Document:

Exhibit 10.23

 

[***] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED. 

 

	
  [GRAPHIC]

  	
  VERITAS Solutions Provider
  Agreement

  
	
  Contract Number.                                            

  
	
  (Enterprise Authorized Elite
  Solutions Provider)

  

This VERITAS SOLUTIONS PROVIDER AGREEMENT (“Agreement”), is entered
into as of the date of the last signature below (“Effective Date”), by and
between VERITAS Software Global Corporation,
a Delaware corporation having a place of business at 350 Ellis Street, Mountain
View, CA 94043, (“VERITAS”) and STRATEGIC TECHNOLOGIES, a NORTH CAROLINA corporation,
having a place of business
at 301 GREGSON DRIVE CARY, NC 27511 (“Solutions
Provider”).

1.                         DEFINITIONS.
The following terms as used in this Agreement shall have the meanings assigned
below. The terms may be used in the singular or in the plural, as the context
requires.

(a)                    “Annual Sales Target” means the annual minimum sales target set
forth in Exhibit B (Program Requirements, Benefits and Terms),
comprising total license revenue, net of discounts, paid to VERITAS for
Solutions Provider’s purchases of Qualified Product under this Agreement.

(b)                   “Demonstration Copy” means a copy of Software with which Solutions
Provider may demonstrate Software capabilities to potential End Users.

(c)                    “Direct Sourcing Addendum”  or “DSA” means
an attachment hereto which, if executed between Solutions Provider and VERITAS,
sets forth the terms under which Solutions Provider shall exclusively order and
obtain Products, Professional Services and Support for distribution to End
Users.

(d)                   “End User” means a licensee of Products who acquires such
products for its internal use rather than distribution or sublicensing.

(e)                    “End User License” means the then-current software license terms
delivered by VERITAS with the Products, as modified by VERITAS from time to
time or, if applicable, the software license agreement negotiated and signed
between VERITAS and the End User for the Products.

(f)                      “License Key” means an alphanumeric code that enables an
End User to access and operate all or a portion of the Software.

(g)                   “Limited Sourcing Addendum”
or “LSA” means an attachment
hereto which, if executed between Solutions Provider and VERITAS, indicates the
Master Distributor from whom Solutions Provider shall exclusively order and
obtain Products, Professional Services and Support for distribution to End
Users.

(h)                   “Master Distributor” means an entity VERITAS authorizes under a
master distributor agreement to distribute Product, Professional Services and
Support to VERITAS resellers such as Solutions Provider. The then-current
Master Distributors are as listed in the “Distributors” area on the VERITAS
Solutions Provider partner website, as updated from time to time.

(i)                       “Price List” means VERITAS’ then-current list of End User
prices for available Products, related Support and Professional Services within
the applicable region.

(j)                       “Product” means each of the Software available on
VERITAS’ Price List and specified in Exhibit A (Products) including
media, related User Documentation and Updates pertaining to such Software.

(k)                    “Professional Services” means VERITAS’ installation, implementation,
configuration, professional or consulting services packages (and associated
consultant expense packages), including End User training for Products,
available on VERITAS’ Price List.

(l)                       “Program Requirements” means the requirements for Solution
Provider’s designated partner level within VERITAS’ Partner Program, set forth
in Exhibit B (Program Requirements, Benefits and Terms).

(m)                 “Qualified Product” means a Product so identified on Exhibit A
(Products). Only net license revenue to VERITAS from Solutions Provider’s
purchases of Qualified Product may be counted towards the Annual Sales Target,
as further described in Exhibit B (Program Requirements, Program
Benefits and Terms).

(n)                   “Qualified Revenue” means the license fee
revenue received by VERITAS (net of any discounts) for Solutions Provider’s
purchases of Qualified Product from source(s) authorized by VERITAS under
Solutions Provider’s LSA or DSA, as applicable.

(o)                   “Sales Portal” means an electronic sales
order placement and reporting system designated by VERITAS.

(p)                   “Software” means a VERITAS software product
in object code form as made available by VERITAS on its Price List.

(q)                   “Specified Fulfillment Addendum” or “SFA” means an attachment hereto which, if
executed between Solutions Provider and VERITAS, sets forth the terms under
which Solutions Provider may fulfill delivery of Product and Support to a
specific End User pursuant to such End User’s negotiated End User License and
negotiated pricing with VERITAS.

(r)                      “Support” means standard VERITAS’ technical
support for a Product, as available on VERITAS’ Price List and provided
pursuant to VERITAS’ then-current technical support policy under VERITAS’
support contract with the End User.

(s)                    “Term” means the term of this Agreement as
set forth in Exhibit B (Program Requirements, Benefits and Terms).

(t)                      “Territory” means the geographic region(s)
within which Solutions Provider may distribute Products to End Users, as
indicated in Exhibit B (Program Requirements, Benefits and Terms).

(u)                   “Updates” means a subsequent release of
Software which VERITAS makes generally available to End Users who have current
subscriptions to Support for the Software. Updates may include error
corrections and enhancements, but shall not include any release, option or
future product which VERITAS licenses separately.

(v)                   “User Documentation” means any End User
manuals, release notes, installation notes, and other materials delivered by
VERITAS with the Products (in hard copy or electronic formats).

2.                         APPOINTMENT.
Subject to the terms and conditions of this Agreement, VERITAS hereby
appoints Solutions Provider and Solutions Provider hereby accepts appointment
as a non-exclusive reseller of the Products, Professional Services and first
year Support as further described in this Agreement. Solutions Provider’s level
within VERITAS’ Partner Program is as designated in the Exhibit B
(Program Requirements, Program Benefits and Terms) executed between VERITAS and
Solutions Provider. VERITAS reserves the right to distribute the Products,
Professional Services and Support directly and indirectly through all channels
including through OEMs, other resellers, or integrators.

3.                         TERM. The
Term of this Agreement is as set forth in Exhibit B (Program
Requirements, Benefits and Terms), subject to termination under Section 10
(“Termination”) below.

VERITAS Solutions
Provider Agreement

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4.        SOLUTION PROVIDER RIGHTS AND LICENSES.

(a)                    Purchase and Distribution Rights. Subject
to Solution Provider’s compliance with this Agreement and the Program
Requirements, during the Term VERITAS grants Solutions Provider the
non-exclusive, non-transferable right in the Territory to (i) purchase the
Products, Support and Professional Services as set forth in the LSA or DSA, as
applicable, for resale to End Users, and to (ii) distribute the Products,
Support and Professional Services solely to End Users, under the terms of the
End User License and the Technical Support Terms and Conditions.

(b)                   Demonstration Copies and Updates. VERITAS
may, at its sole discretion, make Demonstration Copies available to Solutions
Provider on an as-requested basis. If VERITAS does provide Demonstration
Copies, then VERITAS grants Solutions Provider a non-exclusive,
non-transferable right for Solutions Provider to use such Demonstration Copies,
during the Term and in the Territory, solely for the purpose of Solutions
Provider’s demonstrating Software capabilities to potential End Users. VERITAS
will provide Updates to Solutions Provider’s authorized Demonstration Copies
(upon Solutions Provider’s request).

(c)                    Restrictions. Without limitation, Solutions
Provider shall not

(1)                     use or
duplicate the Software or User Documentation (including Demonstration Copies)
for any purpose other than as specified in this Agreement, or make the Software
available to unauthorized third parties;

(2)                     cause or
permit any party procuring the Product from Solutions Provider to sublicense,
timeshare, rent or lease the Product;

(3)                     use or permit
Demonstration Copies to be used for its or a third party’s internal production
use;

(4)                     resell
Product and/or Support to End Users who have a negotiated End User License
signed with VERITAS, except pursuant to an executed Specified Fulfillment
Addendum;

(5)                     resell
Product site licenses, service provider licenses (including managed service
provider, application service provider, or other usage models not permitted
under VERITAS’ standard unmodified End User License) except pursuant to a
Specified Fulfillment Addendum or other mutual written agreement executed
between the parties;

(6)                     cause or
permit the reverse engineering, disassembly, decompilation or other attempt (i)
to defeat, avoid, bypass, remove, deactivate or otherwise circumvent any
software protection mechanism in, or (ii) to derive the source code of the
underlying ideas, algorithms, structure or organization from Products, except
to the extent required by law; nor

(7)                     obtain
Products from other than its VERITAS-authorized source(s) under its LSA or DSA,
as applicable, or distribute Products, Support or Professional Services to
individuals or entities other than End Users.

(d)                   Other Offerings. Future Products may be
added to this Agreement upon mutual agreement. VERITAS is not obligated to
offer future Products, Professional Services or Support programs at the same
terms and/or conditions stated in this Agreement. VERITAS has the right to
discontinue the distribution or availability of any Product upon thirty (30)
days prior written notice to Solutions Provider.

5.                         SOLUTION
PROVIDER OBLIGATIONS.

(a)                     Program Requirements. Solution Provider
shall fulfill the applicable Program Requirements, as they may be updated by
VERITAS from time to time, and maintain compliance with such Program
Requirements during the Term.

(b)                    Marketing and Trademarks.

(1)                    Solutions
Provider agrees to use reasonable commercial efforts to market and distribute
the Products, Professional Services and Support. Solutions Provider may use the
VERITAS Trademarks solely to refer to VERITAS’ Products, Professional Services
and Support in connection with Solutions Provider’s distribution, advertising
and promotion for the Products, Professional Services and Support as authorized
under this Agreement.

(2)                    Solutions
Provider agrees not to use “VERITAS,” either the word mark or the VERITAS logo,
or the applicable Product trademarks (the “VERITAS Trademarks”) as any portion
of the Solution Provider’s tradename or trademark for its business, services or
other products. Solutions Provider will comply with any marketing and trademark
guidelines provided by VERITAS from time to time, and in its marketing efforts
Solutions Provider will not engage in any deceptive, misleading, illegal or
unethical practices that may be detrimental to VERITAS or to the Products,
Professional Services or Support.

(3)                    Solutions
Provider agrees to not remove and to include all applicable copyright and
trademark notices of VERITAS as they appear on or in the Products and in all
advertisements and marketing materials provided or approved by VERITAS.

(4)                    Before
publishing any press releases referencing VERITAS Trademarks, Solutions
Provider shall obtain VERITAS’ prior written consent, which shall not be
unreasonably delayed or denied. Otherwise, Solutions Provider agrees to obtain
VERITAS’ approval before distributing any advertising or marketing material for
the Products and/or for Support, if and as requested by VERITAS.

(5)                    Neither
Solutions Provider nor any of its employees, consultants, representatives,
agents or affiliates is authorized to make any warranty or representation,
express or implied, on behalf of VERITAS.

(c)                     Annual Sales Target. Solutions Provider’s
Annual Sales Target will be as set forth in Exhibit B (Program
Requirements, Benefits and Terms). If Solutions Provider fails to meet such
Annual Sales Target, VERITAS may adjust Solutions Provider’s level within the
VERITAS Partner Program, as further discussed in Exhibit B, or terminate
this Agreement in accordance with the provisions of Section 10 (“Termination”).

(d)                    Ordering. Solutions Provider shall execute
either an Limited Sourcing Addendum (LSA) or a Direct Sourcing Addendum (DSA)
with VERITAS. The LSA or DSA, as applicable, shall indicate the authorized source(s)
and terms under which Solutions Provider shall obtain Product, Support and
Professional Services for resale to End Users.

(e)                     End User License. VERITAS shall include its
then-standard license terms and conditions in the Product (and/or associated packaging)
made available to Solutions Provider. Solutions Provider shall include, and
shall not remove, such license terms and conditions with each unit of the
Product distributed.

(f)                       License Keys. A Product may require the
application of a License Key. End Users shall obtain any necessary License Keys
through VERITAS’ then-current License Key management processes, as modified by
VERITAS from time to time. As of the Effective Date, License Keys may be
obtained by completing VERITAS’ vLicense request process, as described in Exhibit
C (vLicense Web Based License Key Fulfillment Application). If an End User
requests, Solutions Provider may use the vLicense request process to obtain the
License Key for the End User, strictly on behalf of and for use by such End
User with Software licensed under its End User License.

VERITAS Solutions
Provider Agreement

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(g)                   Support. Solutions Provider will make its
best efforts to sell first year annual Support for every license of Product
distributed to the End User. Such Support shall be provided to End Users
pursuant to VERITAS’ then-current Technical Support Terms and Conditions,
available from VERITAS Customer Support and updated by VERITAS from time to time.
An End User shall not be entitled to access Support until the End User
completes and submits the support registration/contact form included in the
Technical Support Terms and Conditions to VERITAS and VERITAS accepts such
order.

(h)                   Professional Services. Professional Service
packages are fulfilled by VERITAS Enterprise Consulting Services on an
as-available basis. If Solutions Provider resells VERITAS Professional
Services, Solutions Provider is responsible to ensure the End User is also sold
an associated consultant expense package. Solutions Provider is responsible for
all collections of Professional Services consultant expenses from the End User
as appropriate.

(i)                       Warranty Service and Returns. If a Product
qualifies for warranty service under the warranty provisions of the applicable
End User License, Solutions Provider will return the Product to VERITAS for a
replacement media kit. Solutions Provider must first obtain a return of
materials authorization (RMA) number under VERITAS’ then current return policy
and process. Solutions Provider shall obtain RMAs and arrange for return of
Product to VERITAS either through its Master Distributor or directly with
VERITAS, depending on whether Solutions Provider has executed an LSA or a DSA
under this Agreement, respectively. In order to be eligible for warranty
service, the entire originally shipped contents of the defective Product
(including media) must be returned to VERITAS at VERITAS’ cost, accompanied by
a dated sales receipt for the defective Product, within thirty (30) days of
Solutions Provider’s receipt from the End User. VERITAS will replace returned
defective media kits on a one-for-one basis. Solutions Provider will be
responsible to arrange for delivery of the replacement Product, if any, to the
End User.

(j)                       Reporting.  Exhibit B (Program
Requirements, Benefits and Terms) sets forth whether and under what terms
Solutions Provider shall submit a monthly sales report to VERITAS.

(k)                    Records/Audit.

(1)                     Solutions
Provider agrees to maintain complete and accurate records of its activities
under this Agreement, including without limitation usage and location of
Demonstration Copies, records of the number of copies of each Product and/or
Support contracts distributed to End Users, to whom they were distributed and
payments received therefor, and (if applicable) the use of and Users of User
Ids and Passwords under Solutions Provider’s DSA.

(2)                     Solutions
Provider shall maintain and make available such records for at least three (3)
years following termination of this Agreement. Solutions Provider shall permit
VERITAS or persons designated by VERITAS to audit Solution Provider to confirm
compliance with this Agreement. VERITAS shall give Solutions Provider ten (10)
days prior written notice before commencement of any audit. Any such audit
shall be conducted during Solutions Provider’s regular business hours in such a
manner as not to unreasonably interfere with normal business activities of
Solutions Provider.

(3)                     Solutions
Provider shall pay VERITAS any underpayments reported from such audit
immediately upon receipt of invoice. The costs of conducting such audit will be
paid by VERITAS unless the audit discloses that Solution Provider’s
underpayment of fees due exceeds five percent (5%) of the fees owed for the period
audited, in which case Solutions Provider shall pay for the costs of the audit.

(l)                       Government Requirements. Solutions Provider
shall obtain and maintain all permits, licenses and government registrations
necessary or appropriate to perform its obligations under this Agreement, and
shall complete all filings and obtain any governmental authorities required by
applicable law, including without limitations those necessary to enable
Solutions Provider to make payments to VERITAS. On VERITAS’ request, Solutions
Provider shall provide VERITAS written assurances of such compliance.

6.                         OWNERSHIP OF PROPRIETARY RIGHTS. VERITAS retains all right,
title and interest in the Product, including in all copies, improvements,
enhancements, modifications and derivative works of the Products and all
patent, copyright, trade secret and trademark rights pertaining to the
Products. Solutions Provider will take all reasonable measures to protect
VERITAS’ proprietary rights in the Products. Solutions Provider will distribute
the Products in the packaging and with the markings as provided by VERITAS, and
shall not alter or remove VERITAS’ proprietary notices.

7.                         NON-DISCLOSURE.
By virtue of this Agreement, Solutions Provider may be exposed to certain
information concerning VERITAS’ Products, proposed new software products,
Program Requirements, License Keys, pricing and other information not generally
known to the public (including the terms and conditions of this Agreement), all
of which are the confidential and proprietary information of VERITAS
(“Confidential Information”). Solutions Provider may use Confidential
Information solely as necessary to order and resell Products, Professional
Services and Support under this Agreement. Solutions Provider agrees that
during and after the term of this Agreement it will not disclose any
Confidential Information without VERITAS’ prior written consent to any third
party and will take all necessary precautions, using in any event not less than
a reasonable degree of care, to protect and keep confidential the Confidential
Information.

8.                         WARRANTY
AND DISCLAIMER

(a)                    End User. VERITAS warrants the Products TO
THE END USER ONLY pursuant to the terms and conditions of the End User License.
Solutions Provider shall be solely responsible for any claims, warranties or
representations made by Solutions Provider or Solutions Provider’s employees or
agents which differ from the warranty provided by VERITAS in its End User
License.

(b)                   Solutions Provider. Demonstration Copies
(and the Sales Portal, if applicable) are provided to Solutions Provider on an
as-is basis. VERITAS MAKES NO WARRANTIES TO SOLUTIONS PROVIDER RELATING TO THE
PRODUCTS, PROFESSIONAL SERVICES, SUPPORT OR SALES PORTAL. VERITAS, TO THE
FULLEST EXTENT PERMITTED BY LAW, DISCLAIMS ANY OTHER WARRANTY, CONDITION, TERM,
UNDERTAKING OR REPRESENTATION, EXPRESS OR IMPLIED, RELATING TO THIS AGREEMENT,
INCLUDING WITHOUT LIMITATION ANY WARRANTY OF NON-INFRINGEMENT, FITNESS FOR A
PARTICULAR PURPOSE, MERCHANTABILITY OR ANY WARRANTY ARISING FROM COURSE OF
PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE.

9.                         INDEMNIFICATION.

(a)                    VERITAS
agrees, at its expense, to defend any third party claim made against Solutions
Provider that the Products infringe a patent, copyright or trade secret, and
shall indemnify Solutions Provider against any and all damages and losses
finally awarded against the Solutions Provider based upon such claims (or
agreed upon by VERITAS in settlement), provided that Solutions Provider: (1)
provides VERITAS prompt written notice of the claim to; (2) provides VERITAS
authority, assistance and information to perform its duties under this
Subsection 9(a); (3) grants VERITAS sole control of the defense and all related
settlement negotiations; and (4) has not compromised or prejudiced VERITAS’
position on the claim.

VERITAS Solutions
Provider Agreement

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(b)                   VERITAS
shall have no obligation to defend or indemnify Solution Provider for any claim
that is based on (i) a modification of the Product not provided by VERITAS;
(ii) use of a superseded release of the Products if VERITAS has made available
to Solutions Provider a current release of the Products; or (iii) the use of
the Products in combination with any software, hardware, data or other
materials not provided by VERITAS where such infringement would not have
occurred but for the combination.

(c)                    If the
Products are held or may be held, in VERITAS’ opinion, to violate a third
party’s patent, copyright or trade secret rights, VERITAS may: (1) obtain for
Solutions Provider the right to continue to resell the Products under the terms
of this Agreement; (2) modify the Products to be non-infringing; or (3)
terminate Solution Provider’s rights and VERITAS’ obligations under this Agreement
with respect to such Products.

NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT,
SECTION 9(a)-(c) STATE SOLUTION PROVIDER’S SOLE AND EXCLUSIVE REMEDY AND
VERITAS’ SOLE AND EXCLUSIVE LIABILITY, REGARDING INFRINGEMENT OR
MISAPPROPRIATION OF ANY INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY BY THE
PRODUCTS.

(d)                   Solutions
Provider shall indemnify and hold VERITAS harmless from any claims or damages,
inclusive of VERITAS’ attorneys’ fees, resulting from (i) third party claims
against VERITAS arising from Solutions Provider’s use of any product not
provided by VERITAS but used in combination with the Products, if such claim
would have been avoided by the exclusive use of the Products; and (ii) from
Solution Provider’s (including its representatives) breach of any of Sections 5
(Solutions Provider Obligations), 6 (Ownership of Proprietary Rights), 7
(Nondisclosure), 8 (Warranty and Disclaimer), 12(j)(Foreign Corrupt Practices
Act) and 12(k)(Export controls) of this Agreement.

10.                  TERMINATION

(a)                    Termination.
Either party may terminate this Agreement (i) for its convenience upon thirty
(30) days prior written notice to the other party, or (ii) for the other
party’s breach upon ten (10) days prior written notice, if such breach remains
uncured at the end of the notice period.

(b)                   Effect of
Termination. Upon termination of this Agreement:

(i)                        All rights
granted Solutions Provider hereunder shall immediately terminate, and Solutions
Provider shall immediately cease reselling and distributing the Products, Support
and Professional Services, and cease using the Trademarks and discontinue all
representations that it is a VERITAS Solutions Provider.

(ii)                     Solution
Provider shall promptly destroy any Confidential Information (including any
copies or extracts thereof) and any copies of the Products in its possession or
control, including Demonstration Copies and any undistributed License Keys, and
within ten (10) days of termination shall certify in writing through a
corporate officer that all such items have been destroyed.

(iii)                  Termination
shall not affect payment obligations accruing on or before the effective date
of termination, except that the payment date of all payments due VERITAS shall
automatically be accelerated so that they shall become due and payable on the
effective date of termination, even if longer terms had been provided
previously.

(iv)                 Neither party
shall be entitled to any compensation, damages or payments in respect to
goodwill that has been established or for any damages on account of prospective
profits or anticipated sales, and neither party shall be entitled to
reimbursement in any amount for any training, advertising, market development,
investments or other costs that may have been expended by either party before
the termination of this Agreement, regardless of the reason for, or method of,
termination of this Agreement. Solutions Provider hereby waives its rights
under applicable laws for any such compensation, reimbursement, or damages.

(c)                    Survival.
The following terms shall survive any expiration or earlier termination of this
Agreement:

Sections 1 (Definitions), 5(k) (Records/Audit), 7
(Non-Disclosure), 8 (Warranty and Disclaimer), 9 (Indemnification), 10
(Termination), 11 (Limitation of Liability), 12 (Miscellaneous), and Solution
Provider’s payment obligations accrued under this Agreement prior to the
effective date of termination.

11.                  LIMITATION OF
LIABILITY

IN NO EVENT SHALL VERITAS OR ITS SUPPLIERS BE LIABLE
TO SOLUTIONS PROVIDER OR ANY PERSON FOR ANY INCIDENTAL, INDIRECT, SPECIAL OR
CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION, LOSS OF PROFITS, LOSS OF
USE, LOSS OF DATA, LOSS OF GOOD WILL, COVER AND RELIANCE, INTERRUPTION OF
BUSINESS OR ANY AND ALL OTHER SIMILAR DAMAGES OR LOSS WHETHER IN CONTRACT, TORT
(INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR OTHERWISE IN CONNECTION WITH OR
ARISING OUT OF THIS AGREEMENT, EVEN IF VERITAS, ITS SUPPLIERS OR ITS AGENTS
HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

EXCEPT AS LIMITED BY APPLICABLE LAW, IN NO EVENT SHALL
VERITAS’ TOTAL LIABILITY (WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR
OTHERWISE) IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT EXCEED THE FEES
PAID BY SOLUTIONS PROVIDER TO VERITAS DURING THE SIX MONTHS PRECEDING THE
CIRCUMSTANCES FIRST GIVING RISE TO THE CLAIM OF LIABILITY, AND IF SUCH DAMAGES
RESULT FROM THE SOLUTIONS PROVIDER’S USE OF A PRODUCT, SUPPORT OR PROFESSIONAL
SERVICES PROVIDED UNDER THIS AGREEMENT, SUCH LIABILITY SHALL BE LIMITED TO FEES
PAID FOR THE RELEVANT PRODUCT, SUPPORT OR PROFESSIONAL SERVICES GIVING RISE TO
THE LIABILITY.

THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING THE
FAILURE OF THE ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

12.                  MISCELLANEOUS

(a)                    Notices.
All notices (including address change notices) will be in writing and will be
sent to the address of the recipient set out on the front page of this
Agreement, (or such other address as the recipient may designate by notice
given in accordance with this Section 12(a)). All notices permitted or required
under this Agreement shall be delivered in person or by certified or registered
express mail. Notices may also be sent by confirmed facsimile transmission,
provided such notice is also given by mail as described in the preceding
sentence. Notices shall be effective upon receipt, and receipt shall be deemed
upon personal delivery or upon the fifth (5th) business day after deposit in
the mail. If notice is sent to VERITAS, it shall be sent to Attn: General
Counsel/Legal.

(b)                   Force Majeure.
Neither party shall be in default of any obligation (other than a payment
obligation) by reason of any failure to perform or delay in performing due to
unforeseen circumstances or to causes beyond such party’s reasonable control,
including but not limited to acts of God, war, riot, embargoes, acts of civil or
military authorities, fire, floods, accidents, strikes, or shortages of
transportation, facilities, fuel, energy, labor or materials.

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(c)                     Assignment. Either party may assign this
Agreement in whole to (1) a successor in interest to all or substantially all
of its assets, whether by sale, merger, or otherwise, or (2) to its parent or
to a wholly-owned subsidiary of such party or of its parent, on written notice
to the other. However, upon any assignment by Solutions Provider, VERITAS
reserves the right to terminate this Agreement on ten (10) days prior written
notice. For the purposes of this provision, a change in the persons or entities
who control fifty-percent (50%) or more of the equity, securities or voting
interest of a party (whether in a single transactions or a series of
transactions) shall be considered an assignment.

(d)                    Waiver. Any failure to enforce any
provision of this Agreement shall not constitute a waiver thereof or of any
other provision. A waiver of any breach or default shall not constitute a
waiver of any other right for subsequent or other breach or default. Any waiver
to be effective must be in writing signed by the waiving party.

(e)                     Severability. If any provision or part of
this Agreement is found by a court of competent jurisdiction of other competent
authority to be illegal or unenforceable, it will be enforced to the maximum
extent permissible, and the legality and enforceability of the other provisions
of this Agreement will remain in full force and effect.

(f)                       Injunctive Relief. It is expressly agreed
that a violation of VERITAS’ intellectual property rights, or Solution
Provider’s obligations with respect to Confidential Information, shall cause
irreparable harm to VERITAS for which a remedy at law would be inadequate.
Therefore, in addition to any and all remedies available at law, VERITAS shall
be entitled to an injunction or other equitable remedies in all legal proceedings
in the event of any threatened or actual violation of any or all of the
provisions hereof.

(g)                    Relationship Between the Parties. Each of
the parties is an independent contractor as to the other. Nothing contained
herein shall be construed as creating any agency, partnership, franchiseeship,
or other form of joint enterprise between the parties.

(h)                    Headings. The section headings appearing in
this Agreement are inserted only as a matter of convenience and in no way
define, limit, construe or describe the scope or extent of such section or in
any way affect such section.

(i)                        U.S. Government Restricted Rights. The
Software and User Documentation are deemed to be “commercial computer software”
and “commercial computer software documentation”, respectively, as defined in
DFARS Section 227.7202 and FAR Section 12.212, or their successor provisions,
as applicable. Solutions Provider may resell the Product, Support and
Professional Services to the United States federal government (“U.S.
Government”) if it has executed a GSA Schedule Sales Addendum to its LSA or
DSA, as applicable. Any use, modification, reproduction release, performance,
display or disclosure of the Software and User Documentation by the U.S.
Government shall be solely in accordance with the terms of the End User
License. Solutions Provider agrees that each copy of the Product distributed to
the U.S. Government pursuant to the DFARS will bear the restricted rights
legend specified therein.

(j)                        Foreign Corrupt Practices Act. Solutions
Provider (including its officers, directors, employees and agents) shall not
pay, offer, promise or authorize the payment, directly or indirectly, of any
monies or anything of value to any official or employee of any foreign
government, including any government-owned or controlled entity, or of a public
international organization, or any political party, party official, or
candidate for political office, for the purpose of improperly inducing or
rewarding favorable treatment or advantage in connection with this Agreement or
with Solutions Provider’s relationship with VERITAS.

(k)                     Export Controls. Each party agrees to
comply with all applicable laws, rules, and regulations in connection with its
activities under this Agreement. Solutions Provider will not export or re-export
(directly or indirectly) the Products or other technical data without complying
with U.S. Export Administration Act of 1979, as amended, and the regulations
promulgated thereunder.

(l)                        Governing Law. This Agreement will be
governed by and construed in accordance with the laws of the State of
California, exclusive of any provisions of the United Nations Convention on
Contracts for Sale of Goods, including any amendments thereto, and without
regard to principles of conflicts of law. Any legal action or proceeding
relating to this Agreement shall be instituted in a state or federal court in
Santa Clara County, California. VERITAS and Solutions Provider agree to submit
to the jurisdiction of, and agree that venue is proper in, these courts in any
such legal action or proceeding.

(m)                  Statute of Limitations. Except for VERITAS’
claims for unpaid fees or breach of confidentiality or infringement of any
intellectual property right, any action arising out of or relating to this
Agreement or products or services provided hereunder must be commenced within
two (2) years from the date on which the circumstances giving rise to the claim
were known or reasonably should have been known.

(n)                    Counterparts. This Agreement may be signed
in two counterparts which together shall form a single agreement as if both
parties had executed the same document. Signed copies of this Agreement
(including any of its addenda, attachments, and exhibits, and any purchase
order forms submitted hereunder) provided via facsimile transmission will be
deemed binding the same extent as original documents.

(o)                    Solutions Provider Authority. Solutions
Provider warrants that it has full authority to enter into and perform this
Agreement, and the person signing this Agreement on Solution Provider’s behalf
has been duly authorized and empowered to do so. Solutions Provider
acknowledges that it has read this Agreement, understands it and agrees to be
bound by it.

(p)                    Entire Agreement. It is expressly agreed
that the terms of this Agreement, including any addenda hereto, shall supersede
(1) any VERITAS Partner Program guidelines or frequently-asked-question (FAQ)
information, or (2) any different, inconsistent or preprinted terms in any
invoice, order form, acknowledgement or confirmation issued by Solutions Provider,
regardless of whether such document is signed and returned by VERITAS. As to
Solutions Provider, in the event of any conflict between this Agreement and any
unsigned or “shrinkwrap” license included in any Product package, media or
electronic version provided by VERITAS, the terms of this Agreement shall
govern and any such Product shall be licensed to Solutions Provider under the
terms of this Agreement. This Agreement including its addenda is the complete
and exclusive agreement between the parties with respect to the subject matter
hereof, and supersedes any previous or contemporaneous agreement, proposal,
commitment, or representation, whether oral or written, and any other
communications between the parties in relation to such subject matter. Any
modifications to this Agreement shall be made in writing and must be duly
signed by authorized representatives of each party or they shall be void and of
no effect. This Agreement does not constitute an offer by VERITAS and it shall
not be effective until signed by both parties.

 

VERITAS Solutions
Provider Agreement

version (03.20.02)

5

 

ATTACHMENTS

 

	
  EXHIBIT A:

  	
   

  	
  PRODUCTS

  
	
  EXHIBIT B:

  	
   

  	
  PROGRAM REQUIREMENTS, PROGRAM BENEFITS AND TERMS

  
	
  EXHIBIT C:

  	
   

  	
  vLICENSE (WEB BASED LICENSE KEY FULFILLMENT APPLICATION)

  
	
  EXHIBIT D:

  	
   

  	
  LIMITED SOURCING ADDENDUM (LSA)

  
	
   

  	
  Or

  	
  DIRECT SOURCING ADDENDUM (DSA) (as applicable and as executed between
  Solutions Provider and VERITAS)

  

AGREED AND ACCEPTED as of the Effective Date:

 

	
  VERITAS SOFTWARE GLOBAL CORPORATION

  	
   

  	
  SOLUTIONS PROVIDER: STRATEGIC TECHNOLOGIES

  
	
  By: 

  	
  

  /s/ John F. Brigden

  	
   

  	
  By: 

  	
  

  /s/ Pat Allen

  
	
  Name: 

  	
  JOHN F. BRIGDEN

  	
   

  	
  Name: 

  	
  PAT ALLEN

  
	
  Title: 

  	
  Vice President and General
  Counsel

  	
   

  	
  Title: 

  	
  VICE PRESIDENT & GENL
  MANAGER

  
	
  Date

  Signed:

  	
  6-1-02

  	
   

  	
  Date

  Signed:

  	
  4/4/02

  

[STAMP]

 

VERITAS Solutions
Provider Agreement

version (03.20.02)

6

 

For use with
Enterprise Authorized ELITE Solutions Providers only.

EXHIBIT A

PRODUCTS

This EXHIBIT A, PRODUCTS (“Exhibit A”) is an attachment to the VERITAS
Solutions Provider Agreement between VERITAS and Solutions Provider
(“Agreement”). All capitalized terms not otherwise defined in this Exhibit A
shall have the meanings given in the Agreement, including its other
attachments.

1.                         Product Designations. VERITAS’ designation of standard
Products as either “Enterprise” or “Commercial” products are as found on the
VERITAS Partner Network website, as updated by VERITAS from time to time.

2.                         Authorized Resale.

(a)                    Products. During the Term, during such time
as Solutions Provider satisfies all Program Requirements set forth in Exhibit
B (Program Requirements, Program Benefits, and Terms), VERITAS Solutions
Provider is authorized to resell the following VERITAS Products (and related
Support and Training):

•                            VERITAS
Products designated by VERITAS as “Enterprise”
software product; and

•                            VERITAS
Products designated by VERITAS as “Commercial”
software product

(b)                   Interim Selling. Notwithstanding Section
2(a) above, during the first six (6) months of the initial Term of the
Agreement, if Solutions Provider has not yet completed the education and
certification requirements described in Exhibit B, Section 3(d)(Training
and Certifications) of the Agreement, Solutions Provider may purchase and
resell the Products described in Paragraph 2(a) above (and related Support and
Training) provided Solutions Provider is making good faith efforts and progress
to satisfy the Program Requirements, as determined solely by VERITAS in its
good faith estimation.

3.                         Qualified Products. Only those Enterprise products which
Solutions Provider obtains from the authorized sources indicated on Solutions
Provider’s LSA or DSA, as applicable, are Qualified Products for purposes of
determining the Qualified Revenue counting towards Solutions Provider’s Annual
Sales Target, as further described in Exhibit B, Section 2(b)(Annual
Sales Target).

4.                         Product
Sourcing.

(a)                    Solutions
Provider shall, as indicated by VERITAS, execute either a Limited Sourcing
Addendum (LSA) or Direct Sourcing Addendum (DSA) with VERITAS under the
Agreement.

(b)                   The LSA or DSA,
as applicable, indicates the authorized source(s) from which Solutions Provider
shall exclusively obtain Products, Support and Training for resale to End Users

 

Enterprise
Authorized Elite

 

 

For use with Enterprise Authorized
ELITE Solutions Providers only.

EXHIBIT B

PROGRAM REQUIREMENTS, PROGRAM BENEFITS AND TERMS

This EXHIBIT B, PROGRAM REQUIREMENTS,
PROGRAM BENEFITS AND TERMS supplements the terms of the VERITAS Solutions
Provider Agreement by and between VERITAS and Solutions Provider (“Agreement”).
All capitalized terms not otherwise defined in this Exhibit B shall have
the meanings given in the Agreement, including its other attachments. The
effective date of this Exhibit B is the Effective Date of the Agreement.

1.                         PROGRAM LEVEL:                     ENTERPRISE AUTHORIZED ELITE

2.                         TERM. The initial Term of the Agreement is the period between
the Effective Date, through March 31, 2003.
Thereafter, the Agreement will automatically renew on April 1 of each year, and
the Term shall be extended, for subsequent twelve (12) month renewal periods
unless either party terminates the Agreement in accordance with Section 10
thereof.

3.                         PROGRAM REQUIREMENTS: Solutions Provider is required to
fulfill the following Program Requirements:

(a)                    Authorized Sourcing. Procure Product,
Support and Professional Services only through authorized VERITAS source(s) as
designated on Solutions Provider’s LSA or DSA, as applicable.

(b)                   Sales Territory. The Territory within which
Solution Provider is authorized to market and distribute the Products, Support
and Professional Services to End Users is: 200-mile radius around each of
the following Solutions Provider offices:

 

	
  Street Address

  	
  City, State/Province
  & Postal Code

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

Attach
additional sheets as necessary

(c)       Volume and Reporting.

•                             Annual
Sales Target. Commit to and fulfill an Annual Sales Target of [***].
Satisfaction of the Annual Sales Target is based upon the Qualified Revenue
VERITAS receives during the applicable 12-month Term. 

•                             Revenue
Forecast. Submit to VERITAS an initial business plan, including a revenue
forecast for sales of Qualified Products for the first six (6) months following
the Effective Date of this Agreement. Solution Provider shall provide VERITAS
its forecast within thirty (30) days from the date this Agreement is signed.
Solutions Provider shall update the forecast fifteen (15) days after the
beginning of each calendar quarter. 

 (d)      Training
and Certifications.

•                             Sales
Training. Ensure that seventy-five percent (75%) of Solutions Provider’s
sales staff completes free web-based VERITAS’ Sales Specialist Training and
passes test.

•                             Consultant
Training. Complete necessary training for four (4) individuals to become
VERITAS Certified Professionals; any courses which require payment will be
provided at VERITAS Price List less a twenty-percent (20%) discount.

•                             Hardware
Platform/Storage Knowledge. Solutions Provider must be authorized to resell
at least three (3) of the following Hardware Platform/Storage partner
technologies:

•                            SUN,
HP-UX, IBM AIX, McData, HDS, Oracle, and STK

•                            Authorization
to sell is as granted by the applicable above-named Hardware Platform/Storage
technology partner

•                             Sales
Champions. Have a defined Storage practice measured by maintaining a Sales
Champion (a sales representative or other sales advocate) who has revenue goals
and commission objectives or bonuses based on sale of VERITAS Product.

•                             Education.
Commit to annual education requirement measured by either

•                            Sales
Champion attendance at annual VERITAS Sales Champion conference; and

•                            Sales
Engineer attendance at four (4) VERITAS-delivered Tech Seminars or Training
seminars delivered by one of the Hardware Platform/Storage partners identified
above.

 

Enterprise Authorized
Elite

 

 

For use
with Enterprise Authorized ELITE Solutions Providers only.

(e)                    End User Value-Add.

•                             Pre-Sales
Assistance. Commit to and maintain a business model under which a minimum
of fifteen-percent (15%) of Solutions Provider’s revenue derives from Pre-Sales
Consulting Services fees for End User technology implementations.

•                             Geographic
Presence. Have sales and technical resources dedicated to a Solutions
Provider office location within Two Hundred (200) mile radius of End User location.
(See Paragraph 3(b)(Sales Territory) above)

(f)                      Organizational
Support.

•                             Operations
Reviews. Participate in a quarterly operations review with VERITAS’ Area
and Channel executives at VERITAS’ request. Solutions Provider agrees to
provide executive level support in such quarterly operations review. VERITAS
will provide Solutions Provider with thirty (30) days advance notice of the
date of each quarterly operations review

•                             Marketing
Programs. Commit to and implement four (4) VERITAS marketing programs
annually

•                             Executive
Participation. Participate in the annual Executive Partner Summit
(Solutions Provider participant: Vice President or above)

(g)                   VERITAS Cluster Server (VCS) Authorization -
Additional Program Requirements. To sell VCS, Solutions Provider
must either (1) have completed the below additional Program Requirements, or
(2) sell the VERITAS ProLaunch consulting service for VCS to accompany each
sale. Paragraph 2(b) (Interim Selling) of Exhibit A (Products) does not
apply to this provision.

•                             Two
(2) of Solutions Provider’s Sales Engineers must attend VERITAS’ free 3-day
technical VCS training course delivered through Channel Education Services, and
pass the exam at the end of the course

•                             Upon
completion of the training and exam requirement and delivery of confirming
certificate, Solutions Provider will be authorized to resell VCS

•                             If
Solutions Provider loses one of the Sales Engineers trained on VCS as above, to
maintain authorized VCS reseller status a replacement Sales Engineer must complete
VCS training and pass exam within 90 days

3.                         NON-COMPLIANCE
WITH PROGRAM REQUIREMENTS. If Solutions Provider does not meet and maintain
compliance with these Program Requirements, then VERITAS may at its sols
discretion:

•                             adjust
Solutions Provider’s program level designation within the VERITAS Partner
Program (including corresponding Annual Sales Target, Program Requirements, and
program benefits) by terminating this Exhibit B and having Solutions
Provider execute a replacement Exhibit B for the appropriate program
level; and/or

•                             adjust
Solutions Provider’s applicable discount, if Solutions Provider has a DSA in
effect with VERITAS, or

•                             terminate
the Agreement in accordance with Section 10 of the Agreement.

4.                       PROGRAM
BENEFITS. [***]

(a)                    [***]

•                             [***]

•                             [***]

•                            [***]

•                            [***]

•                            [***]

•                            [***]

 

Enterprise Authorized
Elite

 

 

For use with
Enterprise Authorized ELITE Solutions Providers only.

(b)                   [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

(c)                    [***]

•                             [***]

•                             [***]

(d)                   [***]

•                             [***]

•                             [***]

(e)                    [***]

•                             [***]

•                             [***]

•                             [***]

•                             [***]

(f)                      [***]

AGREED AND ACCEPTED as of April 1, 2002:

 

	
  VERITAS
  SOFTWARE GLOBAL CORPORATION

  	
   

  	
  SOLUTIONS
  PROVIDER

  	
  STRATEGIC
  TECHNOLOGIES

  
	
  By: 

  	
  

  /s/ John F. Brigden

  	
   

  	
  By: 

  	
  

  /s/ Pat Allen

  
	
  Name:

  	
  JOHN F. BRIGDEN

  	
   

  	
  Name:

  	
  PAT ALLEN

  
	
  Title:

  	
  Vice President and General
  Counsel

  	
   

  	
  Title:

  	
  VICE PRESIDENT & GENL
  MANAGER

  
	
  Date

  Signed:

  	
  6-1-02

  	
   

  	
  Date

  Signed: 

  	
  4/4/02

  
						

[STAMP]

 

Enterprise Authorized
Elite

 

 

For use with
Enterprise Authorized ELITE Solutions Providers only.

EXHIBIT
C

VLICENSE

(WEB-BASED LICENSE KEY FULFILLMENT APPLICATION)

Software
License Key Request Form / Registration Form

You can now obtain a license key for your VERITAS product by
accessing vLicensesm, our new online licensing application, at http://vlicense.veritas.com.
You will need a valid email address and the information on this form. See the
new web site for its additional licensing capabilities.

You may choose to request your license key by faxing
this completed form to:

VERITAS Licensing Department at 925-931-2487

License
keys will be issued via e-mail, unless otherwise requested. License keys are
issued in the order they are received during standard business hours (6am to
6pm PST Monday through Friday, excluding holidays). If you have questions
pertaining to this form, please call the License Key Hotline: 925-931-2464 from
6:30 am to 4:30 pm PST.

Leave space for Item notes (dynamic) 

Leave space for Item notes (dynamic)

 

	
  Customer Number:

  	
   

  	
   

  
	
  Platform:

  	
   

  	
  Tier:

  
	
  Product Name:

  	
   

  	
   

  
	
  Product Number:

  	
   

  	
   

  
	
  Order #:

  	
   

  	
   

  
	
  Serial Number
  From:

  	
   

  	
   

  
	
  Serial Number
  To:

  	
   

  	
   

  
	
  VERITAS Delivery
  ID:

  	
   

  	
  Picking Line Detail ID:

  

System HostID: _____________________________ (PLEASE PRINT CLEARLY)

(see output of sysdef -h for Solaris, uname -i for HPUX). Do not
provide host name, it is not recorded.

System Model: ______________________________(PLEASE PRINT CLEARLY)

(see output of “uname -i” for Solaris, “model” for HPUX) For Fujitsu
machines, please include model type listed on hardware, i.e.: GP7000F Model
2000. (For HP machines, please include complete output i.e.:
9000/800/N4000-36.)

Company license is registered to (Customer’s full legal name):                                                                             

Integrator/Consultant Company Name (if applicable):                                                                                           

 

	
  Contact Info:
  Last Name                               

  	
  First Name                              

  	
  Title                              

  
	
  Email address:                                             

  	
  Alternate Email:
                                                            

  
	
  Telephone:                                                   _

  	
  Fax: _                                                                           

  

Software Installed at: Address                                                                                                              

(Please indicate company name of installation location if different (e.g. if
this is C/O or co-location)

 

	
  City                              

  	
  State                        

  	
  ZIP/Postal Code             

  	
  Country                           

  
	
  Date purchased                       

  	
  Purchased from (Check one): VERITAS ( ) or Reseller ( )                              

  

Enterprise
Authorized Elite

 

 

For use with Enterprise Authorized
ELITE Solutions Providers only.

EXHIBIT D

LIMITED
SOURCING ADDENDUM

(LSA)

This EXHIBIT D, LIMITED SOURCING ADDENDUM (“LSA”) supplements
the terms of the VERITAS Solutions Provider Agreement by and between VERITAS
and Solutions Provider (“Agreement”). All capitalized terms not otherwise
defined in this LSA shall have the meanings given in the Agreement, including
its other attachments. The effective date of this LSA (“Effective Date” hereof)
is the date of the last party’s signature below.

1.                          Solution Provider Partner Program Level: ENTERPRISE
AUTHORIZED ELITE

2.                          Term. The initial Term of this LSA shall
commence on the Effective Date and shall continue in effect until March 31,
2003 unless earlier terminated in accordance with the terms of the Agreement.

3.                          Master Distributor(s). During the Initial
Term and any renewal period, Solutions Provider agrees to purchase VERITAS
Products exclusively as follows:

(a)                    Commercial
Products. Solutions Provider shall obtain Commercial products for resale to
End Users only from those Master Distributors identified by VERITAS as
“Distributors” authorized to distribute Commercial products. The list of
authorized Commercial products Distributors is available on VERITAS’ website,
as updated from time to time.

(b)                   Enterprise
Products. The Master Distributors authorized to distribute Enterprise
products are identified on VERITAS’ website, as updated from time to time.
Solutions Provider has reviewed the list of authorized Enterprise products
Master Distributors, and based on its own assessment of its needs hereby
selects GE Access as the sole Master Distributor from which Solutions Provider
shall exclusively obtain Enterprise Products for resale to End Users.

4.                          Alternate Sourcing Channels. Solutions
Provider understands that if it obtains standard VERITAS Products available on
VERITAS’ Price List from sources other than the Master Distributors designated
in Paragraph 3 above, its resale of such Products shall not be counted as a
sale of Qualified Products for purposes of meeting Program Requirements, such
that revenue proceeds from such purchases shall not be credited towards
fulfillment of Solutions Provider’s Annual Sales Target.

5.                          Renewals. Unless otherwise terminated under
the Agreement, this LSA shall automatically renew on April 1st of each year for
subsequent periods of twelve (12) months each, unless Solutions Provider
notifies VERITAS (at any point during the period March 1–March 31st of the
then-current Term) of its intent to choose another authorized Enterprise
products Distributor as its Master Distributor, in which case the parties shall
execute a new LSA reflecting such substitution.

6.                          Termination. This LSA shall terminate or
expire with the Term of the Agreement, unless otherwise terminated in
accordance with Paragraph 7 (Disputes), below.

7.                          Disputes and Request for Replacement Master
Distributor.

(a)                    If during a
Term a dispute arises between Master Distributor and Solutions Provider which
cannot be resolved after the reasonable good faith efforts of Master
Distributor and Solutions Provider (such as, for example, where Solutions
Provider is not receiving the contemplated level of marketing or sales support
from such Master Distributor, or such Master Distributor is not otherwise
fulfilling its commitments to Solutions Provider), then Solutions Provider may
apply to revoke its designation of its chosen Master Distributor.

(b)                   In such cases,
Solutions Provider shall submit its request for Master Distributor re-designation
in writing to VERITAS. Such request shall indicate the basis of Solutions
Provider’s request and its desired replacement Enterprise product Master
Distributor, selected by Solutions Provider from VERITAS’ then-current
authorized list. VERITAS shall make its commercially reasonable efforts to
review and respond to such request promptly.

Acknowledged and agreed as of the Effective Date:

 

	
  VERITAS SOFTWARE GLOBAL CORPORATION

  	
   

  	
  SOLUTIONS PROVIDER: STRATEGIC TECHNOLOGIES

  
	
  By:

  	
  

  /s/ John F. Brigden

  	
   

  	
  By:

  	
  

  /s/ Pat Allen

  
	
  Name:

  	
  JOHN F. BRIGDEN

  	
   

  	
  Name:

  	
  PAT ALLEN

  
	
  Title:

  	
  Vice President and General
  Counsel

  	
   

  	
  Title:

  	
  Vice President & GENL
  MANAGER

  
	
  Date

  Signed:

  	
  6-1-02

  	
   

  	
  Date

  Signed:

  	
  4/4/02

  

 

	
  [STAMP]

  	
  Enterprise Authorized Elite

  

 

FOR
USE WITH U.S. ELITE OR PREMIER VPP SOLUTIONS PROVIDERS ONLY

 

	
  [GRAPHIC]

  	
  Amendment to Solutions Provider
  Agreement

  (Renewals/Direct Sourcing)

  Authorization No. 20050121 — 09E

  

 

This AMENDMENT TO SOLUTIONS PROVIDER AGREEMENT (“Amendment”)
supplements the terms of the VERITAS Solutions Provider Agreement in affect as
of the Effective Date, by and between VERITAS Software Global LLC (or its
predecessor VERITAS Software Global Corporation) and the Solutions Provider
named below (“Agreement”). The effective date of this Amendment (“Effective
Date”) is the date of the last party’s signature below. All capitalized
terms not otherwise defined in this Amendment shall have the meanings given in
the Agreement, including its attachments and/or the terms of then-current
Program Guide incorporated by reference into such Agreement. In the event of
conflict between the express terms of this Amendment and the Agreement, this
Amendment shall prevail.

1 DEFINITIONS.

1.1 “Renewal
Support” means a renewal period of VERITAS Extended or VERITAS
Basic levels of Support, other than the initial period of Support.

1.2 “Quote” means
a VERITAS’ price quotation provided to an End User for Renewal Support of such
End User’s Software licenses.

2. AUTHORIZATION. Subject to
the terms and conditions herein, VERITAS grants Solutions Provider the
non-exclusive, non-transferable, right to distribute the Renewal Support in the
Territory, for Enterprise Products as indicated by VERITAS from time to time.
This authorization shall apply only during the period during which Solutions
Reseller maintains status as either an Elite or Premier level partner in the
VERITAS Partner Program.

3. INDEPENDENCE OF ACTION.

3.1  VERITAS
Quotes. Solutions Provider understands that End Users retain the
absolute right to choose from whom they will source their Renewal Support.
VERITAS typically provides Quotes directly to End Users. If an End User wishes
to obtain Renewal Support from Solutions Provider, and/or to have Solutions
Provider otherwise involved in managing the End User’s Renewal Support subscriptions,
then the End User must notify VERITAS directly and in writing to request
release of its renewal information to Solutions Provider, via VERITAS’
then-current notification process. Only after receipt of such direct End User
request will VERITAS disclose the End User’s installed base renewal information
and Quotes to Solutions Provider. Solutions Provider acknowledges that the End
User may revoke its authorization at any time. For evidence of doubt, any
renewal periods of Support for which a price has already been contractually
determined between VERITAS and an End User, such as Site License renewal years,
are not “Renewal Support” which Solutions Provider can resell under this
Amendment.

3.2 Deadline for
Renewal. If the End User authorizes disclosure of its installed
base renewal Information/Quotes to Solutions Provider, Solutions Provider will
make all commercially-reasonable efforts to sell the End User Renewal Support
before the expiration of the End User’s applicable subscription for initial
term Support. Solutions Provider understands, however, that the primary
objective for both VERITAS and Solutions Provider is to assure that the End
User remains current on Renewal Support. Therefore, VERITAS reserves the right
to sell such Renewal Support directly to the End User in the following cases:

(a) where the End User indicates a preference to
source directly; or the later of either

(b) where Solutions Provider was involved in proposing
the End User’s Support Renewal, before the initial Support term expires, but
Solutions Provider does not sell such Renewal Support within 30 calendar days
following such Support subscription’s expiration, or

(c) where Solutions Provider becomes involved after
the End User’s initial term Support subscription has already lapsed or is
imminently about to lapse, but Solutions Provider does not sell such Renewal
Support within 30 days following expiration of VERITAS’ renewal Quote.

In any event, Solutions Provider understands that its price to acquire
Support Renewals for resale will at VERITAS’ discretion include fees for any
back-support and/or re-instatement fees due, if any, under VERITAS’
then-current technical support policies and (if applicable) contract with such
End User.

4. ORDER AND DELIVERY.

4.1 Orders.
Orders shall be placed to the ordering address indicated by VERITAS from time
to time, using an order form (purchase order) in a form reasonably acceptable
to VERITAS using sufficient detail to enable VERITAS to accept and accurately
fulfill the order. At minimum, each such Solutions Provider order shall include
the End User’s name and delivery street address, shall reference the Quote
number, and shall otherwise comply with VERITAS’ then-current Order Booking
requirements, as published to Solutions Provider from time to time. VERITAS
shall use reasonable efforts to promptly deliver accepted orders, but shall not
be liable to Solutions Provider or to any other person for damages arising from
VERITAS’ failure, delay or error in filling or delivering any orders,

 

	
  Amendment to Solutions Provider Agreement (U.S.
  Direct Renewals)

  	
  VERITAS Confidential

  	
   

  

 

1

 

FOR USE WITH U.S. ELITE OR PREMIER VPP SOLUTIONS PROVIDERS
ONLY

for any reason whatsoever:

4.2 Delivery.
Delivery of all items shall be F.O.B. VERITAS’ manufacturing facility from
which the Software is shipped. All shipments will be made subject to credit
approval.

5. FEES AND PAYMENT.

5.1 Fees.
[***]

5.2 Payment.
Solutions Provider will pay for Renewal Support fees in U.S. dollars within
thirty (30) days from the date of invoice. This payment obligation is
non-cancelable and any sums when paid will be non-refundable. Solutions
Provider is responsible for all taxes or duties for Renewal Support provided
under this Amendment, excluding taxes based on VERITAS’ net income. Fees due
from Solutions Provider shall not be subject to set off for any claims against
VERITAS or any returns. Any amounts payable by Solutions Partner hereunder
which remain unpaid thirty days after date of invoice shall be subject to a
late charge equal to one percent (1 1/2%) per month or the highest rate
permissible by law on the unpaid balance until paid in full. In addition, if
Solutions Provider is overdue on any payments to VERITAS hereunder, VERITAS
reserves the right upon five (5) days prior notice to suspend the fulfillment
of all or part of accepted but undelivered Product orders.

6. CREDIT AND TAXES.

6.1 Credit and
Credit References. VERITAS reserves the right to terminate or
modify the terms of credit when, at its sole discretion, VERITAS believes that
its payments may be at risk. Upon signature of this Amendment and at the
beginning of each renewal year, Solutions Provider will deliver to VERITAS
three (3) of Solutions Provider’s trade references and its primary bank
reference, which VERITAS agrees to keep in confidence as Solutions Provider’s
confidential information under the Agreement.

6.2 Taxes and
Duties. Solutions Provider is responsible, in addition to any
payments due under this Agreement, for all taxes, customs duties, import fees
or other similar charges, and all other mandatory payments to government
entities imposed with respect to the Renewal Support provided under this
Amendment, excluding tax imposed on VERITAS’ net income and withholding taxes
(subject to the condition of providing withholding tax payment receipts, as
further described in this provision). VERITAS shall bill applicable taxes as a
separate item on Solutions Provider’s invoices; taxes are not included in the
purchase price. If a transaction is exempt from tax, Solutions Provider shall
provide VERITAS with a valid exemption certificate or other evidence of such
exemption in a form acceptable to VERITAS. If Solutions Provider is required by
law to withhold any tax from a payment, Solutions Provider shall provide to
VERITAS original or certified copies of all tax payment receipts or other
evidence of payment of taxes by Solutions Provider with respect to such
transactions. If Solutions Provider fails to provide VERITAS with such tax payment
receipts, if applicable, then Solutions Provider shall reimburse for any fines,
penalties, taxes and other governmental agency charges resulting from such
failure.

IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their authorized representatives as of the date of last signature
below (“Effective Date”)

 

	
  Accepted by:

  	
   

  	
  Executed
  by: SOLUTIONS PROVIDER

  
	
   

  	
   

  	
  STRATEGIC
  TECHNOLOGIES INC.

  
	
  VERITAS
  SOFTWARE GLOBAL LLC

  	
   

  	
  [print
  company name]:

  
	
  By: 

  	
  

  /s/ Edward Malysz

  	
   

  	
  By: 

  	
  

  /s/ L. Garnett

  
	
  Name: 

  	
  Edward Malysz

  	
   

  	
  Name: 

  	
  L. Garnett

  
	
  Title: 

  	
  Assistant Secretary

  	
   

  	
  Title: 

  	
  DIRECTOR, BUSINESS
  OPERATIONS

  
	
  Signed:

  	
  1/27/05

  	
   

  	
  Signed:

  	
  JANUARY 20, 2005

  
							

[STAMP]

 

	
  Amendment to Solutions Provider Agreement (U.S.
  Direct Renewals)

  	
  VERITAS Confidential

  	
   

  

 

2Exhibit 10.25

 

ASSIGNMENT AND ASSUMPTION OF LEASE

 

This Assignment and Assumption of Lease (collectively “Assignment”)
is dated for reference purposes November 19, 2007, and is entered into by and
between Boyd Enterprises Utah, L.L.C.
a Utah limited liability company (“Lessor”), whose address is c/o 1946 E.
Edinger, Santa Ana, California 92705, LabOne
Inc. a Missouri corporation (“Assignor”), whose address is 1201
South Collegeville Road CV-3035, Collegeville, PA 19426 and Consonus Acquisition Corp., a Delaware
corporation (“Assignee”), whose address is 245 Park Avenue, 39th Floor, New
York, NY 10167, who agree as follows:

 

1.         Recitals. This
Assignment is made with reference to the following facts and objectives:

 

1.1 Lessor and
Assignor entered into a written lease dated July 22, 2004(“Lease”) in which
Lessor leased to Assignor and Assignor leased from Lessor the premises located
at and commonly known as 2282 South Presidents Drive, Suite A,B,C, West Valley
City, Utah (“Premises”).

 

1.2       Assignor now desires to
assign the Lease to Assignee pursuant to the terms of this Assignment.

 

2.         Effective Date of
Assignment. The assignment in this Assignment shall take effect as of
December 1, 2007 (“Effective Date”).

 

3.         Assignment
and Assumption. Assignor assigns, sells, transfers and conveys to Assignee
all of its right, title and interest in the Lease and the Premises, and
Assignee accepts the assignment, sale, transfer and conveyance and assumes and
agrees to perform from the Effective Date, as a direct obligation to Lessor,
all of the provisions of the Lease arising from and after the Effective Date.
Assignor and Assignee further acknowledges and agrees that Lessor is not in
default of any of the terms of the Lease as of the date of this Assignment and
the Effective Date.

 

4.         Assignor’s Liability.
Assignor shall remain fully, directly and primarily liable to Lessor for the
performance of all of the provisions of the Lease by Assignee through June 30,
2009. The Effective Date through June 30, 2009, is  herein after referred to as “Term”.

 

5.         Security
Deposit, Pre-paid Rent and Free Rent. Assignor and Assignee acknowledge and
agree that prepaid rent or security deposit, if any, held by Lessor on behalf
of Assignor shall be held by Lessor for the account of Assignee and that there
is no abated or free rent due Assignor or Assignee under the terms of the
Lease. Should there be any prepaid rent, security deposit or abated or free
rent due, Assignor hereby relinquishes and releases all right, title and
interest in any prepaid rent or security deposit which Assignor or any
predecessor of assignor may paid to Lessor and further transfers any such
interest to Lessor or Assignee as the case may be.

 

6.         Conditions. Lessor’s
consent to this Assignment is conditioned upon the following:

 

6.1                    Payment of
Sums Due. Rent and all additional rent and sums due must be current as of
the Effective Date. This Assignment is expressly conditioned upon receipt by
Lessor of such sums, and if such sums are not so paid, then this Assignment
shall be null and void, and of no force or effect.

 

6.2                    Assignee
represents and warrants that it has inspected the Premises, including with
respect to Hazardous Materials, as defined below, and accepts the premises As
Is.

 

6.3                    Assignee shall
during the Term hereof, defend, indemnify and hold Assignor harmless from all
claims, demands, liabilities, damages, judgments, orders, decrees, actions,
proceedings, fines, penalties, costs and expenses, including without

 

 

limitation, court costs and attorneys’ fees arising from
or relating to bodily injury, wrongful death or damage to property of third
parties due to the intentional or negligent acts, errors or omissions of
itself, its agents, employees, or representatives in, on or about the Premises.
The provisions hereof do not and shall not relieve Assignor of the
responsibility or liability for the intentional or negligent acts, errors or
omissions of itself, its agents, employees or representatives which cause
injury or death to persons or damage to property in, on or about the Premises.

 

7.         Compliance
with Laws. Assignee
acknowledges and agrees that the operation of Assignee’s business may involve
the use of hazardous or toxic substances or materials (collectively “Hazardous
Materials”) as defined in the Lease. Notwithstanding any covenants contained in
the Lease, Assignee acknowledges and agrees that it will operate its business
in the Premises in compliance with all rules and regulations promulgated by any
governmental or quasi-governmental authority having jurisdiction over the use
of Hazardous Materials and will comply with all rules and regulations
promulgated by Lessor pursuant to Lease with regard to the maintenance or
disposal of Hazardous Materials. Assignee further acknowledges and agrees that
failure to comply with the rules and regulations set forth herein or any other
reasonable rules and regulations promulgated by Lessor pursuant to the Lease
shall constitute a default under the Lease subject only to any notice required
by any applicable statute.

 

8.         Amendments to Lease.
Lessor and Assignee shall have the right to amend the Lease or enter into any
agreement which would modify the obligations of the parties under the Lease
with the consent of Assignor which shall not be unreasonably withheld. Any such
amendment or modification shall be binding upon Assignor during the Term of the
Lease.

 

9.         Miscellaneous.

 

9.1       Notice. All events
of notice for Assignee and the substance there of, are events of notice for
Assignor. The parties acknowledge and agree that from and after the Effective
Date the addresses for notice as required by the Lease or this Assignment shall
be as follows:

 

Lessor

Boyd Enterprises Utah, L.L.C.

1946 E. Edinger

Santa Ana, California 92705

Attn: Willis Boyd

 

Assignor

Lab One, Inc.

c/o Quest Diagnostics Incorporated

1201 South Collegeville Road, CV- 3035

Collegeville, PA 19426

Attn: Employer Solutions

 

With a required copy to:

 

Quest Diagnostics
Incorporated

1201 South Collegeville Road, CV-3041

Collegeville, PA 19426

Attn: Corporate Real Estate Department

 

Assignee

Consonus Acquisition Corp.

445 Park Avenue, 20th Floor

New York, NY 10167

 

 

9.2       Successors. This
Assignment shall be binding on and inure to the benefit of the parties and
their successors, except that such restrictions upon assignment as are
contained in the Lease shall continue to apply.

 

9.3       Integration. This
Assignment contains and embodies the full and complete understanding of the
parties with regard to assignment and assumption of the Lease, including any
and all representations, covenants, conditions and warranties; and no other
agreements, understandings, representations, covenants, conditions or
warranties have been made or relied upon in entering into the Assignment. All
prior discussions and negotiations regarding the assignment and assumption of
the Lease have been and are merged and integrated into, and are superseded by,
the Assignment.

 

9.4       Governing Law. This
Assignment shall be governed by and construed under the internal laws of the
State of Utah; not the law of conflicts.

 

9.5       Paragraph Headings.
The paragraph headings in the Assignment are for convenience of reference only
and shall not limit or otherwise affect the meanings of those paragraphs.

 

9.6       Counterparts. The
Assignment may be executed in counterparts, each of which shall be deemed an
original but which together shall constitute the same instrument.

 

9.7       No
Implied Waivers. The failure of either party at any time to enforce any
provision of the Assignment, or to require performance under any provisions of
the Assignment, shall not affect in any way that party’s right to enforce such
provision or require full performance at any time thereafter. The waiver of any
breach shall not be construed as a waiver of the provision.

 

9.8       Severability.
If any provision of this Assignment or any part of such provision is invalid or
incapable of enforcement, for any reason, all other provisions and the
remainder of any partially invalid provision shall remain in full force and
effect, it being the parties’ intention that their conduct and obligations be
governed, so far as possible, by the Assignment. No provision or part thereof
shall be deemed dependent on any other part or provision, unless so expressed.

 

9.9       Amendment. This Assignment may be
amended at any time only by the written agreement of the parties. All
amendments, changes, revisions and discharges of this Assignment, in whole or
in part, and from time to time, shall be binding upon the parties despite any
lack of legal consideration, so long as the same shall be in writing and
executed by the parties.

 

9.10     No Third Party Benefit.
Except as otherwise set forth herein, this Assignment is intended to benefit
only the parties hereto, and no other person or entity has or shall acquire any
rights hereunder.

 

9.11     Further Acts. Each
party hereby agrees that it shall, upon request of the other, execute and
deliver such further documents (in form and substance reasonably acceptable to
the party to be charged) and to do such other acts and things as are reasonably
necessary and appropriate to effectuate the terms and conditions of this
Assignment.

 

9.12     Voluntary Agreement;
Authority. The parties have read this Assignment, and on advice of counsel,
or following the opportunity to obtain such advice and the decision to proceed
without it, they have freely and voluntarily entered into this Assignment.

 

9.13     Conflicts
with Lease. In the event of any conflict between the terms of the Lease and
the terms of this Assignment, the terms of this Assignment shall control.

 

 

9.14     Attorney’s Fees. In the event of any
dispute arising from the interpretation or enforcement of this Assignment, the
prevailing party in any action, arbitration or proceeding to interpret or
enforce the terms of this Assignment shall receive its attorney’s fees and costs
incurred therein.

 

[signatures on following page]

 

 

IN WITNESS WHEREOF
the parties hereto have executed this Assignment as of the date first written
above.

 

	
   

  	
  Lessor

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Boyd
  Enterprises Utah, L.L.C. a Utah limited liability 

  company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Willis Boyd

  	
   

  
	
   

  	
  Its:

  	
  Managing Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Assignor

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LabOne,
  Inc. a Missouri corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rich Bevan

  	
   

  
	
   

  	
  Its:

  	
  Vice-President of Employer Solutions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Assignee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated: 11/19,
  2007.

  	
   

  	
  Consonus
  Acquisition Corp., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel S. Milburn

  	
   

  
	
   

  	
  Its:

  	
  Chief Operating Officer

  	
   

  
	
   

  	
   

  	
   

  

 

 

LEASE

 

THIS LEASE, dated
July 2004, by and between BOYD ENTERPRISES UTAH, L.L.C., a Utah  limited liability company hereinafter
referred to as “LESSOR” and LABONE, INC. a
Missouri corporation hereinafter referred to as “LESSEE”.

 

Lessor hereby
leases to Lessee, and Lessee leases from Lessor for the purpose of operating a
laboratory performing testing of blood, urine and oral fluid and other
associated business activities, in approximately 21,236 square feet in a one
story building located in Salt Lake County and known as 2282 South  Presidents Drive (THE HAYES BLDG.), Unit
A,B,C, Salt Lake City, Utah (the “Premises”) as shown on the site plan attached
as Exhibit A.

 

1.         TERM AND RENT: The term
of this Lease shall be for SIXTY (60) months (“Term”) commencing upon July 1,
2004 (“Commencement  Date”). The
initial Base Rent shall be $13,918 per month, plus initial CAM Charge of $1,699
per month for a total of $15,617.00 per month. Lessee’s initial prorated share
of Common Area Maintenance Charge (“CAM Charge”) is 12.5% and is based on a
fraction the numerator of which is the square footage of the Premises (21,236
sq.ft.) and the denominator of which is the total square footage of the
business park totaling 169,888 sq.ft. (“Business Park”) of which the Premises
are a part, and as now exists (“Lessee’s Pro Rata Share”). The CAM Charge
consists of all costs of operation, maintenance, repair and replacement of the
Business Park including, but not limited to, real property taxes and/or any
substitute therefor, insurance, utilities, and common area maintenance of the
Business Park including, but not limited to, snow removal, landscape maintenance,
and all exterior maintenance of the Premises and of the Business Park. CAM
Charge shall not include (i) costs and expenses incurred to bring the Premises
or the Business Park into compliance with any federal, state or local laws,
statute or ordinance applicable to the

 

 

Premises or the Business Park in effect immediately
prior to the Commencement Date or due to defects or deficits in the original
construction thereof or Lessor’s improvements thereto, provided such defects
have not been caused by the acts or omissions of Lessee, (ii) the costs of
repairs or other work incurred by reason of fire, windstorm or other casualty
required to be insured against hereunder and to the extent of any insurance
proceeds received by Lessor, except for reasonable deductibles paid under
insurance policies maintained by Lessor; (iii) costs associated with the
operation of the business of Lessor which are not related to the operation of
the Business Park and/or the sale and /or financing of the Premises or the
Business Park as distinguished from the cost of Premises or Business Park’s
operations, maintenance and repair; (iv) costs of disputes between Lessor and
its employees, Lessees or contractors; (v) costs of alterations or improvements
which under generally accepted accounting principles are properly classified as
capital expenditures, except (A) improvements or replacements to structural
elements of the Premises or systems serving the Premises (excluding HVAC)
following expiration of their useful life or (B) those that are directly caused
by Lessee’s use of the Premises or the negligent or intentional acts or
omissions of Lessee or its agents, or (C) to comply with any new governmental
regulation not applicable to the Premises or the Business Park on and after the
Commencement Date; and (vi) costs incurred in remediating any environmental
contamination caused by Lessor or its agents. The CAM Charge set forth above is
merely an estimate and will be adjusted by Lessor as necessary to reflect the
actual costs of operation, maintenance, repair and replacement of the Business
Park. Within ninety (90) days following the end of each calendar year during
the term (or the earlier termination of this Lease Term), Lessor shall endeavor
to provide Lessee with a

 

2

 

statement setting forth
in reasonable detail Lessee’s share of the actual CAM Charge for the preceding
year. Lessor will also provide an estimate of the CAM Charge for the then
current calendar year, and the new monthly amount payable by Lessee for the
then current year’s expenses. Within thirty (30) days following presentation of
Lessor’s statement, Lessor shall refund to Lessee the full amount of any
overpayments of the CAM  Charge
made by Lessee for the preceding year or Lessee shall pay to Lessor the full
amount of underpayments of the CAM Charge for the preceding year and for the
period of time from the beginning of the then current year to the date of the
notice. All sums due from Lessee to Lessor, whether denominated as such herein,
shall be deemed to be additional rent (“Additional Rent”). Rent and CAM Charge
are due and payable in advance, without notice, on the FIRST day of each
month beginning on the Commencement Date. Lessor shall give Lessee written
notice of any rent or CAM Charge that is not received by the first day of the
month such rent is due, and Lessee shall pay such rent within 5 days of it
receipt of such notice. Such notice shall be in lieu of and not in addition to
any notice required by statute. Rent shall be increased pursuant to the Rent
Schedule attached hereto as Addendum A and incorporated by reference here. The
Premises are located in the M Zone of West Valley City, Utah. However, Lessor does not assume
responsibility for Lessee’s receipt of any approvals from any governmental
agency or utility having jurisdiction of the Premises. Lessor shall not be held
liable to Lessee for any delays Lessee creates in obtaining occupancy. Any
delay caused by Lessee shall not affect Commencement Date of this Lease or the
monetary or non-monetary obligations of Lessee under this Lease. Lessor
acknowledges receipt of $15,617 which will be considered the sixth month’s
rent. Months #1 through Month #5 are abated. See addendum A Rent Schedule.

 

3

 

Notwithstanding the
foregoing, should Lessee enter the Premises with Lessor’s prior written consent
prior to the Commencement Date (“Early Possession Date”), the obligation to pay
Rent shall be abated for the Early Possession Period. All other terms of this
Lease, however, including, but not limited to, Lessee’s obligation carry the
insurance and provide the certificates of insurance required by Paragraph 3 of
the Lease, shall be in effect during the Early Possession period. Such Early
Possession shall not change the expiration date of the term.

 

Security Deposit.
Lessee shall deposit with Lessor upon Lessee’s execution hereof a security
deposit (“Security Deposit”) in the amount of $15,617 as security for Lessee’s
faithful performance of Lessee’s obligations under this Lease, If Lessee fails
to pay Base Rent, CAM Charge or Additional Rent or otherwise defaults under
this Lease, Lessor may use the Security Deposit for the payment of any amount
due Lessor or to reimburse or compensate Lessor for any liability, cost,
expense, loss, or damage (including attorneys’ fees) which Lessor may suffer or
incur by reason thereof. Lessee shall on demand pay Lessor the amount so used
or applied so as to restore the Security Deposit to the amount set forth in
this paragraph. Lessor shall not be  required
to keep all or any part of the Security Deposit separate from its general
accounts. Lessor shall, at the expiration or earlier termination of the term
hereof and after Lessee has vacated the Premises, return to Lessee that portion
of the Security Deposit not used or applied by Lessor. No part of the Security
Deposit shall be considered to be held in trust, to bear interest, or to be
prepayment for any monies to be paid by Lessee under this Lease.

 

la.        IMPROVEMENTS: Lessor agrees to demise
Premises in accordance with Exhibit A. Lessee may use any existing equipment,
including but not limited to HVAC units, UPS system, power generator, badge

 

4

 

security system, and raised flooring. Lessee shall be
allowed to remove surplus equipment as needed provided Lessee has submitted
plans to Lessor for Lessor’s reasonable approval. Lessor to provide storage of
any surplus fixtures or equipment removed from the Premises that could be
re-installed on the Premises upon termination of the Lease in Lessor’s sole
opinion. Lessor to deliver keys to Lessee upon full execution of Lease. Lessor
reserves the right to make changes to the common areas including, but not
limited to, driveways, entrances, landscaped areas and parking, provided there
is no material and permanent impairment to Lessee’s use of the Premises for the
purposes stated in this Lease.

 

1b.      RENEWAL OPTIONS: Provided Lessee is not then
in default has not received more than two (2) notices of default during the
term of the Lease, Lessee may extend the term of this Lease for two (2) five
(5) year period(s) (collectively “Extensions”). Lessee must give Lessor written
notice of its decision to extend the term of this Lease and Lessor must receive
such notice at least one hundred eighty (180) days prior to the expiration of
the term or the end of the first Extension, as the case may be. For the first
Extension, the difference between an average of the Federal Consumer Price
Index for all Urban Consumers, All Items (1982-1984=100) for the first three
months of this Lease and the last three months of the Lease shall be the
percentage increase in the Base Rent for the first Extension (“First Extension”)
.. For the second Extension (“Second Extension”), the difference between an
average of the Federal Consumer Price Index for all Urban Consumers, All Items
(1982-1984=100) for the first three months of the First Extension and the last
three months of the First Extension shall be the percentage increase in the
Base Rent for the Second Extension.

 

1c.       ABATEMENT: Months #1,
#2, #3, #4, #5 are abated.

 

5

 

Notwithstanding the foregoing, any rent or other
charges which have been abated hereunder shall become immediately due and
payable by Lessee to Lessor upon any default of Lessee under this Lease that
has not been cured within the applicable cure period.

 

1d.      RIGHT OF FIRST REFUSAL:  Subject to any existing rights, Lessee
shall have the right of first refusal for lease of Suite D. Lessee shall have
five (5) days to accept or reject an offer to lease Suite D.

 

2.         SPRINKLER SYSTEM:
The Premises are equipped with an automatic sprinkler system as approved by the
Pacific Board of Fire Underwriters. Except for Lessor’s Work, any other change
to the Premises by Lessee including, but not limited to re-arrangement of
Lessee’s equipment or personal property, which will change the fire rating to a
higher risk than that now designated and require a change to the fire sprinkler
system, will be the responsibility and sole cost of Lessee. In the event Lessee
does not complete such repairs or corrections within 10 days of written notice
from Lessor, Lessor may make such repairs and/or corrections at Lessee’s sole
cost and expense and Lessee shall reimburse Lessor for such costs, as
additional rent, with the installment of rent next coming due.

 

3.         INSURANCE:
Lessor shall maintain a full replacement value policy of property insurance on
the Premises at the pro-rated expense of Lessee as provided in section 1, and
Lessee shall maintain its own policy of fire insurance on all of its tools,
equipment and materials. Lessee shall maintain general liability insurance with
minimum limits of $1,000,000 per occurrence and $3,000,000 aggregate on the
then most current form used by the liability insurance industry. Lessee shall
name Lessor, any entity managing the Business Park, and Lessor’s lender as
additional insured on the liability insurance carried

 

6

 

hereunder. Such insurance shall provide that it may
not be canceled without at least 30 days’ written notice to Lessor. Lessee
shall deliver to Lessor a certificate of insurance on a standard insurance
industry form evidencing the coverage required in this Section prior to the
earlier of the Commencement Date or the date upon which Lessee enters the
Premises. Lessee shall also maintain personal property insurance against “all
risks” at least as broad as the current ISO Special Form policy for loss to any
of Lessee’s business personal property and any alterations or improvements made
by Lessee to the Premises. Waiver of Subrogation: Lessor and Lessee hereby
waive any rights each may have against the other on account of any loss or
damage occasioned to Lessor or Lessee, as the case may be, their respective
property, or the Building and the Premises arising in any manner covered by the
fire and extended coverage insurance maintained pursuant to this Lease, and the
parties each agree to use their best efforts to have their respective insurance
companies insuring the property of either Lessor or Lessee against any such
loss, waive any right to subrogation that it may have against Lessor or Lessee,
as the case may be.

 

4.         FIRE: If the
Premises shall be destroyed by fire or other causes, or be damaged thereby that
they become untenantable and cannot be rendered tenantable within one hundred
eighty (180) days from the date of the damage, this Lease may be terminated by
Lessor or by Lessee and Rent shall be abated from the date of such destruction
to the date the Lease is so terminated to the extent the Premises are
untenantable. In case damage to the Premises does not require a termination of
the Lease as above provided, Base Rent shall be abated from the date of such
damage to the repair of such damage to the extent the Premises are
untenantable, and Lessor shall repair the damages within a reasonable time if
not terminated to the extent of any proceeds

 

7

 

received by Lessor from
policies of insurance which Lessor is required to carry hereunder. However, if
greater than twenty-five (25%) of the Premises are unusable by Lessee, as
reasonably determined by Lessor, this Lease may be terminated by the Lessee or
Lessor and Lessee shall be reimbursed by Lessor for any prepaid rent or other
prepaid expenses.

 

5.         CARE OF PREMISES:
As used in this Lease, the term Hazardous Material means any substances defined
as or included in the definition of hazardous substances, hazardous wastes,
hazardous materials or toxic substances now or subsequently regulated under any
applicable federal, state or local laws or regulations. Lessee shall not cause
or permit any Hazardous Material to be generated, produced, brought upon, used,
stored, treated or disposed of in or about the Premises by Lessee, its agents,
employees, contractors, sublessees, or invitees without the prior written
consent of Lessor. Lessee may not install or use any storage tank on the Premises
or in the Business Park. The common area of the Business Park including, but
not limited to the area contiguous and adjacent to the Building on the Premises
will be maintained by Lessor, at Lessee’s Pro Rata Share, and kept in an
orderly manner and no waste products will be allowed to accumulate. Lessee
shall remove all of its own waste products at its own expense.

 

Lessor represents that
Lessor has not treated, stored, generated or disposed of any Hazardous Material
upon, under, about or within the Premises and, to the best of Lessor’s actual
and current knowledge, no Hazardous Material is present on or under the
Premises as of the Commencement Date. Lessor shall and does hereby indemnify
Lessee and hold Lessee harmless from any against any and all expenses, losses
and liabilities suffered by Lessee as result of a governmental authority
ordering a cleanup, removal or other redemption by Lessee for any Hazardous
Material

 

8

 

located on, under or about the leased premises during
the Lease Term caused by Lessor and/or any prior owner, lessor or lessee.

 

Lessee shall not commit,
or suffer to be committed, any waste upon the Premises, or any public or
private nuisance; and  shall not
use said premises or suffer the same to be used for any unlawful purpose.
Lessee shall not do or permit to be done any act which will void or suspend any
insurance policy covering the Premises, or any part thereof or any appurtenant
or fixture thereto or property thereon or the building in which the Premises
are located or any part thereof or any appurtenant or fixture thereto or
property thereon. Lessee shall not do or permit to be done anything on the
Premises which would constitute an unreasonable annoyance to adjoining tenants
or which would injure the reputation of the Premises or the Business Park, and
Lessee shall not do or permit to be done anything which will weaken the
structural strength of the Premises.

 

Except as otherwise
provided herein, Lessor makes no covenant or representation as to the
suitability of the Premises for any purpose. Lessee has a (30) thirty day
period, beginning on the Commencement Date, during which to notify Lessor of
any defect in any improvement or system within the Premises which are Lessor’s
obligation under the Lease to repair, and Lessor agrees to repair or restore
such defect within thirty (30) days of receipt of such notice by Lessee, or, if
more than thirty (30) days is required to restore or repair, Lessor shall have
begun such restoration or repair within thirty (30) days and will diligently
pursue such restoration or repair to completion within a reasonable time.

 

Lessee shall not make any
alterations or improvements during the term of this Lease unless the written
consent of the Lessor shall be first had and obtained, such consent not to be
unreasonably withheld or delayed. Prior to the commencement of any alterations
or improvements on the Premises Lessee shall

 

9

 

provide to Lessor copies
of plans, permits, names, addresses and telephone numbers of contractors,
sub-contractors and material suppliers, building schedule and payment draw
schedule. Upon completion of the alterations or any improvements made by Lessee
to the Premises, Lessee shall provide to Lessor an unconditional lien waiver or
other documentation satisfactory to Lessor in its sole discretion evidencing
the full payment of all contractors and materialmen by Lessee. Any approved
improvements or alterations by Lessee, shall be completed in a good and
workmanlike manner, with all permits obtained in lien free condition and must
be completed within a reasonable time. Failure by Lessee to remove any liens
arising from alterations or improvements by Lessee or its contractors or
materials brought on the Premises by Lessee or its contractors or materialmen
within 5 days of Lessor’s receipt of such lien will result in termination of
the Lease at Lessor’s sole option and forfeiture of all improvements, prepaid
rent, security deposits and any other deposits held by Lessor provided that
Lessor immediately notifies Lessee. Notwithstanding anything to the contrary
contained in this Lease, at the end of the term or earlier termination of the
Lease, Lessee shall remove those improvements or alterations installed or
constructed on the Premises by Lessee which Lessor specifies in writing prior
to the end of the term or, in the case of an early termination, which Lessor
specifies in writing within 60 days of the date of the early termination.
Lessee shall thereafter repair any damage caused by such removal and leave the
Premises in broom clean condition. Further, Lessee acknowledges and agrees that
(1) it has no ownership interest in the Premises or any real property of Lessor’s
of which the Premises are a part, (2) Lessee’s interest in the Premises is
merely that of a tenant under this Lease, and (3) all work, improvements or
alterations to the Premises not specifically requested by Lessor

 

10

 

in writing have been performed solely at Lessee’s
request and not at Lessor’s request. In addition, Lessee shall provide a
completion bond (“Completion Bond”) for the total amount of Lessee’s
improvements delivered to Lessor prior to commencement of construction.

 

6.         FIXTURES: Any fixtures,
additions, or appurtenances attached to the Premises during the term of this
Lease by Lessee, other than removable trade fixtures for which Lessee will
repair any damage caused by their removal, are considered to be part of the real
property and may not be removed without prior written consent of the Lessor,
such consent not to be unreasonably withheld or delayed.

 

7.         TAXES: Lessee
shall be responsible for county and city taxes upon the leasehold improvements
by or on behalf of Lessee which, if billed to Lessor, will be included in the
CAM Charge. Property taxes and assessments or any taxes or assessments in lieu
thereof (“Property Taxes”) will be allocated to the herein described property
by the County Tax Assessor or any successor authority and Lessee will be
responsible for Lessee’s Pro Rata Share of the Property Taxes. Lessee will pay
all personal property taxes whether they are assessed to Lessee directly or to
Lessor.

 

8.         REPAIRS
AND MAINTENANCE:  Except
repairs, replacements or maintenance necessitated in any manner by the
negligent or intentional acts or omissions of Lessee or its agents, Lessor
shall maintain the roof and exterior walls, floor, parking area and walkways,
plumbing and electrical systems, and area landscaping in good condition and
repair at its own expense. Lessee shall maintain the balance of the Premises
and appurtenances, including, but not limited to, heating and air conditioning
units, in good condition and repair at its expense. Lessor represents and warrants
that, as of the Commencement Date,

 

11

 

the HVAC system, roof
structure, fire sprinkler system, and structural integrity of the walls and
foundation are in good condition, functioning properly, and to Lessor’s current
and actual knowledge not in need of repair. Lessee agrees that on the last day
of the term or sooner termination of the Lease, it will surrender the Premises
to Lessor in as good condition as they are as of the Commencement Date, damage
by fire, act of God or by the elements of other casualty excepted to the extent
such Lessor is reimbursed by insurance for such loss. If Lessee shall fail to
keep the Premises properly repaired, Lessor may do so (but is not obligated),
and the cost of such repair shall be paid by Lessee with the next installment
of and as rent due hereunder.

 

Lessor shall
cooperate reasonably with Lessee to utilize all manufacturers’ and construction
warranties related to Lessor’s Work. When Lessor has an obligation to repair, Lessor
shall repair such item(s) or area(s) within a commercially reasonable amount of
time after receipt of written notice from Lessee, unless due to the nature of
such repair, more than thirty days are needed to repair in which case Lessor
shall begin such repair within thirty days and diligently pursue such repair to
completion.

 

Notwithstanding
anything to the contrary in the Lease, Lessor shall have no obligation to
perform any work on or about the Property or Premises other than that for which
Lessor is obligated by the Lease and that which is as specifically set forth
herein.

 

Lessee shall, at
Lessee’s sole cost and expense, fully, diligently, and in a timely manner
comply with all “Applicable Requirements,” which term is used in this Lease to
mean all laws, rules, regulations, ordinances, directives, covenants,
easements, and restrictions of record, permits, the requirements of any
applicable fire insurance underwriter or rating bureau, and the

 

12

 

recommendations of Lessor’s
engineers and/or consultants, relating in any manner to the Premises (including
but not limited to matters pertaining to (a) industrial hygiene, (b)
environmental conditions on, in, under, or about the Premises, including soil
and groundwater conditions, and (c) the use, generation, manufacture,
production, installation, maintenance, removal, transportation, storage, spill,
or release of any Hazardous Substance), now in effect or which may hereafter
come into effect. Lessee shall, within 5 days after receipt of Lessor’s written
request, provide Lessor with copies of all documents and information evidencing
Lessee’s compliance with any Applicable Requirements, and shall immediately
upon receipt notify Lessor in writing (with copies of any documents involved)
of any threatened or actual claim, notice, citation, warning, complaint, or
report pertaining to or involving failure by Lessee or the Premises to comply
with any Applicable Requirements.

 

9.         WAIVER OF CLAIMS AND
INDEMNIFICATION BY LESSEE OR LESSOR: Lessee agrees to and hereby does
indemnify and save Lessor and Lessor’s partners, shareholders, members,
directors, officers, employees, agents and contractors harmless from and
against any and all claims arising from the use or occupancy of the Premises by
Lessee or from any acts, omissions, or negligence of Lessee, or its
contractors, licensees, agents, servants, employees, or invitees, and from and
against all costs, expenses, and liabilities incurred in or in connection with
any such claim or proceedings brought thereon, including, but without
limitation, litigation expenses and reasonable attorney’s fees. Lessor agrees
to and hereby does indemnify and save Lessee harmless from and against any and
all claims arising from any default of Lessor under the Lease which has not
been cured after any applicable notice from Lessee and the expiration of any
applicable cure period or from any acts, omissions, or

 

13

 

negligence of Lessor, or
its contractors, licensees, agents, servants, or employees, and from and
against all costs, expenses, and liabilities incurred in or in connection with
any such claim or proceedings brought thereon, including, but without
limitation, litigation expenses and reasonable attorney’s fees.”

 

10.       UTILITIES: Lessee
shall at its sole expense secure all electrical, gas, and telephone service
which it requires in connection with its occupancy of the Premises and
indemnify hold Lessor and its partners, officers, directors, shareholders,
members, employees, contractors and agents harmless from any claims, liability
or loss because of the Lessee’s failure to make timely payments for all such
services. If any services or utilities are jointly metered with other premises
within the Business Park, Lessor shall make a reasonable determination of
Lessee’s proportionate share of the cost of such utilities and services and
Lessee shall pay such share to Lessor within thirty (30) days after receipt of
Lessor’s written statement. Lessee shall transfer all electrical utilities into
its name as of the earlier of (a) the Early Possession Date or (b) the
Commencement Date, but in no event later than five (5) days after the earlier
of the two dates. Failure to do so will result in cancellation of all existing
electrical utilities to the Premises by Lessor and Lessee hereby waives any
claims, losses, liabilities or damages against Lessor arising from the
cancellation of such utilities. Any costs or fees to reinstate service will be
the sole responsibility of the Lessee.

 

Upon Lessee’s
written request, Lessor will provide Lessee a statement of the basis for the
calculation of Lessee’s proportionate share of the cost of jointly metered
services or utilities.

 

14

 

11.       RIGHT OF ENTRY:
Lessee shall permit Lessor and its agents to enter into and upon said premises
at all reasonable times and with twenty four (24) hours advance written notice,
except in cases of emergency, for the purpose of inspecting same or for the
purpose of making any repairs which Lessor desires to make or repairs which
Lessor is obligated or allowed to make under the terms of this Lease.

 

12.       ASSIGNMENT AND
SUBLETTING:  Lessee shall not
assign this Lease or any interest therein or sublet the Premises or any part
thereof without first obtaining the written consent of the Lessor. Such consent
shall not be unreasonably delayed or withheld if proposed assignee or sublessee
is of good financial responsibility, in Lessor’s sole reasonable discretion and
the use to be made by such proposed assignee or sublessee is reasonably
acceptable to Lessor. A consent to one assignment or subletting or use by any
other person shall not be deemed to be a consent to any subsequent assignment,
subletting or use, and shall not release Lessee from any obligations pursuant
to the provisions of this Lease unless agreed to by Lessor. Any such
assignment, subletting or use without Lessor’s consent shall terminate this
Lease at the option of Lessor. Any request by Lessee to Lessor for Lessor’s
consent to an assignment or subletting shall include a written notice, stating
the proposed date of such assignment or subletting, specifically identifying
the proposed assignee or sublessee, including but not limited to such proposed
assignee’s or sublessee’s proposed use, net worth and previous business
experience. Information on the proposed assignee’s or sublessee’s net worth
shall include, but not be limited to, submission of copies to Lessor of two
years’ income statements, balance sheets and statement of changes in financial
position in audited form and certified as accurate by the proposed assignee or
sublessee, Notwithstanding anything to the

 

15

 

contrary contained in the Lease, should Lessee seek to
sublease more than 25% of the Premises to a proposed sublessee, whether in one
transaction or a series of transactions, Lessor may, in its sole discretion,
withhold consent to such sublease. Within sixty (60) days of receipt of such
written notice and all supporting information, Lessor shall, by giving written
notice to Lessee of its intention to do so: (a) withhold consent to such
assignment or subletting; (b) consent to such assignment or subletting; or (c)
terminate the Lease, such termination to be effective thirty (30) days after
such notice from Lessor. If Lessor exercises its termination right hereunder,
Lessor shall have the right to enter into a lease or other occupancy agreement
directly with the proposed assignee or sublessee and Lessee shall have no right
to any of the rents or consideration payable by such proposed assignee or
sublessee under such new lease or occupancy agreement. Lessee may, however,
elect to nullify Lessor’s election to terminate this Lease under clause (c)
above by furnishing Lessor with written notice of Lessee’s election to withdraw
its request for consent to the proposed assignment or sublease within ten (10)
days of Lessee’s receipt of Lessor’s notice of termination, in which event the
Lease shall remain in effect with the existing Lessee. Lessor and Lessee
specifically agree that Lessor’s election to terminate the Lease under clause
(c) above may be made in Lessor’s sole and absolute discretion and that no test
of reasonableness shall be applicable thereto.

 

Notwithstanding
anything to the contrary contained in this Lease, Lessee may assign this Lease
or sublet the Premises upon notice to Lessor but without Lessor’s consent to a
subsidiary, affiliate or parent company; any firm corporation, or entity which
Lessee controls, is controlled by, or is under common control with; any
partnership in which Lessee has a majority interest; or to any entity which
succeeds to all or substantially

 

16

 

all of its assets whether
by merger or sale, provided any such entity has a net worth which is greater
than the greater of Lessee’s net worth as of the Commencement Date or Lessee’s
net worth as of the date of the assignment or sublease. Notwithstanding
anything to the contrary in this Lease or elsewhere, in the event of any
assignment of this Lease by Lessee, Lessor shall be entitled to 100% of the
profit from such assignment which is based upon the value of this Lease. In the
event of any sublease by Lessee, Lessor shall be entitled to all sublease rent
or other compensation to Lessee from a sublessee which is in excess of the rent
and other charges paid by Lessee pursuant to the Lease. This Lease shall not be
assigned or transferred by any process of insolvency or bankruptcy, either
voluntary or involuntary, nor by receivership proceedings nor by operation of
law.

 

13.       LESSEE DEFAULT AND
REMEDIES FOR BREACH: If Lessee shall fail to pay the Base Rent, CAM Charge,
Additional Rent or any other charges due or fails to provide insurance required
of Lessee under this Lease after ten (10) days written notice from Lessor, then
Lessor may terminate this Lease. If Lessee shall become insolvent, or if
proceedings in bankruptcy or insolvency shall be instituted by or against the Lessee,
or if the Lessee shall make an assignment for the benefit of creditors, or if a
receiver or trustee shall be appointed to Lessee’s property, and Lessee cannot
vacate, release, dismiss or otherwise correct such event within sixty (60) days
after such event occurs, then any such event shall be deemed a default on the
part of the Lessee under this Lease and shall give rise to all the rights and
remedies of the Lessor provided by this Lease or by law, including not by way
of limitation, the immediate right to terminate this Lease and all rights of
Lessee in the leased premises, all improvements and fixtures located thereon.

 

17

 

Notwithstanding the above
remedies for breach, prior to exercising its remedies for a non-monetary
breach, Lessor shall give Lessee written notice of such breach and allow Lessee
thirty (30) days upon receipt of written notice of such breach to cure the
breach, or, if due to the nature of the breach more than thirty (30) days is
required to cure the breach, provided Lessee continues to pay the rent and all
other charges due under the Lease on a timely basis, Lessee shall have a
reasonable amount of time to cure the breach.

 

In the event of any breach of this Lease by Lessee,
Lessor, besides all other rights or remedies it may have, shall have the
immediate right to re-entry and may remove all persons and property from the
Premises; such property may be removed and stored in a public warehouse at the
sole cost of the Lessee. Should Lessor elect to re-enter or should it take
possession pursuant to any notice provided for by law, it may either terminate
this Lease, or without termination it may from time to time re-let the Premises
or any part thereof for such term or terms and at such rental or rentals and
upon such other terms and conditions as Lessor in its sole discretion may deem
advisable. Lessor, at its sole cost and expense, shall have the right to make
any alterations or repairs to the Premises. Rentals received by Lessor from such
re-letting shall applied as follows:

 

(a) To the payment
of any indebtedness other than rent due hereunder from Lessee to Lessor.

 

(b) To the payment
of rent due and unpaid hereunder.

 

(c) To the payment
of any cost of such re-letting.

 

The residue, if any,
shall be held by the Lessor and applied to payment of future rent installments
as the same may become due and payable.

 

Should the rentals
received from such re-letting during any month be less than that agreed to be
paid during that month by

 

18

 

Lessee hereunder, Lessee shall pay such deficiency to
the Lessor. Lessee shall also pay to Lessor as soon as ascertained, the cost
and the expense incurred by Lessor in connection with such re-letting.

 

Such re-entry or
re-taking of the Premises by Lessor shall not be construed as an election on
its part to terminate this Lease unless written notice of such election be
given to Lessee or unless the termination hereunder be decreed by a court of
competent jurisdiction. Notwithstanding such re-letting without termination,
Lessor may at any time thereafter elect to terminate this Lease for such
previous breach. Lessor shall use reasonable efforts to mitigate its damages in
the event Lessee defaults under the terms of this Lease.

 

Should Lessor at
any time terminate this Lease for any breach, in addition to any other remedy
it may have, it may recover from Lessee all damages it may incur by reason of
such breach including, but not limited to, the cost of recovering the Premises
and including the worth at the time of such termination of the excess, if any,
of the amount of the rent reserved in the Lease for the remainder of the term
and recovery of any abated rent or other monetary inducement granted by Lessor
to Lessee.

 

14.       QUIET ENJOYMENT:
Lessor covenants that it has full authority to execute this Lease and upon the
faithful performance of Lessee of all of the terms, conditions and covenants to
be performed by him hereunder including, but not limited to, the payment of rent,
Lessee shall be entitled to quiet enjoyment of the Premises.

 

15.       ATTORNEY’S FEES:
Should any legal action be instituted to interpret or enforce any of the
provisions this Lease or to compel its performance, the prevailing party shall
be entitled to recover from the other party reasonable attorney’s fees to be
fixed by the court. Should Lessee request any consent, waiver,

 

19

 

estoppel or other
approval of Lessor for any reason, Lessee shall reimburse Lessor for all costs
of review of such requests including, but not limited to, Lessor’s attorney’s
fees.

 

16.       NOTICES: All notices
to be given under this Lease shall be in writing and delivered personally or by
depositing the same in the US Mail, postage prepaid, via Registered, Certified
mail, or any nationally recognized overnight service addressed to:

 

Lessee:
LabOne, Inc., attn: Legal Department, 10101 Renner Blvd., Lenexa, KS, 66219

 

Lessor: c/o Boyd
Enterprises, attn: Willis B. Boyd, 1946 E. Edinger, Santa Ana, CA 92705

 

17.       WAIVER OF BREACH:
The waiver by Lessor or Lessee of any breach of any term covenant or conditions
of the Lease by the other shall not be deemed a waiver of such term, covenant
or condition or of any subsequent breach of the same or of any other term,
covenant or condition of this Lease.

 

18.       HOLDING OVER: Any
holding over after the expiration of said term with the consent of the Lessor
shall be construed to be a tenancy from month to month at one and one half
times the Base Rent, plus CAM Charge and Additional Rent as that paid according
to the terms of this Lease, and shall otherwise be on terms and conditions
herein specified so far as applicable.

 

19.       SALE BY LESSOR:
Lessor shall have the absolute right to convey, sell, mortgage, assign or
otherwise dispose of the Premises and/or the property of which the Premises are
a part and Lessor’s interest under this Lease, at any time, and thereafter
shall not be subject to any liability resulting from any act or omission or
event occurring after such event, so long as the purchaser or assignee in
connection with such conveyance or assignment assume and agree in writing to
carry out thereafter any and all of the covenants of the Lessor under this
Lease.

 

20

 

Notwithstanding anything
to the contrary contained in this Section, this Lease and all rights of Lessee
hereunder are and shall be subject and subordinate to the lien and security
title of any mortgage unless otherwise stated in writing by Lessor or the
holder of any Mortgage, lien or security interest.

 

20.       SUCCESSORS BOUND:
The terms, covenants and conditions herein contained shall be subject to the
provisions as to assignments apply to and bind the heirs, successors,
executors, administrators, and assigns of both parties.

 

21.       SIGNS:
Notwithstanding anything herein to the contrary, Lessor, agrees to allow Lessee
to construct and maintain signs with the design and color of Lessee’s trade
name not to exceed the designated black glass area above the office area with
Lessor’s reasonable approval as to size, design and location, and further
subject to any approval required from any governmental authority having
jurisdiction thereof.

 

22.       INTEGRATION: This
Lease embodies the full agreement of the parties and supersedes any and all
prior understandings or commitments concerning the subject matter of this
Lease. Any modification or amendment must be in writing and signed by both
parties.

 

23.       LESSOR’S CONSENT: At
any time Lessor’s consent is required under this Lease, Lessor shall not
unreasonably withhold or delay its consent.

 

24.       BROKERS: The parties
hereto warrant and represent that they have not dealt with any entity or person
who might claim a commission or other payment by virtue of its representation
in this Lease transaction, other than Capstone Property Management in
representation of Lessee and NAI/Utah in representation of Lessor. Lessee shall
indemnify, defend (by counsel satisfactory to Lessor) and hold harmless Lessor,
it’s partners, members, officers, directors, shareholders, employees and agents
from any

 

21

 

claim for commission or
other payment arising from a party’s claim that it represented Lessee in this
Lease transaction.

 

26.       NON-DISTURBANCE: Lessor will use
commercially reasonable efforts to provide Lessee with a written
non-disturbance agreement to Lessee from the current mortgage holder in form
acceptable to such mortgage holder. Unless otherwise set forth in writing by
Lessor or the holder of any mortgage, lien or security interest, this Lease and
all rights of Lessee hereunder are and shall be subject and subordinate to the
lien and security interest of any mortgage created after the Lease commencement
date. The mortgagee shall not disturb Lessee in its occupancy and rights as
long as Lessee shall not be in default of this Lease. Lessee shall within 10
days after written notice from Lessor execute, acknowledge, and deliver to
Lessor, to the extent it can truthfully do so, an estoppel certificate in a
form reasonably acceptable to Lessor, or any of Lessor’s lenders or any
prospective purchasers of the Premises or the Business Park as the case may be,
plus such additional information, confirmation, and statements as be reasonably
requested by the Lessor. Should Lessee fail to deliver an executed and
acknowledged estoppel certificate to Lessor as prescribed herein, Lessee hereby
authorizes Lessor to act as Lessee’s attorney-in-fact in executing such
estoppel certificate or, at Lessor’s option, Lessee shall pay a fee of $100.00
per day (“Estoppel Delay Fee”) for each day after the 10 days’ written notice
in which Lessee fails to comply with this requirement.

 

22

 

ADDENDUM A

RENT SCHEDULE

 

LabOne, Inc.

2282 South Presidents
Drive, Unit A,B,C

West Valley City, Utah

 

	
  Month

  	
   

  	
  Base

  	
   

  	
  Cam

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1-Jul-04

  	
   

  	
  Abated

  	
   

  	
  Abated

  	
   

  	
  Abated

  	
   

  	
  1

  	
   

  	
   

  	
   

  
	
  1-Aug-04

  	
   

  	
  Abated

  	
   

  	
  Abated

  	
   

  	
  Abated

  	
   

  	
  2

  	
   

  	
   

  	
   

  
	
  1-Sep-04

  	
   

  	
  Abated

  	
   

  	
  Abated

  	
   

  	
  Abated

  	
   

  	
  3

  	
   

  	
   

  	
   

  
	
  1-Oct-04

  	
   

  	
  Abated

  	
   

  	
  Abated

  	
   

  	
  Abated

  	
   

  	
  4

  	
   

  	
   

  	
   

  
	
  1-Nov-04

  	
   

  	
  Abated

  	
   

  	
  Abated

  	
   

  	
  Abated

  	
   

  	
  5

  	
   

  	
   

  	
   

  
	
  1-Dec-04

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  6

  	
   

  	
   

  	
   

  
	
  1-Jan-05

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  7

  	
   

  	
   

  	
   

  
	
  1-Feb-05

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  8

  	
   

  	
   

  	
   

  
	
  1-Mar-05

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  9

  	
   

  	
   

  	
   

  
	
  1-Apr-05

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  10

  	
   

  	
   

  	
   

  
	
  1-May-05

  	
   

  	
  $

  	
  13,818

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  11

  	
   

  	
   

  	
   

  
	
  1-Jun-05

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  12

  	
   

  	
   

  	
   

  
	
  1-Jul-05

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  13

  	
   

  	
   

  	
   

  
	
  1-Aug-05

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  14

  	
   

  	
   

  	
   

  
	
  1-Sep-05

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  15

  	
   

  	
   

  	
   

  
	
  1-Oct-05

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  18

  	
   

  	
   

  	
   

  
	
  1-Nov-05

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  17

  	
   

  	
   

  	
   

  
	
  1-Dec-05

  	
   

  	
  $

  	
  13,818

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  18

  	
   

  	
   

  	
   

  
	
  1-Jan-06

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  19

  	
   

  	
   

  	
   

  
	
  1-Feb-06

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  20

  	
   

  	
   

  	
   

  
	
  1-Mar-06

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  21

  	
   

  	
   

  	
   

  
	
  1-Apr-06

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  22

  	
   

  	
   

  	
   

  
	
  1-May-06

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  23

  	
   

  	
   

  	
   

  
	
  1-June-06

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  24

  	
   

  	
   

  	
   

  
	
  1-Jul-06

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  25

  	
   

  	
   

  	
   

  
	
  1-Aug-06

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  26

  	
   

  	
   

  	
   

  
	
  1-Sep-06

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  27

  	
   

  	
  CAM is subject to
  annual adjustment after the first year.

  	
   

  
	
  1-Oct-06

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  28

  	
   

  	
   

  	
   

  
	
  1-Nov-06

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  29

  	
   

  	
   

  	
   

  
	
  1-Dec-06

  	
   

  	
  $

  	
  13,318

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  30

  	
   

  	
   

  	
   

  
	
  1-Jan-07

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  31

  	
   

  	
   

  	
   

  
	
  1-Feb-07

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  32

  	
   

  	
   

  	
   

  
	
  1-Mar-07

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  33

  	
   

  	
   

  	
   

  
	
  1-Apr-07

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  34

  	
   

  	
   

  	
   

  
	
  1-May-07

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  35

  	
   

  	
   

  	
   

  
	
  1-Jun-07

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  36

  	
   

  	
   

  	
   

  
	
  1-Jul-07

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  37

  	
   

  	
   

  	
   

  
	
  1-Aug-07

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  38

  	
   

  	
   

  	
   

  
	
  1-Sep-07

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  39

  	
   

  	
   

  	
   

  
	
  1-Oct-07

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  40

  	
   

  	
   

  	
   

  
	
  1-Nov-07

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  41

  	
   

  	
   

  	
   

  
	
  1-Dec-07

  	
   

  	
  $

  	
  13.918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  42

  	
   

  	
   

  	
   

  
	
  1-Jan-08

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  43

  	
   

  	
   

  	
   

  
	
  1-Feb-08

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  44

  	
   

  	
   

  	
   

  
	
  1-Mar-08

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  45

  	
   

  	
   

  	
   

  
	
  1-Apr-08

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  46

  	
   

  	
   

  	
   

  
	
  1-May-08

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  47

  	
   

  	
   

  	
   

  
	
  1-Jun-08

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  48

  	
   

  	
   

  	
   

  
	
  1-Jul-08

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  49

  	
   

  	
   

  	
   

  

 

 

ADDENDUM
A

RENT SCHEDULE

 

	
  1-Aug-08

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  50

  	
   

  	
   

  	
   

  
	
  1-Sep-08

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  51

  	
   

  	
   

  	
   

  
	
  1-Oct 08

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  52

  	
   

  	
   

  	
   

  
	
  1-Nov-08

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  53

  	
   

  	
   

  	
   

  
	
  1-Dec-08

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  54

  	
   

  	
   

  	
   

  
	
  1-Jan-09

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  55

  	
   

  	
   

  	
   

  
	
  1-Feb-09

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  56

  	
   

  	
   

  	
   

  
	
  1-Mar-09

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  57

  	
   

  	
   

  	
   

  
	
  1-Apr-09

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  58

  	
   

  	
   

  	
   

  
	
  1-May-09

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  59

  	
   

  	
   

  	
   

  
	
  1-Jun-09

  	
   

  	
  $

  	
  13,918

  	
   

  	
  $

  	
  1,699

  	
   

  	
  $

  	
  15,617

  	
   

  	
  60

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]