Document:

Exhibit
10.17

 

DENVER
PLACE

 

ESCHELON
TELECOM OF COLORADO, INC.

 

 

OFFICE
LEASE

 

 

DENVER PLACE

OFFICE LEASE

INDEX

 

	
  General Lease Provisions—

  	
   

  
	
   

  	
   

  
	
  1.

  	
  THE LEASED PREMISES

  	
   

  
	
  2.

  	
  DEFINITIONS

  	
   

  
	
  3.

  	
  TERM
  OF LEASE

  	
   

  
	
  4.

  	
  BASE
  RENT

  	
   

  
	
  5.

  	
  COMMENCEMENT AND CONDUCT OF BUSINESS

  	
   

  
	
  6.

  	
  QUIET ENJOYMENT

  	
   

  
	
  7.

  	
  SERVICES

  	
   

  
	
   

  	
  7.01

  	
  Standard Services

  	
   

  
	
   

  	
  7.02

  	
  Additional Services

  	
   

  
	
   

  	
  7.03

  	
  Interruption of Service

  	
   

  
	
   

  	
  7.04

  	
  Telephone Service Paid by Tenant

  	
   

  
	
  8.

  	
  BUSINESS
  TAXES, ETC

  	
   

  
	
  9.

  	
  METERS

  	
   

  
	
  10.

  	
  USE OF ELECTRICITY

  	
   

  
	
  11.

  	
  TENANT
  REPAIR

  	
   

  
	
  12.

  	
  ASSIGNMENT,
  SUBLETTING, PARTING WITH POSSESSION

  	
   

  
	
  13.

  	
  RULES AND REGULATIONS

  	
   

  
	
  14.

  	
  USE OF LEASED PREMISES

  	
   

  
	
  15.

  	
  TENANT’S INSURANCE

  	
   

  
	
  16.

  	
  CANCELLATION OF INSURANCE

  	
   

  
	
  17.

  	
  OBSERVANCE OF LAW

  	
   

  
	
  18.

  	
  WASTE AND NUISANCE

  	
   

  
	
  19.

  	
  ENTRY BY LANDLORD

  	
   

  
	
  20.

  	
  INDEMNIFICATION OF LANDLORD

  	
   

  
	
  21.

  	
  EXHIBITING PREMISES

  	
   

  
	
  22.

  	
  ALTERATIONS

  	
   

  
	
  23.

  	
  GLASS

  	
   

  
	
  24.

  	
  SIGNS AND ADVERTISING

  	
   

  
	
  25.

  	
  NAME OF BUILDING

  	
   

  
	
  26.

  	
  SUBORDINATION AND ATTORNMENT

  	
   

  
	
  27.

  	
  ACCEPTANCE OF PREMISES

  	
   

  
	
  28.

  	
  ESTOPPEL CERTIFICATES

  	
   

  
	
  29.

  	
  FIXTURES

  	
   

  
	
  30.

  	
  LANDLORD’S INSURANCE

  	
   

  
	
  31.

  	
  FIRES,
  ETC

  	
   

  
	
  32.

  	
  CONDEMNATION

  	
   

  
	
  33.

  	
  LOSS
  AND DAMAGE

  	
   

  
	
  34.

  	
  DELAYS

  	
   

  
	
  35.

  	
  DEFAULT

  	
   

  
	
  36.

  	
  REMEDIES OF LANDLORD

  	
   

  

 

i

 

	
  37.

  	
  HOLDING
  OVER

  	
   

  
	
  38.

  	
  DIRECTORY BOARD

  	
   

  
	
  39.

  	
  TRANSFER BY LANDLORD

  	
   

  
	
  40.

  	
  NOTICE

  	
   

  
	
  41.

  	
  GOVERNING
  LAW

  	
   

  
	
  42.

  	
  LEASE ENTIRE AGREEMENT

  	
   

  
	
  43.

  	
  BINDING
  EFFECT

  	
   

  
	
  44.

  	
  SECURITY DEPOSIT

  	
   

  
	
  45.

  	
  INTERPRETATION

  	
   

  
	
  46.

  	
  SEVERABILITY

  	
   

  
	
  47.

  	
  INDEPENDENT COVENANTS

  	
   

  
	
  48.

  	
  ADDITIONAL NOTICES

  	
   

  
	
  49.

  	
  GOVERNMENTALLY REQUIRED IMPROVEMENTS

  	
   

  
	
  50.

  	
  RECORDING - SHORT FORM MEMO

  	
   

  
	
  51.

  	
  REAL ESTATE BROKER

  	
   

  
	
  52.

  	
  CAPTIONS AND EXHIBITS

  	
   

  
	
  53.

  	
  SUBSTITUTION OF OTHER PREMISES Intentionally Omitted

  	
   

  
	
  54.

  	
  ADDITIONAL CHARGES FOR TAXES AND LANDLORD’S
  OPERATING EXPENSES

  	
   

  
	
  55.

  	
  HAZARDOUS MATERIAL

  	
   

  
	
  56.

  	
  TELEPHONE AND TELECOMMUNICATIONS SERVICE

  	
   

  
	
  57.

  	
  TRANSFER OF LANDLORD’S INTEREST

  	
   

  
	
  58.

  	
  TIME IS OF THE ESSENCE

  	
   

  
	
  59.

  	
  ADDITIONAL PROVISIONS

  	
   

  
	
   

  	
   59.01

  	
  Warranty Disclaimer

  	
   

  
	
   

  	
   59.02

  	
  Waiver of Trial by Jury

  	
   

  
	
   

  	
   59.03

  	
  Force
  Majeure

  	
   

  

 

ii

 

	
  Addendum

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Leased Premises Plan

  
	
  Exhibit
  B

  	
   

  	
  Rules
  and Regulations

  
	
  Exhibit
  C

  	
   

  	
  Lease
  Term Agreement

  
	
  Exhibit
  D

  	
   

  	
  Parking
  Agreement

  
	
  Exhibit
  E

  	
   

  	
  Landlord’s
  Waiver and Consent

  

 

iii

 

DENVER
PLACE

 

Office Lease Facing Page

 

THIS OFFICE
LEASE FACING PAGE, together with the General Lease Provisions and any Lease
Guaranties, Exhibits and Addenda attached hereto, shall constitute the Lease
between Tenant described below, as Tenant, and DENVER PLACE ASSOCIATES LIMITED
PARTNERSHIP, a Delaware limited partnership, as Landlord, for the Leased
Premises described below, made and entered into as of the Lease Date specified
below.

 

	
  LEASE DATE:

  	
   

  	
  October 24, 2000

  
	
   

  	
   

  	
   

  
	
  LANDLORD:

  	
   

  	
  DENVER PLACE ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited
  partnership

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
   

  	
  ESCHELON TELECOM OF COLORADO, INC., a Minnesota corporation

  
	
   

  	
   

  	
   

  
	
  LEASED PREMISES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Suite Number:

  	
   

  	
  126

  
	
   

  	
   

  	
   

  
	
  Floor:

  	
   

  	
  Main Floor, The Mall at Denver Place

  
	
   

  	
   

  	
   

  
	
  Total Rentable Area

  	
   

  	
   

  
	
  of the Leased Premises:

  	
   

  	
  6000 rentable square feet

  
	
   

  	
   

  	
   

  
	
  LEASE TERM:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Commencement Date:

  	
   

  	
  January 15, 2001

  
	
   

  	
   

  	
   

  
	
  Lease Period:

  	
   

  	
  Ten (10) years, sixteen (16) days

  
	
   

  	
   

  	
   

  
	
  Lease Expiration:

  	
   

  	
  January 31, 2011

  
	
   

  	
   

  	
   

  
	
  BASE RENT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Months 1 through 120:

  	
   

  	
  $9,250.00 per month

  
	
   

  	
   

  	
   

  
	
  Proportionate Share of applicable taxes and

  
	
  Building Operating Expenses:

  	
   

  	
   

  	
  6,000

  
	
   

  	
   

  	
   

  	
  754,288 = .80%

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LEASE DEPOSIT:

  	
   

  	
  $20,000.00 on the Commencement Date, $20,000 on the first anniversary
  of the Commencement Date and $20,000 on the second anniversary of the
  Commencement Date; to be reduced by $3,000.00 per year commencing on the
  fourth (4th) anniversary of the Commencement Date, provided Tenant is

  
						

 

4

 

	
   

  	
   

  	
  not in default in the performance of its obligations under the Lease,
  and continuing on each annual anniversary of the Commencement Date, provided
  Tenant is not in default in the performance of its obligations under the
  Lease.

  

 

5

 

GENERAL OFFICE LEASE
PROVISIONS

 

WHEREAS,
Landlord owns that building commonly known as Denver Place and located at 999 -
18th Street, Denver, Colorado 80202 (hereinafter called the “Building”), which
is situated on a portion of real property being more particularly described as
Lots 1 through 32 inclusive, Block 110, East Denver Subdivision City and County
of Denver, State of Colorado. The Building, the land upon which the Building
stands and the land and improvements surrounding the Building and designated
from time to time by Landlord as land or common areas appurtenant to or
servicing the Building, together with any other buildings or land located on
the above-described real property are hereinafter called the “Real Property”;
and

 

WHEREAS,
Landlord has agreed to lease to Tenant the Leased Premises hereinafter
described on the terms and conditions hereinafter set forth:

 

1.             THE LEASED PREMISES

 

1.01         NOW,
THEREFORE, in consideration of the rent and the covenants and agreements
hereinafter made on the part of the Tenant to be paid, observed and performed,
the Landlord has demised and leased and by these presents does demise and lease
the Leased Premises described on the Office Lease Facing Page, attached hereto
and outlined in the Plan attached hereto as Exhibit A and forming part
hereof but excluding therefrom any part of the exterior face of the Building to
the Tenant, together with the right of the Tenant in common with the Landlord,
its other tenants, sub-tenants and invitees thereof to the nonexclusive use of
the following portions of the Building:

 

(a)           the
entrance foyer and lobby of the Building; and

 

(b)           the
common corridors on the floor of the Building on which the Leased Premises are
situated and other areas appurtenant to or servicing the Building, together
with public entrance doors, halls, stairways, passages, elevators, shipping and
receiving areas and lavatories in the Building, provided, however, that
Landlord shall have the right from time to time to eliminate, substitute, build
upon or rearrange all of items (a) and (b) above, including, but not limited
to, the garden court on the third floor of the Building, as Landlord deems
appropriate in its discretion.

 

2.             DEFINITIONS

 

2.01         In
this Lease or on the Office Lease Facing Page, the following terms or words
shall have the following meanings:

 

(a)           “Business
Day” means any of the days from Monday to Friday excluding any nationally
recognized holiday.

 

(b)           “Commencement
Date” means the date so designated on the Office Lease Facing Page, attached
hereto, or the date which is forty-five (45) days after the date the Landlord

 

6

 

provides the Leased Premises
“shell” to Tenant in accordance with Article 67 of the Telecommunications
Addendum, whichever last occurs.

 

(c)           “Net
Rentable Square Feet” or “Net Rentable Area”, as the term is used throughout
this Lease, for a multiple tenancy floor means the total square feet which is
computed by measuring to the inside finish of permanent outer building walls,
or to the center line of the glass if a portion of the outer building wall is
glass, to the center line of corridor partitions, and to the center of
partitions that separate the Leased Premises from adjoining rentable area. No
deductions shall be made for columns and projections necessary to the Building.

 

(d)           “Net
Rentable Square Feet” or “Net Rentable Area”, as the term is used throughout
this Lease, for a single tenancy floor, means the total square feet which is
computed by measuring to the inside finish of permanent outer building walls,
or from the center line of glass. Net Rentable Area shall include all area
within outside walls less stairs, elevator shafts, flues, pipe shafts, and
vertical ducts. No deductions shall be made for columns and projections necessary
to the Building. Lavatories or public toilets within and exclusively serving
only that floor, janitor closets, electrical closets, telephone closets, slop
sinks and a proportionate share of main and second floor lobby areas shall be
included in Net Rentable Area.

 

(e)           “Normal
Business Hours” means the hours from 8 a.m. to 6 p.m. on Business Days and the
hours 8 a.m. to 1 p.m. on Saturday’s excluding nationally recognized holidays.

 

(f)            “Proportionate
Share” means the amount so designated on the Office Lease Facing Page, attached
hereto and calculated by dividing the Total Rentable Area as set forth on the
Facing Page by 95% of the Total Rentable Area of the Building.

 

(g)           “Public
Areas” means and shall include all square feet or areas on the floor less the
Net Rentable square feet and less public stairs, public elevator shafts, flues,
stacks, pipe shafts, vertical ducts and vents.

 

(h)           “Rent”,
as the term is used throughout this Lease, shall denote the “Base Rent,” as is
hereinafter defined, plus all other financial obligations of the Tenant
hereunder which are herein described as “Additional Rental” or “Additional
Rent.”

 

(i)            “Telecommunications
Addendum” means the addendum attached hereto and containing Articles 60 through
72 of this Lease. The terms of the Telecommunications Addendum supplement and,
in certain respects, supercede certain terms of this Lease. In the event of any
conflict between the provisions of the Telecommunications Addendum and the
provisions of the other portions of this Lease, the provisions of the
Telecommunications Addendum shall control.

 

(j)            “Term”
means the number of years and months in the Lease Period, set forth on the
Office Lease Facing Page attached hereto, to be computed from 12 o’clock noon
on the Commencement Date and expiring at 12 o’clock noon the last day of such
Lease Term.

 

7

 

(k)           “Total
Rentable Area of the Leased Premises” means the total square feet of the Net
Rentable Area of the Leased Premises and Tenant’s Proportionate Share of the
Public Areas.

 

(l)            “Total
Rentable Area of the Building” shall mean 754,288 square feet, which is 95% of
the rentable area of the Building.

 

3.             TERM OF LEASE

 

3.01         Tenant
shall have the right to have and hold the Leased Premises for and during the
Term subject to the payment of the Base Rent and the Additional Rent and the
full and timely performance by Tenant of the covenants and conditions
hereinafter set forth. In the event that the Term shall not have commenced on
or before March 1, 2001, then this Lease may be terminated by either party upon
delivery of written notice to the other party, and in such event both parties
hereto shall be released from all obligations hereunder; provided, however,
that in the event the delay in the commencement of the Term is due to a Tenant
Delay (hereinafter defined) Tenant shall not have the right to elect to
terminate this Lease pursuant to the provisions of this Section 3.01. In the
event that the actual Commencement Date of the Lease is other than as set forth
on the Office Lease Facing Page, Landlord and Tenant shall execute a Lease Term
Agreement in the form attached hereto as Exhibit C.

 

4.             BASE RENT

 

4.01         Except
as otherwise specifically provided by this Lease, Tenant covenants and agrees
to timely pay without notice, deduction, set-off or abatement to the Landlord
at DENVER PLACE ASSOCIATES LIMITED PARTNERSHIP, A/R DEPARTMENT, DENVER,
COLORADO 80256-0165, or such other address as Landlord may notify Tenant of in
writing yearly and every year during the Term hereof, Base Rent, in lawful
money of the United States, payable in monthly installments set forth on the
Office Lease Facing Page, attached hereto, commencing on the Commencement Date
and each month thereafter, in advance on the first day of each month during the
Term hereof. If the Term hereof commences on any day other than the first day
of the month, Base Rent for the fractions of a month at the commencement of the
Term shall be adjusted pro rata on a per diem basis using a thirty (30) day
month. Landlord agrees to provide Tenant with invoices for each monthly
installment of Base Rent at least thirty (30) days prior to the due date
thereof.

 

5.             COMMENCEMENT AND CONDUCT OF BUSINESS

 

5.01         Tenant
shall occupy the Leased Premises in a reputable manner and in compliance with
the provisions of this Lease and the requirements of all applicable
governmental laws and regulations.

 

6.             QUIET ENJOYMENT

 

6.01         Landlord
covenants that if, and so long as Tenant performs each and every covenant,
agreement, term, provision and condition of this Lease on the part and on
behalf of Tenant to be kept and performed, Tenant shall quietly enjoy its
rights under this Lease without hindrance or molestation by Landlord or by any
other person lawfully claiming the same, by,

 

8

 

through, or under Landlord,
subject to the covenants, agreements, terms, provisions and conditions of this
Lease.

 

7.             SERVICES

 

7.01         Standard
Services.

 

(a)           Climate
Control. Subject to any applicable law, rule, or governmental order or
regulation, Landlord shall provide climate control to the Leased Premises
during Normal Business Hours to maintain a temperature adequate for comfortable
occupancy, except during the making of repairs, alterations or improvements,
provided that the recommendations of Landlord’s engineer regarding occupancy
and use of the Leased Premises are complied with by Tenant, and provided that
the Landlord shall have no responsibility or liability for failure to supply
climate control service when stopped as aforesaid or when prevented from doing
so by strikes or any cause beyond the Landlord’s reasonable control, including
failure of any utility company to provide the Building with appropriate utility
service, so long as such failure is not caused solely by the acts of Landlord.
The Tenant acknowledges that the Landlord has installed in the Building a
system for the purpose of climate control, which system is designed to heat and
cool during normal occupancy of the Leased Premises as general offices on the
basis of the recommendation of Landlord’s engineer regarding occupancy and use
of the Leased Premises and based upon the window shading (which shading shall,
unless otherwise consented to by Landlord, be uniform in the Building) being
fully closed in those offices having exterior windows exposed to the sun and
without regard to the Tenant’s specific use thereof or the installation of any
computers or data processing equipment. Landlord will use commercially
reasonable efforts to minimize any interruption of the supply of chilled water
to the Leased Premises resulting from repairs, alterations or improvements.
Notwithstanding the foregoing provisions of this Section 7.01(a) to the
contrary, in the case of the substantial interruption of the chilled water
supply to the Leased Premises, or any portion thereof, and if such interruption
continues for seven (7) consecutive days without Landlord having provided
reasonable substitute temporary services, and as a result Tenant is not using the
Leased Premises (or portion affected) then Base Rent for the Leased Premises
(or, if only a portion of the Leased Premises is affected, for such portion)
shall be abated commencing on the first day following the seventh (7th)
consecutive day of such interruption until the service in question has been
restored.

 

(b)           Elevator
Service.

 

(1)           Subject
to the Rules and Regulations referred to in Section 13.01, the Landlord shall
furnish to the Building in which the Leased Premises are located, except when
repairs are being made, elevator service during Normal Business Hours, provided
that the Tenant, its employees and all other persons using the same shall do so
at their own risk.

 

(2)           There
shall be no liability on the Landlord for any claim in respect of any failure
by the Landlord to provide elevator service during any power failure or other
cause beyond the control of the Landlord or by reason of the carrying out of
any repairs, maintenance, or replacement of elevators, nor shall there be, as a
result of the foregoing, any repayment of or reduction or abatement in the rent
reserved hereby. Landlord will use commercially reasonable

 

9

 

efforts to minimize any
disruption to the Tenant resulting from repairs, maintenance, or replacement of
elevators.

 

(c)           Janitorial
Services. The Landlord shall cause, when reasonably necessary from time to
time, the floors to be swept or vacuumed and windows to be cleaned and the
desks, tables and other furniture of the Tenant to be dusted, trash removed
(waste baskets), and replacement of fluorescent bulbs in Building standard
lighting fixtures, all in keeping with a similar office building located in the
downtown area of Denver, Colorado, provided, however, that Landlord shall not be
responsible for any act of omission or commission on the part of the person or
persons employed to perform such work; such work shall be done at the
Landlord’s direction without interference by the Tenant, its servants or
employees. Notwithstanding any provision of this section 7.01(c) to the
contrary, Landlord shall provide no janitorial services to Tenant’s switch room
located in the Leased Premises, and no janitorial personnel shall have access
to such switch room, except as requested by Tenant and as coordinated by and
between Tenant and Landlord’s building manager.

 

(d)           Water
and Electricity. Subject to any law, rule or governmental order or
regulation, the Landlord shall make available domestic water and, if available,
at Landlord’s discretion, condenser water, in reasonable quantity and cause
electric current to be supplied for lighting the Leased Premises and public
halls and for the operation of office equipment, subject to the provisions of
Sections 9 and 10 hereof.

 

7.02         Additional
Services. The following services are being provided to the Leased
Premises in addition to the standard services described in Section 7.01 above
(“Additional Services”) and the costs and expenses incurred by Landlord will be
charged directly to Tenant as an Additional Services Charge and will not be
included in the Operating Expenses for the Building:

 

(a)           Climate
Control Alterations. Intentionally Omitted.

 

(b)           Excess
Utility Use. Intentionally Omitted.

 

(c)           Non-Standard
Equipment. Intentionally Omitted.

 

(d)           Excess
Janitorial Services. If Tenant requires any janitorial or cleaning services
in excess of the amounts provided by Landlord according to subsection 7.01(c)
(such as cleaning services beyond normal office janitorial services for
kitchens, computer rooms, or other special use areas and carpet cleaning),
Landlord will provide such excess services to Tenant within a reasonable period
after Tenant’s request is made to the manager of the Building, provided that
such excess services are available from Landlord’s regular janitorial or
cleaning contractor. Tenant will pay the cost of such excess services as
Additional Services. Landlord will also provide, within a reasonable period
after Tenant’s request is made to the manager of the Building, or at Tenant’s
cost and to the extent available to Landlord, replacement of bulbs, tubes, or
ballasts in any Building non-standard lighting fixtures in the Leased Premises.
Tenant will pay the costs of such services as Additional Services.

 

(e)           Excess
Services. If Tenant requires any work, service, or materials performed for,
or facilities or materials furnished to Tenant, to a greater extent or in a
manner

 

10

 

more favorable to Tenant than
those performed for or furnished to other tenants of the Building, including,
but not limited to, supplying paper towels, restocking recycling containers,
hanging pictures or whiteboards, providing extra keys to the Leased Premises
and any other work or services which relate to Tenant’s use of the Leased
Premises, Landlord will provide such excess services to Tenant within a
reasonable period after Tenant’s request is made to the manager of the Building
provided that such excess services are available from the manager of the
Building, or the contractors already retained by the manager of the Building.
Tenant will pay the cost of such excess services as Additional Services.

 

7.03         Interruption
of Service. Tenant agrees that Landlord shall not be liable for failure
to supply any such heating, air conditioning, elevator or janitor services or
electric current during any period when Landlord uses reasonable diligence to
supply such services or current. It is understood that Landlord reserves the
right to temporarily discontinue such services, or any of them, or such current
at such time as may be necessary by reason of accident, repairs, alterations or
improvements or whenever by reason of strikes, lockouts, riots, acts of God or
any other happening beyond the control of Landlord. Landlord shall not be liable
for damages to persons or property for any such discontinuance, nor shall such
discontinuance in any way be construed as eviction of or cause an abatement of
rent or operate to release Tenant from any of the Tenant’s obligations
hereunder. Landlord’s obligation to furnish services or current shall be
conditioned upon the availability of adequate energy sources from the public
utility companies then servicing the downtown area of the City and County of
Denver. Landlord shall have the right to reduce heating, cooling or lighting in
the public areas in the Building as required by any mandatory or voluntary fuel
or energy program. Landlord shall have the right to enter upon the Leased
Premises at all reasonable times in order to make such repairs, alterations or
adjustments as shall be necessary in order to comply with the provisions of any
mandatory or voluntary fuel or energy saving allocation or similar statute,
regulation or program. Except in the case of an emergency and provided Landlord
has been informed of the name, address and telephone number of Tenant’s
Operations Manager of the Leased Premises, Landlord shall not so enter upon the
Leased Premises without first notifying and obtaining the consent of said
Operations Manager, which consent shall not be unreasonably, withheld.
Notwithstanding the foregoing provisions of this Section 7.03 to the contrary,
in the case of the substantial interruption services, and if such interruption
continues for seven (7) consecutive days without Landlord having provided reasonable
substitute temporary services, and as a result Tenant is not using the Premises
(or portion affected) then Base Rent for the Premises (or, if only a portion of
the Premises is affected, for such portion) shall be abated commencing on the
first day following the seventh (7th) consecutive day of such
interruption until the service in question has been restored.

 

7.04         Telephone
Service Paid by Tenant. Tenant shall separately arrange with the
applicable local public authorities or utilities, as the case may be, for the
furnishing of, and payment for all telephone services as may be required by
Tenant in the use of the Leased Premises. Tenant shall directly pay for such
telephone services, including the establishment and connection thereof, at the
rates charged for such services by said authority or utility and the failure of
Tenant to obtain or to continue to receive such services for any reason
whatsoever shall not relieve Tenant of any of its obligations under this Lease.

 

11

 

8.             BUSINESS TAXES, ETC.

 

8.01         Tenant
shall fully and timely pay all business and other taxes, charges, rates,
duties, assessments and license fees levied, rates imposed, charged or assessed
against or in respect of the Tenant’s occupancy of the Leased Premises or in
respect of the personal property, trade fixtures, furniture and facilities of
the Tenant or the business or income of the Tenant on and from the Leased
Premises, if any, as and when the same shall become due, and to indemnify and
hold Landlord harmless from and against all payment of such taxes, charges,
rates, duties, assessments and license fees and against all loss, costs,
charges and expenses occasioned by or arising from any and all such taxes,
rates, duties, assessments and license fees.

 

8.02         Tenant
shall promptly deliver to Landlord for inspection at Landlord’s option, upon
written request of the Landlord, receipts for payment of all taxes, charges,
rates, duties, assessments and licenses in respect of all improvements,
equipment and facilities of the Tenant on or in the Leased Premises which were
due and payable up to one (1) year prior to such request, and in any event to
furnish to the Landlord, if requested by the Landlord, evidence, satisfactory
to the Landlord of any such payments.

 

9.             METERS

 

9.01         Except
as otherwise provided in the Telecommunications Addendum, Tenant shall pay as
an Additional Services Charge, on demand, or Landlord may bill Tenant for such
services with other Additional Services, the cost of any metering which may be
requested by the Tenant to be installed by the Landlord in the Building for the
purpose of determining any utility (including electricity and water) consumed
in the Leased Premises or any metering which may be required by the Landlord to
measure any excess usage of electricity, water or other utility or energy.

 

10.          USE OF ELECTRICITY

 

10.01       Except
as otherwise provided in the Telecommunications Addendum, Tenant’s use of
electricity in the Leased Premises shall be for the operation of building
standard lighting, electrical fixtures, typewriters and other office machines
and lamps and shall not at any time exceed the capacity of any of the
electrical conductors and equipment in or otherwise serving the Leased
Premises.

 

10.02       In
order to ensure that such capacity is not exceeded and to avert possible
adverse effect upon the Building’s electrical services, the Tenant shall not,
without the Landlord’s prior written consent in each instance, connect any
additional fixtures, appliances or equipment (other than normal office
electrical fixtures, lamps, typewriters, and similar office machines) to the
Building’s electrical distribution system or make any alterations or additions
to the electric system of the Leased Premises existing at the commencement of
the Term. If the Landlord grants such consent, the cost of all additional
risers and other equipment required therefor shall be charged to Tenant as an
Additional Services Charge and paid by Tenant to Landlord upon demand, or
Landlord may bill Tenant for such services with other Additional Services.
Furthermore, Tenant shall, at Landlord’s option, pay on demand as Additional
Services, the cost of any electric current or other energy for the operation of
heavy accounting equipment, copy equipment, computer equipment or other
equipment requiring more than is necessary for normal business office use as
determined by the Landlord.

 

12

 

11.          TENANT REPAIR

 

11.01       If
the Building, the elevators, boilers, engines, pipes and other apparatus, or
members or elements of the Building (or any of them) used for the purpose of
climate control of the Building or operating the elevators, or if the water
pipes, drainage pipes, electric lighting or other equipment of the Building or
the roof or outside walls of the Building or parking facilities of Landlord
become damaged or are destroyed through the negligence, carelessness or misuse
of the Tenant, its servants, agents, employees or anyone permitted by Tenant to
be in the Building, or through Tenant, then the cost of the necessary repairs,
replacements or alterations shall be borne by the Tenant who shall forthwith
pay the same on demand to the Landlord as Additional Rent.

 

11.02       Tenant
shall keep the Leased Premises in as good order, condition and repair as when
they were entered upon, loss of fire (unless caused by the negligence of
Tenant, its agents, employees or invitees), unavoidable accident or ordinary
wear and tear excepted. If Tenant fails to keep the Leased Premises in such
good order, condition and repair as required hereunder to the satisfaction of
Landlord, Landlord may restore the Leased Premises to such good order and
condition and make such repairs without liability to Tenant for any loss or
damage that may accrue to Tenant’s property or business by reason thereof, and
upon completion thereof, Tenant shall pay to Landlord, as Additional Rent, upon
demand, the cost of restoring the Leased Premises to such good order and
condition and of the making of such repairs. Except in the case of an
emergency, Landlord shall not make such repair or restoration without providing
Tenant with prior written notice thereof.

 

11.03       Tenant
shall deliver, at the expiration of the Term hereof or sooner upon termination
of the Term, the Leased Premises in good repair as aforesaid and in a state of
broom cleanliness. In the event Tenant fails to vacate the Leased Premises on a
timely basis as required, Tenant shall be responsible to Landlord for all costs
incurred by Landlord as a result of such failure, including, but not limited
to, any amounts required to be paid to third parties who were to have occupied
the Leased Premises.

 

11.04       Tenant
shall leave the Leased Premises at the end of each Business Day in a reasonably
tidy condition for the purpose of allowing the performance of the Landlord’s
cleaning services hereinabove described.

 

12.          ASSIGNMENT, SUBLETTING, PARTING WITH POSSESSION

 

12.01       Tenant
shall not permit any part of the Leased Premises to be used or occupied by any persons
other than the Tenant, any subtenants permitted under Section 12.02 and the
employees of the Tenant and any such permitted subtenant, or permit any part of
the Leased Premises to be used or occupied by any licensee or concessionaire,
or permit any persons to be upon the Leased Premises other than the Tenant,
such permitted subtenants, and their respective employees, customers and others
having lawful business with them.

 

12.02       Tenant
shall not assign or sublet nor part with the possession of all or part of the
Leased Premises without the prior written consent of Landlord, which consent
shall not be unreasonably withheld or delayed; provided, however, such consent
to any assignment or

 

13

 

subletting shall not relieve
the Tenant from its obligations for the payment of all rental due hereunder and
for the full and faithful observance and performance of the covenants, terms
and conditions herein contained. Landlord shall be entitled to withhold consent
to a proposed assignment arbitrarily if Landlord exercises the right
hereinafter set out in Section 12.03. The sale of fifty percent (50%) or more
of the stock of Tenant, if Tenant is a corporation, shall constitute an
assignment of the Lease for purposes of this Section 12.02. Consent of the
Landlord to an assignment or subletting shall not in any way be construed to
relieve the Tenant from obtaining the consent of the Landlord to any further
assignment or subletting. Without limitation of the circumstances in which
Landlord’s withholding of consent to an assignment or subletting shall not be
unreasonable, it shall not be unreasonable for Landlord to withhold its consent
if the reputation, financial responsibility, or business of the proposed
assignee or subtenant is unsatisfactory to Landlord in its reasonable
discretion, or if Landlord reasonably deems such business to be not consonant
with that of other tenants in the Building, or if the intended use by the
proposed assignee or subtenant conflicts with any prior written commitment made
by Landlord to any other tenant in the Building, or if the proposed assignee or
subtenant is a Prohibited Entity (hereinafter defined). For the purposes of
this Lease, “Prohibited Entity”, unless otherwise agreed in writing by Landlord,
shall mean (i) a governmental or a governmental subdivision, instrumentality or
agency, (ii) a school, college or university, (iii) an employment, recruitment
or temporary help service or agency, (iv) a collection agency, (v) any entity
or an affiliate thereof which has previously defaulted in the performance of
its obligations under a lease concerning any portion of the Building or any
portion of that building known as the Denver Place Plaza Tower, also known and
numbered as 1099 - 18th Street, Denver, Colorado 80202 (“Plaza Tower”), (vi)
any tenant or subtenant of the Building or Plaza Tower, or (vii) any person or
entity or any of their affiliates, with whom Landlord, or any affiliate of
Landlord, has negotiated to lease space in the Building or Plaza Tower within
the six month period preceding Tenant’s request for an assignment or sublease.

 

12.03       If
Tenant requests Landlord’s consent to an assignment of this Lease or to a
subletting of the whole or any part of the Leased Premises, Tenant shall submit
to Landlord a written statement, including, without limitation, the name of the
proposed assignee or subtenant, a description of the terms and conditions of
the proposed assignment or sublease, including the amount of rent Tenant will
be charging the proposed assignee or subtenant, and such information as to the
nature of its business and its financial responsibility and standing as
Landlord may reasonably require, and the effective date of the proposed
assignment. Upon receipt of such request and information from Tenant, Landlord
shall have the right exercisable by notice in writing within fourteen (14) days
after such receipt to cancel and terminate this Lease if the request is to
assign this Lease or to sublet all of the Leased Premises or, if the request is
to assign or sublet a portion of the Leased Premises to cancel and terminate
the Lease with respect to such portion, in each case as of the date set forth
in Landlord’s notice of exercise of such right, which shall be neither less
than sixty (60) nor more than one hundred and twenty (120) days following the
giving of such notice. If Landlord shall exercise such right Tenant shall
surrender possession of the entire Leased Premises or the portion which is the
subject of the right, as the case may be, on the date set forth in such notice
in accordance with the provisions of this Lease relating to surrender of the
Leased Premises at the expiration of the Term. If this Lease shall be canceled
as to a portion of the Leased Premises only, the Base Rent payable by the
Tenant under this Lease shall be abated proportionately.

 

14

 

12.04       If
any time during the Term hereof: (a) any part or all of Tenant’s capital stock
or voting rights of shareholders shall be transferred by sale, assignment,
bequest, inheritance, trust, operation of law or other disposition, or shares
be issued so as to result in a change in the control of Tenant by reason of the
change in ownership of greater than fifty percent (50%) of the capital stock of
Tenant; and (b) as a result of such change in control, there occurs a decrease
in Tenant’s net worth, then the Landlord shall have the right to terminate this
Lease. The Tenant shall, upon request of the Landlord, make available to the
Landlord for inspection or copying or both, all such records of the Tenant
which, alone or with other data, show the applicability or inapplicability of
this Section 12.04. If any executive officer of the Tenant shall, upon request
of the Landlord fail or refuse to furnish to the Landlord data, which alone or
with other data, show the applicability of Section 12.04, then the Landlord may
terminate this Lease on sixty (60) day’s notice as aforesaid. This Section
12.04 shall not apply to the Tenant from and after the date the control of the
Tenant is represented by shares listed on a national stock exchange or the
NASDAQ Quotation System.

 

12.05       Contemporaneously
with any request or proposal by Tenant to sublet or assign any part of this
Lease, Tenant shall pay all reasonable costs, including reasonable attorneys’
fees, incurred by Landlord, in connection with Landlord’s investigation of any
financial or other information of the proposed assignee or subtenant. The
payment of such costs shall not obligate Landlord in any way to consent to any
proposed assignment or subletting nor shall the amount of costs paid by Tenant
be applied or used as a set-off to any amounts due or to become due by Tenant
to Landlord.

 

12.06       Landlord
and Tenant further agree that Tenant shall not publish or otherwise disseminate
any written advertising material in connection with any proposed assignment or
sublease of all or any portion of the Leased Premises (the Advertising”)
without Landlord’s prior written approval of the same, which approval shall not
be unreasonably withheld; provided, however, that no Advertising shall contain
any reference to the price to be charged in connection with any proposed
assignment or sublease.

 

12.07       Notwithstanding
anything to the contrary contained herein, if Tenant, as a debtor-in-possession
(the “DIP”), or a trustee for the estate in bankruptcy of Tenant (the
“Trustee”), assumes this Lease and proposes to assign this Lease, or sublet the
Leased Premises (or any portion thereof), pursuant to the provisions of the
Federal Bankruptcy Code, 11 U.S.C. Sections 101 et  seg. (the
“Bankruptcy Code”) to any person, partnership, corporation or other entity (the
“Proposed Assignee”), then such assumption of this Lease and any such
assignment or sublease shall be subject to all of the following:

 

(a)           If
the rental agreed upon between the DIP or the Trustee, as the case may be, and
the Proposed Assignee under any proposed assignment or sublease of the Premises
(or any part thereof) is greater than the rental rate that Tenant must pay
Landlord hereunder for that portion of the Leased Premises that is subject to
such proposed assignment or sublease, or if any consideration shall be received
by the DIP or the Trustee, as the case may be, in connection with any such
proposed assignment or sublease, then all such excess rental or such
consideration shall be paid or delivered to Landlord, and shall not constitute
property of the DIP, the Trustee, or of the estate of Tenant, as the case may
be, within the meaning of the Bankruptcy Code; and

 

15

 

(b)           Any
proposed assignment or sublease of this Lease by the DIP or the Trustee, as the
case may be, pursuant to provisions of the Bankruptcy Code shall provide
adequate assurance of future performance under this Lease by the Proposed
Assignee, which adequate assurance shall include, as a minimum, the following:
(i) any Proposed Assignee of the Lease shall deliver to Landlord a security
deposit in an amount equal to at least three (3) monthly installments of Base
Rent accruing under this Lease; (ii) any Proposed Assignee of the Lease shall
provide to Landlord an unaudited financial statement, certified to be accurate
by such Proposed Assignee or by an officer, director or partner thereof and dated
no later than six (6) months prior to the effective date of such proposed
assignment or sublease, which financial statement shall show, the Proposed
Assignee to have a net worth equal to at least the Rent that shall accrue under
this Lease for the next year of the Term; (iii) any Proposed Assignee shall pay
all Rent not previously paid under this Lease including all payments which have
been suspended, mitigated, nullified or reduced to a claim of any kind against
Tenant or the Tenant’s property, by operation of law or otherwise; and (iv) any
Proposed Assignee shall assume Tenant’s obligation to pay Landlord’s attorneys’
fees pursuant to the provisions of this Lease.

 

This Section 12.07 shall not apply to any assignment or sublease other
than pursuant to the provisions of the Bankruptcy Code, nor shall it in any way
limit Landlord’s right to damages or other relief in a proceeding under the
Bankruptcy Code.

 

13.          RULES AND REGULATIONS

 

13.01       Tenant
and employees and all persons visiting or doing business with the Tenant in the
Leased Premises shall be bound by and shall observe the reasonable Rules and
Regulations promulgated from time to time by the Landlord relating to the
Building or the Leased Premises of which notice in writing shall be given to
the Tenant and all such rules and regulations shall be deemed to be
incorporated into and be a part of this Lease. Tenant acknowledges that
attached hereto as Exhibit B and incorporated herein by this reference
are the current Rules and Regulations promulgated by the Landlord for the
Building. Any continuing and material default by Tenant in the performance or
observance of such rules and regulations after written notice thereof has been
sent by Landlord and received by Tenant shall be a default hereunder and Landlord
shall have all remedies provided for in this Lease in the event of default by
Tenant. Landlord, however, shall not be responsible to Tenant for nonobservance
by any other tenant or person of such rules or regulations.

 

14.          USE OF LEASED PREMISES

 

14.01       Except
as expressly permitted by prior written consent of the Landlord, the Leased
Premises shall not be used other than for the operation of telecommunications
switches and related equipment and for associated general business office
purposes. All use of the Leased Premises shall comply with the terms of this
Lease and all applicable laws, ordinances, regulations or other governmental
ordinances from time to time in existence, including but not limited to the
Skyline Urban Renewal Plan and the deed restriction imposed thereunder by the
Denver Urban Renewal Authority.

 

16

 

15.          TENANT’S INSURANCE

 

15.01       (a)           Tenant shall, during
its occupancy of the Leased Premises and during the entire Term hereof, at its
sole cost and expense, obtain, maintain and keep in full force and effect, and
with the Tenant, the Landlord and the mortgagees of the Landlord named as
beneficiaries therein as their respective interests may appear, the following
types and kinds of insurance:

 

(i)            “All
Risk” or “Special Coverage Form” insurance upon property of every description
and kind owned by the Tenant and located in the Building or for which the
Tenant, is legally liable or installed by or on behalf of the Tenant,
including, without limitation, furniture, fittings, installations, alterations,
additions, partitions, fixtures and anything in the nature of a leasehold
improvement in an amount not less than eighty percent (80%) of the full
replacement cost thereof, and in the event that there shall be a dispute as to
the amount which comprises full replacement cost, the decision of the Landlord
or the mortgagees of the Landlord shall be conclusive.

 

(ii)           Public
Liability coverage with respect to the Leased Premises and Tenant’s use of any
part of the Building which coverage shall include the business operations
conducted by the Tenant and any other persons on the Leased Premises. Insurance
shall be a Comprehensive-General Liability form (including Contractual
Liability) in an amount not less than $1,000,000.00 per person and
$3,000,000.00 per occurrence whether involving personal injury liability, (or
death resulting therefrom) or property damage liability, or a combination
thereof with a minimum aggregate limit of $3,000,000.00 or such higher limits
as the Landlord may reasonably require from time to time.

 

(iii)          Any
other form or forms of insurance as the Tenant or the Landlord or the
mortgagees of the Landlord may reasonably require from time to time in form, in
amounts and for insurance risks against which a prudent tenant would protect
itself.

 

(iv)          Business
interruption insurance in such amounts as will reimburse the Tenant for direct
or indirect loss of earnings attributable to all perils commonly insured
against by prudent tenants or attributable to prevention of access to the
Leased Premises or to the Building as a result of such perils.

 

(v)           If
Tenant performs any work on the Leased Premises, prior to the commencement of
any such work, Tenant shall deliver to Landlord certificates issued by
insurance companies qualified to do business in the State of Colorado,
evidencing that workmen’s compensation and public liability insurance and
property damage insurance, all in the amounts satisfactory to Landlord, are in
force and effect and maintained by all contractors and subcontractors engaged
by Tenant to perform such work.

 

(b)           All
property damage policies written on behalf of the Tenant shall contain a waiver
of any subrogation rights which the Tenant’s insurers may have against the
Landlord and against those for whom the Landlord is, in law, responsible
whether any such damage is caused by the act, omission or fault of the Landlord
or by those for whom the Landlord is, in law, responsible.

 

17

 

(c)           All
policies shall be taken out with insurers acceptable to the Landlord and in
form satisfactory from time to time to the Landlord. All policies shall name
Landlord as an additional insured. The Tenant agrees that certificates of
insurance, or, if required by the Landlord or the mortgagees of the Landlord,
certified copies of each such insurance policies will be delivered to the
Landlord as soon as practicable after the placing of the required insurance,
but in no event later than ten (10) days after Tenant takes possession of all
or any part of the Leased Premises. All policies shall contain an undertaking
by the insurers to notify the Landlord and the mortgagees of the Landlord in
writing not less than thirty (30) days prior to any material change, cancellation
or other termination thereof.

 

(d)           The
Tenant covenants and agrees that in the event of damage or destruction to the
leasehold improvements in the Leased Premises covered by insurance required to
be taken out by the Tenant pursuant to subsection 15.01(a)(i), the Tenant will
use the proceeds of such insurance for the purpose of repairing or restoring
such leasehold improvements. In the event of damage to or destruction of the
Building entitling the Landlord to terminate this Lease pursuant to Section
31.02 hereof, then, if the Leased Premises have also been damaged, the Tenant
will pay to the Landlord all of its insurance proceeds relating to the
leasehold improvements in the Leased Premises and if the Leased Premises have
not been damaged, the Tenant will deliver to the Landlord, in accordance with
the provisions of this Lease, the leasehold improvements and the Leased
Premises.

 

16.          CANCELLATION OF INSURANCE

 

16.01       If
any insurance policy upon the Building or any part thereof shall be canceled or
cancellation shall be threatened or the coverage thereunder reduced or
threatened to be reduced or the premium therefor increased, in any way by
reason of the use or occupation of the Leased Premises or any part thereof by
the Tenant or by any assignee or subtenant of the Tenant or by anyone permitted
by the Tenant to be upon the Leased Premises and, if the Tenant fails to remedy
the condition giving rise to cancellation, threatened cancellation, reduction
of coverage, or increase in premium within forty-eight (48) hours after notice,
the Landlord may, at its option, enter Upon the Leased Premises and attempt to
remedy such condition or demand payment of the amount of increased premium by
Tenant and the Tenant shall forthwith pay the cost thereof to the Landlord as
Additional Rent. The Landlord shall not be liable for any damage or injury
caused to any property of the Tenant or of other located on the Leased Premises
as a result of such entry. In the event that the Landlord shall be unable to
remedy such condition, then Landlord shall have all of the remedies provided
for in the Lease in the event of a default by Tenant. Notwithstanding the
foregoing provisions of this Section 16.01, if Tenant fails to remedy as
aforesaid, Tenant shall be in default of its obligation hereunder and Landlord
shall have no obligation to attempt to remedy.

 

17.          OBSERVANCE OF LAW

 

17.01       Tenant
shall comply with all provisions of law, including, without limitation,
federal, state, county and city laws, ordinances and regulations and any other
governmental, quasi-governmental or municipal regulations which relate to the
partitioning, equipment operation, alteration, occupancy and use of the Leased
Premises, and to the making of any repairs, replacements, alterations,
additions, changes, substitutions or improvements of or to the

 

18

 

Leased Premises. Moreover, the
Tenant shall comply with all police, fire, and sanitary regulations imposed by
any federal, state, county or municipal authorities, or made by insurance
underwriters, and to observe and obey all governmental and municipal
regulations and other requirements governing the conduct of any business
conducted in the Leased Premises. Notwithstanding the foregoing, it shall be
the Landlord’s responsibility to comply with federal, state, county and city
legislative enactments, building codes and any other governmental or municipal
which relate to the Building insofar as they may require changes of a
structural nature in the Building, provided, nevertheless, that such changes
shall be the responsibility of the Tenant if there are changes required to be
made in the Tenant’s improvements or partitioning whether such changes are
required by reason of the nature of the use or improvements contemplated or
made by the Tenant. As of the date of this Lease, Landlord has received no
notice from any governmental authority with jurisdiction over the Building that
the Building is not in compliance with any laws, codes, rules, ordinances or
regulations to which the Building is subject.

 

18.          WASTE AND NUISANCE

 

18.01       Tenant
shall not commit, suffer or permit any waste or damage or disfiguration or
injury to the Leased Premises or common areas in the Building or the fixtures
and equipment located therein or thereon, or permit or suffer any overloading
of the floors thereof and shall not place therein any safe, heavy business
machinery, computers, data processing machines, or other heavy items without
first obtaining the consent in writing of the Landlord and, if requested, by
Landlord’s superintending architect, and not use or permit to be used any part
of the Leased Premises for any dangerous, noxious or offensive trade or
business, and shall not cause or permit any nuisance, noise or action in, at or
on the Leased Premises.

 

19.          ENTRY BY LANDLORD

 

19.01       Tenant
shall permit the Landlord, its servants or agents to enter upon the Leased
Premises, which entry shall be, except in the case of an emergency, at
reasonable times and upon reasonable oral notice to Tenant, to make repairs,
alterations or improvements to the Building, or for the purpose of having
access to the underfloor or ceiling ducts, if any, or to the access panels to
mechanical shafts (which the Tenant agrees not to obstruct), and the Tenant
shall not be entitled to compensation for any inconvenience, nuisance or
discomfort occasioned thereby. Subject to the provisions of the immediately
preceding sentence, the Landlord, or its servants or agents may at any time and
from time to time enter upon the Leased Premises to remove any article or
remedy any condition which in the opinion of the Landlord, reasonably arrived
at, would be likely to lead to cancellation of any policy of insurance hereof,
and such entry by the Landlord shall not be deemed to be re-entry under
subsection 36.01(b) hereof. The Landlord shall use commercially reasonable
efforts to proceed hereunder in such manner as to minimize interference with
the Tenant’s use and enjoyment of the Leased Premises.

 

20.          INDEMNIFICATION OF LANDLORD

 

20.01       Tenant
shall indemnify the Landlord and save it harmless from and against any and all
loss (including loss of rentals payable by the Tenant or other tenants in the
event of loss either directly or indirectly caused by commission or omission of
Tenant), claims, actions,

 

19

 

damages, liability and expenses
in connection with loss of life, personal injury and damage to property arising
from any occurrence in, upon or at the Leased Premises or any part thereof, or
occasioned wholly or in part by any act or willful misconduct of the Tenant,
its agents, or contractors, employees, servants, licensees, or concessionaires
or invitees or by anyone permitted to be on the Leased Premises by the Tenant.
In case the Landlord shall, without fault on its part, be made a party to any
litigation commenced by or against the Tenant, then the Tenant shall protect
and hold the Landlord harmless and shall pay all costs, expenses and reasonable
attorneys’ fees incurred or paid by the Landlord in connection with such
litigation.

 

20.02       Unless
caused by the gross negligence of Landlord, Tenant shall neither hold nor
attempt to hold Landlord liable for any injury or damage, either proximate or
remote, occurring through or caused by any repairs, alteration, injury or
accident to the Leased Premises, to adjacent premises or other parts of the
Building not herein demised, or for any injury or damage occasioned by gas,
smoke, rain, snow, wind, ice, hail, lightning, earthquake, war, civil disorder,
strike, defective electrical wiring, or the breaking or stoppage of the
plumbing or sewage upon or in the Building or adjacent premises, whether said
breaking or stoppage results from freezing or otherwise.

 

21.          EXHIBITING PREMISES

 

21.01       Tenant
shall permit the Landlord or its agents to exhibit and show the Leased Premises
to prospective tenants during Normal Business Hours of the last twelve (12)
months of the Term or any renewal thereof.

 

22.          ALTERATIONS

 

22.01       Tenant
shall not, without the prior written consent of Landlord, make any alterations,
improvements or additions to the Leased Premises. If Landlord consents to any
alterations, improvements or additions, it may impose such conditions with
respect thereto as Landlord deems appropriate, including, without limitation,
Landlord’s approval of plans and specifications for the work (but Tenant shall
not be entitled to rely upon such approval as evidencing that the plans and
specifications are proper in any respect), use of Landlord’s approved contractors
to perform the work, insurance against liabilities which may arise out of such
work, permits necessary for such work and as-built drawings upon completion of
such work, and the furnishing to Landlord of such security as is determined by
Landlord to be appropriate for the proper completion or such work and its
completion free of mechanic’s, materialmen’s and similar liens or claims
thereof. All work done by Tenant or its contractors shall be done in a
first-class workmanlike manner, using only good grades of materials and without
disturbing other tenants and shall comply with all insurance requirements and
all applicable laws or ordinances and rules and regulations of governmental
departments or agencies. Before proceeding with any such work, Tenant shall
reimburse Landlord for Landlord’s costs of Landlord’s architects’ review of
Tenant’s plans and specifications. Any work performed by or for Tenant shall be
performed by competent workmen whose labor union affiliations are compatible
with those of the workmen who may be employed in the Building by Landlord, its
contractors or subcontractors, and Landlord shall have the right, at its
option, to directly supervise the work, which supervision shall be for the
protection of Landlord’s interest only.

 

20

 

22.02       If
Tenant requests that Landlord, through its contractors, perform the work
associated with any alteration, improvement or addition to the Leased Premises,
and Landlord agrees, in its sole discretion, to perform such work, Landlord
shall provide Tenant with a Tenant Work Order describing the work to be
performed by Landlord and stating the total cost to Tenant for the performance
of the work. Upon Tenant’s acceptance of the Tenant Work Order, the total cost
for the work stated therein shall become a charge or money obligation herein
required to be paid by Tenant in accordance with the provisions of the Tenant
Work Order and subject to the Default and Remedies provisions of this Lease set
forth in Sections 35.01 through 36.05, inclusive. All work performed by
Landlord under this Section 22.02 shall be subject to the provisions of Section
22.01.

 

22.03       Except
as provided in the Telecommunications Addendum, all alterations, additions or
improvements made by Tenant and all fixtures attached to the Leased Premises
shall become the property of Landlord and remain at the Leased Premises or, at
Landlord’s option, any or all of the foregoing shall be removed at the cost of
Tenant before the expiration or sooner termination of this Lease and in such
event Tenant shall repair all damage to the Leased Premises caused by the
installation and/or removal thereof. Tenant shall not permit or suffer any
signs advertisements or notices to be displayed, inscribed upon or affixed on
any part of the outside or inside of the Leased Premises, or in the Building,
except on the entrance doors of the Leased Premises, and then only of such
size, color and style as Landlord may approve. Landlord shall have the right to
remove unauthorized signs at Tenant’s expense.

 

23.          GLASS

 

23.01       Landlord
shall pay on demand the cost of replacement with as good quality and size of
any glass broken on the Leased Premises, including outside windows and doors of
the perimeter of the Leased Premises (including perimeter windows in the
exterior walls) during the continuance of this Lease, unless the glass shall be
broken by the Tenant, its servants, employees or agents acting on its behalf,
in which event Tenant shall pay on demand the cost of replacement.

 

24.          SIGNS AND ADVERTISING

 

24.01       Tenant
shall not install, paint, display, inscribe, place or affix any sign, picture,
advertisements, notice, lettering or direction on any part of the outside of
the Building or in the interior of the Leased Premises or other portion of the
Building. The Landlord will prescribe a uniform pattern of identification signs
for tenants to be placed on the outside of the doors leading into the Leased
Premises and other than such identification signs, Tenant shall not install, paint,
display, inscribe, place or affix, or otherwise attach, any sign, picture,
advertisement, notice, lettering or direction on the outside of the Leased
Premises for exterior view without the written consent of the Landlord.

 

25.          NAME OF BUILDING

 

25.01       Tenant
shall not refer to the Building by other than that designated from time to time
by the Landlord, nor to use such name for any purpose other than that of the
business

 

21

 

address of Tenant provided that
the Tenant may use the street address of the Building assigned to it by the
Landlord instead of the name of the Building.

 

26.          SUBORDINATION AND ATTORNMENT

 

26.01       This
Lease is subject to and subordinate to all mortgages, deeds of trust, or other
security instruments (including any deed of trust and mortgage securing bonds
and all indentures supplemental thereto), whether now in existence or
subsequently placed on the Real Property and to all underlying, superior,
ground or land leases, master leases or primary leases (all of which are
hereinafter referred to collectively as “Mortgage”) which may now or hereafter
encumber the Real Property of which the Leased Premises are a part (the
mortgagee under any such Mortgage or the lessor under any such lease is referred
to herein as “Landlord’s Mortgagee”), and to all or any declaration of
covenants regarding maintenance or use of any areas contained in any portion of
the Building, and all advances, renewals, modifications, consolidations,
replacements and extensions thereof of such mortgages and leases and
declaration of covenants which may now or hereafter affect the Leased Premises
or any part thereof. This clause shall be self-operative and no further
instrument of subordination shall be required in order for the same to be
effective. Notwithstanding the foregoing, Tenant hereby appoints the Landlord,
the agent, or attorney of the Tenant coupled with an interest for the purpose
of executing any acknowledgment or agreement required by Landlord’s Mortgagee.
Tenant, hereby attorns to all successor owners of the Building, whether or not
such ownership is acquired as a result of a sale, through foreclosure of a
Mortgage or otherwise. If Landlord’s Mortgagee shall elect to have this Lease
superior to the lien of its Mortgage, and shall give written notice thereof to
Tenant, this Lease shall be deemed prior to such Mortgage, whether this Lease
is dated prior or subsequent to the date of said Mortgage or the date of
recording thereof. With respect to any Mortgage first encumbering the Building
subsequent to the Commencement Date of the Lease, upon Tenant’s request,
Landlord will use its good faith efforts to cause Landlord’s Mortgagee to agree
that so long as Tenant is not in default of its obligations under the Lease, the
Lease will not be terminated and Tenant’s possession of the Leased Premises
will not be disturbed by the termination or foreclosure, or proceeds for
enforcement, of such Mortgage.

 

27.          ACCEPTANCE OF PREMISES

 

27.01       On
or before December 1, 2000, or such other date as Landlord has completed its
completion obligations (“Landlord’s Completion Obligations”), as set forth in
Article 67 of the Telecommunications Addendum, Tenant and Landlord shall
prepare a mutually agreed upon list (“Punch List”) of items of the Landlord’s
Completion Obligations which need to be corrected or repaired. Landlord agrees
to correct the items set forth on the Punch List within thirty (30) days after
the Punch List has been prepared. In the event Landlord fails to correct any
item set forth on the Punch List within said thirty (30) day period, Tenant
may, at its sole discretion, correct or repair such Punch List item(s) provided
that: (i) Tenant delivered a written notice to landlord indicating that Tenant
intended to correct or repair such Punch List item(s) at least ten (10) days
prior to commencing any correction or repair; and (ii) the repair or correction
of such Punch List item(s) does not affect the structure of the Building, the
electrical, life safety, HVAC, mechanical or plumbing systems of the Building
or any area of the Premises above the ceiling grid. In the event Tenant
corrects or repairs any Punch List item in accordance with the terms of this
Section 27.01 Tenant shall be permitted to offset against Base Rent due hereunder
an amount equal to the

 

22

 

actual out-of-pocket costs and
expenses incurred by Tenant in correcting or repairing such Punch List item(s).
Tenant shall provide Landlord with a copy of any bills, invoices, statements
and checks evidencing Tenant’s payment of all such costs and expenses at or
prior to Tenant’s offset against the payment of Base Rent. Tenant acknowledges
that it will examine the Leased Premises before taking possession hereunder and
agrees that, except for the Punch List items, Tenant shall be conclusively
deemed to have examined the Leased Premises and that the same were in good
order and such taking of possession shall be conclusive evidence as against the
Tenant that at the time thereof the Leased Premises were in good order and
satisfactory condition, subject to the Punch List items and/or latent defects,
if any, and shall be acknowledgment of satisfactory completion of Landlord’s
Completion Obligations, except for the Punch List items.

 

27.02       Tenant
agrees that there is no promise, representation or undertaking by or binding
upon the Landlord with respect to any alteration, remodeling or redecorating of
or installation of equipment or fixtures in the Leased Premises, except such,
if any, as are expressly set forth in this Lease.

 

28.          ESTOPPEL CERTIFICATES

 

28.01       Tenant
and Landlord agree that at any time and from time to time upon not less than
ten (10) business days’ prior notice from the other, the noticed party shall
execute and deliver a statement in writing certifying that this Lease is
unmodified and in full force and effect (or, if modified, stating the
modifications and that the same is in full force and effect as modified), the
amount of the annual rental then being paid hereunder, the dates to which the
same, by installment or otherwise, and other charges hereunder have been paid,
and whether or not there is any existing default of which either the Landlord
or the Tenant has knowledge and such other information reasonably required by the
requesting party.

 

28.02       Landlord
acknowledges and agrees that security interests and liens, if any, granted by
Tenant to third party lenders and covering Tenant’s equipment and fixtures
shall be superior to any title or interest which the Landlord may at any time
have therein, and, during the term of the Lease, Landlord will not assert
against any of Tenant’s equipment and fixtures any title or any statutory,
common law, contractual or possessory lien, including, without limitation,
rights of levy or distraint for rent, Landlord agrees that any of Tenant’s
lenders may remove Tenant’s equipment and fixtures from the Leased Premises
provided that such lender repairs any damage to the Leased Premises and the
improvements located in the Leased Premises caused by such removal. Landlord
agrees to execute and deliver, at Tenant’s expense and concurrently with
Landlord’s execution of this Lease, a Landlord’s Waiver and Consent in the form
of Exhibit E attached hereto and such other waivers and consents
consistent with the foregoing as may be reasonably requested, from time to
time, by one or more of Tenant’s lenders.

 

29.          FIXTURES

 

29.01       Except
as otherwise provided in the Telecommunications Addendum, any or all
installations, alterations, additions, partitions and fixtures other than
Tenant’s trade fixtures in or upon the Leased Premises, whether placed there by
the Tenant or the Landlord, shall, immediately upon such placement, become the
property of the Landlord without compensation

 

23

 

therefor to the Tenant.
Notwithstanding anything herein contained, the Landlord shall be under no
obligation to repair, maintain or insure such installations, alterations,
additions, partitions and fixtures or anything in the nature of a leasehold
improvement made or installed by or on behalf of the Tenant. The Landlord may
elect that any or all installations made or installed by or on behalf of the
Tenant be removed at the end of the Lease Term and it shall be the Tenant’s
obligation to restore the Leased Premises to the conditions they were in
previous to such alterations, installations, partitions and fixtures. Such
removal and restoration shall be at the sole expense of the Tenant.

 

30.          LANDLORD’S INSURANCE

 

30.01       The
Landlord covenants and agrees that throughout the Term it will insure the
Building (excluding foundations and excavations) and the machinery, boilers and
equipment contained therein owned by the Landlord (excluding any property with
respect to which the Tenant is obliged to insure pursuant to the provisions of
Section 15.01 hereof) against damage by fire and extended perils coverage in
such reasonable amounts as would be carried by a prudent owner of a similar
property in the same locale. The Landlord will also, throughout the Term, carry
public liability and property damage insurance with respect to the operation of
the Building in reasonable amounts as would be carried by a prudent owner of a
similar property in the same locale. The Landlord may, but shall not be obliged
to, take out and carry any other form or forms of insurance as it or Landlord’s
Mortgagee may reasonably determine advisable. Notwithstanding any contribution
by the Tenant to the cost of insurance premiums, as provided herein, the Tenant
acknowledges that it has no right to receive any proceeds from any such
insurance policies carried by the Landlord and that such insurance will be for
the sole benefit of Landlord with no coverage for Tenant for any risk insured
against.

 

All property damage policies written on behalf of the Landlord shall
contain a waiver of any subrogation rights which the Landlord’s insurers may
have against the Tenant and against those for whom the Tenant is, in law,
responsible whether any such damage is caused by the act, omission or fault of
the Tenant or by those for whom the Tenant is, in law, responsible.

 

31.          FIRES, ETC.

 

31.01       In
the event of damage to the Leased Premises by fire, or other casualty, or
damage resulting from structural defect, or damage by other casualty against
which the Landlord is insured, and which is not caused by the negligence of
Tenant, rent shall abate in the proportion that the unusable portion of the
Leased Premises as reasonably determined by Landlord is of the Total Rentable
Area of the Leased Premises until the Leased Premises are rebuilt; and the
Landlord agrees that it will with reasonable diligence repair such damage under
the terms hereof, unless this Lease is terminated as hereinafter provided in
Sections 31.02 and 31.03.

 

31.02       Notwithstanding
any provisions of Section 34.01 to the contrary, if the Leased Premises are
damaged or destroyed by any cause whatsoever, and if, in the reasonable opinion
of the Landlord, the Leased Premises cannot be rebuilt or made fit for the
purposes of the Tenant within ninety (90) days of the damage or destruction,
then either the Landlord or the Tenant, may at its option, terminate this Lease
by giving to the other, within thirty (30) days after such damage or
destruction, notice of termination, and thereupon, rent and any other payments
for

 

24

 

which the Tenant is liable
under this Lease shall be apportioned and paid to the date of such damage and
the Tenant shall immediately deliver up possession of the Leased Premises to
the Landlord; provided, however, that those provisions of this Lease which are
designated to cover matters of termination and thereafter shall survive the
termination hereof.

 

31.03       Notwithstanding
any provisions of Section 34.01 to the contrary, irrespective of whether the
Leased Premises are damaged or destroyed, in the event that fifty percent (50%)
or more of the Total Rentable Area of the Building is damaged or destroyed or
made unusable by any cause whatsoever, and if, in the reasonable opinion of the
Landlord the said Total Rentable Area of the Building cannot be rebuilt or made
fit for the purpose of the tenants of such space within one hundred and eighty
(180) days after the damage or destruction, either Landlord or Tenant may, at
its option, terminate this Lease by giving to the other, within thirty (30)
days after such damage, notice of termination requiring Tenant to vacate the
Leased Premises sixty (60) days after delivery of the notice of termination and
thereupon, rent and any other payments for which the Tenant is liable under
this Lease shall be apportioned and paid to the date on which possession is
relinquished and the Tenant shall deliver up possession of the Leased Premises
to the Landlord in accordance with such notice of termination.

 

31.04       If
the fire or other casualty causing damage to the Leased Premises or other parts
of the Building shall have been caused by the negligence or misconduct of
Tenant, its agents, servants, or employees, or by any other persons entering
the Building under express or implied invitation of Tenant and the cost of such
repair is not otherwise covered by Landlord’s insurance, such damage shall be
repaired by Landlord at the expense of Tenant (including, without limitation,
the cost of any deductibles or insurance).

 

31.05       Until
completion repairs as set forth in Section 31.01 by Landlord for the purpose of
enabling Tenant to resume its telecommunications switching operations as soon
as practicable, Landlord agrees to permit Tenant to park vehicles containing
temporary switching equipment adjacent to the Building and permit Tenant to
connect such temporary switching equipment to Tenant’s Equipment in the
Building.

 

32.          CONDEMNATION

 

32.01       If
more than twenty percent (20%) of the Total Rentable Area of the Leased
Premises shall be taken by eminent domain, or by conveyance in lieu thereof,
and if such taking interferes substantially with the Tenant’s use of the Leased
Premises, then this Lease, at the option of either party evidenced by notice to
the other given within thirty (30) days from the taking or conveyance, shall
forthwith cease and terminate entirely. In the event of such termination of
this Lease, then rental shall be due and payable to the actual date of such
termination. If less than twenty percent (20%) of the Total Rentable Area of
the Leased Premises shall be taken, or if more than twenty percent (20%) of the
Leased Premises is taken and neither party terminates this Lease, this Lease
shall cease and terminate as to that portion of the Leased Premises so taken as
of the date of taking, and the rental thereafter payable under this Lease shall
be abated pro rata from the date of such taking in an amount by which that
portion of the Total Rentable Area of the Leased Premises prior to such taking.
If any part of the Building or Real Property shall be taken by eminent domain,
or by conveyance in lieu thereof, and if such taking substantially interferes
with the Landlord’s ownership or use of the Building, the Landlord, at its

 

25

 

option, may terminate this
lease as of the date of such taking. In any event, the Landlord shall receive
the entire award for the land and improvements taken by condemnation and the
Tenant shall not be entitled to any portion thereof.

 

33.          LOSS AND DAMAGE

 

33.01       The
Landlord shall not be liable or responsible in any way for:

 

(a)           any
death or injury arising from or out of any occurrence in, upon or at the
Building or for damage to property of the Tenant or others located on the
Leased Premises, nor shall it be responsible in the event of damage to any
property of the Tenant or others from any cause whatsoever, unless such damage,
loss, injury or death results from the gross negligence of the Landlord, its
agents, servants, or employees or others for whom it may be responsible.
Without limiting the generality of the foregoing, the Landlord shall not be
liable for any injury or damage to persons or property resulting from fire,
explosion, falling plaster, steam, gas, electricity, water, rain, snow or leaks
from any part of the Leased Premises or from the pipes, appliances, or plumbing
works, roof, street, or subsurface of any floor or ceiling or from any other
place or because of dampness or climatic conditions from any other cause of
whatsoever kind. The Landlord shall not be liable for any damage whatsoever
caused by any other tenant or persons in the Building, or by an occupant of
adjacent property thereto, or the public, or construction of any private,
public or quasi-public work. All property of the Tenant kept or stored on the
Leased Premises shall be kept or stored at the risk of the Tenant only and the
Tenant shall indemnify the Landlord in the event of any claims arising out of
damages to the same, including any subrogation claim by the Tenant’s insurers;

 

(b)           any
act or omission (including theft, malfeasance or negligence) on the part of any
agent, contractor or person from time to time employed by Landlord to perform
janitor services or security services, or repairs or maintenance services, in
or about the Leased Premises of the Building; or

 

(c)           loss
or damage, however caused, to money, securities, negotiable instruments, papers
or other valuables of the Tenant.

 

34.          DELAYS

 

34.01       Whenever
and to the extent that the Landlord shall be unable to fulfill, or shall be
delayed or restricted in the fulfillment of any obligation hereunder in respect
to the supply or provision of any service or utility or the doing of any work
or the making of any repairs by reason of being unable to obtain, despite
Landlord’s diligent efforts, the material, goods, equipment, service, utility
or labor required to enable it to fulfill such obligation or by reason of any
statute, law or any regulation or order passed or made pursuant thereto, or by reason
of the order or direction of any administrator, controller or board, or any
governmental department or officer or other authority, or by reason of not
being able to obtain any permission or authority required thereby, or by reason
of any other cause beyond its control whether of the foregoing character or
not, the Landlord shall be entitled to extend the time for fulfillment of such
obligation by a time equal to the duration of such delay or restriction, and
the Tenant shall not be entitled to compensation for any inconvenience,
nuisance or discomfort thereby occasioned;

 

26

 

provided, however, that,
subject to the provisions of Article 31 which shall control in the event of any
damage to or destruction of the Leased Premises or the Building, Tenant shall
be entitled to terminate this Lease, effective one hundred twenty (120) days
after written notice of such intent to terminate given by Tenant to Landlord
and Landlord’s mortgagee, if Landlord and/or its mortgagee is or are unable to
fulfill Landlord’s obligations hereunder or provide any service or repair and
such inability continues for said one hundred eighty (180) days.

 

35.          DEFAULT

 

35.01       Upon
the happening of any one or more of the following events, Landlord may give
notice to Tenant stating that the Term of this Lease is terminated on a date
and if such notice shall be given, the Term of this Lease shall terminate on
the date so stated:

 

(a)           The
failure of Tenant to timely and fully pay any installment of rent, or other
charge or money obligation herein required to be paid by Tenant.

 

(b)           
The failure of Tenant to perform any one or more of its other covenants under
this Lease and Tenant’s failure to remedy such non-performance within thirty
(30) days after receipt of written notice thereof from Landlord; provided,
however, that Tenant shall not be deemed in default if such non-performance
cannot be cured within such thirty (30) day period and Tenant commences curing
such matter within such thirty (30) day period and thereafter diligently
pursues such cure to completion within one hundred twenty (120) days after
commencement thereof.

 

(c)           The
making by Tenant of an assignment for the benefit of its creditors.

 

(d)           The
levying of a writ of execution or attachment on or against the property of
Tenant if the same is not released or discharged within thirty (30) days
thereafter.

 

(e)           
The instituting of proceedings in a court of competent jurisdiction for the
involuntary bankruptcy, arrangement, reorganization, liquidation or dissolution
of Tenant under the Federal Bankruptcy Code (as now or hereafter in effect) or
any state bankruptcy or insolvency act, or for its adjudication as a bankrupt
or insolvent, or for the appointment of a receiver of the property of Tenant,
and said proceedings are not dismissed, or any receiver, trustee, or liquidator
appointed therein is not discharged within thirty (30) days after the
institution of said proceedings.

 

(f)            
The instituting of proceedings for the voluntary bankruptcy arrangement,
reorganization, liquidation or dissolution of Tenant under the Federal
Bankruptcy Code (as now or hereafter in effect) or any state bankruptcy or
insolvency act or if Tenant shall otherwise take advantage of any state or
federal bankruptcy or insolvency act as a bankrupt or insolvent.

 

(g)           
The doing, or permitting to be done, by Tenant of any act which creates a
mechanic’s lien or claim therefor against the land or Building of which the
Leased Premises are a part of the same is not released or otherwise provided
for by indemnification satisfactory to Landlord within twenty (20) days
thereafter.

 

(h)           The
abandonment or vacating of the Leased Premises.

 

27

 

Notwithstanding any such termination, Tenant shall remain liable to
Landlord as hereinafter provided in Article 36 of this Lease.

 

35.02       No
condoning, excusing or overlooking by the Landlord of any default, breach or
non-observance by the Tenant at any time or times in respect of any covenants,
provisions or conditions herein contained shall operate as a waiver of the
Landlord’s rights hereunder in respect of any continuing or subsequent default,
breach or non-observance, or so as to defeat or affect such continuing or
subsequent default or breach, and no waiver shall be inferred from or implied
by anything done or omitted by the Landlord save only express waiver in
writing. All rights and remedies of the Landlord in this Lease contained shall
be cumulative and not alternative.

 

36.          REMEDIES OF LANDLORD

 

36.01       If
an event of default set forth in Section 35.01 occurs, the Landlord shall have,
subject to its obligation, if any, to mitigate its damages in accordance with
Colorado law as it exists at the time of the exercise by Landlord of its rights
and remedies hereunder, the following rights and remedies in addition to all
other remedies, at law or in the equity, and none of the following, whether or
not exercised by the Landlord, shall preclude the exercise of any other right
or remedy whether herein set forth or existing at law or in equity:

 

(a)           Landlord
shall have the right to terminate this Lease by giving the Tenant notice in
writing, and upon the giving of such notice, this Lease and the Term hereof as
well as all the right, title and interest of the Tenant under this Lease shall
wholly cease and expire in the same manner and with the same force and effect
on the date specified in such notice as if such date were the expiration date
of the Term of this Lease, without the necessity of re-entry or any other act
on the Landlord’s part. Upon termination, the Tenant shall quit and surrender
to Landlord the Leased Premises as set forth in Section 11.03. If this Lease is
so terminated by Landlord, Landlord shall be entitled to recover from the
Tenant as damages the worth at the time of such termination of the excess, if
any, of the amount of rent reserved in this Lease for the balance of the term
of this Lease (which shall be calculated on the then current rent under this
Lease) in excess of the then reasonable rental value of the Leased Premises for
the same period plus all costs and expenses of Landlord caused by the Tenant’s
default.

 

(b)           Landlord
may, without demand, or notice, re-enter and take possession of the Leased
Premises or any part thereof, repossess the same and expel the Tenant and those
claiming through or under the Tenant, and remove the effects of any and all
such persons (forcibly, if necessary) without being deemed guilty of any manner
of trespass and without prejudice to any remedies for arrears of rent or
preceding breach of covenants. Should the Landlord elect to re-enter as
provided in this Section 36.01 or should the Landlord take possession pursuant
to legal proceedings or pursuant to any notice provided for by law, the
Landlord may, from time to time, without terminating this Lease, relet the
Leased Premises or any part thereof for such other conditions as the Landlord
may deem advisable with the right to make alterations and repairs to the Leased
Premises. No such re-entry or repossession of the Leased Premises by the
Landlord shall be construed as an election on the Landlord’s part to terminate
this Lease unless a written notice of termination is given to the Tenant by the
Landlord. No such re-entry or repossession of the Leased Premises shall relieve
the Tenant of its

 

28

 

liability and obligation under
this Lease, all of which shall survive such re-entry or repossession. Upon the
occurrence of such re-entry or repossession, the Landlord shall be entitled to
damages in the amount of the monthly rent, and any other sums, which would be
payable hereunder if such re-entry or repossession had not occurred, less the
net proceeds, if any, of any reletting of the Leased Premises after deducting
all the Landlord’s expenses in connection with such reletting, including, but
without limitation, all repossession costs, brokerage commissions, legal
expenses, attorney’s fees, expenses of employees, alteration costs and expenses
of preparation for such reletting, Tenant shall pay such liquidated damages to
the Landlord on the days on which the rent or any other sums due hereunder
would have been payable hereunder if possession had not been retaken. In no
event shall the Tenant be entitled to receive any excess, if any, of net rent
collected by the Landlord as a result of such reletting over the sums payable
by the Tenant to the Landlord hereunder.

 

36.02       Intentionally
Omitted.

 

36.03       If
the Tenant shall default in making any payment required to be made by the
Tenant (other than payments of rent) or shall default in performing any other
obligations of the Tenant under this Lease, the Landlord may, but shall not be
obligated to, make such payment or, on behalf of the Tenant, expend such sums
as may be necessary to perform such obligations. All sums so expended by the
Landlord, shall bear interest thereon at the Lease Interest Rate (hereinafter
defined), and shall be repaid by the Tenant to the Landlord on demand. No such
payment or expenditure by the Landlord shall be deemed a waiver of the Tenant’s
default nor shall it affect any other remedy of the Landlord by reason of such
default.

 

If any payment of rent or any other sum; or any part of any such
payment, to be made by Tenant under the terms of this Lease shall become
overdue for a period in excess of five days Tenant shall pay to Landlord (x) a
“late charge” of $.05 for each dollar so overdue, for the purpose of defraying
the expense incident to handling such overdue or delinquent payment, and (y) interest
on the overdue amount at the Lease Interest Rate (defined below) from the date
when such payment was due until the date paid, but in no event more than the
amount or rate which is the maximum amount or rate Landlord may lawfully charge
in respect of Tenant in such circumstances under applicable law. The “Lease
Interest Rate” shall mean the greater of twelve percent (12%) per annum or the
variable rate which is from time to time equal to 3% above the prime rate as
stated by U.S. Bank, Denver, Colorado or its successor, or, in the absence of
there being a successor to U.S. Bank, by such other bank having an office in
the City of Denver, as Landlord may from time to time select. Nothing herein
shall be construed as waiving any rights of Landlord arising out of any default
of Tenant by reason of Landlord’s accepting any such late charge or interest;
the right to collect a late charge and interest is separate and apart from any
other rights or remedies of Landlord after default by Tenant.

 

36.04       Nothing
in this Lease contained shall limit or prejudice the right of Landlord to prove
and obtain as liquidated damages in any bankruptcy, insolvency, receivership,
reorganization, or dissolution proceeding an amount equal to the maximum
allowed by any statute or rule of law governing such a proceeding and in effect
at the time when such damages are to be proved, whether or not such amount be
greater, equal to or less than the amounts recoverable, either as damages or
rent, referred to in any of the preceding provisions of this Lease.

 

29

 

36.05       Notwithstanding
anything in this Article 36 or any other provision of this Lease to the
contrary, this Lease shall not be terminated by service upon Tenant of a notice
from Landlord demanding payment of rent or possession of the Leased Premises
following default by Tenant, or by any action of Tenant to vacate the Leased
Premises following receipt of such a notice, unless the notice served by
Landlord includes a statement expressly terminating this Lease. Further,
Landlord reserves the right to receive payment of all unaccrued rent for the
balance of the Term originally contemplated under subsection 2.01(i) of this
Lease (and any extensions or renewals thereof which Tenant shall have become
bound) following service of such a notice for payment of rent or possession, or
a notice terminating this Lease for Tenant’s default.

 

37.          HOLDING OVER

 

37.01       If
the Tenant shall continue to occupy and continue to pay Rent for the Leased
Premises after the expiration of this Lease with or without the consent of the
Landlord, and without any further written agreement, the Tenant shall be a
tenant from month to month at a monthly Base Rent equal to one hundred fifty
percent (150%) of the last full monthly Base Rent payment due hereunder, and
subject to all of the additional rentals, charges, terms and conditions herein
set out except as to expiration of the Lease Term.

 

37.02       No
payments of money by Tenant to Landlord after the termination of this Lease, in
any manner, or after giving of any notice (other than a demand for payment of
money) by Landlord to Tenant, shall reinstate, continue or extend the term of
this Lease or affect any notice given to Tenant prior to the payment of such
money, it being agreed that after the service of notice or the commencement of
a suit or other final judgment granting Landlord possession of said premises,
Landlord may receive and collect any sums of Rent due, or any other sums of
money due under the terms of this Lease, or otherwise exercise its rights and
remedies hereunder. The payment of such sums of money, whether as rent or
otherwise, shall not waive said notice, or in any manner affect any pending
suit or judgment theretofore obtained.

 

38.          DIRECTORY BOARD

 

38.01       The
Tenant shall be entitled to have its name shown upon the Directory Board of the
Building. The Landlord shall designate the style of such Directory Board, which
shall be located in an area designated by the Landlord in the main lobby.

 

39.          TRANSFER BY LANDLORD

 

39.01       In
the event of a sale, lease or other transfer by the Landlord of the Building or
a portion thereof containing the Leased Premises, the Landlord shall, without
further written agreement, be freed, released and relieved of all liability or
obligations under this Lease arising from acts, omissions or events occurring
after such sale, lease or other transfer, subject to the provisions of Section
44.01 hereof.

 

40.          NOTICE

 

40.01       Any
notice, request, statement or other writing pursuant to this Lease shall be
deemed to have been given if sent by registered or certified mail, postage
prepaid, return receipt requested to the party at the address stated below:

 

30

 

	
  To Landlord:

  	
   

  	
  AMERIMAR REALTY MANAGEMENT CO.-

  COLORADO, as agent for Landlord

  
	
   

  	
   

  	
  999 18th Street, Suite 1201

  
	
   

  	
   

  	
  Denver, CO  80202

  
	
   

  	
   

  	
   

  
	
  With Copy to:

  	
   

  	
  Denver Place Associates Limited Partnership

  
	
   

  	
   

  	
  210 West Rittenhouse Square, Suite 2000

  
	
   

  	
   

  	
  Philadelphia, PA 19103

  

 

or to Tenant at the following address until occupancy of the Leased
Premises and after occupancy of the Leased Premises by Tenant, at the Leased
Premises,

 

	
   

  	
   

  	
  c/o ESCHELON TELECOM, INC.

  
	
   

  	
   

  	
  730 Second Avenue South, Suite 1200

  
	
   

  	
   

  	
  Minneapolis, MN 55401

  
	
   

  	
   

  	
   

  
	
  With Copy to:

  	
   

  	
  J. Jeffery Oxley, Esq.

  
	
   

  	
   

  	
  Vice President and General Counsel

  
	
   

  	
   

  	
  Eschelon Telecom, Inc.

  
	
   

  	
   

  	
  730 Second Avenue South, Suite 1200

  
	
   

  	
   

  	
  Minneapolis, MN 55401

  

 

and such notice shall be deemed to have been received by the Landlord
or Tenant, as the case may be, on the second business day after the date on
which it shall have been so mailed.

 

40.02       Notice
shall also be sufficiently given if and when the same shall be delivered, in
the case of notice to Landlord, to an executive officer of the Landlord, and in
the case of notice to the Tenant or the Guarantor, an executive officer of the
Tenant or the Guarantor. Such notice, if delivered, shall be conclusively
deemed to have been given and received at the time of such delivery. If in this
Lease two or more persons are named as Tenant, such notice shall also be
sufficiently given if and when the same shall be delivered personally to any
one of such persons.

 

40.03       Any
party may, by notice to the other, from time to time, designate another address
in the United States or Canada to which notices mailed more than ten (10) days
thereafter shall be addressed.

 

41.          GOVERNING LAW

 

41.01       This
Lease shall be deemed to have been made in and shall be construed in accordance
with the laws of the State of Colorado.

 

42.          LEASE ENTIRE AGREEMENT

 

42.01       The
Tenant acknowledges that there are no covenants, representations, warranties,
agreements or conditions, expressed or implied, collateral or otherwise forming
part of or in any way affecting or relating to this Lease save those expressly
set out in this Lease, the Facing Page and Exhibits attached hereto and that
this Lease, the Facing Page and Exhibits attached hereto and the Rules and
Regulations promulgated by Landlord in accordance with Section 13.01 hereof

 

31

 

constitute the entire agreement
between the Landlord and the Tenant and may not be amended or modified except
as explicitly provided or except by subsequent agreement in writing of equal
formality hereto executed by the Landlord and the Tenant.

 

43.          BINDING EFFECT

 

43.01       Except
as expressly provided herein, this Lease shall inure to the benefit of, and be
binding upon, the parties hereto and their respective successors and permitted
assigns, and all covenants and agreements herein contained to be observed and
performed by the Tenant shall be joint and several. Tenant shall look solely to
the estate and interest of Landlord, its successors and assigns, in and to the
Real Property or the proceeds therefrom for the collection of a judgment (or
other judicial process) requiring the payment of money by Landlord hereunder,
and no other property or assets of Landlord shall be subject to levy, execution
or’ other enforcement procedure for the satisfaction of Tenant’s remedies under
or with respect to this Lease, the relationship of Landlord and Tenant
hereunder or Tenant’s use of occupancy of the Leased Premises.

 

44.          SECURITY DEPOSIT

 

44.01       The
Tenant shall keep on deposit with the Landlord at all times during the term of
this Lease, the Lease Deposit specified on the Facing Page hereof as security
for the payment by the Tenant of the rent or any other sums due under this
Lease and for the faithful performance of all the terms, conditions and
covenants of this Lease. The Lease Deposit shall be deposited by Landlord in a
six (6) month certificate of deposit (the “CD”) at US Bank, N.A., downtown
Denver, Colorado branch, and shall remain so deposited throughout the Term
unless earlier returned, in full, to Tenant or applied by Landlord in
accordance with the provisions of this Lease. All interest accrued on the CD
shall belong to Tenant and shall be paid to Tenant at such time as the Lease
Deposit is returned, in full, to Tenant or applied by Landlord in accordance
with the provisions of this Lease. If at any time during the term of this Lease
the Tenant shall be in default in the performance of any provision of this
Lease, the Landlord may (but shall not be required to) use any such deposit, or
so much thereof as necessary, in payment of any rent or any other sums due
under this Lease in default, in reimbursement of any expense incurred by the
Landlord and in payment of the damages incurred by the Landlord by reason of
the Tenant’s default, or at the option of the Landlord, the same may be
retained by the Landlord as liquidated damages. In such event, the Tenant
shall, on written demand of the Landlord, forthwith remit to the Landlord a
sufficient amount in cash to restore such deposit to its original amount. If
such deposit has not been utilized as aforesaid, such deposit, or as much
thereof as has not been utilized for such purposes, shall be refunded to the
Tenant, with interest as set forth in this Section 44.01, upon full performance
of this Lease by the Tenant. Landlord shall deliver the funds deposited herein
by the Tenant to any purchaser of the Landlord’s interest in the Leased
Premises in the event such interest be sold, and thereupon, the Landlord shall
be discharged from further liability with respect to such deposit.
Notwithstanding the above provisions of this section, if claims of the Landlord
exceed the deposit provided for therein, the Tenant shall remain liable for the
balance of such claims.

 

32

 

45.          INTERPRETATION

 

45.01       Unless
the context otherwise requires, the word “Landlord” whenever it is used herein
shall be construed to include and shall mean the Landlord, its successors
and/or assigns, and the word “Lease” shall be construed to include and shall
mean the General Lease Provisions, the Office Lease Facing Page and any
Exhibits attached hereto unless the context otherwise specifies and the word
“Tenant” shall be construed to include and shall mean the Tenant, and the
successors and/or assigns of the Tenant; the word “Tenant” and the personal pronouns
“his” and “it” relating thereto and used therewith shall be read and construed
as tenants, and “his”, “her”, “its” or “their”, respectively, as the number and
gender of the party or parties referred to each require and the number of the
verb agreeing therewith, shall be construed and agree with the said word or
pronoun so substituted. Time shall be of the essence in all respects hereunder.

 

46.          SEVERABILITY

 

46.01       Landlord
and Tenant agree that all of the provisions of this Lease are to be construed as
covenants and agreements where used in each separate paragraph hereof. Should
any provision or provisions of this Lease be illegal or not enforceable, it or
they shall be considered separate and severable from this Lease and its
remaining provisions shall remain in force and be binding upon the parties
hereto as though the said provision or provisions had never been included.

 

47.          INDEPENDENT COVENANTS

 

47.01       This
Lease shall be construed as though the covenants herein between Landlord and
Tenant are independent, and not dependent, and, except as otherwise
specifically provided in this Lease, Tenant shall not be entitled to any set
off of the rent or other amounts owing hereunder against Landlord, if Landlord
fails to perform its obligations set forth herein; provided, however, the
foregoing shall in no way impair the right of Tenant to commence a separate
action against Landlord for any violation by Landlord of the provisions hereof
so long as notice is first given to Landlord and any holder of a mortgage or
deed of trust covering the Building or any portion thereof and an opportunity
granted to Landlord and such holder to correct such violation as provided in
Section 48.01 below.

 

48.          ADDITIONAL NOTICES

 

48.01       In
the event of any alleged default on the part of Landlord hereunder, Tenant
shall give written notice to Landlord in the manner herein set forth and shall
afford Landlord a reasonable opportunity to cure any such default. In addition,
Tenant shall send notice of such default by certified or registered mail,
postage prepaid, to the holder of any mortgages or deeds of trust covering the
Building or any portion thereof of whose address Tenant has been notified in
writing, and shall afford such holder a reasonable opportunity to cure any
alleged default on Landlord’s behalf.

 

49.          GOVERNMENTALLY REQUIRED IMPROVEMENTS

 

49.01       If
any improvement or structural modification or addition to the Building is
required subsequent to the commencement of the term hereof by any change in the
laws, ordinances, rules, regulations or orders of any governmental or
quasi-governmental authority having jurisdiction over the Building, the rent to
be paid by Tenant shall be further adjusted, in

 

33

 

such amount as Landlord’s
independent certified public accountants may determine so that Tenant pays its
Proportionate Share of Landlord’s per square foot cost (computed in the same
manner as otherwise provided in this Lease) of such improvement or structural
modification or addition, amortized at a market rate of return over the useful
life thereof. In determining such adjustment in rent, Landlord’s independent
certified public accountant shall consider any cost reductions to Landlord in
operating the Building resulting from such improvement or structural
modification or addition. Tenant shall commence payment of any adjustment in
its rent pursuant to this Section 49.01 on the first day of the month following
notice thereof by Landlord.

 

50.          RECORDING - SHORT FORM MEMO

 

50.01       This
Lease shall not be recorded in its entirety. If recorded by Tenant, at
Landlord’s option this Lease shall terminate as of the date of recording and
Landlord shall have all rights and remedies provided in the case of default by
Tenant hereunder. If requested by Landlord, Tenant shall execute in recordable
form a short form memorandum of Lease which may, at Landlord’s option, be
placed of record. In addition, if requested by Landlord, Tenant shall execute a
memorandum of Lease to be filed with the Colorado Department of Revenue on such
form as may be prescribed by said Department within ten (10) days after the
execution of the Lease or any other such memorandum so that the Landlord may
avail itself of the provision of statutes such as C.R.S. §39-22-604(7)(c).

 

51.          REAL ESTATE BROKER

 

51.01       Tenant
represents that Tenant has dealt directly with (and only with) John Fefley,
CRESA Partners, 7979 East Tufts Parkway, Suite 810, Denver, Colorado 80237, as
Broker in connection with this Lease and that no other broker has negotiated
this Lease is or entitled to any commission or compensation in connection
herewith. Tenant warrants and agrees to save and hold Landlord harmless from
any and all leasing commissions, costs and liability, including reasonable
attorney fees with respect to the Leased Premises regarding any other broker.
Landlord represents that Landlord has dealt directly with (and only with) Garth
R. D. Tait, 999 18th Street, Suite 1201 North Tower, Denver, Colorado 80202, as
Broker in connection with this Lease and that no other broker has negotiated
this Lease or is entitled to any commission or compensation in connection
herewith. Landlord warrants and agrees to save and hold Tenant harmless from
any and all leasing commissions, costs and liability, including reasonable
attorney fees with respect to the Leased Premises regarding any other broker.

 

52.          CAPTIONS AND EXHIBITS

 

52.01       The
captions appearing within the body of this Lease have been inserted as a matter
of convenience and for reference only and in no way define, limit or enlarge
the scope or meaning of this Lease or of any provision hereof. The Exhibits
attached to this Lease and incorporated herein by this reference are as
follows:

 

	
  Addendum

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Leased Premises Plan

  
	
  Exhibit B

  	
   

  	
  Rules and Regulations

  
	
  Exhibit C

  	
   

  	
  Lease Term Agreement

  

 

34

 

	
  Exhibit D

  	
   

  	
  Parking Agreement

  
	
  Exhibit E

  	
   

  	
  Landlord’s Waiver and Consent

  

 

53.          SUBSTITUTION OF OTHER PREMISES      Intentionally Omitted.

 

54.          ADDITIONAL CHARGES FOR TAXES AND
LANDLORD’S OPERATING EXPENSES

 

54.01       During
each lease year of the Term (and pro rata for partial lease years) Tenant shall
pay to Landlord “Additional Rent,” which is equal to the sum of Tenant’s
Proportionate Share of Operating Expenses and Additional Services Charge. Such
payment shall be made in equal monthly installments in advance, together with
the Rent.

 

54.02       For
purposes of this Article 54, the following terms shall have the meaning
hereinafter set forth:

 

(a)           “Calendar
Year” shall mean each calendar year in which any part of the Term falls,
through and including the year in which the Term expires.

 

(b)           “Common
Areas” shall mean such areas and facilities of common benefit to the tenants
and occupants of the complex of any portion thereof as Landlord shall make
available from time to time. Landlord shall, consistent with an office building
of similar age and quality in downtown Denver, Colorado, operate, manage,
equip, heat, ventilate, cool, light, insure, repair and maintain the Common
Areas for their intended purposes in such manner as Landlord shall in its sole
discretion determine, and may from time to time change the size, location and
nature of any common area, and may make installation therein, and alter, move
and remove the same, and Landlord shall not be subject to liability therefor,
nor shall Tenant be entitled to any compensation, or diminution or abatement of
rent, nor shall any such action be deemed an actual or constructive eviction of
Tenant.

 

(c)           Intentionally
Omitted.

 

(d)           “Operating
Expenses” shall mean the total costs and expenses of every kind and nature
whatsoever paid or incurred by Landlord (including appropriate reserves) in
connection with the ownership, operation, management, maintenance and repair of
the Real Property or Building (exclusive of the “Enclosed Shopping Mall,”
located in an area attached to the first and second floors of the Building,
which is for the benefit of both the retail and office tenants of the Building)
and, as allocated consistently by Landlord between office tenants of the
Building, those paid or incurred in connection with the ownership, operation,
management, maintenance and repair of any garage or other improvements the use
of which is shared by the Building and one or more other buildings. Operating
Expenses include, but are not limited to, the costs of utilities, insurance,
Taxes, reasonable administration, general maintenance other than those costs
reimbursable to Landlord by other tenants in the Building, wages and related
taxes, cleaning, repairs and replacements, window washing, rubbish removal,
snow removal, sewer charges, fuel, air conditioning, fire protection, signs,
general landscape maintenance, operation of loudspeakers and any other
equipment supplying music and any other costs, charges and expenses which,
under sound management practice, would be regarded as operating expenses.
Without limiting the generality of the foregoing, Operating Expenses may also
include the cost

 

35

 

of all capital improvements for
the Building amortized over such number of years as Landlord may reasonably
determine, with interest, at the greater of 12% per annum or two per cent (2%)
over the “Prime rate” established from time to time by U.S. Bank, Denver, Colorado
or its successor, on the unamortized amount of any capital improvements which,
(i) in Landlord’s reasonable judgement, will have the effect of reducing any
component cost included within Operating Expenses by more than the cost of such
capital expenditure, (ii) are made or installed to assure compliance with all
governmental rules and regulations applicable from time to time, or (iii) under
generally applied real estate accounting practices may be expenses or treated
as deferred expenses (and the amortization and interest so determined for each
calendar year shall be included in Operating Expenses for that calendar year).

 

The following shall be excluded from Landlord’s Operating Expenses: (i)
depreciation; (ii) principal, interest and other charges on debt; (iii) the
cost of capital improvements (as defined by generally accepted accounting
principals), except as provided in the immediately preceding sentence and
except as required by any governmental authority with jurisdiction over the
Building; (iv) promotional and similar fees; (v) costs of replacing all or a
substantial portion of the parking garage located underneath the Building; (vi)
costs of replacing the foundation, exterior wall, roof and/or roof membrane of
the Building, including the Leased Premises; and (vii) cost to remove hazardous
or toxic substances from areas outside of the Leased Premises, unless caused by
Tenant.

 

(e)           “Taxes”
shall mean all real estate taxes and assessments, special or otherwise, levied
or assessed upon or with respect to the Real Property and Building (including
without limitation, any leasehold improvements therein) and, as allocated
consistently by Landlord between office tenants of the Building, those levied
or assessed upon or with respect to any garage or other improvements (and their
land) the use of which is shared by the Building and one or more other
buildings, and ad valorem taxes for any personal property used in the operation
of the Real Property and Building and all taxes levied or assessed upon or with
respect to the leasing, use or occupancy of the Real Property or any part
thereof or the rents or receipts paid or payable to Landlord therefrom
(including, without limitation, any general gross receipts tax and any income
tax levied or assessed especially with respect to real property or any type of
real property which includes the Real Property), which Landlord shall become
obligated to pay or which could become liens on the Real Property. Should the
State of Colorado, or any political subdivision thereof, or any other
governmental authority, impose a tax, assessment, charge or fee, which Landlord
shall be required to pay, wholly or partially in substitution for any of the
above Taxes, all such taxes, assessments, fees or charges shall be deemed to
constitute Taxes hereunder but shall be computed as if the Real Property and
any other shared use real property referred to in this subsection was the only
real property of Landlord. “Taxes” shall include all fees and costs, including
reasonable attorneys’ fees, appraisals and consultants’ fees, incurred by
Landlord in seeking to obtain a reduction of, or a limit on, any increase in
any Taxes (regardless or whether any reduction or limitation is obtained). The
amount of any refund of Taxes received by Landlord shall be credited against
Taxes for the year in which such refund is received.

 

(f)            “Proportionate
Share of Operating Expenses” shall be the product of: (i) the excess of total
Operating Expenses multiplied by (ii) the Proportionate Share defined in
subsection 2.01(f) above.

 

36

 

(h)           “Additional
Services Charge” shall mean all expenses and disbursements that Landlord incurs
in connection with the ownership, operation, and maintenance of the Leased
Premises, in addition to the services provided as standard to all leased
premises in the Building, which Additional Services are more specifically
described and defined in Section 7 above.

 

54.03       Landlord
may allocate between the Enclosed Shopping Mall area and the remainder of the
Building, Taxes and the other Operating Expenses as it deems appropriate. If
parts of the Building are leased partly for retail use and partly for general
office use, Landlord may allocate Taxes and the other Operating Expenses
between the office space users and the retail space users as it deems
appropriate. In determining the amount of Operating Expenses for each Calendar
Year, if less than 95% of the rentable office area of the Building shall have
been occupied at any time during such Calendar Year, Operating Expenses shall
be deemed for such Calendar Year to be in the amount reasonably determined by
Landlord to be equal to that amount of like expenses which normally would be
expected to be incurred had such occupancy been 95% throughout such Calendar
Year. If Landlord shall not be furnishing any particular work or service (the
cost of which, if furnished by Landlord would be included in Operating
Expenses) to a tenant who undertakes to itself perform or obtain such work or
service in lieu of the furnishing thereof by Landlord, Operating Expenses shall
be deemed for purposes of this Section 54 to be increased by an amount equal to
the additional Operating Expenses, as reasonably determined by Landlord, which
would have been incurred during such period if Landlord had at its own expense
furnished such work or service to such tenant.

 

54.04       (a)           Landlord may, from time
to time, compute and furnish Tenant with a bona fide estimate of the Operating
Expenses for the current or ensuing Calendar Year and the Proportionate Share
of Operating Expenses and Additional Services Charge for such Year; provided,
however, that such estimate shall not constitute any representation or
assurance by Landlord of the amount that the actual Operating Expenses or
Additional Services Charge for such year will be. Thereafter, Tenant shall pay
to Landlord, on the first day of each month, together with payments of Rent,
one-twelfth (1/12th) of Landlord’s estimate of the Proportionate Share of
Operating Expenses for that Calendar Year. With reasonable promptness after the
expiration of each Calendar Year, Landlord shall furnish Tenant with a
statement (hereinafter called Landlord’s Expense Statement), setting forth in
reasonable detail the Operating Expenses for such Calendar Year, the
Proportionate Share of Operating Expenses for such Calendar Year, and
Additional Services Charge. If the Proportionate Share of Operating Expenses
and Additional Services Charge for such Calendar Year exceeds the amount
previously paid by Tenant on account of Landlord’s estimate of such expenses,
Tenant shall pay to Landlord the full amount of such excess within fifteen (15)
days after receipt of Landlord’s Expense Statement. If the total amount paid by
Tenant on account of Landlord’s estimate exceeds the Proportionate Share of
Operating Expenses and Additional Services Charge, such excess shall be
credited against the next installment of the Proportionate Share of Operating
Expenses and Additional Services Charge.

 

(b)           Notwithstanding
the foregoing, if Landlord is required to pay an amount which it is entitled to
collect from the tenants of the Building, more frequently than required as of
the Commencement Date or if Landlord is required to prepay any such amount, or
if adjustments to the normal rate for any electric, gas or water utility bill
or utility charge

 

37

 

applicable during the first
year of the Term, Tenant shall pay to Landlord upon demand Tenant’s
Proportionate Share of such amount calculated in accordance with this Lease.

 

54.05       If
the Expiration Date fixed for this Lease shall occur on a date other than the
end of a Calendar Year, the Proportionate Share of Operating Expenses for such
year shall be prorated according to the ratio that the number of days in such
Calendar Year during which the Term was in effect bears to 365; provided
however, Landlord may, pending the determination of Operating Expenses for such
year, furnish Tenant with a statement of estimated Operating Expenses and the
Proportionate Share thereof for such partial Calendar Year. Within fifteen (15)
days after receipt of such statement, Tenant shall remit to Landlord, as
Additional Rent, the amount of the Proportionate Share of Operating Expenses as
shown on Landlord’s statement, together with any Additional Services Charge
which may be due. After the Operating Expenses and Additional Services Charge
for such Calendar Year have been finally determined and Landlord’s Expense
Statement has been furnished to Tenant pursuant to Section 54.04, if there
shall have been an underpayment by Tenant of the Proportionate Share of
Operating Expenses or Additional Services Charge, Tenant shall remit the amount
of such underpayment to Landlord within fifteen (15) days after receipt of such
statement, and if there shall have been an overpayment, Landlord shall remit
the amount of such overpayment to Tenant within fifteen (15) days after the
issuance of such statement, provided that Tenant is not in default under this
Lease. The expiration or termination of this Lease shall not terminate or
impair Tenant’s obligation to pay the Proportionate Share of Operating Expenses
or the Additional Services Charge for the Calendar Year in which the Term ends.

 

54.06       Any
statement furnished to Tenant by Landlord under the provisions of this Article
54 shall constitute a final determination as between Landlord and Tenant as to
the rent set forth therein due from Tenant for the period represented thereby,
unless Tenant, within one hundred twenty (120) days after such statement is
furnished, shall give a notice to Landlord that it disputes the correctness
thereof, specifying in detail the basis for such assertion. Pending resolution
of such dispute, Tenant shall pay all disputed amounts in accordance with the
statement furnished by Landlord. Landlord agrees, upon prior written request,
during normal business hours to make available for Tenant’s inspection, at
Landlord’s offices, Landlord’s books and records which are relevant to any
items in dispute, provided Tenant has paid all amounts billed to Tenant on
account of Tenant’s Proportionate Share of Operating Expenses and Additional
Services Charge.

 

54.07       Tenant
and its permitted concessionaires, officers, employees, agents, customers and
invitees shall have the nonexclusive right, in common with Landlord and all
others to whom Landlord has or may hereafter grant rights, to use the Common
Areas as designated from time to time by Landlord, subject to such reasonable
regulations as Landlord may from time to time impose. Tenant agrees to abide by
such regulations and to cause its officers, Employees, agents, customers and
invitees to conform thereto. Landlord may at any time close temporarily any
Common Areas to make repairs or changes, to prevent the acquisition of public
rights therein, and may do such other acts in and to the Common Areas as, in
its judgment, may be desirable to improve the convenience thereof.

 

38

 

55.          HAZARDOUS MATERIALS

 

55.01       Tenant
shall not store highly flammable materials or goods, explosives, perishable
foodstuffs, contraband, live animals, materials or goods which emit odors in or
upon the Leased Premises. The Tenant covenants that it shall not store, use or
possess nor permit the storage, use or possession of any Hazardous Substance
(hereinafter defined) upon the Leased Premises. Hazardous Substance for
purposes of this Lease shall mean, without limitation, any flammable
explosives, radon, radioactive materials, asbestos, urea-formaldehyde foam insulation,
polychlorinated biphenyls, petroleum and petroleum based products, methane,
hazardous materials, hazardous wastes, hazardous or toxic substances or related
materials, as defined in the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended, 42 U.S.C. Sections 9601, et seq.
(including the so-called “Superfund” amendments thereto); the Toxic Substances
Control Act, as amended, 15 U.S.C. Sections 2601, et seq.; the Resource
Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Sections 6901, et
seq.; the Hazardous Materials Transportation Act, as amended, 49 U.S.C.
Sections 5101, et seq. (formerly 49 U.S.C. 1801, et seq.); or any other similar
law, rule, regulation or statute concerning the protection of the environment
(collectively “Environmental Laws”). Tenant hereby covenants and agrees, at its
sole cost and expense, to indemnify, protect and defend and save harmless the
Landlord and any of its members, managers, employees and agents from and
against any and all damages, losses, liabilities, obligations, penalties,
claims, litigation, demands, defenses, judgments, suits, actions, proceedings,
costs, disbursements and expenses (including, without limitation, attorneys’
and experts’ fees, expenses and disbursements) of any kind or nature whatsoever
which may at any time be imposed upon, incurred by or asserted or awarded
against the Landlord, its members, managers, agents or employees relating to,
resulting from or arising out of Tenant’s failure to comply with its
obligations under the foregoing section or Tenant’s violation of any
Environmental Law with respect to its use of the Leased Premises.
Notwithstanding any provision contained in this Lease to the contrary, the
indemnification provisions set forth in this Section 55.01 shall survive any
expiration or termination of this Lease.

 

56.          TELEPHONE AND TELECOMMUNICATIONS
SERVICE

 

56.01       (a)           Tenant acknowledges and
agrees that all telephone and telecommunications services (“Telecommunications
Services”) desired by Tenant shall be ordered and utilized at the sole expense
of Tenant. Unless Landlord otherwise requests or consents in writing, all
equipment, apparatus and devices, including without limitation wiring and
cables, for the provisions of Telecommunications Services (the
“Telecommunications Equipment”) shall be and remain solely in the Leased
Premises. Unless otherwise specifically agreed in writing, Landlord shall have
no responsibility for the maintenance of Tenant’s Telecommunications Equipment,
nor for any wiring or other infrastructure to which Tenant’s Telecommunications
Equipment may be connected. Tenant agrees that, to the extent any
Telecommunications Services are interrupted, curtailed or discontinued,
Landlord shall have no obligation or liability with respect thereto and it
shall be the sole obligation of Tenant, at its sole expense, to obtain
substitute service.

 

(b)           Landlord
shall have the right, upon such notice as is practicable in the case of
emergencies, and otherwise upon reasonable prior notice to Tenant, to interrupt
or turn off telecommunications facilities in the event of emergency or as
necessary in connection with

 

39

 

repairs to the Building or
installation of telecommunications equipment for other tenants of the Building.

 

(c)           Any
and all Telecommunications Equipment installed in the Leased Premises, or
elsewhere in the Building by or on behalf of Tenant, including wiring and other
facilities for the provision of Telecommunications Services, shall be removed
by Tenant upon the expiration or earlier termination of the Term of this Lease,
by Tenant at its sole expense or, at Landlord’s election, by Landlord at
Tenant’s sole expense, with the cost thereof to be paid as Additional Rent
under this Lease.

 

(d)           If
the Telecommunications Equipment is not removed within thirty (30) days of the
termination or expiration of this Lease, the Telecommunications Equipment shall
conclusively be deemed to have been abandoned and may be removed, appropriated,
sold, stored, destroyed, otherwise disposed of, or retained and used, by
Landlord without notice to Tenant, without obligation to account therefor, and
without payment to Tenant or credit against any amount due from Tenant to
Landlord pursuant to this Lease. Tenant shall pay to Landlord upon demand all
costs of any such removal, disposition and storage of the Telecommunications
Equipment, as well as all costs to repair any damage to the Building caused by
such removal.

 

(e)           In
the event that Tenant wishes at any time to utilize the services of a telephone
or telecommunications provider whose equipment is not then servicing the
Building (a “New Provider”), no such New Provider shall be permitted to install
its lines or other equipment within the Building without first securing the
prior written approval of the Landlord, which approval may be withheld in
Landlord’s sole and absolute discretion. Landlord’s approval shall not be
deemed any kind of warranty or representation by Landlord, including, without
limitation, any warranty or representation as to the suitability, competence or
financial strength of the New Provider. Without limitation of Landlord’s right
to withhold consent in its sole and absolute discretion, Landlord may refuse to
give its approval unless all of the following conditions are satisfied: (i)
Landlord shall incur no expense whatsoever with respect to any aspect of the
New Provider’s provision of its services, including, without limitation, the
costs of installation, materials and services; (ii) prior to commencement of
any work in or about the Building by the New Provider, the New Provider shall
supply Landlord with such written indemnities, insurance, financial statements,
and such other items as Landlord, in its sole and absolute discretion,
determines to be necessary to protect its financial interests and the interests
of the Building related to the proposed activities of the New Provider; (iii)
the New Provider agrees in writing to abide by such rules and regulations,
building and other codes, job site rules and such other requirements as are
determined by Landlord, in its sole and absolute discretion, to be necessary to
protect the interest of the Building, the tenants in the Building and Landlord;
(iv) Landlord determines, in its sole and absolute discretion, that there is
sufficient space in the Building for the placement of all of the New Provider’s
equipment and materials; (v) Landlord receives from the New Provider such
compensation as is determined by the Landlord, in its sole and absolute
discretion, to compensate it for space used in the Building for the storage and
maintenance of the New Provider’s equipment, for the fair market value of the
New Provider’s access to the Building, and any costs which may be expected to
be incurred by Landlord; and (vi) all of the foregoing matters are documented
in a written agreement between Landlord and the New Provider, the form and
content of which are satisfactory to Landlord in its sole and absolute
discretion.

 

40

 

(f)            Notwithstanding
any provision of the preceding subsection to the contrary, the refusal of
Landlord the grant its approval to any New Provider shall not be deemed a
default or breach by Landlord of its obligation under this Lease, and in no
event shall Tenant have the right to terminate this Lease or claim entitlement
to rent abatement for Landlord’s refusal to grant Tenant’s request for approval
of a New Provider. The provisions of this Section 56.01 maybe enforced solely
by Tenant and Landlord and are not for the benefit of any other party.
Specifically, but without limitation, no telephone or telecommunications
provider is intended to be, nor shall be deemed, a third party beneficiary of
this Lease.

 

(g)           Tenant
shall not utilize any wireless communications equipment (other than usual and
customary cellular telephones), including antenna and satellite receiver
dishes, within the Leased Premises or the Building, without Landlord’ prior
written consent. Such consent shall be granted only in the sole and absolute
discretion of the Landlord, and shall be conditioned in such a manner, in
Landlord’s sole and absolute discretion, so as to protect Landlord’s financial
interests and the interests of the Building, and the other tenants therein.

 

57.          TRANSFER OF LANDLORD’S INTEREST

 

57.01       Notwithstanding
anything contained herein to the contrary, Tenant agrees that neither Landlord
nor any partner in Landlord, nor any other person having any interest, direct
or indirect, immediate or more removed than immediate, in Landlord, shall have
any personal liability with respect to any of the provisions of this Lease and
Tenant shall look solely to the estate and property of Landlord in the Property
for the satisfaction of Tenant’s remedies, including without limitation, the
collection of any judgment or the enforcement of other judicial process
requiring the payment or expenditure of money by Landlord, subject, however, to
the prior rights of any holder of any mortgage covering all or part of the
Property, and no other assets of Landlord or its partners, or of any other
aforesaid person having an interest in Landlord, shall be subject to levy,
execution or other judicial process for the satisfaction of Tenant’s claims.
Without limitation of the foregoing, upon each transfer of the Building and the
Landlord’s interest in this Lease, the transferor shall automatically be
released from all liability and obligations under this Lease.

 

58.          TIME IS OF THE ESSENCE

 

58.01       Time
is of the essence hereof.

 

59.          ADDITIONAL PROVISIONS

 

59.01       Warranty
Disclaimer. LANDLORD AND TENANT EXPRESSLY DISCLAIM ANY IMPLIED WARRANTY
THAT THE LEASED PREMISES ARE SUITABLE FOR TENANT’S INTENDED COMMERCIAL PURPOSE,
AND, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN, TENANT’S OBLIGATION TO PAY
RENT HEREUNDER IS NOT DEPENDENT UPON THE CONDITION OF THE LEASED PREMISES OR
THE PERFORMANCE BY LANDLORD OF ITS OBLIGATIONS HEREUNDER, AND, EXCEPT AS
OTHERWISE EXPRESSLY PROVIDED HEREIN, TENANT SHALL CONTINUE TO PAY THE RENT,
WITHOUT ABATEMENT, SETOFF

 

41

 

OR DEDUCTION, NOTWITHSTANDING
ANY BREACH BY LANDLORD OF ITS DUTIES OR OBLIGATIONS HEREUNDER, WHETHER EXPRESS
OR IMPLIED.

 

59.02       Waiver of Trial
by Jury. LANDLORD AND TENANT SHALL, AND HEREBY DO, WAIVE TRIAL BY JURY
IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES
HERETO AGAINST THE OTHER ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY
CONNECTED WITH THE LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE
OR OCCUPANCY OF THE LEASED PREMISES, AND ANY EMERGENCY STATUTORY OR ANY OTHER
STATUTORY REMEDY.

 

59.03       Force Majeure.
Other than for Tenant’s obligations under this Lease that can be performed by
the payment of money (e.g., payment of Rent and maintenance of insurance),
whenever a period of time is herein prescribed for action to be taken by either
party hereto, such party shall not be liable or responsible for, and there
shall be excluded from the computation of any such period of time, any delays
due to strikes, riots, acts of God, shortages of labor or materials, war,
governmental laws, regulations, or restrictions, or any other causes of any
kind whatsoever which are beyond the control of such party.

 

59.04       Waiver
of Damages. Notwithstanding any provision of this Lease to the contrary,
Tenant hereby waives any right it may have to claim and/or recover
consequential damages resulting from or relating to any default by Landlord in
meeting its obligations under this Lease.

 

IN WITNESS WHEREOF, Landlord and Tenant, intending to be legally bound
hereby, have executed this Agreement of Lease as of the day and year first
above written.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  DENVER PLACE ASSOCIATES LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Amerimar Realty Management Co.-Colorado

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Amerimar Realty Management Co.-

  Pennsylvania, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  ARC-Management Co., Inc., its

  general partner

  
	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   By

  	
  /s/ David G. Marshall

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  David G. Marshall, President

  	
   

  
										

 

42

 

	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
   ESCHELON TELECOM OF COLORADO, INC., a

   Minnesota corporation

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By

  	
  /s/ Geoffrey M. Boyd

  	
   

  
	
   

  	
   

  	
  Geoffrey Boyd, Chief Financial Officer

  
						

 

43

 

TELECOMMUNICATIONS
ADDENDUM

 

THIS TELECOMMUNICATIONS ADDENDUM (this “Addendum”), made as of the day
of November, 2000, is between DENVER PLACE ASSOCIATES LIMITED PARTNERSHIP, a
Delaware limited partnership (“Landlord”) and ESCHELON TELECOM OF COLORADO,
INC., a Minnesota corporation (“Tenant”). Landlord and Tenant have executed
simultaneously with this Addendum that certain Lease (the “Lease”) pertaining
to certain space in the building commonly known as Denver Place (the
“Building”) and located at 999 18th Street, Denver, Colorado 80202. In the
event of any conflict between the provisions of this Addendum and the
provisions of the other portions of the Lease, the provisions of this Addendum
shall control. The capitalized terms used herein and not defined herein shall
have the same meanings used in the other portions of the Lease. Landlord and
Tenant hereby agree that the Lease is amended and supplemented as follows:

 

60.          BACKUP
POWER GENERATOR

 

60.01       Tenant
shall have the right, subject to the provisions of this Article 60 and the
provisions of Article 63, to install upon the roof of the Building’s South
Terrace (“South Terrace Roof”) a backup electrical power generator and related
equipment (collectively, the “Generator”), and to run fuel lines (which shall
be included as part of such related equipment) to Landlord’s 1000 gallon diesel
fuel storage tank located in the parking garage underneath the Building, as
designated by Landlord. Tenant shall be pay all fuel costs and shall be
responsible for the repair and maintenance of such fuel storage tank during the
Term. Commencing on the date of the fifth (5th) anniversary of the
Commencement Date, Tenant shall pay, as Additional Rent to Landlord, on the
first day of each month with Tenant’s payment of Base Rent, Five Hundred and
No/100 Dollars ($500.00).

 

60.02       The
location of the Generator shall be determined by agreement between Landlord and
Tenant.

 

61.          RECEIVING
ANTENNA

 

61.01       Tenant
shall have the right, subject to the provisions of this Article 61 and the
provisions of Article 63, to install upon the roof of the Building an eighteen
inch (18”) GRP receiving antenna (the “Antenna”). Tenant may install and
operate the Antenna for no Additional Rent.

 

61.02       The
location of the Antenna on the Building’s roof shall be determined by agreement
between Landlord and Tenant.

 

62.          ADDITIONAL
SECURITY

 

62.01       Tenant
may install, at its sole expense, a separate card reader security system (the
“Additional Security System”) for the Leased Premises in addition to any
security already provided by Landlord.

 

 

62.02       The
operation of the Additional Security System shall not interfere with the
operations of any security system or systems that the Landlord is providing to
the Building, or any part thereof, or may provide to the Building, or any part
thereof, in the future. In the event that Landlord determines that the
operation of the Additional Security System does so interfere with the
operations of any other security system in the Building, the provisions of this
Article 62 shall immediately terminate, upon notice to Tenant, and Tenant shall
remove the Additional Security System. If the Additional Security System is not
so removed, the Additional Security System shall conclusively be deemed to have
been abandoned and may be removed, appropriated, sold, stored, destroyed or
otherwise disposed of by Landlord without notice to Tenant and without
obligation to account therefor. Tenant shall pay to Landlord upon demand all
costs of such removal, disposition, storage and repair of any damage to the
Building caused by such removal.

 

63.          PROVISIONS
APPLICABLE TO GENERATOR, ANTENNA AND ADDITIONAL SECURITY SYSTEM

 

63.01       Tenant
agrees to provide information regarding the characteristics of the Generator,
the Antenna and/or the Additional Security System as Landlord may reasonably
require from time to time upon thirty (30) days’ written notice; provided,
however, that Tenant shall not be required to disclose any information which it
deems in its reasonable discretion to be confidential or proprietary. Prior to
installation of the Generator and the Antenna, Tenant shall obtain Landlord’s
prior written approval of the installation plan and specifications for each,
which approval shall not be unreasonably withheld or delayed.

 

63.02       Tenant
agrees that at the time of installation and at all times thereafter, the
installation, maintenance, operation, manner of use, and removal of the
Generator, the Antenna and the Additional Security System shall conform in all
respects with all applicable federal, state and local laws, ordinances and
regulations. Before installation of the Generator, the Antenna and the
Additional Security System is completed, and thereafter from time to time as
may be reasonably required by Landlord, Tenant shall submit to Landlord such
evidence of compliance with the foregoing laws and regulations for each, as
Landlord may require.

 

63.03       Tenant
shall at its sole expense install and maintain the Generator and the Antenna in
safe condition and good repair. Tenant agrees that it shall be liable to
Landlord for any damage to the South Terrace Roof, the Building roof or any
other part of the Building resulting from the maintenance, use, operation, or
removal of the Generator and/or the Antenna and from the cost and expense of
any and all repairs, replacements and other work which the party liable on the
existing roof bond of warranty may refuse to do or pay for by reason of the
installation, operation, maintenance, use, or removal of the Generator and/or
the Antenna.

 

63.04       Tenant
agrees to comply with all reasonable requirements of Landlord as to the mariner
of installation, operation, maintenance, use, and removal of the Generator, the
Antenna and the Additional Security System including, without limitation,
requirements concerning noise levels, insulation, fueling and venting of the
Generator..

 

63.05       Except
in the case of emergencies, during which Tenant shall give such notice as is
practicable, Tenant agrees to notify Landlord’s building manager during Normal
Business

 

2

 

Hours and at least four (4)
hours prior to any occasion upon which Tenant or any of its employees or agents
intend to go upon the South Terrace Roof or the Building roof.  Tenant shall at all times comply with all such
other reasonable safety and security requirements as may be prescribed by
Landlord with respect to access to the South Terrace Roof and the Building
roof.

 

63.06       Landlord
shall have the right to make any repairs and to do work, including, without
limitation, any repairs and/or work relating to waterproofing, in and about the
area where the Generator and the Antenna are located, which Landlord deems
necessary to protect the Building. Tenant agrees that it will reimburse
Landlord, upon demand, for the cost of such repairs which, in Landlord’s
reasonable judgment, are required due to the Generator’s and/or the Antenna’s
installation, use, operation, relocation or maintenance, such reimbursement to
be made within thirty (30) days after Landlord’s delivery of a statement to
Tenant.

 

63.07       Tenant
agrees to indemnify, defend and hold Landlord harmless from all demands,
damages, losses, costs (including reasonable attorneys’ fees) and claims of any
injury to any person or damage to any property which arise by reason of
Tenant’s installation, use, operation, maintenance, relocation of the
Generator, the Antenna and/or the Additional Security System.

 

63.08       In
the event that installation, maintenance, or operation of the Generator, the
Antenna and/or the Additional Security System is in violation of any applicable
code, permit, license, rule, regulation, statute or other provision of any
federal, state, county, municipal or other governmental authority, the
provisions of this Article 60 shall immediately terminate, upon notice to
Tenant, and Tenant shall remove the Generator, the Antenna and/or the
Additional Security System, as applicable, from its location. If the Generator,
Antenna and/or the Additional Security System, as applicable, is not so
removed, the Generator, Antenna and/or the Additional Security System, as
applicable, shall conclusively be deemed to have been abandoned and may be
removed, appropriated, sold, stored, destroyed or otherwise disposed of by
Landlord without notice to Tenant and without obligation to account therefor.
Tenant shall pay to Landlord upon demand all costs of such removal,
disposition, storage and repair of any damage to the Building caused by such
removal.

 

63.09       The
provisions and requirements of Article 22 of the Lease shall apply to work done
or caused to be done with respect to the Generator, the Antenna and the
Additional Security System.

 

63.10       There
shall be no allowance or abatement of rent to Tenant solely by reason of
inconvenience, annoyance or injury to or interruption of operation of the
Generator, the Antenna and/or the Additional Security System arising from
Landlord, Tenant or others making repairs, restorations, replacements,
alterations, additions or improvements to or on the Building, or for the
failure of any tenant of the Building, to make repairs.

 

63.11       Tenant
shall neither hold nor attempt to hold Landlord or its agents or employees
liable for, and Tenant shall hold harmless and indemnify Landlord and its
agents and employees from and against any and all demands, claims, causes of
action, liabilities or judgments, and any and all fees and expenses (including,
without limitation, attorneys’ fees) incurred by Landlord in investigating and
resisting the same, arising from the death or injury of any person, including,

 

3

 

without limitation, any agent
employee, contractor and any other person in or about the Building, or from
damage to any property, including, without limitation, the Building or any
adjacent property or the property of any tenant or user of the Building, in
connection with or arising out of the Generator, the Antenna and/or the
Additional Security System or the installation, presence, maintenance, repair,
alteration, use, operation, or removal of the Generator, the Antenna and/or the
Additional Security System or the interruption of operation of the Generator,
the Antenna and/or the Additional Security System from any cause other than the
gross negligence of Landlord. In addition, Tenant shall, at its own expense,
and upon demand of Landlord, defend any and all suits, arbitrations or other
proceedings brought or instituted by third parties against Landlord, its agents
or employees on such claim, demand or cause of action.

 

63.12       Tenant
shall, at its own expense, maintain (i) insurance as required by and in
compliance with all Workmen’s Compensation Insurance and Laws of the State of
Colorado, and (ii) public liability insurance for claims for personal injury or
death or property damage in connection with or arising out of the Generator and
the Antenna or the installation, presence, maintenance, repair, alteration,
operation or removal of the Generator and the Antenna, with limits of
$1,000,000 for death or injury to one person, $3,000,000 for death or injury to
more than one person and $1,000,000 for property damage. Tenant shall, prior to
installation or relocation of the Generator and the Antenna and thereafter at
Landlord’s request, furnish Landlord with certificates of all insurance to be
maintained by Tenant, by insurance companies qualified to do business in the
State of Colorado, with respect to the Generator and the Antenna. All policies
shall name the following entities as additional insureds; (i) Amerimar Realty
Management Co.-Colorado, (ii) Denver Place Associates Limited Partnership,
(iii) Denver-Stellar Associates Limited Partnership, and (vi) any other
affiliate of Landlord that Landlord may designate in writing from time to time.
All policies shall contain a clause or endorsement to the effect that they
cannot be terminated or materially amended except after thirty (30) days’
written notice thereof to all additional insureds. All property damage policies
written on behalf of Tenant shall contain a waiver of any subrogation rights
which Tenant’s insurers may have against Landlord and against those for whom
Landlord is, in law, responsible, whether any such damage is caused by the act,
omission or fault of Landlord or by those for whom Landlord is, in law,
responsible.

 

63.13       Tenant
shall pay Landlord for all charges for electrical current used by the
Generator, the Antenna and the Additional Security System. If necessary to
ascertain the specific charges attributable to the Generator, the Antenna and
the Additional Security System, Landlord shall provide and Tenant shall install
a separate electrical line to service the Generator, the Antenna and/or the
Additional Security System and Tenant shall immediately pay all costs incurred
in connection with such installation or relocation. The provisions of Article 7
shall apply to such charges and to Landlord’s failure to supply electrical
current for the operation of the Generator, the Antenna and/or the Additional
Security System.

 

63.14       Upon
the termination of this Lease or upon Landlord’s request at any time that the
Generator, the Antenna and/or the Additional Security System be removed in
accordance wit the provisions of this Addendum, Tenant shall promptly remove
the Generator, the Antenna and/or the Additional Security System and any
damage, holes or penetrations shall be promptly repaired by Tenant to
Landlord’s satisfaction.

 

4

 

63.15       All
other relevant provisions of the Lease shall apply to the Generator, the
Antenna and the Additional Security System.

 

63.16       Removal
of the Generator, the Antenna and/or the Additional Security System upon
termination or expiration of the Lease shall not release Tenant from any
liability or obligation hereunder which may have accrued or may be accruing at
the time of the renewal or termination or expiration, all of which shall
survive such removal or termination or expiration.

 

63.17       The
provisions of Article 60 through this Article 63 shall not be deemed to grant
any exclusive rights to Tenant, and Landlord shall have the right to enter into
agreements permitting the installation of other equipment or facilities on the
South Terrace Roof and/or the Building’s roof.

 

63.18       Tenant
may run the Generator in order to test its operations only on Saturdays between
the hours of 9:00 a.m. and 11:00 a.m., and subject to the provisions of
Sections 63.04 and 63.05.

 

64.          CONDUIT

 

64.01       Tenant
may core drill through the floor of the Leased Premises to install
telecommunications conduits (individually a “Conduit” and collectively the
“Conduits”) for the purpose of connecting with existing or future
telecommunications carrier systems in the Building and/or located beneath the
public streets adjacent to the Real Property. Each Conduit shall not exceed
four inches (4”) in diameter and shall be installed only in such locations
within the Building as designated by Landlord.

 

64.02       Tenant
shall have the right, subject to the availability of riser space in the
Building, to provide telecommunication services to other tenants of the
Building. Tenant shall provide Landlord written notice of its intent to so
provide telecommunication services to other tenants of the Building, which
notice shall include, without limitation, the amount of Building riser space
Tenant requires to provide such telecommunication services. If, after receipt
of such notice, Landlord determines that there is sufficient Building riser
space available to accommodate Tenant’s needs, Landlord and Tenant shall enter
into an amendment to the Lease setting forth the amount of Additional Rent
Tenant shall pay to Landlord for the exercise of its right to provide
telecommunications services to other tenants of the Building and such other
terms and conditions relative to Tenant’s providing telecommunication services
to other tenants of the Building to which Landlord and Tenant may agree.

 

65.          REMOVAL
OF EQUIPMENT.

 

Notwithstanding any provisions of the Lease or this Addendum to the
contrary, upon termination of the Lease, for any reason other than a default by
Tenant, Tenant shall have the right to remove from the Leased Premises the
Building’s roof and the South Terrace Roof all of its electronic, electrical
and mechanical equipment (the “Equipment”) installed and/or use by Tenant for
its operations, including, without limitation, the Generator, the Antenna, the
Conduits, the Additional Security System, meter(s) to meter power use, DMS
switching, DACS, electrical transfer panels, electrical distribution panels,
HVAC equipment, cross-connect panels, and data equipment. Such removal shall be
at Tenant’s sole cost and expense and Tenant shall fully repair

 

5

 

and restore the Leased
Premises, the Building roof and South Terrace Roof and other occupied areas to
the same or a better condition that prior to the Lease, ordinary wear and tear
excepted. Tenant shall be provided a commercially reasonable period of time to
accomplish such removal and obtain all permits required in connection with such
removal, and Tenant shall continue to pay Rent until such removal is complete.
Tenant shall properly repair, using Landlord’s roofing contractor, any roof
leaks or other damage or injury to the South Terrace Roof, the Building roof,
the Building or the Leased Premises caused by Tenant’s use of the Leased
Premises, the Building roof and South Terrace Roof or its installation, use,
maintenance or removal of the Equipment. If Tenant does not immediately restore
the Leased Premises, the Building roof and South Terrace Roof or other occupied
areas or repair any such leaks, damage or injury, upon its surrender of the
Leased Premises, the Building roof and South Terrace Roof, Tenant hereby
authorizes Landlord to make such repairs or remove and dispose of the Equipment
and charge Tenant for all costs and expenses incurred in doing so. Tenant
agrees to pay the cost of such maintenance, repair or removal within ten (10)
days of demand therefor by Landlord. Under no circumstances shall Landlord be
liable for any of the Equipment so disposed of or removed by Landlord.

 

66.          CHILLED
WATER COOLING SYSTEM.

 

Tenant shall be entitled to connect to the Building’s chilled water
cooling system (the “Cooling System”). Landlord represents that Cooling System
maintains, twenty-four (24) hours per day and seven (7) days per week, a
temperature of between thirty-eight degrees (38°) Fahrenheit and forty-four
degrees (44°) Fahrenheit during the months of May through October, inclusive,
and a temperature of between forty-five degrees (45°) Fahrenheit and fifty-five
degrees (55°) Fahrenheit during the months of November through April,
inclusive. Tenant shall pay as Additional Rent the amount of Eighty Four and
No/100ths Dollars ($84.00) per ton per month of chilled water provided for
cooling of the Leased Premises, subject to adjustments in price to reflect any
increase in cost to provide such chilled water incurred Landlord during the
Term.

 

67.          LANDLORD
COMPLETION OBLIGATIONS.

 

67.01       On
or before December 15, 2000, Landlord shall, at its sole cost and expense,
provide the Leased Premises “shell” to Tenant, broom clean with sheet rocked
and sanded interior demising walls. Landlord shall repair and finish
mall-facing exterior wall consistent with its standard wall finish. If Landlord
shall, for any reason (including, without limitation, failure to complete the
work, if any, required to be done by Landlord under this Lease) fail to make
available to Tenant possession of the Leased Premises “shell” on or before
December 15, 2000, then Landlord shall pay Tenant on demand, as agreed upon
liquidated damages, Five Hundred and No/100ths Dollars ($500.00) per day for
each day beyond such date that Landlord’s work is not completed and Tenant is
delayed in or prevented from taking possession of the Leased Premises “shell”
in accordance herewith, exclusive of immaterial punch list work. Landlord and
Tenant agree that the above amount is a reasonable estimate of the damages
Tenant would sustain if the completion of Landlord’s work is delayed, and that
it is not and shall not be construed as a penalty. Tenant may, at Tenant’s
option, deduct the amount, if any, due from Landlord under this Article from
the initial Rent payment(s) otherwise due hereunder. In addition, if Landlord’s
work is not completed by March 1, 2001, Tenant shall have the right to cancel
the Lease at any time thereafter by forwarding written notice to Landlord at
any time on

 

6

 

or before Tenant receives
notice of completion of the Landlord’s work. Tenant’s obligations to pay Base
Rent and Tenant’s Share of Operating Expenses shall not commence until Landlord
makes possession available; and, except as otherwise set forth in this Section
67.01, such failure to make available to Tenant possession of the Leased
Premises “shell” on or before December 15, 2000 or any other date or to timely
complete any work, shall not in any other way affect the validity or
continuance of this Lease, nor the Term or the obligations of Tenant hereunder.
There shall be no deferral of rent, there shall be no obligation to pay
liquidated damages, and Tenant shall have no right to cancel the Lease,
however, if any such failure is caused in whole or part by any act or omission
of Tenant, its agents, servants, employees or contractors, which has the effect
of hindering or delaying Landlord’s delivery of possession or the timely
completion of any work to be done by Landlord.

 

67.02       On
or before January 1, 2001, Landlord shall, at Tenant’s sole cost and expense,
remove from the Leased Premises “shell” all of the existing wet pipe fire
protection system (the “Existing Fire System”) in the Leased Premises. If
Landlord shall, for any reason (including, without limitation, failure to
complete the work, if any, required to be done by Landlord under this Lease)
fail to so remove the Existing Fire System on or before January 1, 2001 the
provisions of Section 67.01 shall apply.

 

67.03       On
or before January 1, 2001, Landlord shall have 800 Amps, 480 VAC, 3 phase power
available to the Leased Premises. If Landlord shall, for any reason (including,
without limitation, failure to complete the work, if any, required to be done
by Landlord under this Lease) fail to have such power available to the Leased
Premises on or before January 1, 2001, the provisions of Section 67.01 shall
apply.

 

67.04       Landlord
shall provide to Tenant, on or before ten (10) days after the mutual execution
of the Lease and this Addendum by Landlord and Tenant, a schedule of the start
and completion dates of all construction and demolition activities that
Landlord is required to complete pursuant to the provisions of this Article 67.

 

67.05       Landlord’s
project manager assigned to work with Tenant relative to the performance and
completion of Work (hereinafter defined) shall be Jean McDonald, who may be
contacted at Landlord’s address, as set forth in Article 40 of the Lease.

 

68.          TENANT’S
COMPLETION OBLIGATIONS.

 

68.01       Tenant
shall be responsible, at its sole cost and expense, for the construction and
installation (including, without limitation, hanging from the interior walls
and/or the ceiling of the Leased Premises) of the Equipment and any related
work (the “Work”). Tenant may undertake necessary Work provided that such Work
is approved in writing by Landlord, such approval not to be unreasonably
withheld or delayed, and is otherwise in accordance with the conditions and
limitations set forth in this Article 68.. If Landlord does not provide to
Tenant its written approval or such Work within seven (7) business days after
receipt of Plans (hereinafter defined), such Plans (hereinafter defined) shall
be deemed approved by Landlord. Tenant agrees that, except as provided in
Article 67, Landlord is under no obligation to perform any Work or provide any
labor or materials to prepare, modify or alter the Leased Premises or the
Building for Tenant. All Work shall be completed in accordance with the plans
and specifications which have

 

7

 

been previously submitted to
and approved in writing by Landlord in accordance with the provisions of this
Article 68. At any time prior to the Commencement Date, and upon reasonable
notice to Landlord, Tenant and its contractors shall have the right to enter
the Leased Premises for the purposes of measuring the Leased Premises, provided
that such operations do not interfere with Landlord’s completion of its work in
the Leased Premises. Any entry by Tenant for the purpose of measuring the
Leased Premises shall not be deemed an acceptance of the Leased Premises by
Tenant.

 

68.02       Prior
to undertaking any Work, Tenant, at its sole cost and expense, shall cause the
preparation of and submit to Landlord plans and specifications for the
installation of the Equipment and location of all components thereof,
including, without limitation, a diagram of all other telecommunications and
other transmitting and receiving equipment installed on the Leased Premises,
the Building roof and/or the South Terrace Roof at the time of such
installation, and all aspects of the Work (the “Plans”). The Plans shall be
reviewed by Landlord or such other architects or engineers as selected by
Landlord in its reasonable discretion. Under no circumstances shall the Plans
include modifications to the Building’s structural components or utility
systems. Within fifteen (15) days after completion of the Work, Tenant shall
provide Landlord with revised Plans showing, without limitation, the location
of all cables, lines, conduit, and interduct actually installed by Tenant.
Landlord acknowledges that the Work will include the installation of a
telecommunications ground from Tenant’s switching room, cable ladders hung from
the ceiling of the Leased Premises having a load capacity not to exceed ten
(10) pounds per square foot of rack space, and, subject to the approval of
Landlord’s Building engineer, cable ladders hung from Building support columns
having a load capacity not to exceed twenty-five (25) pounds per square foot of
rack space. Subject to Landlord’s right to review the Plans, Tenant shall have
the right to construct a protective barrier along the exterior wall of the Leased
Premises facing the street.

 

68.03       Tenant
acknowledges and agrees that Landlord’s review of the Plans shall be solely for
Landlord’s own benefit and account; by conducting such review or approving the
Plans, Landlord shall not be regarded as undertaking any obligation for the
technical or legal sufficiency, adequacy or safety of the Equipment or the
Work, and Tenant waives and disclaims any such responsibility of Landlord and
hereby assumes all obligations and duties related to such technical and legal sufficiency,
adequacy and safety. Landlord’s approval of the Plans shall not be construed to
limit or abridge Tenant’s obligations under the Lease or this Addendum to any
extent or to limit or abridge Tenant’s indemnifications set forth in the Lease
and this Addendum. Neither the approval of Landlord of the Plans nor Landlord’s
supervision or monitoring of any installation shall constitute any warranty by
Landlord to Tenant of the adequacy of the design for Tenant’s intended use, or
the proper performance of the Equipment, or compliance with any law.

 

68.04       Tenant,
at its sole cost and expense, shall obtain and provide copies to Landlord of
all requisite building permits and other governmental approvals prior to any
and all consents that may be required therefor from private parties undertaking
any part or all of the Work. Without limitation on the generality of the
foregoing, Tenant acknowledges that Tenant shall be solely responsible for
securing all licenses and approvals, whether governmental, quasi-governmental
or private in nature, which are requisite to providing connections and related
facilities for the Equipment at any locations away from the Building
(including, without limitation, any public rights-of-way) or otherwise required
in connection with the Work.

 

8

 

Furthermore, Tenant shall bear
all risks associated with any revocability of those licenses and approvals, and
Landlord shall have no obligation or duty to Tenant in connection therewith.

 

68.05       Tenant
shall cause all Work to be undertaken and completed and the Equipment
maintained in a good, safe, and workmanlike manner consistent with the highest
construction standards, in conformity with the approved Plans and in compliance
with all applicable laws, rules and regulations and any private restrictions
applicable to the Work. Tenant will perform the Work in such a manner as to not
unreasonably interrupt the Building’s normal operations and will repair any
damage that the Work causes to the Building or any property located therein
such that the same is in as good or better condition than existed immediately
prior to the time of any damage. Furthermore, Tenant shall schedule the Work at
such times and take such other measures and precautions as Landlord may require
in order to avoid or minimize any interference with Building operations that
may be caused by the Work. In connection with the Work, Tenant shall not enter
the premises of any tenant or occupant of the Building without that tenant’s or
occupant’s prior written consent. If any of the Work is not performed in
accordance with the foregoing or any other requirements of this Agreement,
Landlord shall have the right, but not the obligation, and without limiting
Landlord’s other remedies for such failure, to correct any non-complying Work
after sending ten (10) days’ notice and right to cure such nonconforming work,
after which Tenant shall reimburse Landlord for all costs and liabilities
incurred in connection therewith by Landlord, including attorneys’ fees. No
notice or opportunity to cure need be given by Landlord if, in Landlord’s
reasonable judgement, a hazardous condition exists or is about to exist.

 

68.06       All
Work shall be at Tenant’s sole cost and expense, and Landlord shall not have
any responsibility or liability therefor. Tenant specifically acknowledges and
agrees that Landlord has and will have no liability to compensate Tenant to any
extent for any value that the Equipment may add or provide to the Building, and
Tenant hereby irrevocably waives all rights that Tenant might otherwise have to
claim any mechanics’ lien or similar encumbrance against the Building in
connection with the Work. Some aspects of the Work (including, without
limitation, the preparation of the Plans) may be undertaken by independent
contractors of Tenant. Tenant shall not permit the attachment or encumbrance of
any mechanics’, materialmen’s, or other lien against the Building or Leased
Premises as a result of the Work or Tenant’s use of the Leased Premises.

 

68.07       Upon
completion of the Work, Tenant shall provide Landlord with all certificates or
other approvals that are legally required to evidence that the Work has been
completed in conformity with all applicable laws. In addition, Tenant shall
furnish Landlord with a certificate (in form and substance satisfactory to
Landlord) that the Work has been completed in conformity with the approved
Plans.

 

68.08       Tenant
shall, at its sole cost and expense, maintain and keep the Equipment and Leased
Premises in good repair, order, and condition, and shall keep the Leased
Premises free from all trash, debris and waste resulting from the use of the
Leased Premises and Equipment. During the Term, Tenant shall promptly and
properly repair, using Landlord’s roofing contractor, any roof leaks or other
damage or injury to the South Terrace Roof, the Building roof, the Building or
the Leased Premises caused by Tenant’s use of the Leased Premises or its
installation, use, maintenance or removal of the Equipment. If, after five (5)
days’ written notice

 

9

 

from Landlord, Tenant does not
repair any such leaks, damage or injury, or does not remove the Equipment when
so required, Tenant hereby authorizes Landlord to make such repairs or remove and
dispose of the Equipment and charge Tenant for all costs and expenses incurred
in doing so. Tenant agrees to pay the cost of such maintenance, repair or
removal within ten (10) days of demand therefor by Landlord.

 

68.09       The
provisions and requirements of Article 22 of the Lease shall apply to work done
or caused to be done with respect to the Equipment.

 

68.10       Tenant
shall pay Landlord, within ten (10) days after receipt of Landlord’s invoice
therefore, a construction management fee in an amount equal to five percent
(5%) of the total amount paid by Tenant to complete the Work. The construction
management fee shall be Additional Rent.

 

68.11       Landlord
and Tenant acknowledge that Tenant shall occupy the Leased Premises during the
construction of the Work. Tenant acknowledges that during construction of the
Work, the Leased Premises will be subject to dust, noise and vibrations, and
Tenant hereby releases Landlord and its agents from any claims, losses or
damages resulting from the construction of the Work. Tenant shall be
responsible for moving its inventory, furniture, files, equipment and other
personal property to permit the construction of the Work.

 

69.          RENEWAL
OPTION.

 

69.01       Tenant
shall have the option to renew (“Renewal Option”) the term of the Lease for one
(1) additional term of five (5) years (“Renewal Term”), commencing upon the
expiration of the initial Term of this Lease, on the condition that Tenant is
not in default of any of its obligations under this Lease at the time Tenant
gives notice of exercise of its Renewal Option or at the time of commencement
of the Renewal Term. Such renewal shall be on all of the terms, covenants and
conditions of this Lease, except: (i) Tenant shall not have any right to
further renewal beyond such additional five-year term; and (ii) the annual Base
Rent for the Leased Premises for the Renewal Term shall be at the prevailing
market rates for office space in the Building comparable to the Leased Premises
at the time the Renewal Term begins. Tenant’s Renewal Option shall be exercised
only by Tenant giving Landlord written notice of Tenant’s election to renew on
or before September 15, 2010, time being of the essence with respect to such
notice. As of the date the Renewal Term begins, this Lease shall be deemed modified
in the manner set forth above, without the necessity of any further agreement
or document; provided, however, that either party to this Lease shall, upon
request of the other party, execute, acknowledge, and deliver an instrument
evidencing such renewal and modification of this Lease.

 

70.          PARKING.

 

Tenant shall be entitled to the use of five unreserved parking spaces
in parking garage located beneath the Building at the prevailing market rate
for such spaces and in accordance with the Parking Agreement attached to the
Lease as Exhibit D.

 

10

 

71.          LANDLORD
DEFAULT.

 

A “Default by Landlord” shall exist if Landlord breaches or fails to
comply with any agreement, term, covenant or condition in this Lease applicable
to Landlord under the Lease and this Addendum and such breach or failure to
comply continues for a period of thirty (30) days after the receipt by Landlord
and by the holder of any mortgage or deed of trust covering the Building,
Building Land, the Property or any portion thereof whose address Tenant has
been notified in writing (a “Landlord’s Mortgagee”), if any, of a written
notice thereof referring to this Article 71 and specifying such failure and
requiring it to be remedied, or, if such breach or failure to comply cannot
reasonably be cured within such thirty (30) day period, if neither Landlord nor
Landlord’s Mortgagee, if any, shall commence to cure such breach or failure to
comply within such thirty (30) day period or shall not proceed therewith to
completion using reasonable diligence after commencement of such cure. In the
event of a Default by Landlord, Tenant may bring a separate action against
Landlord for any claim Tenant may have against Landlord under the Lease. In no
event will Landlord be responsible for any consequential or punitive damages
incurred by Tenant, including, but not limited to, loss of profits or
interruption of business as a result of any Default by Landlord hereunder. In
the event Tenant obtains a judgment (“Judgment”) against Landlord from a court
of competent jurisdiction, Tenant shall have the right to offset rent becoming
due under this Lease after the date of the entry of the Judgment against the
outstanding amount of the Judgment unless Landlord posts a bond with the court
entering the Judgment in an amount which is at least equal to the amount of the
Judgment. Except for any right of offset set forth in this Article 71 or
otherwise in the Lease, Tenant shall have no other right under this Lease to
offset against its obligation to pay rent or any other amounts due to Landlord
under this provision of this Lease.

 

72.          MISCELLANEOUS.

 

72.01       Tenant
shall be entitled to connect its fire protection system to the Building’s
common fire protection panel subject to and in accordance with the provisions
of Article 68.

 

72.02       Notwithstanding
any provisions of the Lease to the contrary, except in the case of an
emergency, Landlord shall provide Tenant with seventy-two (72) hours prior
written or oral notice of all maintenance to the Building that will interrupt
electrical, chilled water, fire protection or other services to the Building.

 

72.03       Notwithstanding
any provisions of the Lease to the contrary, except in the case of an
emergency, Landlord shall give Tenant’s site manager prior written or oral
notice of Landlord’s intent to enter the Leased Premises, provided Tenant has
given Landlord prior written notice of the name, address and telephone number
of such site manager.

 

72.04       Subject
to emergencies and required maintenance and repairs to the Building, Tenant
shall be permitted access to the Leased Premises twenty-four (24) hours per
day, seven (7) days a week.

 

72.05       Tenant
shall provide Landlord with prior written notice of the names of all customers
of Tenant that, from time to time during the Term, collocate with Tenant in the
Leased Premises.

 

11

 

72.06       Landlord
shall use commercially reasonable efforts, consistent with commercially
reasonable efforts that would be expected to be made by a Landlord of a
substantially similar office building located in the downtown Denver, Colorado
area, to prevent uncontrolled water from entering the Leased Premises.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  DENVER PLACE ASSOCIATES LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Amerimar Realty Management Co.-Colorado

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Amerimar Realty Management Co.-

  Pennsylvania, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  ARC-Management Co., Inc., its

  general partner

  
	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By

  	
  /s/ David G. Marshall

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  David G. Marshall, President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
   

  	
  ESCHELON TELECOM OF COLORADO, INC., a

  Minnesota corporation

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By

  	
  /s/ Geoffrey M. Boyd

  	
   

  
	
   

  	
   

  	
  Geoffrey M. Boyd, Chief Financial Officer

  
														

 

12

 

 

 

EXHIBIT “B”

 

RULES AND REGULATIONS

 

Rules and Regulations, to Lease between DENVER PLACE ASSOCIATES LIMITED
PARTNERSHIP, a Delaware limited partnership, as Landlord (“Landlord”) and
ESCHELON TELECOM OF COLORADO, INC., a Minnesota corporation (“Tenant”)
pertaining to certain space in Denver Place, 999 18th Street, Denver, Colorado
80202.

 

1.             
Any sign, lettering, picture, notice, or advertisement installed within the
Leased Premises which is visible to the public from within the Building shall
be installed at Tenant’s cost and in such manner, character and style as
Landlord may approve in writing. No sign, lettering, picture, notice or
advertisement shall be placed on any outside window or in any position so as to
be visible from outside the Building.

 

2.             The
use of the name of the Building or of pictures or illustrations of the Building
in advertising or other publicity, without prior written consent of Landlord,
is prohibited.

 

3.             Tenant,
its subtenants and its and their customers, invitees, licensees, and guests

 

a.             shall
not obstruct and shall not use for any purpose other than ingress and egress,
the sidewalks, entrances, passages, courts, corridors, vestibules, halls,
elevators and stairways in and about the Building;

 

b.             shall
not place objects against glass partitions or doors or windows or adjacent to
any open common space which would be unsightly from the Building corridors or
from the exterior of the Building, and will promptly remove the same upon
notice from Landlord;

 

c.             shall
not make noises, cause disturbances, create vibrations, odors or noxious fumes
or use or operate any electrical or electronic devices or other devices that
emit sound waves or are dangerous to other tenants and occupants of the
Building or that would interfere with the operation of any device or equipment
or radio or television broadcasting or reception from or within the Building or
elsewhere, and shall not place or install any projections, antennae, aerials or
similar devices inside or outside of the Leased Premises;

 

d.             shall
not make any room-to-room canvass to solicit business from other tenants in the
Building, and shall not exhibit, sell or offer to sell, use, rent or exchange
any item or services in or from the Leased Premises unless ordinarily embraced
within the Tenant’s use of the Leased Premises as specified in its Lease;

 

e.             shall
refrain from attempting to adjust any controls;

 

f.              shall
not waste, and shall not suffer or permit to be wasted, electricity or water
and shall cooperate fully with Landlord to assure the most effective operation
of the Building’s heating and air conditioning;

 

 

g.             shall
keep public corridor doors closed;

 

h.             shall
neither install nor operate machinery or any mechanical devices of a nature not
directly related to Tenant’s ordinary use of the Leased Premises without the
written permission of the Landlord;

 

i.              shall
not use rest rooms or water fixtures for any purpose other than that for which
they are designed;

 

j.              shall
not mark upon, paint, cut, drill into, drive nails or screws into, or in any way
deface the walls, ceiling partitions or floors of the Leased Premises or of the
Building;

 

k.             shall
not unduly obstruct any pipes, conduits and ducts in the Leased Premises; and

 

l.              shall
use chair pads, to be furnished by Tenant, under all rolling and ordinary desk
chairs in the carpeted areas.

 

4.             Tenant
assumes full responsibility for protecting its space from theft, robbery and
pilferage, which includes keeping doors locked and other means of entry to the
Leased Premises closed and secured.

 

5.             Peddlers,
solicitors and beggars shall be reported to the office of the Building or as
Landlord otherwise requests.

 

6.             No
person or contractor not employed by Landlord shall be used to perform window
washing, cleaning, or other work in the Leased Premises.

 

7.             Unless
Landlord so consents, Tenant shall not, and Tenant shall not permit or suffer
anyone to:

 

a.             Cook
in the Leased Premises;

 

b.             Place
vending or dispensing machines of any kind in the Leased Premises;

 

c.             At
any time sell, purchase or give away, or permit the sale, purchase or gift of,
food in any form; or

 

d.             Use
the Leased Premises for lodging or for any immoral or illegal purposes.

 

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

 

f.              Use
the Leased Premises to engage in the manufacture or sale of, or permit the use
of, any illegal drugs.

 

2

 

8.             No
furniture shall be placed in front of the Building or in any lobby or corridor,
without the prior written consent of Landlord. Landlord shall have the right to
remove all non-permitted signs and furniture, without notice to Tenant, at
Tenant’s expense.

 

9.             No
animals are allowed in the Building.

 

10.           No
lock or other security device shall be placed by Tenant on any door in the
Building without the Building manager being kept furnished with two of the
keys, cards or other means of access therefore. At the termination of its
tenancy, Tenant shall promptly deliver to Landlord all keys, entry cards and
other means of access to offices, rest rooms and vaults.

 

11.           The
use of oil, gas or inflammable liquids for heating, lighting, or any other
purpose is expressly prohibited. Explosives or other hazardous articles shall
not be brought into the Building.

 

12.           Electric
floor space heaters, humidifiers or A/C fans are not permitted.

 

13.           a.             Landlord
shall have the right to approve or disapprove the movers or moving company
employed by Tenant. Tenant shall cause said movers to use only the loading
facilities and elevator designated by Landlord. In the event Tenant’s movers
damage the elevator or any part of the Building, Tenant shall forthwith pay to
Landlord the amount required to repair said damage.

 

b.             Furniture,
equipment and supplies shall be moved in or out of the Building only during
such hours and in such manner as may be prescribed by Landlord.

 

c.             No
safe or article, the weight of which may constitute a hazard or danger to the
Building or its equipment shall be moved into the Leased Premises.

 

d.             Safes
and other equipment, the weight of which is not excessive shall be moved into,
from or about the Building only during such hours and in such manner as shall
be prescribed by Landlord, and Landlord shall have the right to designate the
location of such articles in the Leased Premises.

 

14.           Smoking
shall not be permitted in any common areas of the Building (including but no
limited to the parking garage, elevator lobbies, elevators, public corridors
and restrooms), or within three feet of the exterior entrance to any doorway or
entryway of the Building. Smoking shall only be permitted in those areas of the
Retail Mall which have been designated as public smoking areas.

 

15.           Roller
skates, bicycles or other vehicles shall not be permitted in the offices,
halls, common areas, or corridors in the Building. All vehicles shall use
designated parking meters.

 

16.           No
window shades, blinds, screens, draperies or other window coverings will be
attached or detached by Tenant without Landlord’s prior written consent. Tenant
agrees to abide by Landlord’s rules with respect to maintaining uniform
curtain, draperies and/or linings at all windows and hallways.

 

3

 

17.           If
Tenant desires telegraphic, telephonic, computer or other electric connections,
Landlord, or its agents, will direct the electricians as to where and how the
wires may be introduced, and without such directions, no boring or cuttings for
wires will be permitted. Any such installation and connection shall be made at
Tenant’s expense, and, at Landlord’s option, shall be removed at Tenants
expense at the expiration or termination of its Lease.

 

18.           Landlord
reserves the right to modify and make such other and further reasonable rules
and regulations as in its judgment may, from time to time, be needful and
desirable for the safety, security, care and cleanliness of the Leased Premises
and preservation of good order therein.

 

4

 

EXHIBIT C

 

LEASE
TERM AGREEMENT

 

THIS AGREEMENT, made as of the
         day of November, 2000, between
DENVER PLACE ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership
(hereinafter referred to as “Landlord”) and ESCHELON TELECOM OF COLORADO, INC.,
a Minnesota corporation (hereinafter referred to as “Tenant”).

 

WITNESSETH

 

WHEREAS, by Lease (hereinafter called “Lease”) dated as of the 24th day
of October, 2000, Landlord leased unto Tenant certain Leased Premises known as
Suite Number 126, located at 999 - 18th Street, Denver, Colorado, for a term of
One hundred twenty (120) months and sixteen (16) days commencing on January 15,
2001, unless sooner terminated or extended as provided therein, and

 

WHEREAS, Landlord and Tenant now desire to set forth the correct
Commencement Date of the term and to adjust the Termination Date of the Term to
provide for a full term of the Lease of five years, one months and zero days.

 

NOW, THEREFORE, Landlord and Tenant do hereby agree as follows:

 

1.             The Term of the Lease commenced on
                  ,
        , and shall continue until
                  ,
        , unless sooner terminated or
extended as provided therein.

 

2.             Except as hereby amended, the Lease shall
continue in full force and effect.

 

3.             This Agreement shall be binding on the
parties hereto, their heirs, executors, successors and assigns.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  DENVER PLACE ASSOCIATES LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Amerimar Realty Management Co.-Colorado

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Amerimar Realty Management Co.-

  Pennsylvania, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  ARC-Management Co., Inc., its

  general partner

  
						

 

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  David G. Marshall, President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  ESCHELON TELECOM OF COLORADO, INC., a

  Minnesota corporation

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Geoffrey Boyd, Chief Financial Officer

  
													

 

 

EXHIBIT D

 

PARKING AGREEMENT

 

DENVER PLACE ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited
partnership, Landlord, and ESCHELON TELECOM OF COLORADO, INC., a Minnesota
corporation, as Tenant, have executed simultaneously with this Agreement a
Lease (the “Lease”) pertaining to certain office space located at 999 - 18th
Street to be occupied by Tenant. In consideration of the mutual covenants
herein contained, Landlord and Tenant further agree as follows:

 

The Building in which the Leased Premises are located contains a
parking garage for the benefit of tenants and the general public (hereinafter
called “Parking Garage”). Landlord does not operate or manage the Parking
Garage, but maintains a management agreement with an independent contractor
(hereinafter called “Operator”) for the management and operation of the Parking
Garage. In order to rent parking spaces in the Parking Garage, Tenant must
contract separately with the Operator for such rentals. Landlord shall make
available for Tenant and Tenant shall have a non-assignable option to rent from
the Operator for five (5) unreserved parking spaces (the “Parking Spaces”)
located in the Parking Garage at the monthly rates posted from time to time by
the Operator. The Parking Spaces shall only be used by employees of the Tenant
working within the Leased Premises and the right to use any of the Parking
Spaces is not assignable or transferable.

 

The terms and conditions of Tenant’s rental shall be governed and fixed
solely by the rental agreement between Tenant and Operator, however, Tenant’s
failure to comply with any term of any such rental agreement shall constitute a
default under the Lease. In the event that Tenant chooses to rent any of the
Parking Spaces from the Operator as provided for herein, Tenant shall be
responsible for payment to the Operator of a refundable security deposit for
each parking card or disk issued by the Operator in connection with Tenant’s
rental of the Parking Spaces (the “Security Deposit”). The Security Deposit
shall be in an amount to be determined by the Operator in its sole discretion.
Notwithstanding anything in this Agreement or the Lease to the contrary, in no
event shall Landlord be responsible for payment of the Security Deposit to the
Operator on behalf of Tenant. Payment and refund of the Security Deposit shall be
governed and fixed solely by the rental agreement between Tenant and Operator.
Landlord’s holding of Parking Spaces shall not constitute any assumption of and
Tenant hereby releases Landlord from any and all liability with respect to such
rentals, and any and all damage, loss or injury with respect to such rentals
shall be at the sole risk of Tenant unless otherwise provided by Operator under
the rental agreement.

 

The provisions of this Agreement supplement but are subject to all
provisions of the Lease. Capitalized terms not otherwise defined in this
Agreement have the same meaning as the same terms have in the Lease.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  DENVER PLACE ASSOCIATES LIMITED

  PARTNERSHIP, a Delaware limited partnership

  

 

 

	
   

  	
  By:

  	
  Amerimar Realty Management Co.-Colorado

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Amerimar Realty Management Co.-

  Pennsylvania, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  ARC-Management Co., Inc., its

  general partner

  
	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  David G. Marshall, President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  ESCHELON TELECOM OF COLORADO, INC., a

  Minnesota corporation

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Geoffrey M Boyd, Chief Financial Officer

  
														

 

 

EXHIBIT E

 

LANDLORD’S
WAIVER AND CONSENT

 

THIS LANDLORD’S WAIVER AND CONSENT (“Consent”), made and entered into
as of the       day of November, 2000, by Denver Place
Associates Limited Partnership, a Delaware limited partnership
(“Landlord”), in favor of General Electric Capital Corporation
(“Agent”), as agent for Lenders party to the Loan and Security Agreement
described below

 

BACKGROUND

 

A.            Landlord
is the agent for owner of certain real property located in the City and County
of Denver, Colorado, being more particularly described on Exhibit A attached
hereto (the “Leased Premises”).

 

B.            The
Leased Premises have been leased to Eschelon Telecom of Colorado, Inc., a Minnesota
corporation (“Lessee”) by Lease Agreement dated October 24, 2000 (the “Lease”).

 

C.            Lessee
is entering into a Loan and Security Agreement (the “Agreement”) with Agent and
the other financial institutions from time to time party thereto (collectively,
“Lenders”) for the purpose of financing Lessee’s acquisition, construction,
installation, maintenance and operation of a telecommunications system (the
“System”), part of which maybe located on the Leased Premises.

 

D.            As
a condition to extending such loans and other financial accommodations, Lenders
have required, among other things, that Lessee grant to Agent, for its own
benefit and the ratable benefit of Lenders, security interests in the System
and in certain of Lessee’s property, including, without limitation, machinery,
equipment, furniture, fixtures and inventory, whether now owned or hereafter
acquired (“Collateral”), a portion of which Collateral is and may hereafter be
located on or about the Leased Premises.

 

NOW, THEREFORE, in order to induce Lenders to extend financial
accommodations to Lessee, which will aid Lessee in meeting its obligations to
Landlord, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Landlord hereby agrees with Agent
as follows:

 

1.             Landlord
consents to Lessee’s granting Agent a security interest in the Collateral.
Agent’s security interests and liens in the Collateral shall be superior to any
title or interest which the Landlord may at any time have therein, and, during
the term of this Agreement, Landlord will not assert against any of the
Collateral any title or any statutory, common law, contractual or possessory
lien, including, without limitation, rights of levy or distraint for rent, all
of which Landlord hereby subordinates in favor of Agent and Lenders.

 

2.             
Landlord agrees that none of the Collateral is subject to the Lease and hereby
disclaims any and all right, title, interest or claim in or to the Collateral
and any cash or non-cash or non-cash proceeds of the Collateral (except with
respect to the subordinated landlord lien

 

 

referred to in Section 1
above). The Collateral may be affixed to or used in conjunction with the Leased
Premises, but shall remain the Lessee’s personal property, subject to Agent’s
lien, at all times. Landlord agrees not to impound or remove any of the
Collateral from the Leased Premises as long as this Consent is in effect,
except as set forth herein.

 

3.             Landlord
agrees that Agent and its representatives and invites may enter upon the Leased
Premises at any time or times, during normal business hours, with reasonable
advance notice to Landlord, to inspect, repossess, remove or otherwise deal
with the Collateral, without any liability of Agent or any Lender to Landlord,
except for reimbursement for any physical damage to the Leased Premises caused
by such removal. Agent shall reimburse Landlord for all reasonable costs and
expenses incurred by Landlord to repair any such physical damage so caused to
the Leased Premises within thirty (30) days after Agent’s receipt of a written
request from Landlord for such reimbursement, which written request shall
include copies of invoices for all out of pocket costs and expenses incurred by
Landlord related to such repair. Landlord will not hinder Agent’s actions in
enforcing its liens and remedies with respect to the Collateral. Landlord
agrees that Agent may advertise and conduct public or private sales of the
Collateral. Agent or any Lender shall not be liable for any diminution in value
of the Leased Premises caused by the absence of Collateral removed, and Agent
or any Lender shall not have any duty or obligation to remove or dispose of any
Collateral or any other property left on the Leased Premises by Lessee.

 

4.             In
the event that Lessee defaults in its obligations under the Lease, Landlord
agrees to give Agent copies of written notices of default under the Lease,
written notice of termination of the Lease and/or written notice of termination
of Lessee’s right of possession at the same time as such notice is given to
Lessee and further agrees that Agent may, but shall not be obligated to, cure
such defaults, at its option, within the applicable notice and cure periods
offered for Lessee under the Lease, plus an additional five (5) days in the
case of a monetary default and an additional fifteen (15) days in the case of a
non-monetary default.

 

5.             If
the Lease is terminated, Landlord agrees to allow the Collateral to remain on
the Leased Premises for a reasonable time not more than ninety (90) days,
provided Agent fulfills all of Lessee’s obligations under the Lease relative to
payment of rent and maintenance of the Leased Premises, during which time Agent
may, at its discretion, remove, sell or otherwise dispose of the Collateral as
Agent may elect.

 

6.             Landlord
states that, as of the date Landlord has executed this Consent, the Lease is
valid and in full force and effect, that all rentals have been paid up to date,
and that as of the date hereof the Lease is not in default.

 

7.             Neither
Landlord nor, to the best knowledge of Landlord, Lessee is in default under the
terms of the Lease and, to the best knowledge of Landlord, no event has
occurred, or failed to occur, which with the giving of notice or the passage of
time or both would constitute a default under the Lease.

 

8.             Tenant
shall be in possession of the Leased Premises as of the Commencement Date, as
defined in the Lease.

 

2

 

9.             Landlord
shall not, without prior written consent of Agent, enter into any amendment or
modification of the Lease that would reduce the original term of the Lease or
would otherwise materially and adversely affect the interest of Agent in
Lessee’s interest under the Lease.

 

10.           Upon
receipt of a written request from Agent, Landlord shall execute an estoppel
certificate certifying, if true, that the Lease has not been modified and is in
full force and effect or, if the Lease has been modified, that the Lease is in
full force and effect as modified, stating such modifications; specifying the
date to which rent has been paid; stating whether or not, to the best knowledge
of Landlord, Lessee is in default and, if so, stating the nature of such
default; stating which options to extend the term of the Lease have been executed,
in any; and any other reasonable information which Agent may request

 

11.           Landlord
states that it has full right and authority to enter into this Consent and that
the provisions of this Consent do not and will not conflict with or violate any
provision of any agreement between Landlord and any third party

 

12.           This
Consent shall remain in full force and effect until all obligations of Lessee
to Agent and the Lenders have been paid and satisfied in full and Agent and the
Lenders have terminated their financing agreements with Lessee pursuant to the
Agreement.

 

13.           The
provisions of this Consent may not be modified or terminated orally, and shall
be binding upon the successors and assigns of the Landlord, and upon any
successor owner or transferee of the Leased Premises and shall inure to the
benefit of the Agent and its successors and assigns. Notwithstanding any other
provision of this Consent or the Lease to the contrary, all of Agent’s right,
title and interest in and to the Lease and any obligations thereunder may be
assigned and transferred to an affiliate or successor of Agent without notice
to Landlord, and to other parties with notice to Landlord.

 

14.           Landlord
shall not unreasonably withhold any consent required of Landlord to an
assignment of Lessee’s interest in the Lease in connection with a sale or
transfer of all or substantially all of Lessee’s assets and business.

 

15.           All
notices shall be in writing and shall be mailed by first class registered or
certified mail, return receipt requested, by overnight courier service
maintaining records of receipt, or by facsimile transmission with confirmation
in writing mailed first class, in all cases with charges prepaid, and any such
properly given notice shall be effective upon the earlier of receipt or (i) the
third business day after being mailed; (ii) when sent by facsimile, answer back
received. All notices shall be addressed as follows.

 

	
  (a)

  	
  If to Agent:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  General Electric Capital Corporation

  
	
   

  	
   

  	
  Telecom Financial Services

  
	
   

  	
   

  	
  10 Riverview Drive

  
	
   

  	
   

  	
  Danbury, CT 06810

  
	
   

  	
   

  	
  Attn: Portfolio Manager

  
	
   

  	
   

  	
  Telecopy: (203) 749-4531

  
				

 

3

 

	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Weil, Gotshal & Manges LLP

  
	
   

  	
   

  	
  767 Fifth Avenue

  
	
   

  	
   

  	
  New York, New York 10153

  
	
   

  	
   

  	
  Telecopy: (212) 310-8007

  
	
   

  	
   

  	
  Attn: Ronald Daitz, Esq.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
  If to Landlord:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amerimar Realty Management Co. - Colo.

  
	
   

  	
   

  	
  999 18th Street, Suite 1201 North Tower

  
	
   

  	
   

  	
  Denver, Colorado 80202

  
	
   

  	
   

  	
  Telecopy: (303) 295-3643

  
	
   

  	
   

  	
  Attention: Garth Tait

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Robinson Waters & O’Dorisio, P.C.

  
	
   

  	
   

  	
  1099 18th Street, Suite 2600

  
	
   

  	
   

  	
  Denver, Colorado 80202

  
	
   

  	
   

  	
  Telecopy: (303) 297-2750

  
	
   

  	
   

  	
  Attention: John W. O’Dorisio, Jr..

  
				

 

16.           This
Consent shall in all respects be governed by and construed in accordance with
the laws of the State in which the Leased Premises are located.

 

IN WITNESS WHEREOF, Landlord has executed this Landlord’s Waiver and
Consent as of the date first above written.

 

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  DENVER PLACE ASSOCIATES LIMITED

  PARTNERSHIP, a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Amerimar Realty Management Co.-Colorado

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Amerimar Realty Management Co.-

  Pennsylvania, its general partner.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  ARC-Management Co., Inc., its

  general partner

  
	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  David G. Marshall, President

  
										

 

4Exhibit 10.18

 

OFFICE
LEASE

 

SOFI-IV
SIM OFFICE INVESTORS II, LIMITED PARTNERSHIP

 

Landlord

 

And

 

Advanced
Telecommunications, Inc. a Delaware corp.

 

Tenant

 

Dated:
December 1, 1999

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE 1

  	
   

  	
  SUMMARY OF BASIC TERMS

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
  DELIVERY,
  TERM AND CONSTRUCTION

  
	
   

  	
  2.1

  	
   

  	
  Term

  
	
   

  	
  2.2

  	
   

  	
  Memorandum

  
	
   

  	
  2.3

  	
   

  	
  Area Measurement

  
	
   

  	
  2.4

  	
   

  	
  Condition

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  	
  USE OF PREMISES

  
	
   

  	
  3.1

  	
   

  	
  Permitted
  Uses

  
	
   

  	
  3.2

  	
   

  	
  Insurance Restrictions

  
	
   

  	
  3.3

  	
   

  	
  Improvements

  
	
   

  	
  3.4

  	
   

  	
  Prohibitions

  
	
   

  	
  3.5

  	
   

  	
  Common
  Areas

  
	
   

  	
  3.6

  	
   

  	
  Rules and Regulations

  
	
   

  	
  3.7

  	
   

  	
  Compliance with Law

  
	
   

  	
  3.8

  	
   

  	
  Audit

  
	
   

  	
  3.9

  	
   

  	
  Parking

  
	
   

  	
  3.10

  	
   

  	
  Keys,
  Locks and Access Cards

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
  SECURITY DEPOSIT AND GUARANTIES

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
  RENT

  
	
   

  	
  5.1

  	
   

  	
  Base
  Rent

  
	
   

  	
  5.2

  	
   

  	
  Late Charges and Interest

  
	
   

  	
  5.3

  	
   

  	
  Excise
  Taxes

  
	
   

  	
  5.4

  	
   

  	
  Obligations are Rent

  
	
   

  	
  5.5

  	
   

  	
  Proration

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  	
  OPERATING COSTS

  
	
   

  	
  6.1

  	
   

  	
  Tenant’s
  Share

  
	
   

  	
  6.2

  	
   

  	
  Estimates

  
	
   

  	
  6.3

  	
   

  	
  Annual Reconciliation

  
	
   

  	
  6.4

  	
   

  	
  Partial Year Proration; Variable Cost
  Adjustment

  
	
   

  	
  6.5

  	
   

  	
  Operating Costs

  
	
   

  	
  6.6

  	
   

  	
  Exclusions

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  	
  TAXES

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  	
  INSURANCE AND INDEMNITY

  
	
   

  	
  8.1

  	
   

  	
  Insurance Policies

  
	
   

  	
  8.2

  	
   

  	
  Policy Requirements

  
	
   

  	
  8.3

  	
   

  	
  Evidence of Coverage

  
	
   

  	
  8.4

  	
   

  	
  Indemnity and Exculpation

  
	
   

  	
  8.5

  	
   

  	
  Landlord’s Policies

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
   

  	
  FIRE AND CASUALTY

  
	
   

  	
  9.1

  	
   

  	
  Termination Rights

  
	
   

  	
  9.2

  	
   

  	
  Restoration

  
	
   

  	
  9.3

  	
   

  	
  Abatement

  

 

i

 

	
   

  	
  9.4

  	
   

  	
  Demolition of Project

  
	
   

  	
  9.5

  	
   

  	
  Agreed Remedies

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
   

  	
  CONDEMNATION

  
	
   

  	
  10.1

  	
   

  	
  Automatic Termination

  
	
   

  	
  10.2

  	
   

  	
  Optional Termination

  
	
   

  	
  10.3

  	
   

  	
  Award

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
   

  	
  MAINTENANCE

  
	
   

  	
  11.1

  	
   

  	
  By
  Tenant

  
	
   

  	
  11.2

  	
   

  	
  By
  Landlord

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
   

  	
  UTILITIES

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
   

  	
  LANDLORD RIGHT OF ENTRY

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14

  	
   

  	
  SIGNS

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15

  	
   

  	
  TENANT ALTERATIONS

  
	
   

  	
  15.1

  	
   

  	
  Tenant Alterations

  
	
   

  	
  15.2

  	
   

  	
  Tenant Installations

  
	
   

  	
  15.3

  	
   

  	
  Mechanics Liens

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 16

  	
   

  	
  ASSIGNMENT AND SUBLETTING

  
	
   

  	
  16.1

  	
   

  	
  Consent Required

  
	
   

  	
  16.2

  	
   

  	
  Requests for Approval

  
	
   

  	
  16.3

  	
   

  	
  Continued Responsibility

  
	
   

  	
  16.4

  	
   

  	
  Excess Proceeds

  
	
   

  	
  16.5

  	
   

  	
  Limitations

  
	
   

  	
  16.6

  	
   

  	
  No
  Waiver

  
	
   

  	
  16.7

  	
   

  	
  Transfer by Landlord

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 17

  	
   

  	
  SUBORDINATION AND ATTORNMENT

  
	
   

  	
  17.1

  	
   

  	
  Subordination

  
	
   

  	
  17.2

  	
   

  	
  Lender Protection

  
	
   

  	
  17.3

  	
   

  	
  Documentation

  
	
   

  	
  17.4

  	
   

  	
  Other Transactions

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 18

  	
   

  	
  ESTOPPEL CERTIFICATES

  
	
   

  	
   

  	
   

  
	
  ARTICLE 19

  	
   

  	
  QUIET ENJOYMENT

  
	
   

  	
   

  	
   

  
	
  ARTICLE 20

  	
   

  	
  SURRENDER AND HOLDOVER

  
	
   

  	
  20.1

  	
   

  	
  Surrender

  
	
   

  	
  20.2

  	
   

  	
  Holdover

  
	
   

  	
   

  	
   

  
	
  ARTICLE 21

  	
   

  	
  BREACH, DEFAULT, AND REMEDIES

  
	
   

  	
  21.1

  	
   

  	
  Default

  
	
   

  	
  21.2

  	
   

  	
  Remedies

  
	
   

  	
  21.3

  	
   

  	
  Subtenancies

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 22

  	
   

  	
  LANDLORD LIABILITY

  

 

ii

 

	
  ARTICLE 23

  	
   

  	
  NOTICES

  
	
   

  	
   

  	
   

  
	
  ARTICLE 24

  	
   

  	
  BROKERAGE

  
	
   

  	
   

  	
   

  
	
  ARTICLE 25

  	
   

  	
  RELOCATION

  
	
   

  	
   

  	
   

  
	
  ARTICLE 26

  	
   

  	
  GENERAL

  
	
   

  	
  26.1

  	
   

  	
  Severability

  
	
   

  	
  26.2

  	
   

  	
  No Waiver

  
	
   

  	
  26.3

  	
   

  	
  Effect of Payment

  
	
   

  	
  26.4

  	
   

  	
  Delay

  
	
   

  	
  26.5

  	
   

  	
  Lender
  Notice

  
	
   

  	
  26.6

  	
   

  	
  No
  Offer

  
	
   

  	
  26.7

  	
   

  	
  Successors

  
	
   

  	
  26.8

  	
   

  	
  Integration

  
	
   

  	
  26.9

  	
   

  	
  Waiver of Jury Trial

  
	
   

  	
  26.10

  	
   

  	
  Governing
  Law

  
	
   

  	
  26.11

  	
   

  	
  Deadlines Enforceable

  
	
   

  	
  26.12

  	
   

  	
  Counterparts

  
	
   

  	
  26.13

  	
   

  	
  Additional Provisions

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 27

  	
   

  	
  SERVICES

  
	
   

  
	
   

  	
  A.

  	
  Landlord’s Obligations

  
	
   

  	
  B.

  	
  Electrical Service

  
	
   

  	
  C.

  	
  Restoration of Service/Tenant Self-Help
  Remedy

  
	
   

  	
  D.

  	
  Generator & HVAC Access

  
	
   

  	
   

  	
   

  
	
  ARTICLE 28

  	
   

  	
  RISERS & CONDUIT ACCESS

  
	
   

  	
   

  	
   

  
	
  ARTICLE 29

  	
   

  	
  BATTERY INSTALLATION

  
	
   

  	
   

  	
   

  
	
  ARTICLE 30

  	
   

  	
  GROUNDING RISER

  
	
   

  	
   

  	
   

  
	
  ARTICLE 31

  	
   

  	
  ANTENNAE

  
	
   

  	
   

  	
   

  
	
  ARTICLE 32

  	
   

  	
  FIRE PROTECTION & LIFE SAFETY

  
	
   

  	
   

  	
   

  
	
  ARTICLE 33

  	
   

  	
  HAZARDOUS SUBSTANCES

  
	
   

  	
   

  	
   

  
	
  ARTICLE 34

  	
   

  	
  EXPRESS WAIVER OF LANDLORD’S LIEN

  
	
   

  	
   

  	
   

  
	
  ARTICLE 35

  	
   

  	
  ALLOWABLE USE OF CERTAIN HAZARDOUS
  MATERIALS

  

 

 

	
  EXHIBITS:

  	
   

  
	
   

  
	
  EXHIBIT
  A - THE PREMISES

  
	
  EXHIBIT
  A-1 - FLOOR PLAN

  
	
  EXHIBIT
  B - CONSTRUCTION PROVISIONS

  
	
  EXHIBIT
  C - RULES AND REGULATIONS

  

 

iii

 

OFFICE
LEASE

 

SOFI-IV SIM OFFICE
INVESTORS II LIMITED PARTNERSHIP, an Delaware limited
partnership (“Landlord”), hereby leases the Premises described below, for the
Term and on the terms and conditions set forth in this Lease, to:

 

Advanced Telecommunications, Inc. a Delaware corp.

 

(“Tenant”).

 

ARTICLE 1                    SUMMARY OF
BASIC TERMS

 

1.1           The Premises: Suite #500 in the Building
consisting of approximately 6,028 square feet of rentable area as illustrated
on the attached Exhibit A. A floor plan for the floor(s) on which the Premises
is located is attached as Exhibit A-1.

 

1.2           The Building: The building is located at
2600 North Central Avenue, Phoenix, Arizona.

 

1.3           “Project” means the Building identified in
Section 1.2, and all lands and facilities used in connection with the
Building as reasonably determined from time to time by Landlord. The Project
consists of approximately 322,000 square feet of rentable area.

 

1.4           Names of Guarantors: None

 

1.5           Security Deposit: $12,000.00.

 

1.6           The Term: Ten (10) years and four (4)
months, beginning on the Commencement Date and ending on the Expiration Date.

 

1.7           Commencement and Expiration Dates:
January 15, 2000, and May 15, 2010, respectively, subject to the
provisions of Exhibit B.

 

1.8           Base Rent:

 

	
  Lease Year

  	
   

  	
  Annual
  Base Rent

  	
   

  	
  Base Rent
  Per Square Foot

  	
   

  	
  Monthly
  Base Rent

  	
   

  
	
  1

  	
   

  	
  $

  	
  120,560.00

  	
   

  	
  $20.00/sq. ft.

  	
   

  	
  $

  	
  10,046.67

  	
   

  
	
  2

  	
   

  	
  $

  	
  124,176.80

  	
   

  	
  $20.60/sq. ft.

  	
   

  	
  $

  	
  10,348.07

  	
   

  
	
  3

  	
   

  	
  $

  	
  127,914.16

  	
   

  	
  $21.22/sq. ft.

  	
   

  	
  $

  	
  10,659.51

  	
   

  
	
  4

  	
   

  	
  $

  	
  131,772.08

  	
   

  	
  $21.86/sq. ft.

  	
   

  	
  $

  	
  10,981.01

  	
   

  
	
  5

  	
   

  	
  $

  	
  135,750.56

  	
   

  	
  $22.52/sq. ft.

  	
   

  	
  $

  	
  11,312.55

  	
   

  
	
  6

  	
   

  	
  $

  	
  139,849.60

  	
   

  	
  $23.20/sq. ft.

  	
   

  	
  $

  	
  11,654.13

  	
   

  
	
  7

  	
   

  	
  $

  	
  144,069.20

  	
   

  	
  $23.90/sq. ft.

  	
   

  	
  $

  	
  12,005.77

  	
   

  
	
  8

  	
   

  	
  $

  	
  148,409.36

  	
   

  	
  $24.62/sq. ft.

  	
   

  	
  $

  	
  12,367.45

  	
   

  
	
  9

  	
   

  	
  $

  	
  152,870.08

  	
   

  	
  $25.36/sq. ft.

  	
   

  	
  $

  	
  12,739.17

  	
   

  
	
  10

  	
   

  	
  $

  	
  157,451.36

  	
   

  	
  $26.12/sq. ft.

  	
   

  	
  $

  	
  13,12095

  	
   

  

 

1

 

1.9              Tenant’s
Proportionate Share: 1.87%, consisting of the proportion that the rentable area
of the Premises bears to the rentable area of the Project.

 

1.10         Base Year: 2000

 

1.11            Description
of Tenant’s Business: Executive and general office use, the installation,
operation and maintenance of equipment and facilities in connection with
Tenant’s telecommunication business, including but not limited to
telecommunications switch.

 

1.12            Normal
Business Hours: 7:00 a.m. to 6:00 p.m., Monday through Friday, 8:00 a.m. to
1:00 p.m. on Saturday.

 

1.13         Tenant Improvement Allowance: $5.00 per
rentable square foot ($30,140.00).

 

	
  1.14

  	
   

  	
  Tenant’s Address for Pre-occupancy Notices:

  	
   

  	
  730 2nd Ave. South

  
	
   

  	
   

  	
   

  	
   

  	
  # 1200

  
	
   

  	
   

  	
   

  	
   

  	
  Minneapolis. MN 55402

  

 

	
  1.15

  	
   

  	
  Landlord’s Notice Address:

  	
   

  	
  c/o Scottsdale Property Management 97, L.L.C.

  
	
   

  	
   

  	
   

  	
   

  	
  9495 E. San Salvador, Suite 100

  
	
   

  	
   

  	
   

  	
   

  	
  Scottsdale, AZ 85258

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.16

  	
   

  	
  Tenant’s designated broker:

  	
   

  	
  Eric Ham, TELECOM Real Estate Services

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.17

  	
   

  	
  Landlord’s designated broker:

  	
   

  	
  Scottsdale Property Management 97, L.L.C.

  

 

ARTICLE 2                    DELIVERY,
TERM AND CONSTRUCTION

 

2.1           Term.
The Term of this Lease, and the dates of commencement and expiration of the
Term, are set forth in Sections 1.6 and 1.7.

 

2.2              Memorandum. At the request of either party at any
time following initial occupancy of the Premises by Tenant, Landlord and Tenant
shall execute a written memorandum reflecting the date of initial occupancy and
confirming the Commencement Date and Expiration Date.

 

2.3              Area Measurement. “Rentable Area” means area
measured in accordance with American National Standard Z65.1-1980, as published
by BOMA International.

 

2.4              Condition. Landlord shall have no obligation to make
any improvements or alterations to the Premises or the Building whatsoever, and
Tenant accepts the Premises in an AS IS condition, with all faults.
Notwithstanding the foregoing, if an Exhibit C is attached to this Lease,
Landlord shall cause improvements to be constructed and alterations to be made
in the Premises in accordance with the provisions of Exhibit B.

 

ARTICLE 3                    USE OF
PREMISES

 

3.1              Permitted Uses. Tenant may use and occupy the
Premises for the purposes set forth in Section 1.11 and for no other
purpose whatsoever without Landlord’s prior written consent. Tenant shall not
use the Premises for any purpose in violation of exclusive rights granted by
Landlord from time to time to any other Tenant; provided, however, that
Landlord shall not grant any exclusive right that would prevent Tenant from
conducting its business as described in Section 1.11.

 

2

 

3.2              Insurance Restrictions. Tenant shall not
perform any act which would cause the cancellation of any insurance policies
related to the Project. Tenant shall reimburse Landlord for any increases in
insurance premiums paid by Landlord directly related to the nature of Tenant’s
use of the Premises or the nature of Tenant’s business.

 

3.3              Improvements. If solely due to the nature of
Tenant’s use of the Premises, improvements or alterations are necessary to
comply with any requirements imposed by law or with the requirements of
insurance carriers, Tenant shall pay the entire cost of the improvements or
alterations.

 

3.4              Prohibitions. Tenant shall not cause or maintain
any nuisance in or about the Premises and shall keep the Premises free of
debris, rodents, vermin and anything of a dangerous, noxious or offensive
nature or which would create a fire hazard (through undue load on electrical
circuits or otherwise) or undue vibration, noise or heat. Tenant shall not
cause the safe floor loading capacity to be exceeded. Tenant shall not disturb
or interfere with the quiet enjoyment of the premises of any other tenant.

 

3.5              Common Areas. All of the portions of the Project
made available by Landlord for use in common by tenants and their employees and
invitees (“Common Areas”) at all times shall remain subject to Landlord’s
exclusive control and Landlord shall be entitled to make such changes in the
Common Areas as it deems appropriate. Landlord shall have the right at any time
to change the arrangement and/or locations of entrances, or passageways, doors
and doorways, and corridors, windows, elevators, stairs, toilets or other
public parts of the Building and to change the name, number or designation by
which the Building or the Project is commonly known.

 

3.6              Rules and Regulations. Tenant shall comply
and shall cause its employees to comply with the rules and regulations for the
Project. The current rules and regulations are attached as Exhibit C. Landlord
from time to time by notice to Tenant may amend the rules and regulations and
establish other reasonable non-discriminatory rules and regulations for the
Project.

 

3.7              Compliance with Law. Without in any manner
limiting any other provision of this Lease, Tenant hereby represents and
warrants and agrees for the full term of any obligations under this Lease:

 

(a)               to
comply fully with all federal, state and local laws, rules, orders, or
regulations pertaining to health or the environment (“Environmental Laws”),
including, without limitation, the comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended (“CERCLA”) and the Resource
Conservation and Recovery Act of 1987, as amended (“RCRA”).

 

(b)              that
Tenant will not dispose of nor permit or acquiesce in the disposal of any waste
(including, but not limited to, any paints, solvents, or paint thinners)
products on, under or around the Premises.

 

(c)               to
defend, indemnify and hold harmless Landlord for any and all costs, claims,
demands, damages including attorneys’ fees and court costs and investigatory
and laboratory fees, related to any breach of this Lease, including, without
limitation, any adverse health or environmental condition (including without
limitation any violation of Environmental Laws) occurring during the term of
this Lease. This indemnification to Landlord shall survive the termination of
the Lease.

 

(d)              comply
with all reporting obligations imposed under the Federal Emergency Planning and
Community Right to Know Act of 1986 and any similar state or local laws, rules
or regulations.

 

(e)               comply
with all pretreatment requirements imposed by law with respect to the disposal
of waste or effluent into the sanitary sewer system;

 

3

 

(f)               prevent
any dumping, spillage, leakage or runoff of substances regulated by
Environmental Laws (“Regulated Substances”) into dry wells, storm drains, water
retention areas, Common Areas or any areas where such substances could be
absorbed into the soil;

 

(g)              obtain
and maintain all permits required by federal, state or local laws, rules or
regulations;

 

(h)              prepare,
and upon request provide a copy to Landlord of, all response plans required by
applicable law; and

 

(i)                not
keep, store, or use within the Premises any Regulated Substances except small
quantities that are reasonably necessary for Tenant’s business and customarily
associated with office usage, such as copier supplies.

 

3.8              Audit. At any time and from time to time, Landlord may
retain an environmental consultant or engineer to conduct an audit or
environmental assessment of the Premises and Tenant’s compliance with
applicable laws, rules and regulations. Tenant shall extend its full
cooperation with the audit or investigation. If Tenant is found not to be
substantially in compliance with applicable law, all reasonable costs
associated with the audit or assessment shall be paid by Tenant to Landlord
upon demand; otherwise all costs shall be borne by Landlord. In addition, Tenant,
at Landlord’s request from time to time, shall complete such questionnaires and
provide such information with respect to Tenant’s activities and operations on
the Premises as Landlord shall reasonably require.

 

3.9              Parking. Tenant shall lease the following parking
spaces:

 

	
  # of Spaces

  	
   

  	
  Parking
  Area

  	
   

  	
  Price per
  Space

  	
   

  	
  Total
  Prices

  
	
  Up to 6

  	
   

  	
  open unreserved

  	
   

  	
  @ then current bldg rates

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3.10            Keys, Locks and Access Cards.

 

(a)               Landlord
shall furnish Tenant two keys for each corridor door entering the Premises.
Additional keys will be furnished at a charge by Landlord on an order signed by
Tenant or Tenant’s authorized representative. All such keys shall remain the
property of Landlord. No additional locks shall be allowed on any door of the
Premises without Landlord’s permission, and Tenant shall not make, or permit to
be made any duplicate keys. Upon termination of this Lease, Tenant shall
surrender to Landlord all keys of the Premises, and give to Landlord the
combination of all locks for safes, safe cabinets and vault doors, if any, in
the Premises.

 

(b)              Landlord
shall furnish tenant with security access cards for the Building (“Access
Cards”). Access Cards will be furnished at a reasonable charge by Landlord on
an order signed by Tenant or Tenant’s authorized representative. A portion of
the charge for the Access Cards may constitute a deposit, the balance of which
shall compensate Landlord for costs, record keeping and other administrative
items in respect of the Access Cards. All such orders shall be treated as
confidential. All such cards shall remain the property of Landlord. Replacement
Access Cards shall be subject to a reasonable charge. Landlord shall charge
Tenant a

 

4

 

reasonable transfer fee in connection with a change in the registration
of an Access Card. Tenant shall promptly notify Landlord of a lost Access Card.
UNDER NO CIRCUMSTANCES shall tenant label, or in any other way identify, any
Access Cards as to the name of the Building, address of the Building, or
include tenant’s personal or company name. Upon termination of any officer,
employee, or any other authorized representative of Tenant, any Access Card to
said person shall be surrendered to Tenant immediately. It shall be the
Tenant’s obligation to notify Landlord of all terminated access privileges as
soon as possible following such action. Upon termination of this Lease, Tenant
shall surrender to Landlord all registered Access Cards. The card deposit
portion of the charge paid by Tenant, if any, will be refunded by Landlord
within thirty days, provided all Access Cards are in a reusable condition.

 

ARTICLE 4                    SECURITY
DEPOSIT

 

Upon execution of this Lease Tenant shall deposit with Landlord a
security deposit in the amount set forth in Section 1.5 to secure Tenant’s
performance of this Lease. The deposit shall not bear interest, shall not be
required to be maintained in a separate account, and shall be returned, less
any unpaid claims against Tenant, upon the expiration of this Lease and the
surrender of possession of the Premises, to Tenant or the last assignee of
Tenant’s interest. If Tenant has not been in default under the terms of this
Lease for the first thirty-sixth (36th) months of the lease term,
then Landlord shall apply the Security Deposit towards the rental due for the
thirty-seventh (37th) month. If a Tenant default occurs after the
thirty-sixth (36th) month, then upon written notice from Landlord,
Tenant will deposit with Landlord, within thirty days of said notice, a “new”
security deposit of $12,000.00.

 

ARTICLE 5                    RENT

 

5.1              Base Rent. Tenant shall pay to Landlord, in advance,
on the first day of each calendar month, beginning on the first day of the
fourth full calendar month following the Commencement Date (“Rent Commencement
Date”), Base Rent in the amount set forth in Section 1.8.

 

5.2              Late Charges and Interest. Tenant shall
pay to Landlord a late charge equal to ten percent (10%) of the amount due if
any installment of Base Rent or if any other amount payable under this Lease is
not received by Landlord within five (5) days after the due date therefor. The
parties agree that such late charge represents a fair and reasonable estimate
of the costs Landlord will incur by reason of such late payment and that such
late charge constitutes liquidated damages to compensate Landlord for costs and
inconveniences of special handling and disruption of cash flow. The assessment
or collection of a late charge shall not constitute the waiver of a default and
shall not bar the exercise of other remedies for nonpayment. In addition to the
late charge, all amounts not paid within ten days after the date due shall bear
interest from the date due (i) until the happening of an Event of Default, at
the rate of 12% per annum and (ii) thereafter, at the rate set forth in
Section 21.2.

 

5.3              Excise Taxes. Tenant shall pay to Landlord all
rental, sales, use, transaction privilege, or other excise tax levied or
imposed upon, or measured by, any amount payable by Tenant under this Lease.

 

5.4              Obligations Are Rent. All amounts payable to
Landlord under this Lease constitute rent and shall be payable without notice,
demand, deduction or offset to such person and at such place as Landlord may
from time to time designate by written notice to Tenant.

 

5.5              Proration. Base Rent payable with respect to a period
consisting of less than a full calendar month shall be prorated.

 

5

 

ARTICLE 6                    OPERATING
COSTS

 

6.1              Tenant’s Share. Tenant shall pay to Landlord
Tenant’s Proportionate Share of Operating Costs for each calendar year in
excess of the Operating Costs for the Base Year as set forth in
Section 1.10.

 

6.2              Estimates. From time to time Landlord shall by
written notice specify Landlord’s estimate of Tenant’s obligation under
Section 6.1. Tenant shall pay one-twelfth of the estimated annual
obligation on the first day of each calendar month.

 

6.3              Annual Reconciliation. Within 120 days
after the end of each calendar year, Landlord shall provide to Tenant a written
summary of the Operating Costs for the calendar year, determined on an accrual
basis and broken down by principal categories of expense. The statement also
shall set forth Tenant’s Proportionate Share of Operating Costs and shall show
the amounts paid by Tenant on account. Any difference between Tenant’s
obligation and the amounts paid by Tenant on account shall be paid or refunded,
as the case may be, within fifteen days after the statement is provided. Late
delivery of the annual statement of Operating Costs shall not relieve Tenant of
any obligation with respect to payment of Tenant’s Proportionate Share of the
Operating Costs.

 

6.4              Partial Year Proration; Variable Cost
Adjustment. During the first and last years of the Term, Tenant’s
responsibility for Operating Costs shall be adjusted in the proportion that the
number of days of that calendar year during which the Lease is in effect bears
to 365. Tenant’s obligations under this Article 6 for the payment of
Operating Costs during the Lease Term, including the payment of any deficiency
following receipt of the annual statement under Section 6.3, shall survive
the expiration or termination of this Lease.

 

6.5              “Operating Costs” consist of all costs of
operating, maintaining and repairing the Project, including, without
limitation, the following:

 

(a)               Premiums
for property, casualty, liability, rent interruption or other insurance.

 

(b)              Salaries,
wages and other amounts paid or payable for personnel including the Project
manager, superintendent, operation and maintenance staff, and other employees
of Landlord involved in the maintenance and operation of the Project, including
contributions and premiums towards fringe benefits, unemployment and worker’s
compensation insurance, pension plan contributions and similar premiums and
contributions and the total charges of any independent contractors or managers
engaged in the repair, care, maintenance and cleaning of any portion of the
Project.

 

(c)               Cleaning,
including sweeping of parking areas and removal of snow and ice.

 

(d)              Landscaping,
including irrigating, trimming, mowing, fertilizing, seeding, and replacing
plants.

 

(e)               Utilities,
including fuel, gas, electricity, water, sewer, telephone, and other services.

 

(f)               Maintaining,
operating, repairing and replacing equipment.

 

(g)              Other
items of repair or maintenance of the Project.

 

(h)              Policing
and security.

 

(i)                The
cost of the rental of any equipment and the cost of supplies used in the
maintenance and operation of the Project.

 

6

 

(j)                Audit
fees and the cost of accounting services incurred in the preparation of
statements referred to in this Lease and financial statements, and in the
computation of the rents and charges payable by tenants of the Project.

 

(k)               Costs
of capital expenditures incurred for the purpose of reducing Operating Costs,
and costs of improvements, repairs, or replacements which otherwise constitute
Operating Costs under this Article but which are properly charged to
capital accounts shall not be included in Operating Costs in a single year but
shall instead be amortized over their useful lives, as determined by the
Landlord in accordance with generally accepted accounting principles, and only
the annual amortization amount shall be included in Operating Costs.

 

(1)               A
fee for the administration and management of the Project appropriate to the
nature of the Project as reasonably determined by the Landlord from time to
time.

 

(m)              Costs
of alterations or modifications to the Project necessary to comply with
requirements of applicable law; and

 

(n)              General
and special real and personal property taxes and assessments for the Project
and expenses incurred in efforts to reduce taxes or assessments.

 

6.6              Exclusions. Notwithstanding anything to the contrary
in Section 6.5, “Operating Costs” shall not include:

 

(a)               Amounts
reimbursed by other sources, such as insurance proceeds, equipment warranties,
judgments or settlements.

 

(b)              Utilities
or other expenses paid directly by tenants to suppliers or paid by tenants to
Landlord for separately metered or special services such as after-hours air
conditioning services.

 

(c)               Ground
rents.

 

(d)              Payments
on any mortgage or other encumbrance.

 

(e)               Construction
of tenant improvements.

 

(f)               Replacements
(but not repairs) of structural elements.

 

(g)              Leasing
commissions

 

(h)              General
overhead and administrative expenses of Landlord not directly related to the
operation of the Project.

 

ARTICLE 7                    TAXES

 

7.1              Landlord
shall pay before delinquent all general and special real property taxes
assessed or levied on the Project, subject to reimbursement under
Article 6.

 

7.2              Tenant
shall pay before delinquent all taxes levied or assessed upon, measured by, or
arising from (a) the conduct of Tenant’s business; (b) Tenant’s leasehold
estate; or (c) Tenant’s property.

 

7

 

ARTICLE 8                    INSURANCE
AND INDEMNITY

 

8.1              Insurance Policies. Tenant shall, at its
expense, take out and keep in full force and effect the following insurance:

 

(a)               All-risk
property insurance including sprinkler leakage in an amount equal to the full
replacement cost of all property owned by Tenant.

 

(b)              Business
interruption insurance with a limit sufficient to insure not less than a six
month loss of income.

 

(c)               Plate
glass insurance coverage.

 

(d)              Comprehensive
liability insurance applying to the use and occupancy of the Premises and the
business operated by Tenant, including coverage for “premises/operations”,
“products and completed operations”, and “blanket contractual” liabilities,
written on an occurrence basis with limits not less than $1,000,000, naming
Landlord, its agents, affiliates and contract property manager as additional
insureds.

 

(e)               At
all times during the Lease Term, Tenant shall procure and maintain workers’
compensation insurance in accordance with applicable law and employer’s
liability insurance with a limit not less than $1,000,000 bodily injury each
accident; $1,000,000 bodily injury by disease - each person; and $1,000,000
bodily injury by disease - policy limit.

 

8.2              Policy Requirements. Tenant’s insurance
policies shall:

 

(a)               where
applicable, contain the mortgagee’s standard mortgage clause and in any event a
waiver of any subrogation rights which Tenant’s insurers may have against
Landlord and against those for whom the Landlord is in law responsible;

 

(b)              be
taken out with insurers reasonably acceptable to Landlord and be in a form
satisfactory from time to time to Landlord;

 

(c)               be
non-contributing and apply as primary and not as excess to, any other insurance
available to the Landlord;

 

(d)              not
be invalidated with respect to the interests of the Landlord and the holder of
any encumbrance on the Project by reason of any breach or violation by Tenant
of any warranties, representations, declarations or conditions contained in the
policies;

 

(e)               contain
an undertaking by the insurers to notify the Landlord, and the holder of any
encumbrance on the Project designated by Landlord, in writing not less than
thirty days prior to any material change, cancellation or termination; and

 

(f)               be
satisfactory in form, substance, limits, deductibles and retentions to
Landlord.

 

8.3              Evidence of Coverage. Tenant shall deliver
to Landlord certificates of insurance or, if required by Landlord, certified
copies of each such insurance policy: (a) as soon as practicable after the
placing of the required insurance and (b) periodically thereafter before
expiration, renewal or replacement of the policies then in force. No review or
approval of any such insurance certificate by Landlord shall derogate or
diminish Landlord’s rights or Tenant’s obligations. Tenant shall not take
possession of the Premises without having complied with the requirements of
this Section.

 

8

 

8.4              Indemnity and Exculpation. Tenant shall
defend, indemnify and hold Landlord harmless, regardless of any negligence
imputed to Landlord as owner of the real property involved in an injury, from
and against any and all loss, claims, actions, damages, liability and expense
in connection with loss of life, personal injury, damage to property or any
other loss or injury whatsoever arising directly or indirectly from or out of
this Lease, or any occurrence in, upon or at the Premises, or the occupancy or
use by the Tenant of the Premises, or any act or omission of Tenant, its
agents, servants, employees or invitees. Tenant shall not be required, however,
to indemnify Landlord against a claim arising from Landlord’s active negligence
or willful misconduct. Landlord shall not be liable and Tenant hereby waives
all claims for any damage to any property in or about the Premises or the
Project or injury or inconvenience to Tenant’s business, by or from any cause
whatsoever (including without limiting the foregoing, rain or water leakage of
any character from the roof, windows, walls, basement, pipes, plumbing works or
appliances). Tenant acknowledges that it is protecting itself against loss by
maintaining appropriate insurance coverage.

 

8.5              Landlord’s Policies. No insurable interest is
conferred upon Tenant under any policies of insurance carried by Landlord, and
Tenant shall not be entitled to share or receive proceeds of any insurance
policy carried by Landlord.

 

ARTICLE 9                    FIRE AND
CASUALTY

 

9.1              Termination Rights. If all or part of the
Premises is rendered untenantable by damage from fire or other casualty which
in Landlord’s opinion cannot be substantially repaired (employing normal
construction methods without overtime or other premium) under applicable laws
and governmental regulations within 180 days from the date of the fire or other
casualty, then either Landlord or Tenant may elect to terminate this Lease as
of the date of such casualty by written notice delivered to the other not later
than ten days after notice of such determination is given by Landlord.

 

9.2              Restoration. If in Landlord’s opinion the damage
caused by the fire or casualty can be substantially repaired (employing normal
construction methods without overtime or other premium) under applicable laws
and governmental regulations within 180 days from the date of the fire or other
casualty, or if neither party exercises its right to terminate under
Section 9.1, Landlord shall, but only to the extent that insurance
proceeds are available therefor, repair such damage other than damage to
furniture, chattels or trade fixtures which do not belong to the Landlord,
which shall be repaired forthwith by Tenant at its own expense.

 

9.3              Abatement. During any period of restoration, the Base
Rent payable by Tenant shall be proportionately reduced to the extent that the
Premises are thereby rendered untenantable from the date of casualty until
completion by Landlord of the repairs to the Premises (or the part thereof
rendered untenantable) or until Tenant again uses the Premises (or the part
thereof rendered untenantable) in its business, whichever first occurs.

 

9.4              Demolition of Project. Notwithstanding
anything to the contrary in Section 9.1, if all or a substantial part
(whether or not including the Premises) of the Building is rendered
untenantable by damage from fire or other casualty to such a material extent
that in the opinion of Landlord the Project must be totally or partially
demolished, whether or not to be reconstructed in whole or in part, Landlord may
elect to terminate this Lease as of the date of the casualty (or on the date of
notice if the Premises are unaffected by such casualty) by written notice
delivered to Tenant not more than sixty days after the date of the fire or
casualty.

 

9.5              Agreed Remedies.
Except as specifically provided in this Article, there shall be no reduction of
rent and Landlord shall have no liability to Tenant by reason of any injury to
or interference with Tenant’s business or property arising from fire or other
casualty, howsoever caused, or from the making of any repairs resulting
therefrom in or to any portion of the Project or the Premises. Tenant waives
any

 

9

 

statutory or other rights of termination by
reason of fire or other casualty, it being the intention of the parties to
provide specifically and exclusively in this Article for the rights of the
parties with respect to termination of this Lease as a result of a casualty.

 

ARTICLE 10                   CONDEMNATION

 

10.1            Automatic
Termination. If during the Term all or any part of the Premises is
permanently taken for any public or quasi-public use under any statute or by
right of eminent domain, or purchased under threat of such taking, this Lease
shall automatically terminate on the date on which the condemning authority
takes possession of the Premises.

 

10.2            Optional
Termination. If during the term any part of the Project is taken or
purchased by right of eminent domain or in lieu of condemnation, whether or not
the Premises are directly affected, then if in the reasonable opinion of
Landlord substantial alteration or reconstruction of the Project is necessary
or desirable as a result thereof, or the amount of parking available to the
Project is materially and adversely affected, Landlord shall have the right to
terminate this Lease by giving Tenant at least thirty days written notice of
such termination.

 

10.3            Award. Landlord
shall be entitled to receive and retain the entire award or consideration for
the affected lands and improvements and Tenant shall not have or advance any
claims against Landlord for the value of its property or its leasehold estate
or the unexpired term of this Lease or for costs of removal or relocation or
business interruption expense or any other damages arising out of the taking or
purchase. Nothing herein shall give Landlord any interest in or preclude Tenant
from seeking and recovering on its own account from the condemning authority
any award of compensation attributable to the taking or purchase of Tenant’s chattels
or trade fixtures or attributable to Tenant’s relocation expenses provided that
any such separate claim by Tenant shall not reduce or adversely affect the
amount of Landlord’s award. If any such award made or compensation paid to
Tenant specifically includes an award or amount for Landlord, Tenant shall
promptly account therefor to Landlord.

 

ARTICLE 11                   MAINTENANCE

 

11.1            By Tenant.
Tenant shall maintain equipment, alterations or other improvements whether
constructed for Tenant’s initial occupancy or made subsequently pursuant to
Article 15, such as supplemental or special cooling systems not consistent
with building standard tenant improvements as established by the Landlord. If
Tenant does not comply with its obligations under this Article, Landlord may,
but need not, make such repairs and replacements or obtain such service
contracts, and Tenant shall pay Landlord the cost thereof upon demand. Tenant
also shall make such repairs and alterations necessary to comply with the
requirements of any governmental or quasi-governmental authority having
jurisdiction.

 

11.2            By Landlord.
Landlord shall maintain the Premises and the improvements thereon (including
all doors, plate glass, and heating, air conditioning, ventilation, electrical
and plumbing systems serving the Premises), in good condition and repair.
Landlord shall provide janitorial services to the Premises five nights per
week. Landlord shall maintain the Project and all Common Areas in good
condition and repair in accordance with standards then prevailing for
comparable properties of like age and character. Landlord shall repair
structural defects in roof or walls and any common utility facilities in the
Common Areas. Landlord shall not be liable or responsible for breakdowns or
temporary interruptions in access or utilities nor for interference with
Tenant’s business or Tenant’s access to the Premises during the course of
repairs or remedial work.

 

10

 

ARTICLE 12                   UTILITIES

 

Landlord shall supply the following services to assure Tenant’s
operations in the Premises 24 hours/day, 365 days/year:

 

A.               Electrical: Landlord shall provide 800
amps of 480 volt three phase electrical power for Tenant’s suite (#500). Said
power will brought into one of the Project’s electrical rooms, as shown on
Exhibit “E”, and it is Tenant’s responsibility and cost to distribute said
power from the electrical room to and throughout their suite. Tenant shall
obtain its electricity directly from Landlord, which shall be separately
metered by a meter installed by Landlord at its cost, with no mark up.

 

B.               Heat and air conditioning: SEE
ARTICLE 27(D)

 

C.               Hot and cold water from the regular
building outlets for lavatory and restrooms and for drinking purposes.

 

D.               Passenger elevator service in common
with other tenants to be provided by automatic elevators. Landlord shall have
the right to restrict to use of elevators for freight purposes to the freight
elevator and to hours to be reasonably determined by Landlord so long as
elevator is reasonably available (24 hours/day, 7 days/week), without charge,
for Tenant’s construction purposes. Landlord shall have the right to limit the
number of elevators to be in operation on Saturdays, Sundays and holidays.

 

E.                Maintenance in good order, condition
and repair of the parking facilities and all driveways leading thereto.
Landlord shall keep and maintain the landscaped area and parking facilities in
a neat and orderly condition. Landlord reserves the right to designate areas,
in a non-discriminatory manner, of the appurtenant parking facilities where
Tenant, its agents, employees and invitees shall park and may exclude Tenant
and its agents, employees and invitees from parking in other areas as
designated by Landlord; provided, however, Landlord shall not be liable to
Tenant for the failure of any tenant or its invitees, employees and invitees
from parking in other areas as designated by Landlord; provided, however,
Landlord shall not be liable to Tenant for the failure of any tenant or its
invitees, employees, agents or customers to abide by Landlord’s designations or
restrictions. Tenant is aware that Landlord may be required to designate
certain parking stalls due to governmental request or order to accommodate car
or van poolers.

 

Landlord acknowledges that Tenant’s operations require 24-hour/day,
7/days/week operation. As a consequence thereof, Landlord shall give to Tenant
reasonable advance notice of any planned shut downs of any Building system for
scheduled routine maintenance and/or of repairs, alterations, additions or
improvements in or to the Building. Landlord shall make every effort to
minimize inconvenience to Tenant by rescheduling the times for the performance
of such work upon reasonable request of Tenant, provided that any increase in
costs incurred by Landlord as a result of such rescheduling shall be paid for
by Tenant within thirty (30) days after Tenant’s receipt of Landlord’s written
statement and supporting documentation.

 

ARTICLE 13                  LANDLORD
RIGHT OF ENTRY

 

Upon reasonable notice to Tenant, Landlord shall have access to the
Premises for purposes of showing the Premises to current or prospective
lenders, to prospective purchasers of the Project, and, during the twelve-month
period preceding the expiration of the term of this Lease, to prospective
tenants. Landlord shall at all

 

11

 

times have access to the Premises for purposes of inspection and
performing Landlord’s obligations and exercising its rights under this Lease.

 

ARTICLE 14                  SIGNS

 

Tenant shall not place or permit to be placed any sign, picture,
advertisement, notice, lettering or decoration on any part of the outside of
the Premises or anywhere in the interior of the Premises which is visible from
the outside of the Premises without Landlord’s prior written approval. All of
Tenant’s signs shall be subject to Landlord’s prior approval.

 

ARTICLE 15                  TENANT
ALTERATIONS

 

15.1            Tenant Alterations. Tenant may from time to
time at its own expense make changes, additions and improvements in the
Premises, provided that any such change, addition or improvement shall:

 

(a)               comply
with the requirements of any governmental or quasi-governmental authority
having jurisdiction (including, without limitation, the Americans with
Disabilities Act), with the requirements of Landlord’s insurance carriers, and
with Landlord’s safety and access requirements, including restrictions on
flammable materials and elevator usage;

 

(b)              not
be commenced until Landlord has received satisfactory evidence that all
required permits have been obtained;

 

(c)               be
made only with the prior written consent of Landlord (which may be withheld in
Landlord’s sole discretion, to the extent it relates in Landlord’s opinion to
the structure or electrical, HVAC, plumbing or sprinkler systems of the
Building, but which otherwise shall not be unreasonably withheld);

 

(d)              be
constructed in good workmanlike manner and conform to complete working drawings
prepared by a licensed architect and submitted to and approved by Landlord;

 

(e)               be
of a quality that equals or exceeds the then current standard for the Project
and comply with all building, fire and safety codes;

 

(f)               be
carried out only during hours approved by Landlord by licensed contractors
selected by Tenant and approved in writing by Landlord, who shall deliver to
Landlord before commencement of the work performance and payment bonds as well
as proof of workers’ compensation and general liability insurance coverage,
including coverage for completed operations and contractual liability, with
Landlord and its agents and designees named as additional insureds, in amounts,
with companies, and in form reasonably satisfactory to Landlord, which shall
remain in effect during the entire period in which the work shall be carried
out. Notwithstanding the foregoing, only subcontractors selected or designated
by Landlord may be used to make connection with the Project’s main electrical,
plumbing or HVAC systems, except connections to circuit panels, pipes or ducts
within the Premises; and

 

(g)              upon
completion, be shown on accurate “as built” reproducible drawings in the form
of reverse sepia transparencies or mylars delivered to Landlord.

 

15.2            Tenant Installations. Tenant may install in
the Premises its usual trade fixtures and personal property in a proper manner,
provided that no installation shall interfere with or damage the mechanical or
electrical systems or the structure of the Building. Landlord may require that
any work that may affect structural elements

 

12

 

or mechanical, electrical, heating, air conditioning, plumbing or other
systems be performed by Landlord at Tenant’s cost or by a contractor designated
by Landlord.

 

15.3            Mechanics Liens. Tenant shall pay before
delinquency all costs for work done or caused to be done by Tenant in the
Premises which could result in any lien or encumbrance on Landlord’s interest
in the Project or any part thereof, shall keep the title to the Project and
every part thereof free and clear of any lien or encumbrance in respect of such
work, and shall indemnify and hold harmless Landlord and Landlord’s agents and
employees against any claim, loss, cost, demand or legal or other expense,
whether in respect of any lien or otherwise, arising out of the supply of
material, services or labor for such work. Tenant shall immediately notify
Landlord of any such lien, claim of lien or other action of which it has or
reasonably should have knowledge and that affects the title to the Project or
any part thereof, and shall cause the same to be removed by bonding or
otherwise within five days, failing which Landlord may take such action as
Landlord deems necessary to remove same and the entire cost thereof shall be
immediately due and payable by Tenant to Landlord. If provided by applicable
law, Tenant shall cause such postings to be made and notices given as shall
prevent any mechanics’ lien for work done for Tenant from attaching to the
Project.

 

ARTICLE 16                  ASSIGNMENT
AND SUBLETTING

 

16.1            Consent Required. Tenant shall not assign its
interest under this Lease or sublet all or any part of the Premises without
Landlord’s prior written consent, which shall not be unreasonably withheld.
Tenant shall not at any time pledge, hypothecate, mortgage or otherwise
encumber its interest under this Lease as security for the payment of a debt or
the performance of a contract. Tenant shall not permit its interest under this
Lease to be transferred by operation of law. Any purported assignment or
sublease made without Landlord’s consent shall be void.

 

16.2            Requests for Approval. Landlord shall be
under no obligation to decide whether consent will be given or withheld unless
Tenant has first provided to Landlord: (a) the name and legal composition of
the proposed assignee or subtenant and the nature of its business; (b) the use
to which the proposed assignee or subtenant intends to put the Premises; (c)
the terms and conditions of the proposed assignment or sublease and of any
related transaction between Tenant and the proposed assignee or subtenant; (d)
information related to the experience, integrity and financial resources of the
proposed assignee or subtenant; (e) such information as Landlord may request to
supplement, explain or provide details of the matters submitted by Tenant pursuant
to subparagraphs (a) through (d); and (f) reimbursement for all costs incurred
by Landlord, including attorneys’ fees, in connection with evaluating the
request and preparing any related documentation.

 

16.3            Continued Responsibility. Tenant shall
remain fully liable for performance of this Lease, notwithstanding any
assignment or sublease, for the entire Lease Term.

 

16.4            Excess Proceeds. If consent to an assignment
or sublease is given, Tenant shall pay to Landlord, as additional rent, all
amounts received from the assignee or subtenant in excess of the amounts
otherwise payable by Tenant to Landlord with respect to the space involved,
measured on a per square foot basis.

 

16.5            Limitations. Without limiting appropriate grounds
for withholding consent, it shall not be unreasonable for Landlord to withhold
consent if the proposed assignee or subtenant is a tenant in another building
owned by Landlord or by an affiliate of Landlord or of any of Landlord’s
constituent partners or principals or if the use by the proposed assignee or
subtenant would contravene this Lease or any restrictive use covenant or
exclusive rights granted by Landlord or if the proposed assignee or subtenant
does not intend to occupy the Premises for its own use or if the nature of the
proposed assignee or subtenant is not compatible with the Project.

 

16.6            No Waiver. No consent shall constitute consent to any
further assignment or subletting.

 

13

 

16.7            Transfer by Landlord. Upon a sale or other
transfer of the Project (or a portion thereof containing the Premises) by
Landlord, Landlord’s interest in this Lease shall automatically be transferred
to the transferee, the transferee shall automatically assume all of Landlord’s
obligations under this Lease accruing from and after the date of transfer, and
the transferor shall be released of all obligations under this Lease arising
after the transfer. Tenant shall upon request attorn in writing to the
transferee.

 

ARTICLE 17                  SUBORDINATION
AND ATTORNMENT

 

17.1            Subordination. This Lease is and shall be subject
and subordinate in all respects to all existing and future mortgages or deeds
of trust now or hereafter encumbering the Project or any part hereof. The
holder of any mortgage or deed of trust may elect to be subordinate to this
Lease.

 

17.2            Lender Protection. Upon a transfer in
connection with foreclosure or trustee’s sale proceedings or in connection with
a default under an encumbrance, whether by deed to the holder of the
encumbrance in lieu of foreclosure or otherwise, Tenant, if requested, shall in
writing attorn to the transferee, but the transferee shall not be:

 

1                 subject
to any offsets or defenses which Tenant might have against Landlord; or

 

2                 bound
by any prepayment by Tenant of more than one month’s installment of rent; or

 

3                 subject
to any liability or obligation of Landlord except those arising after the
transfer.

 

17.3            Documentation. The subordination provisions of
this Article shall be self-operating and no further instrument shall be
necessary. Nevertheless Tenant, on request, shall execute and deliver any and
all instruments further evidencing such subordination.

 

17.4            Other Transactions. Landlord may at any time
and from time to time grant, receive, dedicate, relocate, modify, surrender or
otherwise deal with easements, rights of way, restrictions, covenants,
equitable servitudes or other matters affecting the Project without notice to
or consent by Tenant.

 

ARTICLE 18                  ESTOPPEL
CERTIFICATES

 

Tenant shall at any time within ten days after written request from
Landlord execute, acknowledge and deliver to Landlord a statement in writing:
(a) certifying that this Lease is unmodified and in full force and effect (or,
if modified, stating the nature of such modification and certifying that this
Lease, as so modified, is in full force and effect) and the date to which the
rent and other charges are paid in advance, if any; (b) confirming the
commencement and expiration dates of the term; (c) confirming the amount of the
security deposit held by Landlord; (d) acknowledging that there are not, to
Tenant’s knowledge, any uncured defaults on the part of Landlord hereunder, or
specifying such defaults if any are claimed; and (e) confirming such other
matters as to which Landlord may reasonably request confirmation. Any such
statement may be conclusively relied upon by a prospective purchaser or
encumbrancer of the Premises or the Project. If Landlord desires to finance or
refinance the Project, Tenant hereby agrees to deliver to any lender designated
by Landlord such financial statements of Tenant as may be reasonably required
by such lender. Such statement shall include the past three years’ financial
statements of Tenant. All such financial statements shall be received by
Landlord in confidence and shall be used only for the purposes herein set
forth.

 

14

 

ARTICLE 19                  QUIET
ENJOYMENT

 

If Tenant pays the rent and observes and performs the terms, covenants
and conditions contained in this Lease, Tenant shall peaceably and quietly hold
and enjoy the Premises for the Term without hindrance or interruption by
Landlord, or any other person lawfully claiming by, through or under Landlord
unless otherwise permitted by the terms of this Lease. Tenant acknowledges that
the exercise by the Landlord of any of the rights conferred on Landlord under
this Lease and the entry upon the Premises for or in connection with such
purposes shall not be deemed to be a constructive or actual eviction of the
Tenant and shall not be considered to be a breach of Landlord’s covenant of
quiet enjoyment.

 

ARTICLE 20                  SURRENDER AND
HOLDOVER

 

20.1            Surrender. Upon the expiration or termination of this
Lease or of Tenant’s right to possession, Tenant shall surrender the Premises
in a clean undamaged condition and shall remove all of Tenant’s equipment,
fixtures and property and repair all damage caused by the removal. Such removal
shall include, without limitation, the removal of all telephone wire located
within the Premises and from the Premises to the central telephone box for the
Building. Tenant shall not remove permanent improvements that were provided by
Landlord at the commencement of this Lease and shall not remove permanent
improvements later installed by Tenant unless directed to do so by Landlord.

 

20.2            Holdover. If Tenant holds over without Landlord’s
consent, Tenant shall, at Landlord’s election, be a tenant at will or a tenant
from month-to-month. In either case rent shall be payable monthly in advance at
a rate equal to one and one-half (150%) times the rate in effect immediately
before the holdover began. A holdover month-to-month tenancy may be terminated
by either party as of the first day of a calendar month upon at least ten days’
prior notice. A holdover tenancy at will is terminable at any time by either
party without notice, regardless of whether rent has been paid in advance. Upon
a termination under this Section, unearned rent shall be refunded following the
surrender of possession provided Tenant is not otherwise in breach of this
Lease.

 

ARTICLE 21                  BREACH,
DEFAULT, AND REMEDIES

 

21.1            Default. The following shall constitute “Events of
Default”:

 

(a)               Tenant’s
failure to pay rent or any other amount due under this Lease within five days
after notice of nonpayment; or

 

(b)              Tenant’s
failure to execute, acknowledge and return a subordination agreement under
Article 17 or an estoppel certificate under Article 18 within ten
days after request; or

 

(c)               Tenant’s
failure to perform any other obligation under this Lease within fifteen days
after notice of nonperformance; provided, however, that if the breach is of
such a nature that it cannot be cured within fifteen days, no Event of Default
shall be deemed to have occurred by reason of the breach if cure is commenced
promptly and diligently pursued to completion within a period not longer than
ninety days; and provided further, that in the event of a breach involving an
imminent threat to health or safety, Landlord may in its notice of breach
reduce the period for cure to such shorter period as may be reasonable under
the circumstances; or

 

(d)              Tenant
vacates, abandons, or otherwise ceases to use the Premises on a substantial
continuing basis except temporary absence excused by reason of fire, casualty,
failure of services or other cause wholly

 

15

 

beyond Tenant’s control; for these purposes, absence for five
consecutive business days shall conclusively be deemed an abandonment.

 

21.2            Remedies. Upon the occurrence of an Event of Default,
Landlord, at any time thereafter without further notice or demand may exercise
any one or more of the following remedies concurrently or in succession:

 

(a)               Terminate
Tenant’s right to possession of the Premises by legal process or otherwise,
with or without terminating this Lease, and retake exclusive possession of the
Premises.

 

(b)              From
time to time relet all or portions of the Premises, using reasonable efforts to
mitigate Landlord’s damages. In connection with any reletting, Landlord may
relet for a period extending beyond the term of this Lease and may make
alterations or improvements to the Premises without releasing Tenant of any
liability. Upon a reletting of all or substantially all of the Premises,
Landlord shall be entitled to recover all of its then prospective damages for
the balance of the Lease Term measured by the difference between amounts
payable under this Lease and the anticipated net proceeds of reletting.

 

(c)               From
time to time recover accrued and unpaid rent and damages arising from Tenant’s
breach of the Lease, regardless of whether the Lease has been terminated,
together with applicable late charges and interest at the rate of 18% per annum
or the highest lawful rate, whichever is less.

 

(d)              Enforce
the statutory Landlord’s lien on Tenant’s property.

 

(f)               Recover
all costs, expenses and attorneys’ fees incurred by Landlord in connection with
enforcing this Lease, recovering possession, reletting the Premises or
collecting amounts owed, including, without limitation, costs of alterations,
brokerage commissions, and other costs incurred in connection with any
reletting.

 

(g)              Perform
the obligation on Tenant’s behalf and recover from Tenant, upon demand, the
entire amount expended by Landlord plus 20% for special handling, supervision,
and overhead.

 

(h)              Pursue
other remedies available at law or in equity.

 

21.3            Subtenancies. Upon a termination of Tenant’s right
to possession, whether or not this Lease is terminated: (a) subtenancies and
other rights of persons claiming under or through Tenant shall be terminated or
(b) Tenant’s interest in such subleases or other arrangements shall be assigned
to Landlord. Landlord may separately elect termination or assignment with
respect to each such subtenancy or other matter.

 

ARTICLE 22                  LANDLORD
LIABILITY

 

Notwithstanding anything to the contrary in this Lease, neither
Landlord nor Landlord’s directors, officers, shareholders, employees, agents,
constituent partners, beneficiaries, trustees, representatives, successors or
assigns (collectively, “Landlord’s Affiliates”) shall be personally responsible
or liable for any representation, warranty, covenant, undertaking or agreement
contained in the Lease, and the sole right and remedy of the Tenant or any
subsequent sublessee or assignee shall be against Landlord’s interest in the
Project. Neither Tenant nor any subsequent sublessor or assignee shall seek to
obtain any judgment imposing personal liability against Landlord, Landlord’s
Affiliates, or their successors or assigns nor execute upon any judgment or
place any lien against any property other than Landlord’s interest in the
Project.

 

16

 

ARTICLE 23                  NOTICES

 

Any notice from one party to the other shall be in writing and shall be
deemed duly served: (a) if delivered personally to a responsible employee of
Tenant, if sent by facsimile with receipt acknowledged, or if mailed by
registered or certified mail addressed to Tenant at the Premises or (b) if
mailed by registered or certified mail to Landlord at the address set forth in
Section 1.15 or such other address as Landlord may designate. Any notice
to Tenant prior to Tenant’s taking possession of the Premises, however, shall
instead be sent to the address set forth in Section 1.14. Any notice shall
be deemed to have been given when mailed, if mailed, when faxed, if faxed, and
when delivered, if personally delivered.

 

ARTICLE 24                  BROKERAGE

 

Tenant warrants and represents that no broker or other person is
entitled to claim a commission, broker’s fee or other compensation in
connection with this Lease except: (i) brokers or other persons that Landlord
may have retained or employed directly, and (ii) brokers whom Tenant has
previously specifically designated in writing to Landlord as Tenant’s
representative as listed in Section 1.16. Tenant shall defend, indemnify
and hold Landlord harmless from all claims or liabilities arising from any
breach of the foregoing representation and warranty.

 

ARTICLE 25                  RELOCATION

 

INTENTIONALLY DELETED

 

ARTICLE 26                  GENERAL

 

26.1            Severability. If any term, covenant or condition
of this Lease, or the application thereof, is to any extent held or rendered
invalid, it shall be and is hereby deemed to be independent of the remainder of
the Lease and to be severable and divisible therefrom, and its invalidity,
unenforceability or illegality shall not affect, impair or invalidate the
remainder of the Lease or any part thereof.

 

26.2            No Waiver. The waiver by Landlord of any breach of
any term, covenant or condition contained in this Lease shall not be deemed to
be a waiver of such term, covenant or condition or of any subsequent breach of
the same or of any other term, covenant or condition contained in this Lease.
The subsequent acceptance of rent by Landlord shall not be deemed to be a waiver
of any preceding breach by Tenant of any term, covenant or condition of this
Lease, regardless of Landlord’s knowledge of such preceding breach at the time
of acceptance of rent. No term, covenant or condition of this Lease shall be
deemed to have been waived by Landlord unless such waiver is in writing by
Landlord.

 

26.3            Effect of Payment. No payment by Tenant or
receipt by Landlord of a lesser amount than the monthly payment of rent herein
stipulated is deemed to be other than on account of the earliest stipulated
rent, nor is any endorsement or statement on any check or any letter
accompanying any check or payment of rent deemed an acknowledgment of full
payment or accord and satisfaction, and Landlord may accept and cash any check
or payment without prejudice to Landlord’s right to recover the balance of the
rent due and pursue any other remedy provided in this Lease.

 

26.4            Delay. If either
party is delayed or hindered in or prevented from the performance of any term,
covenant or act required hereunder by reasons of strikes, labor troubles,
inability to procure materials or services, power failure, restrictive
governmental laws or regulations, riots, insurrection, sabotage, rebellion,
war, act of God, or other reason whether of a like nature or not that is beyond
the control of

 

17

 

the party affected, financial inability
excepted, then the performance of that term, covenant or act is excused for the
period of the delay and the party delayed shall be entitled to perform such
term, covenant or act within the appropriate time period after the expiration
of the period of such delay. Nothing in this Section, however, shall excuse
Tenant from the prompt payment of any amount payable under this Lease nor from the
consequences of Tenant Delay as provided in Exhibit C (if attached).

 

26.5            Lender Notice.
In the event of a material default by Landlord of a sufficiently serious nature
that Tenant considers the utility of the Premises to Tenant to be significantly
impaired, Tenant shall give written notice of the default to Landlord and shall
simultaneously send a copy of the notice to the holder of any encumbrance, the
name and address of whom has previously been furnished in writing to Tenant. If
Landlord fails to cure the default within a reasonable time, Tenant shall send
a second notice to that effect to the holder of the encumbrance, with a copy to
Landlord, and the holder of the encumbrance then shall have a reasonable time,
not less than thirty days, to cause the default to be remedied.

 

26.6            No Offer. The
submission of this Lease for examination does not constitute a reservation of
an option to lease the Premises, and this Lease becomes effective as a lease
only upon its execution and delivery by Landlord and Tenant.

 

26.7            Successors.
All rights and liabilities under this Lease extend to and bind the successors
and assigns of Landlord and permitted successors and assigns of Tenant. No
rights, however, shall inure to the benefit of any transferee of the Tenant unless
the transfer has been consented to by the Landlord in writing as provided in
Section 16.1. If there is more than one Tenant, they are all bound jointly
and severally by the terms, covenants and conditions of this Lease.

 

26.8            Integration.
This Lease and the Exhibits hereto attached, set forth all the covenants,
promises, agreements, conditions and understandings between Landlord and Tenant
concerning the Premises and there are no other covenants, promises, agreements,
conditions or understandings, either oral or written, between them. No
alteration, amendment or addition to this Lease shall be binding upon Landlord
or Tenant unless in writing and signed by Tenant and Landlord.

 

26.9            WAIVER OF JURY
TRIAL. IN ANY LITIGATION BETWEEN LANDLORD AND TENANT, THE MATTER SHALL
BE DECIDED BY A JUDGE SITTING WITHOUT A JURY, AND TENANT ACCORDINGLY WAIVES ITS
RIGHT TO A JURY TRIAL.

 

26.10          Governing Law.
This Lease shall be construed in accordance with and governed by the laws of
the State of Arizona.

 

26.11          Deadlines Enforceable.
Time is of the essence of this Lease and of every part hereof.

 

26.12          Counterparts; This Lease may be executed in
counterparts, which together shall constitute a single instrument.

 

26.13          Additional
Provisions:

 

1. Tenant’s Option to Renew

 

(A)             Provided that this Lease is then in full
force and effect and Tenant is not in default, on the date of exercise of this
Option, hereunder after notice and the expiration of any applicable grace
period, Tenant shall have the option to extend the Term for two (2) additional
periods of five (5) years each (the “Extension Term(s)”). The Extension Term(s)
shall commence on the day after the initial

 

18

 

Lease term and the prior Extension Term (if any) expires (“Expiration
Date(s)”) and shall expire on the fifth (5th) anniversary of the Expiration
Date(s) unless the Extension Term(s) shall sooner end pursuant to this Lease.

 

(B)              The terms and conditions shall be
identical to those in the primary lease except for the rental rate, which shall
be the market rental rate determined by Landlord and Tenant based on the rental
rate allowances and concessions for comparable buildings in the same immediate
geographic area. Landlord shall provide Tenant a proposed rental rate at least
nine (9) months but not more than twelve (12) months prior to the termination
of the Lease term. Tenant will accept/reject such offer no less than six (6)
months prior to the termination of the Lease. If Landlord and Tenant are unable
to agree on a market rental rate, allowances and concessions, each shall hire a
licensed commercial real estate broker with at least ten (10) years of
experience in the local commercial real estate market and those brokers will
hire a third licensed commercial real estate broker with the same experience in
the local commercial real estate market to all determine a market rate,
allowances and concessions. The average rate, allowances and concessions
determined by these three (3) brokers will be considered the market rental rate
and improvement allowance for the purposes of the Renewal Option.

 

(C)              Promptly after the rent has been
determined, Landlord and Tenant shall execute, acknowledge and deliver an
agreement setting forth the rent for the Extension Term(s), as finally
determined, provided that the failure of the parties to do so shall not affect
their respective rights and obligations under the Lease.

 

Notwithstanding any provisions in Sections 1-26 of the Lease, Landlord
and Tenant hereby agree as follows:

 

27.              Services.

 

A.     Landlord’s
Obligations. Landlord shall use all reasonable efforts to furnish to Tenant
(1) water at those points of supply provided for general use of tenants of the
Building in the common areas thereof; (2) heated and refrigerated air
conditioning (“HVAC”) as appropriate to the common areas of the Building, at
such temperatures and in such amounts as are standard for comparable buildings
in the vicinity of the Building; (3) janitorial service to the common areas of
the Building on weekdays, other than holidays, for Building standard
installations and such window washing as may from time to time be reasonably
required; and (4) elevator(s) for ingress and egress to the floor on which the
Premises are located, in common with other tenants, provided that Landlord may
reasonably limit the number of operating elevators during non-business hours
and holidays. Landlord shall maintain the common areas of the Building in
reasonably good order and condition.

 

B.      Electrical Service.
All electrical power for the Premises and for the operation of Tenant’s
equipment shall be submetered by Landlord, and, be furnished, installed and
maintained at Tenant’s sole expense. Without limiting the generality of the
foregoing, Tenant, at its sole cost and expense, shall pay the cost of all
equipment, meters, switches, transformers, feeders, risers, and wiring required
to provide electrical service to the Premises. The installation of all
electrical equipment shall be done only in substantial accordance with plans
and specifications that have been previously submitted to and approved by
Landlord in writing. Whenever Tenant is required to pay the cost of any
electrical equipment under the foregoing provisions, the cost thereof shall
include the cost of installation, operation, use and maintenance of such
electrical equipment. If

 

19

 

electrical service to the Premises is submetered, the submeter shall be
read by Landlord and Tenant shall pay to Landlord, within ten (10) days after Tenant’s
receipt of an invoice therefore the actual cost of such electrical service
based on rates charged for such service by the utility company furnishing such
service, including all fuel adjustment charges, demand charges and taxes.

 

C.      Restoration
of Services/Tenant Self-Help Remedy. Landlord shall use good faith best
efforts to restore any service described in Section 27(a) that becomes
unavailable interrupted, discontinued or insufficient; however, such
unavailability shall not render Landlord liable for any damages caused thereby,
be a constructive eviction of Tenant, constitute a breach of any implied
warranty, or, except as provided in the next sentence, entitle Tenant to any
abatement of Tenant’s obligations hereunder. If, however, Tenant is prevented
from using the Premises for more than 4 consecutive business days because of
the unavailability of any such service, then Tenant shall, as its exclusive
remedy be entitled to a reasonable abatement of Rent for each consecutive day
that Tenant is so prevented from using the Premises. Tenant Self-Help Remedy:
if the Landlord shall fail to restore said service within five (5) days of its
interruption, then Tenant may make perform such obligation and offset the
amount of the reasonable cost of such performance against any base rent,
additional rent or any other amounts payable be Tenant under this Lease.

 

D.               Generator & HVAC Access. Landlord will install
its own generator system, Tenant shall be granted the right to purchase up to
500 KW of power from the Building’s generator based on the initial fee and
monthly charges specified below. Tenant shall have the right to install a
minimum of 2-4” conduits to connect the Premises to the generator power
connection point. Tenant shall have the right to utilize up to 60 tons of
capacity from the Building’s chilled water system based on the monthly charges
specified below. Landlord shall “stub” the chilled water lines to a mutually
determined location. Landlord shall provide chilled water at approximately 55
degrees Fahrenheit, and such chilled water shall be provided 24 hours a day/7
days a week/365 days a year throughout the Term of the Lease. Landlord shall
use all possible efforts to ensure that the chilled water is provided to Tenant
continuously, and at the correct temperature. Tenant shall have the right to
review the maintenance procedures of the generator and chilled water system and
shall have the periodic right to review such records.

 

Generator/HVAC Fees:

 

Initial charge: $175,000.00

 

Monthly access: $1,500.00

 

Monthly fuel service: Proportionate share of
actual fuel costs

 

THE FOLLOWING SECTIONS (28-35) ALL REQUIRE AND ARE SUBJECT TO
LANDLORD’S PRIOR WRITTEN APPROVAL. SAID APPROVAL WILL NOT BE UNREASONABLY
WITHHELD, CONDITIONED, OR DELAYED.

 

28.              Risers & Conduit Access Landlord shall
provide Tenant with rights to install four (4) four-inch (4”) conduits (“Main
Conduit”) which shall run from the Basement to the Premises and which shall run
the entire length of the building to connect Tenant’s telecommunications
facility to other tenants in the building and to connect to the point of entry
or “hand off point/meet me room” in the building for all fiber carriers. Tenant
shall also have the right to run feeder conduit stemming from the Main Conduit
to connect each tenant on each floor of the building. All

 

20

 

conduit will be installed at Tenant’s sole
cost and Landlord shall not charge any fees for said conduit access.

 

29.              Battery Installation Tenant shall have the right
to install wet cell batteries with the necessary seismic racks and spill
containment.

 

30.              Grounding Riser  Tenant, at no additional rental
cost, shall have the right to install a separate electrical ground and/or tie
into the Building’s primary ground system in accordance with equipment
requirements and applicable laws.

 

31.              Antennae

 

(a)     Tenant shall have the right to install a GPS
antenna in a location to be mutually agreed upon by both Landlord and Tenant.
Tenant shall be granted sufficient conduit space for such installation and not
be charged for such conduit or roof space.

 

(b)     Tenant shall be granted access to the roof 24
hours per day via escort by a Building engineer or security guard. During
normal business hours, Landlord shall make arrangements for immediate access
and after normal business hours and on weekends, Landlord shall provide a
telephone number for Tenant to contact to arrange immediate access.

 

32.           Fire Protection & Life Safety.
Tenant shall have the right to convert any existing sprinkler system or install
a preaction or FM 200 system. Tenant shall install such system subject to local
codes and ordinances.

 

33.           Hazardous Substances To the best of
Landlord’s knowledge, no part of the Premises or the Building including without
limitation, the walls, ceilings, structural steel, flooring, pipes or boilers,
is wrapped, insulated, fireproofed or surfaced with any asbestos-containing
materials. Landlord shall provide the Premises and all other areas of the
Premises where Tenant places equipment free of hazardous materials

 

34.           Express Waiver of Landlord’s Lien.
Landlord hereby expressly waives its Landlord’s lien and any and all rights
granted by or under any present or future laws to levy or distrain for rent, in
arrears, in advance, or both, upon any or all personalty, including, but not
limited to [supporting towers, antennas, satellite dish(es), Connecting
Equipment] equipment, trade fixtures, furniture and other personal property of
Tenant or any assignee or subtenant of Tenant in the Premises.

 

35.           Allowable Use of Certain Hazardous
Materials. Tenant may use and store the following materials in the
ordinary course of its business: fuel for the generator(s) in order to supply
an uninterrupted power source (UPS); acid contained within batteries for
back-up power; reasonable amounts of standard cleaning fluid and materials
customarily used in conjunction with business machines; cleaning supplies in
reasonable - quantities; coolant for any Tenant installed HVAC system, or other
materials used in fire suppression and any other materials deemed necessary to
Tenant’s business. Landlord may use, but not store, on the Premises the
following materials in the ordinary course of business: cleaning supplies,
insecticides, fungicides, and rodenticides. Tenant shall not indemnify Landlord
for releases of any hazardous materials that exist on the Premises at the time
of execution of this Lease or are brought on the Premises, into the building,
or on, in or under the land upon which the Building is located by anyone other
than Tenant, its employees, agents, or third-party contractors. This provision
shall survive the expiration or sooner termination of this Lease.

 

21

 

	
   

  	
  TENANT:

  	
  Advanced
  Telecommunications Inc.

  
	
   

  	
   

  	
  A Delaware corp.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Satish Tiwari

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   VP Network Engineering

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  	
  12/27/99

  	
   

  
	
   

  	
   

  
	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
   

  	
  SOFI-IV SIM OFFICE
  INVESTORS II, LP, an

  
	
   

  	
   

  	
  Delaware limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  By:Scottsdale Property Management 97, L.L.C., an

  
	
   

  	
   

  	
   

  	
  Arizona limited liability company, Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
  /s/ David [illegible]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Authorized signatory

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  	
  12-30-99

  
											

 

 

EXHIBIT A

 

THE
PREMISES

 

 

A - 1

 

EXHIBIT A-1

 

FLOOR PLAN

 

 

A - 2

 

EXHIBIT B

 

CONSTRUCTION PROVISIONS

 

1                 Preliminary
Space Plan. Attached to this Lease as Exhibit A is a preliminary space plan
approved by Landlord and Tenant showing the size, nature and location of the
improvements to be constructed in the Premises (the “Improvements”). Promptly
following execution of this Lease, Tenant shall meet with Landlord’s architect
and shall provide such information and make such selections as may be necessary
for the expeditious completion of the planning process.

 

2                 Working
Drawings. Based upon the preliminary space plan and the information
provided and selections made by Tenant, Landlord shall cause working drawings
and specifications (collectively, the “Plans”) to be prepared for the
Improvements. The Plans shall be subject to Tenant’s reasonable approval.
Tenant shall respond with all of its specific objections or comments to the
proposed Plans within five days after receipt, and the Plans shall be modified
to satisfy any reasonable objection of Tenant. Tenant shall promptly give its
written approval of the revised Plans or indicate specific changes required to
be made. Any revisions of the Plans after the revisions to the initial draft of
the proposed Plans shall be made at Tenant’s sole expense, payable on demand.

 

3                 Cooperation.
During the entire course of the process described above, both Landlord and
Tenant shall review and respond to submissions by the other party with
reasonable dispatch. Tenant shall respond with its approval or comments within
five days after receipt of initial drawings, specifications, or other materials
requiring Tenant’s review and within three days after receipt of revised
versions of such documents or materials. From time to time at the request of
either party Landlord and Tenant shall devise, and revise as necessary, working
schedules for the preparation of the Plans and the construction of the
Improvements. Tenant shall not permit any supplier, installer, contractor, or
other person employed by Tenant to interfere in any way with the progress of
the work. Access by Tenant’s suppliers, contractors and installers shall be
subject to (i) scheduling by Landlord upon at least ten days’ prior notice by
Tenant, and (ii) compliance with all requirements imposed by Landlord with
respect to insurance, cooperation, permits, licenses, bonding, hours of work,
safety and use of flammable substances.

 

4                 Redesign
Option. If after the Plans are completed and Landlord’s contractor has
submitted a price for the work, the estimated costs of construction exceed the
Tenant Improvement Allowance, Tenant may elect within three days after receipt
of the cost estimate to attempt to reduce the associated cost by reducing the
scope of the work to be done. The changes, which shall be subject to Landlord’s
prior approval, shall be incorporated in revised Plans. Any redesign and
rebidding shall be completed within seven days after receipt of the initial
cost estimate.

 

5                 Cost.
Prior to commencement of construction, Tenant shall pay to Landlord the amount,
if any, by which the estimated costs of construction exceed the Tenant
Improvement Allowance as set forth in Section 1.13. Any difference between
actual and estimated costs shall be paid or refunded, as the case may be,
within ten days after receipt of Landlord’s statement calculating the amount
due. Landlord shall prepare and deliver the statement within a reasonable time
after completion of punchlist items. “Costs of construction” of the
Improvements as used in this Article means all costs and expenses incurred
to design and build the improvements, including, without limitation, permit and
inspection fees, management and supervision fees, taxes, amounts paid to
contractors, subcontractors, and suppliers, architects’ fees, engineering
costs, premiums for bonds and insurance, utilities, equipment rental,
demolition, labor, materials, and supplies.

 

C - 1

 

6                 Punchlist.
Within ten days after taking possession of the Premises, Tenant shall deliver
to Landlord a written punchlist specifying all defects in materials or
workmanship in the Improvements. Any defects not specified in the punchlist,
except latent defects not readily discoverable by inspection, are waived.
Landlord shall promptly cause all matters appearing on the punchlist to be
corrected.

 

7                 Delay.
If completion of construction of improvements within the Premises or delivery
of possession of the Premises is delayed by Tenant Delay, then the Commencement
Date shall be deemed to have occurred and rent shall begin to accrue as of the
date when they would have done so but for the Tenant Delay. “Tenant Delay”
means delay as a result of: (a) Tenant’s failure to meet with the architect and
to provide all required information and make necessary selections for the
expeditious development of Plans; (b) Tenant’s failure to provide comments on
proposed Plans in a timely manner; (c) Tenant’s request for materials, finishes
or installations requiring more time to obtain, construct or install than
Landlord’s standard; or (d) Tenant’s change in any Plans after the revisions to
the initial draft; or, (e) performance or completion by a party employed by
Tenant. Landlord shall not be liable for any direct or consequential damages
resulting from delayed delivery of the Premises (by reason of delayed
construction, failure or refusal of a prior tenant of the space to vacate the
Premises in accordance with its lease, or otherwise) and the scheduled
Commencement Date and the Expiration Date shall be postponed by an amount equal
to the period of delay.

 

C - 2

 

EXHIBIT C

 

RULES
AND REGULATIONS

 

1                 Any
sign, lettering, picture, notice or advertisement installed within Lessee’s
premises which is visible to the public from within the Building shall be
installed at Tenant’s cost and in such manner, character and style as Landlord
may approve in writing. No sign, lettering, picture, notice or advertisement
shall be placed on any outside window or in a position to be visible from
outside the Building. Any object violating this paragraph may be removed by
Landlord, at Tenant’s expense.

 

2              In advertising or other publicity,
without Landlord’s prior written consent, Tenant shall use neither the name of
the Building, except as the address of its business, nor pictures of the
Building.

 

3              Tenant, its customers, invitees,
licensees and guests shall not obstruct the sidewalks, entrances, passages,
courts; corridors, vestibules, halls, elevators or stairways of the Building.
The sashes, sash doors, skylights, windows and doors that reflect or admit
light and air into lobbies, halls, passageways or other public places in the
Building shall not be covered or obstructed. Tenant shall not place objects
against glass partitions or doors or windows which would be unsightly from
Building corridors, lobbies, passageways, or other public places, or from the
exterior of the Building, and will promptly remove same upon notice from
Landlord. This provision does not apply to window coverings, chosen by Tenant
and approved by Landlord.

 

4              Tenant shall not make noises, cause
disturbances or vibrations, or use or operate any electrical or electronic
device or other device that emits sound or other waves or disturbances, any of
which may be offensive to other tenants and occupants of the Building or which
may interfere with the operation of any device or equipment or radio or
television broadcasting or reception from or within the Building or elsewhere,
and shall not place or install any projections, antennae, aerials or similar
devices inside or outside of the Premises.

 

5              Tenant shall not make any room-to-room
canvass to solicit business from other tenants in the Building and shall not
exhibit, sell or offer to sell, use, rent or exchange any item or service in or
from the Premises unless ordinarily embraced within Tenant’s use of the
Premises specified in the Lease.

 

6              Tenant shall not waste electricity or
water and agrees to cooperate fully with Landlord to assure the most effective
operation of the Building’s heating and air conditioning and shall refrain from
attempting to adjust any controls other than room thermostats installed for
Tenant’s use. Tenant shall keep windows and public corridor doors closed.

 

7              Door keys, not to exceed two, for doors
in the Premises will be furnished at the commencement of the Lease by Landlord.
Tenant shall not fix additional locks on doors and shall purchase duplicate
keys only from Landlord at Tenant’s expense. When the Lease is terminated,
Tenant shall return all keys to Landlord and will disclose to Landlord the
combination of any safes, cabinets or vaults left in the Premises.

 

8              Tenant assumes full responsibility for
protecting its space from theft, robbery and pilferage. Such protection shall
include keeping doors locked where appropriate and other means of entry to the
Premises closed and secured.

 

9              Peddlers, solicitors and beggars shall be
reported to Landlord or as Landlord otherwise requests.

 

10            Tenant shall not install or operate
machinery or any mechanical device of a nature not directly related to Tenant’s
ordinary use of the Premises as general office space without the written
permission of Landlord. Wherever heat-generating machines or equipment are used
in the Premises which affect the

 

D - 1

 

temperature otherwise maintained by the air conditioning system,
Landlord reserves the right to install supplementary air conditioning units to
cool the Premises, and Tenant shall pay to Landlord upon demand the cost
thereof, including the cost of installation, operation and maintenance. Tenant
will not, without Landlord’s prior written consent, use any apparatus or device
using electric current in excess of 110 volts, or which increases the amount of
electricity, water or other utility otherwise furnished or supplied for use of
the Premises as general office space, nor connect to the electric current or
the water supply except through existing electrical outlets or water taps in
the Premises. If Tenant requires water, electric current or other utilities in
excess of those otherwise furnished for use of the Lease Premises as general
office space, Tenant shall first procure Landlord’s written consent to the use
thereof, which consent Landlord may refuse for any reason, and Landlord may
cause metering devices to be installed in the Premises or Building for the
purpose of measuring the amount of water, electric current or other utilities
consumed for any such purpose. Tenant shall pay to Landlord upon demand the
cost of any such meters and the installation, maintenance and repair thereof
and the cost of all water, electric current or other utilities consumed as
shown by said meters, at the rates charged for such services by the suppliers
thereof.

 

11            No person or contractor not employed or
approved by Landlord shall be used to perform window washing, cleaning,
decorating, repair or other work in the Premises, Building or Project.

 

12            In no event shall any person bring into the
Project inflammables, such as gasoline, kerosene, naphtha and benzene, or
explosives, or any other article of intrinsically dangerous nature. If by
reason of the failure of Tenant to comply with the provisions of this
paragraph, any insurance premium payable by Landlord for all or any part of the
Project shall at any time be increased above normal insurance premiums for
insurance not covering the items aforesaid, Landlord shall have the option to
resort to one or more of the following: terminate this Lease, require Tenant to
make immediate payment for the whole of the increased insurance premium and
exercise any other remedy or combination of remedies set forth in the Lease.

 

13            Water, toilet and other plumbing fixtures
shall not be used for any purpose other than those for which they were
constructed, and no sweeping, rubbish, rags or other substance shall be thrown
therein. All damage resulting from any misuse of said fixtures by Tenant or its
servants, employees, agents, visitors or licensees shall be borne by Tenant.

 

14            Tenant shall not mark, paint, drill into or
in any way de face any part of the Premises or the Building. No boring, cutting
or stringing of wires or laying of linoleum or other similar floor covering
shall be permitted except with the prior written consent of Landlord and as
Landlord may direct.

 

15            Except with Landlord’s prior written
consent, no bicycles, similar vehicles or animals of any kind shall be brought
into or kept in or about the Premises or Project. Except for a tenant whose
business in the Building is the preparation of food for on-premises public sale
and consumption, no cooking shall be done or permitted by Tenant in the
Building except that the use of microwave ovens for the warming of prepared
foods and the preparation of coffee, tea, hot chocolate and similar items for
Tenant and its employees, clients and guests shall be permitted. Tenant shall
not cause or permit any unusual or objectionable odors to be produced or
permeate the Project, Building or Premises.

 

16            The Premises shall not be used for manufacturing
or for the storage of merchandise except such storage as may be incidental to
the use of the Premises for general office purposes and any additional use
specifically set forth in the Lease. Tenant shall not occupy or permit any
portion of the Premises to be occupied as an office for a public stenographer
or typist or for the manufacture or sale of liquor, narcotics or tobacco in any
form or as a medical office or as a barber or manicure shop or as an employment
bureau. Tenant shall not engage or pay any employees on the Premises except
those actually working for Tenant on the Premises, or

 

D - 2

 

advertise for laborers giving an address at the Premises. The Premises
shall not be used for lodging or sleeping or for any immoral or illegal
purposes.

 

17            There shall not be used by Tenant in any
space or in the public halls of the Building any hand trucks except those
equipped with rubber tires and side guards.

 

18            Tenant shall not conduct any auction or permit
any fine or bankruptcy sale to be held in the Premises or store goods, wares or
merchandise in the Premises or at the Project.

 

19            All freight, furniture and equipment must
be moved into, within and out of the Building under Landlord’s supervision and
according to such regulations as Landlord may promulgate. All moving of
freight, furniture or equipment into or out of the Building by Tenant shall be
done at such time and in such manner as directed by Landlord or its agent.
Landlord shall have the right to prescribe the allowable weight, size, and
placement details for all sales and other heavy equipment brought into the
Building. Landlord will not be responsible for loss of, or damage to, any such
safe or property from any cause, and all damage done to the Building by moving
or maintaining any such property shall be repaired at the expense of Tenant. No
office equipment, furnishings or fixtures shall be removed from the Building
during hours when the Building is closed without obtaining Landlord’s prior
written permission and Landlord’s security personnel shall have the right to
demand evidence of such permission from any person.

 

20            Requirements of Tenant for building
services, maintenance and repairs shall be attended to only upon application to
Landlord. Employees of the Building are not permitted to perform any work or do
anything outside of their regular duties unless under special instructions from
Landlord. No employees of the Building shall admit any person, Tenant or
otherwise, to any office without specific instructions from Landlord.

 

21            Tenant shall promptly notify Landlord of
any accidents to or defects in plumbing, electrical fixtures, heating apparatus
and/or air conditioning equipment so that the same may be attended to properly.

 

22            Landlord reserves the right to close and
keep locked all entrance and exit doors of the Project at all times which are
not ordinary business hours. For purposes of this paragraph, “Ordinary business
hours” in the Building shall be from 7:00 a.m. to 6:00 p.m. on Mondays through
Fridays but excluding any day which is a legal holiday.

 

23            On Saturdays, Sundays, legal holidays and
other days during the hours the Building may be closed after ordinary business
hours, access to the Project or Building or to the halls, corridors, elevators
or stairways will be controlled by Landlord through the use of security
personnel or access cards. Such personnel will have the right to demand of any
and all personal seeking access to the Building proper identification to
determine if they have right of access to the Project. Landlord shall in no
case be liable for damages wherein admission to the Building has been refused
during the hours the Building may be closed after ordinary business hours by
reason of a tenant’s failing to properly identify himself or herself to the
security personnel, or because the Building was locked and closed to access by
a tenant, a tenant’s employees and the general public.

 

24            A directory in the main lobby of the
Building shall be provided to display the name and location of Building tenants
only. Landlord reserves the right to exclude any other name therefrom and also
to make a reasonable charge for each name, in addition to Tenant’s name, placed
upon such directory at Tenant’s request.

 

25            Tenant
shall not be entitled, by virtue of this Lease, to use or patronize any
service, business or facility located in the Building, but may become entitled
to use or patronize the same by satisfactory arrangements with, and subject to
all of the terms and conditions imposed by, the operator of such business or
facility.

 

D - 3

 

26            Landlord reserves the right to exclude or
expel from the Building any person who, in the Landlord’s judgment, is
intoxicated or under the influence of liquor or drugs, or who shall in any
manner violate any of the rules and regulations contained herein.

 

27            Landlord reserves the right at any time and
from time to time to waive any of the Building rules and regulations.

 

28.           There shall be no smoking anywhere in the
Building. Tenant shall cooperate with Landlord and landlord’s agents to enforce
this rule.

 

D - 4

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