Document:

exhibit 10.2

Exhibit 10.2
DubLi, Inc.

Stock Option Agreement

This Stock Option Agreement certifies that, pursuant to the DubLi, Inc. (the “Company”) Omnibus Equity Compensation Plan (the “Plan”), the Compensation Committee has granted an option to purchase shares of common stock, par value $0.001 per share (the “Common Stock”), of the Company as stated below. Capitalized terms used herein and not defined shall have the meaning ascribed to such terms in the Plan.

	
		
	Optionee:
	Eric Nelson

	 
	 

	 
	 

	Address:
	2910 NW 28th Terrace

	 
	Boca Raton, FL 33434

	 
	 

	 
	 

	Number of Shares:
	7,500,000 shares of the Common Stock (the “Option Shares”)

	 
	 

	 
	 

	Option Exercise Price:
	US$0.12 per share of Common Stock (the “Per Share Exercise Price”)

	 
	 

	 
	 

	Grant Date:
	February 26, 2013 (the “Grant Date”)

	
				
	 
	 
	DUBLI, INC.

	 
	 
	 
	 

	 
	 
	 
	 

	Dated: As of February 26, 2013
	 
	By:
	 

	 
	 
	 
	Name: Michael Hansen

	 
	 
	 
	Title: Chief Executive Officer

The undersigned hereby accepts the foregoing option and agrees to the terms and conditions thereof as described in Exhibit A attached hereto and made a part hereof. The undersigned hereby acknowledges receipt of a copy of the Plan, a copy of which is attached hereto as Exhibit B, and agrees to be bound by the terms of such Plan.

	
			
	 
	 
	OPTIONEE

	 
	 
	 

	 
	 
	 

	Dated: As of February 26, 2013
	 
	 

	 
	 
	Name: Eric Nelson

EXHIBIT A

Terms and conditions of the Non-Qualified Stock Option Agreement for Employees

Grant of Option. DubLi, Inc., a Nevada corporation (the “Company”), hereby grants to the Optionee, as of the Grant Date an option (the “Option”), pursuant to the Plan, to purchase the Option Shares at the Per Share Exercise Price, purchasable as set forth in and subject to the terms and conditions of this Option and the Plan. Except where the context otherwise requires, the term “Company” shall include all future subsidiaries of the Company as defined in Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended or replaced from time to time (the “Code”).

Non-Qualified Stock Option. The Option shall constitute and be treated at all times by the Optionee and the Company as a "non-qualified stock option" for U.S. Federal income tax purposes and shall not constitute and shall not be treated as an "incentive stock option" as defined under Section 422(b) of the Code.

Exercise of Option and Provisions for Termination; Vesting Schedule. Subject to the terms set forth herein and provided the Optionee remains employed by the Company, the Option shall vest as follows: 1,500,000 of the Option Shares will vest and become exercisable on the date hereof; 750,000 of the Option Shares will vest and become exercisable on March 31 and September 30 of each year, beginning on September 30, 2013, until all Option Shares have vested. Except as otherwise provided in this Agreement, this Option may be exercised at any time during the period (the “Exercise Period”) commencing on the date hereof and terminating on February 26, 2023 (the “Expiration Date”). This Option may not be exercised at any time on or after the Expiration Date. Optionee irrevocably advises the Company that 10% of the Option Shares of each vesting tranche shall be vested in the name of SCA Group, LLC, 301 Yamato Road, Suite 1240, Boca Raton, FL, 33431, as long as Optionee remains a partner of SCA Group.

Exercise Procedure. Subject to the conditions set forth in this Agreement and the Plan, this Option shall be exercised by the Optionee’s delivery of written notice of exercise to the General Counsel of the Company, specifying the number of Option Shares to be purchased and the purchase price to be paid therefor (the “Purchase Price”). Such notice must be signed and dated and be accompanied by payment in full of the Purchase Price in accordance with Section 4 of this Agreement. Such exercise shall be effective upon receipt by the General Counsel of the Company of such written notice together with the Purchase Price. The Optionee may purchase less than the number of Shares covered hereby, provided that no partial exercise of this Option may be for any fractional Share.

Payment of Purchase Price. Payment of the Purchase Price for the Shares purchased upon the exercise of this Option shall be made by delivery to the Company of one or some combination of the following items of consideration with a value on the date of exercise equal to the Purchase Price of the subject Shares:

cash;

a certified check or bank check;

a cash equivalent instrument that is reasonably acceptable to the Company; or

shares of Common Stock (provided that the such shares of Common Stock have been held by the Optionee (or any other person or persons exercising the Option) for at least six months).

Delivery of Option Shares: Compliance with Securities Law, Etc.

a.    General. The Company shall, upon payment of the option price for the number of Option Shares purchased and paid for, make prompt delivery of such Option Shares to the Optionee, provided that if any law or regulation require the Company to take any action with respect to such Option Shares before the issuance thereof, then the date of delivery of such Option Shares shall be extended for the period necessary to complete such action.

b.    Listing Qualifications, Securities Law Compliance, Etc. Notwithstanding anything to the contrary in this Agreement, no shares of Common Stock purchased upon exercise of the Option, and no certificate representing such shares, shall be issued or delivered if (a) such shares have not been admitted to listing upon official notice of issuance on each stock exchange, if any, upon which shares of that class are then listed, or (b) in the opinion of counsel to the Company, such issuance or delivery would (i) cause the Company to be in violation of or to incur liability under any federal, state or other securities law, or any other requirement of law or any requirement of any stock exchange regulations or listing agreement to which the Company is a party, or of any administrative or regulatory body having jurisdiction over the Company or (ii) require registration (apart from any registrations as have been theretofore completed by the Company covering such shares) under any federal, state, or other securities or similar law.

No Special Employment or Similar Rights. Nothing contained in the Plan or this Option shall be construed or deemed by a person under any circumstances to bind the Company to continue the employment or other relationship of the Optionee with the Company for the period within which this Option may be exercised or otherwise.

Rights as a Shareholder. The Optionee shall have no rights as a shareholder with respect to any Option Shares which may be purchased by exercise of this Option (including, without limitation, any rights to receive dividends or non-cash distributions with respect to such Option Shares) unless and until a certificate representing such Option Shares is duly issued and delivered 

to the Optionee. No adjustment shall be made for dividends or other rights for which the record date is prior to the date such certificate is issued.

Adjustment Provisions.

a.    General. If, through or as a result of any consolidation of shares of Common Stock, merger or consolidation of the Company or its Subsidiaries or sale or other disposition by the Company or its Subsidiaries of all or a portion of its assets, any other change in the Company's or its Subsidiaries' corporate structure, or any distribution to shareholders other than a cash dividend results in the outstanding shares of Common Stock, or any securities exchanged therefor or received in their place, being exchanged for a different number or class of shares of Common Stock or other securities of the Company, or for shares of Common Stock or other securities of any other Company; or new, different or additional shares or other securities of the Company or of any other Company being received by the holders of outstanding shares of Common Stock, the Optionee shall, with respect to this Option or any unexercised portion hereof, be entitled to the rights and benefits, and be subject to the limitations, set forth in the Plan.

b.    Board Authority to Make Adjustments. Any adjustments under this Section 9 will be made by the Board of Directors and/or the Compensation Committee, whose determination as to what adjustments, if any, will be made and the extent thereof will be final, binding and conclusive. No fractional Shares will be issued pursuant to this Option on account of any such adjustments.

Change of Control.

a.    Acceleration Upon Change in Control.  This Option shall become immediately fully exercisable in the event that, prior to the expiration or termination of the Option, and during the Optionee's Continuous Service, there is a “Change in Control”, as defined in Article XIII of the Plan.

b.    Exception to Acceleration Upon Change in Control.  Notwithstanding the foregoing, if in the event of a Change in Control the successor company assumes or substitutes for the Option, the vesting of the Option shall not be accelerated as described in Section 10(a).  For the purposes of this paragraph, the Option shall be considered assumed or substituted for if following the Change in Control the Option or substituted option confers the right to purchase, for each Share subject to the Option immediately prior to the Change in Control, on substantially the same vesting and other terms and conditions as were applicable to the Option immediately prior to the Change in Control, the consideration (whether stock, cash or other securities or property) received in the transaction constituting a Change in Control by holders of Shares for each Share held on the effective date of such transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); provided, however, that if such consideration received in the transaction constituting a Change in Control is not solely common stock of the successor company or its parent or subsidiary, the Compensation Committee may, with the consent of the successor company, or its parent or subsidiary, provide that the consideration to be received upon the exercise or vesting of the Option will be solely common stock of the successor company or its parent or subsidiary substantially equal in Fair Market Value to the per share consideration received by holders of Shares in the transaction constituting a Change in Control.  The determination of such substantial equality of value of consideration shall be made by the Compensation Committee in its sole discretion and its determination shall be conclusive and binding.  Notwithstanding the foregoing, in the event of a termination of the Optionee’s employment with the Company (if it is the surviving entity in the Change in Control) or the successor company (other than by the surviving company for Cause or by the Optionee without Good Reason) within 24 months following such Change in Control, the Option shall be accelerated as described in paragraph (a) of this Section 10.

Withholding Taxes. The Company’s obligation to deliver Option Shares upon the exercise of this Option shall be subject to the Optionee’s satisfaction of all applicable, federal, state and local income and employment tax withholding requirements.

Financial Restatements Due to Intentional Misconduct or Gross Negligence.

a.    In the event that the disinterested and independent (as determined in accordance with the NYSE AMEX listing standards) members of the Board of Directors determine (the “Board Determination”) that the Optionee’s intentional misconduct or gross negligence directly or indirectly caused or contributed to a restatement of the Company’s consolidated financial statements due to the material non-compliance of the Company with any financial reporting requirement under the U.S. federal securities laws, whether such restatement is required by law or the Board of Directors determines, in its discretion, such restatement is necessary or desirable to serve the best interests of the Company, then any vested and unvested Options then held by the Optionee that were granted during the three month period prior to or the nine month period following the first public issuance or filing with the Securities Exchange Commission (whichever occurs first) of the incorrect financial 

statements shall be immediately cancelled and rendered null and void without any payment therefor. In addition, for any Options that were exercised during the nine month period following the first public issuance or filing with the Securities Exchange Commission (whichever occurs first) of the incorrect financial statements (the “Covered Options”), the Optionee shall be required to repay or otherwise reimburse the Company, upon demand, an amount in cash or shares of Common Stock having a value equal to the amount described in clause (i), (ii) or (iii) below, depending on whether the Optionee still holds the Option Shares acquired upon exercise of the Covered Options:

to the extent that such Option Shares have been sold, the difference between the aggregate proceeds received from such sale of such Option Shares over the aggregate Option Exercise Price for such Option Shares,

to the extent that such Option Shares have been transferred otherwise than for value (ex. a transfer by gift, a transfer upon death), the difference between: (x) the greatest of (a) the Fair Market Value (as defined in the Plan) of such Option Shares on the date the Covered Options were exercised, (b) the Fair Market Value of such Option Shares on the date the Option Shares underlying the Covered Options were transferred and (c) the Fair Market Value of such Option Shares on the date of the Board Determination and (y) the aggregate Option Exercise Price with respect to such Option Shares; and/or

to the extent that such Option Shares have not been sold or otherwise transferred at the time the Company demand is made, the difference between: (x) the greater of (a) the Fair Market Value of such Option Shares on the date the Covered Options were exercised and (b) the Fair Market Value of such Option Shares on the date of the Board Determination and (y) the aggregate Option Exercise Price with respect to such Option Shares.

b.    This section does not constitute the Company’s exclusive remedy for the Optionee’s commission of intentional misconduct or gross negligence. The Company may seek any additional legal or equitable remedy, including injunctive relief, for any such violations. The provisions in this section are essential economic conditions to the Company’s grant of Options to the Optionee. By receiving the grant of Options hereunder, the Optionee agrees that the Company may deduct from any amounts it owes the Optionee from time to time (such as wages or other compensation, deferred compensation credits, vacation pay, any severance or other payments owed following a termination of employment, as well as any other amounts owed to the Optionee by the Company) to the extent of any amounts the Optionee owes the Company under this section. The provisions of this section and any amounts repayable by the Optionee hereunder are intended to be in addition to any rights to repayment the Company may have under Section 304 of the Sarbanes-Oxley Act of 2002 and other applicable law.

Representations. The Optionee represents, warrants and covenants that:

a.    Any Option Shares purchased upon the exercise of this Option shall be acquired for the Optionee’s account for investment only, and not with a view to, or for sale in connection with, any distribution of the Option Shares in violation of the Securities Act, or any rule or regulation under the Securities Act.

b.    The Optionee has had such opportunity as he or she has deemed adequate to obtain from representatives of the Company such information as is necessary to permit the Optionee to evaluate the merits and risks of his or her investment in the Company.

c.    The Optionee is able to bear the economic risk of holding such Option Shares acquired pursuant to the exercise of this Option for an indefinite period.

d.    The Optionee understands the tax consequences of the granting of the Option, the acquisition of rights to exercise the Option with respect to any Option Shares, the exercise, release or other disposal of the Option and purchase of Option Shares hereunder, and the subsequent sale or other disposition of any Option Shares acquired hereunder. In addition, the Optionee understands that the Company may be required to pay, or account for taxes in respect of any compensation income, or other income or gain realized by the Optionee upon exercise of the Option granted hereunder. To the extent that the Company is required to pay, account for or withhold any such taxes, then, unless both the Optionee and the Compensation Committee have otherwise agreed upon alternate arrangements, the Optionee hereby agrees that the Company may deduct from any payments of any kind otherwise due to the Optionee an amount equal to the total taxes required to be so paid, accounted for or withheld (as permitted by law), or if such payments are inadequate to satisfy such taxes, or if no such payments are due or to become due to the Optionee, then the Optionee agrees to provide the Company with cash funds or make other arrangements satisfactory to the Company regarding such payment. It is understood that all matters with respect to the total amount of taxes to be withheld in respect of any such compensation income shall be determined by the Company in its sole discretion.

By making payment upon exercise of this option, the Optionee shall be deemed to have reaffirmed, as of the date of such payment, the representations made in this Section 12.

Restrictions on Transfer of Option Shares.

a.    The Optionee hereby acknowledges and agrees that the Option shall not be transferable by the Optionee other than by will or by the laws of descent and distribution, and shall be exercisable during the lifetime of the Optionee only by him or by his guardian or legal representative.

b.    The Optionee hereby acknowledges that in connection with any public offering of the Company’s Common Stock, the underwriters for the Company may require that the Company's officers, directors, and/or certain other shareholders not sell their Shares for a certain period of time before or after the effectiveness of any registration statement of the Company filed in connection with such offering. The Optionee hereby agrees that upon the Company's request in connection with any such public offering, that the Optionee will not, directly or indirectly, offer, sell, contract to sell, make subject to any purchase option, or otherwise dispose of any Option Shares for a period requested by the underwriter or its representative, not to exceed ten (10) days before and 90 days after the date of the effectiveness of any such registration statement, without the prior written consent of the underwriter or its representative.

Legends. All stock certificates representing Option Shares issued to the Optionee upon exercise of this Option shall have affixed thereto legends substantially in the following form, in addition to any other legends required by applicable state law:

“The shares of stock represented by this certificate are subject to certain restrictions on transfer contained in an Option Agreement, a copy of which will be furnished upon request by the issuer.” 

Termination of Employment. The Option shall cease vesting upon a termination of employment for any reason and shall lapse and cease to be exercisable on the ninetieth day following any such termination.  

Effectiveness of the Grant of the Option. The grant of the Option by the Company to the Optionee shall not become effective until the Optionee executes the cover page of this Agreement and returns this Agreement with the executed cover page to the Company. In the event the Optionee fails to execute and return this Agreement to the Company within one month after the Grant Date, this Agreement shall immediately terminate in all respects and this Agreement shall immediately cease to be an operative contract.

Plan Documents. This Agreement is qualified in its entirety by reference to the provisions of the Plan, as amended from time to time, which are hereby incorporated herein by reference. The interpretation and construction by the Compensation Committee of the Plan, this Agreement, the Option granted hereunder, and such rules and regulations as may be adopted by the Compensation Committee for the purpose of administering the Plan, shall be final, binding and conclusive. Until the Option shall expire, terminate, or be exercised in full, the Company shall, upon written request therefor, send a copy of the Plan, in its then-current form, to the Optionee or any other person or entity then entitled to exercise the Options.

Miscellaneous.

a.    This Agreement may (except as provided in the Plan) only be amended, altered or modified by a written instrument signed by the parties hereto, or their respective successors, and it may not be terminated (except as provided herein or in the Plan).

b.    This Agreement is subject to the authorization of the necessary amount of shares by the appropriate bodies and an amendment of the Plan covering the required amount of shares to fulfill this Agreement.

c.    All notices under this Option shall be mailed or delivered by hand to (i) the Company at the address set forth below, (ii) the Optionee at the address set forth on the first page of this option, or (iii) at such other address as may be designated in writing by either of the parties to one another.

	
		
	If to the Company:
	DubLi, Inc.

	 
	5200 Town Center Circle, Suite 601

	 
	Boca Raton, FL 33486

	 
	 

	 
	 

	If to the Optionee:
	See address of Optionee on the cover page of this Agreement.

Applicable Law. This Option shall be governed by and construed in accordance with the laws of the State of Florida, but without regard to the principle of conflict of laws thereof. If any one or more provisions of this Agreement shall be found to be illegal or unenforceable in any respect, the validity and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby. The parties hereto hereby submit themselves to the exclusive jurisdiction of the state or Federal courts located in Palm Beach County, Florida and (a) agree and acknowledge that any claim, action or proceeding regarding the Company or this Agreement shall be brought in such courts, and (b) hereby waive any objections to such venue, including, without limitation, any objections based on such venue being an inconvenient forum.

Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Optionee and supersedes any prior agreements and understandings, oral or written, between the Company and the Optionee concerning the subject matter of this Agreement.

Construction. The section headings contained in this Agreement are for reference only and shall have no effect on the interpretation of any of the provisions of this Agreement.

Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company and upon the legal representatives, executors, administrators, heirs, legatees and any permitted assignee of the Optionee.

EXHIBIT B

COMPANY’S OMNIBUS EQUITY COMPENSATION PLAN

[See Attached]exhibit_10-26.htm

 

 

 

Exhibit 10.26

 

FOURTH AMENDMENT TO INDUSTRIAL BUILDING LEASE

 

 

THIS FOURTH AMENDMENT TO INDUSTRIAL BUILDING LEASE (this "Amendment") is made and entered into as of this 26th day of March, 2012, by and between Aspen Marketing Services, LLC, a Delaware limited liability company, as successor to Aspen Marketing Services, Inc., a Delaware corporation ("Tenant"), and A. & A. Conte Joint Venture Limited Partnership, an Illinois limited partnership, its successors and assigns ("Landlord").

 

R E C I T A L S:

 

A.         Landlord and Tenant are parties to that certain Industrial Building Lease dated June 3, 2003 (the "Initial Lease"), as amended by: (i) that certain First Amendment to Industrial Building Lease dated as of August 1, 2003 ("First Amendment"); (ii) that certain Second Amendment to Industrial Building Lease dated January 1, 2009 ("Second Amendment"), and (iii) that certain Third Amendment to Industrial Building Lease dated as of October 12, 2010 ("Third Amendment") (hereinafter, the Initial Lease, First Amendment, Second Amendment and Third Amendment are referred to collectively as the "Lease").

B.          Pursuant to the Lease, (i) Landlord has agreed to lease to Tenant, and Tenant has agreed to lease from Landlord, approximately 108,438 square feet of warehouse and office space (the "Existing Premises") in the building located at 1240 North Avenue, West Chicago, Illinois (the "Building"), and (ii) Landlord has agreed to construct and lease to Tenant and Tenant has agreed to lease from Landlord, approximately 46,974 square feet of additional space in the Building (as more particularly defined below, the "New Premises"), in each case, subject to the terms and conditions set forth in the Lease.  Hereinafter, the Existing Premises and the New Premises are referred to collectively as the "Premises".

C.          Landlord and Tenant desire to further amend the Lease in order to, among other things, (i) amend the date for delivery of the New Premises, and (ii) amend certain provisions pertaining to the purchase and sale of furniture for the New Premises.

 

AGREEMENTS:

NOW, THEREFORE, in consideration of the foregoing Recitals, and for other good and valuable considerations, the receipt, adequacy and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

1.          Recitals; Definitions; Conflict.  The foregoing Recitals are true and accurate and by this reference are incorporated into this Amendment as if set forth at length herein.  Capitalized terms used but not specifically defined herein shall have the respective meanings ascribed to them in the Lease.  In the event of any inconsistency between the provisions of this Amendment and the provisions of the Lease, the terms and conditions set forth in this Amendment shall be controlling and binding upon the parties hereto.

2.          Lease Term.  Section 3 of the Third Amendment is hereby deleted.  The Lease Term is hereby adjusted and extended such that the Lease will expire on the last day of the calendar month that is the earlier of twelve (12) years after (i) the Outside Substantial

  

  

  

 

Completion Date (hereinafter defined) and (ii) the Substantial Completion Date (hereinafter defined).  The day on which the Lease will expire based on this Section 2 is referred to herein as the "Lease Expiration Date".

3.           Provisions With Respect to the New Premises.

a.          Delivery of the New Premises.  Landlord shall construct the New Premises in compliance with all laws, using new materials of good quality, such materials being substantially similar to the materials used in the Existing Premises in accordance with the plans and specifications set forth in Exhibit A attached hereto ("Plans and Specifications"), which Plans and Specifications supersede any and all prior drawing, plans or other specifications with respect to the New Premises regardless of whether or not any such drawings were heretofore incorporated into the Lease.  Landlord and Tenant acknowledge and agree that the New Premises are to be constructed in good and workmanlike manner, and in a fashion similar to the Existing Premises.  Subject to Tenant's compliance with the terms of this Section 3 and Tenant's timely cooperation during the construction process, Landlord shall deliver possession of the New Premises to Tenant on or before December 31, 2012 (such date, as it may be extended due to Tenant Delays or Force Majeure Events is referred to herein as the "Outside Substantial Completion Date").  The date on which Landlord actually delivers possession of the New Premises to Tenant is referred to herein as the "Substantial Completion Date".

b.          Condition of New Premises.  The New Premises shall be constructed in accordance with the Plans and Specifications (hereinafter defined) and the terms and conditions of the Lease (as amended hereby).  On the Substantial Completion Date, Landlord shall deliver possession of the New Premises to Tenant in good, vacant, broom clean condition, with all building systems in good working order and the roof water-tight, and in compliance with all laws.  The reference in the immediately preceding sentence to the New Premises being in compliance with all laws shall not apply to the use to which Tenant will put the New Premises to the extent such use alters or imposes additional requirements on the New Premises under said laws, modifications which may be required by the Americans with Disabilities Act or any similar laws as a result of Tenant's use, or to any alterations to the New Premises made by or at the request of Tenant.

c.           Changes.

i.          Tenant Changes.  If Tenant desires changes in the work, upon submission by Tenant of the necessary information and/or plans and specifications for such changes that impact the design of the New Premises (referred to herein as "Changes"), Landlord may incorporate such changes into the work.  Prior to commencing any changes which would exceed $2,500 in additional Tenant cost, Landlord will submit a proposal (the "Proposal") to Tenant showing the cost of such Changes.  The Proposal shall include a form of Change Order ("Change Order").  Tenant may approve the Proposal by executing and delivering the Change Order to Landlord within the time period specified in the Proposal (or within five (5) business days, if no period is specified).  If Tenant fails to approve the Proposal within the applicable time period, Landlord may

 

  

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proceed to do only the work in the Plans.  Tenant agrees to pay the cost of Changes within thirty (30) days after substantial completion of the work.

ii.             Landlord Changes.  Landlord may make changes in the Plans and Specifications which solely affect the structure of the New Premises without permission of the Tenant if such changes are in accordance with paragraph "a" above.  Such change shall not affect the intended design of the Premises or reduce the quality of any construction materials (including finishes) used to construct the New Premises.

iii.              Notices.  If and when required hereunder, Landlord shall give written notice of any Changes to Janet Greenough, c/o Epsilon Data Management, LLC at 601 Edgewater Drive, Wakefield, MA 01880; 781-685-6719; jgreenough@epsilon.com  or to such other responsible officer and/or address of Tenant as Tenant may nominate by written notice to Landlord from time to time. If and when required hereunder Tenant shall give written notice to Arturo J. Conte, c/o A. & A. Conte Joint Venture Limited Partnership, 31W007 North Avenue, West Chicago, Illinois 60185.

d.          Change Orders; Extension of Outside Substantial Completion Date.  After receiving a Change Order, Tenant shall, by written notice given to Landlord, approve or disapprove all changes therein requested.  The period of time commencing upon the receipt by Tenant of a Change Order and ending upon receipt by Landlord of Tenant's written response thereto shall be construed as a Tenant Delay.

e.          Construction Provisions.  For the purposes of Section 3.a. hereof, the New Premises shall be deemed available for occupancy when Landlord notifies Tenant in writing that the New Premises have been substantially completed, Landlord has received all approvals and permits from the applicable governmental authorities required for legal occupancy of the New Premises and Landlord delivers possession of the New Premises to Tenant in accordance with the Lease.  During the construction process, Landlord will permit Tenant access to the New Premises for purposes of Tenant installing certain cabling and fixtures therein.  Landlord will give Tenant two (2) weeks notice prior to the time at which Landlord expects to permit Tenant such access.  If and to the extent Tenants temporary use of the New Premises as aforesaid results in a delay in Landlord's construction of the New Premises, then the same shall constitute a Tenant Delay.  Landlord's Work shall be deemed substantially completed notwithstanding (a) that certain minor or non-material details of construction, mechanical adjustment or decoration ("punchlist items") are incomplete, or (b) portions of the New Premises are incomplete because such work cannot be performed until work to be performed by or on behalf of Tenant is completed and about which Landlord previously notified Tenant.  Upon the delivery of the New Premises to Tenant, Landlord shall assign to Tenant all warranties received from contractors or subcontractors for the work performed on the New Premises (such assignment, however, shall be limited (1) to the extent that any such warranties are assignable and (2) in duration to the shorter of (i) the life of said warranty, or (ii) the Term of the Lease).  In the event Landlord is delayed in substantially completing the New Premises by any delay, interference or hindrance (which shall include, without being

  

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limited to, any delays in connection with Change Orders), directly or indirectly, of such work (1) by Tenant, Tenant's contractors or any of their employees or agents, (2) by Tenant's request for unusual or unique materials which cannot be timely delivered, (3) by any changes in such work or materials requested by Tenant and agreed to by Landlord after the execution of this Amendment, (4) by Tenant's failure to timely and properly perform any of its obligations under the Lease (as amended hereby) (any of the foregoing items (1) through (4) hereinafter being referred to as a "Tenant Delay"), or (5) any force majeure events or other events beyond the control of Landlord (collectively, "Force Majeure Events"), then in each such case, the Outside Substantial Completion Date shall be extended on a pari passu basis.

f.          Tenant Delays.  Tenant shall indemnify and defend Landlord from and against all increased costs or damages incurred by Landlord and attributable to any Tenant Delays.  Without limiting the generality of the foregoing, but also without duplication, if any Tenant Delay results in the extension of the Substantial Completion Date, then Tenant's obligation to pay the Base Rent set forth in Section 6 below shall commence as of the date that the Substantial Completion Date would have occurred but for the Tenant Delay(s).

g.          Utilities.  From and after the Substantial Completion Date, Landlord shall furnish utilities to the New Premises to the same extent that Landlord currently supplies utilities to the Existing Premises.  Any and all utilities which are currently paid for by Tenant, or are otherwise Tenant's obligation pursuant to the Lease, shall continue to be Tenant's obligation with respect to the New Premises.

h.          Replacement of HVAC Units.  Within six calendar months of the Substantial Completion Date, Landlord will (on a one-time basis) replace all existing HVAC units for the Existing Premises that have not previously been replaced.  Until such time, Landlord shall pay for the costs to repair any such HVAC units that breakdown prior to the replacement thereof.  The foregoing notwithstanding, the obligation to maintain the HVAC units (both before and after the replacement thereof as provided in this paragraph) in connection with usual wear and tear shall be Tenant's responsibility as provided under the Lease.  This Section 3(g) replaces the second, third and fourth sentences of Section 6 of the Third Amendment to Lease.

i.           Failure to Deliver New Premises.  If the Landlord has not delivered possession of the New Premises to Tenant on or before the Outside Substantial Completion Date, as Tenant's sole and exclusive remedy, Landlord shall pay Tenant $500 (which payment may be made by offsetting amounts owed Landlord under the Lease) per day until the Substantial Completion Date occurs (or would have occurred absent Tenant Delay).

j.          References to New Premises Commencement Date.  Any references in the Third Amendment to the "New Premises Commencement Date", "Lease Premises Commencement Date" or "Substantial Completion Date" shall mean and refer to the Substantial Completion Date as herein defined.

  

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4.           Office Furniture.  After the Substantial Completion Date, Landlord shall purchase $   worth of furniture selected by Tenant for Tenant's use in the New Premises (such furniture being referred to herein as the "Landlord's Furniture").  Tenant shall be responsible for purchasing the balance of the furniture for the New Premises, and Tenant hereby releases and discharges any obligation of Landlord to purchase furniture as set forth in the last paragraph of Section 5 of the Third Amendment, which is hereby deleted except as set out herein.  Upon the expiration of the Lease Term, Tenant shall either (i) purchase Landlord's Furniture from Landlord at the fair market value thereof (as determined by an independent third-party appraiser acceptable to Landlord and Tenant), and in such case, remove all furniture and other personal property of Tenant from the Premises on or before the Lease Expiration Date, or (ii) by execution of a bill of sale, convey to Landlord, free and clear of any liens or encumbrances, all of the furniture in the Premises that is then-owned by Tenant.  If Tenant desires to proceed as set forth in proviso 4.(i) above, then Tenant shall give written notice thereof to Landlord not less than sixty (60) days prior to the Lease Expiration Date.  Failure to provide written notice at least sixty (60) days prior to the Lease Expiration Date as aforesaid shall be deemed Landlord's waiver of the right to purchase Landlord's Furniture, and in such case, the parties shall proceed as set forth in proviso 4.(ii) above.

5.         Return of Security Deposit.  In derogation of Landlord's obligation to return a portion of the Security Deposit as provided in the last paragraph of Section 18 of the Third Amendment, which is hereby deleted, Landlord shall return to Tenant     Dollars ($  ) of the security deposit currently being held by Landlord, such payment to take place within thirty (30) days of the execution of this Fourth Amendment. Landlord and Tenant acknowledge and agree that, after the return of the $    to Tenant as aforesaid, the amount of the security deposit held by Landlord pursuant to the Lease will be     Dollars ($    ), such amount including the last month's rent for both the Existing Premises and the New Premises.  If Landlord fails to promptly refund such amount, Tenant shall have the right to offset such amount against rent coming due under the Lease.

6.         Base Rent.  Prior to the Substantial Completion Date, Tenant shall continue to pay all amounts due under the Lease with respect to the Existing Premises.  Commencing on the first day of the calendar month immediately following the Substantial Completion Date (unless the Substantial Completion Date falls on the first of the month, in which case, commencing on the Substantial Completion Date), Tenant shall pay Base Rent for the Premises in equal monthly installments as set forth in the Third Amendment.  In addition to said Base Rent, Tenant shall continue to pay to Landlord, directly or indirectly, all other amounts owed under the Lease, including, without limitation, and to the extent applicable, all additional rent, taxes, insurance premiums and maintenance expenses.

7.         Related Office Leases.  The Termination Agreement referred to in Section 8 of the Third Amendment shall be executed effective as of the Substantial Completion Date.  Tenant shall have thirty (30) days from the Substantial Completion Date to vacate Building 31W001 (the "Temporary Facility") and move into the New Premises, provided, however, that Tenant may continue to occupy the Temporary Facility for more than (30) days if Tenant pays Landlord rent for said facility in the same amount heretofore paid to Landlord for the use and occupancy of such space.  If Tenant does not return the Temporary Facility (hereinafter defined) to Landlord

  

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in substantially the same condition in which it was delivered to Tenant (usual wear and tear excepted), then in such case, Landlord shall, by written notice given to Tenant not more than thirty (30) days after Tenant vacates the Temporary Facility, invoice Tenant for the costs of any repairs required for the Temporary Facility.  Tenant shall, within thirty (30) days of receiving said invoice, pay to Landlord the amount set forth therein, subject to Tenant's right to contest the same.  Landlord may, if not paid within thirty (30) days as aforesaid, offset any amounts owed by Tenant against the Security Deposit (in which case Tenant shall replenish the Security Deposit at Landlord's request).  The last two sentences in Section 8 of the Third Amendment shall be deleted in their entirety.  The amount of Security Deposit held by the Landlord shall be as set out in Section 5 above.  Landlord shall be permitted to, and Tenant shall, without undue interruption to Tenant's business operations at the Temporary Facility, cooperate with Landlord's efforts to show the Temporary Facility to prospective tenants that may which to let the New Facility after Tenant vacates the same.

8.         Lease Guaranty.  In connection with and as a condition precedent to Landlord's agreement to enter into this Amendment, construct the New Premises, and return the portion of the Security Deposit as described in Section 5 hereof, Alliance Data Systems Corporation, a Delaware corporation and affiliate of Tenant ("Alliance"), shall execute and deliver to Landlord a Lease Guaranty in form and substance substantially similar to that set forth in Exhibit B hereto (the "Lease  Guaranty").  Any default by Alliance under the Lease Guaranty shall constitute a default by Tenant hereunder, and in such case, Landlord shall have the right to exercise any and all remedies available to Landlord under this Lease, at law or in equity, in each case to the same extent as if Tenant had committed a material breach hereunder.

9.         Estoppel Certificates.  Landlord or Tenant shall from time to time, without charge, upon not less than ten (10) days' prior written notice from the requesting party, execute acknowledge and deliver to the requesting party a statement in writing in form and substance reasonably acceptable to the requesting party.  Landlord and Tenant shall have the right to modify any estoppel certificate being executed by such party to reflect any applicable facts or circumstances that are not expressly set forth in such certificate.

10.       Subordination.

a.          Subordination and Non-Disturbance.  Tenant agrees that the Lease shall at all times be subject and subordinate to the lien of any mortgage granted by Landlord against the Premises (a "Mortgage") and to any and all advances to be made thereunder, and to the interest thereon, and all renewals, replacements and extensions thereof; provided, however, that the holder of such Mortgage (a "Mortgagee") shall not disturb Tenant's use and occupancy of the Premises if and so long as Tenant is not in default under the Lease (after all applicable grace or cure periods therein provided).  Notwithstanding the foregoing, a Mortgagee shall have the right, at its sole option, at any time, to subordinate and subject the Mortgage, in whole or in part, to this Lease by recording a unilateral declaration to such effect.

b.          Attornment.  Tenant agrees to attorn, from time to time, to each Mortgagee, or any purchaser of the Premises, for the remainder of the Lease term, provided that such Mortgagee or such purchaser shall then be entitled to possession of the

  

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Premises subject to the provisions of the Lease.  The provisions of this Section shall inure to the benefit of such Mortgagee or such purchaser, shall apply notwithstanding that, as a matter of law, this Lease may terminate upon foreclosure of the Mortgage (in which event the parties shall execute a new lease for the remainder of the Lease term, such new lease to be in the same form and substance as the Lease), shall be self-operative upon any such demand, and no further instrument shall be required to give effect to said provisions.  If any Mortgage is foreclosed or Landlord's interest in the Lease is conveyed or transferred in lieu of foreclosure: (a) no person or entity which as a result of foreclosure of a Mortgage or deed in lieu thereof has succeeded to the interests of Landlord in the Lease (a "Successor") shall be liable for any default by Landlord or any other matter which occurred prior to the date such Successor succeeded to Landlord's interests in the Lease, nor shall such Successor be bound by or subject to any offsets or defenses which Tenant may have against Landlord or any other predecessor in interest to such Successor; (b) no Successor shall be bound to recognize any prepayment of rent made by Tenant more than one (1) month in advance of the date due under the Lease; and (c) no Successor shall be bound to recognize any amendment or modification of the Lease made without the written consent of the Mortgagee.

11.         Mortgage Documents.  In connection with and as a condition precedent to the effectiveness of this Fourth Amendment, Tenant shall execute and deliver to Landlord and Landlord's mortgagee, a Tenant Estoppel Certificate and a Subordination, Non-Disturbance and Attornment Agreement in the form set forth in Exhibit C hereto.

12.         Counterparts.  This Amendment may be executed in counterparts, each of which shall constitute an original, and all of which, when taken together, shall one fully executed agreement.

13.         Submission of Amendment.  Submission of this Amendment to Tenant shall not bind Landlord to the terms hereof, and no duty or obligation on Landlord shall arise hereunder until (i) this Amendment is signed and delivered by all of the parties hereto, Tenant executes and delivers the Tenant Estoppel Certificate and Subordination, Non-Disturbance and Attornment Agreement as required under Section 11 above, and (iii) Alliance executes and delivers the Lease Guaranty as required under Section 8 above.

14.           Restoration.  Tenant shall, upon the expiration of the Lease Term, restore the Premises to the condition it was in when delivered to Tenant (which, for the New Premises, shall mean the condition of the New Premises on the Substantial Completion Date, but for the removal of furniture which shall be governed by Section 14 of this Amendment).  Tenant may, in connection with any improvement hereafter made to the Premises by or on behalf of Tenant (but excluding the construction of the New Premises), request that Landlord waive Tenant's obligation to restore said improvement upon the conclusion of the Lease.  Any such request shall be made in writing to Landlord and shall detail the improvement(s) for which said waiver is sought.  Without limiting the generality of the foregoing, and as an accommodation to Tenant, and not in derogation of Tenant's obligations under the Lease, Landlord agrees to walk through the Existing Premises with a representative of Tenant, upon reasonable advance notice from Tenant to identify certain improvements which have been made to the Existing Premises which must be restored to their original condition pursuant to the Lease.

 

  

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15.        Entire Agreement.  This Amendment and the Lease contain the entire agreement between Landlord and Tenant with respect to the Premises.  Except for the Lease and this Amendment, no prior agreements or understandings between Landlord and Tenant with respect to the Premises shall be valid or of any force or affect.

16.        Severability.  If any provision of this Amendment or the application thereof to any person or circumstance is or shall be deemed illegal, invalid or unenforceable, then in such case, the remaining provisions hereof shall remain in full force and effect.

17.        Survival of Lease.  Except as modified hereby, all of the terms, conditions, agreements, covenants, representations, warranties and indemnities contained in the Lease remain in full force and effect.

18.        Successors and Assigns.  This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.  Tenant shall not assign its rights or obligations under the Lease or this Amendment without the prior written consent of Landlord.  Notwithstanding the foregoing, Tenant may, without Landlord's prior consent and without constituting an assignment or sublease, sublet the Premises or assign the Lease and this Amendment to (a) an entity controlling, controlled by or under common control with Tenant, (b) an entity related to Tenant by merger, consolidation or reorganization, or (c) a purchaser of a substantial portion of Tenant's assets.  A transfer of Tenant's capital stock shall not be deemed an assignment, subletting or any other transfer of the Lease or the Premises.  The foregoing notwithstanding, no assignment, subletting, transfer of capital stock or other purported assignment of this Lease or Tenant's obligations hereunder shall relieve Tenant or Alliance from their respective obligations under this Lease and the Lease Guaranty.

 

[Signature Page Follows]

  

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IN WITNESS WHEREOF, the parties have duly executed this Amendment as of the day and year first above written.

 

	
LANDLORD:

	
TENANT:

	  	  
	
A. & A. Conte Joint Venture Limited

Partnership, an Illinois limited partnership

 

	
Aspen Marketing Services, LLC

a Delaware limited liability corporation

 

	
By: Conte Family Corporation, its General Partner

	
By:   /s/ Charles L. Horn

Name:  Charles L. Horn

Title:  CFO

	
By:  /s/ Arturo J. Conte

      Arturo J. Conte, President

	  

 

 

 

 

 

[Signature Page to Fourth Amendment to lndustrial  Building  Lease]

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