Document:

Exhibit 10.7

STANDARD

OFFICE LEASE AGREEMENT (NET)

 

THIS

LEASE AGREEMENT

(hereafter called the “Lease Agreement”) made as of the

             day

of August, 2002 by and between UNITED PROPERTIES INVESTMENT LLC, a

Minnesota limited liability company having offices at Suite 200, 3500 West 80th

Street, Bloomington, Minnesota, 55431 (hereafter called the “Landlord”)

and CORVU

CORPORATION, a Minnesota corporation (hereafter called the “Tenant”).

 

WITNESSETH

FOR AND IN CONSIDERATION of the sum of One Dollar ($1.00) in hand paid by each

of the parties to the other, and other good and valuable consideration, receipt

and sufficiency of which is hereby acknowledged, the parties hereby agree as

follows:

ARTICLE 1 - PREMISES AND TERM

A.    Landlord does hereby lease and let unto

Tenant, and Tenant does hereby hire, lease and take from Landlord, that area

outlined in red or otherwise described on Exhibit A-1 attached hereto, and by

this reference incorporated herein, and described as Suite 445 containing

approximately 6,567 rentable square feet, (hereafter called the “Premises”) at

Southdale Place, 3400 West 66th Street (hereafter called the “Building”) in the

City of Edina, County of Hennepin, State of Minnesota.  The term Building as it is used herein shall

consist of the land and building(s) set forth in Exhibit A-2 hereto.

B.    To have and to hold said Premises for a term

of sixty (60) months commencing September 1, 2002 and terminating August 31,

2007 (hereafter called the “Term”) upon the rentals and subject to the

conditions set forth in this Lease Agreement, and the Exhibits attached

hereto.  The commencement and

termination dates are specifically subject to the provisions of Article 5

hereof.

ARTICLE 2 - USE

The Premises shall be

used by the Tenant solely for the following purposes: General office use

ARTICLE 3 - RENTALS

Tenant agrees to pay to

Landlord as minimum rental (hereafter called “Minimum Rental”) for the

Premises, without notice, set-off or demand, the following amounts per month:

	

  Month of Term

  	

   

  	

  Annual

  Rate Per RSF

  	

   

  	

  Monthly

  Minimum Rental

  
	

  1 to 12,

  inclusive

  	

   

  	

  $9.50

  	

   

  	

  $5,198.88

  
	

  13 to 24,

  inclusive

  	

   

  	

  $9.75

  	

   

  	

  $5,335.69

  
	

  25 to 36,

  inclusive

  	

   

  	

  $10.00

  	

   

  	

  $5,472.50

  
	

  37 to 48,

  inclusive

  	

   

  	

  $10.25

  	

   

  	

  $5,609.31

  
	

  49 to 60,

  inclusive

  	

   

  	

  $10.50

  	

   

  	

  $5,746.13

  
						

 

Said monthly

installments shall be due and payable by Tenant in advance on the first day of

each calendar month during the Term of this Lease Agreement, or any extension

or renewal thereof, at the office of Landlord set forth in the preamble to this

Lease Agreement or at such other place as Landlord may designate.  In the event of any fractional calendar

month, Tenant shall pay for each day in such partial month a rental equal to

1/30 of the Minimum Rental.  Tenant

agrees to pay, as Additional Rental, which shall be collectible to the same

extent as Minimum Rental, all amounts which may become due to Landlord

hereunder and any tax, charge or fee that may be levied, assessed or imposed

upon or measured by the rents reserved hereunder by any governmental authority

acting under any present or future law before any fine, penalty, interest or

costs may be added thereto for non-payment. 

Pursuant to Article 6 hereof, Landlord’s estimated Operating Expenses

for 2002 are $7.03 per rentable square foot and estimated Real Estate Taxes

payable in 2002 are $3.69 per rentable square foot.

ARTICLE 4 - CONSTRUCTION

Tenant acknowledges and

agrees that it shall be leasing the Premises in their existing “as is”

condition without any obligation on the part of Landlord to make any

alterations, modifications or improvements thereto.  Any improvements to the Premises and the furnishing of the

Premises, shall be made by Tenant at the sole cost and expense of Tenant,

subject to all other provisions of this Lease Agreement, including Article 12

hereof.  Notwithstanding the foregoing,

on the commencement date of this Lease Agreement, Landlord shall furnish Tenant

with an allowance of $16,417.50 ($2.50 per rentable square foot of Premises) to

be utilized by Tenant for the installation of Wiring (as defined in Article 19

hereof) and for such other purposes as Tenant may elect.

·

ARTICLE 5 - POSSESSION

It is acknowledged by the

parties that Tenant is currently in possession of the Premises hereunder

pursuant to a certain sublease agreement which expires on August 31, 2002.  On September 1, 2002 Landlord shall, without

further act or deed of the parties, be deemed to have automatically delivered

possession of the Premises hereunder to Tenant in the condition required by

this Lease Agreement.

ARTICLE 6 - TENANT’S PRO RATA

SHARE OF REAL ESTATE TAXES AND OPERATING EXPENSES

A.    During each full or partial calendar year

during the Term of this Lease Agreement, Tenant shall pay to Landlord, as

Additional Rental, an amount equal to the Real Estate Taxes and Operating

Expenses (both as hereafter defined) per square foot of rentable area in the

Building multiplied by the number of square feet of rentable area in the

Premises prorated for the period that Tenant occupied the Premises.  In the

event that during all or any portion of any calendar year, the Building is not

fully rented and occupied Landlord may make any appropriate adjustment in

occupancy-related Operating Expenses for such year for the purpose of avoiding

distortion of the amount of such Operating Expenses to be attributed to Tenant

by reason of variation in total occupancy of the Building, by employing sound

accounting and management principles to determine Operating Expenses that would

have been paid or incurred by Landlord had the Building been ninety-five percent

(95%) rented and occupied, and the amount so determined shall be deemed to have

been Operating Expenses for such year.

 

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B.    Landlord shall, each year during the Term of

this Lease Agreement, give Tenant an estimate of Operating Expenses and Real

Estate Taxes payable per square foot of rentable area for the coming calendar

year.  Tenant shall pay, as Additional

Rental, along with its monthly Minimum Rental payments required hereunder,

one-twelfth (1/12) of such estimated Operating Expenses and Real Estate Taxes

and such Additional Rental shall be payable until subsequently adjusted for the

following year pursuant to this Article.

C.    As soon as possible after the expiration of

each calendar year, but in no event later than one hundred twenty (120) days

thereafter, Landlord shall determine and certify to Tenant the actual Operating

Expenses and Real Estate Taxes for the previous year per square foot of

rentable area in the Building and the amount applicable to the Premises.  If such statement shows that Tenant’s share

of Operating Expenses and Real Estate Taxes exceeds Tenant’s estimated monthly

payments for the previous calendar year, then Tenant shall, within twenty (20)

days after receiving Landlord’s certification, pay such deficiency to

Landlord.  In the event of an

overpayment by Tenant, such overpayment shall be refunded to Tenant, at the

time of certification, in the form of an adjustment in the Additional Rental

next coming due, or if at the end of the Term by a refund.  By giving written notice to Landlord no

later than ninety (90) days following receipt by Tenant of Landlord’s annual

statement, Tenant, by its agents or employees engaged on a non-contingency based

fee arrangement, shall have the right, at Tenant’s cost and expense, to audit

the books and records of Landlord and/or its property manager relating to the

Operating Expenses and Real Estate Taxes that are the subject of such

statement, said audit to be at the office of Landlord’s property manager and on

a date reasonably acceptable to Landlord and Tenant.  Landlord shall be provided with a written report of such audit in

reasonable detail and such audit shall be subject to verification and rebuttal

by Landlord.  In the event such audit

establishes that Tenant was overcharged for Operating Expenses or Real Estate

Taxes, the amount of such overcharge shall be refunded to Tenant in the form of

an adjustment in the Additional Rental next coming due, or if at the end of the

Term by a refund in cash.  Conversely,

in the event such audit establishes that Tenant was undercharged for Operating

Expenses or Real Estate Taxes, the amount of such undercharge shall be paid by

Tenant to Landlord in cash within twenty (20) days following the conclusion of

the audit.

D.    For the purposes of this Article, the term “Real Estate

Taxes” means the total of all taxes, fees, charges and assessments,

general and special, ordinary and extraordinary, foreseen or unforeseen, which

become due and payable against or upon the Building, the parcel(s) of land upon

which it is located, excluding, however, federal and state or other taxes on

net income, death taxes, excess profit taxes or franchise taxes or penalties on

late payment of Real Estate Taxes or assessments unless caused by Tenant.  All reasonable costs and expenses incurred

by Landlord during negotiations for or contests of the amount of Real Estate

Taxes shall be included within the term “Real Estate Taxes.” For purposes of

this Article, the term “Operating Expenses” shall be deemed to mean

all costs and expenses directly related to the Building incurred by Landlord in

the repair, operation, management and maintenance of the Building including

interior and exterior and common area maintenance, management fees, cleaning expenses,

energy expenses, insurance premiums, and the amortization of capital

investments made that are reasonably likely to reduce operating costs, that are

necessary due to governmental requirements or that are required by the insurer

under any insurance policy carried on the Building by Landlord, all as

determined on a commercially reasonable basis by Landlord.  Notwithstanding anything herein to the

contrary, the term “Operating Expenses” shall not be deemed to include any of

the costs or expenses set forth in Exhibit B attached hereto.

E.     Landlord may at any time designate a fiscal

year in lieu of a calendar year and in such event, at the time of such a

change, there may be a billing for the fiscal year which is less than 12

calendar months.

F.     Landlord reserves, and Tenant hereby

assigns to Landlord, the sole and exclusive right to contest, protest, petition

for review, or otherwise seek a reduction in the Real Estate Taxes.

ARTICLE 7 - UTILITIES AND SERVICE

A.    Landlord agrees to furnish water, electricity,

elevator service, and janitorial service. 

In the event Tenant’s requirements and/or usage of such utilities and

services is substantially greater than is customarily supplied to a typical

tenant in the Building, Landlord or Tenant may request that the difference in

such requirement and/or usage be determined and that appropriate adjustments be

made in the Minimum Rental provided for in Article 3 of this Lease Agreement.

B.    Landlord agrees to furnish heat during the

usual heating season and air conditioning during the usual air conditioning

season in accordance with the standards of comparable office buildings, all

during normal business hours as defined in this Lease Agreement.  Notwithstanding the foregoing, upon

reasonable advance notice by Tenant to Landlord, HVAC services shall be made

available to the Premises after normal business hours, at a charge to Tenant

not to exceed Landlord’s actual costs therefor.

C.    No temporary interruption or failure of such

services incidental to the making of repairs, alterations or improvements, or

due to accidents or strike or conditions or events not under Landlord’s

control, shall be deemed as an eviction of the Tenant or relieve the Tenant

from any of the Tenant’s obligations hereunder.  Notwithstanding the foregoing, in the event (i) either (x) such

interruption or failure of services is caused by the negligence or willful

misconduct of Landlord or (y) the restoration of such services is within the

reasonable control of Landlord and Landlord fails to take commercially

reasonable steps to restore such services as soon as reasonably possible, (ii)

the interruption or failure of such services continues for a period of five (5)

consecutive business days following notice by Tenant to Landlord, and (iii) as

a result of such interruption or failure of services, the Premises, or a

portion thereof are rendered untenantable and, in fact, Tenant does not use the

untenantable portion of the Premises for its normal business operations during

said period of time, then in such case, the payment of Minimum Rental and

Additional Rental under Article 6 of this Lease Agreement shall thereafter

abate, in the proportion that the untenantable portion of the Premises bears to

the entire Premises, until such time as such services are restored to the

untenantable portion of the Premises or Tenant begins again to use such

Premises for its normal business operations, whichever occurs first.

D.    For the purposes of this Article 7, normal

business hours shall be deemed to mean the periods of time between 6:00 a.m.

and 6:00 p.m., Monday through Friday and 8:00 a.m. and 1:00 p.m. on Saturdays,

and specifically excluding Sundays and legal holidays.  Notwithstanding the foregoing, Tenant shall

have elevator access to the Premises all day, every day subject to Landlord’s

card access system and other security measures.

ARTICLE 8 - NON-LIABILITY OF

LANDLORD

Except in the event of

gross negligence of Landlord, its agents, employees or contractors and except

as may otherwise be provided in Article 7C above, Landlord shall not be liable

to Tenant or its employees for any loss or damage for failure to furnish heat,

air conditioning, electricity, elevator service, water, sprinkler system or

janitorial service.  Landlord shall not

be liable to Tenant or its employees for personal injury, death or any damage

from any cause about the Premises or the Building except if caused by

Landlord’s gross negligence.

ARTICLE 9 - CARE OF PREMISES

A.    Tenant agrees:

1.     To keep the Premises in as

good condition and repair as they were in at the time Tenant took possession of

same, reasonable wear and tear and damage from fire and other casualty for

which insurance is normally procured excepted;

2.     To keep the Premises in a

clean and sanitary condition;

3.     Not to commit any nuisance

or waste on the Premises, overload the Premises or the electrical, water and/or

plumbing facilities in the Premises or Building, throw foreign substances in

plumbing facilities, or waste any of the utilities furnished by Landlord;

4.     To abide by such rules and

regulations as may from time to time be reasonably promulgated by Landlord;

 

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5.     To preserve and protect all

carpeted areas; and

6.     To obtain Landlord’s prior

approval, which approval shall not be unreasonably withheld, of the interior

design of any portion of the Premises visible from the common areas or from the

outside of the Building.  “Interior

design” as used in the preceding sentence shall include but not be limited to

floor and wall coverings, furniture, office design, artwork and color scheme.

B.    If Tenant shall fail to keep and preserve

the Premises in the state of condition required by the provisions of this

Article 9, the Landlord may, at its option upon fifteen (15) days prior written

notice to Tenant and failure of Tenant to cure during said period of time

(except in the case of an emergency, when no notice or opportunity to cure need

be given), put or cause the same to be put into the condition and state of

repair agreed upon, and in such case the Tenant, on demand, shall pay the cost

thereof.

C.    Subject

to Landlord’s right to be paid for any Operating Expenses incurred by Landlord

that may properly apply and be payable in accordance with Article 6 above,

Landlord shall keep in good order, condition and repair, the common areas of

the Building as well as the structural parts of the Building, including the

roof, load bearing walls, foundation and interior support columns and the

mechanical and utility systems of the Building (including the standard office

mechanical and utility systems installed as part of the existing improvements

to the Premises, but excluding, however, any additional mechanical or utility

systems that are installed by or on behalf of Tenant which are in addition to

those provided to typical office tenants in the Building) except that Tenant

shall be responsible (subject to Article 17 below) for the cost of repairs that

are caused by the fault or negligence of Tenant, its contractors, agents,

employees or invitees.

ARTICLE 10 - NON-PERMITTED USE

Tenant agrees to use the

Premises only for the purposes set forth in Article 2 hereof.  Tenant further agrees not to commit or

permit any act to be performed on the Premises or any omission to occur which

shall be in violation of any statute, regulation or ordinance of any

governmental body (collectively, the “Laws”) or which will increase the insurance

rates on the Building or which will be in violation of any insurance policy

carried on the Building by the Landlord. 

Tenant, at its expense, shall comply with all Laws applicable to

Tenant’s specific use of the Premises and shall promptly comply with all

governmental orders, rulings and directives for the correction, prevention and

abatement of any violation in connection with Tenant’s specific use of the

Premises, including the making of any alterations or improvements to the

Premises, all at Tenant’s sole cost and expense.  The Tenant shall not disturb other occupants of the Building by

making any undue or unseemly noise or otherwise and shall not do or permit to

be done in or about the Premises anything which will be dangerous to life or

limb.

ARTICLE 11 - INSPECTION

So long as Tenant’s use

of the Premises for its normal business operations is not materially interfered

with, the Landlord or its employees or agents shall have the right, upon

reasonable advance notice to Tenant (except in the case of an emergency, when

no notice need be given) and without any diminution of rent or other charges

payable hereunder by Tenant, to enter the Premises at all reasonable times for

the purpose of exhibiting the Premises to prospective tenants or purchasers or

existing or prospective mortgagees of the Building (“Mortgagees”), inspection,

cleaning, repairing, testing, altering or improving the same or said Building,

but nothing contained in this Article shall be construed so as to impose any

obligation on the Landlord to make any repairs, alterations or improvements.

ARTICLE 12 - ALTERATIONS

Tenant

will not make any alterations, repairs, additions or improvements in or to the

Premises (for purposes of this Article 12, any of the foregoing being referred

to as the “Work”) or add, disturb or in any way change any plumbing,

wiring, life/safety or mechanical systems, locks, or structural portions of the

Building without  the  prior 

written  consent of the Landlord

as to the character of the Work, the manner of 

doing  the  Work, and 

the  contractor(s)  doing 

the  Work.  Such consent shall not be unreasonably

withheld or delayed, if such Work is required of Tenant or is the obligation of

Tenant pursuant to this Lease Agreement. 

As a condition to Landlord’s consent to Work proposed by Tenant,

Landlord may impose such reasonable conditions with respect thereto as Landlord

deems appropriate, including, without limitation, requiring Tenant to furnish

surety performance and/or payment bonds or other security for the payment of

all costs incurred in connection with such Work, insurance against liabilities

that may arise out of such Work, plans and specifications approved by Landlord,

which approval shall not be unreasonably withheld or delayed and permits

necessary for such Work. 

Notwithstanding anything herein to the contrary, Tenant may, without the

consent of Landlord, perform Work of a non-structural nature costing no more

than $2,500.00 in any one instance so long as the plumbing, wiring, life/safety

and mechanical systems of the Building are not disturbed or changed in any way

and Tenant gives Landlord at least twenty (20) days written notice prior to

performing such Work describing in reasonable detail the nature of same and the

contractor(s) doing the Work.  If any

such Work is performed by contractor(s) not retained by Landlord, Tenant shall

upon completion of such Work, (i) deliver to Landlord evidence that payment for

all such Work has been made by Tenant, contractors’  affidavits and full and final mechanic’s lien waivers and (ii)

pay to Landlord a construction supervision fee of five percent (5%) of the

total cost of such Work, but in no event less than $500.00 to reimburse

Landlord for the costs incurred by its construction manager in inspecting and

supervising such Work. All such Work shall be done in a good and workmanlike

manner using quality materials and shall comply with all applicable governmental

laws, ordinances, rules and regulations. Tenant agrees to indemnify and hold

Landlord free and harmless from any liability, loss, cost, damage or expense

(including reasonable attorney’s  fees)

arising out of  any  of such 

Work performed by or on behalf of Tenant.  The provisions of Article 27 of this Lease Agreement shall apply

to all Work performed under this Article 12.

ARTICLE 13 - SIGNS

Tenant agrees that no

signs or other advertising materials shall be erected, attached or affixed to

any portion of the interior or exterior of the Premises or the Building without

the express prior written consent of Landlord. 

Landlord hereby consents to Tenant’s existing suite-entry signage and

further agrees that Tenant may continue to have its name included in the

directory for the Building.  It is

acknowledged by the parties that Tenant’s name is currently on the monument

sign for the Building (the “Monument Sign”).  Subject to the following terms and conditions, Tenant may

continue to have its name on the Monument Sign under this Lease Agreement.

However, in the event Landlord shall enter into a lease agreement with a third

party tenant and such third party tenant has required under such lease

agreement that its name and/or logo be on the Monument Sign, either (i) at

Landlord’s expense, Tenant’s name shall be removed from the Monument Sign

entirely if such third party tenant will be leasing more space in the Building

than Tenant hereunder or (ii) otherwise, the location and/or size of Tenant’s

name on the Monument Sign shall be adjusted at Landlord’s expense, so as to

enable such third party tenant to have its name and/or logo included on the

Monument Sign.

ARTICLE 14 - COMMON AREAS

                A.    Tenant

agrees that the use of all corridors, passageways, elevators, toilet rooms,

parking areas and landscaped areas in and around said Building, by the Tenant

or Tenant’s employees, visitors or invitees, shall be subject to such

reasonable rules and regulations as may from time to time be made by Landlord

for the safety, comfort and convenience of the owners, occupants, tenants and

invitees of said Building.  Tenant

agrees that no awnings, curtains, drapes or shades shall be used upon the

Premises except as may be approved by Landlord; provided, however, Landlord

hereby approves all awnings, curtains, drapes or shades currently located on

the Premises.

B.    In addition to the Premises, Tenant shall

have the right of non-exclusive use, in common with others, of (a) all

unrestricted automobile parking areas, driveways and walkways, and (b) loading

facilities, freight elevators and other facilities as may be constructed in the

Building, all to be subject to the terms and conditions of this Lease Agreement

and to reasonable rules and regulations for the use thereof as prescribed from

time to time by Landlord.

C.    Landlord shall have the right to make

changes or revisions in the site plan and in the Building so as to provide

additional leasing area.  Landlord shall

also have the right to construct additional buildings on the land described on

Exhibit A-2 for such purposes as Landlord may deem appropriate.  Landlord also reserves all airspace rights

above, below and to all sides of the Premises, including the right to make

changes, alterations or provide additional leasing areas.  In exercising its rights under this Article

14 C, Landlord shall not materially alter Tenant’s access or visibility to the

Premises.

 

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D.    Landlord and Tenant agree that Landlord will

not be responsible for any loss, theft or damage to vehicles, or the contents

thereof, parked or left in the parking areas of the Building and Tenant agrees

to so advise its employees, visitors or invitees who may use such parking

areas.  The parking areas shall include

those areas designated by Landlord, in its sole discretion, as either

restricted or unrestricted parking areas. 

Any restricted parking areas shall be leased only by separate license

agreement with Landlord.  Tenant further

agrees not to use or permit its employees, visitors or invitees to use the

parking areas for overnight storage of vehicles except on an occasional basis

when special circumstances so required.

ARTICLE 15 - ASSIGNMENT AND

SUBLETTING

A.    Tenant agrees not to assign, sublet,

license, mortgage or encumber this Lease Agreement, the Premises, or any part

thereof, whether by voluntary act, operation of law, or otherwise, without  the 

specific  prior  written 

consent  of  Landlord 

in  each  instance, which consent shall not be

unreasonably withheld or delayed by Landlord.  

If Tenant is a corporation, partnership or other legal entity, transfer

of a controlling interest of Tenant shall be considered an assignment of this

Lease Agreement for purposes of this Article. 

Notwithstanding anything herein to the contrary, Tenant may, without the

consent of Landlord, (i) assign this Lease Agreement or sublet all or any part

of the Premises to an Affiliate of Tenant or (ii) assign this Lease Agreement

to a person or entity (an “Acquiring Entity”) which acquires all, or

substantially all of the assets of Tenant by purchase of capital stock or other

ownership interest, purchase of assets, consolidation, merger or otherwise,

provided that as demonstrated by Tenant, said Acquiring Entity has at the time

of said assignment a tangible net worth at least as great as the tangible net

worth of Tenant at the time of said assignment.  As used herein, an “Affiliate” of Tenant shall be deemed to be

any entity which either controls, is controlled by or is under common control

with Tenant, with “control” meaning the power to direct the management and

policies, directly or indirectly, through the ownership of voting ownership

interests.  Consent by Landlord in one

such instance shall not be a waiver of Landlord’s rights under this Article as to

requiring consent for any subsequent instance. In the event Tenant desires to

sublet a part or all of the Premises, or assign this Lease Agreement, including

to an Affiliate or Acquiring Entity of Tenant, Tenant shall give written notice

to Landlord at least thirty (30) days prior to the proposed subletting or

assignment, which notice shall state the name of the proposed subtenant or

assignee, the terms of any sublease or assignment documents and if proposed to

a person or entity other than an Affiliate of Tenant, copies of financial

reports or other relevant financial information of the proposed subtenant or

assignee. At Landlord’s option and with the exception of an assignment or

subletting to an Affiliate of Tenant or an assignment to an Acquiring Entity of

Tenant, any and all payments by the proposed assignee or subtenant with respect

to the assignment or sublease shall be paid directly to Landlord, it being

further agreed by the parties that notwithstanding any other provision of this

Article 15 to the contrary, any “profit” form the assignment of this Lease

Agreement or a subletting of the Premises shall be shared equally between

Landlord and Tenant.  In any event no

assignment or subletting, including to an Affiliate or Acquiring Entity of

Tenant, shall release Tenant of its obligation to pay the rent and to perform

all other obligations to be performed by Tenant hereunder for the Term of this

Lease Agreement.  The acceptance of rent

by Landlord from any other person shall not be deemed to be a waiver by

Landlord of any provision hereof.  At

Landlord’s option and with the exception of an assignment or subletting to an

Affiliate of Tenant or an assignment to an Acquiring Entity of Tenant, Landlord

may terminate the Lease Agreement in lieu of giving its consent to any proposed

assignment of this Lease Agreement or subletting of all of the Premises (which

termination may be contingent upon the execution of a new lease with the

proposed assignee or subtenant).

B.    Landlord’s right to assign this Lease Agreement

is and shall remain unqualified upon any sale or transfer of the Building and,

providing the purchaser succeeds to the interests of Landlord under this Lease

Agreement, Landlord shall thereupon be entirely freed of all obligations of the

Landlord hereunder and shall not be subject to any liability resulting from any

act or omission or event occurring after such conveyance.

ARTICLE 16 - LOSS BY CASUALTY

If the Building is either

destroyed by fire or other casualty or damaged to such an extent that such damage

cannot reasonably be repaired within ninety (90) days, the Landlord shall have

the right to terminate this Lease Agreement, provided it gives written notice

thereof to the Tenant within ninety (90) days after such damage or destruction.  If a portion of the Premises is damaged by

fire or other casualty, and Landlord does not elect to terminate this Lease

Agreement, the Landlord shall, at its expense, restore the Premises to as near

the condition which existed immediately prior to such damage or destruction, as

reasonably possible, and the rentals shall abate during such period of time as

the Premises are untenantable, in the proportion that the untenantable portion

of the Premises bears to the entire Premises. 

Notwithstanding the foregoing, if the Premises are not, in fact, so

restored by Landlord within two hundred ten (210) days of the date of such fire

or other casualty, Tenant shall have the right to terminate this Lease

Agreement by giving written notice of termination to Landlord no later than fifteen

(15) days following the end of said two hundred ten (210) day period.

ARTICLE 17 - WAIVER OF SUBROGATION

Landlord and Tenant

hereby release the other from any and all liability or responsibility to the

other or anyone claiming through or under them by way of subrogation or

otherwise for any loss or damage to property caused by fire or any of the

extended coverage or supplementary contract casualties, even if such fire or

other casualty shall have been caused by the fault or negligence of the other party,

or anyone for whom such party may be responsible.

ARTICLE 18 - EMINENT DOMAIN

If the entire Building is

taken by eminent domain, this Lease Agreement shall automatically terminate as

of the date of taking.  If a portion of

the Building itself or a material portion of the land accompanying the Building

is taken by eminent domain, the Landlord shall have the right to terminate this

Lease Agreement, provided it gives written notice thereof to the Tenant within

ninety (90) days after the date of taking. 

If all or such a significant portion of Tenant’s Premises within the

Building are taken by eminent domain so that the remaining portion thereof is

not suitable for the conduct of Tenant’s business as determined in the

commercially reasonable judgment of the parties, then Tenant shall have the

right to terminate this Lease Agreement provided it gives written notice to

Landlord within sixty (60) days of the date of taking.   If a portion of the Premises is taken by

eminent domain and this Lease Agreement is not terminated by either Landlord or

Tenant as provided above, the Landlord shall, at its expense, restore the

Premises to as near the condition which existed immediately prior to the date

of taking as reasonably possible, and the rentals shall abate during such

period of time as the Premises are untenantable, in the proportion that the

untenantable portion of the Premises bears to the entire Premises.  Further, in the event the rentable square

footage of the Premises is reduced as a result of such taking, there shall be a

proportionate adjustment in the rentals thereafter coming due under this Lease

Agreement.  All damages awarded for such

taking under the power of eminent domain shall belong to and be the sole

property of Landlord, irrespective of the basis upon which they are awarded,

provided, however, that nothing contained herein shall prevent Tenant from

making a separate claim to the condemning authority for its moving expenses and

trade fixtures.  For purposes of this

Article, a taking by eminent domain shall include Landlord’s giving of a deed

under threat of condemnation.

ARTICLE 19 - SURRENDER

                On the last day of the Term of this Lease Agreement

or on the sooner termination thereof in accordance with the terms hereof,

Tenant shall peaceably surrender the Premises in good condition and repair

consistent with Tenant’s duty to make repairs as provided in Article 9

hereof.  On or before said last day,

Tenant shall at its expense remove all of its equipment from the Premises,

repairing any damage caused thereby, and any property not removed shall be

deemed abandoned.  All alterations,

additions and fixtures other than Tenant’s trade fixtures, which have been made

or installed by either Landlord or Tenant upon the Premises shall remain as

Landlord’s property and shall be surrendered with the Premises as a part

thereof, or shall be removed by Tenant, at the option of Landlord, in which

event Tenant shall at its expense repair any damage caused thereby; provided,

however, Tenant shall have no obligation hereunder to remove any of the

improvements to the Premises existing as of the date hereof or to remove any

alteration, addition or improvement hereafter made to the Premises by or on

behalf of Tenant unless within ten (10) days following Tenant’s notice of such

alteration, addition or improvement under Article 12 above, Landlord notifies

Tenant that removal will be so required. 

It is specifically agreed that any and all telephonic, coaxial,

ethernet, or other computer, wordprocessing, facsimile, or electronic wiring

installed by Tenant within the Premises (hereafter “Wiring”) shall be removed at

Tenant’s cost at the expiration of the Term, unless Landlord has specifically

requested in writing that said Wiring shall remain, whereupon said Wiring shall

be surrendered with the Premises as Landlord’s property.  If the Premises are not surrendered at the

end of the Term or the sooner termination thereof, Tenant shall indemnify

Landlord against loss or liability resulting from delay by Tenant in so

surrendering the Premises, including, without limitation, claims made by any

succeeding tenant founded on such delay. 

Tenant shall promptly surrender all keys for the Premises to Landlord at

the place then fixed for payment of rental and shall inform Landlord of

combinations on any locks and safes on the Premises.

 

4

 

ARTICLE 20 - NON-PAYMENT OF RENT,

DEFAULTS

If any one or more of the

following occurs: (1) a rent payment or any other payment due from Tenant to

Landlord shall be and remain unpaid in whole or in part for more than ten (10)

days following written notice by Landlord to Tenant of non-payment, except that

if Landlord has given one (1) or more of such notices within the preceding

twelve (12) month period, no such prior notice need be given by Landlord and

Tenant shall be in default under this Lease Agreement if the payment is not

made by Tenant within ten (10) days of the date the same is due and payable;

(2) Tenant shall violate or default on any of the other covenants, agreements,

stipulations or conditions herein, or in any parking agreement(s) or other

agreements between Landlord and Tenant relating to the Premises, and such

violation or default shall continue for a period of thirty (30) days (or such

longer period of time, not to exceed an additional sixty (60) days, as is

reasonable under the circumstances if the violation or default is of the type

that cannot reasonably be cured within thirty (30) days and Tenant promptly

commences such cure and at all time diligently pursues same) after written

notice from Landlord of such violation or default; or (3) if Tenant shall

commence or have commenced against Tenant proceedings under a bankruptcy,

receivership, insolvency or similar type of action, provided, however, in the

case of any involuntary proceedings, Tenant shall have a period of sixty (60)

days to have such proceedings dismissed; then it shall be optional for

Landlord, without further notice or demand, to cure such default or to declare

this Lease Agreement forfeited and the said Term ended, or to terminate only

Tenant’s right to possession of the Premises, and to re-enter the Premises,

with or without process of law, using such force as may be necessary to remove

all persons or chattels therefrom, and Landlord shall not be liable for damages

by reason of such re-entry or forfeiture; but notwithstanding re-entry by

Landlord or termination only of Tenant’s right to possession of the Premises,

the liability of Tenant for the rent and all other sums provided herein shall

not be relinquished or extinguished for the balance of the Term of this Lease

Agreement and Landlord shall be entitled to periodically sue Tenant for all

sums due under this Lease Agreement or which become due prior to judgment,  but such suit shall not bar subsequent suits

for any further sums coming due thereafter. 

Tenant shall be responsible for, in addition to the rentals and other

sums agreed to be paid hereunder, the cost of any necessary maintenance, repair,

restoration, reletting (including related cost of removal or modification of

tenant improvements consistent with office use) or cure as well as reasonable

attorney’s fees incurred or awarded in any suit or action instituted by

Landlord to enforce the provisions of this Lease Agreement, regain possession

of the Premises, or the collection of the rentals due Landlord hereunder.  Tenant shall also be liable to Landlord for

the payment of a late charge in the amount of ten percent (10%) of the rental

installment or other sum due Landlord hereunder if said payment has not been

received within ten (10) days from the date said payment becomes due and

payable, or cleared by Landlord’s bank within three (3) business days after

deposit.  Tenant agrees to pay interest

at the rate of twelve percent (12%) per annum or the maximum permissible rate

under the applicable usury statutes, whichever is less, on all rentals and

other sums due Landlord hereunder not paid within ten (10) days from the date

same become due and payable.  Each right

or remedy of Landlord provided for in this Lease Agreement shall be cumulative

and shall be in addition to every other right or remedy provided for in this

Lease Agreement now or hereafter existing at law or in equity or by statute or

otherwise.

ARTICLE 21 - LANDLORD’S DEFAULT

Landlord shall not be

deemed to be in default under this Lease Agreement until Tenant has given

Landlord written notice specifying the nature of the default and Landlord does

not cure such default within thirty (30) days after receipt of such notice or within

such reasonable time thereafter as may be necessary to cure such default where

such default is of such a character as to reasonably require more than thirty

(30) days to cure.

ARTICLE 22 - HOLDING OVER

Tenant

will, at the expiration of this Lease Agreement, whether by lapse of time or

termination, give up immediate possession to Landlord.  If Tenant fails to give up possession the

Landlord may, at its option, serve written notice upon Tenant that such

holdover constitutes any one of (i) creation of a month-to-month tenancy, or

(ii) creation of a tenancy at sufferance. 

If Landlord does not give said notice, Tenant’s holdover shall create a

tenancy at sufferance.  In any such event

the tenancy shall be upon the terms and conditions of this Lease Agreement,

except that the Minimum Rental shall be one hundred fifty percent (150%) of the

Minimum Rental Tenant was obligated to pay Landlord under this Lease Agreement

immediately prior to termination (in the case of tenancy at sufferance such

Minimum Rental shall be prorated on the basis of a 365 day year for each day

Tenant remains in possession); excepting further that in the case of a tenancy

at sufferance, no notices shall be required prior to commencement of any legal

action to gain repossession of the Premises. 

In the case of a tenancy at sufferance, Tenant shall also pay to

Landlord all damages sustained by Landlord resulting from retention of

possession by Tenant.  The provisions of

this Article shall not constitute a waiver by Landlord of any right of re-entry

as otherwise available to Landlord; nor shall receipt of any rent or any other

act in apparent affirmance of the tenancy operate as a waiver of the right to

terminate this Lease Agreement for a breach by Tenant hereof.

ARTICLE 23 - SUBORDINATION

Tenant agrees that this

Lease Agreement shall be subordinate to any mortgage(s) that may now or

hereafter be placed upon the Building or any part thereof, and to any and all

advances to be made thereunder, and to the interest thereon, and all renewals,

replacements, and extensions thereof, provided the Mortgagee named in any such

mortgage shall agree to recognize this Lease Agreement and not disturb Tenant’s

rights hereunder in the event of foreclosure provided the Tenant is not in

default.  This subordination and

non-disturbance shall be self-operative and no further certificate or

instrument of subordination need be required by any such Mortgagee.  In confirmation of such subordination and

non-disturbance, however, Tenant shall promptly execute and deliver any

instrument, in recordable form, as required by Landlord’s Mortgagee.  In the event of any Mortgagee electing to

have the Lease Agreement a prior encumbrance to its mortgage, then and in such

event upon such Mortgagee notifying Tenant to that effect, this Lease Agreement

shall be deemed prior in encumbrance to the said mortgage, whether this Lease

Agreement is dated prior to or subsequent to the date of said mortgage.

ARTICLE 24 - INDEMNITY, INSURANCE

AND SECURITY

                A.    Tenant

will keep in force at its own expense for so long as this Lease Agreement

remains in effect public liability insurance with respect to the Premises in

which Landlord shall be named as an additional insured, in companies and in

form acceptable to Landlord with a minimum combined limit of liability of Two

Million Dollars ($2,000,000.00).  This

limit shall apply per location.  Said

insurance shall also provide for contractual liability coverage by endorsement.  Tenant shall further provide for business

interruption insurance to cover a period of not less than six (6) months.  Tenant will further deposit with Landlord

the policy or policies of such insurance or certificates thereof, or other

acceptable evidence that such insurance is in effect, which evidence shall

provide that Landlord shall be notified in writing thirty (30) days prior to

cancellation, material change, or failure to renew the insurance.  Subject to Article 17 hereof with respect to

damage to property and except to the extent caused by the negligence or willful

misconduct of the party seeking indemnification, each party covenants and

agrees to indemnify and hold the other party (including in the case of Tenant

as the indemnifying party, Landlord’s property manager) harmless for any claim,

loss or damage, including reasonable attorney’s fees, suffered by the other

party or such property manager caused by: i) any act or omission by the

indemnifying party, its employees, contractors or agents in, at, or around the

Premises or the Building; ii) the conduct or management of any work or thing

whatsoever done by the indemnifying party, its contractors, agents or employees

in or about the Premises or the Building; or iii) the indemnifying party’s

failure to comply with any and all Laws in breach or violation of Tenant’s

obligations under Article 10 of this Lease Agreement in the case of Tenant as

the indemnifying party or that are applicable to the Building (exclusive of the

Premises) in the case of Landlord as the indemnifying party.  The parties’ respective indemnity

obligations under this Article 24 shall survive the expiration or earlier

termination of this Lease Agreement.  If

Tenant shall not comply with its covenants made in this Article 24, Landlord

may, at its option upon fifteen (15) days’ prior written notice to Tenant,

cause insurance as aforesaid to be issued and in such event Tenant agrees to

pay the premium for such insurance promptly upon Landlord’s demand.

B.    Tenant shall be responsible for the security

and safeguarding of the Premises and all property kept, stored or maintained in

the Premises.  Landlord will make

available to Tenant, at Tenant’s request, the plans and specifications for

construction of the Building and the Premises. The placement and sufficiency of

all safes, vaults, cash or security drawers, cabinets or the like placed upon

the Premises by Tenant shall be at the sole responsibility and risk of

Tenant.  Tenant shall maintain in force

throughout the Term, insurance upon all contents of the Premises, including

that owned by others and Tenant’s equipment and any alterations, additions,

fixtures, or improvements in the Premises acknowledged by Landlord to be the

Tenant’s.

 

5

 

C.    Landlord shall carry and cause to be in full

force and effect a fire and extended coverage insurance policy on the Building,

but not contents owned, leased or otherwise in possession of Tenant.  The cost of such insurance shall be an

Operating Expense.

ARTICLE 25 - NOTICES, DEMANDS AND

OTHER INSTRUMENTS

All notices, demands,

requests, consents, approvals and other instruments required or permitted to be

given pursuant to the terms of this Lease Agreement shall be in writing and

shall be deemed to have been properly given if (a) with respect to Tenant, sent

by registered mail, postage prepaid, or sent by telegram, overnight express

courier, facsimile followed by overnight express delivery or delivered by hand,

in each case addressed to Tenant at the address for the Premises, and (b) with

respect to Landlord, sent by registered mail, postage prepaid, or sent by

telegram, overnight express courier, facsimile followed by overnight express

delivery or delivered by hand in each case, addressed to Landlord at its

address first above set forth along with a copy to any Mortgagee, if Tenant has

been advised of the address for such Mortgagee, delivered in the same manner;

provided however that in no event shall Minimum Rental or Additional Rental be

deemed to have been made, given or delivered until actually received by

Landlord.  Landlord and Tenant shall

each have the right from time to time to specify as its address for purposes of

this Lease Agreement any other address in the United States of America upon

fifteen (15) days’ written notice thereof, similarly given, to the other party

and any Mortgagee.

ARTICLE 26 - APPLICABLE LAW

This Lease Agreement

shall be construed under the laws of the State of Minnesota.

ARTICLE 27 - MECHANICS’ LIEN

In the event any

mechanic’s lien shall at any time be filed against the Premises or any part of

the Building by reason of work, labor, services or materials performed or

furnished to Tenant or to anyone holding the Premises through or under Tenant,

Tenant shall forthwith cause the same to be discharged of record or if

contested by appropriate proceedings, bonded over.  If Tenant shall fail to cause such lien forthwith to be so

discharged or bonded over within twenty (20) days after being notified of the

filing thereof, then, in addition to any other right or remedy of Landlord,

Landlord may, but shall not be obligated to, discharge the same by paying the

amount claimed to be due, or by bonding, and the amount so paid by Landlord and

all costs and expenses, including reasonable attorney’s fees incurred by

Landlord in procuring the discharge of such lien, shall be due and payable in

full by Tenant to Landlord on demand.

ARTICLE 28 - QUIET ENJOYMENT

Landlord covenants that

it has the right to make and enter into this Lease Agreement for the Term

hereof and covenants that so long as Tenant complies with its obligations under

this Lease Agreement, Tenant shall, during the Term of this Lease Agreement or

any extensions thereof, peaceably and quietly occupy and enjoy the Premises

subject, however, to the express provisions of this Lease Agreement.

ARTICLE 29 - BROKERAGE

Each of the parties

represents and warrants that except only as may be provided below in this

Article 29, there are no claims for brokerage commissions or finder’s fees

(collectively “Leasing Commissions”) in connection with this Lease Agreement,

and agrees to indemnify the other party against, and hold it harmless from all

liabilities arising from any claim for Leasing Commissions asserted by a

broker, agent or other person or entity claiming through the indemnifying

party, including without limitation, the cost of attorney’s fees in connection

therewith.  Landlord agrees to pay any

Leasing Commission payable to Landlord’s broker, United Properties Brokerage

LLC on account of this Lease Agreement. 

Landlord further agrees to pay a Leasing Commission to Tenant’s broker,

CB Richard Ellis, Inc. in the total amount of $9,850.50 ($1.50 per rentable

square foot of Premises), payable one half (1/2) upon full execution of this

Lease Agreement and one half (1/2) upon occupancy of the Premises by Tenant and

the commencement of Tenant’s obligation to pay Minimum Rental therefor.

ARTICLE 30 - SUBSTITUTION

Landlord reserves the

right, on thirty (30) days written notice to Tenant, to substitute other

premises within the Building for the Premises hereunder.  The substituted premises shall contain

substantially the same square footage as the Premises, shall contain comparable

improvements, and the Minimum Rental shall not exceed the Minimum Rental per

rentable square foot specified in Article 3 hereof.  Upon presentation to Landlord of paid receipts or other

reasonable evidence of payment by Tenant, Landlord shall reimburse Tenant for

the reasonable out-of-pocket costs and expenses actually incurred by Tenant in

moving to the substituted premises, including the cost of a reasonable supply

of replacement stationery.

ARTICLE 31 - ESTOPPEL CERTIFICATES

AND FINANCIAL STATEMENTS

Each party hereto agrees

that at any time, and from time to time during the Term of this Lease Agreement

(but not more often than twice in each calendar year), within ten (10) days

after request by the other party hereto, it will execute, acknowledge and

deliver to such other party or to any prospective purchaser, assignee or

mortgagee designated by such other party, an estoppel certificate in a form

acceptable to Landlord.  Tenant agrees

that unless its annual report is readily available to the public, Tenant will

provide Landlord (but not more often than twice in any calendar year), within

ten (10) days of request, the then most current financial statements of Tenant and

of any guarantors of this Lease Agreement which may subsequently guarantee this

Lease Agreement, which shall be certified by Tenant, and if available, shall be

audited and certified by a certified public accountant.  Landlord shall keep such financial statements

confidential, except Landlord shall, in confidence, be entitled to disclose

such financial statements to existing or prospective Mortgagees or purchasers

of the Building.

ARTICLE 32 - GENERAL

                This Lease Agreement does not create the relationship

of principal and agent or of partnership or of joint venture or of any

association between Landlord and Tenant, the sole relationship between Landlord

and Tenant being that of landlord and tenant. 

No waiver of any default of Tenant hereunder shall be implied from any

omission by Landlord to take any action on account of such default if such

default persists or is repeated, and no express waiver shall affect any default

other than the default specified in the express waiver and that only for the

time and to the extent therein stated. 

The covenants of Tenant to pay the Minimum Rental and the Additional

Rental are each independent of any other covenant, condition, or provision

contained in this Lease Agreement.  The

marginal or topical headings of the several Articles, paragraphs and clauses

are for convenience only and do not define, limit or construe the contents of

such Articles, paragraphs or clauses. 

All preliminary negotiations are merged into and incorporated in this

Lease Agreement.  This Lease Agreement

can only be modified or amended by an agreement in writing signed by the

parties hereto.  All provisions hereof

shall be binding upon the heirs, successors and assigns of each party hereto.  If any term or provision of this Lease

Agreement shall to any extent be held invalid or unenforceable, the remainder

shall not be affected thereby, and each other term and provision of this Lease

Agreement shall be valid and be enforced to the fullest extent permitted by

law.  If Tenant is a legal entity, each

individual executing this Lease Agreement on behalf of said entity represents

and warrants that he is duly authorized to execute and deliver this Lease

Agreement on behalf of said entity in accordance with a duly adopted resolution

of the governing body of said entity or in accordance with the organizational

documents of said entity, and that this Lease Agreement is binding upon said

entity in accordance with its terms.  No

receipt or acceptance by Landlord from Tenant of less than the monthly rent

herein stipulated shall be deemed to be other than a partial payment on account

for any due and unpaid stipulated rent; no endorsement or statement of any

check or any letter or other writing accompanying any check or payment of rent

to Landlord shall be deemed an accord and satisfaction, and Landlord may accept

and negotiate such check or payment without prejudice to Landlord’s rights to

(i) recover the remaining balance of such unpaid rent or (ii) pursue any other

remedy provided in this Lease Agreement. 

Neither party shall record this Lease Agreement or any memorandum

thereof, and any such recordation shall be a breach of this Lease Agreement

void, and without effect.  Time is of

the essence with respect to the due performance of the terms, covenants and

conditions herein contained.  Submission

of this instrument for examination does not constitute a reservation of or

option for the Premises, and this Lease Agreement shall become effective only

upon execution and delivery thereof by Landlord and Tenant.

 

6

 

ARTICLE 33 - SECURITY DEPOSIT

Upon the execution

hereof, Tenant agrees to pay Landlord the sum of $22,130.79 (the “Security

Deposit”) to guarantee the payment of rent and the performance by

Tenant of all the terms of this Lease Agreement. Such amount held as a Security

Deposit shall bear no interest.  Upon

the occurrence of any default hereunder by Tenant, Landlord may use said

Security Deposit to the extent necessary to cure such default, whether rent or

otherwise.  Any remaining balance of

said Security Deposit shall be returned to Tenant upon compliance with the

terms hereof and acceptance of the vacated Premises by Landlord.  Tenant understands that its potential

liability under this Lease Agreement is not limited to the amount of the

Security Deposit.  Use of such Security

Deposit by Landlord shall not constitute a waiver, but is in addition to other

remedies available to Landlord under this Lease Agreement and under law.  Upon the use of all or any part of the Security

Deposit to cure any default of Tenant, Tenant shall forthwith deposit with

Landlord the amount of Security Deposit so used.

ARTICLE 34 - EXCULPATION

Tenant agrees to look

solely to Landlord’s interest in the Building for the recovery of any judgment

from Landlord, it being agreed that Landlord and Landlord’s partners, whether

general or limited (if Landlord is a partnership) or its directors, governors,

officers, managers, members or shareholders (if Landlord is a limited liability

company or corporation), shall never be personally liable for any such

judgment.

ARTICLE 35 - SUBMISSION

                Submission of this Lease Agreement by

Landlord to Tenant for examination and/or execution shall not in any manner

bind Landlord and no obligations on Landlord shall arise under this Lease

Agreement unless and until this Lease Agreement is fully signed and delivered

by Landlord and Tenant; provided, however, the execution and delivery by Tenant

of this Lease Agreement to Landlord shall constitute an irrevocable offer by Tenant

of the terms and conditions herein contained, which offer may not be revoked

for thirty (30) days after such delivery.

IN WITNESS WHEREOF this Lease Agreement has been duly executed by the

parties hereto as of the day and year indicated above.

 

	

  TENANT:

  CORVU CORPORATION

  	

   

  	

  LANDLORD: UNITED PROPERTIES

                     INVESTMENT LLC

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Its:

  	

   

  	

   

  	

   

  	

  Its:

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Its:

  	

   

  	

   

  	

   

  	

  Its:

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Date: August __, 2002

  	

   

  	

  Date: August __, 2002

  

 

 

 

LIST OF EXHIBITS

Exhibit A-1 (depiction of office layout)

Exhibit A-2

(depiction of building layout)

Exhibit B

 

 

7

 

EXHIBIT B

 

OPERATING EXPENSE EXCLUSIONS

 

Notwithstanding anything in the Lease Agreement to the

contrary, the following shall be excluded from Operating Expenses under the

Lease Agreement:

 

	

  (i)

  	

   

  	

  Attorney’s fees, costs

  and disbursements and other expenses incurred in connection with negotiations

  or disputes with tenants, other occupants, or prospective tenants or

  occupants of the Building or Complex;

  
	

   

  	

   

  	

   

  
	

  (ii)

  	

   

  	

  Costs of correcting

  defects in the design or construction of the Premises, Building or Complex

  (including latent defects in the Premises, Building or Complex) or in the

  equipment thereon, except that conditions resulting from ordinary wear and

  tear shall not be deemed defects;

  
	

   

  	

   

  	

   

  
	

  (iii)

  	

   

  	

  Costs in excess of

  $50,000.00 relating to Hazardous Materials (as defined in Article 34 of the

  Lease Agreement) or any costs relating to Hazardous Materials to the extent

  Landlord is reimbursed by insurance proceeds, except to the extent caused,

  installed, disposed of or released by Tenant.  Landlord agrees that any Hazardous Materials costs that are

  otherwise includable in Operating Expenses shall be allocated in the

  commercially reasonable judgment of Landlord to and among the Building and

  the other buildings in the Complex;

  
	

   

  	

   

  	

   

  
	

  (iv)

  	

   

  	

  Costs relating to the

  breach of any warranty, representation or covenant of Landlord under this

  Lease Agreement;

  
	

   

  	

   

  	

   

  
	

  (v)

  	

   

  	

  Any management fees in

  excess of 5% of the gross rents for the period in question;

  
	

   

  	

   

  	

   

  
	

  (vi)

  	

   

  	

  Interest on debt or

  payments on any mortgage, and rental under any ground or underlying leases;

  
	

   

  	

   

  	

   

  
	

  (vii)

  	

   

  	

  Depreciation and

  amortization, except as may be expressly provided for in this Article 6;

  
	

   

  	

   

  	

   

  
	

  (viii)

  	

   

  	

  Costs which under

  generally accepted accounting principles, consistently applied, are

  capitalized (except as provided for in the Lease Agreement);

  
	

   

  	

   

  	

   

  
	

  (ix)

  	

   

  	

  Costs of Landlord’s

  general corporate and/or partnership overhead and general administrative

  expenses which would not be chargeable to operating costs of the Building or

  Complex in accordance with generally accepted accounting principles,

  consistently applied;

  
	

   

  	

   

  	

   

  
	

  (x)

  	

   

  	

  All items and services

  for which Tenant is expressly required under this Lease Agreement to pay to

  third parties;

  
	

   

  	

   

  	

   

  
	

  (xi)

  	

   

  	

  Costs incurred in

  leasing, advertising for the Building or Complex or other marketing or

  promotional activity specifically and primarily designed for marketing space

  in the Building or Complex;

  
	

   

  	

   

  	

   

  
	

  (xii)

  	

   

  	

  Salaries and bonuses of

  officers and executives of Landlord above the level of building manager;

  
	

   

  	

   

  	

   

  
	

  (xiii)

  	

   

  	

  Any bad debt expense or

  bad debt reserve;

  
	

   

  	

   

  	

   

  
	

  (xiv)

  	

   

  	

  All interest and

  penalties incurred as a result of Landlord’s failure to pay any costs as the

  same shall come due;

  
	

   

  	

   

  	

   

  
	

  (xv)

  	

   

  	

  Cost of tenant

  improvements;

  
	

   

  	

   

  	

   

  
	

  (xvi)

  	

   

  	

  Costs of services,

  repairs or maintenance paid for by proceeds of insurance or by other tenants

  or third parties;

  
	

   

  	

   

  	

   

  
	

  (xvii)

  	

   

  	

  Special services to

  other tenants (i.e., costs of electricity outside normal business hours sold

  to tenants of the Building by Landlord or any other special service whether

  or not Landlord receives reimbursement from such tenants as an additional

  charge);

  
	

   

  	

   

  	

   

  
	

  (xviii)

  	

   

  	

  Costs arising from the

  negligence or intentional misconduct of Landlord or Landlord’s agents;

  
	

   

  	

   

  	

   

  
	

  (xix)

  	

   

  	

  Repairs or other work

  occasioned by fire, windstorm or other casualty to the extent that the costs

  thereof are reimbursed to Landlord by insurers (or would have been reimbursed

  had the insurance required of Landlord under the Lease Agreement been

  maintained), or by governmental authorities in eminent domain;

  
	

   

  	

   

  	

   

  
	

  (xx)

  	

   

  	

  Leasing commissions;

  
	

   

  	

   

  	

   

  
	

  (xxi)

  	

   

  	

  All costs incurred in

  connection with or directly related to the original construction (as

  distinguished from operation, repair or maintenance) of the Building;

  
	

   

  	

   

  	

   

  
	

  (xxii)

  	

   

  	

  Legal and other fees,

  leasing commissions, advertising expenses and other costs incurred in

  connection with acquisition or original development or original leasing of

  the Building;

  

 

 

8Exhibit 10.18

 

GlobalNet Venture

Partners, L.L.C.

1051 Post Road

Darien, CT 06820

www.globalnetpartners.com

 

 

June 19, 2002

 

Mr. Justin MacIntosh,

Chairman and C.E.O.

CorVu Corporation

3400 West 66th Street

Suite 445

Edina, MN 55435

United States

 

Letter Agreement

 

Dear Justin:

 

I very much enjoyed the opportunity to meet

you and your colleagues and to get better acquainted with CorVu.  Both the Board meeting and the shareholders

meeting were useful as well in getting a sense of the challenges facing the organization.

 

Based on that and on subsequent conversations

with you and John, I think this represents our agreement to go forward.

 

1)             Engagement; Due Diligence: GlobalNet will

undertake a due diligence review of CorVu (“the Company”) during a four week period

commencing with the signing of this letter agreement (“Agreement”). Subject to

our due diligence findings, GlobalNet will undertake a 30-month engagement with

CorVu, and I would be available as part of the GlobalNet team to take the Board

Chairmanship or similar leadership position for the initial 24 months of the

engagement.  During that time I would

direct and focus the efforts of several other GlobalNet partners to assist me

in helping CorVu meet the objectives and carry out the services stated in Paragraph

2).

.

2)             Scope of Services: GlobalNet

will use its best efforts to:

 

a)              Perform a thorough review of

the balance sheet, outstanding options and warrants and review all SEC/auditor

statements to ensure the CorVu is in compliance and strategically positioned

properly from a balance sheet perspective.

 

b)             Analyze, evaluate and make

recommendations regarding the current float of the stock and put forth a

strategic implementation plan to bring value back into the stock price (e.g.

possibility of reducing founder holdings, reverse splits, new issuances, etc.),

review opportunity to privatize and get CorVu off the OTC market.

 

 

c)              Identify and meet with

brokers, market makers, analysts and institutional entities, and media to

effectively communicate the value and vision of CorVu to help increase

shareholder value.

 

d)             Collaborate with you and

other senior managers as appropriate to set strategy and vision and provide

leadership for CorVu, and assist in putting together an advisory board of

financial, technology and other industry professionals to provide insight,

advice, and marketing assistance.

 

e)              Assist in developing

customer relationships and in identifying, qualifying, and closing partner

relationships and other strategic associations.

 

f)                Investigate, identify,

introduce and help negotiate possible merger and acquisition targets and

financing sources.

 

g)             Help refine and further

develop a broader publicity and investor relations communications program to

enhance current briefings and to provide institutional, strategic and

individual investors, clients and partners with a sustained communications

effort.

 

3)             Remuneration of GlobalNet:

 

a)              For the

services rendered, CorVu shall pay to GlobalNet a one-time engagement fee of

fifty thousand dollars ($50,000), payable $25,000 at the signing of this

Agreement and $25,000 on the completion of due diligence, whether or not

GlobalNet, as a result of its due diligence, decides to go forward. Thereafter,

assuming GlobalNet is proceeding with the engagement, the Company agrees to pay

GlobalNet at a monthly rate equal to $26,500 per month, payable as follows:

$16,500 per month for the initial six months of the engagement commencing on

the first day of the month following completion of due diligence, $36,500 per month

for the next 6 months, and $26,500 per month for the next 18 months, provided

that if this Agreement is terminated by either party, the $10,000 per month

that is deferred in the first six months will be paid promptly to the extent it

has not been recouped during the six month payments of $36,500.

 

b)             The Company shall pay to GlobalNet eight percent

(8%) in cash and eight percent (8%) in options, for any equity financing and 4%

in cash (no options) for any debt financing sourced by GlobalNet, payable as funds

are actually received by the Company.

 

c)              For any customer relationships introduced or

developed by GlobalNet resulting in revenue contracts for CorVu, the Company

shall pay to GlobalNet eight percent (8%) of the revenue received by CorVu for

the first three years from the date of signing the customer contract. For

strategic partnerships introduced or developed by GlobalNet, the Company shall

pay to GlobalNet eight percent (8%) of the revenue generated by such

relationships over the first two years from the date of the inception of the

partnership, and four percent (4%)  for

the third year, payment to be made as funds are received by the Company.

 

 

2

 

d)             In the event that during the term of this engagement

GlobalNet introduces CorVu to any party which acquires CorVu (i.e., purchases

all or substantially all of the assets or outstanding equity) or merges or

consolidates with CorVu, then GlobalNet shall be entitled to a transaction fee

based on the total consideration exchanged between CorVu and such party , as

follows:

 

5% of the first $5 million,

4% of the next $5 million,

3% of the next $5 million,

2% of the next $5 million,

1% of the balance.

 

GlobalNet agrees to take its fee in whatever

the form of consideration received by CorVu or its shareholders in the

transaction; provided that if cash is a sufficient portion of the consideration

received by CorVu, GlobalNet may elect to take all of its compensation in cash.

 

e)              As to subparagraphs (b), (c), and (d) above, CorVu

agrees to pay the specified fees (for the time specified as to (b) and (c)), if

within twelve months after termination of this Agreement CorVu enters into a

transaction substantially similar to a transaction proposed by GlobalNet with a

company introduced by GlobalNet.

 

f)                All compensation contemplated by this

Agreement is paid to GlobalNet.  My

services are included in GlobalNet’s compensation and CorVu will not be

obligated to me personally for any additional compensation.

 

4)             Utilization

of additional GlobalNet resources:  It is understood that John Bohn will devote sufficient time, but

not full time, to perform these services, and that other GlobalNet members will

be called upon to support these efforts. Such additional support may be

separately compensated as mutually agreed by GlobalNet and CorVu.

5)             Expenses:  All expenses incurred by

GlobalNet in the  performance of its

duties shall be paid by CorVu. CorVu agrees that CorVu’s professional,

promotional and related expenses will continued to be paid by CorVu.

 

6)             Termination:

 

a)              GlobalNet may terminate this

Agreement by written notice to Company that it does not wish to proceed with

this engagement upon completion of GlobalNet’s due diligence, in which event

GlobalNet shall be entitled only to the $50,000 initial engagement fee.  In such event, GlobalNet will issue a report

to the  Company detailing its due

diligence findings and its suggestions and recommendations respecting improving

Company’s business opportunities and shareholder value, and commenting on such

other matters as GlobalNet determines based on its due diligence.

 

 

3

 

b)             Either party may terminate

GlobalNet’s consulting services being performed pursuant to this Agreement upon

60 days’ written notice.  In such event

GlobalNet shall be entitled to all remuneration due and owing up to and

including the date of termination, and thereafter the fees specified in

Paragraphs 3(b), (c), and (d) per the provisions of Paragraph 3(e).  Further, for nominal, “follow-on” services

subsequent to termination, GlobalNet shall continue to receive a monthly fee of

$1,500 through the payment to be made on July 1, 2005, unless the parties

otherwise mutually agree.

 

c)              CorVu agrees to indemnify and hold harmless

GlobalNet and its officers, directors, employees and agents (“GlobalNet

Indemnified Parties”) from claims against the GlobalNet Indemnified Parties

arising out of any act or omission on the part of the CorVu Indemnified

Parties.  GlobalNet agrees to indemnify

and hold harmless CorVu and its officers, directors, employees and agents

(“CorVu Indemnified Parties”) from claims against the CorVu Indemnified Parties

arising out of any act or omission which are determined to result only from

gross negligence or intentional wrongdoing on the part of GlobalNet Indemnified

Parties.

 

d)             At all times during the period during which I serve

as an officer and/or a member of its Board of Directors, CorVu agrees to

maintain in full force and effect D&O insurance having a minimum limit of

$3 million.

 

I understand that the

company will not elect me to a position until our due diligence has been

completed and GlobalNet has determined to proceed.  Karen Morgan and I look forward to getting started.

 

Sincerely,

 

	

  GLOBALNET VENTURE PARTNERS, L.L.C.

  
	

   

  	

   

  	

   

  
	

  By

  	

  /s/

  	

  John A. Bohn

  
	

   

  	

   

  	

  John A. Bohn

  
	

   

  	

   

  	

  Managing Member

  
	

   

  	

   

  	

   

  
	

  cc:

  	

   

  	

  John Stout

  
	

   

  	

   

  	

  Karen Morgan

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Agreed

  to, signed and dated:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  CORVU CORPORATION

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By 

  	

  /s/ 

  	

  Justin MacIntosh

  
	

   

  	

   

  	

   

  	

   

  	

  Justin MacIntosh

  
	

   

  	

   

  	

   

  	

   

  	

  Chairman and C.E.O

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Date:

  	

   

  	

  6/19/2002

  

 

 

4

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