Document:

Exhibit

10.3

 

AMENDMENT TO WHOLESALE SECURITY

AGREEMENT

 

THIS

AMENDMENT TO WHOLESALE SECURITY AGREEMENT (“Amendment”) is made as of the 25th

day of March, 2003 by and between TEXTRON FINANCIAL CORPORATION, a Delaware

corporation (“Secured Party”); and the undersigned, jointly and severally,

individually and collectively herein as Debtor.

 

WITNESSETH THAT:

 

WHEREAS, the Secured Party and Debtor are parties to a

certain Wholesale Security Agreement dated August 21, 2002 (the “Agreement”);

and

 

WHEREAS, the parties hereto desire to amend certain of

the terms of the Agreement;

 

NOW THEREFORE, in consideration of the premises and

the mutual obligations hereinafter contained, and for other good and valuable

consideration, the receipt whereof is hereby acknowledged, the parties hereto

agree as follows:

 

1.                                       The

Agreement is amended by adding a new section 6.1 as follows:

 

“Debtor further

represents, warrants, covenants, agrees and acknowledges that Debtor receives

good and valuable benefit and consideration from its relationship with

Fleetwood Enterprises, Inc. and as such represents, warrants, covenants, agrees

and acknowledges the failure of Fleetwood Enterprises, Inc. to  maintain the following financial covenants

shall be an Event of Default hereunder:

 

(a)          Fleetwood Enterprises,

Inc. shall achieve EBITDA for each period of four consecutive Fiscal Quarters

ended on the last day of each Fiscal Quarter set forth below of not less than

the amount set forth below opposite each such Fiscal Quarter:

 

	

  MINIMUM EBITDA

  	

   

  	

  Period Ending

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  $  2.5

  	

  Million

  	

   

  	

  On the last Sunday in

  April 2003

  	

   

  
	

  $  3.5

  	

  Million

  	

   

  	

  On the last Sunday in

  July 2003

  	

   

  
	

  $  2.5

  	

  Million

  	

   

  	

  On the last Sunday in

  October 2003

  	

   

  
	

  $29.5

  	

  Million

  	

   

  	

  On the last Sunday in

  January 2004

  	

   

  
	

  $60.0

  	

  Million

  	

   

  	

  On the last Sunday in

  April 2004

  	

   

  

 

(b)         On a consolidated basis,

Fleetwood Enterprises, Inc. shall at all times maintain Fleetwood Liquidity of

not equal to or less than Eighty Million Dollars ($80,000,000.00) for the most recent calendar month, of which

the Borrowers (on a stand alone basis) shall maintain at all times Borrower

Liquidity for the most recent calendar month of not equal to or less than Fifty

Million Dollars ($50,000,000.00).

 

(c)          Notwithstanding anything contained elsewhere herein, capitalized terms

in Sections 6.1(a) and (b) hereof shall have the meanings ascribed to them in

the Other Credit Facility (defined in Section 9(l) of the Agreement), as

amended, in the form of such Other Credit Facility and amendments thereto as

the same have been filed by Fleetwood Enterprises, Inc. with the Securities and

Exchange Commission prior to the date hereof.

 

Not

later than forty-five calendar days after the last day of each fiscal quarter,

or ninety calendar days after the last day of each fiscal year,  Fleetwood Enterprises, Inc. shall submit to

Secured Party a certificate stating that Debtor is in compliance with each of

the foregoing representations, covenants, and warranties (or, if applicable,

disclosing any non-compliance therewith), and showing such supporting information

as Secured Party may reasonably request. Each certificate shall be in form and

 

 

substance

reasonably satisfactory to Secured Party and signed by the chief financial

officer or chief accounting officer of Fleetwood Enterprises, Inc. (or such other

officer if acceptable to Secured Party in its sole discretion). The amounts and

calculations referred to above shall be determined as set forth in Sections

6.1(a) and (b) or in the definitions of defined terms contained therein, or

otherwise  in accordance with generally

accepted accounting principles consistently applied, excepting only as such

principles may be modified above, and Textron’s calculations shall be

conclusive absent manifest error.”

 

2.                                       The Agreement is further amended by deleting

Schedule 9(l) and substituting in lieu thereof the Revised Schedule 9(l)

attached hereto and incorporated herein by this reference.

 

3.                                       Condition Precedent. Execution and delivery to Secured Party by

Fleetwood Enterprises, Inc. of an Amendment to Manufactured Home Wholesale

Lender Agreement in substantially the form attached hereto as Exhibit 1 for

identification not later than 30 days after the date of this Amendment is an

express condition precedent to the effectiveness of this Amendment.

 

4.                                       Except as amended hereby, the Agreement

shall remain in full force and effect, and is in all respects hereby

ratified and affirmed.

 

 

IN WITNESS WHEREOF, the parties hereto have caused

this amendment to be executed by their duly authorized officer or

representative as of the day and year first above written.

 

	

  SECURED

  PARTY:

  	

   

  	

  DEBTOR:

  
	

   

  	

   

  	

   

  
	

  TEXTRON FINANCIAL CORPORATION, for  itself and as agent for its affiliates

  	

   

  	

  FLEETWOOD RETAIL CORP. OF ARKANSAS, an Arkansas

  corporation

  
	

   

  	

  FLEETWOOD RETAIL CORP. OF GEORGIA, a Georgia corporation

  
	

   

  	

   

  	

  FLEETWOOD RETAIL CORP. OF ILLINOIS, a Illinois

  corporation

  
	

  By: 

  	

    /s/  Brian Courtney

  	

   

  	

  FLEETWOOD RETAIL CORP. OF KANSAS, a Delaware

  corporation

  
	

  Print Name:

  	

  Brian Courtney

  	

   

  	

  FLEETWOOD RETAIL CORP. OF LOUISIANA, a Louisiana

  corporation

  
	

  Print Title:

  	

  VP, Credit

  	

   

  	

  FLEETWOOD RETAIL CORPORATION OF MISSOURI, a Missouri

  

  corporation

  
	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD RETAIL CORP. OF OHIO, a Ohio corporation

  
	

   

  	

   

  	

  FLEETWOOD HOME CENTERS OF NEVADA, INC., a Nevada

  corporation

  
	

   

  	

   

  	

  FLEETWOOD RETAIL CORP. OF OKLAHOMA, a Oklahoma corporation

  
	

   

  	

   

  	

  FLEETWOOD RETAIL CORP. OF SOUTH CAROLINA, a South

  Carolina corporation

  
	

   

  	

   

  	

  FLEETWOOD RETAIL CORP. OF WEST VIRGINIA, a West

  Virginia corporation

  
	

   

  	

   

  	

  FLEETWOOD RETAIL CORP. OF WASHINGTON, a Delaware

  corporation

  
	

  Secured Party’s address for notices:

  	

  P.O. Box 3090

  Alpharetta, GA 30023

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By: 

  	

  /s/  BOYD R.

  PLOWMAN

  
	

   

  	

   

  	

  Print Name:

  	

  BOYD R. PLOWMAN

  
	

   

  	

   

  	

  Print Title:

  	

  AS SR. V.P. FOR EACH OF THE FOREGOING DEBTORS

  
								

 

2

 

REVISED

SCHEDULE 9(L)

 

Capitalized terms not

defined in this Schedule shall have the meaning ascribed to them in the Other

Credit Facility as more particularly described in Section 6.1(c) above.

 

(a)                                  Fleetwood

Enterprises, Inc. shall achieve EBITDA for each period of four consecutive

Fiscal Quarters ended on the last day of each Fiscal Quarter set forth below of

not less than the amount set forth below opposite each such Fiscal Quarter:

 

	

  MINIMUM EBITDA

  	

   

  	

  Period Ending

  
	

   

  	

   

  	

   

  
	

  $  2.5

  	

  Million

  	

   

  	

  On the last Sunday in

  April 2003

  
	

  $  3.5

  	

  Million

  	

   

  	

  On the last Sunday in

  July 2003

  
	

  $  2.5

  	

  Million

  	

   

  	

  On the last Sunday in

  October 2003

  
	

  $29.5

  	

  Million

  	

   

  	

  On the last Sunday in

  January 2004

  
	

  $60.0

  	

  Million

  	

   

  	

  On the last Sunday in

  April 2004

  

 

(b)                                 On

a consolidated basis, Fleetwood Enterprises, Inc. shall at all times maintain

Fleetwood Liquidity of not equal to or less than Eighty Million Dollars ($80,000,000.00) for the most recent

calendar month, of which the Borrowers (on a stand alone basis) shall maintain

at all times Borrower Liquidity for the most recent calendar month of not equal

to or less than Fifty Million Dollars ($50,000,000.00).

 

3Exhibit 10.44

 

StarTek

Lease Summary

Regina, Saskatchewan

 

	
  Project:

  	
   

  	
  Cornwall
  Centre

  
	
   

  	
   

  	
   

  
	
  Landlord:

  	
   

  	
  Cornwall
  Centre Limited, c/o The Cadillac Fairview Corporation Limited, 20 Queen
  Street West, Toronto, Ontario M5H 3R4

  
	
   

  	
   

  	
   

  
	
  Tenant:

  	
   

  	
  StarTek
  Canada Services, Ltd.

  
	
   

  	
   

  	
   

  
	
  Premises:

  	
   

  	
  3r
  Floor, 61,988 SF

  
	
   

  	
   

  	
   

  
	
  Term:

  	
   

  	
  10
  years commencing 8/1/03, ending 7/31/2013

  
	
   

  	
   

  	
   

  
	
  Rent:

  	
   

  	
  8/03
  - 7/31/08: $69,736.50/mo. *

  
	
   

  	
   

  	
  8/08
  - 7/31/13: $74,902.I7/mo. *

  
	
   

  	
   

  	
  Tenant
  shall not pay rent from occupancy through 7/31/03

  
	
   

  	
   

  	
   

  
	
  Operating
  Expenses:

  	
   

  	
  8/03
  - 10/04: $.70/sf* with CPI adjustments thereafter. Tenant to reimburse
  Landlord for costs to maintain chillers, roof top units, boilers and elevator

  
	
   

  	
   

  	
   

  
	
  Taxes:

  	
   

  	
  Tenant
  shall not pay property taxes for years 1-5

  
	
   

  	
   

  	
   

  
	
  Utilities/Janitorial

  	
   

  	
  Paid
  direct by Tenant

  
	
   

  	
   

  	
   

  
	
  Security
  Deposit:

  	
   

  	
  $69,624*
  against first month’s rent

  
	
   

  	
   

  	
   

  
	
  Landlord
  Services:

  	
   

  	
  HVAC, elevator, electrical, gas, water service

  
	
   

  	
   

  	
   

  
	
  Tenant Services:

  	
   

  	
  Maintain
  lobby vestibule of elevator, janitorial service

  
	
   

  	
   

  	
   

  
	
  Alterations:

  	
   

  	
  Landlord
  approval not required if less than $20,000, however, Tenant shall notify
  Landlord. No overhead to be charged for work using Landlord contractor

  
	
   

  	
   

  	
   

  
	
  Restoration:

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Sublease/Assignment:

  	
   

  	
  No
  Landlord approval for sublease/consent to an affiliate, but notice required.
  Landlord shall have the right to recapture. Profits, net of costs, split
  evenly with Landlord

  
	
   

  	
   

  	
   

  
	
  Holdover:

  	
   

  	
  125%
  for first three (3) months, 150% thereafter

  
	
   

  	
   

  	
   

  
	
  Parking:

  	
   

  	
  225
  covered spaces, free for term

  

 

 

	
  Competition:

  	
   

  	
  Landlord
  shall not lease space to a Competitor as long as Tenant occupies 80% of
  Premises

  
	
   

  	
   

  	
   

  
	
  Option to Renew:

  	
   

  	
  Two
  (2), three (3) year options at market with twelve (12) month notice

  
	
   

  	
   

  	
   

  
	
  Tenant Improvement

  	
   

  	
  $14.00/sf*
  paid upon occupancy

  
	
  Allowance:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Building Sign:

  	
   

  	
  Canopy
  identification over 11th Avenue entry

  
	
   

  	
   

  	
   

  
	
  Tenant
  Base Building

  	
   

  	
  Tenant
  to contribute $150,000* toward cost of chillers

  
	
  Contribution:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Indemnification:

  	
   

  	
  StarTek,
  Inc. guarantees Lease

  

 

* Canadian Dollars

 

 

	
  

  

 

 

CORNWALL CENTRE

Regina, Saskatchewan

 

OFFICE LEASE

 

CORNWALL CENTRE LIMITED

(Landlord)

 

and

 

STARTEK CANADA SERVICES LTD.

(Tenant)

 

 

CORNWALL CENTRE

 

OFFICE LEASE

 

TABLE OF CONTENTS

 

	
  ARTICLE I - PREMISES, TERM AND USE

  
	
  Section 1.01 Grant and
  Premises

  
	
  Section 1.02
  Term

  
	
  Section 1.03
  Construction of Premises

  
	
  Section 1.04
  Use and Conduct of Business

  
	
   

  
	
  ARTICLE II -
  RENT

  
	
  Section 2.01 Covenant to
  Pay

  
	
  Section
  2.02 Net Rent

  
	
  Section 2.03
  Payment of Operating Costs

  
	
  Section 2.04 Payment of
  Taxes

  
	
  Section
  2.05 Payment of Estimated Taxes and Operating Costs and Premises
  Maintenance Costs

  
	
  Section 2.06 Additional
  Rent

  
	
  Section 2.07 Rent Past Due

  
	
  Section
  2.08 Utilities and Janitorial Services

  
	
  Section
  2.09 Adjustment of Areas - Intentionally Deleted

  
	
  Section
  2.10 Net Lease

  
	
  Section
  2.11 Deposit

  
	
  Section 2.12
  Electronic Funds Transfer

  
	
   

  
	
  ARTICLE III - CONTROL
  OF BUILDING

  
	
  Section 3.01
  Landlord’s Services

  
	
  Section 3.02
  Alterations by Landlord

  
	
  Section 3.03 Riser
  Telephone Rooms

  
	
  Section
  3.04 Telecommunication Service Providers

  
	
   

  
	
  ARTICLE IV - ACCESS AND ENTRY

  
	
  Section 4.01 Right of
  Examination

  
	
  Section 4.02 Right
  to Show Premises

  
	
  Section 4.03 Entry
  not Forfeiture

  
	
   

  
	
  ARTICLE V - MAINTENANCE, REPAIRS AND ALTERATIONS

  
	
  Section 5.01
  Maintenance By Landlord

  
	
  Section
  5.02 Maintenance by Tenant; Compliance with Laws

  
	
  Section
  5.03 Approval of Tenant’s Alterations

  
	
  Section 5.04
  Repair Where Tenant at Fault

  
	
  Section
  5.05 Removal of Improvements and Fixtures

  
	
  Section
  5.06 Liens

  
	
  Section 5.07 Notice by
  Tenant

  
	
   

  
	
  ARTICLE VI - INSURANCE AND INDEMNITY

  
	
  Section 6.01 Tenant’s
  Insurance

  
	
  Section
  6.02 Increase in Insurance Premiums

  
	
  Section 6.03
  Cancellation of Insurance

  
	
  Section 6.04 Loss or Damage

  
	
  Section 6.05
  Landlord’s Insurance

  
	
  Section
  6.06 Indemnification of the Landlord

  
	
  Section 6.07
  Release by the Landlord

  
	
   

  
	
  ARTICLE VII - DAMAGE
  AND DESTRUCTION

  
	
  Section
  7.01 No Abatement

  
	
  Section 7.02 Damage to
  Premises

  
	
  Section 7.03 Right of
  Termination

  
	
  Section
  7.04 Destruction of Building or the Development

  
	
  Section 7.05
  Architect’s Certificate

  
	
   

  
	
  ARTICLE VIII -
  ASSIGNMENT, SUBLETTING AND TRANSFERS

  
	
  Section 8.01
  Assignments, Subleases and Transfers

  
	
  Section 8.01A Related
  Corporation

  
	
  Section 8.02
  Landlord’s Right to Terminate

  
	
  Section 8.03
  Conditions of Transfer

  
	
  Section 8.04 Change of
  Control

  
	
  Section 8.05 No Advertising

  
	
  Section 8.06 Assignment
  By Landlord

  

 

i

 

	
  ARTICLE
  IX - DEFAULT

  	
   

  
	
  Section 9.01 Default
  and Remedies

  	
   

  
	
  Section
  9.02 Distress

  	
   

  
	
  Section
  9.03 Costs

  	
   

  
	
  Section 9.04
  Allocation of Payments

  	
   

  
	
  Section 9.05
  Survival of Obligations

  	
   

  
	
   

  	
   

  
	
  ARTICLE X - STATUS STATEMENT, ATTORNMENT AND
  SUBORDINATION

  	
   

  
	
  Section 10.01 Status
  Statement

  	
   

  
	
  Section 10.02 Subordination

  	
   

  
	
  Section
  10:03 Attornment

  	
   

  
	
  Section
  10.04 Execution of Documents

  	
   

  
	
   

  	
   

  
	
  ARTICLE XI - GENERAL PROVISIONS

  	
   

  
	
  Section 11.01 Rules
  and Regulations

  	
   

  
	
  Section
  11.02 Delay

  	
   

  
	
  Section 11.03 Overholding

  	
   

  
	
  Section
  11.04 Waiver

  	
   

  
	
  Section 11.05
  Registration

  	
   

  
	
  Section
  11.06 Notices

  	
   

  
	
  Section
  11.07 Successors

  	
   

  
	
  Section 11.08
  Joint and Several Liability

  	
   

  
	
  Section
  11.09 Captions and Section Numbers

  	
   

  
	
  Section 11.10 Extended
  Meanings

  	
   

  
	
  Section 11.11 Partial
  Invalidity

  	
   

  
	
  Section 11.12 Entire
  Agreement

  	
   

  
	
  Section 11.13 Governing Law

  	
   

  
	
  Section 11.14 Time of
  the Essence

  	
   

  
	
  Section 11.15 Quiet
  Enjoyment

  	
   

  
	
  Section
  11.16 Execution

  	
   

  
	
  Section
  11.17 Parking

  	
   

  
	
  Section 11.18
  Restrictive Covenant

  	
   

  
	
  Section 11.19 First
  Option to Renew

  	
   

  
	
  Section 11.20
  Second Option to Renew

  	
   

  
	
  Section
  11.21 Leasehold Improvement Allowance

  	
   

  
	
  Section 11.22 Satellite
  Dish

  	
   

  
	
  Section 11.23 Early
  Occupancy

  	
   

  
	
  Section 11.24 Landlord’s
  Work

  	
   

  
	
  Section 11.25 Building
  Signage

  	
   

  
	
  Section 11.26 Tenant’s
  Generator

  	
   

  
	
  Section 11.27 Canadian
  Dollars

  	
   

  
	
  Section 11.28 Freight
  Elevator

  	
   

  
	
  Section
  11.29 Tenant’s Contribution to Chillers

  	
   

  
	
   

  	
   

  
	
  SCHEDULE
  “A” -LEGAL DESCRIPTION OF LANDS

  	
   

  
	
   

  	
   

  
	
  SCHEDULE “B” - FLOOR PLAN OF THE PREMISES

  	
   

  
	
   

  	
   

  
	
  SCHEDULE “C”-
  DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  SCHEDULE “D”- RULES AND
  REGULATIONS

  	
   

  
	
   

  	
   

  
	
  SCHEDULE “E” - INDEMNITY
  AGREEMENT

  	
   

  

 

ii

 

THIS
LEASE is dated is dated the 14th day of February, 2003, and is made

 

BETWEEN:

 

CORNWALL CENTRE LIMITED

(the “Landlord”)

 

OF THE FIRST PART

 

- and -

 

STARTEK CANADA SERVICES LTD.

(the “Tenant”)

 

OF THE SECOND PART

 

ARTICLE
I - PREMISES,
TERM AND USE

 

Section
1.01 Grant and Premises

 

In consideration of the performance by the
Tenant of its obligations under this Lease, the Landlord leases the Premises to
the Tenant for the Term. The Premises are located on the third (3rd) floor of
the Building and are shown cross hatched in red on the floor plan attached as
Schedule “B”. The Rentable Area of the Premises is approximately sixty one thousand nine hundred and eighty-eight
(61,988) square feet (5,758.68 square metres).

 

Section 1.02 Term

 

The Term of this Lease is ten (10) years, from
the 1st day of August, 2003 to 31st day of July, 2013.

 

Section
1.03 Construction of Premises

 

The Tenant shall abide by the provisions of the
tenant leasehold improvement manual supplied by the Landlord for any
construction it proposes to do prior to or upon occupancy of the Premises, and
any renovations to the Premises after it takes occupancy.

 

Section
1.04 Use and Conduct of Business

 

The Premises shall be used only for general
office use for the purposes of a call center and for no other purpose. The
Tenant shall conduct its business in the Premises in a reputable and first
class manner.

 

ARTICLE II - RENT

 

Section 2.01 Covenant to Pay

 

(a)                                  Except as may
be provided in Section 2.02, the Tenant shall pay Rent from the Commencement
Date without prior demand and without any deduction, abatement, setoff or
compensation. If the Commencement Date is not on the first day of a calendar
month, or the period of time from the Commencement Date to the end of the first
Fiscal Year during the Term is less than 12 calendar months, or the period of
time from the last Fiscal Year end during the Term to the end of the Term is
less than 12 calendar months, then Rent for such month and such periods shall
be pro-rated on a per diem basis, based upon a period of 365 days.

 

(b)                                 Upon the
occurrence of an Event of Default the Tenant will immediately deliver to the
Landlord on each Fiscal Year end thereafter and throughout the Term, a series
of monthly post- dated cheques for the next ensuing twelve month period, for the
total of the monthly payments of Net Rent and any Additional Rent estimated by
the Landlord in advance.

 

Section 2.02 Net Rent

 

The Tenant shall pay Net Rent as follows:

 

(i)                                     during the
period from and including the 1st day of August, 2003 to and including the 31st
day of July, 2008, the annual sum of
EIGHT HUNDRED THIRTY SIX THOUSAND EIGHT HUNDRED AND THIRTY-EIGHT DOLLARS
($836,838.00) payable in equal consecutive monthly
installments of SIXTY NINE THOUSAND SEVEN HUNDRED THIRTY-SIX DOLLARS AND FIFTY
CENTS ($69,736.50) each in advance on the
first day of each calendar month during the aforesaid period, based upon an annual rate of THIRTEEN DOLLARS AND
FIFTY CENTS ($13.50) per square foot ($145.32 per square metre) of the Rentable
Area of the Premises; and,

 

(ii)                                  during the
period from and including the 1st day of August, 2008 to and including the 31st
day of July, 2013, the annual sum
of EIGHT HUNDRED NINETY EIGHT THOUSAND EIGHT HUNDRED AND TWENTY-SIX DOLLARS
($898,826.00) payable in equal consecutive

 

1

 

monthly instalments of SEVENTY FOUR THOUSAND
NINE HUNDRED TWO DOLLARS AND SEVENTEEN CENTS ($74,902.17) each in advance on
the first day of each calendar month during the aforesaid period, based upon an annual rate of FOURTEEN
DOLLARS AND FIFTY CENTS ($14.50) per square foot ($156.08 per square meter) of
the Rentable Area of the Premises.

 

As soon as reasonably possible after completion
of construction of the Premises, the Landlord shall engage an architect or
space planner of its choice to measure the Net Rentable Area of the Premises
and shall calculate the Rentable Area of the Premises and Rent shall be
adjusted accordingly. It is confirmed that the standard of measurement shall be the current BOMA. The
Tenant shall be entitled, at its sole cost to review the final measurement
calculation.

 

Section
2.03 Payment of Operating Costs

 

Notwithstanding anything to contrary contained
in this Lease, the Tenant’s Share of the costs of operating, maintaining, repairing,
replacing and administering the Lands and Building (excluding the Premises and
the systems and elevators provided solely for the Premises) from the
Commencement Date to October 31,
2004, shall be an amount equal to the product of the Rentable Area of the
Premises multiplied by Seventy Cents ($0.70). After the Fiscal Year ending
October 31, 2004, the Tenant’s Share shall be increased at the beginning of
each Fiscal Year and shall be equal to the amount payable by the Tenant for the
preceding Fiscal Year increased by the percentage increase, if any, in the
C.P.I. between the first month of the preceding Fiscal Year and the first month
of the Fiscal Year for which the
calculation is being done. In addition, the Tenant shall reimburse the
Landlord, in accordance with Section 2.05, for all maintenance, operation,
repairs and replacements to the chillers, roof top units, boilers and elevator
serving only the Premises (the “Premises Maintenance
Costs”). Notwithstanding the foregoing, the Tenant will not be required
to replace an entire chiller, roof top unit, boiler or elevator if such
replacement is required during the last year
of the Term.

 

Section
2.04 Payment of Taxes

 

(a)                                  The Tenant
shall pay when due all Business Tax. If the Tenant’s Business Tax is payable by
the Landlord to the relevant taxing authority, the Tenant shall pay the amount
thereof to the Landlord or as it directs. If no separate tax bills for Business
Tax are issued with respect to the Tenant or the Premises, the Landlord may
allocate Business Tax charged, assessed or levied against the Building or the
Lands to the Tenant on the basis of the Tenant’s Proportionate Share. The
parties acknowledge that If Business Taxe are have been eliminated by the Province of
Saskatchewan orand the City of Regina, and the foregoing shall only
apply upon the re- introduction of Business Taxes. Taxes are increased the
Tenant will pay an equitable share of Taxes attributable to the premises to the
extent, (and only to the extent) that Taxes attributable to the Premises are
increased as a consequence of the elimination of Business Taxes.

 

(b)                                 The Landlord
shall allocate Taxes between the Total Rentable Area of the Building and other
components of the Development on such bases as the Landlord, acting equitably,
determines from time to time. The Tenant shall not be required to pay any
Taxes which are abated as a result
of the Tenant’s occupancy of the Premises.

 

With respect to any Taxes which are not abated,
the Tenant shall pay from the Commencement Date to the expiration of the Term
for all Taxes imposed in respect of the Premises and the Lands attributable to
the Premises as calculated by the Landlord in accordance with the following paragraphs.

 

For the purposes of establishing the amount of
Taxes payable by the Tenant pursuant to this Section 2.04(b), the parties
recognize and acknowledge that it is necessary to establish the assessments
upon which such Taxes are based.

 

The Landlord, with the assistance of the
Tenant, shall use its best efforts to obtain the separate assessment upon which
such Taxes are based with respect to the Premises and the Land attributable to
the Premises. If such cannot be obtained, the Landlord shall use its best
efforts to obtain, with the assistance of the Tenant, sufficient official information
to determine the methodology utilized by the assessing authority with respect
to the determination of the assessment for Taxes of the Premises and the Lands
attributable to the Premises. Upon the determination of the methodology of
assessment, similar methodology shall be utilized by the Landlord to allocate
the Taxes payable by the Tenant pursuant to this Section 2.04(b) with respect
to the Premises and the Land attributable to the Premises. The parties
acknowledge that as at the date of this Lease a separate notice of assessment
is not provided by the assessing authority for the Premises, but that an
assessment can be determined for the Premises and the land assessment
attributable to the Development based on the assessment authority’s working papers.
The land assessment so determined for the Development shall be further
allocated to the Premises based on a proportionate share being the proportion
that the Rentable Area of the Premises bears to the total Rentable Area of the
Building and shopping centre (excluding the parkade) located on Block B-1 of
the Development. In the event that such official information is not available,
the Landlord shall allocate the total assessment of the Development in a manner
which is equitable and consistent, having regard to the primary

 

2

 

method of assessment which the assessing
authorities are required to employ so as to arrive at a separate assessment
upon which such Taxes are based in accordance with the applicable assessment
legislation.

 

If other taxes are imposed against the
Development on a basis other than an assessor’s valuation, the tenant will pay
a share, equitably allocated to the Premises and Lands attributable to the
Premises based on the methodology used by the taxing authority. Where the
methodology of the taxing authority is not available, the Tenant will pay its
proportionate share being the proportion that the Rentable Area of the Premises
bears to the total Rentable Area of the Development.

 

c)                                      (The Tenant
shall pay to the Landlord its Proportional Sshare of the Taxes allocated by the
landlord to the Premises and the Lands attributable to the Premises as set out
in Section 2.04 (b) above. Total Rentable area of the Building by the Landlord.  After deducting from those Taxes amounts
paid in respect of those Taxes by Major Tenants.

 

(d)                                 If
the Landlord obtains a written statement from the assessment or taxing
authorities indicating that as a result of any construction or installation of
improvements in the Premises, or any act or election of the Tenant, the Taxes
payable by the Tenant under subsection 2.05(b) do not accurately reflect the
Tenant’s proper share of Taxes, the Landlord may require the Tenant to pay such
greater or lesser amount as is determined by the Landlord, acting reasonably.

 

(e)                                  The Landlord
may: contest any Taxes and appeal any assessments with respect thereto;
withdraw any such contest or appeal; and agree with the taxing authorities on
any settlement or compromise with respect to Taxes. The Tenant will co-operate
with the Landlord in respect of any such contest or appeal and will provide the
Landlord with all relevant information, documents and consents required by the
Landlord in connection with any such contest or appeal. The Tenant will not
contest any Taxes or appeal any assessments related thereto without the
Landlord’s prior written consent.

 

(f)                                    The Tenant
shall promptly deliver to the Landlord on request, copies of assessment
notices, tax bills and other documents received by the Tenant relating to Taxes
and Business Tax and receipts for payment of Taxes and Business Tax payable by
the Tenant.

 

(g)                                 The Tenant
shall on demand, pay to the Landlord or to the appropriate taxing authority if
required by the Landlord, all goods and services taxes, sales taxes, value
added taxes, business transfer taxes, or any other taxes imposed on the
Landlord with respect to Rent or in respect of the rental of space under this
Lease, whether characterized as a goods and services tax, sales tax, value
added tax, business transfer tax or otherwise. The Landlord shall have the same
remedies and rights with respect to the payment or recovery of such taxes as it
has for the payment or recovery of Rent under this Lease.

 

Section 2.05 Payment of Estimated Taxes and Operating
Costs and Premises Maintenance Costs

 

(a)                                  The amount of
Taxes and Premises Maintenance Costs and
Operating Costs may be estimated by the Landlord for such period (not to exceed twelve months) as the LandLord
determines from time to time, and the Tenant agrees to pay to the Landlord the
amounts so estimated in equal instalments, in advance, on the first day of each
month during such period. Such estimates
shall be reasonable and upon request of the
Tenant the Landlord shall provide its rationale for such estimate. Notwithstanding
the foregoing, when bills for all or any portion of the amounts so estimated
are received, the Landlord may bill the Tenant for the Tenant’s Proportionate
S share thereof (or the amount determined under Section 2.04(d)) after
crediting against such amounts any monthly payments of estimated Taxes and Operating Costs  and
Premises Maintenance Costs previously made by the Tenant and the
Tenant shall pay the Landlord the amounts so billed. Taxes will be pro-rated for any partial tax year in the Term.

 

(b)                                 Within
a reasonable time after the end of the period for which such estimated payments
have been made, the Landlord shall submit to the Tenant a statement showing the
calculation of the Tenant’s share of Taxes and Operating Costs together with
a report from the Landlord’s auditor as to the total amount of Operating Costs.  If: (i) the amount the Tenant has paid is
less than the amounts due, the Tenant shall pay such deficiency to the
Landlord; or (it) the amount paid by the Tenant is greater than the amounts
due, the Landlord shall pay such excess to the Tenant.

 

The obligations contained in this subsection
shall survive the expiration or earlier termination of the Term. Failure of the
Landlord to render any statement of Taxes and Operating Costs shall not
prejudice the Landlord’s right to render such statement thereafter or with
respect to any other period. The rendering of any such statement shall also not
affect the Landlord’s right to subsequently render an amended or corrected
statement.

 

Section 2.06 Additional Rent

 

Except as otherwise provided in this Lease, all
Additional Rent shall be payable by the Tenant to the Landlord within 15
business days after demand.

 

3

 

Section 2.07 Rent Past Due

 

All Rent past due shall bear interest from the
date on which the same became due until the date of payment at 3% per annum in
excess of the prime interest rate for Canadian Dollar demand loans announced
from time to time by any Canadian chartered bank designated by the Landlord.

 

Section 2.08 Utilities and Janitorial
Services

 

(a)                                  The Tenant
shall pay to the Landlord, or as the Landlord directs, all gas,
electricity, water, steam and other utility charges applicable to the Premises
directly to the utility supplier where direct billing is available and-shall
otherwise pay the Landlord as the Landlord directs on the basis of sub-meters the
Rentable Area of the Premises. Charges for utilities which are payable to the Landlord shall be
payable in advance on the first day of each month at a basic rate determined by
the Landlord’s engineers. The Landlord shall be entitled to allocate to the
Premises an additional charge, as determined by the Landlord’s engineer, for
any supply of utilities to the Premises in excess of those covered by such
basic charge. If any utility rates or related taxes or charges are increased or
decreased during the Term, such charges shall be equitably adjusted and the
decision of the Landlord, acting reasonably, shall be final and binding with
respect to any such adjustment.

 

(b)                                 The LandlordTenant shall at its sole cost have the exclusive right to replace
bulbs, tubes and ballasts in the lighting system in the Premises, on either an individual or a group basis.  The tenant shall pay the cost of such
replacement on the first day of each month or at the option of the Landlord
upon demand.

 

(c)                                  The Tenant
Landlord shall pay the cost of installing, inspecting, verifying, maintaining
and repairing any meters or metering system installed at the request of the
Landlord or the Tenant to measure the usage of utilities in the
Premises. Where a base building metering system has been installed in the
Building, the Landlord will provide, at the Tenant’s expense, all necessary components
and programming to connect the Premises to the Landlord’s metering system.

 

(d)                                 The Tenant
shall, at its cost, provide cleaning services in the Premises which shall be to
a standard as determined by the Landlord, acting reasonably and which is suitable
to the Building and Development and the mix of uses therein.

 

Section 2.09 Adjustment
of Areas - Intentionally Deleted

 

Section 2.10 Net Lease

 

This Lease is a completely net lease to the
Landlord, except as expressly herein set out. The Landlord is not responsible
for any expenses or outlays of any nature arising from or relating to the
Premises, or the use or occupancy thereof, or the contents thereof or the
business carried on therein. Except as otherwise provided in this Lease, the
Tenant shall pay all charges, impositions and outlays of every nature and kind
relating to the Premises except as expressly herein set out.

 

Section 2.11 Deposit

 

Upon execution and return of this Lease, the Tenant covenants and agrees to provide the
Landlord with a deposit cheque in the amount of $69,624.00 to be applied
without interest against the first months Rent due under this Lease.

 

Section 2.12 Electronic
Funds Transfer

 

At the Landlord’s request, the Tenant will
participate in an electronic funds transfer (“EFT”) system or similar system
whereby the Tenant will authorize its bank, trust company, credit union or
other financial institution to credit the Landlord’s bank account each month in
an amount equal to the Net Rent and Additional Rent payable on a monthly basis
pursuant to the provisions of this Lease.

 

ARTICLE III -
CONTROL OF BUILDING

 

Section
3.01 Landlord’s Services

(a)                                  The Landlord
shall provide climate control, at Tenant’s expense, to the Premises during the operating hours of the Tenant Normal
Business Hours to maintain a temperature adequate for normal occupancy,
except during the making of repairs, alterations or improvements, provided that
the Landlord shall have no liability for failure to supply climate control
service when stopped as aforesaid or when prevented from doing so by repairs,
or causes beyond the Landlord’s reasonable control. Any rebalancing of the
climate control system in the Premises necessitated by the installation of
partitions, equipment or fixtures by the Tenant or by any use of the Premises
not in accordance with the design standards of such system will be performed by
the Landlord at the Tenant’s expense. Notwithstanding the foregoing, the
Landlord agrees to use reasonable efforts to schedule repairs and maintenance
of the mechanical systems outside of the Tenant’s operating hours and to
expedite to the extent possible any repairs which affect the use of the
Premises by the Tenant.

 

4

 

(b)                                 Subject to the
Rules and Regulations, the Landlord shall provide elevator service during Normal
Business Hours  the operating hours of the
Tenant, as determined by the Tenant in its discretion, for use by
the Tenant in common with others, except when prevented by repairs.

 

(c)           The landlord will Provide cleaning
services in the Building consistent with the standards of a first class office
building.

 

(d)                                 Subject to Section 2.08, and in
accordance with Section 11.25, the Landlord shall make available to the
Premises electricity for normal lighting and miscellaneous power requirements
and, in normal quantities gas, water, and other public utilities generally made
available to other tenants of the Building by the Landlord.

 

Section 3.02 Alterations by Landlord

 

The Landlord may: (a) alter,
add to, subtract from, construct improvements to, rearrange, build additional
storeys on and construct additional facilities adjoining or near the
Development; (b relocate the facilities and improvements comprising the
Building or erected on the Lands, or relocate, alter or rearrange the Premises,
provided that the premises as relocated, altered, or rearranged shall be in all
material aspects comparable to the Premises as herein defined;

(c) do such things on, or in the Lands or
Development as are required to comply with any laws, by-laws, regulations,
orders or directives affecting the Lands or any part of the Development; and
(d) do such other things on or in the Lands or Development as the Landlord, in
the use of good business judgment determines to be advisable; provided that
notwithstanding anything contained in this Section, access to the Premises
shall at all times be available from the elevator lobby of the Building and from the adjacent parkade.

 

The Landlord shall not be in breach of its
covenant for quiet enjoyment or liable for any loss, costs or damages, whether
direct or indirect, incurred by the Tenant due to any of the foregoing provided the foregoing does not increase the Tenant’s
operating costs nor materially adversely affect the Tenant’s ability to carry
on business in the Premises.

 

Section 3.03 Riser Telephone Rooms

 

The parties understand that the Building
contains one or more rooms where the fibre optic and telephone equipment for
the Building is situated (hereinafter referred to as the "Riser
Telephone Rooms”) and the Tenant agrees that all Riser  Telephone Rooms shall be for the sole and
exclusive use of the Landlord. The Tenant shall not use the equipment contained
in the Rider Telephone Rooms, install, or instruct the installation of
any additional equipment, whether telephone equipment, fibre optic equipment or
otherwise, without first obtaining the Landlord’s written consent to same,
which consent shall not may be
unreasonably withheld or  but which may
be granted upon the imposition of any terms which the Landlord deems
fit, acting reasonably excluding
the payment of an additional fee, the amount of which shall be established
at the sole discretion of the Landlord.

 

Section 3.04 Telecommunication Service
Providers

 

The Tenant may utilize a telecommunication
service provider of its choice with the Landlord’s prior written consent which
the Landlord may withhold in its discretion acting reasonably, subject to the provisions of this Lease
including but not limited to the following:

 

(a)                                  the service provider shall execute and
deliver the Landlord’s standard form of 
license agreement which shall include a provision for the Landlord to
received compensation for the use of the space for the service provider’s equipment
and materials:

 

(b)                                 the Landlord
shall incur no expense or liability whatsoever with respect to any aspect of
the provision of telecommunication services, including without limitation, the
cost of installation, service, materials, repairs, maintenance, interruption or
loss of telecommunication service;

 

(c)                                  if such services are being added after the initial
construction of the Premises, the Landlord must first reasonably
determine that there is sufficient space in the risers of the Building for the
installation of the service provider’s equipment and materials;

 

(d)                                 the Tenant
shall indemnify and hold harmless the Landlord for all losses, claims, demands,
expenses and judgements against the Landlord caused by or arising out of,
either directly or indirectly, any acts or omissions by the service provider or
the Tenant or those for whom they are responsible at law.

 

(e)                                  the Tenant shall incorporate in its
agreement with its service provider a provision granting the Tenant the right
to terminate the service provider agreement if required to do so by the
Landlord and the Landlord shall have the right at any time from time to time
during the Term to require the Tenant at its expense to exercise the
termination right and to contract for telecommunication service with a
different service provider.

 

The Tenant shall be responsible for the costs
associated with the supply and installation of telephone, computer and other
communication equipment and systems and related wiring within the Premises to the boundary of the Premises for hook up or
other integration with telephone and other communication equipment and systems
of a telephone or other communication service provider, which equipment and

 

5

 

systems of the service provider are located or
are to be located in the Building pursuant to the Landlord’s standard form of
license agreement.

 

The Landlord shall supply space in risers in
the Building and space on floor(s) of the Building in which the Premises are
located, the location of which shall be designated by the Landlord in its
discretion, to telecommunication service providers who have entered into the
Landlord’s standard form of license agreement for the purpose, without any cost
or expense to Landlord therefor, of permitting installation in such risers and
on such floor(s) of telephone and other communication services and systems
(including data cable patch panels) to the Premises at a point designated by
the Landlord.

 

The Landlord shall have the right to
assume control of cables and other telecommunication equipment in the Building
and may designate them as part of the common areas.

 

ARTICLE
IV -ACCESS AND ENTRY

Section 4.01 Right of Examination

 

The Landlord shall be entitled at all
reasonable times (and at any time in case of emergency) to enter the Premises
to examine them; to make such repairs, alterations or improvements in the
Premises as the Landlord considers necessary or desirable; to have access to
underfloor ducts and access panels to mechanical shafts; to check, calibrate,
adjust and balance controls and other parts of the heating systems; and for any
other purpose necessary to enable the Landlord to perform its obligations or
exercise its rights under this Lease. The Tenant shall not obstruct any pipes,
conduits or mechanical or electrical equipment so as to prevent reasonable
access thereto. The Landlord shall exercise its rights under this Section, to
the extent possible in the circumstances, in such manner so as to minimize
interference with the Tenant’s use and enjoyment of the Premises. The Landlord shall provide prior verbal or written notice to the Tenant if
it requires access for any reason other than
routine maintenance or emergency.

 

Section 4.02 Right to Show Premises

 

The Landlord and its agents shall have the
right to enter the Premises at all reasonable times during Normal Business
Hours upon prior verbal or written notice to,
show them to prospective purchasers, or Mortgagees or prospective Mortgagees,
and, during the last six months of the Term (or the last six months of any
renewal term if this Lease is renewed), to prospective tenants.

 

Section 4.03 Entry not Forfeiture

 

No entry into the Premises or anything done
therein by the Landlord pursuant to a right granted by this Lease shall
constitute a breach of any covenant for quiet enjoyment, or (except where
expressed by the Landlord in writing) shall constitute a re-entry or
forfeiture, or an actual or constructive eviction. The Tenant shall have no
claim for injury, damages or loss suffered as a result of any such entry or
thing, except in the case of willful misconduct or gross negligence by the Landlord in the course of such
entry but the Landlord shall in no event be responsible for the acts or
negligence of any Persons providing cleaning services in the Building.

 

ARTICLE
V - MAINTENANCE,
REPAIRS AND ALTERATIONS

Section 5.01 Maintenance By Landlord

 

(a)                                  The Landlord
covenants to keep the following in good repair as a prudent owner: (i) the
structure of the Building including exterior walls and roofs; (ii) the
mechanical, electrical and other base building systems; and (iii) the entrance,
lobbies (except the lobby for the elevator
serving only the Premises which shall be the Tenant’s responsibility),
plazas, stairways, corridors, parking areas and other facilities from time to
time provided for use in common by the Tenant and other tenants of the
Building. If such maintenance or repairs are required by law due to the
business carried on by the Tenant, then the full cost of such maintenance and
repairs plus a sum equal to 10% of such cost representing the Landlord’s
overhead, shall be paid by the Tenant to the Landlord.

 

(b)                                 The Landlord
shall not be responsible for any damages caused to the Tenant by reason of
failure of any equipment or facilities serving the Building or delays in the
performance of any work for which the Landlord is responsible under this Lease.
The Landlord shall have the right to step, interrupt or reduce any services,
systems or utilities provided to, or serving the Building or Premises to
perform repairs, alterations or maintenance or to comply with laws or
regulations, or binding requirements of its insurers, or for causes beyond the
Landlord’s reasonable control or as a result of the Landlord exercising its
rights under Section 3.02. The Landlord shall not be in breach of its covenant
for quiet enjoyment or liable for any loss, costs or damages, whether direct or
indirect, incurred by the Tenant due to any of the foregoing, but the Landlord
shall make reasonable efforts to restore the services, utilities or systems so
stopped, interrupted or reduced.

 

(c)                                  If within 5
days of receipt of written notice from the
Landlord detailing the work required to be done, the Tenant fails to
carry out any maintenance, repairs or work required to be carded out by it
under this Lease to the reasonable satisfaction of the Landlord, the Landlord
may at its option carry out such maintenance or repairs without any liability
for any resulting damage to the Tenant’s property or business unless arising from Landlord’s gross negligence or willful

 

6

 

misconduct. The cost of
such work, plus a sum equal to 10% of such cost representing the Landlord’s
overhead, shall be paid by the Tenant to the Landlord.

 

Section 5.02 Maintenance by Tenant; Compliance with Laws

 

(a)                                  The Tenant
shall at its sole cost repair and maintain the Premises exclusive of base
building mechanical and electrical systems, all to a standard consistent
with a first class office building similar to the Building located in a similar
Development with a similar mix of uses as determined
by the Landlord, acting reasonably, with the exception only of those repairs
which are the obligation of the Landlord under this Lease, subject to Article
VII. The Landlord may enter the Premises at all reasonable times to view their
condition and the Tenant shall maintain and keep the Premises in good and
substantial repair according to notice in writing. At the expiration or earlier
termination of the Term, the Tenant shall surrender the Premises to the
Landlord in as good condition and repair as the Tenant is required to maintain
the Premises throughout the Term

 

(b)                                 The Tenant shall at its cost maintain the
washrooms located on the 3rd floor, such maintenance to include, but not be limited to, the daily
cleaning of the washrooms and the replenishment of all necessary supplies.

 

(c)           The
Tenant shall at its cost clean on a
daily basis and maintain the
elevator lobby area at the street level of the Building.

 

(d)                                 The Tenant
shall, at its own expense, promptly comply with all laws, by-laws, government
orders and with all reasonable requirements or directives of the Landlord’s
insurers affecting the Premises or their use, repair or alteration. The
Landlord shall perform the Landlord’s Work in accordance
with all laws, by-laws and codes.

 

Section 5.03 Approval
of Tenant’s Alterations

 

(a)                                  No Alterations,
which exceed $20,000, shall be made to the Premises without the Landlord’s
written approval which shall not be unreasonably
withheld, conditioned or delayed. Any
Alterations which do not exceed $20,000
shall be made only upon prior
written notice to the Landlord. The Tenant shall submit to the Landlord details
of the proposed work including drawings and specifications prepared by
qualified architects or engineers conforming to good engineering practice. All
such Alterations shall be performed: (i) at the sole cost of the Tenant; (ii)
by contractors and workmen approved by the Landlord; (iii) in a good and
workmanlike manner; (iv) in accordance with drawings and specifications
approved by the Landlord; (v) in accordance with all applicable legal and
insurance requirements; (vi) subject to the reasonable regulations,
supervision, control and inspection of the Landlord; and (vii) subject to such
indemnification against liens and expenses as the Landlord reasonably requires.
The Landlord’s reasonable cost of supervising all such work shall be paid by
the Tenant unless the Tenant uses one of
the Landlord’s approved contractors.

 

(b)                                 If the
Alterations would affect the structure of the Building or any of the
electrical, plumbing, mechanical, heating, ventilating or air conditioning
systems or other base building systems, such work shall at the option of the
Landlord be performed by the Landlord at the Tenant’s cost. On completion of
such work, the cost of the work plus a sum equal to 10% of said cost
representing the Landlord’s overhead shall be paid to the Landlord.

 

(c)                                  If, after the
installation of the initial improvements, the Tenant installs Leasehold
Improvements, or makes Alterations which depart from the Building standard and
which restrict access by the Landlord to any Building system, or which restrict
the installation of the leasehold improvements of any other tenant in the
Building, then the Tenant shall be responsible for all costs incurred by the
Landlord in obtaining access to such Building system, or in installing such
other tenant’s leasehold improvements.

 

Section 5.04 Repair
Where Tenant at Fault

 

Notwithstanding any other provisions of this
Lease, but subject to Section 6.07, if the Building is damaged or destroyed or
requires repair, replacement or alteration as a result of the act or omission
of the Tenant, its employees, agents, invitees, licensees, contractors or
others for whom it is in law responsible, the cost of the resulting repairs,
replacements or alterations plus a sum equal to 10% of such cost representing
the Landlord’s overhead, shall be paid by the Tenant to the Landlord.

 

Section 5.05 Removal of
Improvements and Fixtures

 

All Leasehold Improvements (other than Trade
Fixtures) shall immediately upon their placement become the Landlord’s property
without compensation to the Tenant. Except as otherwise agreed by the Landlord
in writing, no Leasehold Improvements shall be removed from the Premises by the
Tenant either during or at the expiry or sooner termination of the Term except
that: (a) the Tenant may, during the Term, in the usual course of its business,
remove its Trade Fixtures, provided that the Tenant is not in default under this
Lease; and (b) the Tenant shall, at the expiration or earlier termination of
the Term, at its sole cost, remove its Trade Fixtures (and may, at its sole option, remove the
generator, server equipment and stand alone
supplemental air units) from the Premises, failing which, at the
option of the Landlord, the Trade Fixtures shall become the property of the
Landlord and may be removed from the Premises and sold or disposed of by the
Landlord in such manner as it deems advisable; and (c) subject to the last

 

7

 

paragraph of
this Section 5.05, the Tenant shall, at the expiration or earlier termination
of the Term, at its sole cost, either remove such of the Leasehold Improvements
in the Premises as the Landlord shall require to be removed, and restore the
Premises to the Landlord’s then current base Building standard to the extent
required by the Landlord, or at the Landlord’s option, pay to the Landlord
the estimated cost of such removal and restoration as determined by the
Architect, acting reasonably.  If the
Landlord requires the Tenant to perform the required work, then: (i) the Tenant
shall submit detailed demolition drawings to the Landlord for its prior
approval, and such work shall be completed under the supervision of the
Landlord; (ii) the Tenant shall, at its expense, repair any damage caused to
the Building by such removal; and (iii) if the Tenant fails to complete such
work within 30 days following the expiry or earlier termination of the Term,
the Tenant shall pay compensation to the Landlord for each day following such
30th day until the completion of such work, at a rate equal to the per diem
Rent payable during the last month preceding the expiry or earlier termination
of the Term, which sum is agreed by the parties to be a reasonable estimate of
the damages suffered by the Landlord for the loss of use of the Premises.

 

Notwithstanding the foregoing, the Landlord
acknowledges and agrees that provided all Leasehold Improvements have been approved by the Landlord, the
Tenant will not be required to remove
its Leasehold Improvements from the Premises upon the expiration or earlier
termination of the Lease,

 

Section 5.06 Liens

 

The Tenant shall promptly pay for all materials
supplied and work done in respect of the Premises at the Tenant’s request so as to ensure that no lien is
registered against any portion of the Lands or Building or against the
Landlord’s or Tenant’s interest therein. If a lien is registered or filed, the
Tenant shall discharge it at its expense forthwith (which discharge may be
obtained by payment into court), failing which the Landlord may at its option
discharge the lien by paying the amount claimed to be due into court or
directly to the lien claimant and the amount so paid and all expenses of the
Landlord including legal fees (on a solicitor and client basis) shall be paid
by the Tenant to the Landlord.

 

Section 5.07 Notice by Tenant

 

The Tenant shall notify the Landlord of any
accident, defect, damage or deficiency in any part of the Premises or, if a
person in a management position
has actual knowledge of it, the Building which comes to the attention of the
Tenant, or its employees or contractors notwithstanding that the
Landlord may have no obligation in respect thereof.

 

ARTICLE
VI - INSURANCE AND INDEMNITY

 

Section
6.01 Tenant’s Insurance

 

(a)           The Tenant shall maintain the
following insurance throughout the Term at its sole cost:

 

(i)                                     “All Risks”
(including flood and earthquake) property insurance with deductibles not
exceeding 3% of the amount insured, naming the Landlord, the owners of the
Lands and Development and the Mortgagee as insured parties, as their interests
may appear, containing a waiver of any subrogation rights which the Tenant’s
insurers may have against the Landlord and against those for whom the Landlord
is in law responsible, and (except with respect to the Tenant’s chattels)
incorporating the Mortgagee’s standard mortgage clause. Such insurance shall
insure: (1) property of every kind owned by the Tenant or for which the Tenant
is legally liable located on or in the Development including, without
limitation, Leasehold Improvements, in an amount equal to not less than 90% of
the full replacement cost thereof, subject to a stated amount co-insurance
clause; and (2) extra expense insurance in such amount as will reimburse the
Tenant for loss attributable to all perils referred to in this paragraph
6.01(a)(i) or resulting from prevention of access to the Premises. However, so
long as the Tenant is STARTEK
CANADA SERVICES LTD. and is itself in occupation of and conducting business in
the whole of the Premises, the Tenant shall
be entitled to self-insure in
respect of flood and earthquake insurance, but shall be deemed for the purposes
of this Lease to have satisfactorily taken out such insurance and to have
received all insurance proceeds payable thereunder.

 

(ii)                                  Commercial
general liability insurance which includes the following coverages: coverage
for construction of improvements owners protective personal injury; occurrence
property damage; and employers and blanket contractual liability. Such policies
shall contain inclusive limits of not less than $5,000,000 per occurrence for
bodily injury for any one or more
Persons, or property damage, provide for cross liability, and name the Landlord
as an insured.

 

(iii)                               Tenant’s “all risks”
legal liability insurance for the replacement cost cash value of the Premises not
exceeding $300,000;

 

(iv)                              Automobile
liability insurance on a non-owned form including contractual liability, and on
an owner’s form covering all licensed vehicles operated by or on behalf of the
Tenant, which insurance shall have inclusive limits of not less than
$1,000,000; and

 

8

 

(v)                                 Any other form
of insurance which the Tenant or the Landlord, acting reasonably, or the
Mortgagee requires from time to time in form, in amounts and for risks against
which a prudent tenant would insure.

 

(b)                                 All policies
referred to in this Section 6.01 shall: (i) be taken out with insurers
reasonably acceptable to the Landlord; (ii) be in a form reasonably
satisfactory to the Landlord; (iii) be non- contributing with, and shall apply
only as primary and not as excess to any other insurance available to the
Landlord; (iv) not be invalidated as respects the interests of the Landlord or
the Mortgagee by reason of any breach of or violation of any warranty,
representation, declaration or condition; and (v) contain an undertaking by the
insurers to notify the Landlord by registered mail not less than 30 days prior
to any material change, cancellation or termination. Certificates of insurance
on the Landlord’s standard a form acceptable to the Landlord, acting reasonably, or, if
required by the Landlord, certified copies of such insurance policies, shall be
delivered to the Landlord forthwith upon request. If the Tenant fails to take
out or to keep in force any insurance referred to in this Section 6.01 or
should any such insurance not be approved by either the Landlord or the
Mortgagee and should the Tenant not commence to diligently rectify (and
thereafter proceed to diligently rectify) the situation within 48 hours after
written notice by the Landlord to the Tenant (stating, if the Landlord or the
Mortgagee, from time to time, does not approve of such insurance, the reasons
therefor) the Landlord has the right without assuming any obligation in
connection therewith, to effect such insurance at the sole cost of the Tenant
and all outlays by the Landlord shall be paid by the Tenant to the Landlord
without prejudice to any other rights or remedies of the Landlord under this
Lease.

 

Section 6.02 Increase in
Insurance Premiums

 

The Tenant shall not keep or use in the
Premises any article which may be prohibited by any fire insurance policy in force
from time to time covering the Premises or the Development. If: (a) the conduct
of business in, or use or manner of use of the Premises; (b) or any acts or
omissions of the Tenant in the Development or any part thereof; cause or result
in any increase in premiums for any insurance carried by the Landlord with
respect to the Development, the Tenant shall pay any such increase in premiums.
In determining whether increased premiums are caused by or result from the use
or occupancy of the Premises, a schedule issued by the organization computing
the insurance rate on the Development showing the various components of such
rate, shall be conclusive evidence of the items and charges which make up such
rate.

 

Section 6.03 Cancellation of Insurance

 

If any insurer under any insurance policy
covering any part of the Development or any occupant thereof cancels or
threatens to cancel its insurance policy or reduces or threatens to reduce
coverage under such policy by reason of the use of the Premises by the Tenant or
by any Transferee, or by anyone permitted by the Tenant to be upon the
Premises, the Tenant shall remedy such condition within 48 hours after notice
thereof by the Landlord.

 

Section 6.04 Loss or Damage

 

The Landlord shall not be liable for any death
or injury arising from or out of any occurrence in, upon, at, or relating to
the Lands or Development or damage to property of the Tenant or of others
located on the Premises or elsewhere in the Development, nor shall it be
responsible for any loss of or damage to any property of the Tenant or others
from any cause, whether or net any such death, injury, loss or damage results
from the negligence of the Landlord, its agents, employees, contractors, or
others for whom it may, in law, be responsible. Without limiting the generality
of the foregoing, the Landlord shall not be liable for any injury or damage to
Persons or property resulting from fire, explosion, falling plaster, falling
ceiling tile, falling fixtures, steam, gas, electricity, water, rain, flood, snow
or leaks from any part of the Premises or from the pipes, sprinklers,
appliances, plumbing works, roof, windows or subsurface of any floor or ceiling
of the Development or from the street or any other place or by dampness or by
any other cause whatsoever. The Landlord shall not be liable for any such
damage caused by other tenants or Persons on the Lands or in the Development or
by occupants of adjacent property thereto, or the public, or caused by
construction or by any private, public or quasi-public work. All property of
the Tenant kept or stored on the Premises shall be so kept or stored at the
risk of the Tenant only and the Tenant releases and agrees to indemnify the
Landlord and save it harmless from any claims arising out of any damage to the
same including, without limitation, any subrogation claims by the Tenant’s
insurers.

 

Section 6.05 Landlord’s Insurance

 

The Landlord shall throughout the Term carry:
(a) all risks insurance on the Development (excluding the foundations and
excavations) and the machinery, boilers and equipment in or servicing the
Development and owned by the Landlord or the owners of the Development
(excluding any property which the Tenant and other tenants are obliged to
insure under Section 6.01 or similar sections of their respective leases) containing a waiver of subrogation rights with respect to the
Premises which the Landlord’s insurer may
have against the Tenant and
against those for whom the Tenant is in law responsible against damage by fire and
extended perils coverage;  (b) public liability and property
damage insurance  with respect to
the Landlord’s operations in the Development; and (c) such other form or forms
of insurance as the Landlord or the Mortgagee reasonably considers advisable.
Such insurance shall be in such reasonable amounts and with such reasonable
deductibles as would be carried by a prudent owner of a reasonably similar
building, having regard to size, age and location. Notwithstanding the
Landlord’s covenant in this Section and notwithstanding any contribution by the
Tenant to the cost of the Landlord’s insurance premiums, the Tenant
acknowledges and agrees that: (i) the Tenant is not relieved of any

 

9

 

liability arising from or contributed to by its
negligence or its willful act or omissions; (ii) no insurable interest is
conferred upon the Tenant under any insurance policies carried by the Landlord;
and (iii) the Tenant has no right to receive any proceeds of any insurance
policies carried by the Landlord.

 

Section 6.06 Indemnification of the Landlord

 

Notwithstanding any other provision of this
Lease, the Tenant shall indemnify the Landlord and save it harmless from all
loss (including loss of Net Rent and Additional Rent) claims, actions, damages,
liability and expense in connection with loss of life, personal injury, damage
to property or any other loss or injury whatsoever arising out of this Lease,
or any occurrence in, upon or at the Premises, or the occupancy or use by the
Tenant of the Premises or any part thereof, or occasioned wholly or in part by
any act or omission of the Tenant or by anyone permitted to be on the Premises
by the Tenant. If the Landlord shall, without fault on its part, be made a
party to any litigation commenced by or against the Tenant, then the Tenant
shall protect, indemnify and hold the Landlord harmless in connection with such
litigation. The Landlord may, at its option, participate in or assume carriage
of any litigation or settlement discussions relating to the foregoing, or any
other matter for which the Tenant is required to indemnify the Landlord under
this Lease. Alternatively, the Landlord may require the Tenant to assume
carriage of and responsibility for all or any part of such litigation or
discussions

 

Section 6.07 Release by the Landlord

 

Despite any other section or clause of this
Lease (except the last sentence of this Section 6.07), the Tenant is not
responsible for any part, in excess of $5,000,000.00, or the amount of
liability insurance coverage available to the Tenant, whichever is the greater,
of any loss or damage to property of the Landlord that is located in, or is
part of the Building and Lands caused by any of the perils for which the
Landlord is required under Section 6.05 to maintain insurance. This release
applies whether or not the loss or damage arises from the negligence of the
Tenant. This release does not apply, however to damage arising from the
willful or grossly negligent acts of the Tenant.

 

ARTICLE
VII - DAMAGE AND DESTRUCTION

 

Section 7.01 No
Abatement

 

If the Premises or Building are damaged or
destroyed in whole or in part by fire or any other occurrence, this Lease shall
continue in full force and effect and there shall be no abatement of Rent
except as provided in this Article VII.

 

Section 7.02 Damage to Premises

 

If the Premises are at any time destroyed or
damaged as a result of fire or any other casualty required to be insured
against by the Landlord under this Lease or otherwise insured against by the
Landlord and not caused or contributed to by the Tenant, then the following
provisions shall apply:

 

(a)                                  if the Premises
are rendered untenantable-unfit for use by the Tenant only in part, the
Landlord shall diligently repair the Premises to the extent only of its
obligations under Section 5.01 and Net Rent shall abate proportionately to the
portion of the Premises rendered untenantable unfit for use by the Tenant from
the date of destruction or damage until the Landlord’s repairs have been
completed;

 

(b)                                 if the Premises
are rendered wholly untenantable unfit for use by the Tenant, the
Landlord shall diligently repair the Premises to the extent only of its
obligations pursuant to Section 5.01 and Net Rent shall abate entirely from the
date of destruction or damage until the Landlord’s repairs have been completed;

 

(c)                                  if the Premises are
not rendered untenantable unfit for use by the Tenant in whole or in
part, the Landlord shall diligently perform such repairs to the Premises to the
extent only of its obligations under Section 5.01, but in such circumstances
Net Rent shall not terminate or abate;

 

(d)                                 upon being
notified by the Landlord that the Landlord’s repairs have been substantially
completed, the Tenant shall diligently perform all repairs to the Premises
which are the Tenant’s responsibility under Section 5.02, and all other work
required to fully restore the Premises for use in the Tenant’s business, in
every case at the Tenant’s cost and without any contribution to such cost by
the Landlord, whether or not the Landlord has at any time made any contribution
to the cost of supply, installation or construction of Leasehold Improvements
in the Premises;

 

(e)                                  nothing in this
Section shall require the Landlord to rebuild the Premises in the condition
which existed before any such damage or destruction so long as the Premises as
rebuilt will have reasonably similar facilities to those in the Premises prior
to such damage or destruction, having regard, however, to the age of the
Building at such time; and

 

(f)                                    nothing in this
Section shall require the Landlord to undertake any repairs having a cost in
excess of the insurance proceeds actually received by the Landlord with respect
to such damage or destruction.

 

10

 

Section 7.03 Right of Termination

 

(a)                                  Notwithstanding
Section 7.02, if the damage or destruction which has occurred in the Premises
is such that in the reasonable opinion of the Landlord the Premises cannot be
rebuilt or made fit for the purposes of the Tenant within 90 days of the
happening of the damage or destruction, the Landlord may, at its option,
terminate this Lease on notice to the Tenant given within 30 days after such
damage or destruction. If such notice of termination is given, Rent shall be
apportioned and paid to the date of such damage or destruction and the Tenant
shall immediately deliver vacant possession of the Premises in accordance with
the terms of this Lease.

 

(b)                                 Notwithstanding
Section 7.02, if the damage and destruction
which has occurred in the Premises is such that in the reasonably opinion of the Architect, the
Premises cannot be rebuilt or be made fit for the purposes of the Tenant within
180 days of the happening of the damage or destruction, then the Landlord will,
subject to Section 7.03(a), provide the Tenant with other premises comparable
to the Premises having regard to size, age
and location within the downtown core of Regina on a temporary basis until such time as the Premises
have been rebuilt as contemplated, failing which the Tenant may, at its option,
elect to terminate this Lease by giving to the Landlord notice of termination
and thereupon Rent shall be apportioned and paid to the date of such
termination and the Tenant shall immediately deliver vacant possession of the Premises in accordance with the terms
of this Lease.

 

Section
7.04 Destruction of Building or the Development

 

(a)           Notwithstanding anything contained in
this Lease and specifically notwithstanding the provisions of Section 7.03, if

 

(i)            thirty-five
percent (35%) or more of the total Rentable Area of the Development; or

 

(ii)           fifty
percent (50%) or more of the total Rentable Area of the Building;

 

is damaged or destroyed by any cause whatsoever
(irrespective of whether the Premises are damaged or destroyed) and if, in the
opinion of the Landlord reasonably arrived at, the total Rentable Area of the
Development or the total Rentable Area of the Building, as the case may be, so
damaged or destroyed cannot be rebuilt or made fit for the purposes of the
respective tenants of such space within one hundred and eighty (180) days of
the happening of the damage or destruction; then and so often as any of such
events occur, the Landlord may at its option (to be exercised by written notice
to the Tenant within sixty (60) days following any such occurrence), elect to
terminate this lease. In the case of such election, the Term and the tenancy
hereby created shall expire upon the thirtieth (30th) day after such notice is
given, without indemnity or penalty payable by, or any other recourse against
the Landlord, and the Tenant shall, within such thirty (30) day period, vacate
the Premises and surrender them to the Landlord with the Landlord having the
right to re-enter and repossess the Premises discharged of this lease and to
expel all Persons and remove all property therefrom. Net Rent and Additional
Rent shall be due and payable without reduction or abatement subsequent to the
destruction or damage and until the date of termination, unless the Premises
shall have been destroyed or damaged as well, in which event Section 7.03 shall
apply.

 

(b)                                 If the Landlord
is entitled to, but does not elect to terminate this Lease under Section
7.04(a), the Landlord shall, following such damage or destruction, diligently
repair if necessary that part of the Building damaged or destroyed, but only to
the extent of the Landlord’s obligations under the terms of the various leases
for premises in the Building and exclusive of any tenant’s responsibilities
with respect to such repair. If the Landlord elects to repair the Building, the
Landlord may do so in accordance with plans and specifications other than those
used in the original construction of the Building.

 

Section 7.05
Architect’s Certificate

 

The
certificate of the Architect shall bind the parties as to: (a) the percentage
of the total Rentable Area of the Building and/or Development damaged or
destroyed; (b) whether or not the Premises are rendered untenantable
unfit for use by the Tenant and the percentage of the Premises rendered untenantable
unfit for use by the Tenant; (c) the date upon which either the Landlord’s or
Tenant’s work of reconstruction or repair is completed or substantially
completed and the date when the Premises are rendered tenantable; and (d) the
state of completion of any work of the Landlord or the Tenant.

 

ARTICLE VIII - ASSIGNMENT, SUBLETTING AND TRANSFERS

Section 8.01 Assignments, Subleases and Transfers

 

The
Tenant shall not enter into, consent to, or permit any Transfer without the
prior written consent of the Landlord in each instance, which consent shall not
be unreasonably withheld but shall be subject to the Landlord’s rights under
Section 8.02. Notwithstanding any statutory provision to the contrary, it shall
not be considered unreasonable for the Landlord to take into account the
following factors in deciding whether to grant or withhold its consent: (a)
whether such Transfer is in violation or in breach of any covenants or
restrictions made or granted by the Landlord to other tenants or occupants or
prospective tenants or occupants with whom the Landlord is having active
negotiations, of the Building

 

11

 

Development; (b) whether in the Landlord’s
opinion, the financial background, business history and capability of the proposed
Transferee is satisfactory; and (c) if the Transfer is to an existing tenant of
the Landlord. Consent by the Landlord to any Transfer if granted shall not
constitute a waiver of the necessity for such consent to any subsequent
Transfer. This prohibition against Transfer shall include a prohibition against
any Transfer by operation of law and no Transfer shall take place by reason of
the failure of the Landlord to give notice to the Tenant within 30 days as
required by Section 8.02.

 

Section
8.01A Related Corporation

 

However, notwithstanding anything to the
contrary contained in Section 8.01, so long as the Tenant is and is itself in
occupation of the whole of the Premises, and has not failed or neglected to
remedy or commenced to remedy any default or breach of its obligations as set
out in this Lease after notice and within the times as set forth in this Lease,
the Tenant shall have the right without the consent of the Landlord, but upon
prior written notice to the Landlord, to assign this Lease or sublet the whole
of the Premises to a corporation which is an affiliate of (within the meaning
of the Canada Business Corporations Act), but only so long as:

 

(A)          such affiliate remains an affiliate of ;

 

(B)                                such assignee
or sublessee shall be bound by the permitted use set out in Section [Use and
Conduct of Business] of this Lease;

 

(C)           all of the provisions of Section 8.03
shall apply in respect of the Transfer; and

 

(D)          The Tenant shall remain liable under
this Lease and shall not be released from per[orming any of the terms of this Lease.

 

In the event of any further proposed Transfer,
the terms of this Lease shall prevail as if this

Section 8.01A had not formed part of this Lease.

 

Section 8.02 Landlord’s Right to Terminate

 

If the Tenant intends to effect a Transfer, the
Tenant shall give prior notice to the Landlord of such intent specifying the
identity of the Transferee, the type of Transfer contemplated, the portion of
the Premises affected thereby, and the financial and other terms of the
Transfer, and shall provide such financial, business or other information
relating to the proposed Transferee and its principals as the Landlord or any
Mortgagee requires, together with copies of any documents which record the
particulars of the proposed Transfer. The Landlord shall, within 30 days after
having received such notice and all requested information, notify the Tenant
either that:

 

(a)           it consents or does not consent to
the Transfer in accordance with the provisions and qualifications of this
Article VIII; or

 

(b)                                 it elects to
cancel this Lease as to the whole or the relevant part, as the case may be, of
the Premises affected by the proposed Transfer, in preference to giving such
consent.

 

If the Landlord elects to terminate this Lease
it shall stipulate in its notice the termination date of this Lease, which date
shall be no less than 30 days nor more than 90 days following the giving of
such notice of termination. If the Landlord elects to terminate this Lease, the
Tenant shall notify the Landlord within 10 days thereafter of the Tenant’s
intention either to refrain from such Transfer or to accept termination of this
Lease or the portion thereof in respect of which the Landlord has exercised its
rights. If the Tenant fails to deliver such notice within such 10 days or
notifies the Landlord that it accepts the Landlord’s termination, this Lease
will as to the whole or affected relevant part
of the Premises, as the case may be, be terminated on the date of termination
stipulated by the Landlord in its notice of termination. If the Tenant notifies
the Landlord within 10 days that it intends to refrain from such Transfer, then
the Landlord’s election to terminate this Lease shall become void.

 

Section
8.03 Conditions of Transfer

 

The following terms and conditions apply in
respect of a Transfer:

 

(a)                                  If there is a
permitted Transfer, the Landlord may collect rent from the Transferee and apply
the net amount collected to the Rent payable under this Lease but no acceptance
by the Landlord of any payments by a Transferee shall be deemed a waiver of the
Tenant’s covenants or any acceptance of the Transferee as tenant or a release
from the Tenant from the further performance by the Tenant of its obligations
under this Lease. Any consent by the Landlord shall be subject to the Tenant
and Transferee executing an agreement with the Landlord agreeing:

 

(i)                                     that the
Transferee will be bound by all of the terms of this Lease and, except in the
case of a sublease, that the Transferee will be so bound as if it had
originally executed this Lease as tenant; and

 

(ii)                                  to amend the Lease to incorporate such terms, covenants and
conditions as are necessary so that the Lease will be in accordance with the
Landlord’s standard form of office lease in use for the Building at the time of
the Transfer, and so as to incorporate any conditions imposed by the Landlord
in its consent or required by this Section 8.03

 

12

 

 

(b)                                 The Tenant
making such Transfer shall remain liable under this Lease and shall not be
released from performing any of the terms of this Lease.

 

(c)                                  If the Landlord has space which would be suitable
for the Transferee elsevwhere in the Development, the net and additional rent
payable by the Transferee shall not be less than the Rent payable by the Tenant
under this Lease as at the effective date of the Transfer, (including any
increases provided for in this Lease), and if the net and additional rent to be
paid by the Transferee under such Transfer exceeds the Rent payable under this
Lease, the Tenant shall be entitled to deduct
from such excess (the “Excess”) the Tenant’s out of pocket costs, if
any, for brokerage fees, legal fees,
financial inducements paid by the Tenant to the Transferee and the Tenant’s cost of
constructing Leasehold Improvements on behalf
of the Transferee as follows: The
costs shall be amortized monthly on a
straight line basis over zero over
the term of the sublease or the assignment,
as the case may be (the “Amortized Amount”); and fifty percent (50%}
of the Excess less the Amortized
Amount - shal] be paid by the Tenant to the Landlord on the first day of each
month of the term of the sublease
of assignment. The Tenant shall provide the Landlord with proof of the payment
of such third party costs in the
form of paid invoices. If the Tenant receives from any Transferee, either
directly or indirectly, any consideration other than rent or additional rent
for such Transfer, either in the form of cash, goods or services (other than
the proceeds of any financing as the result of a Transfer involving a mortgage,
charge or similar security interest in this Lease) the Tenant shall forthwith
pay to the Landlord an amount equivalent to such consideration. The Tenant and
the Transferee shall execute any agreement required by the Landlord to give
effect to the foregoing terms.

 

(d)                                 If the Transfer
is a sublease, the Transferee will agree to waive any statutory right to retain
the unexpired portion of the term of the sublease or the Term of this Lease or
to enter into a lease directly with the Landlord, in the event this Lease is
terminated, surrendered, disclaimed or otherwise disposed of or dealt with.

 

(e)                                  Notwithstanding
the effective date of any permitted Transfer as between the Tenant and the
Transferee, all Rent for the month in which such effective date occurs shall be
paid in advance by the Tenant so that the Landlord will not be required to
accept partial payments of Rent for such month from either the Tenant or
Transferee.

 

(f)                                    Any document
evidencing any Transfer permitted by the Landlord, or setting out any terms
applicable to such Transfer or the rights and obligations of the Tenant or
Transferee thereunder, shall be prepared by the Landlord or its solicitors and
all associated legal costs shall be paid by the Tenant.

 

Section 8.04 Change of
Control

If
the Tenant is at ahy time a corporation or partnership, any actual or proposed
Change of Control in such corporation or partnership shall be deemed to be a
Transfer and subject to all of the provisions of this Article VIII. The Tenant
shall make available to the Landlord or its representatives all of its
corporate or partnership records, as the case may be, for inspection at all
reasonable times, in order to ascertain whether any Change of Control has
occurred.

 

Section 8.05 No Advertising

The Tenant shall not advertise that the whole
or any part of the Premises are available for a Transfer a~d shall not permit
any broker or other Person to do so unless the text and format of such
advertisement is approved in writing by the Landlord. No such advertisement
shall contain any reference to the rental rate of the Premises.

 

Section 8.06 Assignment By Landlord

 

The Landlord shall have the unrestricted right
to sell, lease, convey or otherwise dispose of all or any part of the Building
or Lands or this Lease or any interest of the Landlord in this Lease. To the
extent that the purchaser or assignee from the Landlord assumes the obligations
of the Landlord under this Lease, the Landlord shall thereupon and without
further agreement be released from all liability under this Lease.

 

ARTICLE IX - DEFAULT

 

Section 9.01 Default and Remedies

 

If and whenever an Event of Default occurs,
then without prejudice to any other rights which it has pursuant to this Lease
or at law, the Landlord shall have the following rights and remedies, which are
cumulative and not alternative:

 

(a)           to terminate this Lease by notice to
the Tenant;

 

(b)                                 to enter the
Premises as agent of the Tenant and to relet the Premises for whatever term,
and on such terms as the Landlord in its discretion may determine and to
receive the rent therefor and as agent of the Tenant to take possession of any
property of the Tenant on the Premises, to store such property at the expense
and risk of the Tenant or to sell or otherwise dispose of such

13

 

 

property in such manner as the Landlord may see
fit without notice to the Tenant; to make alterations to the Premises to
facilitate their reletting; and to apply the proceeds of any such sale or
reletting first, to the payment of any expenses incurred by the Landlord with
respect to any such reletting or sale; second, to the payment of any
indebtedness of the Tenant to the Landlord other than rent; and third, to the
payment of Rent in arrears; with the residue to be held by the Landlord and
applied in payment of future Rent as it becomes due and payable. The Tenant
shall remain liable for any deficiency to the Landlord;

 

(c)                                  to
remedy or attempt to remedy any default of the Tenant under this Lease for the
account of the Tenant and to enter upon the Premises for such purposes. No
notice of the Landlord’s intention to perform such covenants need be given the
Tenant unless expressly required by this Lease. The Landlord shall not be liable
to the Tenant for any loss, injury or damage caused by acts of the Landlord in
remedying or attempting to remedy such default and the Tenant shall pay to the
Landlord all expenses incurred by the Landlord in connection with remedying or
attempting to remedy such default;

 

(d)                                 to recover from
the Tenant all damages, and expenses incurred by the Landlord as a result of
any breach by the Tenant including, if the Landlord terminates this Lease, any
deficiency between those amounts which would have been payable by the Tenant
for the portion of the Term following such termination and the net amounts
actually received by the Landlord during such period of time with respect to
the Premises;

 

(e)                                  to
recover from the Tenant the full amount of the current month’s Rent together
with the next 3 months’ instalments of Rent, all of which shall accrue on a
day-to-day basis and shall immediately become due and payable as accelerated
rent (it is agreed that upon the Tenant paying such 3 months accelerated rent
the Landlord shall not be entitled to take its remedies for a failure to pay
rent during the 3 months for which such accelerated rent was paid); and

 

(f)                                    if the Lease
has been terminated in accordance with Section 9.01(a), to recover from the
Tenant the unamortized portion of any leasehold improvement allowance or
inducement paid by the Landlord under the terms of this Lease, calculated from
the date which is the later of the date of payment by the Landlord or the
Commencement Date, on the basis of an assumed rate of depreciation on a
straight line basis to zero over the initial Term of this Lease.

 

Section 9.02 Distress

 

Notwithstanding any provision of this Lease or
any provision of applicable legislation, none of the goods and chattels of the
Tenant on the Premises at any time during the Term shall be exempt from levy by
distress for Rent in arrears, and the Tenant waives any such exemption. If the
Landlord makes any claim against the goods and chattels of the Tenant by way of
distress, this provision may be pleaded as an estoppel against the Tenant in
any action brought to test the right of the Landlord to levy such distress.

 

Section 9.03 Costs

 

The
prevailing party shall pay to the other party all damages and costs
(including,,without limitation, all legal fees on a solicitor and his client
basis) incurred by the prevailing party in enforcing the terms of this Lease,
or with respect to any matter or thing which is the obligation of the Landlord
or Tenant under this Lease, or in respect of which either party has agreed to
insure, or to indemnify the other.

 

Section 9.04 Allocation
of Payments

 

The Landlord may at its option apply sums
received from the Tenant against any amounts due and payable by the Tenant
under this Lease in such manner as the Landlord sees fit.

 

Section
9.05 Survival of Obligations

 

If the Tenant has failed to fulfil its
obligations under this Lease with respect to the maintenance, repair and
alteration of the Premises and removal of improvements and fixtures from the
Premises during or at the end of the Term, such obligations and the Landlord’s
rights in respect thereto shall remain in full force and effect notwithstanding
the expiration or sooner termination of the Term.

 

ARTICLE X - STATUS STATEMENT, ATTORNMENT AND SUBORDINATION

Section 10.01 Status Statement

 

Within 15 days after written request by the
Landlord, the Tenant shall deliver in a form supplied by the Landlord a
statement or estoppel certificate to the Landlord as to the status of this
Lease, including as to whether this Lease is unmodified and in full force and
effect (or, if there have been modifications that this Lease is in full force
and effect as modified and identifying the modification agreements); the amount
of Net Rent and Additional Rent then being paid and the dates to which same
have been paid; whether or not there is any existing or alleged default by
either party with respect to which a notice of default has been served and if
there is any such default, specifying the nature and extent thereof; and any
other matters pertaining to this Lease as to which the Landlord shall request
such statement or certificate.

 

14

 

Section 10.02 Subordination

 

This Lease and all rights of the Tenant shall,
subject to any Mortgagee agreeing to execute
and deliver to the Tenant a non-disturbance agreement on terms and conditions satisfactory
to the Tenant, acting reasonably, be
subject and subordinate to any and all Mortgages and any ground, operating,
overriding or underlying leases, from time to time in existence against the
Lands and Building. On request, the Tenant shall subordinate this Lease and its
rights under this Lease to any and all such Mortgages and leases and to all
advances made under such Mortgages. The form of such subordination shall be as
required by the Landlord or any Mortgagee or the lessee under any such lease.

 

Section 10.03 Attornment

 

The Tenant shall promptly, on request, attorn
to any Mortgagee, or to the owners of the Building and Lands, or the lessor
under any ground, operating, overriding, underlying or similar lease of all or
substantially all of the Building made by the Landlord or otherwise affecting
the Building and Lands, or the purchaser on any foreclosure or sale proceedings
taken under any Mortgage, and shall recognize such Mortgagee owner, lessor or
purchaser as the Landlord under this Lease.

 

Section 10.04 Execution
of Documents

 

The Tenant irrevocably constitutes the Landlord
the agent and attorney of the Tenant for the purpose of executing any
agreement, certificate, attornment or subordination required by this Lease and
for registering postponements in favour of any Mortgagee if the Tenant fails to
execute such documents within 5 days of the second
notice from the Landlord after the Tenant
has failed to respond to an initial 10 day notice request by the
Landlord

 

ARTICLE
Xl - GENERAL PROVISIONS

 

Section 11.01 Rules and Regulations

 

The
Tenant shall comply with all Rules and Regulations, and amendments thereto,
adopted by the Landlord from time to time including those set out in Schedule
“D”. Such Rules and Regulations may differentiate between different types of
businesses in the Building, and the Landlord shall have no obligation to
enforce any Rule or Regulation or the provisions of any other lease against any
other tenant, and the Landlord shall have no liability to the Tenant with
respect thereto.

 

Section 11.02 Delay

 

Except as expressly provided in this Lease,
whenever the Landlord or Tenant is delayed in the fulfilment of any obligation
under this Lease (other than the payment of Rent and surrender of the Premises
on termination) by an unavoidable occurrence which is not the fault of the
party delayed in performing such obligation, then the time for fulfilment of
such obligation shall be extended during the period in which such circumstances
operate to delay the fulfilment of such obligation.

 

Section
11.03 Overholding

 

If the Tenant remains in possession of the
Premises after the end of the Term with the consent of the Landlord but without
having executed and delivered a new lease or an agreement extending the Term,
there shall be no tacit renewal of this Lease, and the Tenant shall be deemed
to be occupying the Premises as a Tenant from month to month at a monthly Net
Rent payable in advance on the first day of each month equal to twice 125% of
the monthly amount of Net Rent payable during the last month of the Term for
the first 3 months of such month to month term and 150% thereafter, and
otherwise upon the same terms as are set forth in this Lease, so far as these
are applicable to a monthly tenancy.

 

Section 11.04 Waiver

 

If either the Landlord or Tenant excuses or
condones any default by the other of any obligation under this Lease, no waiver
of such obligation shall be implied in respect of any continuing or subsequent
default.

 

Section 1l.05 Registration

 

Neither the Tenant nor anyone claiming under
the Tenant shall register this Lease or any Transfer without the prior written
consent of the Landlord. If the Tenant or any permitted Transferee wishes to register
a document for the purposes of giving notice of this Lease or a Transfer, then
the Landlord shall, at the request and expense of the Tenant, execute a notice,
caveat or short form of Lease for the purposes of registration in such form as
approved by the Landlord and without disclosure of any terms which the Landlord
does not desire to have disclosed. If the Lands comprise more than one parcel
of land, the Landlord may direct the Tenant or Transferee as to the parcel or
parcels against which registration may be effected.

 

Section 11.06 Notices

 

Any notice, consent or other instrument which
may be or is required to be given under this Lease shall be in writing and
shall be delivered in person or by commercial delivery service addressed: (a)
if to the Landlord: c/o The Cadillac Fairview Corporation Limited, 20 Queen
Street West, Toronto, Ontario M5H 3R4, Attention: Corporate Secretary, with a
copy to the Cornwall Centre Manager, Cornwall Centre, #202, 2114-11th Avenue,
Regina, Saskatchewan S4P 0J5, (b) if to the Tenant, at at 100 Garfield Street,
Denver, Colorado 80206 Attention: V.P. Real
Estate.

 

15

 

Any such notice or other instrument shall be
deemed to have been given and received on the day upon which personal delivery
or delivery by commercial delivery service is
made provided any commercial delivery must be
signed for by a representative of the Landlord or Tenant as the case may be, or if mailed, then 48 following the date
of mailing. Either party
may give notice to the other of any change of address and after the giving of
such notice, the address therein specified is deemed to be the address of such
party for the giving of notices. If postal service is interrupted or
substantially delayed, all notices or other instruments shall be delivered in
person.

 

Section 11.07 Successors

 

The
rights and liabilities created by this lease extend to and bind the successors
and assigns of the Landlord and the heirs, executors, administrators and
permitted successors and assigns of the Tenant. No rights, however, shall enure
to the benefit of any Transferee unless the provisions of Article VIM are
complied with.

 

Section 11.08 Joint and Several
Liability

 

If there is at any time more than one Tenant or
more than one Person constituting the Tenant, their covenants shall be
considered to be joint and several and shall apply to each and every one of
them. if the Tenant is or becomes a partnership, each Person who is a member,
or shall become a member, of Such partnership or its successors shall be and
continue to be jointly and severally liable for the performance of all
covenants of the Tenant pursuant to this Lease, whether or not such Person
ceases to be a member of such partnership or its successor.

 

Section 11.09 Captions
and Section Numbers

 

The
captions, section numbers, article numbers and table of contents appearing in
this lease are inserted only as a matter of convenience and in no way affect
the substance of this Lease.

 

Section 11.10 Extended
Meanings

 

The
words “hereof”, “hereto” and “hereunder” and similar expressions used in this
Lease relate to the whole of this Lease and not only to the provisions in which
such expressions appear. This Lease shall be read with all changes in number
and gender as may be appropriate or required by the context.  Any reference to the Tenant
includes where the content allows, the employees, agents, invitees, and
licenses of the Tenant and all others over whom the Tenant might be reasonably
expected to exercise control.

 

Section 11.11 Partial Invalidity

 

All
of the provisions of this Lease are to be construed as covenants even though
not expressed as such. If any such provision is held or rendered illegal or
unenforceable it shall be considered separate and severable from this Lease and
the remaining provisions of this Lease shall remain in force and bind the
parties as though the illegal or unenforceable provision had never been
included in this Lease.

 

Section 11.12 Entire
Agreement

 

This
Lease and the Schedules and riders, if any, attached hereto and the Landlord’s
leasehold improvement manual, set forth the entire agreement between the
Landlord and Tenant concerning the Premises and there are no agreements or
understandings between them other than as are herein set forth. Subject to
Section 11.01, this Lease and its Schedules and riders may not be modified
except by agreement in writing executed by the Landlord and Tenant.

 

Section 11.13 Governing Law

 

This
Lease shall be construed in accordance with and governed by the laws of the
Province.

 

Section 11.14 Time of the Essence

 

Time
is of the essence of this Lease.

 

Section 11.15 Quiet Enjoyment

 

If
the Tenant pays Rent, fully performs all of its obligations under this Lease,
and there has been no Event of Default, the Tenant shall be entitled to
peaceful and quiet enjoyment of the Premises for the Term without interruption
or interference by the Landlord or any Person claiming through the Landlord.

 

Section 11.16 Execution

 

If
the Tenant is a corporation, the Tenant confirms and agrees that this Lease has
been executed by its authorized signatories and that if only one signatory has
signed this Lease, the Tenant is authorized by its articles of incorporation or
other constating documents to execute leases by such sole authorized signatory
and if this Lease is not executed under seal by the Tenant, the Tenant is
authorized by its articles of incorporation or other constating documents to
execute leases without a seal.

 

Section 11.17 Parking

 

The
Tenant will enter into a parking license
agreement with the Landlord from the date the Tenant commences business in the Premises
to the expiry or earlier termination of the Term and any

16

 

 

renewals, for a total of two hundred and
twenty-five (225) unreserved, non-guaranteed, parking stalls at the Building in
an area to be designated by the Landlord. The Landlord acknowledges that no
direct charge shall be attributable to the parking stalls for the initial Term
of the Lease. The Landlord agrees to provide the initial set of 225 access
cards for the parking facility free of charge. The Tenant will be responsible
for the costs associated with replacement cards throughout the Term and any
renewals.

 

Section
11.18 Restrictive Covenant

 

Provided the Tenant is not in default under the
Lease and so long as the Tenant is STARTEK CANADA SERVICES LTD. and is itself
in occupation of and carrying on business in the not less than 80% of the
Rentable Area of the Premises (except where the Tenant is permitted to cease
operating for renovations or due to damage or destruction pursuant to this
Lease), the Tenant expressly acknowledging and agreeing that this section is
personal to the Tenant and is not transferable, then prior to and during the
initial Term of the Lease only, and excluding any renewal or extension thereof,
the Landlord will not lease any other premises in the Development (excluding
any expansions thereof) to a tenant whose principal business is a call centre
and that is a direct competitor of the Tenant, offering the same services.

 

It is further understood that the Landlord is
not obligated to enforce the aforementioned covenant against any Person if by
doing so it shall be in breach of any laws, rules or regulations from time to
time in force, and no provision of this Lease is intended to apply or to be
enforceable to the extent that it would give rise to any offence under the
Competition Act (Canada), or any statute that may be substituted therefore, as
from time to time amended. Provided further that as the aforementioned covenant
has been granted only at the Tenant’s request, the Tenant shall indemnify and
hold the Landlord harmless from any loss, injury, or damage suffered by the
Landlord as a result of breaching any such legislation as aforesaid, including
all expenses incurred in connection with any claims, actions, or proceedings
brought with respect thereto, whether of a criminal or civil nature, and will
reimburse the Landlord for any and all costs or expenses incurred in connection
with any enforcement of this covenant by the Landlord, including legal fees on
a solicitor and client basis.

 

Section
11.19 First Option to Renew

 

So long as the Tenant is STARTEK CANADA
SERVICES LTD. and duly and regularly pays the Rent and observes and pertorms all
of the covenants and agreements herein contained on the part of the Tenant to
be paid, observed and performed and if no Event of Default shall have occurred,
the Landlord, upon written request by the Tenant delivered not less than twelve
(12) months before the expiration of the Term, shall grant to the Tenant a
renewal of this Lease for a further period of three (3) years (the “First
Renewal Term”) upon the same terms, covenants and conditions as are herein
contained except as to Net Rent and the Tenant will accept the Premises on an
“as is” basis with no Landlord’s work to be pertormed and no inducements or
allowances shall be payable by
the Landlord.

 

The Net Rent payable during the First Renewal
Term shall be an amount which is mutually agreed upon between the Landlord and
the Tenant no later than nine (9) months prior to the expiry of the Term, based
upon the fair market rent for renewing call centre tenants in similar premises
of similar condition in a similar building at the time of the exercise of this
option to renew and failing agreement in such time period, Net Rent shall be
determined by a single arbitrator under the Commercial
Arbitration Act of British Columbia.

 

If the Tenant fails to give the appropriate
notice within the time limit set out herein for extending the Term, then this
Section and Section 11.20 shall be null and void and of no further force and
effect. If the Tenant gives such appropriate notice within the time limit set
out herein for extending the Term and the Landlord and Tenant agree on the fair
market rent payable, it will forthwith execute the documentation required by
the Landlord to give effect to the First Renewal Term.

 

Section
11.20 Second Option to Renew

 

So long as the Tenant is STARTEK CANADA
SERVICES LTD., and has exercised its First Option to Renew as set out in
Section 11.19 and duly and regularly pays the Rent and observes and performs
all of the covenants and agreements herein contained on the part of the Tenant
to be paid, observed and performed and if no Event of Default shall have
occurred, the Landlord, upon written request by the Tenant delivered not less
than twelve (12) months before the expiration of the First Renewal Term, shall
grant to the Tenant a renewal of this Lease for a further period of three (3) years
(the “Second Renewal Term”) upon the same terms, covenants and conditions as
are herein contained except as to Net Rent and except that there shall be no
further right of renewal and the Tenant will accept the Premises on an “as is”
basis with no Landlord’s work to be performed and no inducements or allowances
shall be payable by the Landlord.

 

The Net Rent payable during the Second Renewal
Term shall be an amount which is mutually agreed upon between the Landlord and
the Tenant no later than nine (9) months prior to the expiry of the First
Renewal Term, based upon the fair market rent for renewing call centre tenants
in similar premises of similar condition in a similar building at the time of
the exercise of this option

 

17

 

 

to renew and failing agreement in such time
period, Net Rent shall be determined by a single arbitrator under the Commercial Arbitration Act of British
Columbia.

 

If the Tenant fails to give the appropriate
notice within the time limit set out herein for extending the Term, then this
Section shall be null and void and of no further force and effect. If the
Tenant gives such appropriate notice within the time limit set out herein for
extending the Term and the Landlord and Tenant agree on the fair market rent
payable, it will forthwith execute the documentation required by the Landlord
to give effect to the Renewal Term.

 

Section
11.21 Leasehold Improvement Allowance

 

Provided the Tenant is not in default under
this Lease, the Landlord will pay the Tenant a leasehold improvement allowance
of FOURTEEN DOLLARS ($14.00) per square foot of the Rentable Area of the
Premises (the “Allowance”) to be applied towards the cost of construction of
the Tenant’s leasehold improvements. Ninety percent (90%) of the Allowance will
be paid fifteen (15) days after the last to occur of:

 

(a)                                  occupancy of
the Premises by the Tenant for busines

 

(b)                                 execution of
the Lease by all parties; and

 

(c)                                  receipt by the
Landlord of a statutory declaration documenting (i) that payment has been   made in full to all contractors,
sub-contractors, suppliers and any other personnel retained to complete
construction of the Tenant’s leasehold improvements; (ii) the last date on
which any work was done or materials were provided in connection with the
construction of the leasehold improvements; and (iii) that all assessments
under the Workers’ Compensation Act against the Tenant, its contractors,
subcontractors and other persons or business entities who performed work in the
Building or the Premises in connection with the Tenant’s work have been paid in
full.

 

The remaining ten percent (10%) of the
Allowance will be paid forthwith after the expiry of the statutory lien period,
provided no liens have been registered in respect of the Tenant’s leasehold
improvements. To the extent that the Allowance exceeds the cost of
construction, such extra amount will be applied by the Landlord to the first
rentals due under the Lease. The Tenant agrees to provide invoices documenting
the cost of construction.

 

If the Tenant becomes bankrupt or takes the
benefit of any statute for bankrupt or insolvent debtors (including, without
limiting the generality of the foregoing, the Companies’ Creditors Arrangement
Act, R.S.C. 1985, c. C-36, as amended or replaced) then the Tenant will repay
to the Landlord, as Additional Rent, the unamortized portion of the Allowance,
calculated from the date of payment by the Landlord, on the basis of an assumed
rate of depreciation on a straight-line basis to zero over the initial Term.

 

Section
11.22 Satellite Dish

 

Provided the Tenant is not in default under the
Lease, it shall be permitted to install at the Tenant’s sole cost one (t)
satellite dish on the roof of the Building, subject to appropriate space being
available, in a location mutually agreed upon between the Landlord and Tenant
according to detailed specifications and plans as approved by the Landlord
prior to installation. The Tenant shall pay all costs of the Landlord and or
any consultants required to review the specifications and plans. The Tenant
agrees to execute the Landlord’s standard telecommunication license agreement.
The Tenant also agrees to pay all utility costs and any other cost associated
with the operation and use of the satellite dish. The Tenant shall at the
expiry of the Term or early termination thereof remove the satellite dish and
all wiring associated with the satellite dish and repair any damages caused to
the Building by either the
installation or removal of the satellite dish, all at the Tenant’s sole cost.
This section shall survive the expiry or earlier termination of this Lease.

 

Section
11.23 Early Occupancy

 

The Tenant shall, at the Landlord’s option, be
permitted occupancy of the Premises at any time after the Lease has been fully
executed for the purposes of fixturing and conducting business. During any
period prior to the Commencement Date during which the Tenant is permitted to
have occupancy of the Premises, whether exclusively or in common with the
Landlord and its contractors and employees, the Tenant shall be deemed to be in
possession of Premises and shall be bound by all of the provisions of the
Lease, as hereinafter defined, except those requiring payment of Net Rent.
During this early occupancy period, the Tenant shall be responsible for the
payment of Additional Rent and all other services that the Tenant uses, such as
but not limited to utilities, cleaning services, maintenance services or other
building services. The Landlord acknowledges that the Tenant is working towards
an April 28, 2003 date to occupy the Premises for approximately 250 persons.
The Landlord shall make reasonable efforts and shall work diligently to
accommodate such date it being understood that the Premises may not be complete
on such date, that the Tenant will be operating with temporary electrical and
mechanical systems and that the new elevator being provided for the Premises
will not be functional on such date.

 

18

 

Section
11.24 Landlord’s Work

 

The Landlord agrees to perform the work set out
below in respect of the Premises on a “once only” basis (also herein referred
to a~ “Landlord’s Work”). It is understood and agreed that the Landlord is not
required to provide any materials or to do any work to or in respect of the
Premises except the Landlord’s Work and materials listed below and Landlord’s
Work will be performed in accordance with the Landlord’s specifications and
using standard finishes for the Building:

 

Architectural Systems

Existing partition demolition

Removal of existing flooring

Selective floor patching (cracks if required)

Prepare exterior walls for paint

Prepare interior columns for paint

Selective floor demolition for new elevator
shafts

Construction of new elevator shafts

Scaffold / protection at escalator

Remove escalator

Infill floor at escalator / fireproofing

Removal of firerated walls at escalator

Remove mirrors from skylight bulkhead and
leaving surfaces prepared for new finish

New “punched” aluminum windows (east) - 9
windows based on Tenant’s preliminary plans

New firefighters access at 11th Avenue

Concrete ramp at north entrance (interior or
exterior)

Exterior entrance and interior vestibule
framing and doors for the north entrance including a canopy to a maximum value
of $8,000. Doors and framing to be clear anodized aluminum with double glazing
on exterior doors 

and single glazing on interior doors. Hardware
for doors to be standard entrance hardware

All security and card access systems (including
those for the lobby door) will be by tenant.

New firerated / acoustic walls at emergency
generator

Doors, frames and hardware at emergency generator

New firerated / walls at mechanical /
electrical rooms

Doors, frames and hardware at
mechanical/electrical rooms

Remove existing washroom finishes

New finishes to existing washrooms

Remove existing ceiling tiles (grid to remain)

Main floor lobby (11th Avenue) complete with
finishes

 

Vertical
Movement

Existing
stairs to remain

Two
new passenger elevators at 11th Avenue including finishes to Landlord’s base
building specifications

 

Mechanical Svstems

Dedicated gas lines and metering (not including
any deposits required by the gas provider)

New potable water line / pumps

Check meter on water consumption

New insulated water lines to vav boxes

Existing sprinkler system to remain

Sprinkler heads at mechanical/electrica/lgenerator only

New plumbing fixtures at existing washrooms

Installation of two 80 ton chillers (including
air handlers, piping and duct connections to existing

ductwork on 3rd floor, structural improvements
and access stairs as necessary)

Existing thermostats to VAV boxes to remain

 

The Tenant acknowledges that it shall supply
and install all boiler/s, piping, pump/s and control systems, engineered to
suit the tenant load requirements and as necessary for pre-heating the
chiller/fan units being supplied by the Landlord, (2-80 ton chiller/fan units
located on the upper roof of the mechanical penthouse), and the existing
variable air volume boxes, (vav’s) located above the ceiling throughout the
third floor space. The existing boiler piping, distribution, vav boxes and
controls shall be modified as necessary to suit the new roof top units,
distribution and controls as being supplied and installed by the Tenant.

 

Electrical Systems

New service (location / entry to be
determined), metered, and terminated at main panel (not

including any deposits required by the
electicity provider)

New electrical distribution centre which
consists of a 347/600 volt normal power distribution switchboard c/w molded
case main breaker and fuseable switches for distributing power to the tenant’s
loads. The Landlord will extend the power from the main electrical room to four
satellite electrical rooms, (constructed by the Landlord) located to suit the
Tenant plan, at the perimeter of the third floor and terminating at new
electrical panels. Each of the four electrical closets will include a
transformer from 600 volt to 120/208 volts and two 66 circuit panel boards c/w
breakers

 

19

 

 

to facilitate branch circuitry to the Tenant
space. All conductor runs from the panels to the Tenant space will remain the
responsibility of the Tenant.

Electrical service to provide 10 watts / sq.
ft.

New
fire alarm enunciator at main floor

Fire alarm tie-ins to third floor

Flow valves on sprinkler systems / alarm

New lighting at existing washrooms

Remove existing light fixtures (retrofit/clean
as required by schedule provided by tenant)

Existing plugs in existing columns to remain

Electrical connection of roof top units

The Tenant acknowledges that it must provide
standpower power as the existing system of emergency lighting and standby
generator in not available for
use by the Tenant.

 

As of the Commencement Date the Tenant shall have
a one (1) month period to advise the Landlord of any visible defect(s)
affecting any Leasehold Improvements within the Premises as a result of the
Landlords Work and such construction and the Landlord shall repair such defects
on a timely basis.

 

Section
11.25 Building Signage

 

The Tenant shall, subject to municipal
approval, be permitted to put a canopy with signage over the street entrance to
the elevator lobby for the Premises, at the Tenant’s sole cost. The location,
size, material, installation, operation, and other specifications of the
signage shall be approved at the reasonable discretion of the Landlord. The
Tenant shall pay all costs of the Landlord and or any consultants required to
review the specifications and plans. Any cost associated with the ongoing use,
or maintenance of the signage shall be to the account of the Tenant. The Tenant
shall remove the signage at the expiry or early termination of the Term, and
agrees to repair any and all damages to the Development caused by the
installation, or removal of the exterior signage, and all such work shall be
preformed at the sole cost of the Tenant.

 

Section
11.26 Tenant’s Generator

 

The
Tenant may during the term of this Lease, at its own expense install and
thereafter maintain and operate a back-up power system and all related wiring,
fuel sources and ancillary equipment (collectively, the “Equipment”) in the
location designated by the Landlord on the roof of the Building or in an area
approved by the Landlord within the Premises. The Equipment shall be used only
for the Tenant’s own business purposes in the event the Tenant’s primary
electrical service is interrupted and not for the benefit of any sub-tenant,
assignee, licensee or other occupant of the Premises or Building. Prior to
installation, the Tenant shall obtain the Landlord’s prior written approval of
the plans and specifications for all Equipment to be installed. The Tenant
agrees at its sole expense to comply with all applicable laws, ordinances,
rules, regulations and requirements of all governmental and quasi-governmental
authorities having jurisdiction and also with all requirements of the
Landlord’s insurer and/or mortgagee in connection with the installation,
repair, maintenance or operation of the Equipment. The Tenant shall at its own
expense obtain all approvals, permits, and licenses required for the Equipment,
and will deliver copies thereof to the Landlord.

 

The Tenant acknowledges and agrees that the
installation, maintenance, repair and use of the Equipment shall not, in the
Landlord’s reasonable opinion, interfere with or adversely affect any use of
the Building or of any other space or equipment used by the Landlord or any
other tenant or occupant of the Building. The Tenant agrees at its expense to
install, repair, maintain, replace and remove the Equipment in a manner that is
compatible with the appearance and
character of the Building. The Tenant will pay for all utility services
including, without limitation, electricity or natural gas, required for the
Tenant’s use of the Equipment. The Tenant hereby releases the Landlord in
connection with all costs, claims, expenses, damages
or liabilities in connection with the Equipment in any way. The
Tenant will provide the Landlord with satisfactory evidence that its property
insurance and liability coverage obtained in connection with the Lease, extend
to the occupancy on the roof or the Premises, as the case may be, of the
Equipment and the operation of the Equipment therein and will indemnify and
hold harmless the Landlord from all claims, losses and damages arising from or
in any way connected with the operation of the Equipment. Notwithstanding
anything contained in this Lease, upon the expiration or earlier termination of
the this Lease, if the Landlord so directs the Tenant, it will remove the
Equipment at the Tenant’s sole expense and repair any damage to the Building
caused by such removal.

 

Section
11.27 Canadian Dollars

 

The parties acknowledge that all amounts
payable pursuant to this Lease are payable in Canadian Dollars.

 

Section
11.28 Freight Elevator

 

The Tenant acknowledges that it will have to
enter into a license agreement with Hudson’s Bay Company for the use of the
freight elevator and that it will be responsible for all costs associated

 

20

 

with
such use. The Landlord confirms that Hudson’s Bay Company has a contractual
obligation to enter into such freight elevator license and agrees to assist the
Tenant in obtaining such license.

 

Section 11.29
Tenant’s Contribution to Chillers

 

The Tenant agrees that as a
contribution to the cost of the chillers being Installed by the Landlord, it
will pay to the Landlord the sum of $150,000 immediately upon execution of this
Lease by both parties.

 

IN WITNESS WHEREOF the Landlord
and Tenant have executed this Lease.

 

	
  )

  	
   

  	
  CORNWALL
  CENTRE LIMITED

  
	
  )

  	
   

  	
  (Landlord)

  
	
  )

  	
   

  	
   

  
	
  )

  	
   

  	
  Per:

  	
  /s/  B. Murray

  
	
  )

  	
   

  	
  Authorized Signature

  
	
  )

  	
   

  	
  Per:

  	
  /s/  R. Wretschke

  
	
  )

  	
   

  	
   

  
	
  )

  	
   

  	
  Authorized Signature

  
	
  )

  	
   

  	
   

  
	
  )

  	
   

  	
  I/We have
  authority to bind the corporation.

  
	
  )

  	
   

  	
   

  
	
  )

  	
   

  	
   

  
	
  )

  	
   

  	
  STARTEK
  CANADA SERVICES LTD.

  
	
  )

  	
   

  	
  (Tenant)

  
	
  )

  	
   

  	
   

  
	
  )

  	
   

  	
  Per:

  	
  /s/  David I. Rasenthal

  
	
  )

  	
   

  	
  Authorized Signature

  
	
  )

  	
   

  	
   

  
	
  )

  	
   

  	
  Per:

  	
   

  
	
  )

  	
   

  	
  Authorized Signature

  
	
  )

  	
   

  	
   

  
	
  )

  	
   

  	
  I/We have
  authority to bind the corporation.

  

 

21

 

SCHEDULE "A" - LEGAL DESCRIPTION OF LANDS

 

A leasehold estate for a term
of seventy-six years, sixty-five days from the twenty-eighth day of October
1980, created by a lease of record in the Land Titles Office for the Regina
Land Registration District as NO. 80R 54810 of and in:

 

the whole of Block B1, Regina
Saskatchewanl Plan No. 01RA24328 excepting thereout:

 

A leasehold estate for a term
of seventy-six years, sixty-five days from the twenty-eighth day of October
1980, created by a lease of record in the Land Titles Office for the Regina
Land Registration District as NO. 81R 49004 of and in:

 

the whole of Block AA, Regina,
Saskatchewan, Plan 81R 42801, mines and minerals excepted.

 

22

 

SCHEDULE
“B” - FLOOR PLAN
OF THE PREMISES

 

	
  

  

 

The purpose of this plan is to identify the approximate location of the
Premises in the Building.

 

23

 

SCHEDULE
“C” DEFINITIONS

 

In this Lease and in the
Schedules to this lease

 

1.                                       “Additional Rent”  means all sums of money required to be paid by
the Tenant under this lease (except Net Rent) whether or not the same are
designated “Additional Rent” or are payable to the Landlord or otherwise.

 

2.                                       “Alterations” means all repairs,
replacements, improvements or alterations to the premises by the Tenart.

 

3.                                       “Architect” means the architect or land
surveyor from time to time named by the Landlord.

 

4.                                       “Building” means the multi-storey building
known municipality as 2150-11th Avenue, Regina, Saskatchewan from
and including the ground floor of such building to and including the roof
thereof and including all premises rented or intended to be rented therein
whether for office, retail, cafeteria, banking or  other purposes; and facilities serving the building or having
utility in connection therewith as determined by the landlord, whether or not
located directly under the building which areas and facilities may include,
without limitation internal mails sidewalks and plazas exhibit areas storage
and mechanical  areas janitor rooms mail
rooms telephone mechanical and electrical rooms stairways escalators elevators
truck and receiving areas driveways parking facilities loading docks and
corridors.

 

5.                                       “Business Tax” means all taxes (whether imposed
on the Landlord or Tenant) attributable to the personal property, trade
fixtures, business, income, occupancy or sales of the Tenant or any other
occupant of the Premises and to any leasehold improvements installed in the
Premises and to the use of the Building or Lands by the Tenant.

 

6.                                       “Capital Tax” means an amount determined by
multiplying each of the “Applicable Rates” by the “Building Capital” and
totaling the products. “Building Capital” to the amount of capital which the
Landlord determines, without duplication i.e. invested form time to time by the
Landlord, the owners of the Building or all of them in doing all or any of the
following: acquiring, developing, expanding, redeveloping and improving the
Lands and the Building. Building Capital will not be increased by any Financing
or refinancing unwept to the extent that the proceeds are invested directly as
Building Capital. An “Applicable Rate” is the capital tax rate specified form
time to time under any (illegible) of Canada and any of the Province which
imposes a tax in respect of the capital of corporations. Each Applicable Rate
will be considered to be the Rae that would apply if none of the Landlord or
the owners of the Building employed capital outside of the province.

 

7.                                       “Change of Control” means, in the case of
any corporation or partnership, the transfer or issue by sale, assignment,
subscription, transmission on death, mortgage, charge, security interest,
operation of law or otherwise, of any shares voting rights or Interest which would
result in any change in the effective control of such corporation or
partnership unless such change occurs as a result of trading in the shares of a
corporation listed on a recognized stock exchange in Canada or the United
States and then only so long as the Landlord receives assurance reasonably
satisfactory to it that there will be a continuity of management and of the
business practices of such corporation notwithstanding such Change of Control.

 

8.                                       “Commencement Data” means the date on which
the Term Commences under Section 1.02.

 

9.                                       “C.P.I.”(a) the Consumer Price Index (All
items for Regional Cities, base year 1992=100) for the city in which the
Building is located, or if there is no Consumer Price Index for that city, for
the city in Canada nearest the Building fro which there is a Consumer Price
Index published by Statistics Canada (or by a successor or other governmental
agency, Including a provincial agency), or (b) If the Consumer Price Index is
no longer published, an index published in substitution for the Consumer Price
Index or any replacement Index designated by the Landlord. If a substitution is
required, the Landlord will make the necessary conversions. If the base year
for the Consumer Price Index (or the substituted or replacement index ) is
changed by Statistics Canada ( or by its successor or other governmental
agency) the Landlord will make the necessary conversion.

 

10.                                 “Development” means the Lands more
particularly described in Schedule “A” attached to this Lease or as such Lands
may be altered, expanded or reduced for time to time, and the Improvements,
buildings, equipment and facilities erected thereon or situate from time to
time therein, and located within a portion of the area approximately bounded by
11th Avenue, Lorne Street, Saskatchewan Drive, and Hamilton Street,
in the City of Regina, Province of Saskatchewan. The Development includes those
areas designated or intended by the Landlord to be leased for office, retail,
service and storage purposes, and those areas not so designated or intended,
and all non-leas able areas, parking facilities and the shared common areas and
Facilities of the Development. The Development is known generally as “Cornwall
Centre”.

 

24

 

11.                                 An
“Event of Default” shall occur
whenever: (a) any Rent is in arrears and is not paid within 10 days for the first two failures to pay rent when
due during the Term and thereafter within 5 days after written
demand by the Landlord; (b) the Tenant has breached any of its obligations in
this Lease (other than the payment of Rent) and: (I) falls to remedy such
breach within 15 days (or such shorter period as may be provided in this
Lease); or, (II) If such breach cannot be reasonably remedied within 15 days or
shorter period, the Tenant fails to commence to remedy such breach within such
15 days or shorter period or thereafter fails to proceed diligently to remedy
such breach;.  In either case after
notice in writing from the Landlord; (c) the Tenant or any Indemnifier becomes
bankrupt or insolvent or takes the benefit of any statue for bankrupt or
insolvent debtors or makes any proposal, assignment or arrangement with its
creditors, or any steps are taken or proceedings commenced by any Person for
the dissolution, winding-up or other termination of the Tenant’s existence or
the liquidation of its assets; (d) a trustee, receiver, receiver/manager or
like Person is appointed with respect to the business or assets of the Tenant
or any Indemnifier; (e) the Tenant makes a sale in bulk of all or a substantial
portion of its assets other than in conjunction with a Transfer approved by the
Landlord; (f) this Lease or any of the Tenant’s assets are taken under a writ
of execution; (g) the Tenant purports to make a Transfer other than in
compliance with provisions of the Lease; (h) the Tenant abandons or attempts to
abandon the Premises or disposes of its goods so that there would not after
such disposal be sufficient goods of the Tenant on the Premises subject to
distress to satisfy Rent for at least 3 months, or the Premises become
vacant and unoccupied for a period of 10 consecutive days or mere without the
consent of the Landlord; (i) any Insurance policies covering any part of
the Building or any occupant thereof are actually or threatened to be cancelled
or adversely changed Building or any occupant thereof are actually or
threatened to be cancelled or adversely changed as a result of any use or
occupant thereof are actually or threatened to be cancelled or adversely
changed as a result of any use or occupancy of the Premises; or, (j) if an
Event of Default as defined in this paragraph occurs with respect to any lease
or agreement under which the Tenant occupies other premises in the Building.

 

12.                                 “Fiscal Year” means:  (i) the period of time commencing on the
Commencement Date and ending on the last day of the next ensuing October; and
(ii) thereafter the period of time commencing on the first day of November and
ending on the last day of the next ensuing October, or (iii) the fiscal period
designated by the Landlord from time to time.

 

13.                                 “Indemnifier” means the Person, if any, who
has executed or agreed to execute an Indemnity Agreement substantially in the
form attached to this Lease as Schedule “E”, or any other indemnity agreement
in favour of the Landlord who otherwise guarantees the Tenant’s obligations
under this Lease.

 

14.                                 “Landlord” means the party named as
landlord on the first page of this lease.

 

15.                                 “Lands” means the lands situated in the
City of Regina in the Province in which the Building is constructed, as more
particularly described in Schedule “A”, or as such lands may be expanded or
reduced from time to time.

 

16.                                 “Leasehold Improvements” mean leasehold
improvements in the Premises determined according to common law, and shall
include, without limitation, all fixtures, improvements, Installations,
alterations and additions from time to time made, erected or installed in the
Premises by or on behalf of the Tenant or any previous occupant of the
Premises, including signs and lettering, partitions, doors and hardware however
affixed and whether or not movable, all mechanical, electrical and utility
installations and all carpeting and drapes with the exception only of furniture
and equipment not in the nature of fixtures.

 

17.                                 “Major Tenants” means any tenant of the
Building leasing premises with a total Rentable Area equal to or greater than
10,000 square feet and any other tenant of the Building designated by the
Landlord as a Major Tenant.

 

18.                                 “Mortgage” means any and all mortgages,
charges, debentures, security agreements, trust deeds, hypothecs or like
instruments resulting from financing, refinancing or collateral financing
(including renewals or extensions thereof) made or arranged by the Landlord of
its interest in all or any part of the Building or Lands.

 

19.                                 “Mortgagee” means the holder of, or secured
party under, any Mortgage and includes any trustee for bondholders.

 

20.                                 “Net Rent” means the annual rent payable by
the Tenant under Section 2.02.

 

21.                                 “Net Rentable Area” means, In the case of
premises consisting of part of a floor, the floor area bounded by the inside
surface of the exterior glass, the office olds of the corridor or other
permanent partitions and the centre of partitions that separate the premises
from adjoining leseable areas (if any) without deductions for columns or
projections but after making the same exclusions as are made in computing
Rentable Area.

 

22.                                 “Normal Business Hours” means the hours
from 8:00 a.m. to 6:00 p.m. on Mondays through Fridays unless any such day is a
statutory holiday.

 

23.                                 “Operation Goods” means (without
duplication) any accounts paid or payable whether by the Landlord or by others
on behalf of the Landlord for maintenance, operation, repair, replacement

 

25

 

 

to and administration of the Lands and Building or allocated by the
Landlord to the Lands and Building and for services provided generally to
tenants, calculated as if the Building were 100% occupied by tenants during the
Term, including without limitation:

 

(a)                                  the
cost of insurance which the Landlord is obligated or permitted to obtain under
the Lease;

 

(b)                                 the
cost of security, janitorial, landscaping, window cleaning, garbage removal and
snow removal services;

 

(c)                                  the
cost of heating, ventilating and air-conditioning;

 

(d)                                 the
cost of fuel, steam, water, electricity, telephone and other utilities used in
the maintenance, operation or administration of the Building, including charges
and impacts related to such utilities to the extent such costs, charges and
impacts are not covered from other tenants;

 

(e)                                  salaries,
wages and other amounts paid or payable for all personnel involved in the
repair, maintenance, operation, leasing, on site management, security,
supervision or cleaning of the Building, including fringe benefits,
unemployment and worker’s compensation insurance premiums, pension plan
contributions and other employment costs;

 

(f)                                    auditing,
accounting, legal and other professional and consulting fee and disbursements;

 

(g)                                 the
costs (i) of repairing, operating and maintaining the Building and the
equipment serving the Building and of all replacements and modifications to the
Building or such equipment including these made by the Landlord in order to
comply with laws or regulations affecting the Building; (ii) incurred by the
Landlord in providing and installing energy conservation equipment or systems
and life safety systems; (iii) incurred by the Landlord to make alterations,
replacements or additions to the Building intended to reduce operating costs,
improve the operation of the Building or maintain its operation as a first
class office building; and (iv) incurred to replace machinery or equipment
which by its nature requires periodic replacement; all to the extent that such
costs are fully chargeable in the Fiscal Year in which they are incurred in
accordance with sound accounting principles;

 

(h)                                 the
cost of the rental of all equipment, supplies, tools, materials and signs;

 

(i)                                     all
costs incurred by the Landlord in administering, contesting or appealing Taxes
or related assessments including legal, appraisal and other professional fees,
and administration and overhead costs;

 

(j)                                     Capital
Tax;

 

(k)                                  depreciation
or amortization of the costs referred to in paragraph 23(g) above so determined
by the Landlord in accordance with sound accounting principles, if such costs
have not been charged fully in the Fiscal Year in which they are incurred;

 

(l)                                     interest
calculated at 2 percentage points above the average daily prime bank commercial
landing rate charged during such rental year by any Canadian chartered bank
designated from time to time by the Landlord upon the undepresisted or
unamortized balance of the costs referred to in paragraph 23 (k);

 

(m)                               a
reasonable fee for the administration and management of the Building applied to
the total rents (including additional rents) received from or payable by
tenants of the Building, which fee shall be comparable to fees charged by trust
companies for managing and administering developments in the City of Regina
similar to the Building but, in any case, will not be less than five percent
(5%) of the total rents referred to above;

 

Operating Costs shall exclude or have deducted from them as the case
may be:

 

(aa)                            all
amounts which otherwise would be included in Operating Costs which are
recovered by the Landlord from tenants (other than under sections of their
losses comparable to section 2.03 of this lease);

 

(bb)                          
such of the Operating Costs as are recovered from insurance proceeds, to the
extent such recovery represents reimbursements for costs previously included in
Operating Costs;

 

(cc)                            interest
on debt and capital retirement of debt;

 

(dd)                          ground
rent payable by the Landlord to the owner of the Lands under any ground lease
of the Lands;

 

26

 

(ee)                            Costs
insured in maintaining and operating the Building may be attributed by the
Landlord to the various components of the Building in accordance with
reasonable and current practices and on a basis consistent with the nature of
the particular costs being attributed, and the costs as attributed may be
allocated to the tenants of such comparable accordingly;

 

(ff)        the total sum paid toward the aggregate of the
Operating Costs by Major Tenante.

 

24.                                 “Person” means any person, firm,
partnership or corporation, or any group or combination of persons, firms,
partnerships of corporations.

 

25.                                 “Premises” means the premises leased to the
Tenant described is Section 1.01 and includes Leasehold Improvements in such
premises.

 

26.                                 “Proportionate
Share”
means a fraction which has as its numerator the Rentable Area of the Promises
and as its denominator the Total Rentable Area of the Building excluding the
Rentable Area of any promises leased to a Major Tenant.

 

27.                                 “Province” means the province in which the
Building is located.

 

28.                                 “Rent” means the aggregate of Net Rent and
Additional Rent.

 

29.                                 “Rentable Area” means floor rentable area
calculated in accordance with BOMA Z65.1-1996(a) in the area of premises used or intended to be
used for office purpose and occupying an entire floor, the floor area bounded
by the inside surface of the glass on the exterior walls, Including without
limitation, washrooms, telephone, electrical and janitorial electric and
elevator lobbies; (b) in the case of primary used or intended to be used for
office purpose and consisting of part of a floor, the are a computed by
multiplying the Net Rentable Area of such premises by a fraction, the numerator
of which is the aggregate floor area of the floor on which the Promises are
located (using the measurement method net out in subparagraph (a)) and the
denominator of which is the aggregate Net Rentable Area of all office promises
on such floor; and (c) in the case of promises used or intended to be used for
retail purposes, the Net Rentable Area thereof, in calculating Rentable Area,
stairs, elevator shafts, flues, stroke, pipe shafts, and vertical ducts with
their own enclosing walls, any of which are used in common, which be excluded
but no deductions or exclusions shall be made for columns and projections
necessary for the Building. The Landlord may for the purpose of calculating the
Net Rent and any Proportionate Share change the faster referred to in subparagraph
(d) from time to tome to reflect the actual ratio of the aggregate floor area
of the floor on which the Premises are located using the measurement method set
out in subparagraph (e)) to the aggregate Net Rentable Area of all office
promises on such floor.

 

30.                                 “Rules and Regulations” means the rules and
regulations adopted and promulgated by the Landlord from time to time pursuant
to Section 11.01. The Rules and Regulations existing as at the Commencement
Date are those set out in Schedule “D”.

 

31.                                 “Taxes” means all taxes, levels, charges,
local Improvement rates assessments whatsoever assessed or charged against the Building
Development and the Lands or any part thereof by any lawful taxing authority
and including any amounts assessed or charged in substitution for or in lieu or
any such taxes, but excluding only such taxes as capital gains taxes,
corporate, income, profit or excess profit taxes to the extent such taxes are
not levied in lieu of any of the foregoing against the Building Development or Lands
or the Landlord in respect thereof. Taxes shall in every instance be calculated on the basis of the Total
Rentable Area of the Building being fully assessed and taxed of prevailing
commercial tax rates for occupied space for the period for which taxes are
being calculated.

 

32.                                 “Tenant” means the party named as tenant on
the first page of this lease.

 

33.                                 “Term” means the period set out in Section
1.02.

 

34.                                 “Total Rentable
Area of the Building” means the aggregate of the Rentable Area of each
floor in the Building as if each floor to occupied by one tenant, all as
determined by the Architect. The Total Rentable Area of the Building shall: (a)
exclude the main telephone, mechanical, electrical, and other utility rooms and
enclosures, public lobbies by the Architect from time to take account of any
structural, functional or other change affecting the same.

 

35.                                 “Trade Fixtures” means trade fixtures as
determined at common law, but for greater certainty, shall not include: (a)
heating, ventilating or air conditioning systems, facilities and equipment in
or serving the Premises; (b) floor coverings affixed to the floor of the
Premises; (c) light fixtures; (d) Internal stairways and doors; and (e) any
fixtures, facilities, equipment or installations installed by or at the expense
of the Landlord pursuant to this Lease or otherwise.

 

36.                                 “Transfer” means an assignment of this
Lease in whole or in part, a sublease of all or any part of the Premises, any
transaction whereby the rights of the Tenant under this Lease or to the
Premises are transferred to another, any transaction by which any right of use
or occupancy of all

 

27

 

or any part of the Premises in conferred upon anyone, any mortgage,
charge or encumbrance of this Lease or the Premises or any part thereof or
other arrangement under which either this Lease or the Premises become security
for any indebtedness or other obligations and includes any transaction or
occurrence whatsoever (including but not limited to, expropriation,
receivership proceedings, seizure by legal process and transfer by operation of
law), which has changed or might change the identity of the Persons having
lawful use or occupancy of any part of Premises.

 

 

37.                                 “Transferee” means the Person or Persons to
whom a Transfer is or is to be made.

 

28

 

SCHEDULE
“D” - RULES AND
REGULATIONS

 

1.                                      Life Safety   (a)  The Tenant shall not
do or permit anything to be done in the Premises, or bring or keep anything
therein which will in any way increase the risk of fire or the rate of fire
insurance on the Building or on property kept therein, or obstruct or interfere
with the rights of other tenants or in any way injure or annoy them or the
Landlord, or violate or act at variance with the laws relating to fires or with
regulations of the Fire Department, or with any insurance upon the Lands or
Building or in any part thereof, or violate or act in conflict with any
statutes, rules and ordinances governing health standards or with any other
statute or municipal by-law.  (b)  No flammable oils or other flammable,
dangerous or explosive materials save those approved in writing by the Landlord’s
Insurers shall be kept or permitted to be kept in the Premises.

 

2.                                      Security   (a) 
The Landlord shall permit the Tenant and the Tenant’s employees and all
Persons lawfully requiring communication with them to have the use, during Normal
Business Hours operating hours of the Tenant, in common with others
entitled thereto, of the main entrance and the stairways, corridors, elevator
escalators, or other mechanical means of access leading to the Building
and the Premises,  At times other
than during Normal Business Hours operating hours of the Tenant the
Tenant and the employees of the Tenant shall have access to the Building and to
the Premises only in accordance with the Rules and Regulations and shall be
required to satisfactorily identify themselves and to register in any book
which may at the Landlord’s option be kept by the Landlord for such
purpose.  If identification is not
satisfactory, the Landlord is entitled to prevent the Tenant or the Tenant’s
employees or other Persons lawfully requiring communication with the Tenant
from having access to the Building and to the Premises.  In addition, the Landlord is not required to
open the door to the Premises for the purpose of permitting entry therein to
any Person not having a key to the Premises. 
(b)  The Tenant shall not place
or cause to be placed any additional locks upon any doors of the Premises
without the approval of the Landlord. 
Two keys shall be supplied to the Tenant for each entrance door to the
Premises and all locks shall be Building standard to permit access by the Landlord’s
master key.  If additional keys are
required, they must be obtained from the Landlord at the cost of the Tenant.
Keys or other means of access for entrance doors to the Building will not be
issued without the written authority of the Landlord.

 

3.                                      Housekeeping  (a) 
The Tenant shall permit window cleaners to clean the windows of the
Premises during Normal Business Hours.   (b) 
The Tenant shall not place any debris, garbage trash or refuse or permit
same to be placed or left in or upon any part of the Lands or Building outside
of the Premises, other than in a location provided by the Landlord specifically
for such purposes, and the Tenant shall not allow any undue accumulation of any
debris, garbage, trash or refuse in or outside of the Premises If the Tenant
uses perishable articles or generates wet garbage, the Tenant shall provide
refrigerated storage facilities suitable to the Landlord.  (c) 
The Tenant shall not place or maintain any supplies, or other articles
in any vestibule or entry of the Premises, on the adjacent footwalks or elsewhere
on the exterior of the Premises or elsewhere on the Lands or Building.   (d) 
The sidewalks, entrances passages, escalators, elevators and staircases
shall not be obstructed or used by the Tenant, 
Its agents, servants, contractors, invitees or employees for any purpose
other than ingress to and egress from the Premises and the Building.  The Landlord reserves entire control of all
parts of the Lands and Building employed for the common benefit of the tenants
and without restricting the generality of the foregoing. the sidewalks,
entrances, corridors and passages not within the Premises, washrooms,
lavatories,  air conditioning
closets,  fan  rooms,  janitor’s  closets, electrical closets and other
closets, stairs, escalators, elevator shafts, flues, stacks, pipe shafts and
ducts and shall have the right to place such signs and appliances therein, as
it deems advisable, provided that ingress to and egress from the Premises is
not unduly impaired thereby.  (e)  The Tenant shall not cause or permit:  any waste 
or  damage  to 
the  Premises: any  overloading 
of  the floors  or 
the utility, electrical or mechanical facilities of the Premises: any
nuisance in the Premises: or any use or manner of use causing a hazard or
annoyance to other occupants of the Building or to the Landlord.

 

4.                                      Receiving,
Shipping, Movement of Articles 
(a)  The Tenant shall not receive
or ship articles of any kind except through facilities and designated doors and
at hours designated by the Landlord and under the supervision of the
Landlord.  (b) Hand trucks, carryalls or
similar appliances shall only be used in the Building with the consent of the
Landlord and shall be equipped with rubber tires, slide guards and such other
safeguards as the Landlord requires. 
(c)  The Tenant, its agents,  servants, 
contractors,  invitees  or employees,  shall not bring in or take out, position, construct, install or
move any safe, business machinery or other heavy machinery or equipment or
anything liable to injure or destroy any part of the Building, Including the
Premises, without first obtaining the consent in writing of the Landlord,  In giving such consent, the Landlord shall
have the right in its sole discretion, to prescribe the weight, permitted and
the position thereof, the use and design of planks, skids or platforms, and to
distribute the weight thereof.  All
damage done to the Building, including the Premises,  by moving or using any such heavy equipment or other office
equipment or furniture shall be repaired at the expense of the Tenant.  The moving of all heavy equipment or other
office furniture shall occur only by prior arrangement with the Landlord.  The cost of such moving shall be paid by the
Tenant.  Safes and other heavy office
equipment and machinery shall be moved through the halls and corridors only in
a manner expressly

 

29

 

approved by
the Landlord.  No freight or bulky
matter of any description will be received into any part of the Building,
including the Premises, or carried in the elevators except during hours
approved by the Landlord.

 

5.                                      Preventions
of injury to premises (a)  It shall
be the duty of the Tenant to assist and co-operate with the Landlord in
preventing injury to the Premises. 
(b)  The Tenant shall not deface
or mark any part of the Building, including the Premises, and shall not drive
nails, spikes, hooks or screws into the walls, floors, ceilings or woodwork of
any part of the Building, including the Premises (except for the purpose of
hanging pictures), or bore, drill or cut into the walls, floors, ceilings or
woodwork of any part of the Building including the Premises, in any manner or
for any reason, (c)  If the Tenant
desires telegraphic or telephonic connections, the Landlord, in its sole
discretion, may direct the electricians as to where and how the wires are to be
introduced.  No gas pipe or electric
wire will be permitted which has not been ordered or authorized by the
Landlord.  No outside radio or
television antenna shall be allowed on any part of the Premises without
authorization in writing by the Landlord.

 

6.                                       Windows Except for the proper use of
approved blinds and drapes, the Tenant shall not cover, obstruct or affix any
object or material to any of the skylights and windows that reflect or admit
light into any part of the Building, including without limiting the generality
of the foregoing, the application of solar films.

 

7.                                       Washrooms  (a) 
The Landlord shall permit the Tenant and the employee of the Tenant in
common with other entitled thereto, to use the washrooms on the floor of the
Building on which the Premises are situated or, in lieu thereof, these
washrooms designated by the Landlord, save and except when the general water
supply may be turned off from the public main or at such other times when
repair and maintenance undertaken by the Landlord shall necessitate the non-use
of the facilities.  (b)  The water Glossts and other apparatus shall
not be used for any purposes other than these for which they were intended, and
no sweepings, rubbish, rage ashes or other substances shall be thrown into
them.  Any damage resulting from misuse
shall be borne by the Tenant by whom or by whose agents, servants, invitees, or
employees such damage is caused.

 

8.                                       Use of Premises (a)  No one shall use the Premises for sleeping
apartments or residential purposes, or for the storage of personal effects or
articles other than those required for business purposes.  (b) 
No cooking or heating of any foods or liquids (other than the heating of
water or coffee in coffee makers or kettles and the heating of food in a
microwave oven)  shall be permitted in
the Premises without the written consent of the Landlord.  (c) 
The Tenant shall not install or permit the installation or use of any
machine dispensing goods for sale in the Premises or the Building or permit the
delivery of any food or beverage to the Premises without the written approval
of the Landlord or in contravention of the Rules and Regulations.  (d) 
The Tenant shall not permit or allow any odours, vapours, steam, water,
vibrations, noises or other undesirable effects to emanate from the Premises or
any equipment or installation therein which, in the Landlord’s opinion, are
objectionable or cause any interference with the safety, comfort or convenience
of the Building to the Landlord or the occupants and tenants thereof or their
agents, servants, invitees or employees.

 

9.                                       Canvassing, Soliciting, Peddling
Canvassing, soliciting and peddling in or about the Lands and Building are
prohibited.

 

10.                                 Bicycles No bicycles or other vehicles
shall be brought within any part of the Lands or Building without the consent
of the Landlord.

 

11.                                 Animals and Birds  No animals or birds shall be brought into any part of the Lands
or Building without the consent of the Landlord.

 

12                                    Signs and Advertising  The Tenant shall not paint, affix,
displaying or cause to be painted, affixed or displayed, any sign, picture,
advertisement, notice, lettering or decoration on any part of the outside of
the Building or in the interior of the Premises which is visible from the
outside of the Building.  The Landlord
will prescribe a uniform pattern and location of identification signs for
tenants, to be placed on the outside of the Premises, and the Tenant shall not
paint, affix, display or cause to be painted, affixed or displayed any sign,
picture, advertisement, notice, lettering or decoration on the outside of the
Premises for exterior view without the written consent of the Landlord.  Any such signs shall remain the property of
the Tenant and shall be maintained at the Tenant’s sole cost and expense.  At the expiration of the Term or earlier
termination of this Lease, the Tenant shall remove any such sign, picture,
advertisement, notice lettering or decoration from the Premises at the Tenant’s
expense and shall promptly repair all damage caused by any such removal.  The Tenant’s obligation to observe and
perform this covenant shall survive the expiration of the Term or earlier
termination of the Lease.

 

13.                                 Directory
Board  The Tenant shall be entitled at
the expense to have its name shown upon the directory board of the Building and
the Landlord shall design the style of such identification and shall determine
the number of spaces available on the directory board for each tenant.  The directory board shall be located in on
area designated by the Landlord in the main lobby of the Building.

 

30

 

SCHEDULE
“E” — INDEMNITY
AGREEMENT

 

THIS
AGREEMENT is dated the 4th day of February, 2003.

 

BETWEEN:

 

CORNWALL CENTRE LIMITED

(the “Landlord”)

 

OF THE FIRST PART

 

- and-

 

STARTEK INC.

100 Garfield Street

Denver, Colorado 80206

 

(the “Indemnifier”)

 

OF THE SECOND PART

 

In order to induce the Landlord
to enter into the lease (the “Lease”) dated February
4th,  2003 made between
the Landlord and STARTEK CANADA SERVICES LTD.
as Tenant, and for other good and valuable consideration, the receipt and
sufficiency whereof is hereby acknowledged, the indemnifier hereby covenants
and makes the following indemnity and agreement (the “Indemnity”) with and in
favour of the Landlord:

 

1.                                       The
indemnifier hereby agrees with the Landlord that at all times during the Term
and any extension or renewal of the Term it will; (a) make the due and punctual
payment of all Net Rent, Additional Rent, monies, charges and other amounts of
any kind whatsoever payable under the Lease by the Tenant whether to the
Landlord or otherwise and whether the Lease has been disaffirmed or disclaimed;
(b) effect prompt and complete performance of all and singular the terms,
covenants and conditions contained in the Lease on the part of the Tenant to be
kept, observed and performed; and (c) indemnify and save harmless the Landlord
from any loss, costs or damages arising out of any failure by the Tenant to pay
the aforesaid Net Rent, Additional Rent, monies, charges or other amounts due
under the Lease or resulting from any failure by the Tenant to observe or
perform any of the terms, covenants and conditions contained in the Lease.

 

2.                                       This
Indemnity is absolute, unconditional and irrevocable and the obligations of the
Indemnifier shall not be released, discharged, mitigated, impaired or affected
by; (a) any extension of time, indulgences or modifications which the Landlord
extends to or makes with the Tenant in respect of the performance of any of the
obligations of the Tenant under the Lease; (b) any waiver by or failure of the
Landlord to enforce any of the terms, covenants and conditions contained in the
Lease; (c) any Transfer of the Lease by the Tenant or by any trustee, receiver
or liquidator; (d) any consent which the Landlord gives to any such Transfer;
(e) any amendment to the Lease or waiver by the Tenant of any of its rights
under the Lease; or (f) provided there has
been an Event of Default under the Lease which has not been cured,
the expiration of the Term.

 

3.                                       The
Indemnifier hereby expressly waives notice of the acceptance of this Agreement
and all notice of non-performance, non-payment or non-observance on the part of
the Tenant of the terms, covenants and conditions contained in the Lease.  Without limiting the generality of the
foregoing, any notice which the Landlord desires to give to the Indemnifier
shall be sufficiently given if delivered personally or by commercial delivery
service with receipt acknowledge to the Indemnifier or if mailed by prepaid
registered or certified post addressed to the Indemnifier at the Premises,
at the address set out above and every such notice is deemed to have been given
upon the day it was so delivered personally or
by commercial delivery service, or if mailed, forty eight (48)
hours following the date of mailing. 
The Indemnifier may designate by notice in writing a substitute address
for that set forth above and thereafter notices shall be directed to such
substitute address.  If two or more
Persons are named as Indemnifier, any notice given hereunder or under the Lease
shall be sufficiently given if delivered or mailed in the foregoing manner to
any one of such Persons.

 

4.                                       In
the event of a default under the Lease or under this Agreement, the Indemnifier
waives any right to require the Landlord to; (a) proceed against the Tenant or
pursue any rights or remedies against the Tenant with respect to the Lease; (b)
proceed against or exhaust any security of the Tenant held by the Landlord; or
(c) pursue any other remedy whatsoever in the Landlord’s power.  The Landlord has the right to enforce this
Indemnity regardless of any release or discharge of the Tenant by the Landlord
or by others or by operation of any law.

 

5.                                     Without
limiting the generality of the foregoing, the liability of the Indemnifier
under this Indemnity is not and is not deemed to have been waived, released,
discharged, impaired or affected by reason of the release or discharge of the
Tenant in any receivership, bankruptcy, winding-up or other creditors’
proceedings or the rejection, disaffirmance or disclaimer of the Lease in any

 

31

 

proceeding and
shall continue with respect to the periods prior thereto and thereafter, for
and with respect to the Term as if the Lease had not been disaffirmed or
disclaimed, and in furtherance hereof, the indemnifier agrees, upon any such
disclaimer, that the Indemnifier shall, at the option of the Landlord, become
the Tenant of the Landlord upon the same terms and conditions as are contained
in the Lease, applied mutatis 
mutandis.  The liability of the
Indemnifier shall not be affected by any repossession of the Premises by the
Landlord, provided, however, that the net payments received by the Landlord
after deducting all costs and expenses of repossessing and reletting the
Premises shall be credited from time to time by the Landlord against the
indebtedness of the Indemnifier hereunder and the Indemnifier shall pay any
balance owing to the Landlord from time to time within ten (10) business days
after demand.

 

6.                                       No
action proceedings brought or instituted under this Indemnity and no recovery
in pursuance thereof shall be a bar or defence to any further action or
proceeding which may be brought under this Indemnity by reason of any further
default hereunder or in the performance and observance of the terms, covenants
and conditions contained in the Lease.

 

7.                                       No
modification of this Indemnity shall be effective unless the same is in writing
and is executed by both the Indemnifier and by two representatives of the
Landlord.

 

8.                                       The
Indemnifier shall, without limiting the generality of the foregoing, be bound
by this Indemnity in the same manner as though the Indemnifier were the Tenant
named in the Lease.

 

9.                                       If
two or more individuals, corporations, partnerships or other business
associations (or any combination of two or more thereof) execute this Indemnity
as Indemnifier, the liability of each such individual, corporation, partnership
or other business association hereunder is joint and several, in like manner,
if the Indemnifier named in the Indemnity is a partnership or other business
association, the members of which are, by virtue of statutory or general law, subject
to personal liability, the liability of each such member is joint and several.

 

10.                                 All
of the terms, covenants and conditions of this Indemnity extend to and are
binding upon the Indemnifier, his or its heirs, executors, administrators,
successors and assigns, as the case may be, and enure to the benefit of and may
be enforced by the Landlord, its successors and assigns, as the case may be,
and any Mortgagee of all or any part of the Lands or Building.

 

11.                                 This
Indemnity shall be construed in accordance with the laws of the Province.

 

12.                                 Wherever
in this Indemnity reference made to either the Landlord or the Tenant, the
reference is deemed to apply also to the heirs, executors, successors and
assigns and Transferees of the Tenant named in the Lease, and the successors
and assigns of the Landlord.  Any
assignment by the Landlord of any of its interests in the Lease operates
automatically as an assignment to such assignee of the benefit of this
Indemnity.

 

IN WITNESS WHEREOF the Landlord
and the Indemnifier have executed this Indemnity.

 

	
  )

  	
   

  	
  CORNWALL
  CENTRE LIMITED

  
	
  )

  	
   

  	
  (Landlord)

  
	
  )

  	
   

  	
   

  
	
  )

  	
   

  	
  Per:

  	
  /s/ B.
  Murray

  	 

	
  )

  	
   

  	
  Authorized Signature

  
	
  )

  	
   

  	
   

  
	
  )

  	
   

  	
  Per:

  	
  /s/ R.
  Wretschke

  	 

	
  )

  	
   

  	
  Authorized Signature

  
	
  )

  	
   

  	
   

  
	
  )

  	
   

  	
  I/We have
  authority to bind the corporation.

  
	
  )

  	
   

  	
   

  	
   

  	 

	
  )

  	
   

  	
  STARTEK INC.

  
	
  )

  	
   

  	
  (Indemnifier)

  
	
  )

  	
   

  	
   

  	 

	
  )

  	
   

  	
  Per:

  	
  /s/ David I.
  Rosenthal

  
	
  )

  	
   

  	
  Authorized Signature

  	 

	
  )

  	
   

  	
   

  	
   

  	 

	
  )

  	
   

  	
  Per:

  	
   

  	 

	
  )

  	
   

  	
  Authorized Signature

  	 

	
  )

  	
   

  	
   

  	
   

  	 

	
  )

  	
   

  	
  I/We have
  authority to bind the corporation.

  	 

 

32

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