal to the monthly payment amount
multiplied by the number of months during the Year for as to the first
Year during the Lease Term, after the Commencement Date) for which no
payment was paid. Notwithstanding the foregoing, Landlord reserves the
right, from time to time during each Year, to revise, based on a revised
reasonable estimate of such Costs, the Estimated Operating Costs Allocable
to the Premises and upon notice to Tenant of such revision, Tenant shall
adjust its payment to Landlord under this subparagraph 3.4.1 accordingly.
	 
	3.4.2	 	Actual Costs. After the close of each Year, Landlord shall deliver to
Tenant a written statement setting forth an itemization by category of the
Operating Costs Allocable to the Premises during the preceding Year. If
such Operating Costs Allocable to the Premises for any Year exceed the

23

 

	 	 	Estimated Operating Costs Allocable to the Premises paid by Tenant to
Landlord pursuant to subparagraph 3.4.1 for such Year, Tenant shall pay
the amount of such excess to Landlord within twenty (20) Business Days
after receipt of such statement by Tenant. If such statement shows the
Operating Costs Allocable to the Premises to be less than the Estimated
Operating Costs Allocable to the Premises Paid by Tenant to Landlord
pursuant to subparagraph 3.4.1, then the amount of such overpayment shall
be paid by Landlord to Tenant within twenty (20) Business Days following
the date of such statement or, at Landlord’s option, shall be credited
towards the installments) of Additional Rent next coming due from Tenant.
	 
	3.4.3	 	Determination. The determination of Operating Costs Allocable to the
Premises shall be made by Landlord.
	 
	3.4.4	 	Operating Cost Audit. Landlord shall maintain records concerning
estimated and actual Operating Costs Allocable to the Premises for no less
than thirty-six (36) months following the period covered by the statement
or statements furnished Tenant, after which time Landlord may dispose of
such records. Provided that Tenant is not then in default of its
obligation to pay Base Rent, Additional Rent or other payments required to
be made by it under this Lease beyond applicable notice and cure periods
and provided that Tenant is not otherwise in default under this Lease
beyond applicable notice and cure periods, Tenant may, at Tenant’s sole
cost and expense, cause a Qualified Person (defined below) to inspect
Landlord’s records. Such inspection, if any, shall be conducted no more
than once each Year, during Landlord’s normal business hours within one
hundred twenty (120) calendar days after receipt of Landlord’s written
statement of Operating Costs Allocable to the Premises for the previous
year, upon first furnishing Landlord at least fifteen (15) Business Days
prior written notice. Any errors disclosed by the review shall be promptly
corrected by Landlord; provided, however, that if Landlord disagrees with
any such claimed errors, Landlord shall have the right to cause another
review to be made by an auditor of Landlord’s choice. In the event the
results of the review of records (taking into account, if applicable, the
results of any additional review caused by Landlord) reveal that Tenant
has overpaid obligations for a preceding period, the amount of such
overpayment shall be credited against Tenant’s subsequent installment of
Base Rent, Additional Rent or other payments due to Landlord under the
Lease. In the event that such results show that Tenant has underpaid its
obligations for a preceding period, the amount of such underpayment shall
be paid by Tenant to Landlord with the next succeeding installment
obligation of estimated Operating Costs Allocable to the Premises. If the
actual Operating Costs Allocable to the Premises for any given Year were
improperly computed and if the actual Operating Costs Allocable to the
Premises are overstated by more than 5%, Landlord shall reimburse Tenant
for the cost of its audit. A “Qualified Person” means an accountant or
other person experienced in accounting for income and expenses of office
projects, who is engaged solely by Tenant on terms which do not entail any
compensation based or measured in any way upon any savings in Additional
Rent or reduction in Operating Costs Allocable to the Premises achieved
through the inspection process described in this subparagraph. 3.4.5 End
of Term. If this Lease shall terminate on a day other than the last day of
a Year, (a) Landlord shall estimate the Operating Costs Allocable to the
Premises for such Year predicated on the most recent reliable information
available to Landlord; (b) the amount determined under clause (a) of this
sentence shall be prorated by multiplying such amount by a fraction, the
numerator of which is the number of days within the Lease Term in such
Year and the denominator of which is 360; (c) the Base Amount Allocable to
the Premises shall be prorated in the manner described in clause (b); (d)
the clause (c) amount (i.e., the prorated Base Amount Allocable to the
Premises) shall be deducted from the clause (b) amount (i.e., the prorated
Operating Costs Allocable to the Premises); (e) if the clause (d) amount
exceeds the Estimated Operating Costs Allocable to the Premises paid by
Tenant for the last Year in the Lease Term, then Tenant shall pay the
excess to Landlord within ten (10) Business Days after Landlord’s delivery
to Tenant of a statement for such excess; and (f) if the Estimated
Operating Costs Allocable to the Premises paid by Tenant for the last Year
in the Lease Term exceeds the clause (d) amount, then Landlord shall
refund to Tenant the excess within the ten (10) Business Day period
described in clause (e) if Tenant is not

24

 

	 	 	then in default of any of its obligations under this Lease beyond
applicable notice and cure periods. Landlord’s and Tenant’s obligations
under this paragraph shall survive the expiration or other termination of
this Lease. 3.4.6 Definitions. Each underlined term in this subparagraph
shall have the meaning set forth next to that underlined term: Base Amount
Allocable to the Premises: O (Zero (0) if not filled in). Estimated
Operating Costs Allocable to the Premises: Landlord’s estimate of
Operating Costs allocable to the Premises for a Year to be given by
Landlord to Tenant pursuant to subparagraph 3.4.1. Operating Costs: All
expenses paid or incurred by Landlord for maintaining, operating, owning
and repairing any or all of the Land, Building, related improvements, and
the personal property used in conjunction with such Land, Building and
related improvements, including all expenses paid or incurred by Landlord
for: (a) utilities, including electricity, water, gas, sewers, fire
sprinkler charges, refuse collection, telephone charges, cable television
or other electronic or microwave signal reception, steam, heat, cooling or
any other service which is now or in the future considered a utility and
which are not payable directly by tenants in the Building; (b) supplies;
(c) cleaning and janitorial services (including window washing),
landscaping and landscaping maintenance (including irrigating, trimming,
mowing, fertilizing, seeding and replacing plants), snow removal and other
services; (d) security services, if any; (e) insurance and any applicable
deductibles: (f) management fees at competitive rates for the market; (g)
Property Taxes, tax consultant fees and expenses, and costs of appeals of
any Property Taxes; (h) services of independent contractors at competitive
rates for the market; (i) compensation (including employment taxes and
fringe benefits) of all persons who perform duties in connection with any
service, repair, maintenance, replacement or improvement or other work
included in this subparagraph at competitive rates for the market; (j)
license, permit and inspection fees; (k) assessments and special
assessments due to deed restrictions, declarations or owners associations
or other means of allocating costs of a larger tract of which the Land is
a part; (1) rental of any machinery or equipment; (m) audit fees and
accounting services related to the Building, and charges for the
computation of the rents and charges payable by tenants in the Building
(but only to the extent the cost of such fees and services are in addition
to the cost of the management fee); (n) the cost of improvements, repairs
or replacements; (o) maintenance and service contracts; (p) legal fees and
other expenses of legal or other dispute resolution proceedings unrelated
to specific tenants or tenant leases; (q) maintenance and repair of the
roof and roof membranes, (r) costs incurred by Landlord for compliance
with Access Laws, as set forth in the paragraph captioned ‘Access Laws’;
(s) elevator service and repair, if any; (t) business taxes and license
fees; and (all any other expense or charge which in accordance with
generally accepted accounting and management principles would be
considered an expense of maintaining, operating, owning or repairing the
Building. Without limiting the foregoing, Operating Costs shall include
replacement of roofs and roof membranes; exterior painting; parking area
resurfacing, resealing and restriping parking areas and driveways;
upgrading of the HVAC systems in the Building, and other capital
improvements; provided that, such capital improvements, whether installed
before or after the Commencement Date, shall be amortized with market
interest over their estimated useful lives as reasonably determined by
Landlord and only the amortization installments and interest attributable
to the Lease Term shall be an Operating Cost under this Lease. Exclusions
from Operating! Costs: Operating Costs shall not include any of the
following: (a) costs of repairs, restoration, replacements or other work to
the extent covered by insurance required to be carried by Landlord under
this Lease or paid by the proceeds of any condemnation award; (b) ground
rent; (c) interest and amortization of funds borrowed by Landlord for
items other than capital improvements which are specifically permitted
above; (d) leasing commissions and advertising and space planning expenses
incurred in procuring tenants; (e) allowances, concessions and other costs
and expenses incurred in completing, fixturing, furnishing, renovating or
otherwise improving, decorating or redecorating space for tenants
(including Tenant) or prospective occupants of the Building; (f)
Landlord’s general corporate overhead; (g) salaries, wages, or other
compensation paid to officers or executives of Landlord in their
capacities as officers and executives; (h) the rent for Landlord’s on-site
management or leasing office, or any other offices or spaces of Landlord
or any related entity; (i) costs or expenses of utilities directly metered
to tenants of the Building and payable separately by such tenants; (j)
costs incurred (less costs of recovery) for any item to the extent

25

 

	 	 	covered by a manufacturer’s, materialman’s, vendor’s or contractor’s
warranty and paid by such manufacturer, materialman, vendor or contractor;
(k) costs, fines, interest, penalties, legal fees or costs of litigation
incurred due to the late payments of taxes, utility bills and other costs
incurred by Landlord’s failure to make such payments when due; and (1)
Landlord’s income and franchise taxes, special assessments and other
business taxes except those business taxes which relate solely to the
operation of the Building. Gross Up: If less than one hundred percent
(100%) of the net rentable area of the Building is occupied by tenants at
all times during any Year (including the Base Year), then Operating Cost
for such Year shall include all additional costs and expenses that
Landlord reasonably determines would have been incurred had one hundred
percent (100%) of the Building been occupied at all times during such Year
by tenants.
	 
	 	 	Operating Costs Allocable to the Premises: The product of Tenant’s
Pro Rata Share times
Operating Costs.
	 
	3.4.7	 	Tenant’s Costs. Tenant agrees to reimburse or pay Landlord within twenty
(20) Business Days after invoice from Landlord for (a) any cleaning
expenses related to the Premises incurred by Landlord, including carpet
cleaning, garbage and trash removal expenses, over and above the normal
cleaning provided by Landlord or due to the presence of a lunchroom or
kitchen or food or beverage dispensing machines within the Premises, (b)
any expense incurred by Landlord for usage in the Premises of heating,
ventilating and air conditioning services, elevator services, electricity,
water, janitorial services, or any other services or utilities over and
above the normal usage for the Premises and (c) any expense incurred by
Landlord relating to or arising out of the usage by Tenant or Tenant’s
Agents of the public or common areas of the Building or Land, or any of
the equipment contained therein, which usage is over and above the normal
usage for such public or common areas or equipment. Landlord reserves the
right to install and activate separate metering of electricity, water or
other utilities to the Premises, and Tenant agrees to reimburse or pay
Landlord within twenty (20) Business Days after invoice from Landlord for
ail costs of such separate metering, in which case the Base Amount
Allocable to the Premises and Operating Costs shall be adjusted
accordingly.
	 
	3.4.8	 	Any sums payable under this Lease pursuant to this paragraph or
otherwise shall be Additional Rent and, in the event of nonpayment of such
sums, Landlord shall have the same rights and remedies with respect to
such nonpayment as it has with respect to nonpayment of the Base Rent due
under this Lease.
	 
	3.5	 	Utilities. Landlord shall have the sight from time to time to select the
company or companies providing electricity, gas, fuel, local telephone,
telecommunication and any other utility services to the Premises. Tenant
shall contract directly and pay for all water, gas, heat, light, power,
telephone, telecommunications, sewer, sprinkler charges and other
utilities used on or from the Premises together with any taxes, penalties,
surcharges or similar charges relating to such utilities. If any such
service is not separately metered to the Premises, the cast therefor shall
be an Operating Cost under this Lease. If Tenant desires to use the
services of a competitive local exchange telephone carrier or any other
telecommunications and/or Internet service provider, which carrier or
provider is not then providing its services to tenants in the Building,
and such carrier or provider seeks to install and/or operate any cabling,
conduits, lines, antennas, and/or other equipment, or otherwise have a
physical presence within or on any portion of the Land or Building, such
carrier or provider shall be permitted to install and/or operate its
cabling, conduits, lines, antennas, and/or other equipment, or otherwise
have a physical presence within or on the Land and/or Building only upon
entering into a telecommunications license agreement with Landlord, on
such terms and conditions as may be acceptable to Landlord in Landlord’s
sole discretion. No such license shall be required, however, for Tenant’s
use of any telecommunications services provided by telecommunications
providers which do not install and/or operate any cabling, conduits,
lines, antennas, and/or other equipment, or otherwise have a physical
presence, within or on the Land or Building.

26

 

	3.6	 	Holdover. If Tenant, without the prior consent of Landlord, holds over
after the expiration or earlier termination of the Lease Term, Tenant
shall be deemed to be occupying the Premises under a month-to-month
tenancy, which tenancy may be terminated as provided by the laws of the
state in which the Premises are located. During such tenancy, Tenant
agrees to pay to Landlord one and half times (1.5) the rate of Base Rent
in effect on the expiration or termination of the Lease Term, plus all
Additional Rent and other sums payable under this Lease, and to be bound
by all of the other covenants and conditions specified in this Lease, so
far as applicable. The preceding provisions shall not be construed as
consent for Tenant to hold over.
	 
	3.7	 	Late Charge. If Tenant fails to make any payment of Base Rent, Additional
Rent or other amount when due under this Lease, a late charge is
immediately due and payable by Tenant equal to four percent (4%) of the
amount of any such payment. Landlord and Tenant agree that this charge
compensates Landlord for the administrative costs caused by the
delinquency. The parties agree that Landlord’s damage would be difficult
to compute and the amount stated in this paragraph represents a reasonable
estimate of such damage. Assessment or payment of the late charge
contemplated in this paragraph shall not excuse or cure any Event of
Default or breach by Tenant under this Lease or impair any other right or
remedy provided under this Lease or under law.
	 
	3.8	 	Default Rate. Any Base Rent, Additional Rent or other sum payable under
this Lease which is not paid when due shall bear interest at a rate equal
to the lesser of: (a) the published prime rate of Riggs Bank N.A., or such
other national banking institution designated by Landlord if such bank
ceases to publish a prime rate (the “Prime Rate”), then in effect, plus
three (3) percentage points, or (b) the maximum rate of interest per annum
permitted by applicable law (the “Default Rate”), but the payment of such
interest shall not excuse or cure any Event of Default or breach by Tenant
under this Lease or impair any other right or remedy provided under this
Lease or under lave.

SECTION 4: GENERAL PROVISIONS

	4.1	 	Maintenance and Repair by Landlord.
	 
	4.1.1	 	Subject to the paragraphs captioned ‘Damage or Destruction’ and
“Condemnation”, Landlord shall maintain the public and common areas of the
Building in reasonably good order and condition, and shall make such
repairs thereto as become necessary after obtaining actual knowledge of
the need for such repairs, all costs of which shall be included in
Operating Costs, except ordinary wear and tear. Operating Costs shall not
include the cost of repairing damage occasioned by the act or omission of
Tenant or Tenant’s Agents which shall be paid for entirely by Tenant upon
demand by Landlord. In the event any or all of the Building becomes in
need of maintenance or repair which Landlord is required to make under
this Lease, Tenant shall promptly give written notice to Landlord, and
Landlord shall not be obligated in any way to commence such maintenance or
repairs until a reasonable time elapses after Landlord’s receipt of such
notice.
	 
	4.1.2	 	Notwithstanding anything in this Lease to the contrary, if Tenant
provides notice to Landlord of an event or circumstance which requires the
action of Landlord with respect to repairs and/or maintenance which are
Landlord’s responsibility pursuant to Section 4.1.1 above, which event or
circumstance materially or adversely affects the conduct of Tenant’s
business from the Premises, and Landlord fails to commence corrective
action within a reasonable period of time, given the circumstances, after
the receipt of such notice, but in any event not later than thirty (30)
days after receipt of such notice, then Tenant may proceed to take the
required action upon delivery of an additional five (5) calendar days’
notice to Landlord specifying that Tenant is taking such required action.
If such action was required under the terms of this Lease to be taken by
Landlord and was not commenced by Landlord within such five (5) calendar
day period, and thereafter diligently pursued to completion, then Tenant
shall be entitled to prompt reimbursement by Landlord of Tenant’s
reasonable costs and expenses in taking such action plus interest thereon
at the rate of prime plus two

27

 

	 	 	percent (2%). In the event Tenant takes such action, Tenant shall use only
those contractors used by Landlord in the Building for work unless such
contractors are unwilling or unable to perform, or timely perform, such
work, in which event Tenant may utilize the services of any other
qualified contractor which normally and regularly performs similar work in
comparable buildings. Promptly following completion of any work taken by
Tenant pursuant to the terms of this Section, Tenant shall deliver to
Landlord a detailed invoice of the work completed, the materials used and
the costs relating thereto. Within thirty (30) calendar days after receipt
of such invoice from Tenant along with the required documentation,
Landlord shall pay such amount expended by Tenant as set forth in such
invoice, or deliver a detailed written objection to Tenant of the payment
of such invoice. Landlord’s written objection to the payment of such
invoice shall set forth with reasonable particularity Landlord’s reasons
for its claim that such action did not have to be taken by Landlord
pursuant to the terms of this Lease or that the charges are excessive (in
which case Landlord shall pay the amount it contends would not have been
excessive). As Tenant’s sole remedy, Tenant may claim a default by
Landlord, provided that in no event shall Tenant be permitted to terminate
this Lease based upon such a default by Landlord. Tenant shall have no
right to deduct or offset against sums payable by Tenant under this Lease.
4.2 Maintenance and Repair by Tenant. Except as is expressly set forth as
Landlord’s responsibility pursuant to the paragraph captioned “Maintenance
and Repair by Landlord,” Tenant shall at Tenant’s sole cost and expense
keep and maintain the Premises in reasonably good condition and repair,
including interior painting, cleaning of the interior side of all exterior
glass, plumbing and utility fixtures and installations, carpets and floor
coverings, all interior wall surfaces and coverings including tile and
paneling, replacement of all broken windows (including without limitation
any exterior windows), exterior and interior doors, roof penetrations and
membranes in connection with any Tenant installations on the roof
including satellite dishes, light bulb replacement and interior
preventative maintenance. If Tenant fails to maintain or repair the
Premises in accordance with this paragraph, then landlord may, but shall
not be required to, enter the Premises upon seven (7) Business Days prior
written notice to Tenant (or immediately without any notice in the case of
an emergency) to perform such maintenance or repair at Tenant’s sole cost
and expense. Tenant shall pay to Landlord the cost of such maintenance or
repair plus a fifteen percent (15%) administration fee within ten (10)
Business Days of written demand from Landlord. Tenant shall, at its sole
cost and expense, enter into a regularly scheduled preventative
maintenance/service contract with a maintenance contractor for servicing
all hot water, heating and air conditioning systems and equipment located
within or dedicated solely to the Premises. The maintenance contractor and
the contract must be approved in advance by Landlord. The service
contracts must include all services recommended by the equipment
manufacturer within the operation/maintenance manual and shall become
effective (and a copy of such contract or contracts delivered to Landlord)
within thirty (30) days following the date Tenant takes possession of the
Premises.
	 
	4.3	 	Common Areas/Security. The common areas of the Building shall be subject
to Landlord’s sole management and control. Without limiting the generality
of the immediately preceding sentence, provided that Landlord continues to
provide access to the Premises, Landlord reserves the exclusive right as
it deems necessary or desirable to install, construct, remove, maintain
and operate lighting systems, facilities, improvements, equipment and
signs on, in or to all parts of the common areas; change the number, size,
height, layout, or locations of walks, driveways and truckways or parking
areas now or later forming a part of the Land or Building; make
alterations or additions to the Building or common area; close temporarily
ail or any portion of the common areas to make repairs, changes or to
avoid public dedication; grant easements to which the Land will be
subject, replat, subdivide, or make other changes to the Land; place,
relocate and operate utility lines through, over or under the Land and
Building; and use or permit the use of all or any portion of the roofs of
the Building. Landlord has no duty or obligation to provide any security
services in, on or around the Premises, Land or Building, and Tenant
recognizes that security services, if any, provided by Landlord will be
for the sole benefit of Landlord and the protection of Landlord’s property
and under no circumstances shall Landlord be responsible for, and Tenant
waives any rights with respect to, Landlord providing security or other
protection for Tenant or Tenant’s Agents or property in, on or

28

 

	 	 	about the Premises, Land or Building. Subject to Landlord’s prior
approval, Tenant may, at its sole cost and expense, install, establish and
maintain security services within the Premises; provided that such
security services, including, without limitation, any apparatus,
facilities, equipment or people utilized in connection with the provision
of such security services, comply with the Governmental Requirements and
shall not cause the Building to be out of compliance with the Governmental
Requirements. Notwithstanding the foregoing, any such security services
installed, established or maintained by Tenant must not affect or impact
any portion of the Building or the Land other than the Premises and shall
not in any way limit or interfere with Landlord’s ability to exercise its
rights as provided in the paragraph captioned ‘Access’. Tenant’s rights
under this subparagraph are subject to all the obligations, limitations
and requirements as set forth in the paragraphs captioned ‘Tenant
Alterations’ and “Tenant’s Work Performance”. Landlord reserves the right
to relocate parking areas and driveways and to build additional
improvements in the common areas so long as Tenant’s Parking Ratio is
maintained. 4.4 Tenant Alterations. After the completion of the initial
Tenant Improvements, Tenant shall not make any alterations, additions or
improvements in or to the Premises, or make changes to locks on doors, or
add, disturb or in any way change any floor covering, wall covering,
fixtures, plumbing or wiring (individually and collectively “Tenant
Alterations”), without first obtaining the consent of Landlord which will
not be unreasonably withheld or delayed; provided that, notwithstanding
the provisions of the previous sentence, Tenant shall have the right to
make up to $25,000.00 of nonstructural alterations per calendar year
without the consent of Landlord (including painting and carpeting, but not
including any alterations to the demising walls or removal of any part or
portion of the Tenant Improvements installed at or prior to the
Commencement Date with funds provided by the Tenant Allowance). Tenant
shall deliver to Landlord full and complete plans and specifications for
any proposed Tenant Alterations and, if consent by Landlord is given, all
such work shall be performed at Tenant’s expense by Tenant. Tenant shall
pay to Landlord all reasonable out-of-pocket costs incurred by Landlord
for any architecture, engineering, supervisory and/or other similar
services in connection with any Tenant Alterations, including, without
limitation, Landlord’s review of the Plans and Specifications. Without
limiting the generality of the foregoing, Landlord may require Tenant, at
Tenant’s sole cost and expense, to obtain and provide Landlord with proof
of insurance coverage and a payment and performance bond, in forms,
amounts and by companies reasonably acceptable to Landlord. Should Tenant
make any alterations without Landlord’s prior written consent, or without
satisfaction of any conditions established by Landlord, Landlord shall
have the right, in addition to and without limitation of any right or
remedy Landlord may have under this Lease, at law or in equity, to require
Tenant to remove some or all of Tenant Alterations, or at Landlord’s
election, Landlord may remove such Tenant Alterations and restore the
Premises at Tenant’s expense. All Tenant Alterations to the Premises,
regardless of which party constructed them or paid for them, shall become
the property of Landlord and shall remain upon and be surrendered with the
Premises upon the expiration or earlier termination of this Lease;
provided, however, at Landlord’s election and upon notice to Tenant at the
time the Plans and Specifications are approved, Tenant shall be obligated,
at Tenant’s sole cost and expense, to remove all (or such portion as
Landlord may designate) of the Tenant Alterations and repair any damage
resulting from such removal and return the area to the same condition
existing prior to the undertaking. If Tenant fails to remove any such
Tenant Alterations as required by Landlord, Landlord may do so and Tenant
shall pay the entire cost thereof to Landlord within ten (10) Business
Days after Tenant’s receipt of Landlord’s written demand therefor. Nothing
contained in this paragraph or the paragraph captioned “Tenant’s Work
Performance” shall be deemed a waiver of the provisions of the paragraph
captioned “Mechanic’s Liens”.
	 
	4.5	 	Tenant’s Work Performance. If Landlord elects to require Tenant to
perform the Tenant Alterations, Landlord may, in its absolute discretion,
require that Tenant provide a payment and performance bond to cover the
entire work to be performed, which bond must be in form, amount and by a
company reasonably acceptable to Landlord. Any Tenant Alterations to be
performed by Tenant under this paragraph shall be performed by contractors
employed by Tenant under one or more construction contracts, in form and
content approved in advance in writing by Landlord (which

29

 

	 	 	approval shall be subject to Landlord’s reasonable discretion and may
include a requirement that the prime contractor and the respective
subcontractors of any tier: (a) be parties to, and bound by, a collective
bargaining agreement with a labor organization affiliated with the
Building and Construction Trades Council of the AFL-CIO and (b) employ
only members of such labor organizations to perform work within their
respective jurisdictions. Tenant’s contractors, workers and suppliers
shall work in harmony with and not interfere with workers or contractors
of Landlord or other tenants of Landlord. If Tenant’s contractors, workers
or suppliers do, in the opinion of Landlord, cause such disharmony or
interference, Landlord’s consent to the continuation of such work may be
withdrawn upon written notice to Tenant. All Tenant Alterations shall be
(1) completed in accordance with the plans and specifications approved by
Landlord; (.2) completed in accordance with all Governmental
Requirements; (3) carried out promptly in a good and workmanlike manner;
(4) of all new materials; and (5) free of defect in materials and
workmanship. Tenant shall pay for all damage to the Premises, Building and
Land caused by Tenant or Tenant’s Agents. Tenant shall indemnify, defend
and hold harmless Landlord and Landlord’s Agents from any Claims arising
as a result of the Tenant Alterations or any defect in design, material or
workmanship of any Tenant Alterations.
	 
	4.6	 	Surrender of Possession. Subject to the last subparagraph of the
paragraph captioned “Insurance”, Tenant shall, at the expiration or
earlier termination of this Lease, surrender and deliver the Premises to
Landlord in as good condition as when received by Tenant from Landlord or
as later improved, reasonable use and wear excepted, and free from all
tenancies or occupancies by any person.
	 
	4.7	 	Removal of Property. Tenant’s trade fixtures are generally described on
Exhibit H attached. Upon expiration or earlier termination of this Lease,
Tenant may remove its personal property, trade fixtures, office supplies
and office furniture and equipment if (a) such items are readily moveable
and are not attached to the Premises; (b) such removal is completed prior
to the expiration or earlier termination of this Lease; (c) Tenant is not
in default (beyond applicable notice and cure periods) of any covenant or
condition of this Lease at the time of such removal; and (d) Tenant
immediately repairs all damage caused by or resulting from such removal.
In addition, Tenant shall remove all cabling in the Premises other than
office-grade category 5 cabling. All other property in the Premises, the
Tenant Improvements and any Tenant Alterations (including, wall-to-wall
carpeting, paneling, wall covering or lighting fixtures and apparatus) or
any other article affixed to the floor, walls, ceiling or any other part
of the Premises or Building, shall become the property of Landlord and
shall remain upon and be surrendered with the Premises; provided, however,
if Landlord, at Landlord’s sole election, so designated at the time of
approval of the Tenant Improvements or the Tenant Alterations, Tenant
shall be obligated, at its sole cost and expense, to remove all (or such
portion as Landlord shall designate) of the Tenant Improvements (other
than building standard items) and Tenant Alterations as designated by
Landlord and repair any damages resulting from such removal. Tenant waives
all rights to any payment or compensation for such Tenant Alterations. If
Tenant shall fail to remove any of its property from the Premises,
Building or Land at the expiration or earlier termination of this Lease or
when Landlord has the right of re-entry, Landlord may, at its option,
remove and store such property without liability for loss of or damage to
such property, such storage to be for the account and at the expense of
Tenant. If Tenant fails to pay the cost of storing any such property,
Landlord may, at its option, after it has been stored for a period of
twenty (20) Business Days or more, sell or permit to be sold, any or all
such property at public or private sale (and Landlord may become a
purchaser at such sale), in such manner and at such times and places as
Landlord in its sole discretion may deem proper, without notice to Tenant,
and Landlord shall apply the proceeds of such sale: first, to the cost and
expense of such sale, including reasonable attorney’s fees actually
incurred; second, to the payment of the costs or charges for storing any
such property; third, to the payment of any other sums of money which may
then be or later become due Landlord from Tenant under this Lease; and,
fourth, the balance, if any, to Tenant.

30

 

	4.8	 	Access. Tenant shall have access to the Premises 24 hours per day, seven
(7) days per week. Tenant shall permit Landlord and Landlord’s Agents to
enter into the Premises at any time on at least one (1) Business Day’s
notice (except in case of emergency in which case no notice shall be
required), for the purpose of inspecting the same or for the purpose of
repairing, altering or improving the Premises or the Building; provided
that in exercising such right Landlord shall act so as to minimize any
interference with Tenant’s business. Nothing contained in this paragraph
shall be deemed to impose any obligation upon Landlord not expressly
stated elsewhere in this Lease. When reasonably necessary, Landlord may
temporarily close Building or Land entrances, Building doors or other
facilities, provided that Landlord continues to provide access to the
Premises, without liability to Tenant by reason of such closure and
without such action by Landlord being construed as an eviction of Tenant
or as relieving Tenant from the duty of observing or performing any of the
provisions of this Lease. Landlord shall have the right to enter the
Premises at any time during the last nine (9) months of the Lease Term for
the purpose of showing the Premises to prospective tenants and to erect on
the Premises a suitable sign indicating the Premises are available. Tenant
shall give written notice to Landlord at least twenty (20) Business Days
prior to vacating the Premises and shall arrange to meet with Landlord for
a joint inspection of the Premises prior to vacating. In the event of
Tenant’s failure to give such notice or arrange such joint inspection,
Landlord’s inspection at or after Tenant’s vacating the Premises shall be
conclusively deemed correct for purposes of determining Tenant’s
responsibility for repairs and restoration. Landlord shall not be liable
for the consequences of admitting by passkey, or refusing to admit to the
Premises, Tenant or any of Tenant’s Agents, or other persons claiming the
right of admittance.
	 
	4.9	 	Damage or Destruction.
	 
	4.9.1	 	If the Premises are damaged by fire, earthquake or other casualty,
Tenant shall give prompt written notice thereof to Landlord. If Landlord
estimates that the damage can be repaired in accordance with the
then-existing Governmental Requirements within one hundred-twenty (120)
Business Days after Landlord is notified by Tenant of such damage and if
there are sufficient insurance proceeds available to repair such damage,
then Landlord shall proceed with reasonable diligence to restore the
Premises to substantially the condition which existed prior to the damage
and this Lease shall not terminate. If, in Landlord’s estimation, the
damage cannot be repaired within such 120 Business Day period or if there
are insufficient insurance proceeds available to repair such damage,
Landlord may elect in its absolute discretion to either: (a) terminate
this Lease or (b) restore the Premises to substantially the condition
which existed prior to the damage and this Lease will continue. If
Landlord restores the Premises under this paragraph, then (1) the Lease
Term shall be extended for the time required to complete such restoration,
(2) Tenant shall pay to Landlord, upon demand, Tenant’s Pro Rata Share of
any applicable deductible amount specified under Landlord’s insurance
(currently $5,000.00 and not to exceed $10,000.00) and (3) Landlord shall
not be required to repair or restore Tenant Improvements, Tenant
Alterations, or any or all furniture, fixtures, equipment, inventory,
improvements or other property which was in or about the Premises at the
time of the damage and was not owned by Landlord. Base Rent, Additional
Rent and any other sum due under this Lease during any reconstruction period shall be abated. Tenant agrees to look to the provider of Tenant’s
insurance for coverage for the loss of Tenant’s use of the Premises and
any other related losses or damages incurred by Tenant during any
reconstruction period.
	 
	4.9.2	 	If the Building is damaged by fire, earthquake or other casualty and
more than fifty percent (50%) of the Building is rendered untenantable,
without regard to whether the Premises are affected by such damage,
Landlord, in its absolute discretion and without limiting any other
options available to Landlord under this Lease or otherwise and provided
that Landlord terminates the leases of other tenants similarly situated,
may elect to terminate this Lease by notice in writing to Tenant within
forty (40) Business Days after the occurrence of such damage. Such notice
shall be effective twenty (20) Business Days after receipt by Tenant
unless a later date is set forth in Landlord’s notice.

31

 

	4.9.3	 	Notwithstanding anything contained in this Lease to the contrary, if
there is damage to the Premises, or Building and the holder of any
indebtedness secured by a mortgage or deed of trust covering any such
property requires that the insurance proceeds be applied to such
indebtedness or if the insurance proceeds are otherwise inadequate to
complete the repair of the damages to the Premises, the Building or both,
then Landlord shall have the right to terminate this Lease by delivering
written notice of termination to Tenant within fifteen (15) Business Days
after such requirement is made by such holder.
	 
	4.9.4	 	Notwithstanding the foregoing, if the Premises or the Building are
wholly or partially damaged or destroyed within the final six (6) months
of the Term, either party may, at its option, elect to terminate this
Lease upon written notice to the other party within thirty (30) days
following such damage or destruction. 4.10 Condemnation. If all of the
Premises, or such portions of the Building as may be required for the
Tenant’s reasonable use of the Premises, are taken by eminent domain or by
conveyance in lieu thereof, this Lease shall automatically terminate as of
the date the physical taking occurs, and all Base Rent, Additional Rent
and other sums payable under this Lease shall be paid to that date. In
case of taking of a part of the Premises or a portion of the Building not
required for the Tenant’s reasonable use of the Premises, then this Lease
shall continue in full force and effect and the Base Rent shall be
equitably reduced based on the proportion by which the floor area of the
Premises is reduced, such reduction in Base Rent to be effective as of the
date the physical taking occurs. Additional Rent and all other sums
payable under this Lease shall not be abated but Tenant’s Pro Rata Share
may be redetermined as equitable under the circumstances. Landlord
reserves all rights to damages or awards for any taking by eminent domain
relating to the Premises, Building, Land and the unexpired term of this
Lease. Tenant assigns to Landlord any right Tenant may have to such
damages or award and Tenant shall make no claim against Landlord for
damages for termination of its leasehold interest or interference with
Tenant’s business. Tenant shall have the right, however, to claim and
recover from the condemning authority compensation for any loss to which
Tenant may be entitled for Tenant’s moving expenses or other relocation
costs; provided that, such expenses or costs may be claimed only if they
are awarded separately in the eminent domain proceedings and not as a part
of the damages recoverable by Landlord.
	 
	 	 	4.1 1 Parking. Tenant shall have the nonexclusive privilege to use parking
spaces on the Land in common with other tenants of Landlord and nineteen
(19) covered, unassigned spaces in the parking garage. Tenant’s parking
privileges shall be subject to the rules and regulations relating to
parking adopted by Landlord from time to time. Landlord shall have the
right to grant designated, reserved parking stalls to other tenants in the
Building. In no event shall the number of parking stalls used by Tenant
and Tenant’s Agents exceed the number of stalls allocated to Tenant in the
definition of the Parking Ratio. Landlord shall have no obligation
whatsoever to monitor, secure or police the use of the parking or other
common areas. 4.12 Indemnification. Tenant shall indemnify, defend and
hold harmless Landlord and Landlord’s Agents from and against any and all
Claims, arising in whole or in part out of (a) the possession, use or
occupancy of the Premises or the business conducted in the Premises, (b)
any act, omission or negligence of Tenant or Tenant’s Agents, or (c) any
default under this Lease by Tenant. Neither Landlord nor Landlord’s Agents
shall, to the extent permitted by law, have any liability to Tenant or to
Tenant’s Agents, for any Claims arising out of any cause whatsoever,
including repair to any portion of the Premises; interruption in the use
of the Premises or any equipment therein; any accident or damage resulting
from any use or operation by Landlord, Tenant or any person or entity of
heating, cooling, electrical, sewerage or plumbing equipment or apparatus;
termination of this Lease by reason of damage to the Premises or Building;
fire, robbery, theft, vandalism, mysterious disappearance or any other
casualty; actions of any other tenant of the Building or of any other
person or entity; inability to furnish any service required of Landlord as
specified in this Lease; or leakage in any part of the Premises or the
Building from rain, ice or snow, or from drains, pipes or plumbing
fixtures in the Premises or the Building; except for Claims arising solely
out of the gross negligence or willful misconduct of Landlord or
Landlord’s employees, agents and contractors; provided that, in no event
shall Landlord be responsible for any interruption to

32

 

	 	 	Tenant’s business or for any indirect or consequential losses suffered by
Tenant or Tenant’s Agents. The obligations of this paragraph shall be
subject to the paragraph captioned “Waiver of Subrogation”.
	 
	4.13	 	Tenant insurance.
	 
	4.13.1	 	Tenant shall, throughout the Lease Term, at its own expense, keep and
maintain in full force and effect the following policies, each of which
shall be endorsed as needed to provide that the insurance afforded by
these policies is primary and that all insurance carried by Landlord is
strictly excess and secondary and shall not contribute with Tenant’s
liability insurance:
	 
	 	 	(a)   A policy of comprehensive general liability insurance, including a
contractual liability endorsement covering Tenant’s obligations under the
paragraph captioned “Indemnification”, insuring against claims of bodily
injury and death or property damage or loss with a combined single limit
at the Commencement Date of this Lease of not less than Two Million
Dollars (2,000,000.00), which limit shall be reasonably increased during
the Lease Term at Landlord’s request to reflect both increases in
liability exposure arising from inflation as well as from changing use of
the Premises or changing legal liability standards, which policy shall be
payable on an “occurrence” rather than a “claims made” basis, and which
policy names Landlord and Manager and, at Landlord’s request Landlord’s
mortgage lender(s) or investment advisors, as additional insureds;
..
	 
	 	 	(b)   A policy of extended property insurance (which is commonly called “all
risk”) covering Tenant Improvements, Tenant Alterations, and any and all
furniture, fixtures, equipment, inventory, improvements and other property
in or about the Premises which is not owned by Landlord, for one hundred
percent (100%) of the then current replacement value of such property;
	 
	 	 	(c)   Business interruption insurance in an amount sufficient to cover
costs, damages, lost income, expenses, Base Rent, Additional Rent and all
other sums payable under this Lease, should any or all of the Premises not
be usable for a period of up to twelve (12) months;
	 
	 	 	(d)   A policy or worker’s compensation insurance as required by applicable
law and employer’s liability insurance with limits of no less than One
Million Dollars ($1,000,000.00); and
	 
	 	 	(e)   A policy of comprehensive automobile liability insurance, including
loading and unloading, and covering owned, non-owned and hired vehicles,
with limits of no less than One Million Dollars ($1,000,000.00) per
occurrence.
	 
	4.13.2	 	All insurance policies required under this paragraph shall be with
companies reasonably approved by Landlord and each policy shall provide
that it is not subject to cancellation or reduction in coverage except
after thirty (30) days’ written notice to Landlord. Tenant shall deliver
to Landlord and, at Landlord’s request Landlord’s mortgage lender(s1,
prior to the Commencement Date and from time to time thereafter,
certificates evidencing the existence and amounts of all such policies.
	 
	4.13.3	 	If Tenant fails to acquire or maintain any insurance or provide any
certificate required by this paragraph, Landlord after five (5) calendar
days’ prior notice to Tenant may, but shall not be required to, obtain
such insurance or certificates and the costs associated with obtaining
such insurance or certificates shall be payable by Tenant to Landlord on
demand. 4.14 Landlord’s Insurance. Landlord shall, throughout the Lease
Term, keep and maintain in full force and effect:
	 
	 	 	(a)   A policy of commercial general liability insurance, insuring against
claims of bodily injury and death or property damage or loss with a
combined single limit at the Commencement Date of not less than Five
Million Dollars ($5,000,000.00), which policy shall be payable on an
“occurrence” rather than a ‘claims made’ basis;

33

 

	 	 	(b)   A policy of extended property insurance (what is commonly called ‘all
risk’) covering the Building and Landlord’s personal property, if any,
located on the Land in the amount of one hundred percent (100%) of the
then current replacement value of such property; and
	 
	 	 	(c)   Landlord may, but shall not be required to, maintain other types of
insurance as Landlord deems appropriate, including but not limited to,
property insurance coverage for earthquakes and floods in such amounts as
Landlord deems appropriate. Such policies may be “blanket” policies which
cover other properties owned by Landlord.
	 
	4.15	 	Waiver of Subrogation. Notwithstanding anything in this Lease to the
contrary, Landlord and Tenant hereby each waive and release the other from
any and all Claims or any loss or damage that may occur to the Land,
Building, Premises, or personal property located therein, by reason of
fire or other casualty regardless of cause or origin, including the
negligence or misconduct of Landlord, Tenant, Landlord’s Agents or
Tenant’s Agents, but only to the extent of the insurance proceeds paid to
such releasor under its policies of insurance or, if it fails to maintain
the required policies, the insurance proceeds that would have been paid to
such releasor if it had maintained such policies. Each party to this Lease
shall promptly give to its insurance company written notice of the mutual
waivers contained in this subparagraph, and shall cause its insurance
policies to be properly endorsed, if necessary, to prevent the
invalidation of any insurance coverages by reason of the mutual waivers
contained in this subparagraph.
	 
	4.16	 	Assignment and Subletting by Tenant.
	 
	4.16.1	 	Tenant shall not have the right to assign, transfer, mortgage or
encumber this Lease In whole or in part, nor sublet the whole or any part
of the Premises, nor allow the occupancy of all or any part of the
Premises by another, without first obtaining Landlord’s consent, which
consent may be granted or denied in accordance with this paragraph 4.16.
Notwithstanding any permitted assignment or subletting, Tenant shall at
all times remain directly, primarily and fully responsible and liable for
the payment of all sums payable under this Lease and for compliance with
all of its other obligations as tenant under this Lease. Upon the
occurrence of an Event of Default, if the Premises or any part of the
Premises are then subject to an assignment or subletting, Landlord, in
addition to any other remedies provided in this Lease or by law, may at
its option collect directly from such assignee or subtenant all rents
becoming due to Tenant under such assignment or sublease and apply such
rents against any sums due to Landlord from Tenant under this Lease, and
no such collection shall be construed to constitute a notation or release
of Tenant from the further performance of Tenant’s obligations under this
Lease. Tenant makes an absolute assignment to Landlord of such assignments
and subleases and any rent, security deposits and other sums payable under
such assignments and subleases as collateral to secure the performance of
the obligations of Tenant under this Lease.
	 
	4.16.2	 	In the event Tenant desires to assign this Lease or to sublet all or any
portion of the Premises, Tenant shall give written notice of such desire
to Landlord setting forth the name of the proposed subtenant or assignee,
the proposed term, the nature of the proposed subtenant’s or assignee’s
business to be conducted on the Premises, the rental rate, and any other
particulars of the proposed subletting or assignment that Landlord may
reasonably request. Without limiting the preceding sentence, Tenant shall
also provide Landlord with: (a) such financial information as Landlord may
request concerning the proposed subtenant or assignee, including recent
financial statements certified as accurate and complete by a certified
public accountant and by the president, managing partner or other
appropriate officer of the proposed subtenant or assignee; (b) proof
satisfactory to Landlord that the proposed subtenant or assignee will
immediately occupy and thereafter use the entire Premises (or any sublet
portion of the Premises) for the remainder of the Lease Term (or for the
entire term of the sublease, if shorter) in compliance with the terms of
this Lease; and (c) a copy of the proposed sublease or assignment or
letter of intent. Excluding intracorporate assignments or subletting,
Tenant shall pay to

34

 

	 	 	Landlord, upon Landlord’s demand therefor, Landlord’s reasonable
attorneys’ fees incurred in the review of such documentation and in
documenting Landlord’s consent, plus an administrative fee of $350.130 as
Landlord’s fee for processing such proposed assignment or sublease.
Receipt of such fee shall not obligate Landlord to approve the proposed
assignment or sublease.
	 
	4.16.3	 	In determining whether to grant or withhold consent to a proposed
assignment or sublease, Landlord may consider, and weigh, any factor it
deems relevant, in its reasonable discretion. Without limiting what may be
construed as a factor considered by Landlord, Tenant agrees that any one
or more of the following will be proper grounds for Landlord’s disapproval
of a proposed assignment or sublease:
	 
	 	 	(a)   The proposed assignee or subtenant does not, in Landlord’s good faith
judgment, have financial worth or creditworthiness equal to or greater
than that of Tenant as of the execution date of this Lease or sufficient
financial worth to insure full and timely performance under this Lease;
	 
	 	 	(b)   Landlord has received insufficient evidence of the financial worth or
creditworthiness of the proposed assignee or subtenant to make the
determination set forth in clause (a);
	 
	 	 	(c)   The proposed assignee or subtenant has a reputation for disputes in
contractual relations, for failure to observe and perform its contractual
obligations in a timely and complete manner or for negative business
relations in the business community as a tenant of property or otherwise;
	 
	 	 	(d)   Landlord has received from any prior lessor of the proposed assignee
or subtenant a negative report concerning such prior lessor’s experience
with the proposed assignee or subtenant;
	 
	 	 	(e)   Landlord has had prior negative leasing experience with the proposed
assignee or subtenant;
	 
	 	 	(f)   The use of the Premises by the proposed assignee or subtenant will be
other than the Permitted Uses;
	 
	 	 	(g)   to Landlord’s judgment, the proposed assignee or subtenant is engaged
in a business, or the Premises or any part of the Premises will be used in
a manner, that is not in keeping with the then standards of the Building,
or that is not compatible with the businesses of other tenants in the
Building, or that is inappropriate for the Building, or that will violate
any negative covenant as to use contained in any other lease of space in
the Building;
	 
	 	 	(h)   The use of the Premises by the proposed assignee or subtenant will
violate any Governmental Requirement or create a violation of Access Laws;
	 
	 	 	(i)   Tenant is in default of any obligation of Tenant under this Lease
beyond applicable notice and cure periods;
	 
	 	 	(j)   Landlord does not approve of any of the tenant improvements required
for the proposed assignee or subtenant; or
	 
	 	 	(k)   Landlord has had contact with the proposed assignee or subtenant, in
the six (6) months preceding Tenant’s request, regarding the leasing of
space by such proposed assignee or subtenant in the Building or any other
buildings owned by Landlord in the metropolitan area in which the Land is
located.
	 
	4.16.4	 	Within fifteen (15) Business Days after Landlord’s receipt of all
required information to be supplied by Tenant pursuant to this paragraph,
Landlord shall notify Tenant of Landlord’s approval, disapproval or
conditional approval of any proposed assignment or subletting or of
Landlord’s election to recapture as described below. Landlord shall have
no obligation to respond unless and

35

 

	 	 	until all required information has been submitted. In the event Landlord
approves of any proposed assignment or subletting, Tenant and the proposed
assignee or sublessee shall execute and deliver to Landlord an assignment
(or subletting) and assumption agreement in form and content reasonably
satisfactory to Landlord.
	 
	4.16.5	 	Any transfer, assignment or hypothecation of any of the stock or
interest in, or the assets of, Tenant which is either; (a) greater than
fifty percent (50%) of such stock, interest or assets or (b) intended as a
subterfuge denying Landlord the benefits of this paragraph, shall be
deemed to be an assignment within the meaning and provisions of this
paragraph and shall be subject to the provisions of this paragraph.
	 
	4.16.6	 	If Landlord consents to any assignment or sublease and Tenant receives
rent or any other consideration, either initially or over the term of the
assignment or sublease, in excess of the Base Rent and Additional Rent
(or, in the case of a sublease of a portion of the Premises, in excess of
the Base Rent paid by Tenant on a square footage basis under this Lease),
Tenant shall pay to Landlord fifty percent (50%) of such excess after
Tenant recovers its costs incurred in connection with such assignment or
sublease, including without limitation, broker fees, attorney fees, and
remodeling costs.
	 
	4.16.7	 	Notwithstanding any provisions to the contrary contained in this Lease,
this Lease may be assigned, or the Premises may be sublet, in whole or in
part, without the consent of Landlord, to any corporation into or with
which Tenant may be merged or consolidated or to any corporation or other
entity which shall be an affiliate, subsidiary, parent or successor of
Tenant, or of a corporation into or with which Tenant may be merged or
consolidated. Under no circumstances shall a sale of a majority or more of
the common stock of Tenant be deemed an assignment pursuant to the terms
and provisions of this Lease. For purpose of this section a “subsidiary”
or “affiliate” or a ‘successor” of Tenant shall mean the following: (a) An
‘affiliate’ shall mean any corporation or other entity which, directly or
indirectly, controls or is controlled by or is under common control with
Tenant. For this purpose, ‘control” shall mean the possession, directly or
Indirectly, of the power to direct or cause the direction of the
management and policies of such corporation or other entity, whether
through the ownership of voting securities or by contract or otherwise.
(b) A “subsidiary” shall mean any corporation or other entity not less
than 50% of whose outstanding stock (or other evidence of equity
ownership) shall, at the time, be owned directly or indirectly by Tenant.
(c) A ‘successor’ of Tenant shall mean: (i) a corporation or other entity
into which or with which Tenant, its corporate successors or assigns, is
merged or consolidated, in accordance with applicable statutory provisions
for merger or consolidation of corporations or other entities, provided
that by operation of law or by effective provisions contained in the
instruments of merger or consolidation, the liabilities of the
corporations participating in such merger or consolidation are assumed by
the corporation surviving such merger or created by such consolidation, or
(ii) a corporation or other entity acquiring this Lease and the term
hereby demised and a substantial portion of the property and assets of
Tenant, its successors or assigns; and (iii) a corporation or other entity
acquiring a majority or more of the issued and outstanding stock of
Tenant.
	 
	4.16.8	 	Except in the case of assignments or subletting described in Section
4.16.7, Landlord shall have the right to recapture the Premises or the
applicable portion thereof (a “Recapture”) by giving written notice of
such Recapture to Tenant within fifteen (15) Business Days after receipt
of Tenant’s written request for Landlord’s consent to such proposed
assignment or subletting. Tenant shall have no right to retract its
request for Landlord’s consent to assign or sublease once such request has
been made. Such Recapture shall terminate this Lease as to the applicable
space effective on the prospective effective date of assignment or
subletting, which shall be the last day of a calendar month and shall not
be earlier than forty-five (45) Business Days after receipt of Tenant’s
request hereunder. If less than the entire Premises are recaptured,
Landlord and Tenant agree that this Lease shall remain in full force and
effect with respect to that remaining area not recaptured by Landlord.
Tenant agrees to

36

 

	 	 	surrender that portion of the Premises recaptured by Landlord in
accordance with the terms and conditions of this Lease. Notwithstanding
the first sentence of this subparagraph, Landlord shall have no right to
Recapture the Premises or applicable portion thereof if: (a) Tenant’s
proposed assignment or sublet is to an affiliate, wholly-owned subsidiary
or successor entity, or (b) Tenant’s proposed assignment or sublet
together with any previous assignments and sublets encompass, in the
aggregate, net rentable area equal to less than fifty percent (50’0) of
the total net rentable area of Premises. 4.17 Assignment by Landlord.
Landlord shall have the right to transfer and assign, in whole or in part,
its rights and obligations under this Lease and in any and ail of the Land
or Building. If Landlord sells or transfers any or all of the Building,
including the Premises, Landlord and Landlord’s Agents shall, upon
consummation of such sale or transfer, be released automatically from any
liability relating to obligations or covenants under this Lease to be
performed or observed after the date of such transfer, and in such event,
Tenant agrees to look solely to Landlord’s successor-in-interest with
respect to such liability; provided that, as to the Security Deposit and
Prepaid Rent, Landlord shall not be released from liability therefor
unless Landlord has delivered (by direct transfer or credit against the
purchase price) the Security Deposit or Prepaid Rent to its
successor-in-interest. 4.18 Estoppel Certificates and Financial
Statements. Tenant shall, from time to time, upon the written request of
Landlord, execute, acknowledge and deliver to Landlord or its designee a
written statement stating (if such is the case): (a) the date this Lease
was executed and the date it expires; (b) the date Tenant entered into
occupancy of the Premises; (c) the amount of monthly Base Rent and
Additional Rent and the date to which such Base Rent and Additional Rent
have been paid; and (d) certifying that (1) this Lease is in full force
and effect and has not been assigned, modified, supplemented or amended in
any way (or specifying the date of the agreement so affecting this Lease);
(2) Landlord is not in breach of this Lease (or, if so, a description of
each such breach) and that (if such is the case) no event, omission or
condition has occurred which would result, with the giving of notice or
the passage of time, in a breach of this Lease by Landlord; (3) this Lease
represents the entire agreement between the parties with respect to the
Premises; (4) all required contributions by Landlord to Tenant on account
of Tenant Improvements have been received; (5) on the date of execution,
there exist no defenses or offsets which the Tenant has against the
enforcement of this Lease by the Landlord; (6) no Base Rent, Additional
Rent or other sums payable under this Lease have been paid in advance
except for Base Rent and Additional Rent for the then current month; (7)
no security has been deposited with Landlord (or, if so, the amount of
such security); (8) it is intended that any Tenant’s statement may be
relied upon by a prospective purchaser or mortgagee of Landlord’s interest
or an assignee of any such mortgagee; and (9) such other information as
may be reasonably requested by Landlord. If Tenant fails to respond within
ten (10) Business Days of its receipt of a written request by Landlord as
provided in this paragraph, Tenant shall be deemed to have admitted the
accuracy of any information supplied by Landlord to a prospective
purchaser, mortgagee or assignee. In addition, Tenant shall, not more than
once per calendar year, upon the written request of Landlord, deliver to
or cause to be delivered to Landlord or its designee the most recent
financial statements (including a statement of operations and balance
sheet) certified as accurate by a certified public accountant and prepared
in conformance with generally accepted accounting principles for (i)
Tenant, (ii) any entity which owns a controlling interest in Tenant, (iii)
any entity the controlling interest of which is owned by Tenant, (any
successor entity to Tenant by merger or operation of law, and (v) any
guarantor of this Lease. 4.19 Modification for Lender. If, in connection
with obtaining construction, interim or permanent financing for the
Building or Land, Landlord’s lender, if any, shall request reasonable
modifications to this Lease as a condition to such financing, Tenant will
not unreasonably withhold or delay its consent to such modifications;
provided that, such modifications do not increase the obligations of
Tenant under this Lease or materially adversely affect Tenant’s rights
under this Lease and provided that Landlord shall pay Tenant’s reasonable
attorneys’ fees for any such amendment. 4.20 Hazardous Substances.
	 
	4.20.1	 	Tenant agrees that neither Tenant nor any of Tenant’s Agents will store,
place, generate, manufacture, refine, handle, or locate on, in, under or
around the Land or Building any Hazardous

37

 

	 	 	Substance, except for storage, handling and use of reasonable quantities
and types of cleaning fluids and office supplies in the Premises in the
ordinary course and the prudent conduct of Tenant’s business in the
Premises, provided that, (a) the storage, handling and use of such
permitted Hazardous Substances must at alt times conform to all
Governmental Requirements and to applicable fire, safety and insurance
requirements; (b) the types and quantifies of permitted Hazardous
Substances which are stored in the Premises must be reasonable and
appropriate to the nature and size of Tenant’s operation in the Premises
and reasonable and appropriate for a first-class building of the same or
similar use and in the same market area as the Building; (c) no Hazardous
Substance shall be spilled or disposed of on, in, under or around the Land
or Building or otherwise discharged from the Premises or any area adjacent
to the Land or Building; and (d) in no event will Tenant be permitted to
store, handle or use on, in, under or around the Premises any Hazardous
Substance which will increase the rate of fire or extended coverage
insurance on the Land or Building, unless: (Z) such Hazardous Substance
and the expected rate increase have been specifically disclosed in writing
to Landlord; (2) Tenant has agreed in writing to pay any rate increase
related to each such Hazardous Substance; and (3) Landlord has approved in
writing each such Hazardous Substance, which approval shall be subject to
Landlord’s discretion.
	 
	4.20.2	 	Tenant shall indemnify, defend and hold harmless Landlord and Landlord’s
Agents from and against any and all Claims arising out of any breach of
any provision of this paragraph, which expenses shall also. include
laboratory testing fees, persona! injury claims, clean-up costs and
environmental consultants’ fees. Tenant agrees that Landlord may be
irreparably harmed by Tenant’s breach of this paragraph and that a
specific performance action may appropriately be. brought by Landlord;
provided that, Landlord’s election to bring or not bring any such specific
performance action shall in no way limit, waive, impair or hinder
Landlord’s other remedies against Tenant.
	 
	4.20.3	 	As of the execution date of this Lease, Tenant represents and warrants
to Landlord that, except as otherwise disclosed by Tenant to Landlord,
Tenant has no intent to bring any Hazardous Substances on, in or under the
Premises except for the type and quantities authorized in the first
paragraph of the paragraph captioned “Hazardous Substances.” 4.21 Access
Laws.
	 
	4.21.1	 	Tenant agrees to notify Landlord promptly if Tenant receives
notification or otherwise becomes aware of: (a) any condition or situation
on, in, under or around the Land or Building which may constitute a
violation of any Access Laws or (b) any threatened or actual lien, action
or notice that the Land or Building is not in compliance with any Access
Laws. If Tenant is responsible for such condition, situation, lien, action
or notice under this paragraph, Tenant’s notice to Landlord shall include
a statement as to the actions Tenant proposes to take in response to such
condition, situation, lien, action or notice.
	 
	4.21.2	 	Tenant shall not alter or permit any assignee or subtenant or any other
person to alter the Premises in any manner which would violate any Access
Laws or increase Landlord’s responsibilities for compliance with Access
Laws, without the prior approval of the Landlord. In connection with any
such approval, Landlord may require a certificate of compliance with
Access laws from an architect, engineer or other person acceptable to
Landlord. Tenant agrees to pay the reasonable fees incurred by such
architect, engineer or other third party in connection with the issuance
of such certificate of compliance. Landlord’s consent to any proposed
Tenant Alteration ‘shall (a) not relieve Tenant of its obligations or
indemnities contained in this paragraph or this Lease or (b) be construed
as a warranty that such proposed alteration complies with any Access Law.
	 
	4.21.3	 	Tenant shall be solely responsible for all costs and expenses relating
to or incurred in connection with: (a) failure of the Premises to comply
with the Access Laws; and (b) bringing the Building and the common areas
of the Building into compliance with Access Laws, if and to the extent
such noncompliance arises out of or relates to: (‘I) Tenant’s change in
use of the Premises, including the hiring of employees; (2) any Tenant
Alterations to the Premises; or (3) any Tenant Improvements

38

 

	 	 	constructed in the Premises at the request of Tenant, regardless of
whether such improvements are constructed prior to or after the
Commencement Date.
	 
	4.21.4	 	Landlord represents and warrants to Tenant that, to Landlord’s actual
knowledge, as of the Commencement Date, the Building, the Premises and the
Land shall be in material compliance with Access Laws. Landlord shall be
responsible for all costs and expenses relating to or incurred in
connection with bringing the common areas of the Building into compliance
with Access Laws, unless such costs and expenses are Tenant’s
responsibility as provided in the preceding subparagraph. Any cost or
expense paid or incurred by Landlord to bring the Premises or common areas
of the Building into compliance with Access Laws which is not Tenant’s
responsibility under the preceding subparagraphs shall be amortized over
the useful economic life of the improvements (not to exceed ten (10)
years) using an amortization rate of twelve percent (‘t 2%) per annum, and
shall be an Operating Cost for purposes of this Lease.
	 
	4.21.5	 	Tenant agrees to indemnify, defend and hold harmless Landlord and
Landlord’s Agents from and against any and all Claims arising out of or
relating to any failure of Tenant or Tenant’s Agents to comply with
Tenant’s obligations under this paragraph.
	 
	4.21.6	 	The provisions of this paragraph shall supersede any other provisions in
this Lease regarding Access Laws, to the extent inconsistent with the
provisions of any other paragraphs.
	 
	4.22	 	Quiet Enjoyment. Landlord covenants that Tenant, upon paying Base Rent,
Additional Rent and all other sums payable under this Lease and performing
all covenants and conditions required of Tenant under this Lease shall and
may peacefully have, hold and enjoy the Premises without hindrance or
molestation by Landlord or any person claiming by or through Landlord,
excepting other tenants in the Project, subject to the provisions of this
Lease.
	 
	4.23	 	Signs. Subject to compliance with all Governmental Requirements and ail
matters of record, Tenant shall have the right to install signs on the
Building exterior as described in Exhibit F attached to this Lease. If
Exhibit F does not describe any signs, then none shall be allowed. The
exact size, appearance and location of such signs shall be subject to
Landlord’s prior written approval and shall be consistent with Landlord’s
existing sign criteria then in existence for the Building. Any and all
costs in connection with the permitting, fabrication, installation,
maintenance and removal of Tenant’s signs (including the cost of removal
of the signs and repair to the Building caused by such removal) shall be
borne by Tenant. Tenant agrees to maintain each such sign, awning, canopy,
decoration, lettering, advertising matter or other thing as may be
approved, in good condition at all times. Tenant shall not inscribe an
inscription, or post, place, or in any manner display any sign, notice,
picture, placard or poster, or any advertising matter whatsoever, anywhere
in or about the Land or Building at places visible (either directly or
indirectly as an outline or shadow on a glass pane) from anywhere outside
the Premises without first obtaining Landlord’s consent, unless permitted
in Exhibit F. Upon vacation of the Premises on the expiration or earlier
termination of this Lease, Tenant shall be responsible, at it sole cost,
for the removal of such sign and the repair, painting and/or replacement
of the structure to which the sign is attached including discoloration
caused by such installation or removal. If Tenant fails to perform such
work, Landlord may cause the same to be performed, and the cost thereof
shall be Additional Rent immediately due and payable upon rendition of a
bill therefor.
	 
	4.24	 	Subordination. As of the date of mutual execution of this Lease, Landlord
has not entered Into any mortgage, deed of trust, ground lease or vendor’s
Lien with respect to the Land or the Building. Tenant subordinates this
Lease and all rights of Tenant under this Lease to any mortgage, deed of
trust, ground lease or vendor’s lien, or similar instrument which may from
time to time be placed upon the Premises (and all renewals, modifications,
replacements and extensions of such encumbrances), and each such mortgage,
deed of trust, ground lease or lien or other instrument shall

39

 

	 	 	be superior to and prior to this Lease; provided that. Landlord provides
Tenant with a commercially reasonable nondisturbance agreement on the
standard form of the applicable tender or ground lessor. Notwithstanding
the foregoing, the holder or beneficiary of such mortgage, deed of trust,
ground lease, vendor’s lien or similar instrument shall have the right to
subordinate or cause to be subordinated any such mortgage, deed of trust,
ground lease, vendor’s lien or similar instrument to this Lease. At the
request of Landlord, the holder of such mortgage or deed of trust or any
ground lessor, Tenant shall execute, acknowledge and deliver promptly in
recordable form any instrument or subordination agreement that Landlord or
such holder may request, provided, however, such instrument shall include
a nondisturbance provision on the standard form of the applicable Lender
or ground lessor. Tenant further covenants and agrees that if the lender
or ground lessor acquires the Premises as a purchaser at any foreclosure
sale or otherwise, Tenant shall recognize and attorn to such party as
landlord under this Lease, and shall make all payments required hereunder
to such new landlord without deduction or set-off and, upon the request of
such purchaser or other successor, execute, deliver and acknowledge
documents confirming such attornment. Tenant waives the provisions of any
law or regulation, now or hereafter in effect, which may give or purport
to give Tenant any right to terminate or otherwise adversely affect this
Lease or the obligations of Tenant hereunder in the event that any such
foreclosure or termination or other proceeding is prosecuted or completed.
	 
	4.25	 	Workers Compensation Immunity. If and to the extent that Tenant is
obligated to indemnify, defend or hold harmless Landlord or Landlord’s
Agents from any Claims arising from its use of the Premises or any act or
failure to act by Tenant or Tenant’s Agents or otherwise, Tenant expressly
waives, to and in favor of Landlord and Landlord’s Agents, its statutory
workers compensation act employers immunity relative to any injury to an
employee or employees of Tenant.
	 
	4.26	 	Brokers. Landlord shall pay the Brokers as defined in Section 1.6 above
pursuant to separate agreements. Each party to this Lease shall indemnify,
defend and hold harmless the other party from and against any and all
Claims asserted against such other party by any real estate broker, finder
or intermediary, other than the Brokers, relating to any act of the
indemnifying party in connection with this Lease.
	 
	4.27	 	Exculpation and Limitation of Liability. Landlord has executed this Lease
by its trustee signing solely in a representative capacity.
Notwithstanding anything contained in this Lease to the contrary, Tenant
confirms that the covenants of Landlord are made and intended, not as
personal covenants of the trustee, or for the purpose of binding the
trustee personally, but solely in the exercise of the representative
powers conferred upon the trustee by its principal. Liability with respect
to the entry and performance of this Lease by or on behalf of Landlord,
however it may arise, shall be asserted and enforced only against the
Landlord’s estate and equity interest in the Building. Neither Landlord
nor any of Landlord’s Agents shall have any personal liability in the
event of any claim against Landlord arising out of or in connection with
this Lease, the relationship of Landlord and Tenant or Tenant’s use of the
Premises. Further, in no event whatsoever shall any Landlord’s Agent have
any liability or responsibility whatsoever arising out of or in connection
with this Lease, the relationship of Landlord and Tenant or Tenant’s use
of the Premises. Any and all personal liability, if any, beyond that which
may be asserted under this paragraph, is expressly waived and released by
Tenant and by all persons claiming by, through or under Tenant.
	 
	4.28	 	Mechanic’s Liens and Tenant’s Personal Property Taxes.
	 
	4.28.1	 	Tenant shall have no authority, express or implied, to create or place
any lien or encumbrance of any kind or nature whatsoever upon, or in any
manner to bind, the interest of Landlord or Tenant in the Premises or to
charge the rentals payable under this Lease for any Claims in favor of any
person dealing with Tenant, including those who may furnish materials or
perform labor for any construction or repairs. Tenant shall pay or cause
to be paid all sums legally due and payable by it on

40

 

	 	 	account of any labor performed or materials furnished in connection with
any work performed on the Premises on which any lien is or can be validly
and legally asserted against its leasehold interest in the Premises and
Tenant shall indemnify, defend and hold harmless Landlord from any and all
Claims arising out of any such asserted Claims. Tenant agrees to give
Landlord prompt written notice of any such Claim.
	 
	4.28.2	 	Tenant shall be liable for all taxes levied or assessed against personal
property, furniture or fixtures placed by Tenant in the Premises. If any
such taxes for which Tenant is liable are levied or assessed against
Landlord or Landlord’s property and Landlord elects to pay them or if the
assessed value of Landlord’s property is increased by inclusion of such
personal property, furniture or fixtures and Landlord elects to pay the
taxes based on such increase, Tenant shall reimburse Landlord for the sums
so paid by Landlord, upon demand by Landlord.

SECTION 5: DEFAULT AND REMEDIES

	5.1	 	Events of Default.
	 
	5.1.1	 	The occurrence of any one or more of the following events shall
constitute a material default and breach of this Lease by Tenant (“Event
of Default”):
	 
	(a)	 	vacation or abandonment of all or any portion of the Premises
	 
	(b)	 	failure by Tenant to make any payment of Base Rent, Additional Rent or
any other sum payable by Tenant under this Lease within five (5) Business
Days after written notice from Landlord; provided, that Landlord shall not
be required to provide written notice of such failure to pay more than
twice in any twelve (121 consecutive month period before such failure
constitutes an Event of Default;
	 
	(c)	 	failure by Tenant to observe or perform any covenant or condition of
this Lease, other than the making of payments, where such failure shall
continue for a period of twenty (20) Business Days after written notice
from Landlord, or such additional time as is reasonably needed to cure the
default, provided, that Tenant shall diligently pursue the cure and
prosecute the same to completion;
	 
	(d)	 	(1) the making by Tenant of any general assignment or general
arrangement for the benefit of creditors; (2) the filing by or against
Tenant of a petition in bankruptcy, including reorganization or
arrangement, unless, in the case of a petition filed against Tenant,
unless the same is dismissed within twenty (20) Business Days; (3) the
appointment of a trustee or receiver to take possession of substantially
all of Tenant’s assets located in the Premises or of Tenant’s interest in
this Lease; (4) any execution, levy, attachment or other process of law
against any property of Tenant or Tenant’s interest in this Lease, unless
the same is dismissed within twenty (20) Business Days; (5) adjudication
that Tenant is bankrupt; (6) the making by Tenant of a transfer in fraud
of creditors; or (7) the failure of Tenant to generally pay its debts as
they become due; or
	 
	5.1.2	 	If a petition in bankruptcy is filed by or against Tenant, and if this
Lease is treated as an ‘unexpired lease” under applicable bankruptcy law
in such proceeding, then Tenant agrees that Tenant shall not attempt nor
cause any trustee to attempt to extend the applicable time period within
which this Lease must be assumed or rejected.
	 
	5.2	 	Remedies. If any Event of Default occurs, Landlord may at any time after
such occurrence, with or without notice or demand except as stated in this
paragraph, and without limiting Landlord in the exercise of any right or
remedy at law which Landlord may have by reason of such Event of Default,
exercise the rights and remedies, either singularly or in combination, as
are specified or described in the subparagraphs of this paragraph.

41

 

	5.2.1	 	Landlord may terminate this Lease and all rights of Tenant under this
Lease either immediately or at some later date by giving Tenant written
notice that this Lease is terminated. If Landlord so terminates this
Lease, then Landlord may recover from Tenant the sum of:
	 
	(a)	 	the unpaid Base Rent, Additional Rent and all other sums payable under
this Lease which have been earned at the time of termination;
	 
	(b)	 	interest at the Default Rate on the unpaid Base Rent, Additional Rent
and all other sums payable under this Lease which have been earned at the
time of termination; plus
	 
	(c)	 	the amount by which the unpaid Base Rent, Additional Rent and all
other sums payable under this Lease which would have been earned after
termination until the time of award exceeds the amount of such rental
loss, if any, as Tenant affirmatively proves could have been reasonably
avoided and interest on such excess at the Default Rate; plus
	 
	(d)	 	the amount by which the aggregate of the unpaid Base Rent, Additional
Rent and ail other sums payable under this Lease for the balance of the
Lease Tern after the time of award exceeds the amount of such rental loss,
if any, as Tenant affirmatively proves could be reasonably avoided, with
such difference being discounted to present value at the Prime Rate at the
time of award; plus
	 
	(e)	 	any other amount necessary to compensate Landlord for the detriment
proximately caused by Tenant’s failure to perform Tenant’s obligations
under this Lease or which, in the ordinary course of things, would be
likely to result from such failure, including, leasing commissions, tenant
improvement costs, renovation costs and advertising costs; plus
	 
	(f)	 	all such other amounts in addition to or in lieu of the foregoing as
may be permitted from time to time by applicable law.
	 
	5.2.2	 	Landlord shall also have the right, with or without terminating this
Lease, to re-enter the Premises and remove all persons and property from
the Premises. Landlord may cause property so removed from the Premises to
be stored in a public warehouse or elsewhere at the expense and for the
account of Tenant. .
	 
	5.2.3	 	Landlord shall also have the right, without terminating this Lease, to
accelerate and recover from Tenant the sum of all unpaid Base Rent,
Additional Rent and all other sums payable under the then remaining term
of the Lease, discounting such amount to present value at the Prime Rate.
	 
	5.2.4	 	If Tenant vacates, abandons or surrenders the Premises without
Landlord’s consent, or if Landlord re-enters the Premises as provided in
subparagraph 5.2.2 or takes possession of the Premises pursuant to legal
proceedings or through any notice procedure provided by law, then, if
Landlord does not elect to terminate this Lease, Landlord may, from time
to time, without terminating this Lease, either (a) recover ail Base Rent,
Additional Rent and all other sums payable under this Lease as they become
due or (b) relet the Premises or any part of the Premises on behalf of
Tenant for such term or terms, at such rent or rents and pursuant to such
other provisions as Landlord, in its sole discretion, may deem advisable,
all with the right, at Tenant’s cost, to make alterations and repairs to
the Premises and recover any deficiency from Tenant as set forth in
subparagraph 5.2.6.
	 
	5.2.5	 	None of the following remedial actions after an Event of Default, singly
or in combination, shall be construed as an election by Landlord to
terminate this Lease unless Landlord has in fact given Tenant written
notice that this Lease is terminated: an act by Landlord to maintain or
preserve the Premises; any efforts by Landlord to relet the Premises; any
repairs or alterations made by Landlord to the Premises; re-entry,
repossession or reletting of the Premises by Landlord pursuant to this
paragraph;

42

 

	 	 	or the appointment of a receiver, upon the initiative of Landlord, to
protect Landlord’s interest under this Lease. If Landlord takes any of the
foregoing remedial action without terminating this Lease, Landlord may
nevertheless at any time after taking any such remedial action terminate
this Lease by written notice to Tenant.
	 
	5.2.6	 	If Landlord relets the Premises, Landlord shall apply the revenue from
such reletting as follows:    to the payment of any indebtedness of
Tenant to Landlord other than Base Rent, Additional Rent or any other sums
payable by Tenant under this Lease; second, to the payment of any cost of
reletting (including finders’ fees and leasing commissions); third, to the
payment of the Cost of any alterations, improvements, maintenance and
repairs to the Premises; and fourth, to the payment of Base Rent,
Additional Rent and other sums due and payable and unpaid under this
Lease. Landlord shall hold and apply the residue, if any, to payment of
future Base Rent, Additional Rent and other sums payable under this Lease
as the same become due, and shall deliver the eventual balance, if any, to
Tenant. Should revenue from letting during any month, after application
pursuant to the foregoing provisions, be less than the sum of the Base
Rent, Additional Rent and other sums payable under this Lease and
Landlord’s expenditures for the Premises during such month, Tenant shall
be obligated to pay such deficiency to Landlord as and when such
deficiency arises.
	 
	5.2.7	 	Pursuit of any of the foregoing remedies shall not preclude pursuit of
any of the other remedies provided in this Lease or by law (ail such
remedies being cumulative), nor shall pursuit of any remedy provided in
this Lease constitute a forfeiture or waiver of any Base Rent, Additional
Rent or other sum payable under this Lease or of any damages accruing to
Landlord by reason of the violation of any of the covenants or conditions
contained in this Lease.
	 
	5.3	 	Right to Perform. If Tenant shall fail to pay any sum of money, other
than Base Rent or Additional Rent, required to be paid by it under this
Lease or shall fail to perform any other act on its part to be performed
under this Lease, and such failure shall continue for ten (10) Business
Days after notice of such failure by Landlord, or such shorter time in an
emergency situation if reasonable under the circumstances, Landlord may,
but shall not be obligated to, and without waiving or releasing Tenant
from any obligations of Tenant, make such payment or perform such other
act on Tenant’s part to be made or performed as provided in this Lease.
Landlord shall have (in addition to any other right or remedy of Landlord)
the same rights and remedies in the event of the nonpayment of sums due
under this paragraph as in the case of default by Tenant in the payment of
Base Rent.
	 
	5.4	 	Landlord’s Default. Landlord shall not be in default under this Lease
unless Landlord fails to perform obligations required of Landlord within
twenty (20) Business Days after written notice is delivered by Tenant to
Landlord and to the holder of any mortgages or deeds of trust
(collectively, “Lender”) covering the Premises whose name and address
shall have theretofore been furnished to Tenant in writing, specifying the
obligation which Landlord has failed o perform; provided, however, that if
the nature of Landlord’s obligation is such that more than twenty (201
Business Days are required for performance, then Landlord shall not be in
default if Landlord or Lender commences performance within such twenty
t20) Business Day period and thereafter diligently prosecutes the same to
completion. All obligations of Landlord hereunder shall be construed as
covenants, not conditions. In the event of any default, breach or
violation of Tenant’s rights under this Lease by Landlord, Tenant’s
exclusive remedy shall be either an action for specific performance or an
action for actual damages. Subject to the self-help provisions contained
in Section 4.’t .2 of this Lease, Tenant hereby waives the benefit of any
laws granting it the right to perform Landlord’s obligation, a lien upon
the property of Landlord and/or upon Rent due Landlord, or the right to
terminate this Lease or withhold Rent on account of any Landlord default.

SECTION 6: MISCELLANEOUS PROVISIONS

43

 

	6.1	 	Notices. Any notice, request, approval, consent or written communication
required or permitted to be delivered under this Lease shall be: (a) in
writing; (b) transmitted by personal delivery, express or courier service,
United States Postal Service in the manner described below, or electronic
means of transmitting written material; and (c) deemed to be delivered on
the earlier of the date received or four (4) Business Days after having
been deposited in the United States Postal Service, postage prepaid. Such
writings shall be addressed to Landlord or Tenant, as the case may be, at
the respective designated addresses set forth opposite their signatures,
or at such other addresses) as they may, after the execution date of this
Lease, specify by written notice delivered in accordance with this
paragraph, with copies to the persons at the addresses, if any, designated
opposite each party’s signature. Those notices which contain a notice of
breach or default or a demand for performance may be sent by any of the
methods described in clause (bf above, but if transmitted by personal
delivery or electronic means, shall also be sent concurrently by certified
or registered mail, return receipt requested.
	 
	6.2	 	Attorney’s Pees and Expenses. In the event either party requires the
services of an attorney in connection with enforcing the terms of this
Lease, or in the event suit is brought for the recovery of Base Rent,
Additional Rent or any other sums payable under this Lease or for the
breach of any covenant or condition of this Lease, or for the restitution
of the Premises to Landlord or the eviction of Tenant during the Lease
Term or after the expiration or earlier termination of this Lease, the
non-breaching party shall be entitled to a reasonable sum for attorney’s
and paralegal’s fees, expenses and court costs, including those relating
to any appeal.
	 
	6.3	 	No Accord and Satisfaction. No payment by Tenant or receipt by Landlord
of an amount less than the Base Rent or Additional Rent or any other sum
due and payable under this Lease shall be deemed to be other than a
payment on account of the Base Rent, Additional Rent or other such sum,
nor shall any endorsement or statement on any check or any letter
accompanying any check or payment be deemed an accord and satisfaction,
nor preclude Landlord’s right to recover the balance of any amount payable
or Landlord’s right to pursue any other remedy provided in this Lease or
at taw.
	 
	6.4	 	Successors: Joint and Several Liability. Except as provided in the
paragraph captioned ‘Exculpation and Limitation of Liability’ and subject
to the paragraph captioned “Assignment and Subletting Landlord”, ail of
the covenants and conditions contained in this Lease shall apply to and be
binding upon Landlord and Tenant and their respective heirs, executors,
administrators, successors and assigns. In the event that more than one
person, partnership, company, corporation or other entity is included in
the term -Tenant”, then each such person, partnership, company,
corporation or other entity shall be jointly and severally liable for all
obligations of Tenant under this Lease.
	 
	6.5	 	Choice of Law. This Lease shall be construed and governed by the laws of
the state in which the Land is located. Tenant consents to Landlord’s
choice of venue for any legal proceeding brought by Landlord or Tenant to
enforce the terms of this Lease.
	 
	6.6	 	No Waiver of Remedies. The waiver by either party of any covenant or
condition contained in this Lease shall not be deemed to be a waiver of
any subsequent breach of such covenant or condition nor shall any custom
or practice which may develop between the parties in the administration of
this Lease be construed to waive or lessen the rights of such party to
insist on the strict performance by the other party of all of the
covenants and conditions of this Lease. No act or thing done by either
party or its Agents during the Lease Term shall be deemed an acceptance or
a surrender of the Premises, and no agreement to accept a surrender of the
Premises shall be valid unless made in writing and signed by such party.
The mention in this Lease of any particular remedy shall not preclude
Landlord from any other remedy it might have, either under this Lease or
at law, nor shall the waiver of or redress for any violation of any
covenant or condition in this Lease or in any of the rules or regulations
attached to this Lease or later adopted by such party, prevent a
subsequent act, which would have originally constituted a violation, from
having all the force and effect of an

44

 

	 	 	original violation. The receipt by Landlord of Base Rent, Additional Rent
or any other sum payable under this Lease with knowledge of a breach of
any covenant or condition in this Lease shall not be deemed a waiver of
such breach. The failure of Landlord to enforce any of the rules and
regulations attached to this Lease or later adopted, against Tenant or any
other tenant in the Building, shall not be deemed a waiver. Any waiver by
either party must be in writing and signed by such party to be effective.
	 
	6.7	 	Offer to Lease. The submission of this Lease to Tenant or its broker or
other agent does not constitute an offer to Tenant to lease the Premises.
This Lease shall have no force or effect until: (a) it is executed and
delivered by Tenant to Landlord; and (b) it is executed and delivered by
Landlord to Tenant.
	 
	6.8	 	Force Maieure. In the event that either party shall be delayed, hindered
in or prevented from the performance of any act or obligation required
under this Lease by reason of acts of God, strikes, lockouts, labor
troubles or disputes, inability to procure or shortage of materials or
labor, failure of power or utilities, delay in transportation, fare,
vandalism, accident, flood, severe weather, other casualty, Governmental
Requirements (including mandated changes in the Plans and Specifications
or the Tenant Improvements resulting from changes in pertinent
Governmental Requirements or interpretations thereof), riot, insurrection,
civil commotion, sabotage, explosion, war, natural or local emergency,
acts or omissions of others, or other reasons of a similar or dissimilar
nature not solely the fault of, or under the exclusive control of such
party, then performance of such act or obligation shall be excused for the
period of the delay and the period for the performance of any such act or
obligation shall be extended for the period equivalent to the period of
such delay.
	 
	6.9	 	Landlord’s Consent. Unless otherwise provided in this Lease, whenever
Landlord’s consent, approval or other action is required under the terms
of this Lease, such consent, approval or action shall be subject to
Landlord’s judgment or discretion exercised reasonably and in good faith
and shall be delivered in writing.
	 
	6.10	 	Severability Captions. If any clause or provision of this Lease is
determined to be illegal, invalid, or unenforceable under present or
future laws, the remainder of this Lease shall not be affected by such
determination, and in lieu of each clause or provision that is determined
to be illegal, invalid or unenforceable, there 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. Headings or captions in this Lease are added as a
matter of convenience only and in no way define, limit or otherwise affect
the construction or interpretation of this Lease.
	 
	6.11	 	Interpretation. Whenever a provision of this Lease uses the term (a)
“include” or including”, that term shall not be limiting but shall be
construed as illustrative, (b) ‘covenant’, that term shall include any
covenant, agreement, term or provision, (c) “at law”, that term shall mean
at law or in equity, or both, and (d) “day’, that uncapitalized word shall
mean a calendar day. This Lease shall be given a fair and reasonable
interpretation of the words contained in it without any weight being given
to whether a provision was drafted by one party or its counsel.
	 
	6.12	 	Incorporation of Prior Agreements amendments. This Lease contains all of
the agreements of the parties to this Lease with respect to any matter
covered or mentioned in this Lease, and no prior agreement or
understanding pertaining to any such matter shall be effective for any
purpose. No provision of this Lease may be amended or added to except by
an agreement in writing signed by the parties to this Lease or their
respective successors in interest.
	 
	6.13	 	Authority. If Tenant is a partnership, company, corporation or other
entity, each individual executing this Lease on behalf of Tenant
represents and warrants to Landlord that he or she is duly authorized to
so execute and deliver this Lease and that all partnership, company,
corporation or other entity

45

 

	 	 	actions and consents required for execution of this Lease have been given,
granted or obtained. If Tenant is a partnership, company, corporation or
other business organization, it shall, within ten (10) Business Days after
demand by Landlord, deliver to Landlord satisfactory evidence of the due
authorization of this Lease and the authority of the person executing this
Lease on its behalf.
	 
	6.14	 	Time of Essence. Time is of the essence with respect to the performance
of every covenant and condition of this Lease.
	 
	6.15	 	Survival of Obligations. Notwithstanding anything contained in this Lease
to the contrary or the expiration or earlier termination of this Lease,
any and all obligations of either party accruing prior to the expiration
or termination of this Lease shall survive the expiration or earlier
termination of this Lease, and either party shall promptly perform all
such obligations whether or not this Lease has expired or terminated. Such
obligations shall include any and ail indemnity obligations set forth in
this Lease.
	 
	6.16	 	Consent to Service. The addresses of Landlord and Tenant provided in
accordance with Section 6.1 above shall be used for services of process.
Nothing in this paragraph shall affect the right to serve process in any
other manner permitted by law.
	 
	6.17	 	Landlord’s Authorized Agents. Notwithstanding anything contained in the
Lease to the contrary, including without limitation, the definition of
Landlord’s Agents, only officers of Riggs Bank N.A., are authorized to
amend, renew or terminate this Lease, or to compromise any of Landlord’s
claims under this Lease or to bind Landlord in any manner. Without
limiting the effect of the previous sentence, no property manager or
broker shall be considered an authorized agent of Landlord to amend, renew
or terminate this Lease or to compromise any of Landlord’s claims under
this Lease or to bind Landlord in any manner. 6.18 Waiver of Jury Trial.
Landlord and Tenant agree to waive trial by jury in any action, proceeding
or counterclaim brought by either against the other on any matter arising
out of or relating in any way to this Lease.

46

 

     IN WITNESS WHEREOF, this Lease has been executed the day and year first
above set forth.

	 	 	 	 	 
	Designated Address for Landlord:	 	LANDLORD:
	
 	 	
 
	 
	 	 	 	 
	c/o Riggs Trust Group	 	RIGGS & COMPANY, a division of Riggs Bank
	Attn: ___________________	 	N.A., as Trustee of the Multi-Employer Property Trust,
	808 17th Street, N.W.

	 	 	 	a trust organized under 12 C.F.R Section 9.18
	Washington, D.C. 20006
	 	 	 	 
	Facsimile: 202-835-6887
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	/s/ Robert R. Villeneuve
	

	 	 	 	
 
	and to:

	 	Name:
	 	Robert R. Villeneuve
	

	 	Its:
	 	Managing Director
	 
	 	 	 	 
	with a copy to Manager at:
	 	 	 	 
	
 
	 	 	 	 
	 
	 	 	 	 
	Trammell Crow Company
	 	 	 	 
	Attn: Gregory Armstrong
	 	 	 	 
	7535 E. Hampden Avenue, Suite 650
	 	 	 	 
	Denver, CO 80231-4845
	 	 	 	 
	Facsimile: 303-705-4399
	 	 	 	 
	 
	 	 	 	 
	Designated Address for Tenant:	 	TENANT:
	
 	 	
 
	Partminer, Inc.
	 	 	 	 
	Attn: General Counsel	 	PARTMINER, INC., a New York corporation
	432 Park Avenue South
	 	 	 	 
	New York, New York 10016

	Facsimile: 212-592-6859	 	 	 
	

	 	By:
	 	/s/ Thomas Egan
	

	 	 	 	
 
	 
	 	Name:
	 	Thomas Egan
	

	 	Its:
	 	VP Training & Administration
	:
	 	 	 	 
	 
	 	 	 	 
	with a copy to Tenant at:
	 	 	 	 
	
 
	 	 	 	 
	PartMiner, Inc.
	 	 	 	 
	7807 Peakview Avenue, Suite                    
	 	 	 	 
	Denver, Colorado
	 	 	 	 
	Facsimile:                    
	 	 	 	 

47

 

LANDLORD ACKNOWLEDGEMENT

	 	 	 	 	 
	DISTRICT OF COLUMBIA

	 	 )	 	 
	

	 	 )ss.
	 	 
	                   

	 	 )	 	 

     On this 5th day of September, 2000, before me personally appeared Robert
R. Villeneuve, to me known to be a Managing Director of Riggs & Company, a
division of Riggs Bank N.A., the Trustee of the Multi-Employer Property Trust,
the national banking association that executed the within and foregoing
instrument, and acknowledged said instrument to be the free and voluntary act
and deed of said national banking association as trustee, for the uses and
purposes therein mentioned, and on oath stated that he was authorized to
execute said instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seat the day and ear first above written.

/s/ Denise Hart-Gamble

Name: Denise Hart-Gamble NOTARY PUBLIC in and for the

District of Columbia, residing at Uggs Bank N.A. My

appointment expires: March 3L, 2003

TENANT ACKNOWLEDGEMENT (CORPORATION)

	 	 	 	 	 
	STATE OF NEW YORK

	 	 )	 	 
	

	 	 ) ss.
	 	 
	COUNTY OF SUFFOLK

	 	 )	 	 

     On this 31st day of July, 2000, before me, a Notary Public in and for
the State of New York, personally appeared Thomas Egan, the VP Training &
Administration of PartMiner, Inc. the New York corporation that executed the
within and foregoing instrument, and acknowledged said instrument to be the
free and voluntary act and deed of said corporation for the uses and purposes
therein mentioned, and on oath stated that he/they was/were authorized to
execute said instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seat the day and ear first above written.

/s/ Angela
Murdock

Name: Angela Murdock NOTARY PUBLIC in and for the State of

New York. My appointment expires: March 10, 2001

48

 

EXHIBIT A TO LEASE

LEGAL DESCRIPTION OF LAND

TRACT 4.3 SUBDIVISION OF SECTION 21, TOWNSHIP 5 SOS, RANGE 67 WEST OF THE 6TH
P.M. COUNTY OF ARAPAHOE, STATE OF COLORADO, RECORDED FEBRUARY 18, 1905 1N PLAT
BOOK 1 PAGE 12 AND 13.

EXCEPT THAT PORTION CONVEYED TO THE COUNTY OF ARAPAHOE, COLORADO. BY INSTRUMENT
RECORDED APRIL 30, 1986 IN OK 4737 (5139) AT PAGE 628. EXCEPT THAT PORTION
CONVEYED TO THE COUNTY OF ARAPAHOE, COLORADO, BY INSTRUMENT RECORDED MAY 6,
1987 IN BOOK 5139 AT PAGE 639. AREA OF THIS PARCEL IS 8.778 ACRES, MORE OR
LESS.

49

 

EXHIBIT B TO LEASE

DRAWING SHOWING LOCATION OF THE PREMISES

50

 

EXHIBIT C TO LEASE

LISTING OF PLANS AND SPECIFICATIONS FOR TENANT IMPROVEMENTS

	1.	 	Partminer, Inc., Third Floor Space Plan, Sheet No. 3/SSP.1, Project
No.0016.102.1, dated 7/12/00 prepared by W.E. Kieding Interior Architects.

51

 

EXHIBIT D TO LEASE

FORM OF MEMORANDUM OF COMMENCEMENT DATE

     Riggs & Company, a division of Riggs Bank N.A., as Trustee of the
Multi-Employer Property Trust, a trust organized under 7 2 C.F.R. Section 9.18,
as Landlord, and Partminer, Inc., as Tenant, executed that certain Lease dated
as of , 2000 (the “Lease”).

     The tease contemplates that upon satisfaction of certain conditions
Landlord and Tenant wilt agree and stipulate as to certain provisions of the
Lease. Alt such conditions precedent to that stipulation have been satisfied.

     Landlord and Tenant agree as follows:

	 	1.	 	The Commencement Date of the Lease is                    .
	 
	 	2.	 	The Termination Date of the Lease is                    .
	 
	 	3.	 	The Premises consist of                     rentable square
feet.
	 
	 	4.	 	Base Rent is as follows:
	 
	 	 	 	                    through            ; $                    per month
	 
	 	 	 	                    through            ; $                    per month
	 
	 	 	 	                    through            ; $                    per month
	 
	 	5.	 	Tenant’s Pro Rata Share is                     percent (                   %).
	 
	 	6.	 	The Lease is in full force and effect as of the date hereof, Landlord
has fulfilled all of its obligations under the Lease required to be
fulfilled by landlord on or prior to such date, and Tenant has no right of
set-off against any rentals.

     IN WITNESS WHEREOF, the parties have caused this Memorandum to be
duly executed as of                    , 2000.

	 	 	 	 	 	 	 
	LANDLORD:
	 	TENANT:

	Riggs & Company, a division of Riggs Bank, N.A., as trustee of the Multi-Employer Property Trust, a trust organized under 12 C.F.R. Section 9.18	 	Partminer, Inc.
	By:

	 	 	 	By:	 	 
	

	 	
 
	 	 	 	
 
	Name:

	 	 	 	Name:	 	 
	

	 	
 
	 	 	 	
 
	Its:

	 	 	 	Its:	 	 
	

	 	
 
	 	 	 	
 

52

 

EXHIBIT E TO LEASE

RULES AND REGULATIONS

     1. No sign, placard, picture, advertisement, name or notice shall be
installed or displayed on any part of the outside or inside of the Building or
Land without the prior written consent of the Landlord. Landlord shall have the
right to remove, at Tenant’s expense and without notice, any sign installed or
displayed in violation of this rule. All approved signs or lettering on doors
and wails shall be printed, painted, affixed or inscribed at the expense of
Tenant by a person chosen by Landlord.

     2. If Landlord objects in writing to any curtains, blinds, shades, screens
or hanging plants or other similar objects attached to or used in connection
with any window or door of the Premises, Tenant shall immediately discontinue
such use. No awning shall be permitted on any part of the Premises. Tenant
shall not place anything against or near glass partitions or doors or windows
which may appear unsightly from outside the Premises.

     3. Tenant shall not obstruct any sidewalk, halls, passages, exits,
entrances, elevators, escalators, or stairways of the Building. The halls,
passages, exits, entrances, elevators, escalators and stairways are not open to
the general public. Landlord shall in all cases retain the right to control and
prevent access to such areas of all persons whose presence in the judgment of
Landlord would be prejudicial to the safety, character, reputation and interest
of the Land, Building and the Building’s tenants; provided that, nothing in
this Lease contained shall be construed to prevent such access to persons with
whom any Tenant normally deals in the ordinary course of its business, unless
such persons are engaged in illegal activities. Tenant shall not go upon the
roof of the Building.

     4. The directory of the Building will be provided exclusively for the
display of the name and location of tenants only, and Landlord reserves the
right to exclude any other names therefrom.

     5. All cleaning and janitorial services for the Building and the Premises
shall be provided exclusively through Landlord, and except with the written
consent of. Landlord, no person or persons other than those approved by
Landlord shall be employed by Tenant or permitted to enter the Building for the
purpose of cleaning the same. Cleaning and janitorial services shall be
provided five (5) days per week. Tenant shall not cause any unnecessary labor
by carelessness or indifference to the good order and cleanliness of the
Premises. Landlord shall not in any way be responsible to any Tenant for any
loss of property on the Premises, however occurring, or for any damage to any
Tenant’s property by the janitor, any of Landlord’s Agents or any other person.

     6. Landlord will furnish Tenant, free of charge, two (2) keys to each door
lock in the Premises. Landlord may make a reasonable charge for any additional
keys. Tenant shall not make or have made additional keys, and Tenant shall not
alter any lock or install a new additional lock or bolt on any door of its
Premises. Tenant, upon the termination of its tenancy, shall deliver to
landlord the keys of all doors which have been furnished to Tenant, and in the
event of loss of any keys so furnished, shall pay Landlord therefore.

     7. HVAC service shall be provided to the Premises Monday through Friday
from 7:00 a.m. to 6:00 p.m. and on Saturdays from 8:00 a.m. to 1:00 p.m.

     8. If Tenant requires telegraphic, telephonic, computer circuits, burglar
alarm or similar services, it shall first obtain, and comply with, Landlord’s
instructions for their installation, and shall pay the entire cost of such
installation (s).

     9. Tenant shall not place a load upon any floor of the Premises which
exceeds the load per square foot which such floor was designed to carry and
which is allowed by Governmental Requirements.

53

 

Landlord shall have the right to prescribe the weight, size and position of all
equipment, materials, furniture or other property brought into the Building.
Heavy objects shall, if considered necessary by Landlord, stand on such
platforms as determined by Landlord to be necessary to properly distribute the
weight. Business machines and mechanical equipment belonging to Tenant, which
cause noise or vibration that may be transmitted to the structure of the
Building or to any space in the Building or to any other tenant in the
Building, shall be placed and maintained by Tenant, at Tenant’s expense, on
vibration eliminators or other devices sufficient to eliminate noise or
vibration. The persons employed to move such equipment in or out of the
Building must be acceptable to Landlord. Landlord will not be responsible for
loss of, or damage to, any such equipment or other property from any cause, and
al( damage done to the Building by maintaining or moving such equipment or
other property shall be repaired at the expense of Tenant.

     10. Tenant shall not use or keep in the Premises any kerosene, gasoline or
inflammable or combustible fluid or material other than those limited
quantities permitted by the Lease. Tenant shall not use or permit to be used in
the Premises any foul or noxious gas or substance, or permit or allow the
Premises to be occupied or used in a manner offensive or objectionable to
Landlord or other occupants of the Building by reason of noise, odors or
vibrations nor shall Tenant bring into or keep in or about the Premises any
birds or animals.

     11. Tenant shall not use any method of heating or air-conditioning other
than that supplied by Landlord.

     12. Tenant shall not waste any utility provided by Landlord and agrees to
cooperate fully with Landlord to assure the most effective operation of the
Building’s heating and air-conditioning and to comply with any governmental
energy-saving rules, laws or regulations of which Tenant has actual notice.

     13. Landlord reserves the right, exercisable without notice and without
liability to Tenant, to change the name and street address of the Building.

     14. Landlord reserves the right to exclude from the Building between the
hours of 6 p.m. and 7 a.m. the following day, or such other hours as may be
established from time to time by Landlord, and on Sundays and legal holidays,
any person unless that person is known to the person or employee in charge of
the Building and has a pass or is properly identified. Tenant shall be
responsible for all persons for whom it requests passes and shall be liable to
Landlord for all acts of such persons. Landlord shall not be liable for damages
for any error with regard to the admission to or exclusion from the Building of
any person. Landlord reserves the right to prevent access to the Building in
case of invasion, mob, riot, public excitement or other commotion by dosing the
doors or by other appropriate action.

     15. Tenant shall close and lock the doors of its Premises and entirely
shut off all water faucets or other water apparatus, and electricity, gas or
air outlets before Tenant and its employees leave the Premises. Tenant shall be
responsible for any damage or injuries sustained by other tenants or occupants
of the Building or by Landlord for noncompliance with this rule.

     16. Tenant shall not obtain for use on the Premises ice, drinking water,
food, beverage, towel or other similar services, except at such hours and under
such regulations as may be fixed by Landlord. Landlord has approved the number
and location of Tenant’s vending machines as shown on Tenant’s space plan.

     17. The toilet rooms, toilets, urinals, wash bowls and other apparatus
shall not be used for any purpose other than that for which they were
constructed and no foreign substance of any kind whatsoever shall be deposited
in them. The expenses of any breakage, stoppage or damage resulting from the
violation of this rule shall be borne by Tenant if it or its employees or
invitees shall have caused it.

     18. Tenant shall not sell, or permit the sale at retail, of newspapers,
magazines, periodicals, theater tickets or any other goods or merchandise to
the general public in or on the Premises. Tenant shall

54

 

not make any room-to-room solicitation of business from other tenants in the
Building. Tenant shall not use the Premises for any business or activity other
than that specifically provided for in the Lease.

     19. Tenant shall not install any radio or television antenna, loudspeaker
or other device on the roof or exterior walls of the Building. Tenant shall not
interfere with radio or television broadcasting or reception from or in the
Building or elsewhere.

     20. Tenant shall not mark, drive nails, screws or drill into the
partitions, woodwork or plaster or in any way deface the Premises. Landlord
reserves the right to direct electricians as to where and how telephone and
telegraph wires are to be introduced to the Premises. Tenant shall not cut or
bore holes for wires. Tenant shall not affix any floor covering to the floor of
the Premises in any manner except as approved by Landlord. Tenant shall repair
any damage resulting from noncompliance with this rule.

     21. Tenant shall not install, maintain or operate upon the Premises any
vending machine without the written consent of Landlord. Landlord has approved
the number and location of Tenant’s vending machines as shown on Tenant’s space
plan.

     22. Canvassing, soliciting and distribution of handbills or any other
written material, and peddling in the Building or Land are prohibited, and
Tenant shall cooperate to prevent the same.

     23. Landlord reserves the right to exclude or expel from the Building and
Land any person who, in Landlord’s judgment, is intoxicated, under the
influence of liquor or drugs or in violation of any of these Rules and
Regulations.

     24. Tenant shall store all of its trash and garbage within the Premises.
Tenant shall not place in any trash box or receptacle any material which cannot
be disposed of in the ordinary and customary manner of trash and garbage
disposal. All garbage and refuse disposal shall be made in accordance with
directions issued from time to time by Landlord.

     25. The Premises shall not be used for lodging or any improper or immoral
or objectionable purpose. No cooking shall be done or permitted by Tenant,
except that use by Tenant of Underwriters’ Laboratory approved equipment for
brewing coffee, tea, hot chocolate and similar beverages shall be permitted;
provided that, such equipment and its use is in accordance with all
Governmental Requirements.

     26. Tenant shall not use in the Premises or in the public halls of the
Building any hand truck except those equipped with rubber tires and side guards
or such other material-handling equipment as Landlord may approve. Tenant shall
not bring any other vehicles of any kind into the Building.

     27. Without the prior written consent of Landlord, Tenant shall not use
the name of the Building in connection with or in promoting or advertising the
business of Tenant except as Tenant’s address.

     28. Tenant shall comply with all safety, fire protection and evacuation
procedures and regulations established by Landlord or any governmental agency.

     29. Tenant assumes any and all responsibility for protecting the Premises
from theft, robbery and pilferage, which includes keeping doors locked and
other means of entry to the Premises closed.

     30. The requirements of Tenant will be attended to only upon appropriate
application to the Manager of the Building by an authorized individual.
Employees of Landlord are not required to perform any work or do anything
outside of their regular duties unless under special instructions from
Landlord, and no employee of Landlord is required to admit Tenant to any space
other than the Premises without specific instructions from Landlord.

55

 

     31. Tenant shall not park its vehicles in any parking areas designated by
Landlord as areas for parking by visitors to the Building or Land. Tenant shall
not leave vehicles in the parking areas overnight nor park any vehicles in the
Building parking areas other than automobiles, motorcycles, motor driven or
nonmotor driven bicycles or four-wheeled trucks.

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

     33. These Rules and Regulations are in addition to, and shall not be
construed to in any
way modify or amend, in whole or in part, the covenants and conditions of any
lease of premises in the Building. If any provision of these Rules and
Regulations conflicts with any provision of the Lease, the terms of the Lease
shall prevail.

     34. Landlord reserves the right to make such other and reasonable Rules
and Regulations as, in its judgment, may from time to time be needed for safety
and security, the care and
cleanliness of the Building and Land and the preservation of good order in the
Building. Tenant agrees to abide by all the Rules and Regulations stated in
this exhibit and any additional rules and
regulations which are so made by Landlord.

     35. Tenant shall be responsible for the observance of all of the foregoing
rules by Tenant and Tenant’s Agents.

56

 

EXHIBIT F TO LEASE

DESCRIPTION OF PERMITTED EXTERIOR SIGNS

     Tenant shall have the right to install an identification panel or
otherwise be included on the monument sign located outside of the Building. Any
such Tenant signage shall be subject to the mutual approval of the parties as
to size and design.

57

 

EXHIBIT G TO LEASE

SCHEDULE OF CLEANING SERVICES

Introductory Note: All services set forth in this Exhibit shall only be
performed if and to the extent the applicable surface to be vacuumed, buffed,
polished, swept, moped, dusted, wiped, washed or otherwise cleaned is exposed
and readily accessible.

Daily Cleaning Services

	1.	 	Empty waste baskets and remove refuse to designated area. Reline and wipe
clean
receptacles as needed.
	 
	2.	 	Break down ail boxes or any items marked trash and remove to designated
areas.
	 
	3.	 	Thorough vacuuming of ail carpeted area, including corner and crevice
vacuuming in all
tenant spaces and common areas.
	 
	4.	 	Vacuum upholstered chairs and sofas where necessary.
	 
	5.	 	Sweep all hard floors (tile, wood, etc.).
	 
	6.	 	Sweep and damp mop all vinyl, marble and quarry file floors. Spot buff as
needed.
	 
	7.	 	Spot clean all tenant and common area carpets as needed. Shampoo all common
area high
traffic lanes as needed.
	 
	8.	 	Dust and/or wipe clean the following surfaces:

	 	•	 	desks
	 
	 	•	 	chairs
	 
	 	•	 	file cabinets
	 
	 	•	 	tables
	 
	 	•	 	telephones
	 
	 	•	 	pictures and frames
	 
	 	•	 	doors
	 
	 	•	 	lamps
	 
	 	•	 	ledges and shelves
	 
	 	•	 	desk/furniture partitions
	 
	 	•	 	any other horizontal surface of a fixture or furniture subject to collecting dust

	9.	 	Wipe clean the following surfaces:

	 	•	 	window sills and (edges
	 
	 	•	 	counter tops and kitchen cabinets
	 
	 	•	 	switch plates
	 
	 	•	 	private entrance doors
	 
	 	•	 	glass, mirrored and wood doors, panels, windows and walls
	 
	 	•	 	walls in kitchen and disposal area
	 
	 	•	 	conference tables

	10.	 	Wash, clean and disinfect water fountains and/or coolers. Give special
attention to adjacent
floor areas.

58

 

	11.	 	Establish regular cleaning maintenance program for floor in public lobby
area in conjunction with Property Manager; standard necessary to maintain is
high quality shine with no water marks, stains, scuffing or other signs of
wear.
	 
	12.	 	Wipe and polish all glass, chrome and metal surfaces such as windows
(interior and up to standard ceiling height, partitions, banisters, door knobs,
tight switch plates, kick plates, directional signs and door saddles.
	 
	13.	 	Dust and wipe clean sand urns.
	 
	14.	 	Polish directory.
	 
	15.	 	Vacuum and spot shampoo all carpet entrance mats.
	 
	16.	 	Spot clean all wall surfaces.
	 
	17.	 	Clean all entrance doors.

Daily Elevators

	1.	 	Wash and polish wood and stainless walls, doors and hall plate. Keep tracks
clean of dust, dirt and debris. Vacuum carpet. Spot clean carpet as needed.

Daily Vending Areas

	1.	 	Thoroughly vacuum carpeting and damp mop tile flooring daily.
	 
	2.	 	Thoroughly wipe all tops and sides of vending machines and express mailbox
cabinets with
damp cloth. Spot clean all wall surfaces. Thoroughly clean microwave
inside and outside.
	 
	3.	 	Empty trash and reline can daily.
	 
	4.	 	Wash trash container as needed.

Daily Lavatories

	1.	 	Sweep and wet mop all tile floors using disinfectant.
	 
	2.	 	Thoroughly clean all mirrors, top to bottom.
	 
	3.	 	Scour, wash and disinfect all sink basins, counter tops, bowls, urinals,
including undersides.
	 
	4.	 	Wash toilet seats, both sides.
	 
	5.	 	Wipe clean all partitions.
	 
	6.	 	Wipe clean all wall tile as needed.
	 
	7.	 	Remove all trash and sanitary waste, wash receptacles as necessary. Remove
rubbish to
designated area.
	 
	8.	 	Restock hand soap and paper products.

59

 

	9.	 	Polish all stainless dispensers.

Weekly Cleaning Services

	1.	 	Wash and sanitize metal partitions. Dust horizontal surfaces exceeding 70”
height. Damp clean ceiling and exhaust fans.
	 
	2.	 	Wash all interior glass, including hallways, widows (excluding second story
atrium windows), lobby doors, partitions and glass door panels.
	 
	3.	 	Dust all blinds in common areas.
	 
	4.	 	Sweep fire tower stairwells. Wet mop as needed. Wipe hand rails and dust
metalwork.
	 
	5.	 	Wipe clean all desk tops and credenzas.
	 
	6.	 	Remove all finger prints and dirt from door frames, kick and push plates,
handles and railings.
	 
	7.	 	Wet wipe all horizontal surfaces to 70” including moldings, shelves, etc.
	 
	8.	 	Polish all fine wood furniture including desks, chairs and cabinets.
	 
	9.	 	Spray buff all vinyl tiles floors as necessary.
	 
	10.	 	Machine buff other hard surfaces, floors to include ceramic, quarry and
marble title as necessary.
	 
	11.	 	Wipe clean all plant containers in common areas.

Monthly/Quarterly Cleaning Services

	1.	 	Thoroughly wipe clean all ceiling vents and exhaust tans and area
immediately adjacent: monthly to quarterly, as needed.
	 
	2.	 	Strip and refinish all tile floors including restroom floors on a quarterly
basis.
	 
	3.	 	Wipe clean and remove all fingerprints from full height doors.
	 
	4.	 	Vacuum all upholstered chairs.
	 
	5.	 	Thoroughly clean all venetian blinds, pipes, ventilating and air
conditioning louvers, ducts and high molding: monthly to quarterly, as needed.
	 
	6.	 	Wipe clean as needed all vinyl base. Vacuum as needed all carpet cove base:
monthly to quarterly, as needed.
	 
	7.	 	Thoroughly wash all trash receptacles, inside and outside.
	 
	8.	 	Spot clean all vertical surfaces.
	 
	9.	 	Spray buff all vinyl floors (both tenant and common ) quarterly.

60

 

Semi-Annual Cleaning Services

     Wash all common area walls including wall covering, paint, marble and
vinyl base.

61

 

EXHIBIT H TO LEAST

TENANT’S TRADE FIXTURES

There are no trade fixtures on the Plans and Specifications set forth on
Exhibit C.

The following trade fixtures will be instated by Tenant: None

62

 

EXHIBIT I TO LEASE

WORK LETTER AND CONSTRUCTION AGREEMENT

(Landlord to Construct Improvements)

     1. Tenant’s Improvements.

     Except as set forth herein, Tenant accepts the Premises and existing
improvements therein in their “as is” condition. Landlord shall furnish and
install within the Premises those items of general construction, but not
personal property or trade fixtures (the “Tenant Improvements”), shown on the
plans and specifications attached to this Lease as Exhibit C or, if the
foregoing is not applicable, as finally approved by Landlord and Tenant,
pursuant to Paragraph 2 below. All Tenant Improvements shall be constructed
pursuant to this Work Letter and shall be performed by Landlord’s general
contractor utilizing those subcontractors selected by Landlord in accordance
with this Work Letter. Such general contractors and all subcontractors shall
satisfy those union labor requirements set forth in the Lease in the paragraph
captioned ‘Tenant’s Work Performance’.

     2. Pans and Specifications for Improvements.

          2.1 Tenant shall retain a licensed architect of its choice, subject to
Landlord’s prior written approval, to prepare the plans and specifications
described hereinafter for the Tenant Improvements. Landlord hereby approves
W.F. Kieding Interior Architects to serve as Tenant’s architect and space
planner. The plans and specifications shall be subject to Landlord’s approval,
which approval shall not be unreasonably delayed, provided that such plans and
specifications comply with and satisfy requirements (i) through (iii) set forth
below in subparagraph 2.3.

          2.2 No Later than ten (10) days following the date of execution of the
Lease by Tenant, Tenant shall cause its architect to furnish to Landlord for
Landlord’s approval space plans sufficient to convey the architectural design
of the Premises, including, without limitation, the location of doors,
partitions, electrical and telephone outlets, plumbing fixtures, heavy floor
loads and other special requirements (collectively, the “Space Plan’). If
required by Landlord, Tenant’s architect shall consult with Landlord’s engineer
in preparing the Space Plan, and incorporate such engineer’s requirements into
the Space Plan. The fees of such engineer shall be a Cost of Tenant
Improvements (as hereafter defined). If Landlord fails to disapprove the Space
Plan within the ten (10) day period following its receipt of the Space Plan,
the Space Plan shall be deemed approved. If Landlord shall disapprove of any
portion of the Space Plan within such ten (101 day period, Landlord shall
advise Tenant of the reasons therefor and shall notify Tenant of the revisions
to the Space Plan that are reasonably required by Landlord for the purpose of
obtaining approval. Tenant shall within seven (7) days submit to Landlord, for
Landlord’s approval, a redesign of the Space Plan, Incorporating the revisions
required by Landlord. If the redesign of the Space Plan is not approved by
Landlord within ten (10) days following Landlord’s receipt of same, then at
Landlord’s election either (a) this Lease may be terminated, and/or (b) the
period from the date of Landlord’s receipt of such redesign until the date
Landlord approves a subsequent redesign shall be deemed “Tenant Delay” (as
hereinafter defined).

          2.3 Tenant shall cause its architect to prepare from Tenant’s approved
Space Plan, complete architectural plans, drawings and specifications within
ten (10) days after Landlord approves the Space Plan. Such complete plans,
drawings and specifications are referred to herein as the “Plans”. Tenant’s
Plans shall (i) be compatible with the Building shell and with the design,
construction and equipment of the Building; (ii) comply with all applicable
laws and ordinances, and the rules and regulations of all governmental
authorities having jurisdiction; (iii) comply with all applicable insurance
regulations; and (iv) be consistent with the approved Space Plan. Tenant shall
submit the Plans for the approval of Landlord in the same manner as provided in
Subparagraph 2.2 above for approval by Landlord of Tenant’s Space Plan.

63

 

          2.4 Tenant shall cause its architect to provide documentation for all
changes to the Plans at the time each change is authorized for construction,
pursuant to the requirements of Paragraph 6. At the conclusion of construction,
Tenant shall cause its architect to update Tenant’s plans and specifications as
necessary to reflect all changes to the Plans during the course of construction
and to issue a set of sepias to the contractor for its review and mark up.
Tenant shall cause its architect to review and certify the contractor’s marked
up plans and provide to Landlord’s designated construction representative a
“record set” of as-built sepias within thirty (30) days following completion of
the Tenant Improvements. Landlord shall have no liability to Tenant or to any
other person for errors or omissions in the Plans, Landlord’s review being for
Landlord’s own purposes. Tenant shall rely solely on the advice and experience
of Tenant’s architect in assuring the accuracy and sufficiency of the Plans for
Tenant’s purposes.

     3. Building Shell Changes.

     If the Plans or any amendment thereof or supplement thereto shall require
changes in the Building shell, the cast of the Building shell work caused by
such Plans, amendment or supplement, shall be charged against Tenant. The
preceding sentence shall not be construed as requiring that Landlord must
approve any Plans which specify changes in the Building shell. If Building
shell work is permitted by Landlord, the cost thereof shall include all
architectural and/or engineering fees and expenses in connection therewith, as
well as compensation to Landlord for the costs of any delays which arise from
such changes (which delays shall also constitute Tenant Delay).

     4. Leasehold Improvement Approval and Cost.

          4.1 Landlord’s general contractor will be entitled to a contractor’s ‘fee
and general conditions fee (not to exceed the current market rate for such
fees). Upon receipt of the general contractor’s cost of construction, Landlord
shall provide Tenant with a detailed breakdown of the cost of furnishing and
installing the Tenant Improvements, including, without limitation: the cost of
constructing improvements; the cost of preparing engineering plans;
governmental agency plan check, permit and other fees; sales and use taxes;
Title 24 fees; all other costs to be expended by Tenant in the construction of
the Tenant Improvements; and a Landlord’s Construction Management fee of three
percent (3%) of the cost of the Tenant Improvements (collectively, the “Cost of
Tenant Improvements”). The Cost of Tenant Improvements may include expenses and
“soft costs” incurred by Tenant, such as the fees of Tenant’s architect. Tenant
shall approve in writing the estimated cost of Tenant Improvements within five
(5) days following its receipt of same. No construction of Tenant Improvements
shall commence until such approval is received by Landlord. At Landlord’s
election, any delay by Tenant in giving such approval shall constitute Tenant
Delay.

          4.2 Landlord shall establish an allowance (the ‘Tenant Improvement
Allowance”) of Six Hundred Seventy Thousand, Nine Hundred Seventy-Seven Dollars
($67’0,977.00), which Tenant Improvement Allowance shall be used by Landlord
solely for the design and installation of the Tenant Improvements. Tenant shall
have the right to use the Tenant Improvement Allowance for any improvements
described in the approved Plans. In no event shall the Tenant Improvement
Allowance be used to pay for costs of Tenant’s furniture or other personal
property, which shall be paid for by Tenant at its sole cost and expense. If
the Cost of Tenant Improvements is less than the Tenant Improvement Allowance,
Landlord shall retain such excess portion of the Tenant Improvement Allowance
as its sole and separate property and Tenant shall have no rights or claims to
it whatsoever, nor shall Tenant be entitled to any credit as a result of such
excess. Notwithstanding anything to the contrary contained in this Work Letter
and Construction Agreement, if the Cost of Tenant improvements exceeds the
Tenant Improvement Allowance (“Excess Cost of Tenant Improvements”), prior to
commencement of construction, Tenant shall deposit with Landlord, in cash, the
amount of such Excess Cost of Tenant improvements to be disbursed by Landlord
following full disbursement of the Tenant Improvement Allowance, and the
balance, if any, to be returned to Tenant, without interest, following
completion of the Tenant Improvements.

64

 

          4.3 If the Cost of Tenant Improvements increases due to the requirements
of any governmental agency subsequent to Landlord’s approval of the bids
pursuant to Paragraph 4.1, or for any other reason, Tenant shall pay to
Landlord the amount of any such increase within ten (10) Business Days after
receipt of notice of such cost increases.

          4.4 Subject to the terms of the Lease paragraph captioned “Removal of
Property’, all of the Tenant Improvements, whether or not the cost thereof is
covered by the Tenant Improvement Allowance, shall become the property of
Landlord upon expiration or earlier termination of the Lease and shall remain
on the Premises at all times during the Term.

     5. Tenant Changes. Tenant may request a change, addition or alteration in
the Tenant Improvements as shown by the Plans after Landlord’s final approval
of such Plans (a “Change Order”) by delivery of a written request to Landlord
for its approval and for the general contractor’s determination of (i) the
increase in the cost of work to implement the Change Order, and (ii) the
estimated delay, if any, in the construction of the Tenant Improvements
occasioned by the Change Order. Tenant’s architect shall complete ail working
drawings necessary to show the change, addition or alteration, and a Change
Order in form satisfactory to Landlord. Following its approval of the Change
Order and any delays in construction occasioned by the Change Order, Landlord
shall deliver to Tenant its written approval of the Change Order and
authorization to proceed with the work as shown by the Change Order,
conditioned upon payment by Tenant to Landlord, in advance and in full, of any
cost increase occasioned thereby. Landlord may decline any proposed Change
Order if the change is inconsistent with the provisions of any of paragraphs 1
through 4 above. Any delay caused by work stoppage pending Landlord’s approval
of a Change Order or payment by Tenant of any cost increase shall constitute
Tenant Delay.

     6. Construction of Tenant improvements.

          6.1 Upon approval by Landlord of the Plans, and Cost of the Tenant
Improvements, the general contractor shall proceed to secure a building permit
and commence construction.

          6.2 The construction of Tenant Improvements shall be subject to the
following:

     (i) As part of the Cost of the Tenant Improvements to be paid
by Tenant (subject to Landlord’s contribution of the Tenant
Improvement Allowance), Tenant shall reimburse Landlord for all
costs directly or indirectly related to the Tenant Improvements,
including, without Imitation: costs of site services, facilities and
utilities (such as trash removal, , etc.); costs of remedying
deficient or faulty work or inadequate clean-up done by Tenant or
its contractor(s). and costs incurred by reason of delays caused by
such work.

     (ii) All Tenant Improvements shall be installed only under the
supervision of Landlord or its designated agent, and Tenant shall
pay to Landlord a Construction Management fee in the amount of three
percent (3°,’0) as described in Paragraph 4 above, which cost will
be paid out of the Tenant Improvement Allowance.

          6.3 “Tenant Delay” shall include, without limitation, any delay in the
completion of construction of Tenant Improvements resulting from (i) Tenant’s
failure to comply with the provisions of this Work Letter and Construction
Agreement or the Lease, including without limitation Tenant’s failure to meet
any time deadlines established herein, (ii) any additional time as reasonably
determined by Landlord required for ordering, receiving, fabricating and/or
installing ‘stems of materials or other components of the construction of
Tenant Improvements, including, without limitation, mill work, which are not
used in the construction of Tenant Improvements in accordance with Landlord’s
building standards and which causes a delay in the Substantial Completion of
the Tenant Improvements beyond the time when such improvements would otherwise
be completed if constructed in accordance with the standards used in the
remainder of the Building, (iii) delay in work caused by submission by Tenant
of a request for any Change Order following

65

 

Landlord’s approval of the Plans, (iv) any additional time, as reasonably
determined by Landlord, required for implementation of any Change Order with
respect to the Tenant Improvements, (v) any changes in the Building Shell, or
(vi) any other delay arising from the act or omission of Tenant or Tenant’s
Agents. If there shall be any Tenant Delay, then Landlord may require Tenant to
commence the payment of Rent under the Lease based upon when Substantial
Completion would have occurred but for the Tenant Delay, or if not previously
required by Landlord, Tenant shall pay such Rent to Landlord prior to Tenant
occupying the Premises. Landlord shall not be liable for, and Tenant waives all
claims against Landlord for, any defaults of the general contractor and all
subcontractors and suppliers relating to construction of the Tenant
Improvements. In the event of any such default, Tenant shall look solely to the
general contractor or the subcontractors or suppliers. Notwithstanding anything
to the contrary herein, no act, omission, failure or request by Tenant or any
of its employees, agents, architects, contractors or suppliers shall constitute
a Tenant Delay unless and until (a) Landlord gives written notice to Tenant
stating that such act, omission, failure or request constitutes a Tenant Delay
and (b) Tenant fails to remedy such act, omission or failure or fails to
rescind such request within three (3) business days after such notice is given.
If Tenant fails to remedy such act, omission or failure or fails to rescind
such request within such three (3) business day period, then the resulting
Tenant Delay shall be deemed to commence as of the day such notice was given.

     7. Miscellaneous.

          7.1 Any default of Tenant in this Work Letter and Construction Agreement
shall constitute a default of Tenant under the Lease, and Landlord’s remedies
shall be as set forth therein. All provisions of the Lease are fully
incorporated in this Exhibit ‘C” as though set forth herein at length.

          7.2 Tenant shall designate one (1) construction representative authorized
to act for Tenant upon whom Landlord can rely, and who shall consult with
Landlord and Landlord’s contractors, employees and agents in connection with
the construction of the Tenant Improvements.

          7.3 Tenant shall indemnify, defend, protect and hold Landlord’s
Agents harmless
from all Claims which arise in any way, directly or indirectly from or in
connection with the design ®f the Tenant Improvements, including without
limitation arising from the work of Tenant’s architect, engineer, employees or
agents.

66

 

FIRST AMENDMENT TO LEASE

     THIS FIRST AMENDMENT TO LEASE (“Agreement”) is made this 15’ day of June,
2001 (the “Effective Date”) and entered into by and between RIGGS & CC) , a
division of ‘ s Bank NA, as Trustee of the Multi-Employer Property Trust, a
trust organized under 12 C.F.R. Section 9.18 (“Landlord”) and PAR 1R, INC., a
Delaware corporation (“Tenant”). Unless otherwise defined in this Agreement,
capitalized terms hereinafter used have the meanings given them in the Lease
Agreement dated September 5, 2000 (the “Lease”.

BACKGROUND

     A. Landlord and Tenant entered into the Lease as amended, for 24,851
rentable square feet of space (the “Premises”) located at 7807 East Peakview
Avenue, Denver, CO, as more fully described in the Lease.

     B. Landlord and Tenant agree to amortize a partial cost of the tenant
improvement overage in the amount of $34,785 over the last sixty (60) months of
the Lease, as provided for in the Lease.

AGREEMENT

NOW, THEREFORE, in consideration of the covenants and agreements
contained herein, the parties hereby mutually agree as follows:

1. BASE RATE: Pursuant to paragraph 1.39 of the Lease, `Tenant
Improvements”, Landlord agrees to amortize a portion of the Tenant
Improvement costs in the amount of $34,785 over the term of the Lease.
The monthly amount of $.756.31 shall be added to the Tenant’s Base Rent
commencing April 1, 2001, and shall continue through lease termination.
As such the Base Rent shall be increased as follows:

	 	 	 	 	 
	(a) Months 1-2:

	 	February 1, 2001 — March 31, 2001
	 	$0.00 NNN
	(b) Months 3-38:

	 	April 1, 2001 — March 31, 2004
	 	$37,370.12/month NNN
	(c) Months 39-62:

	 	April 1, 2004 — March 31, 2006
	 	$38,923.30/month NNN

2. AUTHORITY : Tenant warrants that all necessary corporate actions have
been duly taken to permit Tenant to enter into this Agreement and. that
each undersigned officer has been duly authorized and instructed to
execute this Agreement. .

3. FULL FORCE AND EFFECT: Except as expressly modified above, all terms
and
conditions of the Lease remain in full force and effect and are hereby
ratified and confirmed.

[SIGNATURE BLOCKS ON FOLLOWING PAGES]

67

 

LANDLORD:

RIGGS & COMPANY, a
division of Riggs Bank N.A., as Trustee of the Multi-Employer
Property Trust

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ Robert R. Villeneuve 	 
	 	 	Name:  	Robert R. Villeneuve 	 
	 	 	Its: Managing Director 	 
	 

	 	 	 	 	 
	DISTRICT OF COLUMBIA

	 	 )	 	 
	

	 	 ) ss.
	 	 
	

	 	 )	 	 

On this 22nd day of August 2001, before me personally appeared Robert
Villeneuve, to me known to be the Managing Director of RIGGS &
COMPANY, a
division of Riggs Bank N.A., the trustee of the Multi-Employer Property Trust,
the national berg association that executed the within and foregoing instrument
as trustee, and acknowledged said instrument to be the free and voluntary act
and deed of said national b ‘ g association as trustee, for the uses and
purposes therein mentioned, and on oath stated that he (he or she) was
authorized to execute said instrument.

IN WITNESS WHEREOF, I have hereunto set my hand and teed my official seal the
day and year first above written.

/s/ John M. Peter
                                      

Printed Name: John M. Peter

NOTARY PUBIC in and for the District of

Columbia

residing at                    

My commission expires:                    

(NOTARY SEAL).

68

 

TENANT:

PARTMINER, INC., a Delaware corporation

	 	 	 	 	 
	 	 	 
	 	By:  	                       /s/ Thomas Egan
 	 
	 	 	Name:  	Thomas Egan 	 
	 	 	Its: 	 
	 

	 	 	 	 	 
	STATE OF NEW YORK

	 	 )	 	 
	

	 	 ) ss.
	 	 
	COUNTY OF SUFFOLK

	 	 )	 	 

On this 27TH day of July 2001, before me personally appeared Thomas Egan, to me
known to be the VP of Planning of Partminer, Inc., that executed the within and
foregoing instrument as trustee, and acknowledged said instrument to be the
free and voluntary act and deed of said corporation for the uses and purposes
therein mentioned and on oath stated that he (he or she) was authorized to
execute said instrument and that the seal affixes thereto is the corporate seal
of said corporation.

IN WITNESS WHEREOF, I have hereunto set my hand and teed my official seal the
day and year first above written.

/s/ Stacey
Mgeieco
Printed Name: Stacey Mgeieco

NOTARY PUBIC in and for the State of New York

residing at 17 Saddle Lane, S. Huntington, NY

My commission expires: 7/27/2002

(NOTARY SEAL).

69

 

EXHIBIT C

INVENTORY

See attached.

70

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]