Document:

Exhibit 10.14

 

 

LEASE AGREEMENT

 

BETWEEN

 

 

EDGEWOOD GENERAL PARTNERSHIP

 

“Lessor/Landlord”

 

AND

 

METASTORM, INC., a Maryland
corporation

 

“Lessee/Tenant”

 

 

LEASE INDEX

 

	
  Items

  	
   

  	
  ITEM NO.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PREMISES AND TERM

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RENT

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OPERATING EXPENSE ADJUSTMENTS

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  USE OF PREMISES

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ASSIGNMENT AND SUBLETTING

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ACCESS TO PREMISES

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LANDLORD’S SERVICES

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ELECTRICAL OVERLOAD; STRUCTURAL OVERLOAD

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PARKING AREAS

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LEASEHOLD IMPROVEMENTS

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  REPAIRS AND MAINTENANCE

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ALTERATIONS AND IMPROVEMENTS

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  END OF TERM

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INDEMNITY

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WAIVER OF CLAIMS, WAIVER OF SUBROGATION

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DAMAGE BY FIRE OR THE ELEMENTS

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BUILDING RULES AND REGULATIONS

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EMINENT DOMAIN

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SIGNS AND ADVERTISING

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANTS DEFAULT

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONTRACTUAL LANDLORDS LIEN

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SUBORDINATION

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  QUIET ENJOYMENT

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECURITY DEPOSIT

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MECHANIC’S LIENS

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FORCE MAJEURE

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SEVERABILITY

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HOLDING OVER

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RELOCATION

  	
   

  	
  30

  

 

i

 

	
   

  	
   

  	
  RENT A SEPARATE COVENANT

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JOINT AND SEVERAL LIABILITY; CHANGE IN BUSINESS
  FORM

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ABSENCE OF OPTION

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CORPORATE TENANCY

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BROKERAGE COMMISSION

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LANDLORD’S DEFAULT

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICES

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INSURANCE

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RECORDING

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  STATUTORILY MANDATED NOTIFICATION

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NON-DISCLOSURE

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HAZARDOUS MATERIALS

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ADA

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AMENDMENTS

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INTERLINEATION

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT WARRANTY

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OPTION TO RENEW

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RIGHT OF FIRST REFUSAL (ROFR)

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SIGNATURE PAGE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT(S)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PREMISES

  	
   

  	
  A

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LANDLORD’S WORK

  	
   

  	
  B

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BUILDING RULES AND REGULATIONS

  	
   

  	
  C

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LEGAL DESCRIPTION

  	
   

  	
  D

  

 

ii

 

LEASE
AGREEMENT

 

THIS LEASE AGREEMENT (“Lease”)
is made this 11th day of April, 2006, by and between the “Landlord”
and the “Tenant” hereafter set forth.

 

WITNESSETH:

 

1.             DEFINITIONS:  In addition to the definitions contained
elsewhere in this Lease, the following definitions shall apply:

 

(a)

	
  Landlord:

  	
  Edgewood
  General Partnership

  
	
  Address:

  	
  1408
  North Westshore Boulevard, Suite 150

  
	
   

  	
  Tampa,
  Florida 33607

  

(b)

	
  Tenant:

  	
  Metastorm, Inc.,
  a Maryland corporation

  
	
  Address:

  	
  500
  East Pratt Street, Suite 1250  

  
	
   

  	
  Baltimore,
  Maryland 21202

  

 

 

(c)           Premises: Suite No. 450
consisting of approximately 7,846 rentable square feet (which the parties
expressly agree are contained in the Premises), on the attached Exhibit “A” expressly made a part hereof. The Premises
are located on the fourth floor of the structure, hereinafter called the
“Building”, located at 1408 N. Westshore Blvd., Tampa, FL 33607. The
parties expressly agree that there are 7,846 rentable square feet according to
BOMA standards within the Premises and 145,923 rentable square feet within the
Building. For the purposes of Items 1(i), and 5,
11, and 15 of this Lease, the term “Building” includes its
appurtenances, and its parking facilities.

 

(d)           “Use of Premises”: General
and Administrative

 

(e)           “Commencement Date”: The
term shall commence on the earlier of the date that Tenant takes possession of
the Premises or five (5) days after Landlord notifies Tenant that the
Premises are ready for occupancy (the “Commencement Date”), which is estimated
to be June 15, 2006 (provided that a Lease is signed and presented to
Landlord on or before April 1, 2006 and that a final space plan has been
acknowledged, in writing, by Tenant on or before April 1, 2006) and end on
the last day of the calendar month which is eighty-five (85) months after the
Commencement Date (the “Termination Date”), unless renewed, terminated or
extended on the terms and conditions set forth herein. Each of the parties
agrees, upon demand of the other, to execute a Commencement Agreement
establishing a Commencement Date as soon as it has been determined. In the
event the Commencement Date occurs on any date other than the first day of the
month (hereafter “Fractional Month”), the lease term shall commence on the
Commencement Date and end on the last day of the eighty-fourth (84th) full
month following the Commencement Date. The rental rates for the periods set
forth in 1(g) below shall commence on the first day of the first full
month following the Commencement Date. Notwithstanding the foregoing, if
Tenant, with Landlord’s consent, shall occupy the Leased Premises prior to the

 

1

 

beginning
of the Lease Term as specified hereinabove, all provisions of this Lease,
excluding the payment of Rent, shall be in full force and effect commencing
upon such occupancy.

 

(f)            “Term”:  Not less than eighty-four (84) months
commencing on the Commencement Date, this Lease to end on the last day of the
eighty-fourth (84th) calendar month after the Commencement Date.

 

(g)           “Rent”:  (See also Item 3.)  Rent and all other sums payable by Tenant to
Landlord under this lease, plus any applicable tax, shall be paid to Landlord,
without demand, recoupment, abatement, deduction or offset, at its office
presently located at 1408 North Westshore Boulevard, Suite 150,
Tampa, Florida 33607, or at such other place as Landlord may hereafter
specify in writing.  Tenant shall not
prepay rent other than for the next upcoming month, without Landlord’s prior
written consent to do so.  In the event
that Tenant does prepay rent other than for the next upcoming month, Landlord
may reject all prepaid rent tendered and return same to Tenant at the notice
address contained herein.

 

	
  TERM

  	
   

  	
  BASE RENTAL RATE*

  	
   

  	
  MONTHLY RATE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  06/15/06 –
  07/31/07

  	
   

  	
  $

  	
  22.50

  	
   

  	
  $

  	
  14,711.25

  	
   

  
	
  08/01/07 –
  07/31/08

  	
   

  	
  $

  	
  23.40

  	
   

  	
  $

  	
  15,299.70

  	
   

  
	
  08/01/08 –
  07/31/09

  	
   

  	
  $

  	
  24.34

  	
   

  	
  $

  	
  15,914.30

  	
   

  
	
  08/01/09 –
  07/31/10

  	
   

  	
  $

  	
  25.31

  	
   

  	
  $

  	
  16,548.52

  	
   

  
	
  08/01/10 –
  07/31/11

  	
   

  	
  $

  	
  26.32

  	
   

  	
  $

  	
  17,208.89

  	
   

  
	
  08/01/11 –
  07/31/12

  	
   

  	
  $

  	
  27.37

  	
   

  	
  $

  	
  17,895.42

  	
   

  
	
  08/01/12 –
  07/31/13

  	
   

  	
  $

  	
  28.47

  	
   

  	
  $

  	
  18,614.64

  	
   

  

 

*plus applicable State sales tax

 

(h)           “Base Year” means the
calendar year in which the Lease commences.

 

(i)            “Operating Expense Base
Amount” means the operating expenses of the Building, as defined at Item 4 hereof, in the Base Year of this Lease.

 

(j)            “Real Estate Tax Base Amount” means the total amount of real property
taxes on the Land and Building, as defined at Item 4
hereof’, in the Base Year of this Lease.

 

(k)           ‘Proportionate Share”:  The net rentable area in the Premises (7,846
square feet) divided by the net rentable area in the Building (145,923 square
fee:), which equals 5.38 percent.  If
Tenant leases from Landlord any additional space in the Building pursuant to
the terms and provisions of this Lease, then Tenant’s Proportionate Share shall
be increased accordingly.

 

(l)            “Additional Rent”:  As described in Item 3
of this Lease.

 

(m)          “Land”: Land shall mean real
property described in Exhibit D.

 

(n)           “Building”:  Building shall mean the improvements
presently or hereafter constructed on the Land.

 

2

 

2.             PREMISES
AND TERM.  Landlord,
in consideration of the Rent hereinafter reserved to be paid and of the
covenants, conditions and agreements to be kept and performed by Tenant, hereby
leases, lets and demises in Tenant, and Tenant hereby leases and hires from
Landlord, that certain space called the Premises as described above in Item 1, Section (c).

 

If Landlord, for any reason
whatsoever, cannot deliver possession of the Premises to Tenant on or before the
anticipated Commencement Date, this Lease shall not be void or voidable, nor
shall Landlord be liable to Tenant for any claim, loss or damage resulting
therefrom, but, in that event, there shall be an abatement of Rent and
Additional Rent covering the period between the anticipated Commencement Date
and the time when Landlord can so deliver possession, the date when Landlord
can so deliver possession being deemed to be the “Commencement Date”
(Commencement Date).  Notwithstanding the
foregoing, in the event Landlord fails to deliver the Premises to Tenant on or
before September 15, 2006, Tenant shall have the right to terminate this
Lease but only to the extent that Landlord’s inability to deliver the Premises
is not caused by situations beyond Landlord’s control, which are more
particularly set forth in Section 27 of this Lease.  Tenant shall not have the right to terminate
this Lease if such delays as set forth above are caused directly or indirectly
by Tenant or its representatives or invitees. 
The ending date of this Lease shall be extended for not less than an
identical period of time that transpired between the anticipated Commencement
Date and the date thereafter Landlord so delivered possession (Commencement
Date), it being the parties’ intent that this Lease have not less than a
complete Term as described and contemplated in Item 1,
Section (f) above. 
To this end, if the actual Commencement Date is a day other than the
first day of a particular month, the Term of this Lease shall not expire until
the last day of the last month of the proposed Term as described in Item 1, Section (g).  If the Commencement Date is other than the
anticipated Commencement Date, the parties representatives shall execute a
letter amendment to this Lease (which they are hereby authorized to do) whereby
the Commencement Date and expiration date of this Lease will he specified;
however, their failure to do so shall have no effect on the other contents of
this Lease, such contemplated execution to be merely for clarification
purposes.  By occupying the Premises,
excluding the completion of punch list items if any, Tenant shall be
conclusively deemed to have accepted the Premises as complying fully with each,
every, any and all of Landlord’s covenants and obligations with respect to the
delivery thereof.  Tenant shall also have
the non-exclusive right to use the parking facilities appurtenant to the
Building.  Reserved parking spaces in the
parking garage are available to Tenant at Landlord’s standard rates, which are
subject to change from time to time as deemed appropriate by Landlord at its
sole discretion.

 

3.             RENT.  Tenant covenants and agrees to pay without
demand, recoupment, abatement, deduction or offset, to Landlord Rent (and
Additional Rent) for the Premises on or before the first (1st) day of the first
(1st) full calendar month of the Term hereof and on or before the first (1st)
day of each and every successive calendar month thereafter during the full Term
of this Lease, subject to the adjustments as provided hereinafter, along with
any applicable tax, at the rate in effect at the time of each such payment
(currently seven (7%) percent.  Upon
Tenant’s execution of this Lease, Tenant shall submit with the signed Lease the
first month’s rent as defined in Section 1(g).
 In the event the Commencement Date
occurs on a day other than the first (1st) day of a calendar month, the first
Rent payment shall be in the amount of the Rent for one (1) full calendar
month, plus the prorated Rent for the calendar month in which the Term of this
Lease commences, such payment to be due on the Commencement Date.  Landlord shall be 

 

3

 

responsible
for directing such tax to the appropriate taxing authority in a timely fashion,
on or before the same is due, and shall be liable for any late fees or charges
for failure to comply with this requirement.

 

Whenever under the terms of
this Lease any sum of money is required to be paid by Tenant in addition to the
Rent herein reserved, whether or not such sum is herein described as “Additional
Rent”, or a provision is made for the collection of said sum as “Additional
Rent” said sum shall nevertheless, at Landlord’s option, if not paid when due,
be deemed Additional Rent, and shall be collectible as such with the first
installment of Rent thereafter falling due hereunder.  In the event any installment or increment of
Rent or Additional Rent payable under this Lease shall not be received by
Landlord within five (5) business days of the date due, a “late charge” of
five percent (5%) of the amount overdue may be charged (as Additional Rent) by
Landlord for the purpose of defraying the expense and inconvenience incident to
handling such overdue payment and for the purpose of compensating Landlord for
its attendant inconvenience and loss of cash flow.

 

4.             OPERATING
EXPENSE ADJUSTMENTS.  The Landlord and
Tenant each acknowledge that the Rent specified in Item 3
of this Lease does not provide for increases in operating expenses and real
estate taxes in excess of the Base Year Amounts.  Accordingly, during the term of this Lease,
and any extension(s) thereto, beginning with the first calendar year
subsequent to the Base Year, Tenant shall pay to Landlord, as additional rent,
its proportionate share of estimated increases in operating expenses and real
estate taxes over the Base Year Amounts. 
Notwithstanding any language in the Lease seemingly to the contrary, if
the Building is not fully occupied during the Base Year, actual
Operating Expenses and Real Estate Taxes will be determined for the Base Year
as if the Building had been fully occupied during such year.  For the purposes of this Lease, “fully
occupied” means the greater of actual occupancy or 95% of the rentable area in
the Building.

 

Commencing on January 1
of the calendar year following the Base Year and continuing on the first day of
each calendar month thereafter until the expiration or other termination of
this Lease, Tenant shall pay to Landlord, as additional monthly rental, an
amount equal to one-twelfth of the Tenant’s Proportionate Share of the amount
by which budgeted operating expenses and real estate taxes for the current
calendar year exceeds the Base Year Amounts. 
In the event the amount of additional monthly rental collection
hereunder for the preceding twelve month period is less than the actual
excesses for such year, Tenant shall remit the balance thereof to the Landlord
within five (5) business days after the receipt of such notice.  In the event the amount of additional monthly
rental collection hereunder for the preceding twelve month period is greater
than the actual excesses for such period, Landlord shall remit the difference
to the Tenant accompanied by said notice.

 

The term “operating expenses”
includes all expenses incurred by Landlord with respect to the maintenance and
operation of the Building of which the leased “Premises” are a part, including,
but not limited to, the following: 
maintenance, repair and replacement costs; electricity, fuel, water,
sewer, gas and other utility charges; security, window washing and janitorial
services; trash; landscaping and pest control; management fees, wages and
benefits payable to employees of Landlord whose duties are directly connected
with the operation and maintenance of the Building; all services, supplies,
repairs, replacements or other expenses for 

 

4

 

maintaining
and operating the Building or project including parking and common areas; the
cost, including interest, amortized over its useful life, of any capital
improvements made to the Building by Landlord after the date of this Lease
which is required under any governmental law or regulation that was not
applicable to the Building at the time it was constructed; the cost, including
interest, amortized over its useful life, of installation of any device or
other equipment for the purpose of improving operating efficiency; all other
expenses which would generally be regarded as operating and maintenance
expenses which would reasonably be amortized over a period not to exceed five
years; all insurance premiums Landlord is required to pay or deems necessary to
pay, including public liability insurance, with respect to the Building.  The term operating expenses does not
include the following:  repairs,
restoration or other work occasioned by fire, wind, the elements or other
casualty; income and franchise taxes of Landlord; real estate broker’s
commissions, attorney’s fees, costs and disbursements and other expenses
incurred in connection with negotiations or disputes with Tenants, other
occupants; advertising expenses and expenses for the renovating of space for
new Tenants; interest or principal payments on any mortgage or other
indebtedness of Landlord; any depreciation allowance or expense; or operating
expenses which are the responsibility of Tenant.  Notwithstanding the foregoing, Landlord shall
provide a cap of 5% on all controllable Operating Expenses.  Controllable Operating Expenses do not
include Utilities, Building Insurance and Real Estate Taxes.

 

The term “Taxes” means the
aggregate amount of real property taxes and assessments taxes, assessed,
imposed, or levied by any lawful authority upon the Land and the Building in
any calendar year during the term of this Lease; and, shall also include
administrative costs and contingency fees paid to independent consultants
engaged to negotiate, on behalf of Landlord, assessments imposed by applicable
taxing authorities.

 

If Landlord, in its sole
discretion in operating the Building, chooses to install any energy or labor
saving devices, equipment, fixtures or appliances to or in the Building that
otherwise might be considered a capital expenditure, then Landlord may
depreciate the cost of the equipment, device, appliance or fixture into the
Operating Expenses of the Building, including interest at a reasonable rate,
all depreciated on an annual basis up to the amount of the savings during each
such annual period or prorate portion thereof, until such time as the cost has
been 100% depreciated.

 

Landlord
shall maintain records concerning estimated and actual Operating Expenses with
respect to the Building and the Premises for no less than
twelve (12) months following the period covered by the statement or statements
furnished Tenant, after which time Landlord may dispose of such records unless
Tenant has initiated an audit with respect to such period, in which event
Landlord shall maintain such records for such reasonable time as Tenant may
require to complete its audit.  Tenant
may, at Tenant’s costs and expense, cause an inspection and audit by an auditor
of Tenant’s choice of Landlord’s records, provided any such inspection shall be
conducted no more than once each year during Landlord’s normal business
hours.  Any errors disclosed by the
review shall be promptly corrected by Landlord; provide, 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.  If the result of both audits reveal that Tenant
has overpaid obligations for a preceding period, the amount of such overpayment
shall be credited against Tenant’s subsequent installments of Rent or other
payments due to Landlord under this Lease.

 

5

 

5.             USE
OF PREMISES:  The Premises shall
be used by Tenant as described above in Item 1, Section (d), and for no other business or purpose
whatsoever without the prior written discretionary consent of Landlord.  Tenant shall not do or permit to be done in
or about the Premises or Building, nor bring or keep or permit to be brought or
kept therein, anything which is prohibited by, or will in any way conflict
with, any law, statute, ordinance or governmental rule or regulation now
in force or which may hereafter be enacted or promulgated, or which is
presently or hereafter prohibited by any standard form of fire insurance policy
or will presently or hereafter in any way increase the existing
rate of or affect any fire or other insurance upon the Building or any of its
contents, or presently or hereafter cause a cancellation of any insurance
policy covering the Building or any part thereof or any of its contents.  Tenant shall not do or permit anything to be
done in or about the Premises or Building, which will presently or hereafter in
any way obstruct or interfere with the rights of other Tenants of the Building,
or injure or annoy them or use or allow to be used the Premises or Building for
any improper, immoral, unlawful or objectionable purpose (as determined by
Landlord); nor shall Tenant cause, maintain, or permit any nuisance (as
determined by Landlord or by law) in or about the Premises or commit or suffer
to be committed any waste in, on, or about the Premises or Building.  Tenant shall be responsible for all losses
and damages to Landlord as a result of Tenant’s failure to use, occupy and
surrender the Premises or Building in strict accordance with the contents of
this Lease, and such responsibility shall survive the expiration or earlier
termination of this Lease.  Tenant, at
Tenant’s expense, shall comply with all laws, rules, orders, statutes,
ordinances, directions, regulations and requirements of all federal, state,
county and municipal authorities pertaining to Tenant’s use and occupancy of
the Premises or Building and with the recorded covenants, conditions and
restrictions pertaining thereto, regardless of when they become effective or
applicable, including, without limitation, all applicable federal, state and
local laws, regulations or ordinances pertaining to air and water quality,
Hazardous Materials, waste disposal, air emissions and other environmental
matters, all zoning and other land use matters, and with any direction of any
public officer or officials which shall impose any duty upon Landlord or Tenant
with respect to the use or occupation of the Premises.  For the purposes of this Item 5, the term “Tenant”
includes Tenant’s agents, employees, principals, officers, successors, assigns,
subtenants, invitees, contractors and consultants.

 

6.             ASSIGNMENT
AND SUBLETTING.  Tenant shall not
assign the right of occupancy under this Lease, or any other interest therein,
or sublet the Premises, or any portion thereof, without the prior written
consent of Landlord, which the parties agree shall not be unreasonably
withheld, conditioned or delayed by the Landlord; provided, however, that
notwithstanding any term or provision herein to the contrary, Tenant shall have
the right, upon written notice to Landlord, to assign or sublet the Premises,
or any portion thereof, to a subsidiary or affiliate of Tenant (an “Affiliate”).  Tenant absolutely shall have no right of
assignment or subletting if it is in default of this Lease.  Notwithstanding anything in this lease to the
foregoing, Landlord shall not be required to consent to an assignment of this
Lease or a sublease of all or part of the Premises by Tenant to any
governmental entity or agency, to any tenant in a building in the same city in
which the Building is located and which is owned or managed by Landlord or any
affiliate of Landlord or at rental rates less than the current market rental
rate for the Building as established by Landlord.  Landlord’s refusal to permit a sublease or
assignment to a governmental or quasi-governmental agency shall not constitute
an unreasonable denial to permit such a sublease or assignment.  If Landlord elects to grant its written
consent to any proposed assignment or sublease (whether by Tenant or by others
claiming by or through Tenant), Tenant 

 

6

 

or such others agree to pay Landlord an
administrative fee in a reasonable amount (but not more than $750.00),
including attorney’s fees to process and approve such assignment or sublease,
and Landlord may prescribe the substance and form of such assignment or
sublease.

 

Notwithstanding
any assignment of this Lease, or the subletting of the Premises, or any portion
thereof, Tenant shall continue to be fully liable for the performance of the
terms, conditions and covenants of this Lease, including, but not limited to,
the payment of Rent and Additional Rent. 
This continuing liability shall be absolute and unconditional and shall
remain in full force and effect without regard to, and shall not be released,
discharged, diminished, reduced or in any other way affected by; (a) any
amendment or modification of, or supplement to, this Lease or any
further assignment or transfer thereof or any further sublease pertaining
thereto; or (b) any action taken or not taken by Landlord against any
assignee or subtenants; or (c) any agreement which modifies any of the
rights or obligations of the parties (or their respective successors) under
this Lease; or (d) any agreement which extends the time within which an
obligation under this Lease is to be performed; or (e) any waiver of the
performance of an obligation required under this Lease; or (f) any failure
to enforce any of the obligations set forth in this Lease.  Consent by Landlord to one or more
assignments or sublettings shall not operate as a waiver of Landlord’s rights
as to any subsequent assignments or sublettings.  Excluding Affiliates, Landlord shall have the
additional option, which shall be exercised by providing Tenant with written
notice, of terminating Tenant’s rights and obligations under this Lease rather
than permitting any assignment or subletting by Tenant, any statement or
implication in this Lease or at law to the contrary notwithstanding.

 

If Landlord permits any
assignment or subletting by Tenant and if the monies (no matter how
characterized) received as a result of such assignment or subletting [when
compared to the monies still payable by Tenant to Landlord] should be greater
than would have been received hereunder had not Landlord permitted such
assignment or subletting, then fifty percent (50%) of the excess after Tenant
first recoups all subletting and assignment costs (which shall be limited to
commissions and tenant improvements), shall be payable by Tenant to Landlord as
received by Tenant.  If there are one or
more assignments or sublettings by Tenant to which Landlord consents, then any
and all extension options to be exercised subsequent to the date of such
assignment or subletting and all options to lease additional space in the
Building to be exercised subsequent to the date of such assignment or
subletting are absolutely waived and terminated at Landlord’s sole
discretion.  In the event of the transfer
and assignment by Landlord of its interest in this Lease and/or sale of the
Building containing the Premises, either of which it may do at its sole option,
Landlord shall thereby be released from any further obligations hereunder, and
Tenant agrees to look solely to such successor in interest of Landlord for
performance of such obligations.  The
provisions of Item 36 hereafter dealing
with “Notices” shall be amended to provide the correct names and addresses of
the assignee or subtenant.  If Tenant is
a partnership or corporation whose stock is not regularly traded on a bona fide
public exchange, and if any transfer, sale, pledge or other disposition of a
partnership interest or the common stock shall occur which changes the power to
vote the majority of interest in the partnership or of the outstanding capital
stock of the company, such action shall be considered an assignment under the
terms of this Lease.  Any breach of this Item 6 by Tenant will constitute an automatic default
under the terms of this Lease, per Item 20
hereof.

 

7

 

7.             ACCESS TO THE PREMISES.  With not less than 24 hours notice, except in
the case of emergencies or necessary building repairs, Landlord or its
authorized agent or agents shall have the right to enter upon the Premises for
the purposes of inspecting the same, preventing waste, making such repairs as
Landlord may consider necessary (but without any obligation to do so except as
expressly provided for herein), and showing the Premises to prospective Tenants
(during the last nine (9) months of the term), mortgagees and/or
purchasers.  If during the last month of
the Term, Tenant shall have removed all or substantially all of Tenant’s
property therefrom, Landlord may, with Tenant’s written consent, enter and
alter, renovate and redecorate the Premises without elimination or abatement of
Rent or Additional Rent or incurring liability to Tenant for any compensation
or offsets in Rent or Additional Rent and charges owed and such acts shall have
no effect upon this Lease.

 

8.             LANDLORD’S SERVICES.  Landlord shall, at its expense, furnish the
Premises with (i) electricity subject to Item 9
of this Lease; (ii) heat and air conditioning during reasonable and usual
business hours (exclusive of Saturday afternoons, Sundays and
nationally-recognized holidays) reasonably required for the occupation of the
Premises, such heat and air-conditioning to be provided by utilizing the
existing Building systems, it being expressly understood and agreed by the
parties that Landlord specifically shall not be liable for any losses or damages
of any nature whatsoever incurred by Tenant due to any failure of the equipment
to function properly, or while it is being repaired, or due to any governmental
laws, regulations or restrictions pertaining to the furnishing or use of such
heat and air-conditioning; (iii) elevator service; (iv) lighting
replacement for customary fluorescent lighting provided by Landlord; (v) toilet
room supplies; (vi) daily janitor service during the time and in the
manner that such janitor service is customarily furnished in first class office
Buildings in the metropolitan area where the Building is located; (vii) water;
and (viii) sewerage.  The foregoing
services are designated “Building Standard”.

 

Tenant
will pay $35.00 per hour per floor (this price is subject to change) for HVAC
after normal business hours, which are:

Monday
through Friday 8:00 a.m. - 6:00 p.m.

Saturday
8:00 a.m. - 1:00 p.m.

 

Tenant agrees that Landlord
is only responsible for Building Standard maintenance and Building Standard
services.  If other, more complete or
specialty services and maintenance (over Building Standard) are required, then
Tenant solely shall be and is responsible for same and for any and all expenses
and costs of any nature whatsoever associated with same.  To this end, Tenant is and shall be solely
responsible for any expenses and costs of any nature whatsoever associated
with, among other things, maintaining upgraded Tenant improvements in the
Premises, replacing non-Building Standard lighting fixtures and bulbs in the
Premises, servicing, operating and maintaining any separate and non-Building
Standard HVAC systems and facilities serving the Premises, refundable security
deposits for after-hours building access cards, etc.  In the event Tenant requests that Landlord
provide to the Premises any form of specialty services for purposes identified
by Tenant to be the responsibility of the Landlord and the results of such
specialty services indicate that Tenant’s perceived problem does not exist or
that Landlord is not responsible for the cause of Tenant’s request, then Tenant
shall be responsible for any expenses and costs of any nature whatsoever
associated with Tenant’s request.  Tenant’s
request to 

 

8

 

Landlord
for such specialty services shall be in writing and delivered to the Landlord
at the notice address as defined in this Lease, or such other address as
Landlord may require.

 

Landlord shall not be liable
for any damages directly or indirectly or consequentially resulting from, nor
shall any Rent or Additional Rent herein set forth be reduced or abated by
reason of, (1) installation, use, or interruption of use of any equipment
in connection with the furnishing of any of the foregoing services, or (2) failure
to furnish, or delay in furnishing, any such services when such failure or
delay is caused by accident or any condition beyond the reasonable control of
Landlord or by the making of necessary repairs or improvements to the Premises
or to the Building or because of any governmental laws, regulations or
restrictions.  The temporary failure to
furnish any such services shall not be construed as an eviction of Tenant or
relieve Tenant from the duty of observing and performing each, every, any and
all of the provisions of this Lease.

 

9.                                     ELECTRICAL
OVERLOAD;  STRUCTURAL OVERLOAD.

 

A)                                  Tenant’s use of
electrical services furnished by Landlord shall be subject to the following:

 

(1)                                  Tenant’s
electrical equipment shall be restricted to that equipment which individually
does not have a rated capacity greater than .5 kilowatts per hour and/or
require voltage other than 120/208 volts, single phase.  Collectively, Tenant’s equipment shall not
have an electrical design load greater than an average of five (5) watts
per square foot (including overhead lighting).

 

(2)                                  Tenant’s
overhead lighting shall not have a design load greater than an average of two (2) watts
per square foot.

 

(3)                                  If Tenant’s
consumption of electrical services exceeds either the rated capacities and/or
design loads as per subsections (1) and (2) above, then Tenant
shall remove such equipment and/or lighting to achieve compliance within ten (10) days
after receiving notice from Landlord.  Or
upon receiving Landlord’s prior written approval, such equipment and/or
lighting may remain in the Premises, subject to the following:

 

(a)                                  Tenant shall
pay for all costs of installations and maintenance of submeter, wiring,
air-conditioning and other items required by Landlord, in Landlord’s
discretion, to accommodate Tenant’s excess design loads and capacities;

 

(b)                                 Tenant shall
pay to Landlord, upon demand, the cost of the excess demand and consumption of
electrical service at rates determined by Landlord which shall be in accordance
with any applicable laws; and

 

(c)                                  Landlord may,
at its option, upon not less than thirty (30) days’ prior written notice to
Tenant, discontinue the availability of such 

 

9

 

extraordinary utility
service.  If Landlord gives any such
notice, Tenant will contract directly with the public utility for the supplying
of such utility service to the Premises.

 

B)                                    Tenant shall
not place a load upon any floor of the Premises exceeding 50 pounds per
square foot, which such floor was designed to carry and which may be allowed by
law.  Landlord reserves the right to
prescribe the weight and position of all heavy equipment and similar items, and
to prescribe the reinforcing necessary, if any, which in the opinion of
Landlord may be required under the circumstances, such reinforcing to be at
Tenant’s pre-paid expense.

 

10.          PARKING AREAS/ACCESS KEYS.  Landlord shall keep and maintain in good
condition parking areas that may be provide at no cost for surface, unreserved
spaces at a ratio of four spaces per one thousand square feet leased by
Tenant.  Landlord reserves the right to
control the method, manner and time of parking in parking spaces.  Landlord shall not be responsible at all, any
statement or implication elsewhere in this Lease to the contrary
notwithstanding, for the security of the parking areas provided pursuant to
this Lease.  Any and all parking charges
payable by Tenant for reserved parking spaces, whether to Landlord or to
Landlord’s designate(s), shall be Additional Rent; furthermore, if Tenant fails
to pay duly, fully and timely such parking charges, Landlord [or its
designate(s)] may discontinue, without notice to Tenant (or anyone else), the
availability of the reserved parking space(s), no matter by whom such parking
spaces are or were being utilized or are in the future to be utilized, anything
to the contrary elsewhere in this Lease notwithstanding.

 

In addition to the
foregoing, Landlord shall provide to Tenant access keys/cards in the same
proportion of parking spaces provided to Tenant hereunder.  Tenant shall pay to Landlord, upon receipt of
building security after-hours access cards, a refundable, non-interest-bearing
deposit of $6.00 per card.  Such deposit
shall be returned to Tenant upon return of building security after-hours access
cards.

 

11.          LEASEHOLD IMPROVEMENTS.  The Premises are rented “as is”,
without any additional services or improvements to be rendered by Landlord,
other than those services described in Item 8 and such other services or
improvements as may be described in Exhibit “B”
attached hereto and expressly made a part hereof.  If Landlord is to additionally alter,
remodel, improve, or do any physical act or thing to the space as presently
constituted or as described in Exhibit “B”,
same shall be at the sole expense of Tenant and shall be effected only by a “Work
Order” signed by the parties.  In the
absence of a “Work Order” signed by the parties, Landlord is under no
obligation to make any such alteration, remodeling or improvement or do any
physical act or thing to the space.

 

Any work or Tenant
Improvements requested by the Tenant beyond the Scope of Work set forth in Exhibit “B” shall be a matter solely between Tenant and
the contractor performing the improvements and all expenses and financial
arrangements and payment relating to such additional work shall be a matter
solely between Tenant and such contractor. 
Tenant is advised that such contractor may request such payment in
advance for such work to be performed beyond that set forth in Exhibit “B” set forth.

 

10

 

Any and all extraordinary
(as so determined by Landlord at its sole discretion) expenses and costs of any
nature whatsoever attributable to the installation, maintenance and/or removal
of telephone equipment, computer equipment and the like shall be borne solely
by Tenant.

 

12.          REPAIRS AND MAINTENANCE.  Landlord will, at its own cost and expense,
except as may be provided elsewhere herein, make necessary repairs of damage to
the Building corridors, lobby, structural members of the Building, and
equipment used to provide the Building Standard services referred to in Item 8, unless any such damage is caused by acts or
omissions of Tenant, its agents customers, employees, principals, contractors,
consultants, assigns, subtenants or invitees, in which event Tenant will bear
the cost of such repairs.  Tenant will
allow no maintenance or repairs to be done in, on, to or about the Premises
other than by a licensed contractor (such term to include all degrees and
levels of subcontractors) approved by Landlord in writing prior to any such
maintenance or repairs being undertaken. 
Landlord shall be entitled to require such contractor to be bonded and
insured in such amounts and with such companies as Landlord may in its
discretion prescribe.  Tenant will not
injure the Premises or the Building but will maintain the Premises in a clean,
attractive, condition and in good repair, except as to damage to be repaired by
Landlord as provided above.  Upon
termination of this Lease, Tenant will surrender and deliver the Premises to
Landlord in the same condition in which they existed at the
commencement of this Lease including any agreed upon improvements per the Work
Order, excepting only ordinary wear and tear and damage arising from any cause
not required to be repaired by Tenant, or Landlord approved alterations and
improvements.  This Item 12
shall not apply in the case of damage or destruction by fire or other casualty
which is covered by insurance maintained by Landlord on the Building (as to which
Item 16 hereof shall apply) or
damage resulting from an Eminent Domain taking (as to which Item 18 hereof shall apply).

 

13.          ALTERATIONS AND IMPROVEMENTS.  Tenant absolutely shall not make any
alterations, additions or improvements to or in the Building outside the
Premises.  Furthermore, Tenant shall make
no alterations or improvements (including additions) to or in the Premises
without the prior written approval of Landlord, unless in each instance and for
each such alteration or improvement, Landlord or a contractor approved by
Landlord is hired to do such alterations or improvements.  Such approval shall not be unreasonably
withheld in the case of alterations or improvements to the interior of the
Premises if such alterations or improvements are normal for the use described
in Item 1(d) of this Lease, do
not adversely affect utility of the Premises for future Tenants, do not alter
the exterior of the Building, and are accompanied by insurance satisfactory to
Landlord and by prepayment or bond provisions or waivers by the contractor in
form satisfactory to Landlord sufficient to protect the Building from claims of
lien of any sort; otherwise, such approval may be withheld for any reason
whatsoever.  Furthermore,
such alterations or improvements absolutely shall not affect the mechanical,
plumbing, electrical and HVAC systems in the Premises or the Building and shall
not be of a structural nature.  Tenant
shall conduct its work in such a manner as to maintain harmonious labor
relations and as not to interfere with the operation of the Building and shall,
prior to the commencement of the work, submit to Landlord copies of all
necessary permits.  Landlord reserves the
right to have final approval of the contractors hired by Tenant.  All such contractors hired by Tenant shall
be, at levels and coverage’s prescribed by Landlord, licensed, bonded and
insured, and Landlord may require evidence of same, which Tenant agrees to
secure and provide Landlord prior to the commencement of any work by such
contractors.  All alterations or
improvements, whether temporary or permanent in character, made in or upon the
Premises, either by Landlord or 

 

11

 

Tenant,
shall be Landlord’s property and at the end of the term hereof shall remain in
or upon the Premises without compensation to Tenant.  If, however, Landlord shall request in
writing, Tenant will, prior to expiration or earlier termination of this Lease,
remove any and all alterations, and improvements placed or installed by Tenant
in the Premises, and will repair any damage caused by such removal.  All of Tenant’s furniture, movable trade
fixtures and equipment not attached to the Building may be removed by Tenant at
the expiration of this Lease, if Tenant so elects, and shall be so removed, if
required by Landlord, and, if not so removed, shall, at the option of Landlord,
become the property of Landlord.  To the
extent Tenant makes any alterations or improvements and/or to the extent
Landlord on behalf of Tenant under an “Extra Work Agreement” makes such
alterations or improvements, and as a result thereof it can be determined that
thereupon was caused an increase in real estate taxes or insurance premiums,
then Tenant shall be responsible for reimbursing Landlord for such increases as
Landlord may pay.

 

14.          END OF TERM.  At the end of this Lease or any earlier
termination, Tenant will promptly quit and surrender the Premises broom-clean,
and in good order and repair, ordinary wear and tear excepted.  If Tenant is not then in default, Tenant may
remove from the Premises any trade fixtures, equipment, and movable furniture
placed in the Premises by Tenant, whether or not such trade fixtures or
equipment are fastened to the Building; Tenant will not remove any trade
fixtures or equipment without Landlord’s prior written consent if such fixtures
or equipment will result in impairing the structural strength, infrastructure
or mechanical systems of the Building. 
Whether or not Tenant is in default, Tenant will remove such alterations,
additions, improvements, trade fixtures, equipment and furniture as Landlord
has requested or may request in accordance with Item 13.  Tenant will fully repair any damage
occasioned by the removal of any trade fixtures, equipment, furniture, alterations,
additions and improvements.  All trade
fixtures, equipment, furniture, inventory, effects, alterations, additions, and
improvements not so removed will be deemed conclusively to have been abandoned
and may be appropriated, sold, stored, destroyed, or otherwise disposed of by
Landlord without written notice to Tenant or any other person and without
obligation to account otherwise disposed of by Landlord without written notice
to Tenant or any other person and without obligation to account for them.  Tenant will pay Landlord for all expenses
incurred in connection with the removal of such property, including but not
limited to the cost of repairing any damage to the Building or Premises caused
by the removal of such property.  Tenant’s
obligation to observe and perform this covenant will survive the expiration or
other termination of this Lease.

 

15.          INDEMNITY.  Landlord shall not be liable for, and Tenant
will indemnify and save Landlord (and Landlord’s officers, principals, agents,
employees and insurers) harmless of and from, each, every, and all fines,
suits, damages, claims, demands, losses and actions (including attorney’s fees)
for any injury to person or damage to or loss of property on or about the
Premises and Building caused by the negligence or misconduct or breach of this
Lease by Tenant, its employee, agents, principals, contractors, consultants,
assigns, subtenants, invitees or by any other person entering the Premises or
the Building under express or implied invitation of Tenant, or arising out of
Tenant’s use of the Premises.  Landlord
absolutely shall not be liable or responsible for any loss or damage to any
property or the death or injury to any person occasioned by theft, crime (of
any nature whatsoever), fire, act of God, public enemy, injunction, riot,
strike, insurrection, war, court order, requisition of governmental body or
authority, by other Tenants of the Building or by any other matter beyond the
absolute control of Landlord, or for 

 

12

 

any
injury or damage or inconvenience which may arise through repair or alteration
of any part of the Building, or failure to make repairs, or from any cause
whatsoever except Landlord’s negligence or intentional act.  It is specifically understood and agreed that
there shall be no personal liability on Landlord (nor on Landlord’s officers,
principals, agents and employees) with respect to any of the covenants,
conditions or provisions of this Lease; in the event of a breach or default by
Landlord of any of its obligations under this Lease, Tenant shall look solely
to the equity of Landlord in the Building for the satisfaction of any and all
of Tenant’s right and remedies.

 

16.          WAIVER OF CLAIMS; WAIVER OF
SUBROGATION.  To the
extent permitted by law, Tenant waives all claims it may have against Landlord,
its agents or employees for damage to property sustained by Tenant or any
occupant of other person resulting from the Premises or the Building or any
part of said Premises or Building becoming out of repair or resulting from any
accident within or adjacent to the Premises or Building or resulting directly
or indirectly from any act of omission of Landlord or any occupant of the
Premises or Building or any other person while on the Premises or Building, or
resulting from any peril required to be insured against under this Lease,
regardless of cause of origin. 
Particularly, but not in limitation of the foregoing sentence, all
property belonging to Tenant or any occupant of the Premises that is in the
Building or the Premises will be there at the risk of Tenant or other person
only, and Landlord or its agents or employees will not be liable for damage to
or theft of or misappropriation of such property, nor for any damage to
property resulting from fire, explosion, flooding of basements or other
subsurface areas, falling plaster, steam, gas, electricity, snow, water or rain
which may leak from any part of the Building or from the pipes, appliances or
plumbing works therein or from the roof, street or subsurface or from any place
or resulting from dampness or any other cause whatsoever, nor for any latent
defect in the Premises or in the Building. 
Tenant will give prompt notice to Landlord in case of fire or accidents
in the Premises or in the Building or of defects therein or in the fixtures or
equipment.

 

Tenant agrees to include in
the insurance policies which Tenant is required by this Lease to carry, to the
fullest extent permitted by law, a waiver of subrogation against Landlord and
Landlord’s managing agent.

 

To the extent permitted by
law, Landlord waives all claims it may have against Tenant, its agents or
employees for damage to the Building resulting directly or indirectly from any
act or omission of Tenant or any occupant of the Premises or any other person
while on the Premises, to the extent that such claim is covered by any property
insurance which Landlord carries on the Building.  Landlord will include in any property
insurance policy which Landlord may carry on the Building, to the extent permitted
by law, a waiver of subrogation against Tenant.

 

Landlord
will not be required to maintain insurance against thefts
within the Premises, the Building or any project within which the Building is
located.

 

17.          DAMAGE BY FIRE OR THE ELEMENTS.  In the event that the Building is totally
destroyed by fire, tornado or other casualty, or in the event the Premises or
Building is so damaged that, within Landlord’s discretion, rebuilding or
repairs cannot be completed within two hundred seventy days (270) days after
the date of such damage, Landlord, within sixty (60) days of the casualty,
shall give Tenant written notice of the estimated time for completion or of 

 

13

 

Landlord’s
intent not to repair.  In such event,
either Landlord or Tenant may, at its option, by written notice to the other
given not more than ninety (90) days after the date of Landlord’s delivery of
the Damage Notice to Tenant, such fire or other casualty, terminate this
Lease.  In such event, the Rent and
Additional Rent shall be abated during the unexpired portion of this Lease
effective with the date of such fire or other casualty.

 

In the event the Building or
the Premises are damaged by fire, tornado, or other casualty covered by
Landlord’s insurance but only to such extent that rebuilding or repairs can be
completed within two hundred seventy (270) days after the date of such damage,
or if the damage should be more serious but neither Landlord nor Tenant elects
to terminate this Lease, then Landlord shall, within thirty (30) days after the
date of such damage or such election, commence to rebuild or repair the
Building and/or the Premises and shall proceed with reasonable diligence to
restore the Building and/or the Premises to substantially the same condition in
which it/they was/were immediately prior to the happening of the casualty,
except that Landlord shall not be required to rebuild, repair or replace any
part of the furniture, equipment, fixtures and other improvements which may
have been placed by Tenant or other Tenants or occupants within the Building or
Premises.  Landlord shall, unless such
damage is deemed by Landlord to be the result of the negligence or willful
misconduct of Tenant or Tenant’s employees, agents, principals, contractors,
consultants, assigns, subtenants or invitees, allow Tenant a fair diminution of
Rent and Additional Rent during the time of such rebuilding or repairs.  In the event any mortgagee, or the holder of
any deed of trust, security agreement or mortgage on the Building, requires
that the insurance proceeds be used to retire the mortgage debt, Landlord shall
have no obligation to rebuild and this Lease shall terminate upon notice to
Tenant.  Any insurance which may be
carried by Landlord or by Tenant against loss or damage to the Premises or its
contents shall be for the sole benefit of the party carrying such insurance and
under its sole control.

 

18.          BUILDING RULES AND REGULATIONS.  Tenant shall faithfully observe and comply
with the Rules and Regulations printed on or annexed to (and expressly
made a part of) this Lease and all reasonable modifications of and additions
thereto from time to time put into effect by Landlord, provided such are
universal to all tenants.  Landlord shall
not he responsible to Tenant for the nonperformance of any of said Rules and
Regulations by any other Tenant, occupant, invitee or visitor of the
Building.  Tenant shall and does hereby
have an affirmative obligation (to include indemnification of Landlord, per Item 15 hereof) to notify its agents, employees,
principals, assigns, subtenants and invitees of the contents of such Rules and
Regulations and of this Lease and to assure their compliance therewith.

 

19.          EMINENT DOMAIN.  If the whole or a portion of the Building is
taken for any public or quasi-public use under any statute or by right of
Eminent Domain or private purchase in lien thereof, then at Landlord’s option,
but not otherwise, this Lease, the Term hereby demised and each, every, any and
all rights of Tenant hereunder shall immediately cease and terminate and the
Rent and Additional Rent shall be adjusted as of the date of such
termination.  Tenant shall be entitled to
no part of the award made for such condemnation (or other taking) or the
purchase price thereof.  Notwithstanding
the foregoing, Tenant shall have the right to claim and recover from the
condemning authority compensation for any loss to which Tenant may be entitled,
including Tenant’s moving expenses or other relocation costs.  Nevertheless, anything to the contrary
notwithstanding, likewise at Landlord’s option, but not otherwise, if the
Premises are 

 

14

 

unaffected
by such condemnation (or other taking), then this Lease and each and every one
of its provisions shall continue in full force and effect.

 

20.          SIGNS AND ADVERTISING.  Without the prior written approval of
Landlord, which may be withheld at Landlord’s discretion, Tenant shall not be
permitted the painting or display of any signs, placard, lettering, or
advertising material of any kind on or near the exterior of the Premises or the
Building.  Notwithstanding the foregoing,
Tenant shall be entitled to display Tenant’s name on or near the entrance to
the Premises, in a Building-standard manner prescribed by Landlord, such
signage to be installed solely by Landlord’s signage vendor.

 

Pylon signage on Westshore
Boulevard is available solely at Landlord’s discretion on a month to month
basis at rates which may be changed from time to time.  Preference is afforded to Tenants according
to the total rentable square footage occupied, and eligibility for signage may
change from time to time depending upon demand therefore.  All decisions relating to the signage shall
be at Landlord’s sole discretion. 
Notwithstanding anything to the contrary in this Lease Agreement, such
pylon signage rights, if any, are not assignable or transferable in the event
of an assignment or sublease by Tenant.

 

21.          TENANT’S DEFAULT.  The happening, of any one or more of the
following events, shall constitute a default hereunder:

 

a)                                      Tenant’s
failure to pay within three (3) business days after written notice the
Rent, Additional Rent, or any other sums payable to Landlord (no matter how
characterized);

 

b)                                     Tenant’s
failure to observe, keep or perform any of the other terms, covenants,
agreements or conditions of this Lease or in the Building Rules and
Regulations for a period of ten (10) days after written notice by Landlord
(or within such additional time as is reasonably required to remedy any such
default) so long as Tenant is diligently pursuing such cure to completion);

 

c)                                      The insolvency
of Tenant;

 

d)                                     Tenant’s making
an assignment for the benefit of creditors;

 

e)                                      A receiver or
trustee being appointed for Tenant or a substantial portion of Tenant’s assets;

 

f)                                        Tenant’s
voluntarily petitioning for relief under, or otherwise seeking the benefit of,
any bankruptcy, reorganization, arrangement or insolvency law;

 

g)                                     Tenant’s
deserting, vacating or abandoning any portion of the Premises or attempting to
mortgage, pledge or otherwise encumber in any way its interest hereunder;

 

h)                                     Tenant’s
interest under this Lease being sold under execution or other legal process;

 

i)                                         Tenant’s
interest under this Lease being affected, modified or altered by any
unauthorized assignment or subletting or by operation of law;

 

15

 

j)              Any of the
goods or chattels of Tenant used in, or incident to, the operation of Tenant’s
business at, from or in the Premises being seized, sequestered, or impounded by
virtue of, or under authority of, any legal proceeding;

 

k)             If Tenant shall
be late in the payment of any sums due hereunder as rent or additional rent two
(2) times in any twelve (12) month period;

 

l)              Tenant’s failure
to take occupancy of the Premises when same is tendered by Landlord to Tenant;
or

 

m)            Any attempted
assignment or subletting of this Lease without Landlord’s written consent.

 

In
the event Tenant vacates the Premises during the last month of the Lease Term,
Landlord may thereupon re-enter the premises for the purpose of removing and
disposing of all items left by Tenant and for the additional purpose of
restoring the Premises to the condition which existed on the date Tenant took
occupancy thereof.  Under such
circumstance, Tenant shall continue to be responsible for the payment of all
sums remaining due under the Lease for the remainder of the
Lease Term; such re-entry by the Landlord shall not affect or diminish Tenant’s
obligations and responsibilities under the Lease.  The Tenant shall reimburse Landlord for all
costs incurred by Landlord in the removal of items left by Tenant and in the
restoration of the Premises, if such removal and restoration is required under
the Lease.

 

In the event of any of the
foregoing happenings, Landlord, at its election, may exercise any one or more
of the following “options, the exercise of any of which shall not be deemed to
preclude the exercise of any others herein listed or otherwise provided or
permitted by statute or general law at the same time or in subsequent times or
actions (all of which are cumulative):

 

1.             Terminate
Tenant’s rights to possession under this Lease and re-enter and retake
possession of the Premises and relet or attempt to relet the Premises on behalf
of Tenant at such rent and under such terms and conditions as Landlord may deem
best under the circumstances for the purpose of reducing Tenant’s
liability.  Landlord shall not be deemed
to have thereby accepted a surrender of the Premises, and Tenant shall remain
fully liable for any and all Rent, Additional Rent, or other sums (no matter
how characterized) due under this Lease and for all damages suffered by
Landlord because of Tenant’s breach of any of the covenants of this Lease.

 

2.             Declare this Lease
to be terminated and ended, and re-enter upon and take possession of the
Premises whereupon all right, title and interest of Tenant in the Premises
shall end.

 

3.             Accelerate and
declare the entire remaining unpaid Rent and Additional Rent for the balance of
this Lease to be immediately due and payable forthwith, and may at once, take
legal action to recover and collect the same.

 

No
re-entry or retaking possession of the Premises by Landlord shall be construed
as an election on its part to terminate this Lease, unless a specific written
notice of such intention is given to Tenant, nor shall pursuit of any remedy
herein provided constitute a forfeiture or waiver 

 

16

 

of any Rent, Additional Rent
or other monies due to Landlord hereunder or of any damages accruing to
Landlord by reason of the violations of any of the terms, provisions and covenants
herein contained.  Landlord’s acceptance
of Rent or Additional Rent or other monies following any event of default
hereunder shall not be construed as Landlord’s waiver of such event of
default.  No forbearance by Landlord of
action upon any violation or breach of any of the terms, provisions, and
covenants herein contained shall he deemed or construed to constitute a waiver
of the terms, provisions, and covenants herein contained.  Forbearance by Landlord to enforce one or
more of the remedies herein provided upon an event of default shall not be
deemed or construed to constitute a waiver of any other violation or default.  Legal actions to recover for loss or damage
that Landlord may suffer by reason of termination of this Lease or the
deficiency from any reletting as provided for above shall include the expense
of repossession or reletting and any repairs or remodeling undertaken by
Landlord following repossession.

 

THE PARTIES HERETO SHALL,
AND THEY HEREBY DO, WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR
COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON
ACCOUNT OF ANY MATTERS WHATSOEVER ARISING OUT OF, OR IN ANY WAY CONNECTED, WITH
THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE OR OCCUPANCY
OF THE PREMISES AND/OR BUILDING, AND/OR CLAIM OF LOSS, INJURY OR DAMAGE.  THE COVENANTS CONTAINED HEREIN ARE
INDEPENDENT.  In the event Landlord
commences any proceeding to enforce this Lease or the Landlord/Tenant
relationship between the parties or for nonpayment of Rent, Additional Rent or
other monies due Landlord from Tenant under this Lease, Tenant will not
interpose any counterclaim of whatever nature or description in any such
proceedings.  In the event Tenant must,
because of applicable court rules, interpose any counterclaim or other claim
against Landlord in such proceedings, Landlord and Tenant covenant and agree
that, in addition to any other lawful remedy of Landlord, upon motion of
Landlord, such counterclaim or other claim asserted by Tenant shall be severed
out of the proceedings instituted by Landlord (and, if necessary, transferred
to a court of different jurisdiction), and the proceedings instituted by
Landlord may proceed to final judgment separately and apart from and without
consolidation with or reference to the status of each counterclaim or any other
claim asserted by Tenant.

 

The parties hereto agree
that any and all suits for any and every breach of this Lease shall be
instituted and maintained only in those courts of competent jurisdiction in the
county or municipality in which the Building is located and Tenant, hereby
submits to the jurisdiction of Florida courts. 
In the event of litigation by and between the parties [or their
respective successor(s)] to enforce the terms and provisions of this Lease, the
prevailing party shall be entitled to recover from the non-prevailing party the
prevailing party’s reasonable attorney’s fees and court costs, all through
final appeal.

 

Time is of the essence of
this Lease; and in case Tenant shall fail to perform the covenants and
obligations on its part to be performed at the time fixed for the performance
of such respective covenants and obligations by the provisions of this Lease,
Landlord may declare Tenant to be in default of such Lease.

 

22.          CONTRACTUAL LANDLORD’S LIEN.  Landlord shall have, at all times, a valid
security interest to secure payment of all Rent, Additional Rent and other sums
of money 

 

17

 

becoming
due hereunder from Tenant, and to secure payment of any damages or loss which
Landlord may suffer by reason of the breach by Tenant of any covenant,
agreement or condition contained herein, upon all goods, wares, equipment,
fixtures, furniture, improvements and other personal property of Tenant
presently or which may hereinafter be situated in the Premises, and all
proceeds therefrom, and such property shall not be removed therefrom without
consent of Landlord until all arrearages in Rent and Additional Rent as well as
any and all other sums of money then due to Landlord hereunder, shall first
have been paid and discharged and all of the covenants, agreements, and
conditions hereof have been fully complied with and performed by Tenant.  In consideration of this Lease, upon the
occurrence of an event of default by Tenant, Landlord may, in addition to any
other remedies provided herein, enter upon the Premises and take possession of
any and all goods, wares, equipment, fixtures, furniture, improvements, and
other personal property of Tenant situated on or in the Premises, without
liability for trespass or conversion, and sell the same at public or private
sale, with or without having such property at the sale, after giving Tenant
reasonable notice of the time and place of any public sale or of the time after
which any private sale is to be made, at which sale Landlord or its assigns may
purchase unless otherwise prohibited by law. 
Unless otherwise provided by law, and without intending to exclude any other
manner of giving Tenant reasonable notice, the requirement of reasonable notice
shall be met if such notice is given in the manner prescribed in Item 37 dealing with “Notices” in this Lease at least
five (5) days before the time of sale. 
The proceeds from any such disposition, less any and all expenses
connected with the taking of possession, holding and selling of the property
(including reasonable attorney’s fees and other expenses), shall be applied as
a credit against the indebtedness secured by the security interest granted in
this Item 22.  Any surplus shall be paid to Tenant or as
otherwise required by law, and Tenant shall pay any deficiencies
forthwith.  Upon request by Landlord,
Tenant agrees to execute and deliver to Landlord a financing statement in form
sufficient to perfect the security interest of Landlord in the aforementioned
property and proceeds thereof under the provisions of the Uniform Commercial
Code then in force in the State of Florida. 
Notwithstanding the foregoing, the terms and conditions contained in
this Section 22 shall not be applicable to those items of Tenant’s
equipment which have been leased by Tenant from a third party, unaffiliated
with and unrelated to Tenant.

 

23.          SUBORDINATION.  In consideration of the execution of this
Lease by Landlord, Tenant accepts this Lease subject to any deeds of conveyance
and any deeds of trust, master leases, security interests or mortgages and all
renewals, modifications, extensions, spreads, consolidations and replacements
of the foregoing which might now or hereafter constitute a lien upon the
Building (or the land upon which it is situated) or improvements therein or
thereon or upon the Premises and to zoning ordinances and other Building and
fire ordinances and governmental regulations relating to the use of the
property (hereinafter collectively referred to as a “superior interest”.  Although no instrument or act on the part of
Tenant shall be necessary to effectuate such subordination, Tenant shall,
nevertheless, for the purpose of confirmation, at any time hereafter, on demand
in the form(s) prescribed by Landlord, execute any instruments, estoppel
certificates, releases or other documents that may be requested or required by
any purchaser or any holder of any superior interest for the purpose of
subjecting and subordinating this Lease to such deed of conveyance or to the
lien of any such deed of trust, master lease, security interest, mortgage, or
superior interest.  Tenant shall at any
time and from time to time upon not less than ten (10) days prior notice
from Landlord, execute, acknowledge, and deliver a written statement ratifying
this Lease and certifying a) the date upon which Tenant entered into

 

18

 

occupancy
of the Premises, b) that Tenant is presently open and conducting business
with the public in the Premises, c) the amount of Annual Rent and that it
was payable from the date of occupancy, d) that the Lease is in full force
and effect and has not been assigned, modified, supplemented or amended in any
way, except as set forth in the statement, and that neither party is in default
thereunder, e) that the Lease represents the entire agreement between the
parties as to this leasing, f) the date upon which the Term of the lease
expires, g) that all conditions under the Lease to be performed by
Landlord have been satisfied, including but without limitation, all co-tenancy
requirements under the Lease, h) that all required contributions by
Landlord to Tenant on account of Landlord’s improvements have been received,
i) that on the date of the statement there are no existing defenses or
offsets which Tenant has against the enforcement of the Lease by Landlord,
j) that no Rent has been paid in advance and no security has been deposited
with Landlord except as noted in the statement, k) stating the most recent
date through which Rent has been paid, and l) any other information
reasonably requested.  Any such statement
may be relied upon by any prospective transferee or encumbrancer of all or any
portion of the Building, or any assignee of any such persons.  If Tenant fails to deliver such statement
within ten (10) days, Tenant shall be deemed to have acknowledged that
this Lease is in full force and effect, without modifications except as may be
represented by Landlord, and that there are no uncured defaults in Landlord’s
performance.

 

Landlord
shall at any time and from time to time upon not less than ten (10) days
prior notice from Tenant, execute, acknowledge, and deliver a written statement
ratifying this Lease and certify a) the amount of Annual Rent and that it
was payable from the date of occupancy, b) that the Lease is in full force
and effect and has not been assigned, modified, supplemented or amended in any
way, except as set form in the statement, and that neither party is in default
thereunder, c) that the Lease represents the entire agreement between the parties as
to this leasing, d) the date upon which the Term of the Lease expires,
e) that all conditions under the Lease to be performed by Tenant have been
satisfied, including but without limitation, all co-tenancy requirements under
the Lease, f) that all required contributions by Tenant to Landlord on
account of Tenant’s improvements have been received, g) stating the most
recent date through which Rent has been paid, and f) any other information
reasonably requested.

 

24.          QUIET ENJOYMENT.  Provided Tenant has fully, duly and timely
performed all of the terms, covenants, agreements and conditions of this Lease
on its part to be performed, including the payment of Rent, Additional Rent and
all other sums due hereunder, Tenant shall peaceably and quietly hold and enjoy
the Premises, except as described in Item 23
above, for the Term (as may be extended) herein described, subject to the
provisions and conditions of this Lease.

 

25.          SECURITY DEPOSIT.  Upon Tenant’s execution of this Lease, Tenant
shall pay a total of Sixty-Nine Thousand Nine Hundred Seventeen Dollars and
67/100 ($69,917.67) as a security deposit for the performance by Tenant of all
the terms, covenants and conditions of this Lease upon Tenant’s part to be
performed.  In addition thereto, Tenant
shall provide Landlord with an irrevocable Letter of Credit in the amount of
Fifty Thousand Dollars ($50,000.00) to further secure Tenant’s performance
under the terms of this Lease Agreement, to be issued by a financial
institution approved by Landlord. 
Accordingly, upon commencement of the Lease, Landlord shall be secured
in the total amount of One Hundred Nineteen Thousand Nine Hundred Seventeen
Dollars and 67/100 ($119,917.67) for Tenant’s performance under the terms of
this Lease Agreement.  Provided that no
event of default exists upon the part of Tenant, within thirty

 

19

 

(30)
days following each annual anniversary of the commencement of Tenant’s Lease
term, Landlord shall reduce the security so held by the amount of
$14,285.71:  Such reduction shall be
made, first by annually reducing the amount of Tenant’s Letter of Credit and,
thereafter, once the amount of the Letter of Credit has been fully exhausted,
by annually making partial refunds to Tenant of the cash portion of Tenant’s
security deposit, it being the intention of the parties that the total amount
of security held by Landlord shall lessen annually by the amount of $14,285.71
(provided no event of default exists on the part of Tenant).  Landlord shall have no obligation to
segregate such security deposit from any other funds of Landlord, and interest
earned on such security deposit, if any, shall belong to Landlord.  Security deposits shall not be considered
advance payments of Rent or a measure of Landlord’s damages, in the case of a
default by Tenant.  The security deposit
shall be returned to Tenant within thirty (30) days after the Expiration Date,
provided Tenant has fully performed its obligations hereunder.  Regardless of any permitted assignment of
this Lease by Tenant, Landlord may return the security deposit to the original
Tenant in the absence of evidence satisfactory to Landlord of an assignment of
the right to receive the security deposit or the balance thereof, which shall
satisfy in full Landlord’s obligation to return the security deposit.  Landlord shall have the right to apply any
part of said security deposit to cure any default of Tenant and if Landlord
does so, Tenant shall upon demand deposit with the Landlord the amount so
applied so that Landlord shall have the full security deposit on deposit at all
times during the Term of this Lease.  In
the event of a sale or lease of the Building subject to this Lease, Landlord
shall transfer the security deposit to the Purchaser or lessee, and Landlord
shall thereupon be released from all liability for the return of such security
deposit and Tenant shall look solely to the successor Landlord for the return
of the security deposit.  This provision
shall apply to every transfer or assignment made of the security deposit to a
successor Landlord.  The security deposit
shall not be assigned or encumbered by Tenant without the prior written consent
of Landlord and any such unapproved assignment or encumbrance shall be void.

 

26.          MECHANIC’S LIENS.  Tenant is prohibited from making, and agrees
not to make, alterations in the Premises, except as permitted by Item 13, and Tenant shall not permit any mechanic’s
lien or liens to be placed upon the Premises or the Building or improvements
thereon during the Term (as may be extended) hereof caused by or resulting from
any work performed, materials furnished or obligation incurred by or at the
request of Tenant, and in the case of the filing of any such lien, Tenant will
promptly pay or statutorily bond same. 
If default in payment or statutory bonding thereof shall continue for ten
(10) days after written notice thereof from Landlord to Tenant, Landlord
shall have the right and privilege, at Landlord’s option, of paying the same or
any portion thereof without inquiry as to the validity thereof, and any amounts
so paid, including expenses, interest, and attorney’s fees, shall be so much
additional indebtedness hereunder due from Tenant to Landlord and shall be
repaid to Landlord immediately on rendition of a bill therefore, together with
interest per annum at the maximum rate permitted by law until repaid, and if
not so paid within ten (10) days of the rendition of such bill, shall
constitute default under Item 21
hereof.

 

The interest of Landlord
shall not be subject to liens for improvements made by Tenant in or to the
Premises or the Building.  Tenant shall
notify every contractor making such improvements of the provision set forth in
the immediately preceding sentence of this paragraph.  The parties agree, should Landlord so
request, to execute, acknowledge and deliver without charge to the other a
Memorandum of Lease in recordable form containing a confirmation that

 

20

 

the
interest of Landlord (as well as those parties holding interests superior to,
or inferior to, Landlord) shall not be subject to liens for improvements made
by Tenant to the Premises or the Building.

 

27.          FORCE MAJEURE.  Whenever a period of time is herein
prescribed for action to be taken by Landlord, Landlord shall not be liable or
responsible for, and there shall be excluded from the computation for any such
period of time, any delays due to strikes, riots, acts of God, shortages of
labor or material, theft, crime, fire, public enemy, injunction, insurrection,
court order, requisition of governmental body or authority, war, governmental
laws, regulations or restrictions or any other causes of any kind whatsoever
which are beyond the absolute control of Landlord.

 

28.          SEVERABILITY.  If any clause or provision of this Lease is
illegal, invalid or unenforceable under present or future laws effective during
the Term (as may be extended) of this Lease, then and in that event, it is the
intention of the parties hereto that the remainder of this Lease shall not be
affected thereby.

 

29.          HOLDING OVER.  The failure of Tenant to surrender the
Premises on the date provided herein for the expiration of the Term (as may
have been theretofore extended) of this Lease (or at the time this Lease may be
terminated otherwise by Landlord), and the subsequent holding over by Tenant,
with or without the consent of Landlord, shall result in the creation of a
tenancy at will at 150% of the Rent payable at the time of the date provided
herein for the expiration of this Lease or at the time this Lease may be
terminated otherwise by Landlord.  This
provision does not give Tenant any right to hold over at the expiration of the
Term (as may have been heretofore extended) of this Lease, and shall not be
deemed, the parties agree, to be a renewal of the Lease Term (as may have been
heretofore extended), either by operation of law or otherwise.

 

30.          RELOCATION.  SECTION INTENTIONALLY OMITTED.

 

31.          RENT SEPARATE COVENANT.  Tenant shall not for any reason withhold or
reduce Tenant’s required payments of Rent, Additional Rent and other charges
provided in the Lease, it being expressly understood and agreed contractually
by the parties that the payment of Rent and Additional Rent is a contractual
covenant by Tenant that is independent of the other covenants of the parties
under this Lease.

 

32.          JOINT AND SEVERAL LIABILITY;
CHANGE IN BUSINESS FORM.  If two or more individuals, corporations,
partnerships, or other business associations (or any combination of two or more
thereof) shall sign this Lease as Tenant, the liability of each such
individual, corporation, partnership or other business association to pay Rent
and Additional Rent and perform all other obligations hereunder shall be deemed
to be joint and several.  In like manner,
if Tenant is a partnership or other business association, the members of which
are, by virtue of statute or general law, subject to personal liability, the
liability of each such member shall be joint and several.  Tenant may not and shall not change or
convert its business form and/or composition in any way whatsoever without Landlord’s
prior, written and solely discretionary consent.

 

21

 

33.          ABSENCE OF OPTION.  The submission of this Lease for examination
does not constitute a reservation of or option for the Premises, and this Lease
becomes effective only upon execution and delivery thereof by Landlord.

 

34.          CORPORATE TENANCY.  If Tenant is a corporation, the undersigned
officer of Tenant hereby warrants and certifies to Landlord that Tenant is a
corporation in good standing and is authorized to do business in the State of
Florida.  The undersigned officer of
Tenant hereby further warrants and certifies to Landlord that he or she, as
such officer, is authorized and empowered to bind the corporation to the terms
of this Lease by his or her signature thereto. 
Landlord, before it accepts and delivers this Lease, may require Tenant
to supply it with a certified copy of the corporate resolution authorizing the
execution of this Lease by Tenant.  If
Tenant is a corporation (other than one whose shares are regularly and publicly
traded on a recognized stock exchange), Tenant represents that the ownership
and power to vote its entire outstanding capital stock belongs to and is vested
in the officer or officers executing this Lease or members of his, her or their
immediate family.  If there shall occur
any change in the ownership of and/or power to vote the majority of the
outstanding capital stock of Tenant, whether such change of ownership is by
sale, assignment, bequest, inheritance, operation of law or otherwise, without
the prior written discretionary consent of Landlord, then Landlord shall have
the option to terminate this Lease upon thirty (30) days’ written notice to
Tenant so stating; furthermore, Tenant shall have an affirmative obligation to
notify immediately Landlord of any such change.

 

35.          BROKERAGE COMMISSION.  C.B. Richard Ellis (“CBRE”) has
represented Landlord and Carter Associates in cooperation with Scheer Partners
(collectively “Tenant’s Advisors”) has represented Tenant in connection with
this Lease.  CBRE and Tenant’s Advisors
shall be paid a commission by Landlord pursuant to the terms of a separate
agreement.  Tenant warrants that there
are no other claims aside from those stated above for broker’s commissions or
finder’s fees in connection with its execution of this Lease and agrees to
indemnify and save Landlord completely harmless from any liability that may
arise from such claim, including reasonable attorney’s fees.

 

36.          LANDLORD’S DEFAULT.  Landlord shall in no event be charged with
default in the performance of any of its obligations under this Lease unless
and until Landlord shall have failed to perform such obligations within ten (10) days
(or within such additional time as is reasonably required to remedy any such
default) after written notice to Landlord by Tenant properly specifying and
detailing the particulars of wherein and whereby Tenant claims Landlord has
failed to perform any such obligations. 
If the holder of record of the first mortgage covering the Premises
shall have given prior written notice to Tenant that it is the holder of such
first mortgage and such notice includes the address at which notices to such
mortgagee are to be sent, then Tenant shall give such mortgagees notice
simultaneously with any notice given to Landlord to correct any default of
Landlord as herein above provided.  Such
mortgagee shall have the right within thirty (30) days (or within such
additional time as is reasonably required to correct any such default) after
receipt of such notice to correct or remedy such default before Tenant may take
any action under this Lease by reason of such default.  Any notice of default given Landlord by
Tenant shall be null and void unless simultaneous notice has been given by
Tenant to said first mortgagee.  It is
specifically understood and agreed, anything in this Lease to the contrary
notwithstanding, that there shall be no personal liability on Landlord (nor on
Landlord’s officers,

 

22

 

principals,
agents and employees) with respect to any of the covenants, conditions or
provisions of this Lease; in the event of a breach or default by Landlord of
any of its obligations under this Lease; Tenant shall look solely to the equity
of Landlord in the Building for the satisfaction of Tenant’s remedies, and in
absolutely no event shall Landlord be liable for prospective profits or
special, indirect, or consequential damages. 
Likewise, anything in this Lease to the contrary notwithstanding, in no
event shall Tenant have the right to terminate this Lease as a result of any
default by Landlord, but rather, Tenant’s remedies against Landlord shall be
solely limited to a claim for damages and/or a claim for injunction.

 

37.          NOTICES.  Any notice, statement, demand, or other
communication required or permitted to be given or made by either party to the
other, pursuant to this Lease or pursuant to any applicable law, shall be
deemed to have been properly given and made if sent by either registered or
certified mail, return receipt requested, overnight delivery by a reputable
delivery carrier or hand delivery, addressed to the other party at the address
hereinbelow set forth or at such other address as may hereafter be designated
by either party by notice to the other and shall be deemed to have been given
or made on the day so mailed.  Either
party may, by notice given as aforesaid, designate a different address or
addresses for notices, statements, demands, or other communications intended
for it.

 

	
  LANDLORD:

  	
   

  	
  EDGEWOOD GENERAL
  PARTNERSHIP

  1408 North Westshore
  Boulevard, Suite 150

  Tampa, Florida 33607

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EDGEWOOD GENERAL
  PARTNERSHIP

  c/o Mr. David H.
  Simon, Esq.

  924 Westwood Boulevard,
  Suite 600

  Los Angeles, California
  90024

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
   

  	
  Metastorm, Inc.

  500 East Pratt Street,
  Suite 1250

  Baltimore, Maryland 21202

  
	
   

  	
   

  	
   

  
	
  cc:

  	
   

  	
  Edward S.
  Evans, III, Esq.

  Venable LLP

  Two Hopkins Plaza,
  Suite 1800

  Baltimore, Maryland 21201

  

 

38.          INSURANCE.

 

a)                                      Tenant shall,
on or before the earlier of the Commencement Date or the date on which Tenant
first enters the Premises for any purpose, at its sole cost and expense, obtain
and keep in full force and effect at all times thereafter the following
insurance coverages with respect to the Premises:

 

23

 

i)                                         Insurance
against loss or liability in connection with bodily injury, death or property
damage or destruction, occurring on or about the Premises  under one or more policies
of commercial general liability insurance. 
Each such policy shall specifically include the Premises and all areas,
including sidewalks and corridors, adjoining or appurtenant to the
Premises.  The total insurance coverage
shall be in an initial amount, combined single limit, of no less than
$4,000,000.00, which coverage may be effected with umbrella coverage.  Each such policy must be in a form acceptable
to Landlord and shall include the broad form comprehensive general liability
endorsement or equivalent, and, in addition, shall provide at least the
following extensions and endorsements: (a) coverage for explosion,
collapse, and underground damage hazards, where applicable; (b) personal
injury coverage to include liability assumed under any contract; and (c) a
blanket additional insured extension or endorsement or equivalent providing
coverage for unspecified additional parties as their interest may appear with
the insured.

 

ii)             Fire and lightning, extended coverage, sprinkler damage, theft,
vandalism and malicious mischief, all risks, and flood insurance (if required
by Landlord, or any mortgagee of the Building, or any governmental authority)
in an amount adequate to cover 100% of the replacement
costs, without co-insurance, of Tenant’s Property.

 

iii)            Workers
compensation insurance in the maximum amount permitted by the law of the State
in which the Premises are located and employer’s liability coverage of
$1,000,000.00 per occurrence and covering all persons employed, directly or
indirectly, in connection with Tenant’s business or Tenant Improvements or any
future Alterations.

 

(iv)                              Business income
and extra expense insurance on an actual loss sustained basis, with limits of
at least $500,000.

 

(v)                                 Such other
insurance as may be carried on the Premises and Tenant’s operation thereof, as
may be reasonably required by the Landlord.

 

b)                                     Except for work
to be performed by Landlord, before any Alterations are undertaken by or on
behalf of Tenant, Tenant shall obtain and maintain, at its expense, or Tenant
shall require any contractor performing work on the Premises to obtain and
maintain, at no expense to Landlord, in addition to workers compensation
insurance as required by the State of Florida, all risk builder’s risk
insurance in the amount of the replacement cost of the applicable Alterations
(or such other amount reasonably required by Landlord) and commercial general
liability insurance on an occurrence basis with a minimum combined single limit
of $4,000,000.00; such limit may be accomplished by means of an umbrella policy
and such other insurance that is required by Landlord.  Such coverages shall not limit the liability
of Tenant hereunder.  The contractor’s
commercial general liability insurance shall cover claims arising out of (i) the
general

 

24

 

contractor’s
operations, (ii) acts of independent contractors, (iii) products/completed
operations (with broad form property damage),  (iv) liability assumed under contract
(on a broad form property damage basis), (v) liability assumed under
contract (on a broad form blanket basis), (vi) explosion, collapse, and
underground damage hazards, where applicable, and (vii) owned/non-owned/hired
vehicles.

 

c)                                      All insurance
policies shall be (i) in form reasonably satisfactory to Landlord; and (ii) written
insurance companies reasonably satisfactory to Landlord and shall each have and
maintain throughout Tenant’s Lease term a rating of no less than A+VII by A.M. Best
Company, and authorized to engage in the business of insurance in the state in
which the Premises are located.  All
insurance policies shall name Landlord and Landlord’s directors, officers,
partners, agents, employees, and managing agent as additional insureds and loss
payees as their interests may appear and shall provide that they may not be
terminated or modified in any way which would materially decrease the protection
afforded Landlord under this Lease without thirty (30) days advance written
notice to Landlord.  The minimum limits
of insurance specified in this section shall in no way limit or diminish Tenant’s
liability under this Lease.  Tenant shall
furnish to Landlord, not less than fifteen (15) days prior to the date such
insurance is first required to be carried by Tenant, and thereafter at least
fifteen (15) days prior to the expiration of such policy, a certificates of
insurance prepared by Tenant’s insurance carrier, and such other evidence of
coverages as Landlord may reasonably request, and evidence of payment of all
premiums and other expenses owed in connection therewith.  No policy shall be cancelable or be subject
to reduction of coverage except after thirty (30) days prior written notice to
Landlord.  Upon Tenant’s default
obtaining or delivering the policy for any such insurance or Tenant’s failure
to pay the charges therefore, Landlord may, at its option, on or after the
fifth (5th) day after written notice thereof is given to Tenant,
procure or pay the charges for any such policy or policies and the total cost
and expense (including attorney’s fees) thereof shall be immediately paid by
Tenant to Landlord as Additional Rent upon receipt of a bill therefore.

 

d)                                     Tenant shall
not conduct or permit to be conducted any activity, or place any equipment,
materials or other items in, on or about the Premises or the Building, which
will in any way increase the rate of fire or liability or casualty insurance on
the Building.  Should Tenant fail to
comply with the foregoing covenant on its part to be performed, Tenant shall
reimburse Landlord for such increased amount upon written demand therefore from
Landlord, the same to be considered Additional Rent payable hereunder.

 

e)                                      Tenant hereby
waives and releases Landlord of and from any and all liabilities, claims and
losses for which Landlord is or may be held liable to the extent Tenant
receives or is entitled to receive insurance proceeds on account thereof.

 

39.          RECORDING.  This Lease shall not be recorded without
Landlord’s prior written discretionary consent.

 

25

 

40.          STATUTORILY MANDATED NOTIFICATION.  As required by F.S. 404.056(8), Landlord
hereby notifies Tenant as follows:  “RADON
GAS:  Radon is a naturally occurring
radioactive gas that, when it has accumulated in a Building in sufficient
quantities, may present health risks to persons who are exposed to it over
time.  Levels of radon that exceed
federal and state guidelines have been found in Buildings in Florida.  Additional information regarding radon and
radon testing may be obtained from your county public health unit.”

 

41.          NON-DISCLOSURE.  Tenant agrees that it will not divulge or
disclose to third parties (other than consultants and advisors of Tenant) the
terms, provisions and conditions of this Lease. 
Tenant’s breach of this Item 41
shall constitute a Default under Item 21 of
this Lease, no curative notice to Tenant from Landlord being required.

 

42.          HAZARDOUS MATERIALS.  Tenant shall not cause or permit any
Hazardous Materials (as hereinafter defined) to be brought upon, kept or used
in or about the Premises or the Building by Tenant, its agents, principals,
employees, assigns, subtenants, contractors, consultants or invitees without
prior written consent of Landlord, which consent may be withheld for any reason
whatsoever or for no reason at all, except for storage, handling and use of
reasonable quantities and types of office supplies in the Premises in the
ordinary course and in the prudent conduct of Tenant’s business in the
Premises.  If Tenant breaches the
obligations stated in the immediately preceding sentence, or if the presence of
Hazardous Material on the Premises or around the Building caused or permitted
by Tenant (or the aforesaid others) results in contamination of the Premises or
the Building or the surrounding area(s), or if contamination of the Premises or
the Building or the surrounding area(s) by Hazardous Material otherwise
occurs for which Tenant is legally, actually or factually liable or responsible
to Landlord (or any party claiming by, through or under Landlord) for damages,
losses, costs or expenses resulting therefrom, then Tenant shall fully and
completely indemnify, defend and hold harmless Landlord (or any party claiming
by, through or under Landlord) from any and all claims, judgments, damages,
penalties, fines, costs, liabilities or losses [including, without
limitation:  (i) diminution in the
value of the Premises and/or the Building and/or the land on which the Building
is located and/or any adjoining area(s) which Landlord owns or in which it
holds a property interest; (ii) damages for the loss or restriction on use
of rentable or usable space of any amenity of the Premise, the Building or the
land on which the Building is located; (iii) damages arising from any
adverse impact on marketing of space; and (iv) any sums paid in settlement
of claims, attorney’s fees, consultants’ fees and expert fees] which arise
during or after the Term of this Lease, as may be extended, as a consequence of
such contamination.  This indemnification
of Landlord by Tenant includes, without limitations, costs incurred in
connection with any investigation of site conditions or any clean-up, remedial,
removal or restoration work required by any federal, state or local
governmental agency or political subdivision because of Hazardous Material
present in the soil or ground water on or under the Premises or the Building.  Without limiting the foregoing, if the
presence of any Hazardous Material on, under or about the Premises, the
Building or the surrounding area(s) caused or permitted by Tenant (or the
aforesaid others) results in any contamination of the Premises, the Building or
the surrounding area(s), Tenant shall immediately take all actions at its sole
expense as are necessary or appropriate to return the Premises, the Building
and the surrounding area(s) to the condition existing prior to the
introduction of any such Hazardous Material thereto; provided that Landlord’s
prior written discretionary approval of such actions by Tenant shall be first
obtained.  The foregoing

 

26

 

obligations
and responsibilities of Tenant shall survive the expiration or earlier
termination of this Lease.

 

As used herein, the term “Hazardous
Material” means any hazardous or toxic substance, material or waste, including,
but not limited to, those substances, materials, and wastes listed in the
United Stales Department of Transportation Hazardous Materials Table (49 CFR
172.101) or by the Environmental Protection Agency as hazardous substances (40
CFR Part 302) and amendments thereto, or such substances, materials and
wastes that are or become regulated under any applicable local, state or
federal law.  “Hazardous Material”
includes any and all material or substances which are defined as “hazardous
waste”, “extremely hazardous waste” or a “hazardous substance” pursuant to
state, federal or local governmental law. 
“Hazardous Substance” includes, but is not restricted to asbestos,
polychlorobiphenyls (“PCB’s”) and petroleum.

 

Landlord and its agents
shall have the right, but not the duty, to inspect the Premises at any time and
from time to time to determine whether Tenant is complying with the terms of
this Item 42.  If Tenant is not in compliance with this Item 42, Landlord shall have the right to immediately
enter upon the Premises to remedy any contamination caused by Tenant’s failure
so to comply, notwithstanding any other provision of this Lease.  Landlord shall use its best efforts to
minimize interference with Tenant’s business, but shall not be liable for any
interference caused thereby.

 

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

 

Any non-compliance by Tenant
with its duties, responsibilities and obligations under this Item 42 shall be an “automatic” (no notice of any
nature from Landlord to Tenant being required) default of this Lease (see Item 21).

 

27

 

43.          NOTICE TO OWNERS, PROSPECTIVE
TENANTS AND BUYERS OF REAL PROPERTY REGARDING “THE AMERICANS WITH DISABILITIES
ACT”.  Please be
advised that a Tenant of real property may be subject to the Americans With
Disabilities Act (the ADA), a Federal law codified at 42 USC Section 12.101
et seq.  Among other requirements of the
ADA that could apply to your property, Title III of the ADA requires
Tenants of “public accommodations” to remove barriers to allow access by
disabled persons and provide auxiliary aids and services for hearing, vision or
speech impaired persons by January 26, 1992.  The regulations under Title III of the
ADA are codified at 28 CFR Part 36.

 

We recommend that you and
your attorney review the ADA and the regulations, and, if appropriate, your
lease, to determine if this law could apply to you, and the nature of the
requirements.  These are legal
issues.  You are responsible for
conducting your own independent investigation of these issues.  The Landlord cannot give you legal advice on
these issues.

 

44.          INTERLINEATION.  Whenever in this Lease any printed portion
has been stricken, whether or not any relative provision has been added, this
Lease shall be construed as if the material so stricken was never included in
this Lease and no inference shall be drawn from the stricken material which
would be inconsistent in any way with the construction or interpretation which
would be appropriate if such material were never contained in this Lease.

 

45.          AMENDMENTS.  This Lease contains the entire agreement
between the parties hereto and may not be altered, changed or amended, except
by written instrument signed by both parties hereto.  No provision of this Lease shall be deemed to
have been waived by Landlord unless such waiver is in writing signed by
Landlord and addressed to Tenant, nor shall any custom or practice which may
grow up between the parties in the administration of the provisions hereof be
construed to waive or lessen the right of Landlord to insist upon the
performance by Tenant in strict accordance with the terms hereof.  The terms, provisions, covenants, and
conditions contained in this Lease shall apply to, inure to the benefit of, and
be binding upon the parties hereto, and upon their respective successors in
interest and legal representative, except as otherwise herein expressly
provided.

 

The parties each acknowledge
that they have thoroughly read and understand this Lease (to include its
Exhibits and attachments) in its entirety, that they are completely familiar
with each, every, any and all of the terms, covenants, provisions and
conditions set forth therein and that there are no other representations,
promises, covenants, assurances, conditions, statements, understandings,
warranties or agreements (collectively, “Representations”) concerning this
Lease which do not appear in writing therein. 
This Lease supersedes and revokes all previous negotiations,
arrangements, letters of intent, offers to lease, lease proposals, brochures,
Representations, and information or data conveyed, whether oral or in writing,
between the parties and/or their respective representatives or any other
person(s) purporting to represent either Landlord or Tenant.  Each party acknowledges that it has not been
induced to enter into this Lease by any Representations not expressly set forth
herein.  The parties further acknowledge
that the terms and provisions contained within this Lease have been fully,
freely and fairly negotiated by and between them.  The parties each acknowledge that they have
thoroughly read and understand this Lease (to include its Exhibits and
attachments) in its entirety, that they are completely familiar with each,
every, any and all of the terms, covenants, provisions and conditions set forth
therein and that there are no other representations, promises, 

 

28

 

covenants, assurances, conditions, statements, understandings,
warranties or agreements (collectively, “Representations”) concerning this
Lease which do not appear in writing therein. 
This Lease supersedes and revokes all previous negotiations, arrangements,
letters of intent, offers to lease, lease proposals, brochures,
Representations, and information or data conveyed, whether oral or in writing,
between the parties and/or their respective representatives or any other
person(s) purporting to represent either Landlord or Tenant.  Each party acknowledges that it has not been
induced to enter into this Lease by any Representations not expressly set forth
herein.  The parties further acknowledge
that the terms and provisions contained within this Lease have been fully,
freely and fairly negotiated by and between them.

 

46.          TENANT WARRANTY.  Tenant warrants and represents to Landlord
that Tenant is not, and shall not become, a person or entity with whom Tenant
is restricted from doing business with under regulations of the Office of
Foreign Asset Control (“OFAC”) of the Department of the Treasury (including,
but not limited to, those named on OFAC’s Specially Designated and Blocked
Persons list) or under any statute, (including, but not limited to, the September 24,
2001 Executive Order Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism), or other
governmental action and is not and shall not engage in any dealings or
transaction or be otherwise associated with such persons or entities.

 

47.          OPTION TO RENEW.  Provided that no default is then existing or
continuing in the performance of any of the terms or covenants of this Lease,
Landlord hereby grants Tenant the option of renewing and extending the term of
this Lease for one (1) additional term of three (3) years, commencing
at midnight on the expiration of the initial term of this Lease.  In the event Tenant elects to exercise this
option as contained herein, Tenant shall give written notice to Landlord of its
election no later than nine (9) months prior to the end of the Lease
Term.  The Rent payable by Tenant to
Landlord during the renewal term shall be the rent mutually agreed upon for
said renewal term as representing the then prevailing market rate charged for
comparable space to tenants of similar size and credit standing in the
Westshore market.  In the event Tenant
and Landlord are unable to agree upon the prevailing market rate within five (5) days
after Tenant exercises this option to renew, the option herein granted shall be
deemed null and void and shall be of no further force or effect.

 

48.          RIGHT OF FIRST REFUSAL (ROFR).  Landlord grants Tenant a
one-time Right of First Refusal (‘“ROFR”) to lease any available space on the
fourth floor of Tower II (as outlined in Exhibit C) (the “ROFR Space”).  Such ROFR shall be subject and subordinate to
the rights of prior existing ROFR rightholders and to renewals, extensions
and/or expansions by tenants at any time in possession of the ROFR Space, or
any portion thereof.

 

1.             The ROFR will be subject to Tenant’s receipt
of a written notice from the Landlord that a prospective tenant has expressed
an interest in leasing the ROFR Space, or any portion thereof, Tenant shall
have five (5) business days following receipt of Landlord’s notice either
to decline leasing the ROFR Space or to exercise its ROFR, after receipt of
Landlord’s notice.  Tenant’s response
must be provided in writing.  A
declination by Tenant to exercise its ROFR, or a failure by Tenant to respond
in writing shall be deemed to constitute an irrevocable and permanent
declination and surrender of the opportunity to lease the ROFR Space.

 

29

 

2.             Should Tenant choose to exercise its ROFR
option within the five (5) business day period after receipt of the
Landlord’s written notice, the following shall apply:

 

(a)          The lease rate for the ROFR Space shall be at the greater of rental
rates being charged by Landlord in the 1408 and 1410 N. Westshore Boulevard
buildings, or the then-current rental rate stated in the Lease at the time of
the Commencement Date of Tenant’s occupancy of the ROFR Space;

 

(b)          Any tenant improvements shall be negotiated between the Landlord and
Tenant at the time Tenant exercises its ROFR option.

 

Should Tenant not respond to
Landlord’s written notice within the five (5) business day allotted
period, as required, indicating its interest in leasing the ROFR Space, or
should the Tenant notify the Landlord within such five (5) business day
allotted period, as required, notifying Landlord of its interest in leasing the
ROFR Space and, within an additional (5) day period following Tenant’s
written notification to Landlord, should Tenant and Landlord not agree upon the
terms of leasing such ROFR. Space, including, but not limited to, rental rates,
lease term, and a tenant improvement allowance, then Tenant’s Right of First
Refusal under this Lease shall irrevocably and permanently terminate and be of
no further force or effect,

 

IN
WITNESS WHEREOF, the parties, either for themselves or by and through their
undersigned, duly-authorized representatives, have executed this Lease for the
purpose therein expressed.

 

 

	
  Signed,
  sealed and delivered

  in the presence of:

  	
   

  	
  TENANT:

  METASTORM,
  INC., a Maryland corporation.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/

  	
   

  	
  By:

  	
  /s/
  Robert J. Farrell

  
	
  Witness
  1 to Tenant

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert
  J. Farrell

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/

  	
   

  	
  Title:

  	
  President/CEO

  
	
  Witness
  2 to Tenant

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LANDLORD:

  EDGEWOOD GENERAL PARTNERSHIP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/

  	
   

  	
  By:

  	
  /s/
  David Henry Simon

  
	
  Witness
  1 to Landlord

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David
  Henry Simon

  
	
  /s/

  	
   

  	
   

  	
   

  
	
  Witness
  2 to Landlord

  	
   

  	
  Title:

  	
  As
  President of Daper Tampa, Inc.

  
	
   

  	
   

  	
   

  	
  A
  General Partner of Edgewood General

  Partnership

  

 

30

 

EXHIBIT “A”

The
Premises

 

 

31

 

EXHIBIT “B”

 

Insert Work Specification/TI Budget Allowance

 

Landlord
shall provide Tenant with a $14.00 per rentable square foot Tenant Improvement
Allowance.  It is understood and agreed
between Landlord and Tenant that all tenant improvement-related costs exceeding
this allowance shall be paid for by Tenant.

 

E.M.

PHILLIPS,

INC.

 

 

GENERAL

CONTRACTOR

CGC057931

 

PROPOSAL

for

Suite 450

Metastorm

Towers at

Westshore

Tower II

 

 

	
   

  	
  7,846.00

  	
  RSF

  

 

	
  GENERAL REQUIREMENTS

  	
   

  	
  QUANTITY

  	
   

  	
  UNIT

  TYPE

  	
   

  	
  UNIT

  COST

  	
   

  	
  SUBTOTAL

  	
   

  	
  COST

  SQ. FT.

  	
   

  
	
  Dumpster fee

  	
   

  	
  4

  	
   

  	
  EA

  	
   

  	
  440.00

  	
   

  	
  1,760.00

  	
   

  	
  0.22

  	
   

  
	
  Construction
  clean-up

  	
   

  	
  6500

  	
   

  	
  SF

  	
   

  	
  0.15

  	
   

  	
  975.00

  	
   

  	
  0.12

  	
   

  
	
  Admin. and
  Insurance

  	
   

  	
  1.00

  	
   

  	
  LOT

  	
   

  	
  2550.00

  	
   

  	
  2,550.00

  	
   

  	
  0.33

  	
   

  
	
  Permit Fees

  	
   

  	
  1.00

  	
   

  	
  LOT

  	
   

  	
  1750.00

  	
   

  	
  1,750.00

  	
   

  	
  0.22

  	
   

  
	
  Supervision

  	
   

  	
  8.00

  	
   

  	
  WKS

  	
   

  	
  650.00

  	
   

  	
  5,200.00

  	
   

  	
  0.66

  	
   

  
	
  GENERAL
  REQUIREMENTS TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  12,235.00

  	
   

  	
  1.56

  	
   

  

 

	
  DRYWALL & METAL STUDS

  	
   

  	
  QUANTITY

  	
   

  	
  UNIT

  TYPE

  	
   

  	
  UNIT

  COST

  	
   

  	
  SUBTOTAL

  	
   

  	
  COST

  SQ. FT.

  	
   

  
	
  Construct new
  walls floor to ceiling

  	
   

  	
  529.00

  	
   

  	
  LF

  	
   

  	
  45.00

  	
   

  	
  23,805.00

  	
   

  	
  3.03

  	
   

  
	
  Sound Batt in
  Training and Conference RM

  	
   

  	
  1,328.00

  	
   

  	
  SF

  	
   

  	
  0.35

  	
   

  	
  464.80

  	
   

  	
  0.06

  	
   

  
	
  Blocking for
  cabinets

  	
   

  	
  1.00

  	
   

  	
  LOT

  	
   

  	
  150.00

  	
   

  	
  150.00

  	
   

  	
  0.02

  	
   

  
	
  DRYWALL &
  METAL STUDS TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  24,419.80

  	
   

  	
  3.11

  	
   

  

 

32

 

	
  FLOOR COVERING

  	
   

  	
  QUANTITY

  	
   

  	
  UNIT

  TYPE

  	
   

  	
  UNIT

  COST

  	
   

  	
  SUBTOTAL

  	
   

  	
  COST

  SQ. FT.

  	
   

  
	
  Install new
  carpet throughout

  	
   

  	
  802.00

  	
   

  	
  YDS

  	
   

  	
  15.00

  	
   

  	
  12,030.00

  	
   

  	
  1.53

  	
   

  
	
  Install VCT in
  Break Room

  	
   

  	
  330.00

  	
   

  	
  SF

  	
   

  	
  1.45

  	
   

  	
  478.50

  	
   

  	
  0.06

  	
   

  
	
  Floor prep

  	
   

  	
  1.00

  	
   

  	
  LOT

  	
   

  	
  750.00

  	
   

  	
  750.00

  	
   

  	
  0.10

  	
   

  
	
  Provide and
  install 4” cove base

  	
   

  	
  1,280.00

  	
   

  	
  LF

  	
   

  	
  1.35

  	
   

  	
  1,728.00

  	
   

  	
  0.22

  	
   

  
	
  FLOOR
  COVERING TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  14,986.50

  	
   

  	
  1.91

  	
   

  

 

	
  ELECTRICAL

  	
   

  	
  QUANTITY

  	
   

  	
  UNIT

  TYPE

  	
   

  	
  UNIT

  COST

  	
   

  	
  SUBTOTAL

  	
   

  	
  COST

  SQ. FT.

  	
   

  
	
  Duplex
  receptacles

  	
   

  	
  72.00

  	
   

  	
  EA

  	
   

  	
  85.00

  	
   

  	
  6,120.00

  	
   

  	
  0.78

  	
   

  
	
  GFI duplex
  receptacles

  	
   

  	
  1.00

  	
   

  	
  EA

  	
   

  	
  85.00

  	
   

  	
  85.00

  	
   

  	
  0.01

  	
   

  
	
  Power poles

  	
   

  	
  4.00

  	
   

  	
  EA

  	
   

  	
  180.00

  	
   

  	
  720.00

  	
   

  	
  0.09

  	
   

  
	
  Cubicle hook-up

  	
   

  	
  1.00

  	
   

  	
  EA

  	
   

  	
  1900.00

  	
   

  	
  1,900.00

  	
   

  	
  0.24

  	
   

  
	
  New 20 amp
  circuits

  	
   

  	
  14.00

  	
   

  	
  EA

  	
   

  	
  200.00

  	
   

  	
  2,800.00

  	
   

  	
  0.36

  	
   

  
	
  New light
  fixtures

  	
   

  	
  20.00

  	
   

  	
  EA

  	
   

  	
  125.00

  	
   

  	
  2,500.00

  	
   

  	
  0.32

  	
   

  
	
  Provide and
  install emergency light fixtures

  	
   

  	
  8.00

  	
   

  	
  EA

  	
   

  	
  165.00

  	
   

  	
  1,320.00

  	
   

  	
  0.17

  	
   

  
	
  Provide and
  install new exit light fixtures

  	
   

  	
  6.00

  	
   

  	
  EA

  	
   

  	
  225.00

  	
   

  	
  1,350.00

  	
   

  	
  0.17

  	
   

  
	
  Dedicated
  circuits

  	
   

  	
  4.00

  	
   

  	
  EA

  	
   

  	
  185.00

  	
   

  	
  740.00

  	
   

  	
  0.09

  	
   

  
	
  Three way
  switches

  	
   

  	
  6.00

  	
   

  	
  EA

  	
   

  	
  85.00

  	
   

  	
  510.00

  	
   

  	
  0.07

  	
   

  
	
  Fire alarm stub
  outs

  	
   

  	
  8.00

  	
   

  	
  EA

  	
   

  	
  45.00

  	
   

  	
  360.00

  	
   

  	
  0.05

  	
   

  
	
  Ceiling support

  	
   

  	
  1.00

  	
   

  	
  LOT

  	
   

  	
  850.00

  	
   

  	
  850.00

  	
   

  	
  0.11

  	
   

  
	
  Four way
  switches

  	
   

  	
  2.00

  	
   

  	
  EA

  	
   

  	
  105.00

  	
   

  	
  210.00

  	
   

  	
  0.03

  	
   

  
	
  Single pole
  switches

  	
   

  	
  16.00

  	
   

  	
  EA

  	
   

  	
  65.00

  	
   

  	
  1,040.00

  	
   

  	
  0.13

  	
   

  
	
  Telephone/data
  outlets

  	
   

  	
  16.00

  	
   

  	
  EA

  	
   

  	
  45.00

  	
   

  	
  720.00

  	
   

  	
  0.09

  	
   

  
	
  ELECTRICAL
  TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  21,225.00

  	
   

  	
  2.71

  	
   

  

 

	
  PAINTING & WALL COVERING

  	
   

  	
  QUANTITY

  	
   

  	
  UNIT

  TYPE

  	
   

  	
  UNIT

  COST

  	
   

  	
  SUBTOTAL

  	
   

  	
  COST

  SQ. FT.

  	
   

  
	
  Paint interior
  walls 2 coats latex

  	
   

  	
  11,520.00

  	
   

  	
  SF

  	
   

  	
  0.55

  	
   

  	
  6,336.00

  	
   

  	
  0.81

  	
   

  
	
  Paint door
  frames

  	
   

  	
  20.00

  	
   

  	
  EA

  	
   

  	
  40.00

  	
   

  	
  800.00

  	
   

  	
  0.10

  	
   

  
	
  PAINTING &
  WALL COVERING TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,136.00

  	
   

  	
  0.91

  	
   

  

 

	
  MECHANICAL (HVAC)

  	
   

  	
  QUANTITY

  	
   

  	
  UNIT

  TYPE

  	
   

  	
  UNIT

  COST

  	
   

  	
  SUBTOTAL

  	
   

  	
  COST

  SQ. FT.

  	
   

  
	
  Install new
  supply diffusers and ducts

  	
   

  	
  18

  	
   

  	
  EA

  	
   

  	
  225.00

  	
   

  	
  4,050.00

  	
   

  	
  0.52

  	
   

  
	
  Install return
  air grills

  	
   

  	
  20

  	
   

  	
  EA

  	
   

  	
  35.00

  	
   

  	
  700.00

  	
   

  	
  0.09

  	
   

  
	
  MECHANICAL
  (HVAC) TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,750.00

  	
   

  	
  0.61

  	
   

  
	
  Mechanical doesn’t include a supplemental unit in
  server room.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

33

 

	
  DOOR FRAMES AND HARDWARE

  	
   

  	
  QUANTITY

  	
   

  	
  UNIT

  TYPE

  	
   

  	
  UNIT

  COST

  	
   

  	
  SUBTOTAL

  	
   

  	
  COST

  SQ. FT.

  	
   

  
	
  Door hardware
  package

  	
   

  	
  15

  	
   

  	
  EA

  	
   

  	
  110.00

  	
   

  	
  1,650.00

  	
   

  	
  0.21

  	
   

  
	
  3070 Hollow
  metal door frames

  	
   

  	
  15

  	
   

  	
  EA

  	
   

  	
  115.00

  	
   

  	
  1,725.00

  	
   

  	
  0.22

  	
   

  
	
  3070 Prefinished
  doors

  	
   

  	
  15

  	
   

  	
  EA

  	
   

  	
  345.00

  	
   

  	
  5,175.00

  	
   

  	
  0.66

  	
   

  
	
  Labor to install
  doors, frames and hardware

  	
   

  	
  15

  	
   

  	
  EA

  	
   

  	
  85.00

  	
   

  	
  1,275.00

  	
   

  	
  0.16

  	
   

  
	
  Door hinges

  	
   

  	
  45

  	
   

  	
  EA

  	
   

  	
  15.00

  	
   

  	
  675.00

  	
   

  	
  0.09

  	
   

  
	
  Door stops

  	
   

  	
  15

  	
   

  	
  EA

  	
   

  	
  15.00

  	
   

  	
  225.00

  	
   

  	
  0.03

  	
   

  
	
  DOOR
  FRAMES AND HARDWARE

  TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10,725.00

  	
   

  	
  1.37

  	
   

  

 

	
  FIRE PROTECTION

  	
   

  	
  QUANTITY

  	
   

  	
  UNIT

  TYPE

  	
   

  	
  UNIT

  COST

  	
   

  	
  SUBTOTAL

  	
   

  	
  COST

  SQ. FT.

  	
   

  
	
  Relocate
  sprinkler heads

  	
   

  	
  25

  	
   

  	
  EA

  	
   

  	
  125.00

  	
   

  	
  3,125.00

  	
   

  	
  0.40

  	
   

  
	
  Install fire
  horns and strobes

  	
   

  	
  8

  	
   

  	
  EA

  	
   

  	
  565.00

  	
   

  	
  4,520.00

  	
   

  	
  0.58

  	
   

  
	
  FIRE
  PROTECTION TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,645.00

  	
   

  	
  0.97

  	
   

  

 

	
  MILLWORK, SPECIALTY AND PLUMBING

  	
   

  	
  QUANTITY

  	
   

  	
  UNIT

  TYPE

  	
   

  	
  UNIT

  COST

  	
   

  	
  SUBTOTAL

  	
   

  	
  COST

  SQ. FT.

  	
   

  
	
  Upper and base
  cabinets in break room

  	
   

  	
  12

  	
   

  	
  LF

  	
   

  	
  235.00

  	
   

  	
  2,820.00

  	
   

  	
  0.36

  	
   

  
	
  Break room sink

  	
   

  	
  1

  	
   

  	
  EA

  	
   

  	
  2500.00

  	
   

  	
  2,500.00

  	
   

  	
  0.32

  	
   

  
	
  MILLWORK,
  SPECIALTY AND

  PLUMBING TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,320.00

  	
   

  	
  0.68

  	
   

  

 

	
  SUMMARY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  SUBTOTAL

  	
   

  	
  COST

  SQ. FT.

  	
   

  
	
  General
  Requirements

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  12,235.00

  	
   

  	
  1.56

  	
   

  
	
  Drywall &
  Metal Studs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  24,419.80

  	
   

  	
  3.11

  	
   

  
	
  Floor covering

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  14,986.50

  	
   

  	
  1.91

  	
   

  
	
  Electrical

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  21,225.00

  	
   

  	
  2.71

  	
   

  
	
  Painting

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,136.00

  	
   

  	
  0.91

  	
   

  
	
  Mechanical

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,750.00

  	
   

  	
  0.61

  	
   

  
	
  Millwork

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,320.00

  	
   

  	
  0.68

  	
   

  
	
  Doors Frames and
  Hardware

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10,725.00

  	
   

  	
  1.37

  	
   

  
	
  Fire Protection

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,645.00

  	
   

  	
  0.97

  	
   

  
	
  CONSTRUCTION
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  108,442.30

  	
   

  	
  13.82

  	
   

  
	
  Contractors Fee

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10,844.23

  	
   

  	
  1.38

  	
   

  
	
  GENERAL
  CONTRACTOR TOTAL:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  119,286.53

  	
   

  	
  15.20

  	
   

  

 

	
  Landlord direct
  cost for demo of existing:

  	
   

  	
  1

  	
   

  	
  EA

  	
   

  	
  1400

  	
   

  	
  1400.00

  	
   

  	
  0.18

  	
   

  
	
  Contingency

  	
   

  	
  1

  	
   

  	
  EA

  	
   

  	
  1500

  	
   

  	
  1500.00

  	
   

  	
  0.19

  	
   

  
	
  Construction
  drawings

  	
   

  	
  7846

  	
   

  	
  EA

  	
   

  	
  0.8

  	
   

  	
  6276.80

  	
   

  	
  0.80

  	
   

  
	
  GRAND
  TOTAL OF JOB:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  128,463.33

  	
   

  	
  16.37

  	
   

  

 

34

 

EXHIBIT “C”

 

RULES AND REGULATIONS

 

The
following Building Rules and Regulations have been adopted by the Landlord
for the care, protection and benefit of the Premises, the Building, and the
Land and for the general comfort and welfare of all Tenants.  The use of the word “Premises” in this Exhibit C
shall be deemed to mean Premises, Building and Land.

 

1.                                       Any sign, lettering, picture, notice, or
advertisement installed within Tenant’s Premises (including but not limited to
Tenant Identification signs on doors to the Premises) which is visible outside
of the Premises shall be installed in such manner, character and style as
Landlord may approve in writing.  No
sign, lettering, picture, notice or advertisement shall be placed on any
outside window or in any position so as to be visible from outside the Building
or from any atrium or lobbies of the Building.

 

2.                                        The sidewalks, entrances, passages, halls,
elevators and stairways shall not be obstructed by Tenant or used by Tenant for
any purpose other than for ingress and egress to and from the Building and
Tenant’s Premises.

 

3.                                        Restroom facilities, water fountains, and
other water apparatus shall not be used for any purpose other than those for
which they were constructed.

 

4.                                     Landlord reserves the right to designate the
time when freight, furniture, goods, merchandise and other articles may be
brought into, moved or taken from Tenant’s Premises or the Building.  Tenant shall schedule any move-in or move-out
dates with the Landlord, prior to commencing any such moving; such move-in and
move-out dates must be acceptable to the Landlord and shall not be done on
major holidays or Sundays unless specifically approved in writing in advance by
the Landlord, in accordance with the Landlord’s moving policy.  In the event that Landlord does approve any
moving on a major holiday or a Sunday, under such circumstances all additional
expense incurred by the Landlord shall be immediately reimbursed to the landlord
by the Tenant.

 

5.                                       Tenant shall not put additional locks or
latches upon any door without the written consent of Landlord.  Any and all locks so added on any door shall
remain for the benefit of Landlord, and the keys to such locks shall be
delivered to Landlord by and from Tenant.  
The Landlord shall be provided the means of opening any safes, cabinets
or vaults left in the premises.

 

6.                                      Landlord shall not be liable for injuries,
damage, theft, or other loss, to persons or property that may occur upon, or
near any parking areas that may be provided by Landlord.  Tenant, its agents, employees, and invitees
are to use same at their own risk.  The
driveways, entrances, and exits upon, into and from such parking areas shall
not be obstructed by Tenant, Tenant’s employees, agents, guests, or invitees;
provided, however, Landlord shall not be responsible or liable for failure of
any person to observe this rule.  Tenant,
its employees, agents or guests and/or invitees shall not park in space(s) that
may be reserved for others, including “Handicapped Parking” and/or spaces
marked “Tow 

 

35

 

Zone” or “No Parking.”  Landlord will use its discretion to tow away
a car that violates any parking rule, at the car owner’s/driver’s expense.

 

7.             It is expressly understood and agreed that
any item of any nature whatsoever placed in Common Areas (i.e., hallways,
restrooms, elevators, parking garage, storage areas and equipment rooms) are
placed at the Tenant’s sole risk and Landlord assumes no responsibility
whatsoever for any loss or damage as regards same.

 

8.             Tenant assumes full responsibility for
protecting its space from theft, robbery and pilferage, which includes keeping
doors locked and other means of entry to the Premises closed and secured unless
left unlocked by janitorial service personnel or Building maintenance people.

 

9.             Tenant shall not make noises, cause
disturbances, create vibrations, odors or noxious fumes or use or operate any
electrical or electronic devices or other devices that emit sound, waves or are
dangerous to other Tenants and occupants of the Building or that would
interfere with the operation of any device or equipment or radio or television
broadcasting or receptions from or within the Building or elsewhere, or with
the operation of roads or highways in the vicinity of the Building and shall
not place or install any projections, antennas, aerials or similar devices
inside or outside of the Premises.

 

10.           Tenant shall not install in the Premises any
heavyweight equipment or fixtures or permit any concentration of excessive
weight in any portion thereof without first having obtained Landlord’s written
consent.

 

11.           Landlord reserves the right at all times to
exclude newsboys, loiterers, vendors, solicitors, and peddlers from the
Building and to require registration or satisfactory identification or
credentials from all persons seeking access to any part of the Building outside
ordinary business hours.  Landlord will
exercise its best judgment in the execution of such control but will not be
liable for the granting or refusal of such access.

 

12.           Tenant shall not install nor operate
machinery or any mechanical devices or a nature not directly related to Tenant’s
ordinary use of the Premises without the written permission of Landlord.

 

13.           In no event shall any person bring into the
Building inflammables such as gasoline, naphtha and benzene, or explosives or
firearms.  If by any reason of the
failure of Tenant to comply with the provisions of this paragraph, any
insurance premium payable by Landlord for all or any part of the Building shall
at any time be increased above normal insurance premiums for insurance not
covering the items aforesaid, Landlord shall require Tenant to make immediate
payment for the whole or the increased insurance premium.

 

14.           Tenant shall comply with all applicable
federal, state and municipal laws, ordinances and regulations and Building
rules, and shall not directly or indirectly make any use of the Premises which
may be prohibited thereby or which shall be dangerous to person or property.

 

36

 

15.           Tenant shall not:

 

a)                                      Use the Premises for lodging, manufacturing
or for any immoral or illegal purposes.

 

b)                                     Use the Premises to engage in the manufacture
or sale of, or permit the use of, any spirituous, fermented, intoxicating or
alcoholic beverages on the Premises.

 

c)                                      Use the Premises to engage in the manufacture
or sale of, or permit the use of, any illegal drugs on the Premises.

 

16.          If Tenant desires signal, communication,
alarm or other utility or service connection install or changed, the same shall
be made at the expense of Tenant, with approval and under direction of
Landlord.

 

17.           Landlord shall furnish a reasonable number of
door keys to Tenant’s Premises and/or the Building which shall be surrendered
on termination or expiration of the Lease. 
Further, Tenant shall not alter the locks or effect any substitution of
such locks as are presently being used in Tenant’s Premises or the Building.

 

18.           All installations in the Common
Telephone/Electrical Equipment Rooms shall be limited to terminal boards and
connections.  All other electrical
equipment must be installed within Tenant’s Premises.

 

19.          Tenant, or the employees, agents, servants,
visitors or licensees of Tenant shall not at any time or place, leave or
discard any rubbish, paper, articles, or objects of any kind whatsoever outside
the doors of the Premises or in the corridors or passageways of the
Building.  No animals or birds shall be
brought or kept in or about the Building.

 

20.           Tenant shall cooperate and participate in all
security programs affecting the Building.

 

21.           Landlord shall have the right to limit or
control the number and format of listings on the main Building directory.

 

22.           In the event Landlord allows one or more
Tenants in the Building to do any act prohibited herein, Landlord shall not be
precluded from denying any other Tenant the right to do any such act.

 

23.           Tenant shall not waste electricity or water
and agrees to cooperate fully with Landlord to assure the most effective
operation of the Building’s heating and air conditioning and shall refrain from
attempting to adjust any controls. 
Tenant shall keep public corridor doors closed.

 

24.           Landlord reserves the right at all times to
exclude the general public from the Building upon such days and at such hours
as in Landlord’s sole judgment will be in the best interest of the Building and
its Tenants.

 

37

 

25.           If the Premises are furnished with carpeting,
Tenant shall provide a Plexiglas or comparable carpet protection mat for each
desk chair customarily used by Tenant. 
Fore default or carelessness in these respects, Tenant shall pay
Landlord the cost of repairing or replacing said carpet, in whole or in part,
as Additional Rent when, in Landlord’s sole judgment, such repair or
replacement is necessary.

 

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

 

27.          Tenant shall not mark, paint, drill into, or
in any way deface any part of the Building or the Premises.  No boring, driving of nails or screws,
cutting or stringing of wires shall be permitted, except with the prior written
consent of Landlord, and as Landlord may direct.  Tenant shall not install any resilient tile
or similar floor covering in the Premises except with the prior approval of
Landlord.  The use of cement or other
similar adhesive material is expressly prohibited.

 

28.           No animals are permitted on the Premises with
the exception of those used to aid handicapped persons.

 

29.           Tenant shall be required to maintain all
areas exposed to the Atrium glass side (visible from the Atrium/Lobby) or
visible from the Building or the exterior, in a neat and orderly manner at all
times as specified by Landlord’s reasonable discretion Tenant agrees that all
wires and computer cords shall remain concealed and not visible from the Atrium
or from the exterior of the Building. 
Any interior signage or wall hangings that are visible from the Atrium
or from the exterior of the Building must receive Landlord’s prior approval
before their installation.  No file
cabinets or bookshelves shall be placed within two (2) feet of the
window(s).  Tenant’s failure to comply
with the provisions of this Paragraph shall constitute a breach of the Lease
agreement and be subject to remedies as specified by the Landlord.  Landlord reserves the right to monitor and
facilitate changes to the Premises in order to ensure that the Premises are
maintained in a Building standard manner. 
Landlord shall provide Building standard horizontal mini blinds for the
Premises, which blinds shall remain in the fully lowered position, closed at a
45 degree angle at all times.

 

30.           Landlord reserves the right to prescribe the
specifications for signage in the Atrium/Lobby and all common areas of the
Building.  Landlord may at any time
change the Building standard for such signage and require compliance by the
Tenant.  Tenant may not display
promotional material including but not limited to credit card logos, hours of
operations, services offered, logos, etc. on or near any of the atrium glass or
entry doors to the Tenant’s Premises. 
All signage requirements made by the Tenant shall be submitted, in
writing, to Landlord for review and approval.

 

38

 

EXHIBIT “D”

 

From
the Northwest comer of Lot 12, Block 1, EDGEWOOD Subdivision, according to map
or plat thereof recorded in Plat Book 14, Page 18, Public Records of
Hillsborough County, Florida; run thence S.89°03’35”E, along the North boundary
of said Block 1, 150.00 feet to the Point of Beginning; continue thence S.89°03’35”E,
along the North boundary of said Block 1 and an Easterly extension thereof,
479.96 feet; run thence N.00°29’36”E, along the West boundary of the Southwest
1⁄4 of the Southeast 1⁄4 of Section 17, Township 29 South, Range 18 East,
Hillsborough County, Florida, 21.00 feet; thence S.88°59’16”E, along a line
15.00 feet South of and parallel with the North boundary of the said Southwest
1⁄4 of the Southeast 1⁄4 of Section 17, 599.86 feet; run thence S.44°16’25”E,
along the Westerly right-of-way line of Westshore Boulevard 28.43 feet; run
thence S.00°26’25”W, along said Westerly right-of-way line, 190.00 feet; thence
N.89°33’35”W, 355.00 feet; run thence N.00°26’25”E, 141.00 feet; run thence
N.89°33’35”W, 140.00 feet; run thence N.89°03’35”W, 45.00 feet; run thence
S.00°26’25”W, 66.00 feet; run thence N.89°03’35”W, 559.66 feet; run thence
N.00°21’45”E, along a line 150.00 feet East of and parallel with the East
right-of-way line of Ward Street, 119.10 feet to the Point of Beginning.  (Being known as Austin Center West – Phase
I).

 

39Exhibit
10.15

 

	
   

  	
  Dated:                                                                                             1999

  	
   

  

 

 

	
   

  	
  (1)

  	
  Copyover Holdings Limited

  
	
   

  	
   

  	
   

  
	
   

  	
  (2)

  	
  DIA Group Limited

  
	
   

  	
   

  	
   

  
	
   

  	
  (3)

  	
  Sysgenics Limited

  
	
   

  	
   

  	
   

  
	
   

  	
  (3)

  	
  Metastorm Inc.

  

 

 

 

LICENCE TO UNDERLET

 

 

relating to

1C Alwyne Road,
Wimbledon SW19

 

 

EVERSHEDS Solicitors

 

 

LICENCE
TO UNDERLET

 

	
  DATE:
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PARTIES:

  	
   

  	
   

  
					

 

 

	
  (1)

  	
   

  	
  “the Landlord”

  	
   

  	
  Copyover
  Holdings Limited of
  Eagle Street Don Road St Helier Jersey Channel Islands

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  “the Tenant”

  	
   

  	
  DIA
  Group Limited whose
  registered office is at Concorde House 10-12 London Road Maidstone Kent ME16
  8QF

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  “the Undertenant”

  	
   

  	
  Sysgenics
  Limited whose
  registered office is at Central House 1 Alwyne Road Wimbledon London SW19 7AB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (34)

  	
   

  	
  “the Surety”

  	
   

  	
  Metastorm
  Inc whose principal
  office is at 836 Ritchie Highway Building 16 Severna Park Maryland USA whose
  address for service in the UK is Charter House The Square Lower Bristol Road
  Bath BA2 3BH

  

 

1.             DEFINITIONS

 

In
this licence the following words or expressions have the following meanings:

 

	
  1.1

  	
   

  	
  “the Lease”

  	
   

  	
  the lease described is Schedule 1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.2

  	
   

  	
  “the Premises”

  	
   

  	
  the property described in Schedule 2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.3

  	
   

  	
  “the Underlease”

  	
   

  	
  as underlease in the form of the annexed draft by which the Underlet
  Premises are to be demised to the Undertenant

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.4

  	
   

  	
  “the Underlet Premises”

  	
   

  	
  the whole of the Premises

  

 

2.             INTERPRETATION

 

2.1           If any party to
this licence at any time consists of more than one person the obligations of
those persons are joint and several

 

2.2           References to
any person who is a party to this licence include references to that person’s
successors-in-title

 

2.3           References to “the
Lease” incorporate references to all deeds and documents which are supplemental
to the Lease immediately before the date of this deed and this licence is
supplemental to the Lease

 

 

2.4           Words importing
gender include the masculine feminine and neuter genders

 

2.5           The clause
headings do not affect the construction of this licence and any reference to a
clause or Schedule not otherwise attributed is a reference to a clause or
Schedule of this licence

 

3.             REQUEST TO UNDERLET

 

3.1           The Premises
remain vested in the Tenant for the unexpired period of the term of the Lease
and the reversion expectant on the determination of that term is now vested in
the Landlord

 

3.2           The Tenant has
requested the Landlord’s permission to underlet the Underlet Premises to the
Undertenant and the Landlord has agreed to grant permission on the terms set
out in this licence

 

4.             GRANT OF LICENCE

 

The Landlord permits the
Tenant to grant the Underlease to the Undertenant subject to compliance with
the provisions of this licence

 

5.             TENANT’S COVENANTS

 

The Tenant covenants with
the Landlord:

 

5.1           not to allow
the Undertenant into possession or occupation of the whole or any part of the
Underlet Premises until the Underlease is completed

 

5.2           not whether
expressly or by implication to vary the provisions of the Underlease nor to
waive any rights in respect of any breach of the covenants and conditions in
the Underlease without the written consent of the Landlord but to take all such
steps as are lawfully available to the Tenant (including re-entry) to enforce
such covenants and conditions

 

5.3           to pay on
demand and indemnify the Landlord against all reasonable and proper costs fees
disbursements and expenses (including any VAT and extending to the costs etc of
professional advisers and agents) incurred in connection with the Underlease
and with this licence

 

5.4           not to grant
the Underlease until the Tenant has supplied the Landlord and the Superior
Landlord with a certified copy of an Order of the Court made under s.38(4) of
the Landlord and Tenant Act 1954 (as amended) authorising the agreement to be
contained in the Underlease excluding the provisions of ss.24 to 28 (inclusive)
of that Act

 

5.5           to take all
requisite steps to ensure that the Undertenant does not acquire protection
under the Landlord and Tenant Act 1954

 

 

6.             UNDERTENANT’S COVENANTS

 

The Undertenant covenants
with the Landlord that as from the date of completion of the Underlease and
during the term granted by the Underlease and any extension or continuation of
that term and any holding over whether arising by operation of law or otherwise
(unless the Undertenant is released earlier by virtue of the Landlord and
Tenant (Covenants) Act 1995) it will perform and observe the covenants on the
part of the lessee and the conditions in the Lease (other than the covenant to pay
the rent reserved by the Lease) and the covenants on the part of the
Undertenant and conditions in the Underlease and will indemnify the Landlord
against all actions costs losses claims demands and liabilities arising from
any breach of those covenants and conditions

 

7.             AGREEMENTS AND DECLARATIONS

 

7.1           This licence is
restricted to the particular underletting hereby authorised and the covenants
in the Lease dealing with assignment and underletting remain in full force and
effect

 

7.2           Except for
clause 5.3 the licence granted in clause 4 will terminate two months after the
date of this deed unless within that period the Underlease is completed and
registered with the Landlord’s solicitors but termination does not oblige the
Landlord to refund any payments made under clause 5.3 nor prejudice any accrued
right of action vested in the Landlord or arising from any earlier breach by
the Tenant or the Undertenant of their obligations under this licence

 

7.3           The forfeiture
provisions in the Lease are exercisable by the Landlord not only on the
happening of any of the events mentioned in those provisions but also on any
breach of any covenant on the part of the Tenant in this licence

 

7.4           Nothing in this
licence waives any breach of the obligations of the Tenant under the Lease
which may have occurred prior to the date of this license

 

8.             SURETY’S COVENANT

 

The Surety covenants with
the Landlord:

 

8.1           that the
Undertenant will perform and observe the covenants on its part and the conditions
in this licence and that if the Undertenant defaults the Surety will perform or
observe the covenants or conditions in respect of which the Undertenant is in
default

 

8.2           the Surety will
on demand make good and indemnity the Landlord against all losses damages costs
and expenses arising or incurred by the Landlord out of the Undertenant’s
default notwithstanding any time or indulgence granted by the Landlord to the
Undertenant or any neglect or forbearance of the Landlord in enforcing the
observance or performance of the covenants or conditions of this 

 

 

licence or anything else which would have released the Surety if it
were not for this provision

 

9.             JURISDICTION

 

This agreement shall be
governed by and construed in accordance with the law of England and Wales and
each party agrees to submit to the exclusive jurisdiction of the court of
England and Wales.

 

EXECUTED as a deed and
delivered on the date stated at the beginning of this deed

 

 

SCHEDULE 1

 

(Details of the Lease)

 

	
  Date:

  	
  6th May 1987

  
	
   

  	
   

  
	
  Original
  Parties:

  	
  Clandean
  Securities Limited (1)

  Design In Action Limited (2)

  Lopex Public Limited Company (3)

  
	
   

  	
   

  
	
  Term:

  	
  25 years from and
  including 25th March 1987

  
	
   

  	
   

  
	
  Initial Rent:

  	
  £81,500 (eighty one
  thousand five hundred pounds)

  

 

SCHEDULE 2

 

(Description of the Premises)

 

All
that land and buildings on the South East side of Alwyne Road Wimbledon known
as 1C Alwyne Road Wimbledon London SW19

 

 

	
  THE COMMON SEAL of

  	
  )

  	
   

  
	
  COPYOVER HOLDINGS LIMITED

  	
  )

  	
   

  
	
  was affixed in the
  presence of:

  	
  )

  	
   

  

 

 

Director

 

 

Secretary

 

 

	
  THE COMMON SEAL of

  	
  )

  	
   

  
	
  DIA GROUP LIMITED

  	
  )

  	
   

  
	
  was affixed in the
  presence of:

  	
  )

  	
   

  

 

 

Director

 

 

Secretary

 

 

	
  THE COMMON SEAL of

  	
  )

  	
   

  
	
  SYSGENICS LIMITED

  	
  )

  	
   

  
	
  was affixed in the
  presence of:

  	
  )

  	
   

  

 

 

Director

 

 

Secretary

 

 

	
  THE COMMON SEAL of

  	
  )

  	
   

  
	
  METASTORM INC.

  	
  )

  	
   

  
	
  was affixed in the
  presence of:

  	
  )

  	
   

  

 

 

Director

 

 

Secretary

 

 

Dated:

 

	
   

  	
   

  	
   

  
	
   

  	
  (1)

  	
  DIA GROUP LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
  (2)

  	
  SYSGENICS LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
  (3)

  	
  METASTORM INC.

  

 

 

counterpart UNDERLEASE

 

-of-

 

Central House, Alwyne
Road, Wimbledon

 

 

	
  UNDERLEASE dated

  	
  1999

  

 

BETWEEN:

 

(1)          “The Landlord” DIA Group
Limited whose registered office is at Concorde House, 10-12 London Road,
Maidstone, Kent ME16 8QF.

 

(2)          “The Tenant” Sysgenics
Limited whose registered office is at Central House, 1 Alwyne Road, Wimbledon,
London SW19 7AB

 

(3)          “The Surety” Metastorm Inc
whose principal office is at 836 Ritchie Highway, Building 16, Severna Park,
Maryland, USA.

 

1.           In this lease:

 

1.1           Whenever there is more than one tenant, all their
obligations can be enforced against all of the tenants jointly and against each
individually.

 

1.2           Any obligation to pay money refers to a sum
exclusive of value added tax and any such tax charged on it is payable in
addition.

 

1.3           “The Head Lease” means the lease dated 6 May 1987
and made between Clandean Securities Limited (1) the Landlord (2) and
Lopex Public Limited Company (3) and any lease or leases superior to the
Head Lease.

 

1.4           References to the “Superior Landlord” shall include
successors in title and shall include all Superior Landlords however remote.

 

1.5           The expression “the demised premises” means the
premises known as Central House, Alwyne Road, Wimbledon as demised by the Head
Lease.

 

1.6           Expressions used in this lease shall unless the
context otherwise requires have the meanings given to them in the Head Lease.

 

1.7           Reference to any right exercisable by the Landlord
or any right exercisable by the Tenant in common with the Landlord shall be
construed as including (where appropriate) the exercise of such right:

 

(i)            by the Superior Landlord and all persons authorised
by the Superior Landlord and

 

(ii)           in common with all other persons having a like
right.

 

2.             The Landlord
demises to the Tenant the demised premises for a term commencing on                                                         
1999 and ending on 21 March 2012 together with the benefit of the rights
set out in the First Schedule to the Head Lease but subject to the rights
easements quasi-easements and privileges and matters referred to in clause 2 of
the Head Lease paying to the Landlord FIRSTLY the yearly rent of one hundred
and eleven 

 

 

thousand
four hundred and twenty pounds (£111,420) until 31 December 1999 and
thereafter one hundred and ninety thousand pounds (£190,000) subject to review
as set out in the Second Schedule to the Head Lease the first payment to be an apportioned
amount in respect of the period from                                   
1999 to                                                 
1999 and to be paid on                                             
1999 and thereafter to be paid in advance on the usual quarter days by equal
quarterly installments AND SECONDLY by way of further rent a sum or sums equal
to the amounts paid by the Landlord to the Superior Landlord in respect of its
insurance obligations in the Head Lease and costs of insurance valuations such
further rent to be paid on demand.

 

3.             Terms

 

3.1           Except as to:

 

3.1.1                     the term and

 

3.1.2                     the rent reserved

 

this
Lease is made upon the same terms and subject to the same covenants provisos and
conditions as are contained in the Head Lease as if the same were set out in
this Lease.

 

3.2           The yearly rent shall be reviewed as set out in the
Second Schedule to the Head Lease.

 

4.1           The Tenant covenants with the Landlord:

 

4.1.1                     to observe and perform the covenants and conditions on
the part of the tenant in the Head Lease other than the covenants to pay the
rents reserved in clause 2 of the Head Lease.

 

4.1.2                     to indemnify the Landlord against any actions
proceedings claims damages costs expenses or losses arising from any breach
non-observance or non-performance of the covenants on the part of the Tenant
contained herein either expressly or by reference to the Head Lease.

 

4.2           The Landlord covenants with the Tenant:

 

4.2.1                     to pay the rents reserved in clause 2 of the Head
Lease.

 

4.2.2                     on request of the Tenant to take all reasonable steps
to enforce the insurance covenants on the part of the Superior Landlord.

 

5.             The Surety
covenants with the Landlord in the same terms as clause 6 of the Head Lease as
if the same were set out in this Lease.

 

 

6.             The Surety
agrees that service of any notice or proceedings upon it may be effected at
Central House, 1 Alwyne Road, Wimbledon, London SW19 7AB or at any other
address notified in writing to the Landlord in substitution for it.

 

7.             Court Order

 

By
an order of the Mayors and City of London Court dated the                     
1999 (number of matter:                                 )
made pursuant to the provisions of section 38(4) of the Landlord and Tenant
Act 1954 it is hereby declared that the provisions of sections 24 to 28
inclusive of the Landlord & Tenant Act 1954 (as amended) are excluded from
the operation of this Lease.

 

IN WITNESS of which the
parties have executed this Lease as a Deed

 

 

	
  SIGNED as a DEED for and
  on behalf of

  	
  )

  
	
  Sysgenics Limited by

  	
  )

  

 

 

Director           illegible

 

Secretary

 

 

	
  SIGNED as a DEED for and
  on behalf of

  	
  )

  
	
  Metastorm Inc by

  	
  )

  

 

 

Director           illegible

 

Secretary

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