Document:

Exhibit 10.15

 

LEASE AGREEMENT

 

 

BETWEEN

 

 

SEATTLE TELECOM LLC

 

A Limited Liability Company of the State of
Delaware

 

 

AND

 

 

Advanced Telecommunications, Inc.

 

A Delaware Corporation

 

 

DATED: December 20, 1999

 

 

PREPARED BY:

 

SCHUMANN, HANLON, DOHERTY, McCROSSIN &
PAOLINO

30 MONTGOMERY STREET - 15TH FLOOR

JERSEY CITY, NEW JERSEY 07302

201-434-2000

 

 

THIS
LEASE dated December 20, 1999 made by and between
SEATTLE
TELECOM LLC, a limited liability company of the State of Delaware,
having offices at 750 Lexington Avenue, 28th Floor, New York, New York 10022
(“Landlord”) and ADVANCED TELECOMMUNICATIONS, INC., a Delaware Corporation,
having an office at 730 Second Avenue South, Suite 1200, Minneapolis, Minnesota
55402 (“Tenant”).

 

ARTICLE 1

DEFINITIONS

 

1.01.                        As
used in this Lease (including in all Exhibits and any Riders attached hereto,
all of which shall be deemed to be part of this Lease) the following words and
phrases shall have the meanings indicated:

 

A.                                   Advance Rent:
One (1) month’s Fixed Rent.

 

B.                                     Additional
Rent: All amounts that become payable by the Tenant to Landlord
hereunder other than the Fixed Rent.

 

C.                                     Broker:
Grubb & Ellis Company, 600 University, 1 Union Square, Suite 1800, Seattle,
Washington 98101-4159.

 

D.                                    Building:
1200 Third Avenue, Seattle, Washington 98101, consisting of approximately
151,070 square feet (“s.f.”).

 

E.                                      Business
Days: All days except Saturdays after 1:00 P.M., Sundays, days
observed by the federal or state government as legal holidays and such other
days as shall be designated as holidays by the applicable operating engineers
union or building service employees union contract, if any.

 

F.                                      Business
Hours: Generally customary daytime business hours but not before
8:00 A.M. or after 6:00 P.M. and Saturdays 9:00 A.M. to 1:00 P.M., Pacific
Time.

 

G.                                     Calendar
Year: Any consecutive twelve-month period commencing on
January 1.

 

H.                                    Commencement
Date: January 1, 2000

 

I.                                         Common Areas:
All areas, spaces and improvements in the Building and on the Land which
Landlord makes available from time to time for the common use and benefit of
the tenants and occupants of the Building and which are not exclusively
available for use by a single tenant or occupant, including, without
limitation, parking areas, roads, walkways, landscaped and planted areas,
community rooms, if any, the managing agent’s office, if any, and public rest
rooms, if any.

 

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J.                                        Demised
Premises: 12,645 s.f. located on the tenth (10th) floor of the
Building as shown on Exhibit B but excluding certain riser space, available
exclusive to US West Communications, Inc. under the US West Lease, as further
depicted on Exhibit B. The Demised Premises shall also mean any portion of the
interior or exterior of the Building or any facilities of the Building,
utilized by Tenant pursuant to the provisions of this Lease, including (without
limitation) any roof areas, interior or exterior generator or battery areas,
and riser and shaftway spaces.

 

K.                                    Expiration
Date: The date that is the day before the tenth (10th) anniversary
of the Commencement Date if the Commencement Date is the first day of a month,
or the tenth (10th) anniversary of the last day of the month in which the
Commencement Date occurs if the Commencement Date is not the first day of a
month. However, if the Term is extended by Tenant’s effective exercise of
Tenant’s rights, if any, to extend the Term, the “Expiration Date” shall be
changed to the last day of the latest extended period as to which Tenant shall
have effectively exercised its right to extend the Term. For the purposes of
this definition, the earlier termination of this Lease shall not affect the
“Expiration Date.”

 

L.                                      Fixed Rent:

 

(i)                                     $34.00
per square foot or Four Hundred Twenty Nine Thousand Nine Hundred Thirty &
00/100 ($429,930.00) Dollars per year for the period commencing on the
Commencement Date and ending on the day before the fifth (5th) anniversary of
the Commencement Date, payable at the rate of Thirty-Five Thousand Eight
Hundred Twenty-Seven & 50/100 ($35,827.50) Dollars per month as hereinafter
provided; and

 

(ii)                                  $37.00
per s.f. or Four Hundred Sixty-Seven Thousand Eight Hundred Sixty-Five &
00/100 ($467,865.00) Dollars per year for the period commencing with the fifth
(5th) anniversary of the Commencement Date and ending on the Expiration Date,
payable at the rate of Thirty-Eight Thousand Nine Hundred Eighty-Eight &
75/100 ($38,988.75) Dollars per month as hereinafter provided.

 

M.                                 Insurance
Requirements: Rules, regulations, orders and other requirements of
the applicable board of underwriters and/or the applicable fire insurance
rating organization and/or any other similar body performing the same or
similar functions and having jurisdiction or cognizance over the Land and
Building, whether now or hereafter in force.

 

N.                                    Land:
The land described in Exhibit A, upon which the Building is located.

 

O.                                    Legal
Requirements: Laws and ordinances of all federal, state and local
governments, and rules, regulations, orders and directives of all departments,
subdivisions, bureaus, agencies or offices thereof, and of any other
governmental, public, quasi-public authorities having jurisdiction over the
Land and Building now in force or which may be in force hereafter during the
Term of this Lease.

 

P.                                      Mortgage:
A mortgage and/or a deed of trust.

 

Q.                                    Mortgagee:
A holder of a mortgage or a beneficiary of a deed of trust.

 

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R.                                     Operating
Expenses: All costs and expenses, and taxes thereon, if any, paid or
incurred by Landlord in connection with the Building, the Building utility and
service systems, the sidewalks, curbs, plazas and other areas adjacent to the
Building, and with respect to the services provided tenants, including, without
limitation: (i) salaries, wages and bonuses paid to, and the cost of any
hospitalization, medical, surgical, union and general welfare benefits
(including group life insurance), any pension, retirement or life insurance
plan or any other benefit or similar expense relating to employees of Landlord
engaged exclusively in the operation, cleaning, repairs, safety, management,
security or maintenance of the Land and/or the Building or in providing
services to tenants; (ii) social security, unemployment and other payroll
taxes, the cost of providing disability and worker’s compensation coverage
imposed by any requirements of law, union contract or otherwise with respect to
said employees; (iii) the cost of casualty, rent, liability, steam boiler
explosion, electrical arcing, systems breakdown, fidelity, plate glass and any
other insurance; (iv) the cost of repairs, replacements, maintenance and
painting; (v) expenditures for improvements and equipment which are made by
reason of Legal Requirements or Insurance Requirements; (vi) the cost or rental
of all building and cleaning supplies, tools, materials and equipment; (vii)
all costs, charges and expenses incurred by Landlord in connection with any
change of any company providing electricity service, including, without
limitation, maintenance, repair, installation and service costs associated
therewith; (viii) the cost of uniforms, work clothes and dry cleaning; (ix)
window cleaning, concierge, guard, watchman or other security personnel,
service or system, if any; (x) management fees calculated at the rate of three
(3%) percent per annum of Rent; (xi) charges of independent contractors
performing work included within this definition of operating Expenses; (xii)
telephone and stationery; (xiii) legal, accounting and other professional fees
and disbursements incurred in connection with the operation and management of
the Building and Land; (xiv) association fees and dues; (xv) depreciation of
movable equipment used in the operation, cleaning, repair, safety, management,
security or maintenance of the Building; (xvi) the cost of painting and/or
decorating and/or other maintenance of the public or common areas of the
Building and Land; (xvii) the cost of all interior and exterior gardening and
landscaping of the Building and Land; (xviii) the cost of maintenance, repair
and/or replacement of the Building facade; (xix) the cost of pest and vermin
extermination for the common areas of the Building and the Land; and (xx)
Utility Costs (as hereinafter defined). Operating Costs which are capital in
nature shall be amortized over their useful life and allocated over the balance
of the Term at the prime interest rate, as declared by Chase Bank, NA in New
York, New York plus two (2%) percent per annum. However, that operating
Expenses shall exclude or have deducted from them, as the case may be the
following:

 

(a)                                  amounts actually
received by Landlord through insurance proceeds, condemnation awards,
warranties and service contracts, or otherwise, to the extent they are
compensation for sums previously included in Operating Expenses hereunder;

 

(b)                                 brokerage commissions;

 

(c)                                  Real Estate Taxes;

 

(d)                                 the cost of
electricity furnished to the Demised Premises or any other space leased to
tenants as reasonably estimated by Landlord;

 

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(e)                                  financing and
refinancing costs, rents payable under the Master Lease or any Superior Lease,
and mortgage interest and mortgage payments due under any Mortgage;

 

(f)                                    depreciation except
as otherwise expressly herein provided;

 

(g)                                 cost and expenses
incurred in connection with the enforcement of leases and disputes with tenants
in the Building, including without limitation, court costs, attorney’s fees and
disbursements;

 

(h)                                 cost and expenses
incurred in connection with leasing or re-leasing space in the Building such as
space planning, architectural, engineering, attorneys’ fees and advertising and
promotional expenses unless due to Tenant’s default;

 

S.                                      Permitted
Use: Executive and general office use, installation, operation,
modification and maintenance of equipment and facilities in connection with
Tenant’s Telecommunications business including, but not limited to, a
Telecommunications switch.

 

T.                                     Person:
A natural person or persons, a partnership, a corporation, or any other form of
business or legal association or entity.

 

U.                                    Real Estate
Taxes: The real estate taxes, assessments and special assessments
imposed upon the Building and Land by any federal, state, municipal or other
governments or governmental bodies or authorities and any alternative or
substitute charges. Any expenses incurred by Landlord in contesting such taxes
or assessments and/or the assessed value of the Building and Land, which
expenses shall be allocated to the period of time to which such expenses
relate. Tenant shall not be obligated or required to pay any tax on the income
or receipts of Landlord. If at any time during the Term the methods of taxation
prevailing on the date hereof shall be altered so that in lieu of, or as an
addition to or as a substitute for, the whole or any part of such real estate
taxes, assessments and special assessments now imposed on real estate there
shall be levied, assessed or imposed (a) a tax, assessment, levy, imposition,
license fee or charge wholly or partially as a capital levy or otherwise on the
rents received therefrom, or (b) any other such additional or substitute tax,
assessment, levy, imposition or charge, then all such taxes, assessments,
levies, impositions, fees or charges or the part thereof so measured or based
shall be deemed to be included within the term “Real Estate Taxes” for the
purposes hereof.

 

V.                                     Rent:
The Fixed Rent and Additional Rent.

 

W.                                Rules and
Regulations: The reasonable rules and regulations that may be
promulgated by Landlord from time to time, as same may be reasonably changed by
Landlord from time to time. The Rules and Regulations now in effect are
attached hereto as Exhibit C.

 

X.                                    Security
Deposit: Two Hundred Fourteen Thousand Nine Hundred Sixty-Five &
00/100 ($214,965.00) Dollars, i.e. six (6) months Fixed Rent.

 

Y.                                     Successor
Landlord: As defined in Section 9.03.

 

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Z.                                     Superior
Lease: Any lease to which this Lease is, at the time referred to,
subject and subordinate.

 

AA.                         Superior
Lessor: The lessor of a Superior Lease or its successor in interest,
at the time referred to.

 

BB.                             Superior
Mortgage: Any Mortgage to which this Lease is, at the time referred
to, subject and subordinate.

 

CC.                             Superior
Mortgagee: The Mortgagee of a superior Mortgage at the time referred
to.

 

DD.                           Tenant’s
Fraction: 8.3703%

 

If the size of the Demised Premises or the Building shall be changed
from the initial size thereof, due to any taking, any construction or
alteration work, exercise of an expansion option hereunder or otherwise, the
Tenant’s Fraction shall be automatically adjusted to the fraction the numerator
of which shall be the square footage of the Demised Premises and the
denominator of which shall be the square footage of the Building;

 

EE.                               Tenant’s
Initial Improvements: The facilities, materials and work undertaken
pursuant to Article V.

 

FF.                               Tenant’s
Property: As defined in Section 16.02.

 

GG.                             Term:
The period commencing on the Commencement Date and ending 11:59 p.m. of the
Expiration Date, but in any event the Term shall end on the date when this
Lease is earlier terminated.

 

HH.                           Unavoidable
Delays: A delay arising from or as a result of a strike, lockout, or
labor difficulty, explosion, sabotage, riot or civil commotion, act of war,
fire or other catastrophe or any other cause beyond the reasonable control of
either party, provided that the party asserting such Unavoidable Delay has
exercised its best efforts to minimize such delay.

 

II.                                     Utility
Costs: Landlord’s cost (incurred directly or through independent
contractors) for all electricity (to the extent Landlord is not directly
reimbursed therefor by individual tenants), steam, water, gas or other fuel and
utilities supplied to the Building or the Land, including in each case, any
surcharges, fuel adjustments and taxes payable by Landlord in connection
therewith.

 

JJ.                                   US West
Lease: Lease agreement, dated September 24, 1999, between
Landlord and US West Communications, Inc. for a portion of 1200 Third Avenue,
Seattle, Washington.

 

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ARTICLE 2

DEMISE AND TERM

 

2.01.                        Landlord
hereby leases to Tenant, and Tenant hereby leases from Landlord, the Demised
Premises, for the Term. Promptly following the Commencement Date, at the option
of the Landlord, the parties hereto shall enter into an agreement in form and
substance satisfactory to Landlord and Tenant setting forth the Commencement
Date.

 

ARTICLE 3

RENT

 

3.01.                        Tenant
shall pay the Fixed Rent in equal monthly installments in advance on the first
day of each and every calendar month during the Term. If the Commencement Date
occurs on a day other than the first day of a calendar month, the Fixed Rent
for the partial calendar month at the commencement of the Term shall be
prorated. Upon execution of the Lease, Tenant shall pay the Advance Rent which
shall be applied to the first month’s Fixed Rent following the Commencement
Date.

 

3.02.                        The
Rent shall be paid in lawful money of the United States to Landlord or
Landlord’s agent, at its office, or such other place, as Landlord shall
designate by notice to Tenant. Tenant shall pay the Rent promptly when due
without notice or demand therefor and without any abatement, deduction or
setoff for any reason whatsoever, except as may be expressly provided in this
Lease. If Tenant makes any payment to Landlord by check, same shall be by check
of Tenant and Landlord shall not be required to accept the check of any other
person, and any check received by Landlord shall be deemed received subject to
collection. If any check is mailed by Tenant, Tenant shall post such check in
sufficient time prior to the date when payment is due so that such check will
be received by Landlord on or before the date when payment is due.

 

3.03.                        No
payment by Tenant or receipt or acceptance by Landlord of a lesser amount than
the correct Rent shall be deemed to be other than a payment on account, nor
shall any endorsement or statement on any check or any letter accompanying any
check or payment be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord’s right to recover the
balance or pursue any other remedy in this Lease or at law provided.

 

3.04.                        If
Tenant is in arrears in payment of Rent, Tenant waives Tenant’s right, if any,
to designate the items to which any payments made by Tenant are to be credited,
and Landlord may apply any payments made by Tenant to such items as Landlord
sees fit, irrespective of and notwithstanding any designation or request by
Tenant as to the items to which any such payments shall be credited.
Notwithstanding the foregoing, in the event Tenant in good faith disputes a
liability asserted by Landlord, Tenant may designate the item(s) to which its
payments should be credited provided Tenant’s designation does not prejudice
Landlord’s position with respect to the dispute.

 

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3.05.                        Any payment due Landlord under
this Lease which is not paid within five (5) days of written notice of
non-payment shall, from the due date until such payment is received by
Landlord, bear interest at the prime rate of Chase Bank, N.A. in New York plus
6% per annum (the “Late Payment Rate”), provided however, the aforesaid
interest shall not be imposed unless Landlord fails to receive an overdue
payment within five (5) days of Landlord’s written notice to Tenant thereof.

 

ARTICLE 4

USE OF DEMISED PREMISES

 

4.01.                        Tenant
shall use and occupy the Demised Premises for the Permitted Use, and Tenant
shall not use or permit or suffer the use of the Demised Premises or any part
thereof for any other purpose.

 

4.02.                        If
any governmental license or permit, other than a Certificate of Occupancy,
shall be required for the proper and lawful conduct of Tenant’s business in the
Demised Premises or any part thereof, Tenant shall duly procure and thereafter
maintain such license or permit, and submit the same to Landlord for
inspection. Tenant shall at all times comply with the terms and conditions of
each such license or permit. Tenant shall not at any time use or occupy, or
suffer or permit anyone to use or occupy the Demised Premises, or do or permit
anything to be done in the Demised Premises, in any manner which (a) violates
the Certificate of Occupancy for the Demised premises or for the Building; (b)
causes or is liable to cause injury to the Building or any equipment,
facilities or systems therein; (c) constitutes a violation of the Legal
Requirements or Insurance Requirements; (d) impairs or tends to impair the
character, reputation or appearance of the Building as a first-class building;
(e) impairs the proper and economic maintenance, operation and repair of the
Building and/or its equipment, facilities or systems; or (f) interferes with
the Quiet Enjoyment rights of the other tenants in the Building.

 

ARTICLE 5

CONDITION OF THE DEMISED PREMISES

 

5.01.                        Landlord
acknowledges that following execution of the Lease, Tenant may be required to
perform certain construction (“Tenant’s Initial Improvements”) in the Demised
Premises. Tenant, at its sole cost and expense, shall prepare complete
construction drawings and specifications including architectural, mechanical,
engineering, electrical and life safety drawings (“Tenant’s Plans”) sufficient
to obtain a building permit. Tenant’s Plans shall be subject to Landlord’s
prior written approval. Tenant shall manage the construction bidding process
and engage a contractor mutually acceptable to Landlord and Tenant to perform
Tenant’s Initial Improvements. As an express condition precedent to
construction of Tenant’s Initial Improvements, Tenant shall (i) provide
Landlord with a Certificate of Insurance in the amount and under the terms set
forth in Article 13 hereof and shall comply with all of the insurance and
indemnity provisions set forth therein and (ii) a full payment and performance
bond, issued by a surety company satisfactory to Landlord and in form and
substance satisfactory to Landlord in favor of Landlord for the construction of
Tenant’s Initial Improvements. Landlord shall not be entitled to any
construction management fee, but shall be entitled to recover from Tenant the
out-of-pocket or the actual cost of architectural, engineering and legal review
of Tenant’s plans. Any

 

8

 

work performed by Tenant hereunder shall comply with any and all
governmental rules and regulations including, but not limited to, rules and
regulations pertaining to the Americans with Disabilities Act.

 

5.02.                        Tenant
has inspected the Demised Premises and accepts the same “as is” in their
presently existing condition, and Landlord shall have no obligation to perform
any work in order to prepare the Demised Premises for Tenant’s occupancy,
except that Landlord shall, on or prior to the commencement date, insure that
the Demised Premises in other areas of the Building that will be used by
Tenant, shall be free of asbestos containing material and other hazardous
materials.

 

5.03.                        Tenant
shall occupy and take possession of the Demised Premises promptly on the
Commencement Date. Except as expressly provided to the contrary in this Lease,
the taking of possession by Tenant of the Demised Premises shall be conclusive
evidence as against Tenant that the Demised Premises and the Building were in
good and satisfactory condition at the time such possession was taken.

 

5.04.                        Tenant
shall have the right to install conduits and cables within the vertical risers
of the building to the demised premises required for Tenant’s Permitted Use
pursuant to Tenant’s Riser Plan (the “Riser Plan”), approved by Landlord. Such
right is expressly subject to (i) delivery of plans and specifications
indicating in specific detail the amount, location, size and other information
requested by Landlord relating to the installation of such conduits; (ii)
Landlord’s prior written approval of such plans and specifications, which
approval shall be in Landlord’s sole reasonable discretion; and (iii) the
approval of any and all governmental authorities having jurisdiction over such
work. Tenant shall be responsible for any and all costs associated with the
performance of such work. Landlord will have the absolute right to be present
during the course of the performance of any such work, to halt such work in the
event that Tenant fails to comply with Landlord’s approved plans and
specifications and to inspect such work from time to time as Landlord deems
fit. Tenant shall be responsible for any and all costs, associated with
Landlord’s inspection or approval of Tenant’s Plans, the Riser Plan or the
performance of Tenant’s Initial Improvements. In the event that such work
requires the penetration of surfaces within the Building, Tenant shall use its
best efforts to conceal such work and the surface finish shall be returned to
the same condition as it was at the time that Tenant commenced the work. Future
additional Riser space may be provided to Tenant subject to the conditions set
forth above as to the Riser Plan and subject further to (i) the availability of
additional Riser space in Landlord’s sole and absolute discretion; (ii) the
Building rules and regulations; and (iii) payment of Riser fees as determined
by Landlord in its sole and absolute discretion. There shall be no charges for
Tenant’s use of the Riser space pursuant to the Riser Plan.

 

5.05.                        Tenant
shall, at its sole cost and expense, install a life safety system for the
Demised Premises (including, without limitation, fire detection and fire
suppression system, consisting of a pre-action sprinkler or FN200) which life
safety system shall be connected to the life safety system for the Building.

 

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5.06.                        Landlord
reserves the right, at any time and from time to time, to increase, reduce or
change the number, type, size, location, elevation, nature and use of any of
the Common Areas of the Building and any other buildings and other improvements
on the Land, including without limitation the right to move and/or remove same,
provided same shall not unreasonably block or interfere with Tenant’s means of
ingress or egress to and from the Demised Premises.

 

ARTICLE 6

TAX AND OPERATING EXPENSE PAYMENTS

 

6.01.                        Tenant
shall pay, as Additional Rent, to Landlord, as hereinafter provided, Tenant’s
share of the Real Estate Taxes. Tenant’s share of the Real Estate Taxes shall
be the Real Estate Taxes for the Building and Land for the period in question,
multiplied by the Tenant’s Fraction. The Real Estate Taxes for the Building and
Land shall be calculated as if the full amount of such Real Estate Taxes is
payable by tenants occupying 95% of the square footage of the Building. By way
of illustration and not by way of limitation, if the Real Estate Taxes for the
Building and Land amount to $100,000.00 and, further, if Tenant’s Real Estate
Fraction is 7%, then Tenant’s proportionate share of Real Estate Taxes would be
$7,368.42, i.e. $100,000.00 ÷ .95 x 7%. If any portion of the Building shall be
exempt from all or any part of the Real Estate Taxes, then for the period of
time when such exemption is in effect, the rentable space on such exempt
portion shall be excluded when making the above computations in respect of the
part of the Real Estate Taxes for which such portion shall be exempt. Landlord
shall estimate the annual amount of Tenant’s proportionate share of the Real
Estate Taxes (which estimate may be changed by Landlord at any time and from
time to time), and Tenant shall pay to Landlord 1/12th of the amount so
estimated on the first day of each month in advance. Tenant shall also pay to
Landlord on demand from time to time the amount which, together with said monthly
installments, will be sufficient in Landlord’s estimation to pay Tenant’s
proportionate share of any Real Estate Taxes thirty (30) days prior to the date
when such Real Estate Taxes shall first become due. When the amount of any item
comprising Real Estate Taxes is finally determined for a real estate fiscal tax
year, Landlord shall submit to Tenant a statement in reasonable detail of the
same, and the figures used for computing Tenant’s proportionate share of the
same, and if Tenant’s proportionate share so stated is more or less than the
amount theretofore paid by Tenant for such item based on Landlord’s estimate,
Tenant shall pay to Landlord the deficiency, or Landlord shall refund to Tenant
the excess, within ten (10) Business Days after submission of such statement
provided Tenant is not then in default of the Lease. Any Real Estate Taxes for
a real estate fiscal tax year, a part of which is included within the Term and
a part of which is not so included, shall be apportioned on the basis of the
number of days in the real estate fiscal tax year included in the Term, and the
real estate fiscal tax year for any improvement assessment will be deemed to be
the one-year period commencing on the date when such assessment is due, except
that if any improvement assessment is payable in installments, the real estate
fiscal tax year for each installment will be deemed to be the one-year period
commencing on the date when such installment is due.

 

6.02.                        Tenant
shall pay, as Additional Rent, to Landlord, as hereinafter provided, Tenant’s
share of the Operating Expenses. Tenant’s share of the Operating Expenses shall
be the Operating Expenses for the period in question, multiplied by Tenant’s
Fraction. Operating Expenses shall be calculated as if the full amount of such
Operating Expenses is payable by

 

10

 

tenants occupying 95% of the square footage of the Building. By way of
illustration and not by way of limitation, if the operating Expenses amount to
$100,000.00 and further if Tenant’s operating Fraction is 7%, then Tenant’s
proportionate share of Operating Expenses would be $7,368.42, i.e. $100,000.00
÷ .95 x 7%. Landlord shall estimate Tenant’s annual proportionate share of the
Operating Expenses (which estimate may be reasonably changed by Landlord from
time to time), and Tenant shall pay to Landlord 1/12th of the amount so
estimated on the first day of each month in advance. If at any time Landlord
changes its estimate of Tenant’s proportionate share of the Operating Expenses
for the then current Calendar Year or partial Calendar Year, Landlord shall
give notice to Tenant of such change and within ten (10) Business Days after
such notice Landlord and Tenant shall adjust for any overpayment or
underpayment during the prior months of the then current Calendar Year or
partial Calendar Year. After the end of each Calendar Year, including any
partial Calendar Year at the beginning of the Term, and after the end of the
Term, Landlord shall submit to Tenant a statement in reasonable detail stating
Tenant’s proportionate share of the Operating Expenses for such Calendar Year,
or partial Calendar Year in the event the Term shall begin on a date other than
a January 1st and/or end on a date other than a December 31st, as the
case may be, and stating the Operating Expenses for the period in question and
the figures used for computing Tenant’s proportionate share, and if Tenant’s
proportionate share so stated for such period is more or less than the amount
paid for such period, Tenant shall pay to Landlord the deficiency, or Landlord
shall refund to Tenant the excess, within ten (10) Business Days after
submission of such statement of Tenant’s proportionate share provided Tenant is
not then in default of the Lease.

 

6.03.                        Each
such statement given by Landlord pursuant to Section 6.01 or
Section 6.02 shall be conclusive and binding upon Tenant unless within one
(1) year after the receipt of such statement Tenant shall notify Landlord that
it disputes the correctness of the statement, specifying the particular
respects in which the statement is claimed to be incorrect. If such dispute is
not settled by agreement, either party may submit the dispute to arbitration as
provided in Article 36. Pending the determination of such dispute by agreement
or arbitration as aforesaid, Tenant shall, within ten (10) Business Days after
receipt of such statement, pay the Additional Charges in accordance with
Landlord’s statement, without prejudice to Tenant’s position. If the dispute
shall be determined in Tenant’s favor, Landlord shall within ten (10) Business
Days pay to Tenant the amount of Tenant’s overpayment resulting from compliance
with Landlord’s statement.

 

ARTICLE 7

COMMON AREAS

 

7.01.                        Landlord
will operate, manage, equip, light, repair and maintain, or cause to be
operated, managed, equipped, lighted, repaired and maintained, the Common Areas
for their intended purposes. Landlord reserves the right, at any time and from
time do time, to construct within the Common Areas kiosks and to install vending
machines, telephone booths, benches and the like, provided same shall not
unreasonably block or interfere with Tenant’s means of ingress or egress to and
from the Demised Premises; provided however, Landlord shall not cause a
material adverse impact on the conduct of Tenant’s business.

 

7.02.                        Tenant,
its subtenants and concessionaires, and their respective officers, employees,
agents, customers and invitees, shall have the non-exclusive right to use the
Common

 

11

 

Areas, in common with Landlord and all others to whom Landlord has
granted or may hereafter grant such right, but subject to the Rules and
Regulations. Landlord reserves the right, at any time and from time to time, to
close temporarily all or any portions of the Common Areas when in Landlord’s
reasonable judgment any such closing is necessary or desirable (a) to make
repairs or changes or to effect construction, (b) to prevent the acquisition of
public rights in such areas, or (c) to protect or preserve natural persons or
property. Landlord may do such other acts in and to the Common Areas as in its
judgment may be desirable to improve or maintain same. In connection with the
foregoing, Landlord shall make reasonable efforts to avoid a material adverse
impact on the conduct of Tenant’s business and shall provide adequate ingress
and egress to the Demised Premises.

 

ARTICLE 8

SECURITY

 

8.01.                        Upon
execution of this Lease, Tenant shall deposit with Landlord the Security
Deposit for the full and faithful payment and performance by Tenant of Tenant’s
obligations under this Lease. Such Security Deposit shall be by certified funds
or an irrevocable, evergreen letter of credit issued (in favor of Superior
Mortgagee) by a federally chartered bank in Seattle, Washington or such other
location approved by Landlord. If Tenant defaults in the full and prompt
payment and performance of any of its obligations under this Lease, including,
without limitation, the payment of Rent, Landlord may use, apply or retain the
whole or any part of the Security Deposit so deposited to the extent required
for the payment of any Rent or any other sums as to which Tenant is in default
or for any sum which Landlord may expend or may be required to expend by reason
of Tenant’s default in respect of any of Tenant’s obligations under this Lease,
including, without limitation, any damages or deficiency in the reletting of
the Demised Premises, whether such damages or deficiency accrue before or after
summary proceedings or other re-entry by Landlord. If Landlord shall so use,
apply or retain the whole or any part of the Security Deposit, Tenant shall,
upon demand, immediately deposit with Landlord a sum equal to the amount so
used, applied and retained as the Security Deposit. If Tenant shall fully and
faithfully pay and perform all of Tenant’s obligations under this Lease, the
Security Deposit or any balance thereof to which Tenant is entitled shall be
returned or paid over to Tenant, without interest, after the date on which this
Lease shall expire or sooner end or terminate, and after delivery to Landlord
of entire possession of the Demised Premises. In the event of any sale or
leasing of the Building and/or the Land, Landlord shall have the right to
transfer the Security Deposit to which Tenant is entitled to the vendee or
lessee and Landlord shall thereupon be released by Tenant from all liability
for the return or payment thereof and Tenant shall look solely to the new
landlord for the return or payment of the same. The provisions hereof shall
apply to every transfer or assignment made of the same to a new landlord. The
Tenant shall not assign or encumber or attempt to assign or encumber the monies
deposited herein as security, and neither Landlord nor its successors or
assigns shall be bound by any such assignment, encumbrance, attempted
assignment or attempted encumbrance. Notwithstanding the foregoing, provided
Tenant’s net worth, as certified by a reputable accounting firm, exceeds
$10,000,000.00, then commencing on the fifth (5th) anniversary of the
Commencement Date and for each anniversary date thereafter for so long as
Tenant’s net worth continues to exceed $10,000,000.00 the Security Deposit
shall be reduced at the rate of twenty (20%) percent per year.

 

12

 

ARTICLE 9

SUBORDINATION

 

9.01.                        This
Lease and all rights of Tenant hereunder are and shall be subject and
subordinate to all Mortgages affecting the Land and/or Building, whether or not
such Mortgages shall also cover other lands and/or buildings, to each and every
advance made or hereafter to be made under such Mortgages, to all renewals,
modifications, replacements and extensions of such Mortgages and spreaders and
consolidations of such Mortgages, to all present or future ground leases and
grants of term of the Building, Land or parts thereof. The provisions of this
Section 9.01 shall be self-operative and no further instrument of
subordination shall be required. In confirmation of such subordination, Tenant
shall promptly execute, acknowledge and deliver any instrument that Landlord or
the Mortgagee of any such Mortgage or any of their respective successors in
interest may reasonably request to evidence such subordination; and if Tenant
fails to execute, acknowledge or deliver any such instruments within ten (10)
Business Days after request therefor, Tenant hereby irrevocably constitutes and
appoints Landlord as Tenant’s attorney-in-fact, coupled with an interest, to
execute and deliver any such instruments for and on behalf of Tenant. Landlord
hereby agrees to obtain a Non-disturbance Agreement (“Non-disturbance
Agreement”) from all Superior Mortgagees with respect to Superior Mortgages
heretofore given by Landlord on the standard forms provided by such Superior
Mortgagees. The Non-disturbance Agreement shall provide, among other matters,
that should such Superior Mortgagee succeed to the rights of the Landlord under
this Lease, this Lease and the rights of Tenant hereunder shall not be
disturbed, but shall continue in full force and effect so long as no default
hereunder shall have occurred.

 

9.02.                        If
any act or omission of Landlord would give Tenant the right, immediately or
after lapse of a period of time, to cancel or terminate this Lease, or to claim
a partial or total eviction, Tenant shall not exercise such right (a) until it
has given written notice of such act or omission to Landlord, and each Superior
Mortgagee and each superior Lessor whose name and address shall previously have
been furnished to Tenant, and (b) until a reasonable period for remedying such
act or omission shall have elapsed following the giving of such notice and
following the time when such Superior Mortgagee, or Superior Lessor shall have
become entitled under such Superior Mortgage, or Superior Lease, as the case
may be, to remedy the same (which reasonable period shall in no event be less
than the period to which Landlord would be entitled under this Lease or
otherwise, after Similar notice, to effect such remedy), provided such Superior
Mortgagee, or Superior Lessor shall elect to remedy with due diligence give
Tenant notice of intention to, and commence and continue to, remedy such act or
omission.

 

9.03.                        If
any Superior Lessor or Superior Mortgagee shall succeed to the rights of
Landlord under this Lease, whether through possession or foreclosure action or
delivery of a new lease or deed, then at the request of such party so
succeeding to Landlord’s rights (“Successor Landlord”) and upon such Successor
Landlord’s written agreement to accept Tenant’s attornment, Tenant shall attorn
to and recognize such Successor Landlord as Tenant’s Landlord under this Lease
and shall promptly execute and deliver any instrument that such Successor
Landlord may reasonably request to evidence such attornment. Upon such
attornment this Lease shall continue in full force and effect as a direct lease
between the Successor Landlord and Tenant upon all of the terms, conditions and
covenants as are set forth in this Lease except that the Successor Landlord
shall not (a) be liable for any previous act or omission of Landlord under this
Lease;

 

13

 

(b) be subject to any offset, not expressly provided for in this Lease,
which theretofore shall have accrued to Tenant against Landlord; or (c) be
bound by any previous modification of this Lease or by any previous prepayment
of more than one month’s Fixed Rent or Additional Rent, unless such
modification or prepayment shall have been expressly approved in writing by the
Successor Landlord.

 

9.04.                        If
any then present or prospective Superior Mortgagee shall require any
modification(s) of this Lease, Tenant shall promptly execute and deliver to
Landlord such instruments effecting such modification(s) as Landlord shall
request, provided that such modification(s) do not adversely affect in any
material respect any of Tenant’s rights under this Lease, for example, and not
by way of limitation, changes to the Term, Fixed Rent, Additional Rent and
location of the Demised Premises.

 

ARTICLE 10

QUIET ENJOYMENT

 

10.01.                  So
long as Tenant pays all of the Rent and performs all of Tenant’s other
obligations hereunder, Tenant shall peaceably and quietly have, hold and enjoy
the Demised Premises without hindrance, ejection or molestation by Landlord or
any person lawfully claiming through or under Landlord, subject, nevertheless,
to the provisions of this Lease and to Superior Leases and Mortgages.

 

ARTICLE 11

ASSIGNMENT, SUBLETTING AND MORTGAGING

 

11.01.                  Tenant
shall not, whether voluntarily, involuntarily, or by operation of law or
otherwise, (a) assign or otherwise transfer this Lease or offer or advertise to
do so, (b) sublet the Demised Premises or any part thereof, or offer or
advertise to do so, or allow the same to be used, occupied or utilized by anyone
other than Tenant, or (c) mortgage, pledge, encumber or otherwise hypothecate
this Lease in any manner whatsoever, without in each instance obtaining the
prior written consent of Landlord, which consent shall not be unreasonably
withheld.

 

11.02.                  Any
proposed assignee, sublessee or transferee, whether or not Landlord’s consent
is required hereunder, shall in any event:

 

(a)                                  demonstrate financial
responsibility reasonably necessary to fulfill its obligations hereunder; and

 

(b)                                 occupy the Demised
Premises for the Permitted Use and only the Permitted Use, as described in this
Lease; and

 

(c)                                  in the reasonable
opinion of Landlord, be a tenant whose occupancy will be in keeping with the
dignity and character of a commercial building, including, without limitation,
telecommunications facilities, office, retail and other lawful uses and the use
and occupancy of the Building and whose occupancy will not be more
objectionable or more hazardous than that of Tenant herein or impose any
additional burden upon Landlord in

 

14

 

the maintenance and operation of the Building and shall, in the
reasonable opinion of the Landlord, be eligible, suitable and qualified as a
tenant in the Building in accordance with the provisions of this Lease.

 

In connection with any proposed assignment, sublease or transfer,
Tenant shall pay to the Landlord on demand the reasonable costs (including
attorney’s fees and costs) that may be incurred by the Landlord, including,
without limitation, the reasonable costs of making investigations as to the
acceptability of the proposed assignee or sublessee.

 

11.03.                  An
assignment of this Lease as to which Landlord’s consent shall be required shall
be deemed to include: (i) if Tenant is a corporation not listed on a recognized
security exchange, one or more sales or transfers of stock, by operation of law
or otherwise, or creation of new stock, by which an aggregate of more than 50%
of Tenant’s stock shall be vested in a party or parties who are non-stockholders
as of the date hereof (except in the case of an Initial Public Offering issued
through a nationally recognized securities exchange); and (ii) if Tenant is a
sole owner, partnership, limited liability company or joint venture, the
transfer of any interest in the Tenant, whether by sale, exchange, merger,
consolidation or otherwise.

 

Subject to Section 11.02, Landlord shall grant its consent to
assignments of this Lease pursuant to transactions with a corporation into
which the Tenant may be merged or consolidated or to any corporation which
shall be an affiliate, subsidiary, parent or successor of Tenant, or of a
corporation into which or with which Tenant may be merged or consolidated, or
to a partnership, the majority interest in which shall be owned by stockholders
of Tenant.

 

For the purposes of this Article, a “subsidiary” or “affiliate” or
“successor” of Tenant shall mean the following:

 

(a)                                  an
“affiliate” shall mean any corporation which, directly or indirectly, controls
or is controlled by or is under common control with Tenant. For this purpose
“control” shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such
corporation, whether through the ownership of voting securities or by contract
or otherwise;

 

(b)                                 a
“subsidiary” shall mean any corporation, not less than 50% of whose outstanding
stock shall, at the time, be owned directly or indirectly by Tenant; and

 

(c)                                  a
“successor” of Tenant shall mean:

 

(i)                                     a
corporation in which or with which Tenant, its corporate successors or assigns,
is merged or consolidated, in accordance with applicable statutory provisions
for merger or consolidation of corporations, provided that by operation of law
or by effective provisions contained in the instruments of merger or
consolidation, the liabilities of the corporations participating in such merger
or consolidation are assumed by the corporation surviving such merger or
created by such consolidation, or

 

15

 

(ii)                                  a
corporation acquiring this Lease and the terms hereby demised and a substantial
portion of the property and assets of Tenant, its corporate successors or
assigns, or

 

(iii)                               a
corporate successor to a successor corporation becoming such either by the
methods described in (i) or (ii) provided that in the completion of such
merger, consolidation, acquisition or assumption, the successor shall have a
net worth of no less than that of Tenant.

 

11.04.                  If
this Lease is assigned, whether or not in violation of this Lease, Landlord may
collect Rent from the assignee. If the Demised Premises or any part thereof are
sublet or used or occupied by anybody other than Tenant, whether or not in
violation of this Lease, Landlord may, after default collect Rent from the
subtenant or occupant. In either event, Landlord may apply the net amount
collected to the Rent, but no such assignment, subletting, occupancy or
collection shall be deemed a waiver of any of the provisions of
Section 11.01 or Section 11.02, or the acceptance of the assignee,
subtenant or occupant as tenant, or a release of Tenant from the performance by
Tenant of Tenant’s obligations under this Lease. The consent by Landlord to any
assignment, mortgaging, subletting or use or occupancy by others shall not in
any way be considered to relieve Tenant from obtaining the express written
consent of Landlord to any other or further assignment, mortgaging or
subletting or use or occupancy by others not expressly permitted by this Article 11.
References in this Lease to use or occupancy by others (that is, anyone other
than Tenant) shall not be construed as limited to subtenants and those claiming
under or through subtenants but shall be construed as including also licensees
and others claiming under or through Tenant, immediately or remotely.

 

11.05.                  Any
permitted assignment or transfer, whether made with Landlord’s consent or
without Landlord’s consent, shall be made only if, and shall not be effective
until, the assignee or transferee shall execute, acknowledge and deliver to
Landlord an agreement in form and substance satisfactory to Landlord whereby
the assignee or transferee shall assume Tenant’s obligations under this Lease
from and after the effective date of the assignment or transfer and whereby the
assignee or transferee shall agree that all of the provisions in this
Article 11 shall, notwithstanding such assignment or transfer, continue to
be binding upon it in respect to all future assignments and transfers.
Notwithstanding any assignment or transfer, whether or not in violation of the
provisions of this Lease, and notwithstanding the acceptance of Rent by
Landlord from an assignee, transferee, or any other party, the original Tenant
and any other person(s) who at any time was or were Tenant shall remain fully
liable for the payment of the Rent and for Tenant’s other obligations under
this Lease.

 

11.06.                  The
liability of the originally named Tenant and any other Person(s) who at any
time was or were Tenant for Tenant’s obligations under this Lease shall not be
discharged, released or impaired by any agreement or stipulation made by
Landlord extending the time of, or modifying any of the obligations of, this
Lease, or by any waiver or failure of Landlord to enforce any of the obligations
of this Lease.

 

11.07.                  The
listing of any name other than that of Tenant, whether on the doors of the
Demised Premises or the Building directory, or otherwise, shall not operate to
vest any right or interest in this Lease or in the Demised Premises, nor shall
it be deemed to be the consent of

 

16

 

Landlord to any assignment or transfer of this Lease or to any sublease
of the Demised Premises or to the use or occupancy thereof by others.

 

11.08.                  In
the event of any assignment or sublease of the Demised Premises which requires
the payment of Fixed Rent, Additional Rent and other charges in excess of the
amounts payable to the Landlord as set forth in this Lease, then the “net
excess or profit” shall be divided and paid equally to Landlord and Tenant. In
the event the Tenant fails to make payment of such excess or profit in
violation of this Lease, Landlord may collect such rent directly from the
assignee or subtenant. The “net excess or profit” shall mean the amount
remaining after payment of Fixed Rent, Additional Rent and other standard,
customary, and reasonable charges, marketing, brokerage and other professional
fees and expenses reasonably incurred by Tenant.

 

ARTICLE 12

COMPLIANCE WITH LAWS

 

12.01.                  Tenant
shall comply with all Legal Requirements which shall, in respect of the Demised
Premises or the use and occupation thereof, or the abatement of any nuisance
in, on or about the Demised Premises, impose any violation, order or duty on
Landlord or Tenant; and Tenant shall pay all the cost, expenses, fines,
penalties and damages which may be imposed upon Landlord or any Superior Lessor
by reason of or arising out of Tenant’s failure to fully and promptly comply
with and observe the provisions of this Section 12.01. However, Tenant
need not comply with such law or requirement of any public authority so long as
Tenant shall be contesting the validity thereof, or the applicability thereof
to the Demised Premises, in accordance with Section 12.02.

 

12.02.                  Tenant
may contest by appropriate proceedings prosecuted diligently and in good faith,
the validity, or applicability to the Demised Premises, of any Legal
Requirement, provided that (a) Landlord shall not be subject to criminal
penalty or to prosecution for a crime, and neither the Demised Premises nor any
part thereof shall be subject to being condemned or vacated by reason of
non-compliance or otherwise by reason of such contest; (b) before the
commencement of such contest, Tenant shall furnish to Landlord either (i) the
bond of a surety company satisfactory to Landlord, which bond shall be, as to
its provisions and form, satisfactory to Landlord and shall be in an amount at
least equal to 125% of the cost of such compliance (as estimated by a reputable
contractor designated by Landlord) and shall indemnify Landlord against the
cost thereof and against all liability for damages, interest, penalties and
expenses (including reasonable attorney’s fees and expenses), resulting from or
incurred in connection with such contest or non-compliance, or (ii) other
security in place of such bond satisfactory to Landlord; (c) such
non-compliance or contest shall not constitute or result in any violation of
any Superior Lease or Superior Mortgage, or if any such Superior Lease and/or
Superior Mortgage shall permit such non-compliance or contest on condition of
the taking of action or furnishing of security by Landlord, such action shall
be taken and such security shall be furnished at the expense of Tenant; and (d)
Tenant shall keep Landlord advised as to the status of such proceedings.
Without limiting the application of the above, Landlord shall be deemed subject
to prosecution for a crime if Landlord, or its managing agent, or any officer,
director, partner, shareholder or employee of Landlord or its managing agent,
as an individual, is charged with a crime of any kind or degree whatsoever,
whether by service of summons or otherwise, unless such charge is withdrawn
before Landlord or its managing agent, or such officer, director,

 

17

 

partner, shareholder or employee of Landlord or its managing agent (as
the case may be) is required to plead or answer thereto.

 

12.03.                  Landlord
shall comply with all then existing Legal Requirements and shall pay all the
cost, expenses, fines, penalties and damages which may be imposed upon Tenant
for any violation by Landlord of the Legal Requirements existing at the time of
the completion of Tenant’s Initial Improvements. Landlord shall comply with all
Legal Requirements applicable to the Building (other than the Demised Premises)
during the Term.

 

ARTICLE 13

INSURANCE AND INDEMNITY

 

13.01.                  Landlord
shall maintain or cause to be maintained All-Risk insurance in respect of the
Building and other improvements on the Land normally covered by such insurance
(except for the property Tenant is required to cover with insurance under
Section 13.02 and similar property of other tenants and occupants of the
Building and except for buildings and other improvements which are on land
neither owned by nor leased to Landlord) for the benefit of Landlord, any
Superior Lessors, any Superior Mortgagees and any other parties Landlord may at
any time and from time to time designate, as their interests may appear, but not
for the benefit of Tenant, and shall maintain rent insurance as required by any
Superior Lessor or any Superior Mortgagee. The All-Risk insurance will be in
the amounts required by the Superior Lessor or any Superior Mortgagee but not
less than the amount sufficient to avoid the effect of the coinsurance
provisions of the applicable policy or policies. Landlord may also maintain any
other forms and types of insurance which Landlord shall deem reasonable in
respect to the Building and Land. Landlord shall have the right to provide any
insurance maintained or caused to be maintained by it under blanket policies.

 

13.02.                  Tenant
shall maintain the following insurance: (a) comprehensive general public
liability insurance in respect of the Demised Premises and the conduct and
operation of business therein, with limits of not less than $6,000,000 for
bodily injury or death and $3,000,000 for property damage, including water
damage, sprinkler leakage legal liability, independent contractors, premises
operation, products and completed operations, (b) All-Risk insurance in respect
to Tenant’s stock in trade, fixtures, furniture, furnishings, removable floor
coverings, equipment, signs, and all other property of Tenant in the Demised
Premises, in any amounts required by any Superior Lessor or any Superior
Mortgagee but not less than 80% of the full insurable value of the property
covered and not less than the amount sufficient to avoid the effect of the
coinsurance provisions of the applicable policy or policies; (c) workers’
compensation insurance; (d) rental insurance in an amount equal to not less
than one (1) year’s Fixed Rent and Additional Rent, which shall be
automatically renewable annually; (e) Business Loss insurance and (f) any other
insurance required for compliance with the Insurance Requirements. Landlord,
any manager of the Building and any Superior Lessors or Superior Mortgagees
shall be named as insureds in all said policies of insurance and shall be
protected against all liability occasioned by an occurrence insured against.
All such policies of insurance shall be: (i) written as “occurrence” policies;
(ii) written as primary policy coverage and not contributing with or in excess
of any coverage which Landlord or any Superior Mortgagee or Superior Lessor may
carry; and (iii) issued by insurance company reasonably satisfactory to
Landlord. Tenant shall deliver to Landlord and any other insured(s)
certificates for such fully

 

18

 

paid-for policies at least ten (10) days before the Commencement Date.
Tenant shall procure and pay for renewals of such insurance from time to time
before the expiration thereof, and Tenant shall deliver to Landlord and any
other insured(s) certificates therefor at least thirty (30) days before the
expiration of any existing policy. All such policies shall be issued by
companies of recognized responsibility licensed to do business in the State of
Washington and all such policies shall contain a provision whereby the insurer
shall provide written notice to Landlord and any additional insured(s) at least
twenty (20) days prior to cancellation or modification of such policies.

 

13.03.                  Tenant
shall not do, permit or suffer to be done any act, matter, thing or failure to
act in respect of the Demised Premises or use or occupy the Demised Premises or
conduct or operate Tenant’s business in any manner objectionable to any
insurance company or companies whereby the fire insurance or any other
insurance then in effect in respect to the Land and Building or any part
thereof shall become void or suspended or whereby any premiums in respect of
insurance maintained by Landlord shall be higher than those which would
normally have been in effect for the occupancy contemplated under the Permitted
Use. Landlord shall give Tenant written notice in the event Landlord becomes
aware of Tenant’s breach of the provisions of this Section 13.03. In case
of a breach of the provisions of this Section 13.03, in addition to all
other rights and remedies of Landlord hereunder, Tenant shall (a) indemnify
Landlord, Superior Lessors and the Superior Mortgagees, and hold Landlord,
Superior Lessors and Superior Mortgagees harmless from and against any loss
which would have been covered by insurance which shall have become void or
suspended because of such breach by Tenant and (b) pay to Landlord any and all
increases of premiums on any insurance, including, without limitation, rent
insurance, resulting from any such breach.

 

13.04.                  Subject
to Section 13.03 and to the extent not covered by Tenant’s insurance,
Tenant shall indemnify, defend and hold harmless Landlord, Superior Mortgagee
and all Superior Lessors and their respective partners, joint venturers,
directors, officers, agents, servants and employees from and against any and
all claims arising from or in connection with (a) the conduct or management of
the Demised Premises or of any business therein or any work or thing whatsoever
done, or any condition created (other than by Landlord) in the Demised Premises
during the Term or during the period of time, if any, prior to the Commencement
Date that Tenant may have been given access to the Demised Premises, caused by
Tenant, or any of its subtenants or licensees or its or their partners, joint
venturers, directors, officers, agents employees representatives or
contractors; (b) any act, omission or negligence of Tenant or any of its
subtenants or licensees or its or their partners, joint venturers, directors,
officers, agents, employees or contractors; (c) any accident, injury or damage
whatever (unless and to the extent caused by Landlord’s negligence) occurring
in the Demised Premises, caused by Tenant, or any of its subtenants or
licensees or its or their partners, joint venturers, directors, officers
agents, employees or contractors; and (d) any breach or default by Tenant in
the full and prompt payment and performance of Tenant’s obligations under this
Lease. Tenant’s obligation to indemnify shall also include all costs, expenses
and liabilities incurred in or in connection with each such claim or action or
proceeding brought thereon, including without limitation, all attorney’s fees,
expert fees and expenses. In case any action or proceeding is brought against
Landlord, Superior Mortgagee and/or any Superior Lessor and/or its or their
partners, joint venturers, directors, officers, agents and/or employees by
reason of such claim, Tenant upon

 

19

 

notice from Landlord, Superior Mortgagee and/or such Superior Lessor,
shall resist and defend such action or proceeding by counsel reasonably
satisfactory to Landlord.

 

13.05.                  Landlord,
Superior Mortgagee or any Superior Lessor, shall not be liable to or
responsible for, and Tenant hereby releases Landlord, Superior Mortgagee and
Superior Lessor from all liability and responsibility to Tenant and any person
claiming by, through or under Tenant, by way of subrogation, for any injury,
loss or damage to any person or property in the Demised Premises or to Tenant’s
business irrespective of the cause of such injury, loss or damage. This release
shall apply to the extent that such injury, loss or damage to person or
property is covered and actually paid by insurance, regardless of whether such
insurance is payable to or protects Landlord, Tenant or both. Nothing herein
shall be construed to impose any other or greater liability upon Landlord than
would have existed in the absence of this provision. Further, Tenant shall
require its insurers to include in all of Tenant’s insurance policies which
could give rise to a right of subrogation against Landlord, Superior Mortgagee
and Superior Lessor a clause or endorsement whereby the insurer waives any
rights of subrogation against Landlord, Superior Mortgagee and such Superior
Lessor or permits the insured, prior to any loss, to agree with a third party
to waive any claim it may have against said third party without invalidating
the coverage under the insurance policy. The release in favor of Landlord,
Superior Mortgagee and Superior Lessors, contained herein, is in addition to,
and not in substitution for, or in diminution of the hold harmless and
indemnification provisions contained in this Article and in
Article 23.

 

13.06.                  Except
as provided herein, Tenant shall not be liable or responsible for and Landlord
hereby releases Tenant from all liability and responsibility to Landlord and
any person claiming by, through or under Landlord by way of subrogation for any
injury, loss or damage to any person or property in the Demised Premises
irrespective of the cause of such injury, loss or damage. This release shall
apply to the extent that such injury, loss or damage to person or property is
covered by insurance, regardless of whether such insurance is payable to or
protects Landlord, Tenant or both. Nothing herein shall be construed to impose
any other or greater liability upon Tenant than would have existed in the
absence of this provision. Further, Landlord shall require its insurers to
include in all of Landlord’s insurance policies which could give rise to a
right of subrogation against Tenant, a clause or endorsement whereby the
insurer waives any right of subrogation against Tenant or permits the insured,
prior to any loss, to agree with a third party to waive any claim against said
third party without invalidating the coverage under the insurance policy.

 

ARTICLE 14

RULES AND REGULATIONS

 

14.01.                  Tenant
and its employees and agents shall faithfully observe and comply with the Rules
and Regulations (attached hereto as Exhibit C) and such reasonable changes
therein (whether by modification, elimination or addition) as Landlord at any
time or times hereafter may make and communicate to Tenant, which, in
Landlord’s reasonable judgment, shall be desirable or necessary for the
reputation, safety, care or appearance of the Land and Building, or the
preservation of good order therein or the operation or maintenance of the
Building or its equipment and fixtures, or the Common Areas, and which do not
unreasonably affect the conduct of Tenant’s business in the Demised Premises;
provided, however, that in case of any conflict or

 

20

 

inconsistency between the provisions of this Lease and any of the Rules
and Regulations, the provisions of this Lease shall control. Nothing contained
in this Lease shall be construed to impose upon Landlord any duty or obligation
to enforce the Rules and Regulations against any other tenant or any employees
or agents of any other tenant, and Landlord shall not be liable to Tenant for
violation of the Rules and Regulations by any other tenant or its employees,
agents, invitees or licensees. Landlord shall give Tenant notice of any change
in the Rules and Regulations. Landlord shall not enforce the Rules and
Regulations against Tenant in an arbitrary or discriminatory manner. Tenant
shall further comply with any rules, regulations, instructions or directions
posted in, on or about the Building.

 

ARTICLE 15

ALTERATIONS

 

15.01.                  Except
with respect to Tenant’s Initial Improvements, Tenant shall not make any
alterations or additions to the Demised Premises, or make any holes or cuts in
the walls, ceilings, roofs or floors thereof, or change the architectural
treatment of the Demised Premises without the Landlord’s prior written consent,
which consent shall not be unreasonably withheld. Tenant shall submit to
Landlord plans and specifications for such work at the time notice is given to
Landlord or at any time requested by Landlord, which plans and specifications
shall be subject to Landlord’s prior written approval which shall not be
unreasonably withheld. Before proceeding with any alterations, Tenant shall
fully and promptly comply with and observe the Rules and Regulations then in
force in respect of the making of alterations. Any review or approval by
Landlord of any plans and/or specifications with respect to any alterations is
solely for Landlord’s benefit, and without any representation or warranty
whatsoever to Tenant in respect to the adequacy, correctness or efficiency
thereof or otherwise. Tenant shall pay Landlord the actual cost of any
architectural, engineering, legal or other review of any alterations or
additions to the Demised Premises.

 

15.02.                  Tenant
shall obtain all necessary governmental permits and certificates for the
commencement and prosecution of permitted alterations and for final approval
thereof upon completion, and shall cause alterations to be performed in
compliance with all applicable Legal Requirements and Insurance Requirements.
Alterations shall be diligently performed in a good and workmanlike manner,
using new materials and equipment at least equal in quality and class to the
original installations of the Building. Alterations shall be performed by
Contractors subject to Landlord’s reasonable approval. Alterations shall be
made in such manner as not to unreasonably interfere with or delay and as not
to impose any additional expense upon Landlord in the construction,
maintenance, repair, rental or operation of the Building; and if any such
additional expense shall be incurred by Landlord as a result of Tenant’s making
of any alterations, Tenant shall pay any such additional expense upon demand.
Throughout the making of alterations, Tenant shall carry, or cause to be
carried, workmen’s compensation insurance in statutory limits, a full payment
and performance bond in favor of Landlord and general liability insurance, with
completed operation endorsement, for any occurrence in or about the Building,
under which Landlord and its managing agent and any Superior Lessor whose name
and address shall previously have been furnished to Tenant shall be named as
parties insured, in such limits as Landlord may reasonably require, with
insurers reasonably satisfactory to Landlord. Tenant shall furnish Landlord
with reasonably satisfactory evidence that such insurance is in effect at or

 

21

 

before the commencement of alterations and on request at reasonable
intervals thereafter during the making of alterations.

 

ARTICLE 16

LANDLORD’S AND TENANT’S PROPERTY

 

16.01.                  All
fixtures, equipment, improvements and appurtenances attached to or built into
the Demised Premises at the commencement of or during the Term, whether or not
by or at the expense of Tenant, shall be and remain a part of the Demised
Premises, shall be deemed to be the property of Landlord and shall not be
removed by Tenant, except as provided in Section 16.02. Further, any
carpeting or other personal property in the Demised Premises on the
Commencement Date, unless installed and paid for by Tenant, shall be and shall
remain Landlord’s property and shall not be removed by Tenant. Notwithstanding
the foregoing, any switch equipment owned or leased by Tenant for use at the
Demised Premises shall remain Tenant’s Property.

 

16.02.                  All
movable partitions, business and trade fixtures, machinery and equipment,
communications equipment and office equipment, whether or not attached to or
built into the Demised Premises, which are installed in the Demised Premises or
the Building by or for the account of Tenant without expense to Landlord and
can be removed without structural damage to the Building and all furniture,
furnishings, and other movable personal property owned by Tenant and located in
the Demised Premises (collectively, “Tenant’s Property”) shall be and shall
remain the property of the Tenant and may be removed by Tenant at any time
during the Term; provided that if any of the Tenant’s Property is removed,
Tenant shall repair or pay the cost of repairing any damage to the Demised Premises,
the Building or the exterior Common Areas, resulting from the installation
and/or removal thereof. Any equipment or other property for which Landlord
shall have granted any allowance or credit to Tenant shall not be deemed to
have been installed by or for the account of Tenant without expense to
Landlord, shall not be considered as the Tenant’s Property and shall be deemed
the property of Landlord.

 

16.03.                  In
the event at or before the Expiration Date or the date of any earlier
termination of this Lease, or within thirty (30) days after the Expiration Date
or an earlier termination date, Tenant removes from the Demised Premises all of
the Tenant’s Property (except such items thereof as Landlord shall have
expressly permitted to remain, which property shall become the property of the
Landlord if not removed), Tenant shall repair any damage to the Demised
Premises, the Building and the Common Areas resulting from any installation
and/or removal of the Tenant’s Property. Any items of the Tenant’s Property which
shall remain in the Demised Premises after the Expiration Date or after a
period of thirty (30) days following the Expiration Date or an earlier
termination date, may, at the option of the Landlord, be deemed to have been
abandoned, and in such case much items may be retained by Landlord as its
property or disposed of by Landlord, without accountability, in such manner as
Landlord shall determine at Tenant’s expense.

 

22

 

ARTICLE 17

REPAIRS, MAINTENANCE AND CLEANING

 

17.01.                  Tenant
shall, throughout the Term, take good care of the Demised Premises, the
fixtures, the equipment and appurtenances therein and any and all equipment
outside of the Demised Premises installed by Tenant. Tenant, at its expense,
shall be responsible for all repairs, interior and exterior, structural and
non-structural, ordinary and extraordinary, in and to the Demised Premises, the
premises of other tenants, the Building (including the facilities and systems
thereof), and the Common Areas the need for which arises out of (a) the
performance of alterations, (b) the installation, use or operation of the
Tenant’s Property in the Demised Premises, (c) the moving of the Tenant’s
Property in or out of the Building, or (d) the act, omission, misuse or neglect
of Tenant or any of its subtenants or its or their employees, agents,
contractors or invitees. Tenant shall promptly replace all scratched, damaged
or broken doors and glass in and about the Demised Premises and shall be
responsible for all repairs, maintenance and replacement of wall and floor
coverings in the Demised Premises and for the repair and maintenance of all
sanitary and electrical fixtures and equipment therein. Tenant shall promptly
make all repairs in or to the Demised Premises for which Tenant is responsible.
Any repairs required to be made by Tenant to the mechanical, electrical,
sanitary, heating, ventilating, air-conditioning or other systems of the
Building within the Demised Premises shall be performed only by contractor(s)
designated by Landlord in its sole reasonable discretion. Any other repairs in
or to the Building, its facilities and systems or the premises of other tenants
for which Tenant is responsible shall be performed by Landlord at Tenant’s
expense; but Landlord may, at its option, before commencing any such work or at
any time thereafter, require Tenant to furnish to Landlord such security, in
form (including, without limitation, a bond issued by a corporate surety
licensed to do business in Washington) and amount, as Landlord shall deem
necessary to assure the payment for such work by Tenant. In the event that
Tenant’s use or operation of any equipment installed either within the Demised
Premises or outside the Demised Premises for Tenant’s use violates any governmental
law, rule, regulation or mandate, Tenant shall be fully responsible, at its own
cost and expense, for bringing the premises into compliance with such
governmental laws, rules, regulations or mandates.

 

17.02.                  Landlord
shall be responsible for all repairs and maintenance in and to the Building
(including the facilities and systems and structure thereof), except for those
repairs and maintenance for which Tenant is responsible pursuant to any of the
provisions of this Lease and except for any building systems installed by
Tenant for Tenant’s exclusive use. Tenant shall give Landlord written notice of
any repairs it believes Landlord should make. In the event Landlord has not
commenced making the repairs within ten (10) Business Days subsequent to Landlord’s
receipt of this notice, Tenant may elect to give Landlord written notice of
Tenant’s intention to do the repair. In the event Landlord has not commenced
the repair within ten (10) Business Days of Landlord’s receipt of such written
notice, Tenant may do the repair and Landlord shall reimburse Tenant for all
reasonable costs in connection therewith. The foregoing notwithstanding, Tenant
shall at no time and in no event be entitled to make, or cause to be made, any
repairs or replacements to, or provide maintenance for, the electrical
(including, without limitation, electrical generator systems), the heating,
ventilating and air-conditioning systems in the Building, or any conduits,
cables, wiring or piping in the vertical risers or other locations in the
Building.

 

23

 

17.03.                  Except
as otherwise expressly provided in this Lease, Landlord shall have no liability
to Tenant, nor shall Tenant’s covenants and obligations under this Lease be
reduced or abated in any manner whatsoever, by reason of any inconvenience,
annoyance, interruption or injury to business arising from Landlord’s doing any
repairs, maintenance, or changes which Landlord is required or permitted by
this Lease, or required by law, to make in or to any portion of the Building.

 

17.04.                  Landlord,
at its cost and expense (but includable in Operating Expenses), shall be
responsible for furnishing cleaning services for the Common Areas of the
Building. Tenant, at is cost and expense, shall be responsible for furnishing
cleaning services for the Demised Premises. Tenant shall be responsible for the
disposal and removal of all of its garbage and waste at the Demised Premises on
a periodic basic (but not less than on three (3) occasions per week) and shall
utilize a waste or garbage contractor for such purpose reasonably satisfactory
to Landlord.

 

ARTICLE 18

ELECTRIC ENERGY

 

18.01.                  Landlord
shall provide reasonably sufficient leads at an electrical vault, located in
the first floor of the Building for 800 amps at 480 volts electrical service
dedicated to the Demised Premises. Tenant, at its sole cost and expense, shall
provide and install an electrical meter in order to measure electrical usage by
Tenant at the Demised Premises together with a switch and bus duct to the
Demised Premises. Prior to the installation of such electrical service, Tenant
shall have access to up to 400 amps at 480 volts of electrical services and
shall be at Tenant’s sole cost and expense.

 

18.02.                  Landlord
shall have the right at any time and from time to time during the Term if
permitted by the Legal Requirements, to contract for service from a company or
companies (“Electric Service Provider”) different from the company providing
electrical service to the Building and the Demised Premises as of the date of
this Lease.

 

18.03.                  Landlord
shall have full and unrestricted access to all air-conditioning and heating
equipment, and to all other utility installations servicing the Building and
the Demised Premises. Further, Tenant shall cooperate with Landlord and the
Electric Service Provider at all times and, as reasonably necessary, shall
allow Landlord and Electric Service Provider reasonable access to the
Building’s electrical lines, feeders, risers, conduits, wiring and any other machinery
within the Demised Premises. Landlord reserves the right temporarily to
reasonably interrupt, curtail, stop or suspend electrical, air-conditioning,
heating service, and all other utility, or other services, because of
Landlord’s inability to obtain, or difficulty or delay in obtaining, labor or
materials necessary therefor, or in order to comply with governmental
restrictions in connection therewith, or in order for the Landlord to perform
any preventive maintenance in connection with the Building or any Building
system, or to change the Electric Service Provider for the Building for any
cause beyond Landlord’s reasonable control. No diminution or abatement of Fixed
Rent, Additional Rent, or other compensation shall be or will be claimed by
Tenant, nor shall this Lease or any of the obligations of Tenant hereunder be
affected or reduced by reason of such interruptions, stoppages or curtailments,
the causes of which are hereinabove enumerated, nor shall the same give rise to
a claim in Tenant’s favor that such failure constitutes

 

24

 

actual or constructive, total or partial eviction from the Demised
Premises, unless such interruptions, stoppages or curtailments have been due to
the intentional or willful misconduct of Landlord.

 

18.04.                  Landlord
shall not be liable or responsible to Tenant in any way for any loss, damage or
expense which Tenant may sustain or incur as a result of any (i) interruption,
curtailment or failure (whether or not temporary) or (ii) defect in the supply,
character, quantity, availability or suitability of electricity (including
generator power) furnished to the Demised Premises by reason of any
requirement, act or omission of the Electric Service Provider or any other
company servicing the Building with electricity or for the performance of any
maintenance or repair required hereunder or for any other reason except if and
to the extent the same is caused by or results from the intentional or willful
misconduct of Landlord.

 

18.05.                  If
either the quantity or character of electrical service is changed by the
Electric Service Provider or other company supplying electricity to the
Building or is no longer available or suitable for Tenant’s requirements, no
such change, unavailability or unsuitability shall constitute an actual or
constructive eviction, in whole or in part, or entitle Tenant to any abatement
or diminution in the payment of Fixed Rent, or relieve Tenant from any of its
obligations under this Lease, or impose any liability upon Landlord, or its
agents, by reason of inconvenience or annoyance to Tenant, or injury to or
interruption of Tenant’s business, or otherwise.

 

18.06.                  Tenant
shall pay, as and for Additional Rent, all charges imposed by the Electric
Service Provider servicing the Demised Premises and the Building promptly when
due based upon a submeter installed by Tenant at its sole cost and expense. In
the event that the Electric Service Provider servicing the Demised Premises
directly charges Tenant, Tenant shall make payment of such charges promptly
when due and shall pay all late payments, interest and other charges should
Tenant be delinquent in its payment to the Electric Service Provider. In the
event that Tenant does not pay the Additional Rent owing by Tenant or pay the
Electric Service Provider pursuant to this Article within ten (10)
Business Days after the request for same by Landlord, Landlord may, without
further notice and in addition to any other remedies Landlord may have,
discontinue the service of electricity to the Demised Premises without
releasing Tenant from any liability under this Lease and without Landlord
incurring any liability for any damage or loss sustained by Tenant as the
result of such discontinuance. If any tax is imposed upon Landlord’s receipts
from the sale or resale of electric current to Tenant by any Federal, state or
municipal authority, Tenant agrees that, unless prohibited by law, Tenant’s
proportionate share of such tax shall be passed on to, and included in the bill
of, and paid by Tenant to Landlord as Additional Rent. Tenant hereby agrees to
indemnify, defend and hold Landlord harmless from and against any claims,
damages, lawsuits, penalties, interest or other charges imposed by the Electric
Service Provider as a result of electrical energy utilized by the Tenant and
directly charged to Tenant by the Electric Service Provider.

 

18.07.                  Except
as otherwise provided, Tenant will make no electrical installations,
alterations, additions or changes to electrical equipment or appliances without
the prior written consent of Landlord in each instance which consent shall not
be unreasonably withheld or delayed. Tenant will at all times comply with the
rules, regulations, terms and conditions applicable to service, equipment,
wiring and requirements of the Electric Service Provider

 

25

 

supplying electricity to the Building. Tenant covenants and agrees that
at all times its use of electric current will not exceed the capacity of
existing feeders to the Building or the risers or wiring installation and
Tenant will not use any electrical equipment which, in Landlord’s reasonable
judgment, will overload such installations or interfere with the use thereof by
other tenants of the Building. In the event that, in Landlord’s reasonable
judgment, Tenant’s electrical requirements necessitate installation of an
additional riser, risers or other proper and necessary equipment, the same
shall be installed by Landlord at Tenant’s sole expense and shall be chargeable
and collectible as Additional Rent and paid within ten (10) days after the
rendition of a bill to Tenant therefor.

 

18.08.                  Tenant,
at Tenant’s sole cost and expense, shall be permitted to connect to Landlord’s
generators and fuel tank system at a cost of $750 per amp of capacity, plus a
pro rata share of the actual cost to maintain and operate the generators.
Tenant will be required to separate their panel and install shunt trip breakers
in order to shed any non-backed-up power. Tenant shall be allowed, at its sole
cost and expense, to install a plug for a roll-up generator subject to all
governmental codes, rules and regulations and subject further to Landlord’s
prior written approval thereof.

 

ARTICLE 19

HEAT, VENTILATION AND AIR-CONDITIONING

 

19.01.                  Landlord
shall maintain and operate the Building’s heating, ventilating and
air-conditioning systems (hereinafter called the “Systems”), and shall furnish
heat, ventilating and air-conditioning (hereinafter collectively called “HVAC
services”), in the Demised Premises through the Systems. Tenant shall pay as
and for Additional Rent for the HVAC Services the sum of $750 per ton for 60
tons, plus a pro rata share of the actual costs to maintain and operate the
Systems. Tenant shall have the use of up to 50 tons of existing building water
prior to the upgrade of the Systems. The cost to distribute and the cost of
actual use shall be at Tenant’s sole coat and expense.

 

19.02.                  Landlord
shall furnish necessary elevator service during Business Hours and shall have
an elevator subject to call at all other times. Further, Landlord shall make
available to Tenant a crane for the installation of equipment in the Demised
Premise or to perform Tenant’s Initial Improvements. If Landlord shall at any
time have elected to furnish operator service for any automatic elevators,
Landlord shall have the right to discontinue furnishing such service. If Tenant
shall require the use of the Building’s elevators or crane, Tenant shall be
responsible for and shall pay Landlord’s costs and expenses for the use
thereof, as an Additional Rent, within ten (10) Business Days after demand,
including without limitation, any expense for operator service for such
elevator or crane which Landlord may deem necessary in connection with Tenant’s
use of such elevator or crane. Landlord shall have the right to change the
operation or manner of operating any of the elevators in the Building and shall
have the right to discontinue, temporarily or permanently, the use of any one
or more cars in any of the banks of elevators.

 

26

 

ARTICLE 20

BROADCAST INTERFERENCE

 

20.01.                  Interference:
As used in this Lease, “interference” with broadcasting activity means:

 

(a)                                  interference
within the meaning of the provisions of the recommended practices of the
Electronics Industries Association and the rules and regulations of the Federal
Communications Commission (“FCC”) as in effect from time to time, or

 

(b)                                 a
material impairment of the quality of either sound or picture signals on a
broadcasting activity as may be defined by the FCC at any hour during the
period of operation of the activity, as compared with that which would be
obtained if no other broadcaster were broadcasting from the Building or had any
equipment on the building or in the Demised Premises.

 

Tenant shall take reasonable, prompt and diligent actions to prevent
and shall promptly remove or cause to be removed any interference with
broadcast activities of Landlord, other tenants of Landlord, or other occupants
of the Building caused by Tenant’s use of the Demised Premises.

 

ARTICLE 21

ACCESS CHANGES AND NAME

 

21.01.                  Except
for the space within the inside surfaces of all outside walls, ceilings,
floors, windows and doors bounding the Demised Premises, all of the Building,
including, without limitation, exterior Building walls, core corridor walls and
doors and any core corridor entrance, and any space in or adjacent to the
Demised Premises used for shafts, risers, chaseways, stacks, pipes, conduits,
fan rooms, ducts, electric or other utilities, sinks or other Building
facilities and the use thereof, as well as access thereto in, on or through the
Demised Premises for the purpose of operating, maintenance, decoration and
repair, are reserved to Landlord. Landlord also reserves the right to install,
erect, use and maintain pipes, ducts and conduits in, on or through the Demised
Premises, provided such are properly enclosed.

 

21.02.                  Landlord
and its agents shall have the right to enter and/or pass through the Demised
Premises at any time or times (a) to examine the Demised Premises and to show
them to actual and prospective Superior Lessors, Superior Mortgagees, or
prospective purchasers of the Building, and (b) to make such repairs,
alterations, additions and improvements in or to the Demised Premises and/or in
or to the Building or its facilities and equipment as Landlord is required or
desires to make. Reasonable access upon ten (10) days prior written notice
shall also be provided to other tenants or occupants in the Building for any
repair or maintenance of risers or conduits in the Demised Premises. Landlord
shall be allowed to take all materials into and upon the Demised Premises that
may be required in connection therewith, without any liability to Tenant and
without any reduction of Tenant’s obligations hereunder. During the period of
eighteen (18) months prior to the Expiration Date or the date when Tenant has
given Landlord notice of Tenant’s intention to terminate this Lease pursuant to
the provisions herein, Landlord and its agents may exhibit the Demised Premises
to prospective tenants. Landlord shall give

 

27

 

notice to the Tenant reasonable under the circumstances and make
reasonable efforts to avoid a material adverse impact on the conduct of
Tenant’s business.

 

21.03                     Tenant
shall have access to the elevator lobby of the Building and the Demised
Premises twenty-four (24) hours per day, seven (7) days per week throughout the
Calendar Year.

 

21.04.                  If,
during the last month of the Term, Tenant has removed all or substantially all
of the Tenant’s Property from the Demised Premises, Landlord may, without
notice to Tenant, immediately enter the Demised Premises and later, renovate
and decorate the same, without liability to Tenant and without reducing or
otherwise affecting Tenant’s obligations hereunder.

 

21.05.                  Landlord
reserves the right, at any time and from time to time, to make such changes,
alterations, additions and improvements in or to the Building and the fixtures
and equipment thereof as Landlord shall deem necessary or desirable, provided
however, Landlord shall not cause a material adverse impact on the conduct of
Tenant’s business, nor shall Landlord do anything inconsistent with maintaining
the Building as a commercial building, including, without limitation,
telecommunications facilities, office, retail and other lawful uses.

 

ARTICLE 22

MECHANICS’ LIENS AND OTHER LIENS

 

22.01.                  Nothing
contained in this Lease shall be deemed, construed or interpreted to imply any
consent or agreement on the part of Landlord to subject Landlord’s interest or
estate to any liability under any mechanic’s or other lien law. If any
mechanic’s or other lien or any notice of intention to file a lien is filed
against the Land, or any part thereof, or the Demised Premises, or any part
thereof, for any work, labor, service or materials claimed to have been
performed or furnished for or on behalf of Tenant or anyone holding any part of
the Demised Premises through or under Tenant, Tenant shall cause the same to be
canceled and discharged of record by payment, bond or order of a Court of
competent jurisdiction within fifteen (15) days after notice by Landlord to
Tenant.

 

ARTICLE 23

NON-LIABILITY AND INDEMNIFICATION

 

23.01.                  None
of Landlord, Superior Mortgagee, Superior Lessor, their respective partners,
joint venturers, directors, officers, agents, servants or employees shall be
liable to Tenant for any loss, injury or damage to Tenant or to any other
Person, or to its or their property, irrespective of the cause of such injury,
damage or loss, unless caused by or resulting from the intentional or willful
misconduct of Landlord, its agents, servants or employees in the operation or
maintenance of the Land or Building to the extent caused by such intentional or
willful misconduct. Further, Landlord, Superior Mortgagee, Superior Lessor or
their respective partners, joint venturers, directors, officers, agents,
servants or employees shall not be liable to Tenant (a) for any such damage
caused by other tenants or Persons in, upon or about the Land or Building, or
caused by operations in construction of any private work, performed by someone
other than Landlord or its employees, agents or contractors, or by public or
quasi-public work; or (b) even

 

28

 

in the event of intentional or willful misconduct, for consequential
damages arising out of any loss of use of the Demised Premises or any equipment
or facilities therein by Tenant or any Person claiming through, against or
under Tenant.

 

23.02.                  Notwithstanding
any provision to the contrary, Tenant shall look solely to the estate and
property of Landlord in and to the Land and Building (or the proceeds received
by Landlord on a sale of such estate and property but not the proceeds of any
financing or refinancing thereof) in the event of any claim against Landlord
arising out of or in connection with this Lease, the relationship of Landlord
and Tenant or Tenant’s use of the Demised Premises or the Common Areas, and
Tenant agrees that the liability of the Landlord arising out of or in
connection with this Lease, the relationship of Landlord and Tenant or Tenant’s
use of the Demised Premises or the Common Areas shall be limited to such estate
and property of Landlord (or sale proceeds). No other properties or assets of
Landlord or any partner, joint venturer, director, officer, agent, servant or
employee of Landlord shall be subject to levy, execution or other enforcement
procedures for the satisfaction of any judgment (or other judicial process) or
for the satisfaction of any other remedy of Tenant arising out of, or in
connection with, this Lease, the relationship of Landlord and Tenant or
Tenant’s use of the Demised Premises or the Common Areas and if Tenant shall
acquire a lien on or interest in any other properties or assets by judgment or
otherwise, Tenant shall promptly release such lien on or interest in such other
properties and assets by executing, acknowledging and delivering to Landlord an
instrument to that effect prepared by Landlord’s attorneys. Tenant hereby
waives the right of specific performance and any other remedy allowed in equity
if specific performance or such other remedy could result in any liability of
Landlord for the payment of money to Tenant or to any third party.

 

ARTICLE 24

DAMAGE OR DESTRUCTION

 

24.01.                  If
the Building or the Demised Premises shall be partially or totally damaged or
destroyed by fire, earthquake or other casualty (and if this Lease shall not be
terminated as provided in this Article 24), Landlord shall repair the
damage and restore and rebuild the Building and/or the Demised Premises (except
for the Tenant’s Property, Tenant’s Initial Improvements or any alterations or
improvements to the Demised Premises requested or performed by Tenant) with
reasonable dispatch after notice to it of the damage or destruction and the
actual collection by Landlord of the insurance proceeds attributable to such
damage by Landlord, subject to the consent of the Superior Mortgagee under any
Superior Mortgage.

 

24.02.                  Subject
to the provisions of Section 24.05, if all or part of the Demised Premises
shall be damaged or destroyed or rendered completely or partially untenantable
on account of fire, earthquake or other casualty, the Rent shall be abated or
reduced, as the case may be, in the proportion that the untenantable area of
the Demised Premises bears to the total area of the Demised Premises, for the
period from the date of the damage or destruction to (a) the date the damage to
the Demised Premises shall be substantially repaired, or (b) if the Building
and not the Demised Premises is so damaged or destroyed, the date on which the
Demised Premises shall be made tenantable; provided however, should Tenant
reoccupy a portion of the Demised Premises during the period the repair or
restoration work is taking place and prior to the date that the Demised
Premises are substantially repaired or made tenantable, the Rent allocable to
such

 

29

 

reoccupied portion based upon the proportion which the area of the
reoccupied portion of the Demised Premises bears to the total area of the
Demised Premises, shall be payable by Tenant from the date of such occupancy.

 

24.03.                  If
(a) the Building or the Demised Premises shall be totally damaged or destroyed
by fire, earthquake or other casualty, or (b) the Building shall be so damaged
or destroyed by fire, earthquake or other casualty (whether or not the Demised
Premises are damaged or destroyed) that its repair or restoration requires the
expenditure, as estimated by a reputable contractor or architect designated by
Landlord, of more than twenty (20%) percent (or ten (10%) percent if such
casualty occurs during the last two (2) years of the Term) of the full
insurable value of the Building immediately prior to the casualty, or (c) the
Building shall be damaged or destroyed by fire, earthquake or other casualty
(whether or not the Demised Premises are damaged or destroyed), and (i) the
loss shall not be covered by Landlord’s insurance or (ii) Superior Mortgagee
does not consent to make the proceeds of any insurance available for
restoration subject to the terms of any Superior Mortgage, or (iii) the net
insurance proceeds (after deducting all expenses in connection with obtaining
such proceeds) shall, in the estimation of a reputable contractor or architect
designated by Landlord, be insufficient to pay for the repair or restoration
work, then, in any such case Landlord may terminate this Lease by giving Tenant
notice to such effect within ninety (90) days after the date of the fire,
earthquake or other casualty and the Lease shall terminate sixty (60) days
thereafter.

 

24.04.                  Tenant
shall not be entitled to terminate this Lease and no damages, compensation or
claim shall be payable by Landlord for inconvenience, loss of business or
annoyance arising from any repair or restoration of any portion of the Demised
Premises or of the Building pursuant to this Article 24. Landlord shall
use its best efforts to make such repair or restoration promptly and in such
manner as to not unreasonably interfere with Tenant’s use and occupancy of the
Demised Premises, but Landlord shall not be required to do such repair or
restoration work except during Business Hours on Business Days. Landlord shall
not be required to restore fixtures, improvements or other property of Tenant.
The word “restore” as used in this Article shall include repairs.

 

24.05.                  Notwithstanding
any of the foregoing provisions of this Article 24, if solely by reason of
some intentional act or omission on the part of Tenant or any of its subtenants
or its or their partners, directors, officers, servants, employees, agents or
contractors, either (a) Landlord, any Superior Lessor or any Superior Mortgagee
shall be unable to collect all of the insurance proceeds (including without
limitation, rent insurance proceeds) applicable to damage or destruction of the
Demised Premises or the Building by fire, earthquake or other casualty, or (b)
the Demised Premises or the Building shall be damaged or destroyed or rendered
completely or partially untenantable on account of fire, earthquake or other
casualty, then without prejudice to any other remedies which may be available
against Tenant, there shall be no abatement or reduction of Rent. Further,
nothing contained in this Article 24 shall relieve Tenant from any
liability that may exist as a result of any damage or destruction by fire,
earthquake or other casualty.

 

30

 

24.06.                  Landlord
will not carry insurance of any kind on the Tenant’s Property or Tenant’s
Initial Improvements, and, except as provided by law or by reason of Landlord’s
breach of any of its obligations hereunder, shall not be obligated to repair
any damage or to replace the Tenant’s Property or Tenant’s Initial
Improvements.

 

24.07.                  The
provisions of this Article 24 shall be deemed an express agreement
governing any case of damage or destruction of the Demised Premises and/or
Building by fire, earthquake or other casualty, and any law providing for such
contingency in the absence of an express agreement, now or hereafter in force,
shall have no application in such case.

 

ARTICLE 25

EMINENT DOMAIN

 

25.01.                  If
the whole of the Demised Premises shall be taken by any public or quasi-public
authority under the power of condemnation, eminent domain or expropriation, or
in the event of conveyance of the whole of the Demised Premises in lieu
thereof, this Lease shall terminate as of the day possession shall be taken by
such authority. If 25% or less of the square footage of the Demised Premises
shall be so taken or conveyed, this Lease shall terminate only in respect of
the part so taken or conveyed as of the day possession shall be taken by such
authority. If more than 25% of the square footage of the Demised Premises shall
be so taken or conveyed, this Lease shall terminate only in respect of the part
so taken or conveyed as of the day possession shall be taken by such authority,
but either party shall have the right to terminate this Lease upon notice given
to the other party within thirty (30) days after such taking of possession. If
more than 25% of the square footage of the Building shall be so taken or
conveyed, Landlord, may, by notice to Tenant, terminate this Lease as of the
day possession shall be taken. If this Lease shall continue in effect as to any
portion of the Demised Premises not so taken or conveyed, the Rent shall be
computed as of the day possession shall be taken on the basis of the remaining
square footage of the Demised Premises. Except as specifically provided herein,
in the event of any such taking or conveyance there shall be no reduction in
Rent. If this Lease shall continue in effect, Landlord shall, at its expense,
but shall be obligated only to the extent of the net award or other
compensation (after deducting all expenses in connection with obtaining the
award or other compensation), available to Landlord for the improvements taken
or conveyed (excluding any award or other compensation for land or for the
unexpired portion of the term of any Superior Lease), make all necessary
alterations so as to constitute the remaining Building a complete architectural
and tenantable unit, except for the Tenant’s Property, and Tenant shall make all
alterations or replacements to the Tenant’s Property and decorations in the
Demised Premises. All awards and compensation for any taking or conveyance,
whether for the whole or a part of the Land or Building, the Demised Premises
or otherwise, shall be the property of Landlord, and Tenant hereby assigns to
Landlord all of Tenant’s right, title and interest in and to any and all such
awards and compensation, including, without limitation, any award or
compensation for the value of the unexpired portion of the Term. Tenant shall
be entitled to claim, prove and receive in the condemnation proceeding such
award or compensation as may be separately awarded by the court for the
Tenant’s non-depreciated leasehold improvements and for loss of business,
goodwill, and depreciation or injury to and cost of removal of the Tenant’s
Property.

 

31

 

25.02.                  This
Lease shall be and remain unaffected by such taking and Tenant shall continue
to be responsible for all of its obligations hereunder insofar as such
obligations are not affected by such taking and shall continue to pay the Rent
in full when due.

 

ARTICLE 26

SURRENDER

 

26.01.                  On
the Expiration Date, or upon any earlier termination of this Lease, or upon any
re-entry by Landlord upon the Demised Premises, Tenant shall quit and surrender
the Demised Premises to Landlord “broom-clean” and in good order, condition and
repair, except for ordinary wear and tear and such damage or destruction as
Landlord is required to repair or restore under this Lease. Tenant shall also
remove all of Tenant’s Property therefrom at the expiration or termination of
the Lease, except as otherwise expressly provided in this Lease.

 

26.02.                  If
Tenant remains in possession of the Demised Premises after the expiration of
the Term, Tenant shall be deemed to be occupying the Demised Premises as a
tenant from month to month at the sufferance of Landlord subject to all of the
provisions of this Lease, except that the monthly Fixed Rent shall be 150% of
the then monthly Fixed Rent and Additional Rent in effect during the last month
of the Term or any Renewal Period.

 

26.03.                  No
act or thing done by Landlord or its agents shall be deemed an acceptance of or
a surrender of the Demised Premises, and no agreement to accept such surrender
shall be valid unless in writing and signed by Landlord.

 

ARTICLE 27

CONDITIONS OF LIMITATION

 

27.01.                  This
Lease is subject to the limitation that whenever Tenant or a guarantor, if any,
(a) shall make an assignment for the benefit of creditors, or (b) shall
commence a voluntary case or have entered against it an order for relief under
any chapter of the Federal Bankruptcy Code (Title 11 of the United States Code)
or any similar order or decree under any federal or state law, now in existence
or hereafter enacted having the same general purpose, and such order or decree
shall have not been stayed or vacated within 30 days after entry, or (c) shall
cause, suffer, permit or consent to the appointment of a receiver, trustee,
administrator, conservator, sequestrator, liquidator or similar official in any
federal, state or foreign judicial or nonjudicial proceeding, to hold,
administer and/or liquidate all or substantially all of its assets, and such
appointment shall not have been revoked, terminated, stayed or vacated and such
official discharged of his duties within 30 days of his appointment, then
Landlord, at any time after the occurrence of any such event, may give Tenant a
notice of intention to end the Term at the expiration of five (5) days from the
date of service of such notice of intention, and upon the expiration of said
five (5) day period, whether or not the Term shall theretofore have commenced,
this Lease shall terminate with the same effect as if that day were the
Expiration Date of this Lease, but Tenant shall remain liable for damages as
provided in Article 29.

 

32

 

27.02.                  This
Lease is subject to the further limitations that: (a) if Tenant shall default
in the payment of any Rent, and such default shall continue for ten (10) days
after the due date, or (b) if Tenant shall, whether by action or inaction, be
in default of any of its obligations under this Lease (other than a default in
the payment of Rent) and such default shall continue and not be remedied within
thirty (30) days after Landlord shall have given to Tenant a notice specifying
the same, or, in the case of default which cannot with due diligence be cured
within a period of thirty (30) days and the continuance of which for the period
required for cure will not subject Landlord, Superior Mortgagor or Superior
Lessor to prosecution for a crime (as more particularly described in the last
sentence of Section 12.02.) or termination of any Superior Lease or
foreclosure of any Superior Mortgage, if Tenant shall not, (i) within said ten
(10) day period advise Landlord of Tenant’s intention to take all steps
necessary to remedy such default, (ii) duly commence within said ten (10) day
period and thereafter diligently prosecute to completion all steps necessary to
remedy the default, and (iii) to complete such remedy within a reasonable time
after the date of said notice by Landlord, or (c) if any event shall occur or
any contingency shall arise whereby this Lease would, by operation of law or
otherwise, devolve upon or pass to any person, firm or corporation other than
Tenant, except as expressly permitted by Article 11, or (d) if Tenant
shall abandon the Demised Premises, then in any of said cases Landlord may give
to Tenant a notice of intention to end the Term at the expiration of five (5)
days from the date of the service of such notice of intention, and upon the
expiration of said five (5) days, whether or not the Term shall theretofore
have commenced, this Lease shall terminate with the same effect as if that day
were the Expiration Date of this Lease, but Tenant shall remain liable for
damages as provided in Article 29. The indemnity provisions contained
herein shall survive the expiration or earlier termination of this Lease.

 

ARTICLE 28

RE-ENTRY BY LANDLORD

 

28.01.                  If
Tenant shall default in the payment of any Rent, and such default shall
continue for ten (10) days after notice thereof, or if this Lease shall
terminate as provided in Article 27, Landlord or Landlord’s agent and
employees may immediately or at any time thereafter re-enter the Demised
Premises, or any part thereof, either by summary dispossess proceedings or by
any suitable action or proceeding at law, or otherwise, without terminating the
Lease and without being liable to indictment, prosecution or damages therefor,
and may repossess the same, and may remove any Person therefrom, to the end
that Landlord may have, hold and enjoy the Demised Premises. The word
“re-enter” as used herein, is not restricted to its technical legal meaning. If
this Lease is terminated under the provisions of Article 27, or if
Landlord shall re-enter the Demised Premises under the provisions of this
Article 28, or in the event of the termination of this Lease, or of re-entry,
by or under any summary dispossess or other proceedings or action or any
provision of law by reason of default hereunder on the part of Tenant, Tenant
shall thereupon pay to Landlord the Rent payable up to the time of such
termination of this Lease, or of such recovery of possession of the Demised
Premises by Landlord, as the case may be, and shall also pay to Landlord
damages as provided in Article 29.

 

28.02.                  In
the event of a breach or threatened breach by a party of any of its obligations
under this Lease, the other party shall also have the right of injunction.

 

33

 

28.03.                  If
this Lease shall terminate under the provisions of Article 27, or if
Landlord shall re-enter the Demised Premises under the provisions of this
Article 28, or in the event of the termination of this Lease, or re-entry,
by or under any summary dispossess or other proceeding or action or any
provision of law by reason of default hereunder on the part of Tenant, Landlord
shall be entitled to retain all monies, if any, paid by Tenant to Landlord
whether as Advance Rent, Security Deposit (and interest thereon, if any) or
otherwise, but such monies shall be credited by Landlord against any Rent due
from Tenant at the time of such termination or re-entry or, at Landlord’s
option, against any damages payable by Tenant under Article 29 or pursuant
to law.

 

ARTICLE 29

DAMAGES

 

29.01.                  If
this Lease is terminated under the provisions of Article 27, or if
Landlord shall re-enter the Demised Premises under the provisions of
Article 28, or in the event of the termination of this Lease, or of
re-entry, by or under any action to obtain possession in a summary manner or
other proceeding or action or any provision of law by reason of default
hereunder on the part of Tenant, Tenant shall pay as Additional Rent to
Landlord as a condition precedent to the dismissal of any action to obtain
possession of the Demised Premises or other proceeding or action for damages,
at the election of Landlord, either:

 

(a)                                  A
sum which at the time of such termination of this Lease or at the time of any
such re-entry by Landlord, as the case may be, represents the then present
value, calculated utilizing the prime interest rate declared by Chase Bank,
N.A. in New York as of the date of default, of the aggregate amount of the Rent
which would have been payable by Tenant (conclusively presuming the average
monthly Additional Rent to be the same as were the average monthly Additional
Rent payable for the year, or if less than 365 days have then elapsed since the
Commencement Date, the partial year, immediately preceding such termination or
re-entry) for the period commencing with such earlier termination of this Lease
or the date of any such re-entry, as the case may be, and ending with the Expiration
Date plus legal and expert fees and costs for the bringing of any action to
enforce this provision. In exercising this remedy, Landlord shall be entitled
to accelerate all unpaid Rent and other amounts due hereunder until the
Expiration Date; or

 

(b)                                 Sums
equal to the Fixed Rent and the Additional Rent which would have been payable
by Tenant had this Lease not so terminated, or had Landlord not so re-entered
the Demised Premises, payable upon the due dates therefor specified herein
following such termination or such re-entry and until the Expiration Date,
provided, however, that if Landlord shall relet the Demised Premises during
said period, Landlord shall credit Tenant with the net rents received by
Landlord from such reletting, such net rents to be determined by first
deducting from the gross rents as and when received by Landlord from such
reletting the expenses incurred or paid by Landlord in terminating this Lease
or in reentering the Demised Premises and in securing possession thereof, as well
as the expense of reletting, including, without limitation, altering and
preparing the Demised Premises for new tenants, brokers’ commissions, legal
fees, and all other expenses properly

 

34

 

chargeable against the Demised Premises and the rental therefrom, it
being understood that any such reletting may be for a period shorter or longer
than the period ending on the Expiration Date; but in no event shall Tenant be
entitled to receive any excess of such net rents over the sums payable by
Tenant to Landlord hereunder, nor shall Tenant be entitled in any suit for the
collection of damages pursuant to this subdivision (b) to a credit in respect
of any rents from reletting, except to the extent that such net rents are
actually received by Landlord. If the Demised Premises or any part thereof
should be relet in combination with other space, then proper apportionment on a
square foot basis shall be made of the rent received from such reletting and of
the expenses of reletting.

 

If the Demised Premises or any part thereof be relet by Landlord before
presentation of proof of such damages to any Court, commission or tribunal, the
amount of rent reserved upon such reletting shall, prima facia, be the fair and
reasonable rental value for the Demised Premises, or part thereof, to relet
during the term of the reletting. Landlord shall have no obligation to mitigate
damages by reletting the Demised Premises and shall not be liable in any way
whatsoever for its failure or refusal to relet the Demised Premises or any part
thereof, or if the Demised Premises or any part thereof are relet, for its
failure to collect the rent under such reletting, and no such failure or
refusal to relet or failure to collect the rent shall release or affect
Tenant’s liability for damages or otherwise under this Lease. Landlord shall be
under no obligation in reletting the Demised Premises to give priority to the
leasing thereof over other vacant space in the Building.

 

29.02.                  Suit
or suits for the recovery of any such damages, or any installments thereof, may
be brought by Landlord at any time and from time to time at its election, and
nothing contained herein shall be deemed to require Landlord to postpone suit
until the date when the Term would have expired if it had not been so
terminated under the provisions of Article 27 or under any provision of
law, or had Landlord not re-entered the Demised Premises. Nothing herein
contained shall be construed to limit or preclude recovery by Landlord against
Tenant of any sums or damages to which, in addition to the damages particularly
provided above, Landlord may lawfully be entitled by reason of any default
hereunder on the part of Tenant. Nothing herein contained shall be construed to
limit or prejudice the right of Landlord to prove and/or obtain as damages by
reason of the termination of this Lease or re-entry on the Demised Premises for
the default of Tenant under this Lease an amount equal to the maximum amount
permitted by any statute or rule of law in effect at the time when the
governing proceedings have been initiated, whether or not such amount is
greater than, equal to, or less than any of the sums referred to in
Section 29.01.

 

29.03.                  In
addition, if this Lease is terminated under the provisions of Article 27,
or if Landlord shall re-enter the Demised Premises under the provisions of
Article 28, Tenant covenants that: (a) the Demised Premises then shall be
in the same condition as that in which Tenant has agreed to surrender the same
to Landlord at the Expiration Date; (b) Tenant shall have performed prior to
any such termination any obligation of Tenant contained in this Lease for the
making of any alteration or for restoring or rebuilding the Demised Premises or
the Building, or any part thereof; and (c) for the breach of any covenant of
Tenant set forth above in this Section 29.03, Landlord shall be entitled
immediately without notice or other action by

 

35

 

Landlord, to recover, and Tenant shall pay as and for liquidated
damages therefor, the cost of performing such covenant (as estimated by an
independent contractor selected by Landlord).

 

29.04.                  In
addition to any other remedies Landlord may have under this Lease, and without
reducing or adversely affecting any of Landlord’s rights and remedies under
this Article 29, if any Rent or damages payable hereunder by Tenant to
Landlord are not paid within five (5) days after notice therefor, the same
shall bear interest at the Late Payment Rate pursuant to Section 3.05 from
the due date thereof until paid, and the amount(s) of such interest shall be
Additional Charges hereunder.

 

29.05.                  In
addition to any remedies which Landlord may have under this Lease, if there
shall be a default hereunder by Tenant which shall not have been remedied
within the applicable grace period, Landlord shall not be obligated to furnish
to Tenant or the Demised Premises any HVAC services, or any building services;
and the discontinuance of any one or more of such services shall be without
liability by Landlord to Tenant and shall not reduce, diminish or otherwise
affect any of Tenant’s covenants and obligations under this Lease.

 

ARTICLE 30

AFFIRMATIVE WAIVERS

 

30.01.                  Tenant,
on behalf of itself and any and all persons claiming through or under Tenant,
does hereby waive and surrender all right and privilege which it, they or them
might have under or by reason of any present or future law, to redeem the
Demised Premises or to have a continuance of this Lease after being dispossessed
or ejected from the Demised Premises by process of Law or under the terms of
this Lease or after the termination of this Lease as provided in this Lease.

 

30.02.                  Landlord
and Tenant hereby waive trial by jury in any action, proceeding or counterclaim
brought by either against the other on any matter whatsoever arising out of or
in any way connected with this Lease, the relationship of Landlord and Tenant,
and Tenant’s use or occupancy of the Demised Premises and use of the Common
Area, including without limitation, any claim of injury or damage, and any
emergency and other statutory remedy with respect thereto. Tenant shall not
interpose any counterclaim of any kind in any action or proceeding commenced by
Landlord to recover possession of the Demised Premises.

 

ARTICLE 31

NO WAIVERS

 

31.01.                  The
failure of the Landlord to insist in any one or more instances upon the strict
performance of any one or more of the obligations of this Lease, or to exercise
any election herein contained, shall not be construed as a waiver or
relinquishment for the future of the performance of such one or more
obligations of this Lease or of the right to exercise such election, but the
same shall continue and remain in full force and effect with respect to any
subsequent breach, act or omission. The receipt by Landlord of Fixed Rent or
Additional Rent with knowledge of breach by Tenant of any obligation of this
Lease shall not be deemed a waiver of such breach.

 

36

 

ARTICLE 32

CURING TENANT’S DEFAULTS

 

32.01.                  If
Tenant shall default in the performance of any of Tenant’s obligations under
this Lease, Landlord, without thereby waiving such default, may (but shall not
be obligated to) perform the same for the account and at the expense of Tenant,
without notice in a case of emergency, and in any other case only if such
default continues after the expiration of ten (10) days from the date Landlord
gives Tenant notice of the default. Bills for any expenses incurred by Landlord
in connection with any such performance by it for the account of Tenant, and
bills for all coats, expenses and disbursements of every kind and nature
whatsoever, including reasonable attorney’s fees and expenses, involved in
collecting or endeavoring to enforce any rights against Tenant or Tenant’s
obligations hereunder, under or in connection with this Lease or pursuant to
law, including any such cost, expense and disbursement involved in instituting
and prosecuting legal proceedings or in recovering possession of the Demised
Premises after default by Tenant or upon the expiration of the Term or sooner
termination of this Lease, including attorneys fees and costs for any
bankruptcy proceedings, and interest on all sums advanced by Landlord under
this Article at the interest rate provided in Section 3.05 may be
sent by Landlord to Tenant monthly, or immediately at Landlord’s option and
such amounts shall be due and payable in accordance with the terms of such
bills.

 

ARTICLE 33

BROKER

 

33.01.                  Parties
represent that no broker except the Broker was instrumental in bringing about
or consummating this Lease and that the parties have had no conversations or
negotiations with any broker except the Broker concerning the leasing of the
Demised Premises. Parties agree to indemnify and hold harmless each other
against and from any claims for any brokerage commissions and all costs,
expenses and liabilities in connection therewith, including, without
limitation, attorneys’ fees and expenses, arising out of any conversations or
negotiations had by each with any broker other than the Broker. Landlord and
Tenant shall pay any brokerage commissions due the Broker for the leasing of
the Demised Premises as defined in Section 1.01(J) pursuant to a separate
agreement between Landlord, Tenant and the Broker.

 

ARTICLE 34

NOTICES

 

34.01.                  Any notice, statement, demand,
consent, approval or other communication required or permitted to be given,
rendered or made by either party to the other, pursuant to this Lease or
pursuant to any applicable Legal Requirement, shall be in writing and shall be
deemed to have been properly given, rendered or made only if hand delivered, or
delivered by any nationally recognized over-night delivery service, or sent by
United States registered or certified mail, return receipt requested, addressed
to the other party at the following addresses:

 

37

 

	
  As to
  Tenant:

  	
   

  	
  Advanced
  Telecommunications, Inc.

  
	
   

  	
   

  	
  730 Second
  Avenue South

  
	
   

  	
   

  	
  Suite 1200

  
	
   

  	
   

  	
  Minneapolis,
  Minnesota 55402

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
   

  	
  David L.
  Mitchell, Esq.

  
	
   

  	
   

  	
  Robins,
  Kaplan, Miller & Ciresi, L.L.P.

  
	
   

  	
   

  	
  2800 LaSalle
  Plaza

  
	
   

  	
   

  	
  800 LaSalle
  Avenue

  
	
   

  	
   

  	
  Minneapolis,
  Minnesota 55402-2015

  
	
   

  	
   

  	
   

  
	
  As to
  Landlord:

  	
   

  	
  Seattle
  Telecom LLC

  
	
   

  	
   

  	
  750
  Lexington Avenue, 28th Floor

  
	
   

  	
   

  	
  New York, NY
  10022

  
	
   

  	
   

  	
  Attn: Oskar
  Brecher, Manager

  
	
   

  	
   

  	
   

  
	
  With a copy
  to:

  	
   

  	
  Eugene T.
  Paolino, Esq.

  
	
   

  	
   

  	
  Schumann,
  Hanlon, Doherty,

  McCrossin & Paolino

  
	
   

  	
   

  	
  30
  Montgomery Street - 15th Floor

  
	
   

  	
   

  	
  Jersey City,
  New Jersey 07302

  

 

Any such notices shall be deemed to have been given, rendered or made
on the date received if delivered by hand or the second day after the day so
mailed unless mailed outside the State of Washington, in which case it shall be
deemed to have been given, rendered or made on the third Business Day after the
day so mailed. Either party may, by notice as aforesaid, designate a different
address or addresses for notices, statements, demands, consents, approvals or
other communications intended for it.

 

ARTICLE 35

ESTOPPEL CERTIFICATES

 

35.01.                  Each
party shall, at any time and from time to time, as requested by the other
party, upon not less than thirty (30) days’ prior notice, execute and deliver
to the requesting party a statement certifying that this Lease is not modified
and in full force and effect (or if there have been modifications, that the
same is in full force and effect as modified and stating the modifications),
certifying the dates to which the Fixed Rent and Additional Charges have been
paid, stating whether or not, to the best knowledge of the party giving the
statement, the requesting party is in default in performance of any of its
obligations under this Lease, and, if so, specifying each such default of which
the party giving the statement shall have knowledge and stating whether or not,
to the best knowledge of the party giving the statement, any event has occurred
which with the giving of notice or passage of time, or both, would constitute
such a default of the requesting party, and, if so, specifying each such event;
and such statement delivered pursuant hereto shall be deemed a representation
and warranty to be relied upon by the party requesting the certificate and by
others with whom such party may be dealing, regardless of independent
investigation. Tenant also shall include in any such statement such other
information concerning this Lease as Landlord may reasonably request.

 

38

 

ARTICLE 36

ARBITRATION

 

36.01.                  Landlord may at any time request
arbitration, and Tenant may at any time when not in default in the payment of
any Rent request arbitration, of any matter in dispute but only where
arbitration is expressly provided for in this Lease. Such dispute shall be
submitted to the arbitration of three (3) disinterested persons, one of whom shall
be chosen by each of the parties hereto, and the third by the two arbitrators
so chosen; and the award and finding of said arbitrators, or of any two of
them, shall be final and conclusive on any questions or matters so submitted to
them. In case an arbitration is not otherwise arranged, either party desiring
such submission to arbitration shall notify the other party in writing of the
matter which it desires to submit to arbitration, designating its arbitrator in
such notice. Within twenty (20) days thereafter, the party thus notified shall
name its arbitrator, and notify the other party of such selection. The
arbitrators thus selected shall immediately proceed to select the third
arbitrator as aforesaid, and with him to consider and determine all matters
submitted. In case the party notified of the desired submission to arbitration
shall fail, upon due notification, to name an arbitrator, the arbitrator
selected by the other party shall have the right to proceed alone and determine
the matters thus submitted, and his award shall be final and conclusive upon
the parties hereto. In the event that the two arbitrators first selected shall
be unable to agree upon the third arbitrator within twenty (20) days after the
selection of the second arbitrator, either party hereto, upon giving ten (10)
days’ notice in writing to the other party, or to the arbitrator selected by
such other party, may apply to the Courts of the State of Washington for the
appointment of a third arbitrator, and any arbitrator appointed by such Court
upon such application shall have the same powers and duties as if appointed by
the two arbitrators first selected as hereinbefore provided. The award in such
arbitration may be enforced on application of either party by the order or
judgment of a Court of competent jurisdiction.

 

36.02.                  If
any delay in complying with any requirement of this Lease by Landlord might
subject Tenant to any fine or penalty, or to prosecution for a crime, or
materially interfere with Tenant’s use and enjoyment of the Demised Premises or
its access thereto, of if it would constitute a default by Tenant under any
permitted mortgage, or of any of the foregoing, Tenant shall have the right to
remedy such default and in such event the sole question to be determined by the
arbitrators shall be whether Landlord is liable for Tenant’s costs and expenses
of curing such default.

 

36.03.                  Each
party to the arbitration shall pay the costs or fees of the arbitrator selected
by it and all further costs and fees, including Court costs in connection with
the arbitration, shall be shared equally by the two parties to the arbitration.
Each party shall bear the cost of its own attorneys and experts and the
additional expenses of presenting its own proofs. Any arbitration under this
Article shall be governed and controlled, except as otherwise provided
herein, by the rules of the American Arbitration Association in the City of
Seattle, Washington.

 

ARTICLE 37

RENEWAL OPTION

 

37.01.                  Tenant
shall have the option to renew this Lease for two (2) additional periods (“the
First Renewal Period” and “the Second Renewal Period”) for a further period of
five (5) years for each such Renewal Period provided Tenant is not in default
under any terms of

 

39

 

this Lease. Tenant shall give written notice to the Landlord (“Renewal
Notice”) at least 270 days prior to the Expiration Date with respect to the
First Renewal Period or twelve 270 days prior to the expiration of the First
Renewal Period with respect to the Second Renewal Period. Except for this
Article 37 and, further except for the amount of Fixed Rent as set forth
in Article 1, all other terms and conditions of this Lease shall continue
during the First Renewal Period and the Second Renewal Period. The Fixed Rent
shall be the fair market rental for comparable space within the Building. In
the event that the parties are unable to agree as to the fair market rent
within sixty (60) days after the date of the Renewal Notice, then the Fixed
Rent shall be determined by an independent appraiser selected by Landlord in
its sole reasonable discretion which appraiser shall have at least fifteen (15)
years experience in the real estate industry of Seattle, Washington and shall
be familiar with the real estate requirements of the telecommunications
industry. The determination of such appraiser shall be binding on the parties;
however, in no event shall Fixed Rent for any Renewal Period be less than the
Fixed Rent for the Initial Term of the Lease or the immediately prior Renewal
Period, as the case may be.

 

ARTICLE 38

BUILDING NAME

 

38.01.                  The
Building may be designated and known by any name or address Landlord may choose
from time to time in Landlord’s sole discretion. Tenant agrees not to refer to
the Building by any name or address other than as designated by Landlord. The
Building may be named after any person, firm, or otherwise, whether or not such
name is, or resembles, the name of a tenant of the Building. In no event shall
Tenant use, in connection with its business or otherwise, any photographic or
other type of representation of the Building. In the event the Building is
named after any person, firm or otherwise, Tenant, in connection with its
business or otherwise, shall not refer to the Building by such name but shall
only use the street address of the Building.

 

38.02.                  Subject
to Landlord’s sole reasonable approval, Tenant shall have the right to place a
sign on or around the Building provided same does not denigrate the character
of the Building and is aesthetically suitable. Any sign placed on the Building
by Tenant shall not be equal to or larger than any sign on the Building placed
by U.S. West. Tenant shall be responsible for and shall pay all costs and
expenses for the installation and, upon termination of the Lease or when
exterior maintenance is to be performed on the Building, for removal of any
such sign (including, without limitation, restoring the points of affixation).

 

ARTICLE 39

ENVIRONMENTAL LAWS

 

39.01.                  Tenant
acknowledges the existence of federal, state and local environmental laws,
rules and regulations including, without limitation, the Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA) 42 U.S.C.
9601-9657, the Resource Conservation and Recovery Act (RCRA) 42 U.S.C.
6901-6987, laws, rules and regulations of the State of Washington, governing
environmental matters, all of which, together with any successor legislation,
are collectively referred to hereinafter as the “Environmental Laws”. Tenant
agrees, from and after the date hereof, to act in compliance with the

 

40

 

Environmental Laws and that it shall not perform any acts in violation
of the Environmental Laws.

 

39.02.                  Upon
the occurrence of any event requiring Tenant’s compliance with Environmental
Laws or if Landlord by reason of any act or omission or failure to act or not
act on the part of Tenant, shall be required to comply with Environmental Laws,
Tenant shall make all necessary filings with the appropriate governmental
agency and any other relevant federal, state, county or municipal legal
authority and, at its on expense, shall cause all necessary tests and studies
to be performed. Landlord shall complete such documents and otherwise cooperate
(provided such cooperation does not subject Landlord to any fee, cost, expense
or liability or require performance by Landlord of Tenant’s obligation
hereunder) as may be reasonably requested by Tenant or required by the
Environmental Laws. In the event an environmental clean-up is required, the
Landlord shall have an unrestricted right to inspect, as often as it deems
necessary in its sole discretion, during and after such clean-up.

 

39.03.                  Tenant
hereby agrees to execute such documents and provide such information as Landlord
reasonably requires to assure compliance with the Environmental Laws, and rules
or regulations of any other relevant federal, state, county or municipal legal
authority. Tenant shall bear all costs and expenses incurred by Landlord
associated with any such compliance resulting from Tenant’s use of the Demised
Premises or any acts and/or omissions which Tenant, its agents, employees,
invitees or independent contractors initiate, including, without limitation,
state agency fees, engineering fees, clean-up costs, filing fees and suretyship
expenses. Tenant agrees to indemnify, defend and hold Landlord harmless from
and against any fines, suits, proceedings, claims and actions and any other
cost, expense or liability of any kind arising under the Environmental Laws,
rules or regulations resulting from Tenant’s failure to comply with this
Article 39 or Tenant’s failure to provide all information, make all
submissions and take all actions required by any legal authority, including
reasonable attorney’s fees.

 

39.04.                  Tenant
shall immediately provide Landlord with copies of all correspondence, reports,
notices, orders, findings, declarations and other materials pertinent to
Tenant’s compliance hereunder or any other environmental enforcement
requirements under any Environmental Laws as they are issued or received by
Tenant. More specifically, but not limiting the foregoing, Tenant shall
promptly provide Landlord with any notices, correspondence and submissions made
by Tenant to the United States Environmental Protection Agency, the United
States Occupational Safety and Health Administration, or any other legal
authority which requires submission of any information concerning environmental
matters of hazardous wastes or substances, and any notices, correspondence, documents
and directives received by Tenant from any of said authorities.

 

39.05.                  In
addition to any other remedies of Landlord pursuant to this Lease, Tenant’s
failure to abide by the terms of this Article 39 shall survive the
Expiration Date or earlier termination of the Term of this Lease. Tenant’s
failure to abide by the terms of this Article shall be restrainable by
injunction.

 

39.06.                  Tenant
shall indemnify, defend and hold Landlord, Superior Lessors and Superior
Mortgagees harmless from and against all claims, liabilities, losses, damages
and costs, foreseen or unforeseen, including without limitation, reasonable
attorney’s fees, engineering and

 

41

 

other professional and expert fees and costs, which Landlord or such
other indemnified parties may incur by reason of Tenant’s action or non-action
with regard to Tenant’s obligations under this Article.

 

39.07.                  The
parties agree that the Americans with Disabilities Act, Hazardous Materials,
tax and Y2K disclosure forms shall be completed by both parties to this
transaction.

 

ARTICLE 40

MISCELLANEOUS

 

40.01.                  Tenant
understands and acknowledges that this Lease is a triple net or absolute net
Lease. Tenant further expressly acknowledges and agrees that Landlord has not
made and is not making, and Tenant, in executing and delivering this Lease, is
not relying upon, any warranties, representations, promises or statements,
except to the extent that the same are expressly set forth in this Lease or in
any other written agreement(s) which may be made between the parties
concurrently with the execution and delivery of this Lease. All understandings
and agreements heretofore had between the parties are merged in this Lease and
any other written agreement(s) made concurrently herewith, which alone fully
and completely express the agreement of the parties and which are entered into
after full investigation. Neither party has relied upon any statement or
representation not embodied in this Lease or in any other written agreement(s)
made concurrently herewith. The provisions of this Lease set forth the
enumerated rights of Tenant. Any rights not specifically provided for herein
shall not be deemed or inferred to be given to Tenant. Any actions taken by
Tenant not specifically permitted herein shall be prohibited.

 

40.02.                  No
agreement shall be effective to change, modify, waive, release, discharge,
terminate or effect an abandonment of this Lease in whole or in part, unless
such agreement is in writing, refers expressly to this Lease and is signed by
the party against whom enforcement of the change, modification, waiver,
release, discharge, termination or effectuation of abandonment is sought.

 

40.03.                  Subject
to the Rules and Regulations, Tenant shall be provided vehicular access for
trucks delivering or removing equipment to and from the Building for the
Demised Premises and provided further that any such vehicular access does not
materially impair access to the Building by other tenants. Landlord may at any
time alter or suspend vehicular access to the Building.

 

40.04.                  If
Tenant shall at any time request Landlord to sublet or let the Demised Premises
for Tenant’s account, Landlord or its agent is authorized to receive keys for
such purposes without releasing Tenant from any of its obligations under this
Lease, and Tenant hereby releases Landlord from any liability for loss or
damage to any of the Tenant’s Property in connection with such subletting or
letting.

 

40.05.                  Except
as otherwise expressly provided in this Lease, the obligations under this Lease
shall bind and benefit the successors and assigns of the parties hereto with
the same effect as if mentioned in each instance where a party is named or
referred to; provided, however, that (a) no violation of the provisions of Article 11
shall operate to vest any rights in

 

42

 

any successor or assignee of Tenant and (b) the provisions of this
Section 40.04 shall not be construed as modifying the conditions of
limitation contained in Article 27.

 

40.06.                  Except
for Tenant’s obligations to pay Rent, the time for Landlord or Tenant, as the
case may be, to perform any of its respective obligations hereunder shall be
extended if and to the extent that the performance thereof shall be prevented
due to any Unavoidable Delays. Except as expressly provided to the contrary,
the obligations of Tenant hereunder shall not be affected, impaired or excused,
nor shall Landlord have any liability whatsoever to Tenant, (a) because
Landlord is unable to fulfill, or is delayed in fulfilling, any of its
obligations under this Lease due to any of the matters set forth in the first
sentence of this Section 40.05, or (b) because of any failure or defect in
the supply, quality or character of electricity, water or any other utility or
service furnished to the Demised Premises for any reason beyond the Landlord’s
reasonable control.

 

40.07.                  Any
liability for payments hereunder (including, without limitation, Additional
Rent) shall survive the expiration or earlier termination of this Lease.

 

40.08.                  Tenant
shall not exercise its rights under Article 15 or any other provision of
this Lease in a manner which would violate Landlord’s union contracts or create
any work stoppage, picketing, labor disruption or dispute or any interference
with the business of Landlord or any tenant or occupant of the Building..

 

40.09.                  Tenant
shall give prompt notice to Landlord of (a) any occurrence in or about the
Demised Premises for which Landlord might be liable, (b) any fire, earthquake
or other casualty in the Demised Premises, (c) any damage to or defect in the
Demised Premises, including the fixtures and equipment thereof, for the repair
of which Landlord might be responsible, and (d) any damage to or defect in any
part of the Building’s sanitary, electrical, heating, ventilating,
air-conditioning, elevator or other systems located in, on or passing through
the Demised Premises or any part thereof.

 

40.10.                  This
Lease shall be governed by and construed in accordance with the laws of the
State of Washington. If any provision of this Lease shall be invalid or
unenforceable, the remainder of this Lease shall not be affected and shall be
enforced to the extent permitted by law. The table of contents, captions,
headings and titles in this Lease are solely for convenience of reference and
shall not affect its interpretation. Each covenant, agreement, obligation or
other provision of this Lease on Tenant’s part to be performed, shall be deemed
and construed as a separate and independent covenant of Tenant, not dependent
on any other provision of this Lease. All terms and words used in this Lease,
regardless of the number or gender in which they are used, shall be deemed to
include any other number and any other gender as the context may require.

 

40.11.                  If
deemed necessary by Landlord, no person will be allowed access to the Building
without a security pass which shall be issued by Landlord upon written request
of Tenant. Tenant shall be fully liable for the acts of all persons for whom a
security pass is requested. All security passes shall be returned to Landlord
in the event the persons to whom they were issued are no longer employed by
Tenant or are otherwise not entitled to access to the

 

43

 

Building. In no event shall Landlord be liable for its refusal to allow
access to the Building to any person who does not have a security pass.

 

40.12.                  With
respect to any provisions of this Lease which provide, in effect, the Landlord
shall not unreasonably withhold or unreasonably delay any consent or approval,
Tenant in no event shall be entitled to make, nor shall Tenant make, any claim
and Tenant hereby waives any claim, for money damages; nor shall Tenant claim
any money damages by way of set-off, counterclaim or defense, based upon any
claim or assertion by Tenant that Landlord has unreasonably withheld or
unreasonably delayed any consent or approval; but Tenant’s sole remedy shall be
an action or proceeding to enforce any such provision, or for specific
performance, injunction or declaratory judgment.

 

40.13.                  To
the extent that Landlord, its agents, employees or licensees have access to the
Demised Premises pursuant to the provisions of this Lease or otherwise,
Landlord agrees to indemnify, defend and save harmless Tenant from and against
all bodily harm and personal injury, loss, claim and damage to or of any person
or property of whatever nature arising from any act, omission, fault,
misconduct or negligence of Landlord, or Landlord’s contractors, licensees,
agents, servants or employees, unless caused by the Tenant’s negligence or
willful misconduct. This indemnity and hold harmless clause shall include
indemnity against all costs, expense and liabilities paid or incurred in or in
connection with any such claim or proceeding brought thereon and the defense
thereof, and shall include reasonable attorney’s fees.

 

40.14.                  (a)
If Tenant is a corporation, each person executing this Lease on behalf of
Tenant hereby covenants, represents and warrants that Tenant is a duly
incorporated or duly qualified, if a foreign corporation, corporation and is
authorized to do business in the State of Washington (a copy of evidence
thereof shall be supplied by Tenant to Landlord upon request); and that each
person executing this Lease on behalf of Tenant is an officer of Tenant and is
duly authorized to execute, acknowledge and deliver this Lease to Landlord (a
copy of resolution to such effect shall be supplied by Tenant to Landlord upon
request).

 

(b) If Tenant is a partnership (or is comprised of two (2) or more
persons, individually, or as joint venturers or as copartners of a
partnership), or if Tenant’s interest in this Lease shall be assigned to a
partnership (or to two (2) or more persons, individually, or as joint venturers
or as co-partners of a partnership) (any such partnership and such persons are
referred to in this Article as the “Partnership Tenant”), the following
shall apply: (i) the liability of each of the parties comprising the
Partnership Tenant shall be joint and several (ii) each of the parties
comprising the Partnership Tenant hereby consents in advance to, and agrees to
be bound by, any modifications, termination, discharge or surrender of this
Lease which may hereafter be made, and by any notices which may hereafter be
given, by the Partnership Tenant or by any of the parties comprising the
Partnership Tenant, (iii) any notices given or rendered to the Partnership
Tenant or to any of the parties comprising the Partnership Tenant shall be
deemed given or rendered to the Partnership Tenant and to all such parties and
shall be binding upon the Partnership Tenant and all parties, (iv) if the
Partnership Tenant shall admit new partners, all such new partners shall, by
their admission to the Partnership Tenant, be deemed to have assumed
performance of all of the terms of this Lease on Tenant’s part to be performed
and (v) the Partnership Tenant shall give prompt notice to Landlord of the
admission of any such new partners, and upon demand of Landlord, shall cause
each such new partner to execute and deliver

 

44

 

to Landlord and agreement in farm satisfactory to Landlord, wherein
each such new partner shall assume performance of all of the terms of this
Lease on Tenant’s part to be performed (but neither Landlord’s failure to
request any such agreement nor the failure of any such new partner to execute
or deliver any such agreement to Landlord shall vitiate the provisions of this
Section).

 

40.15.                  All
Exhibits to this Lease are hereby incorporated into this Lease, and references
to “this Lease” shall include all Exhibits.

 

40.16.                  Tenant
shall not place a load upon any floor that exceeds the floor load per square
foot that such floor was designed to carry or which is allowed by any laws.

 

40.17.                  Tenant
acknowledges that there may be noise, dust, vibrations and other effects from
construction work occurring near or about the Building and that Tenant shall
have no claims against Landlord for any disruption caused by same or
interruption or interference with Tenant’s business resulting from same and
that Landlord shall have no liability otherwise to Tenant therefor.

 

40.18.                  In
the event Tenant is in arrears in the payment of Rent, Tenant waives Tenant’s
right, if any, to designate the items against which any payments made by or
refunds payable to Tenant are to be credited and Landlord may apply any
payments made by Tenant to any items Landlord sees fit, irrespective of and
notwithstanding any designation or requests by Tenant as to the items against
which any such payments shall be credited.

 

40.19.                  In
the event Landlord incurs legal, investigative and/or other professional fees
and expenses in connection with any and all attorneys, expert, or investigative
fees and costs incurred by the Landlord in order to enforce any provision of
this Lease or in connection with any request to Landlord by Tenant for any
action, other than that specifically required of the Landlord pursuant to the
provisions of the Lease, then, in that event, the reasonable cost of such
attorneys, investigative and/or other professional fees and expenses, incurred
by the Landlord, shall be paid on demand by Tenant to the Landlord.

 

40.20.                  The
person signing this Lease on behalf of Tenant personally represents and
warrants to Landlord that (i) all action necessary to be taken and all consents
necessary to be obtained to fully authorize the execution, delivery and
performance of this Lease by Tenant has been duly taken or obtained, as the
case may be and (ii) he or she is a duly authorized officer of Tenant who has
full power and authority to execute and deliver this Lease on behalf of Tenant
and bind Tenant to all of the terms and conditions hereof.

 

40.21.                  Except
as otherwise provided herein, Landlord shall only be deemed to be in default
under the terms of this Lease if Landlord shall violate, neglect, or fail to
observe, keep or perform any covenant or agreement which is not observed, kept
or performed by Landlord within forty-five (45) days after receipt by Landlord
of written notice by Tenant of such breach which notice shall specifically set
forth the nature of the breach. Landlord shall not be considered in default so
long as Landlord commences to cure the breach in a diligent and prudent manner
and is allowed such additional time as is reasonably necessary to correct the
breach.

 

40.22.                  This
Lease may be executed in one or more counterparts, each of which shall be
original, and all of which shall constitute one and the same instrument.

 

45

 

IN
WITNESS WHEREOF, Landlord and Tenant have duly
executed this Lease as of the day and year first above written.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  SEATTLE TELECOM LLC

  
	
   

  	
   

  
	
   

  	
  BY: GATEWAY REALTY SEATTLE, LLC.,

  
	
  ATTEST:

  	
  a Delaware limited liability company,

  a Managing Member

  
	
   

  	
   

  
	
     /s/ Kevin R. Booth

  	
   

  	
  BY:

  	
   

  	
  /s/ Kamran Hakim

  	
   

  
	
  Name:

  	
   

  	
  Kevin R. Booth

  	
   

  	
   

  	
  Kamran Hakim, Manager

  
	
  Title:

  	
   

  	
  Director of Finance

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
  ATTEST:

  	
  ADVANCED TELECOMMUNICATIONS, INC.,

  a Delaware corporation

  
	
   

  	
   

  
	
     /s/ J. Oxley

  	
   

  	
  BY:

  	
   

  	
  /s/ Satish Tiwari

  	
   

  
	
  Name:

  	
   

  	
  J. Jeffery Oxley

  	
   

  	
   

  	
  Name: Satish Tiwari

  
	
  Title:

  	
   

  	
  Director of Regulatory Affair

  	
   

  	
   

  	
  Title:  Vice
  President/Engineering

  and Network Implementation

  
	
   

  	
   

  
										

 

46

 

	
  STATE OF MINNESOTA

  	
  )

  
	
   

  	
  ) ss.:

  
	
  COUNTY OF HENNEPIN

  	
  )

  

 

The foregoing instrument was acknowledged before me this 20th
day of December, 1999, by Satish Tiwari, the Vice President/Engineering
and Network Implementation of Advanced Telecommunications, Inc., a Delaware
corporation, on behalf of the corporation.

 

	
   

  	
  /s/ David L. Mitchell

  
	
   

  	
  Notary Public

  

 

	
  STATE OF MINNESOTA

  	
  )

  
	
   

  	
  ) ss.:

  
	
  COUNTY OF HENNEPIN

  	
  )

  

 

BE IT REMEMBERED, that on
                                      ,
1999 before me, the subscriber, a Notary Public of the State of
                                       
personally appeared
                                      
who, being by me duly sworn on his oath, deposed and made proof to my
satisfaction, that he is the
                                  ,
of                                
a
                                          
corporation, the entity that executed the within instrument; that deponent
knows that                                         
is the                                  of
said corporation.

 

The execution as well as the making of this instrument has been duly
authorized by a proper resolution of the Board of Directors of the said
corporation; that the deponent well knows the corporate seal of said
corporation; that the seal affixed to the said instrument is the proper
corporate seal and was thereto affixed and said instrument signed and delivered
by said
                                            
as and for the voluntary act and deed of said corporation in the presence of
the deponent who thereupon subscribed his name thereto as attesting witness.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
				

 

 

Sworn to and subscribed

before me on the date

aforesaid

 

	
   

  	
   

  
	
  Notary Public

  	
   

  

 

[Notarial Seal]

 

47

 

EXHIBIT
A

 

DESCRIPTION
OF THE LAND

 

48

 

EXHIBIT
B

 

DESCRIPTION
OF THE DEMISED PREMISES

 

49

 

EXHIBIT
C

 

RULES
AND REGULATIONS

 

1.                                       Sidewalks,
entrances, driveways, passages, courts, elevators, vestibules, stairways,
corridors or halls shall not be obstructed or encumbered by any tenant or used
for any purpose other than for ingress or egress from the Building and for
delivery of merchandise and equipment in a prompt and efficient manner using
elevators and passageways designated for such delivery by Landlord. There shall
not be used in any space, or in the public hall of the Building, either by any
tenant or by jobbers or others in the delivery or receipt of merchandise, any
hand trucks, except those equipped with rubber tires and sideguards.

 

2.                                       The
water and wash closets and plumbing fixtures shall not be used for any purposes
other than those for which they were designed or constructed and no sweepings,
rubbish, rags, acids or other substances shall be deposited therein, and the
expense of any breakage, stoppage, or damage resulting from the violation of
this rule shall be borne by the tenant who, or whose clerks, agents, employees
or visitors, shall have caused it.

 

3.                                       No
tenant shall sweep or throw or permit to be swept or thrown from the Demised
Premises any dirt or other substances into any of the corridors or halls,
elevators, or out of the doors or stairways of the Building and Tenant shall
not use, keep or permit to be used or kept any foul or noxious gas or substance
in the Demised Premises, or permit or suffer the Demised Premises to be
occupied or used in a manner offensive or objectionable to Landlord or other
occupants of the Building by reason of noise, odors, and/or vibrations, or
unreasonably interfere in any way with other tenants or those having business
therein, nor shall any animals or birds be kept in or about the Demised
Premises or the Building. Smoking or carrying lighted cigars or cigarettes in
the elevators of the Building is prohibited.

 

4.                                       No
awnings or other projections shall be attached to the outside walls of the
Building without the prior written consent of Landlord.

 

5.                                       No
sign, advertisement, notice or other lettering shall be exhibited, inscribed,
painted or affixed by any tenant on any part of the outside of the Demised
Premises if the same is visible from the outside of the Demised Premises
without the prior written consent of Landlord, except that the name of Tenant
or any subtenant may appear on the entrance door of the Demised Premises. In
the event of the violation of the foregoing by Tenant, Landlord may remove same
without any liability, and may charge the expense incurred by such removal to
tenant(s) violating this rule. Interior signs on doors and a directory tablet,
if any, shall be subject to the prior written approval of Landlord.

 

6.                                       No
tenant shall mark, paint, drill into, or in any way deface any part of the
Demised Premises or the Building of which they form a part. No boring, cutting
or installation of electrical wiring shall be permitted, except with the prior
written consent of Landlord, and as Landlord may direct.

 

7.                                       No
additional locks or bolts of any kind shall be placed upon any of the doors or
windows by any tenant, nor shall any changes be made in existing locks or
mechanisms thereof. Each tenant must, upon the termination of his tenancy,
restore the Landlord all keys of stores,

 

1

 

offices and toilet rooms, and passes to the Building, either furnished
to, or otherwise procured by, such tenant, and in the event of the loss of any
keys so furnished, such tenant shall pay to Landlord the cost thereof.

 

8.                                       Freight,
furniture, business equipment, merchandise and bulky matter of any description
shall be delivered to and removed from the Demised Premises only on the freight
elevators and through the service entrances and corridors, and only during
Business Hours, and in a manner approved by Landlord. Landlord reserves the
right to inspect all freight to be brought into the Building and to exclude
from the Building all freight which violates any of these Rules and Regulations
of the Lease of which these Rules and Regulations are a part.

 

9.                                       Canvassing,
soliciting and peddling in the Building are prohibited and each tenant shall
cooperate to prevent the same.

 

10.                                 Landlord
reserves the right to exclude from the Building at all hours all persons who do
not present a pass to the Building signed by Landlord. Landlord will furnish
passes to persons for whom any tenant requests same in writing. Each tenant
shall be responsible for all persons for whom he requests such passes and shall
be liable to Landlord for all acts of such persons.

 

11.                                 Landlord
shall have the right to prohibit any advertising by any tenant which, in
Landlord’s opinion, tends to impair the reputation of the Building, or its
desirability as a commercial building, including, without limitation,
telecommunications facilities, office, retail and other lawful uses and upon
written notice from Landlord, Tenant shall refrain from or discontinue such
advertising.

 

12.                                 Tenant
shall not bring or permit to be brought or kept in or on the Demised Premises,
any inflammable, combustible or explosive fluid, material, chemical or
substance (other than chemicals used in ordinary office use in quantities
customary therefor) without the express prior written approval of Landlord, or
cause or permit any odors of cooking or other processes, or any unusual or
other objectionable odors to permeate in or emanate from the Premises.

 

13.                                 Tenant
agrees to abide by all reasonable rules and regulations issued by the Landlord
with respect to services for heating, ventilating and air-conditioning.

 

14.                                 Tenant
shall not move any safe, heavy machinery, heavy equipment, bulky matter, or
fixtures into or out of the Building without Landlord’s prior written consent
which shall not be unreasonably withheld. If such safe, machinery, equipment,
bulky matter or fixtures requires special handling, all work in connection
therewith shall comply with all laws and regulations applicable thereto and
shall be done during such hours as Landlord may designate.

 

15.                                 No
Tenant shall use, or permit the use of, fire exits for ingress to or egress
from the Demised Premises. No tenant shall invite to the Demised Premises, or
permit the visit of, persons in such numbers or under such conditions as to
interfere with the use and enjoyment of any of the plazas, entrances,
corridors, elevators and other facilities of the Building by the ground floor tenants.
No tenant shall encumber or obstruct, or permit the encumbrance or obstruction
of any of the Retail Premises, or the sidewalks, plazas, entrances, corridors,

 

2

 

elevators, fire exits or stairways of the Building. Landlord reserves
the right to control and operate the public portions of the Building, the
public facilities, as well as facilities furnished for the common use of
tenants, in such manner as Landlord deems best for the benefit of tenants generally
and consistent with a first-class office building with retail tenants.

 

16.                                 The
cost of repairing any damage to the public portions of the Building or the
public facilities or to any facilities used in common with other tenants,
caused by a tenant or the employees, licensees or invitees of such tenants,
shall be paid by such tenant as provided in the Lease.

 

17.                                 All
entrance doors in the Demised Premises shall be left locked when the Demised
Premises are not in use. Entrance doors shall not be left open at any time.

 

18.                                 No
bicycles, mopeds or vehicles of any kind shall be kept in or about the Building
or permitted therein.

 

19.                                 The
exterior windows and doors that reflect or admit light and air into any
premises or the halls, passageways or other public places in the Building,
shall not be covered or obstructed by any tenant, nor shall any articles be
placed on the windowsills.

 

20.                                 No
acids, vapors or other materials shall be discharged or permitted to be
discharged into the waste lines, vents or flues of the Building which may
damage them.

 

3Exhibit 10.16

 

OFFICE LEASE

 

 

between

 

 

PARKSIDE SALT LAKE CORPORATION

 

 

Landlord

 

 

and

 

 

ADVANCED
TELECOMMUNICATIONS, INC.

 

 

Tenant

 

 

PARKSIDE TOWER BUILDING

215 South State Street

Salt Lake
City, Utah

 

 

TABLE OF CONTENTS

 

	
  Section

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Rentable Area of Premises

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Term - Commencement Date and Expiration
  Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Rent and Other Payments

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Security Deposit

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Personal Property Taxes

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Use
  of Premises

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Condition
  of Premises: Repairs, Maintenance and Construction

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Mechanics’ Liens

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Building Services

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Common
  Areas

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Landlord’s Right of Access

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Indemnification and Waiver

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Insurance

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Damage or Destruction of Building or Premises

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Eminent
  Domain

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Assigning - Mortgaging - Subletting -
  Change in Ownership

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Subordination - Attornment

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Default

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Remedies

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Rules and Regulations

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  Surrender of Premises

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
   

  	
  Holding
  Over

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
   

  	
  Notices

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
   

  	
  Estoppel Certificates

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
   

  	
  Liability of Landlord

  	
   

  	
   

  

 

2

 

	
  26.

  	
   

  	
  Landlord’s Inability to Perform

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
   

  	
  Attorneys
  Fees

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28.

  	
   

  	
  General Provisions

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit
  “A” Legal Description of Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit
  “B” Drawings of Premises

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit
  “C” Memorandum of Commencement Date Rentable Area

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit
  “D” Tenant Work Letter

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit
  “E” Rules and Regulations

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit
  “F” Tenant’s Estoppel Certificate

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit
  “G” Parking Provisions

  	
   

  	
   

  

 

3

 

OFFICE
LEASE

 

THIS OFFICE LEASE (this “Lease”) is made this 28th day of
December 1999, between, PARKSIDE SALT LAKE CORPORATION, a Delaware
corporation (“Landlord”), and, ADVANCED TELECOMMUNICATIONS, INC., a
Delaware corporation (“Tenant”).

 

LEASE
OF PREMISES

 

Landlord hereby leases to Tenant and Tenant hereby leases from
Landlord, on the terms and conditions hereinafter set forth, those premises
(the “Premises”) set forth in Item 2 of the Basic Lease Provisions and shown in
the drawing attached hereto as Exhibit “B”, which Premises are a part of
that office building (the “Building”) identified in Item 1 of the Basic Lease
Provisions and situated on that certain real property described in Exhibit
“A” attached hereto (the “Property”).

 

 

 

	
   

  	
   

  	
   

  	
   

  	
  BASIC
  LEASE PROVISIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Building Name and Address:

  	
   

  	
  Parkside Tower Building

  
	
   

  	
   

  	
   

  	
   

  	
  215 South State Street

  
	
   

  	
   

  	
   

  	
   

  	
  Salt Lake City, Utah 84111

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Premises:

  	
   

  	
  The space on the 3rd, suite 380, as shown on Exhibit “B”.

  
	
   

  	
   

  	
  Rentable Area:

  	
   

  	
  Approximately 6,744 square feet.

  
	
   

  	
   

  	
  Usable Area:

  	
   

  	
  Approximately 5,796 square feet.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Basic Annual Rent:

  	
   

  	
   

  

 

	
   

  	
   

  	
  Basic
  Annual Rent

  	
   

  	
  Monthly
  Installments

  	
   

  
	
  Year 1:

  	
   

  	
  $

  	
  114,648.00

  	
   

  	
  $

  	
  9,554.00

  	
   

  
	
  Year 2:

  	
   

  	
  $

  	
  116,334.00

  	
   

  	
  $

  	
  9,694.50

  	
   

  
	
  Year 3:

  	
   

  	
  $

  	
  119,706.00

  	
   

  	
  $

  	
  9,975.50

  	
   

  
	
  Year 4:

  	
   

  	
  $

  	
  123,078.00

  	
   

  	
  $

  	
  10,256.50

  	
   

  
	
  Year 5:

  	
   

  	
  $

  	
  124,764.00

  	
   

  	
  $

  	
  10,397.00

  	
   

  
	
  Year 6:

  	
   

  	
  $

  	
  128,136.00

  	
   

  	
  $

  	
  10,678.00

  	
   

  
	
  Year 7:

  	
   

  	
  $

  	
  129,822.00

  	
   

  	
  $

  	
  10,818.50

  	
   

  
	
  Year 8:

  	
   

  	
  $

  	
  131,508.00

  	
   

  	
  $

  	
  10,959.00

  	
   

  
	
  Year 9:

  	
   

  	
  $

  	
  133,194.00

  	
   

  	
  $

  	
  11,099.50

  	
   

  
	
  Year 10:

  	
   

  	
  $

  	
  134,880.00

  	
   

  	
  $

  	
  11,240.00

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  	
  Based on a beginning rate of $17.00 per year per square foot of
  Rentable Area.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Tenant’s Percentage:

  	
   

  	
  3.6%

  
	
   

  	
   

  	
  Base Year:

  	
   

  	
  2000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Scheduled Commencement Date:

  	
   

  	
  On or about February 1, 2000.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Expiration Date:

  	
   

  	
  January 31, 2010

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Tenant Improvement Allowance:

  	
   

  	
  $10.00/usable square foot or $57,960.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Security Deposit:

  	
   

  	
  $20,000.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Guarantor(s):

  	
   

  	
  None

  

 

4

 

	
  10.

  	
   

  	
  Tenant’s Broker:

  	
   

  	
  Tres Telecom Real Estate Services and CB Richard Ellis

  
	
  Landlord’s Broker:

  	
   

  	
  NAI Utah Commercial Real Estate - Collin Perkins

  

 

5

 

AGENCY DISCLOSURE: At the signing of this Lease, the listing agent
represents Landlord, and the leasing agent represents Tenant. Landlord and
Tenant each confirm that prior to signing this Lease, this agency disclosure
was acknowledged by both parties.
(          ) Landlord’s
Initials (         ) Tenant’s
Initials

 

	
  11.

  	
   

  	
  Use of premises:  General
  office purposes.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Address for Payments and Notices:

  	
   

  	
   

  
	
   

  	
   

  	
  Landlord:

  	
   

  	
  Payments and Local Notices

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Cottonwood Management

  
	
   

  	
   

  	
   

  	
   

  	
  215 S. State, Suite 805

  
	
   

  	
   

  	
   

  	
   

  	
  Salt Lake City, UT 84111

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: Lorrie Ostlind

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tenant:

  	
   

  	
  Notices

  
	
   

  	
   

  	
   

  	
   

  	
  Advanced Telecommunications, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
  730 2nd Avenue South, Suite 1200

  
	
   

  	
   

  	
   

  	
   

  	
  Minnesota, MN 55402

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Lease,
consisting of the foregoing provisions and Sections 1 through 28 of the
Additional Lease Provisions which follow, together with Exhibits “A”
through “I” incorporated herein by this reference, as of the date first
above written.

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  PARKSIDE SALT LAKE CORPORATION

  	
   

  	
  ADVANCED TELECOMMUNICATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   /s/Gerald [illegible]

  	
   

  	
  By:

  	
  /s/Satish C. Tiwari

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
    Asset Manager

  	
   

  	
  Its:

  	
    V.P. Engineering and Network Implementation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
    1-11-2000

  	
   

  	
  Date:

  	
    12/30/1999

  
							

 

6

 

ADDITIONAL
LEASE PROVISIONS

 

SECTION 1.                                    RENTABLE AREA OF PREMISES

 

The Rentable Area of the Premises is provided in Item 2 of the Basic
Lease Provisions. For the purpose of this Lease, “Rentable Area” is calculated
pursuant to the Standard Method for Measuring Floor Area of Office Buildings,
ANSI 265.1-1980, commonly known as the “BOMA standard.”

 

SECTION 2.                                    TERM — COMMENCEMENT DATE AND EXPIRATION
DATE

 

The term of this Lease shall commence on the date on which Tenant first
takes possession of the Premises. If Landlord is unable to deliver possession
of the Premises to Tenant on or before the Scheduled Commencement Date, this
Lease shall not be void or voidable, but rather, shall remain in full force and
effect except as otherwise provided in this Section 2. Landlord shall not
be subject to any liability to Tenant for any loss or damage resulting from
such non-delivery and Tenant’s obligations hereunder shall not be affected
thereby. If Landlord is unable to deliver possession of the Premises to Tenant
within thirty (30) days after the Scheduled Commencement Date, Tenant shall
have the option to terminate this Lease, and Landlord shall not, by reason
thereof, be subject to any liability except that Landlord shall return to
Tenant all monies which Landlord has theretofore received from Tenant as
prepaid rent or as a security deposit, without interest; provided, however,
Tenant’s occupancy of the Premises at any time shall conclusively be deemed a
waiver of this provision. The term of this Lease shall, unless this Lease is
terminated sooner as provided herein, end on the “Expiration Date” as provided
in Item 6 of the Basic Lease Provisions and shall not be extended by any such delay.
The date upon which the term of this Lease actually commences shall hereafter
be referred to as the “Commencement Date.” The period from the Commencement
Date through the Expiration Date is the “Lease Term,” unless it is sooner
terminated as provided herein. Within thirty (30) days after the Commencement
Date, Landlord and Tenant shall execute the memorandum attached hereto as Exhibit
“C”, but failure to do so shall not affect Tenant’s obligations under this
Lease.

 

SECTION 3.                                    RENT AND OTHER PAYMENTS

 

3.1                                           Basic
Annual Rent. Tenant shall pay to Landlord rent for the Premises
in an amount equal to the Basic Annual Rent set forth in Item 3 of the Basic
Lease Provisions for each year and a pro rata portion thereof for each partial
year during the Lease Term (the “Basic Annual Rent”). Basic Annual Rent shall
be paid in equal monthly installments in the amount set forth in Item 3 of the
Basic Lease Provisions, in advance and without prior notice, invoice or demand,
on the first day of each month commencing on the Commencement Date. Basic
Annual Rent payable for any period of less than one (1) month shall be prorated
based upon a thirty (30) day month.

 

3.2                                           Additional
Rent.

 

3.2.1                                 Tenant’s
Share. In addition to Basic Annual Rent, Tenant shall pay to Landlord,
as additional rent (“Additional Rent”), the amount, if any, by which Tenant’s
Share of Direct Expenses for each Expense Year exceeds Tenant’s Share of Direct
Expenses for the Base Year. If the Lease Term falls partially within an Expense
Year, Tenant’s share of Direct Expenses shall be equitably prorated based upon
a 360-day year consisting of twelve 30 day months, in calculating the amount of
Tenant’s Additional Rent for such Expense Year. Landlord may estimate Direct
Expenses and Tenant’s Additional Rent (“Estimated Additional Rent”)
periodically, and after notice from Landlord of Estimated Additional Rent for
an Expense Year,

 

7

 

Tenant shall pay Landlord, with each installment of Basic Annual Rent,
an amount equal to one-twelfth (1/12) of such Estimated Additional Rent (or, if
the Estimated Additional Rent is for a period of less than twelve months,
Tenant shall pay such Estimated Additional Rent on a monthly basis ratably over
the period to which such Estimated Additional Rent relates).

 

3.2.2                                 Definitions:
As used in this Section 3.2, the following terms have the meaning
hereinafter set forth:

 

(i)  “Base Year” is the calendar
year or other period described in Item 4 of the Basic Lease Provisions. The
Base Year is an Expense Year.

 

(ii)  “Tenant’s Share of Direct
Expenses” for a given Expense Year is an amount equal to the Tenant’s
Percentage set forth in Item 4 of the Basic Lease Provisions multiplied by the
amount of Direct Expenses for such Expense Year. If the Rentable Area of the
Premises and/or the Rentable Area of the Building is changed, Tenant’s
Percentage shall be appropriately adjusted.

 

(iii)  “Expense Year” shall mean
each twelve (12) consecutive month period commencing January 1st of each
year.

 

(iv)  “Direct Expenses” shall
mean “Operating Expenses” plus “Tax Expenses.” If during any Expense Year the
Building is on a monthly average less than ninety- five percent (95%) occupied,
the Direct Expenses shall be increased to reflect the Direct Expenses which
Landlord reasonably determines it would have so incurred had the Building been
ninety-five percent (95%) occupied and the Additional Rent shall be based upon
the Direct Expenses so adjusted.

 

(v)  “Operating Expenses” shall
mean any and all costs and expenses paid or incurred by Landlord in connection
with the operation, maintenance, management and repair of the Building and
Property. By way of illustration but not limitation, Operating Expenses shall
include the following: (A) the cost of supplying all utilities (unless Landlord
elects to separately meter any utilities to the Premises, in which case Tenant
shall pay directly the charges for those utilities and Operating Expenses shall
not include similar utilities furnished to other tenants’ premises), the cost
of operating, maintaining, repairing and managing the utility systems,
mechanical and heating systems, ventilation and air conditioning systems,
sanitary and storm drainage systems, and escalator and elevator systems, the
cost of environmental and energy surcharges imposed by any governmental entity,
and the cost of supplies and equipment and maintenance and service contracts in
connection therewith; (B) the cost of landscape maintenance, all supplies, and
relamping; (C) the cost of parking area maintenance, including resurfacing,
repainting and restriping, if applicable, (D) the cost of fire, extended
coverage, all-risk, boiler, sprinkler, public liability, property damage,
workmen’s compensation, loss of rent, earthquake (only if available at commercially
reasonable rates) and other or additional insurance that Landlord purchases for
the Building and Property, including such endorsements thereto as Landlord may
desire, all in such amounts as Landlord may reasonably determine; (E) wages,
salaries and other labor costs, including payroll and employment taxes, and
employee medical, welfare, pension and other fringe benefits for persons whose
services are exclusively devoted to on-site management, security and
maintenance of the Building and Property; (F) fees, charges and other costs,
including (but not limited to) management fees, consulting

 

8

 

fees, legal fees, accounting fees and security service fees, of all
independent contractors engaged by Landlord (including any affiliates of
Landlord) or reasonably incurred by Landlord in connection with the management,
operation, maintenance and repair of the Building and Property; (G) the cost of
licenses, permits and inspections and the cost of contesting the validity or
applicability of any government enactments which may affect Operating Expenses;
(H) the fair market rental value of the property manager’s office in the
Property; (I) depreciation of the cost of acquiring or the rental expense of
personal property used in the maintenance, operation and repair of the Building
and Property; and (J) the cost of any reasonable capital improvements made to
the Building or Property as a labor-saving device or to effect other economies
in the operation or maintenance of the Building or Property, or as required
under any governmental law or regulation that was not applicable to the
Building or Property at the time that permits for the construction thereof were
obtained, or as periodically required to maintain the appearance of the
Property and its first-class, competitive quality, such costs to be amortized
over such reasonable period as Landlord shall determine, together with interest
on the unamortized balance at a market rate. For purposes of this Lease,
Operating Expenses shall not include “Tax Expenses”; principal or interest
expense, except as provided in clause (J) above; leasing commissions and other
costs related to leasing to, improvements for, disputes with or eviction of
tenants in the Building; depreciation on the improvements contained in the
Building or Property, except as provided in clause (I) above; or the cost of
capital expenditures not included in clause (J) above. Additionally, for
purposes of computing Tenant’s Base Year, excluded from this calculation are
all one-time expenses incurred by Landlord which are attributable to repair or
replacement of deferred items noted during due diligence and acquisition of the
Property. The computation of Operating Expenses shall be made in accordance
with generally accepted accounting principles.

 

(vi)  “Tax Expenses” shall
include real property taxes, current installments of any general or special
assessments, license fees, commercial rental taxes, in lieu taxes, levies,
charges, penalties or similar impositions, imposed by any authority having the
direct power to tax against or attributable to any legal or equitable interest
of Landlord in the Property, including tenant improvements and Changes (as
hereafter defined) to the extent not paid directly by tenants, which are paid
or incurred by Landlord, and which shall include, but not be limited to, the
following:

 

(A) Any tax on Landlord’s rent from the
Property or as against Landlord’s business of leasing any of the Property, but
specifically excluding Landlord’s federal, state or city income, franchise,
inheritance or estate taxes;

 

(B) Any assessment, tax, fee, levy or charge
imposed by governmental agencies for such services as fire protection, street,
sidewalk and road maintenance, refuse removal and for other governmental
services; and

 

(C) Any assessment, tax, fee, levy or charge,
upon this transaction evidenced by this Lease or any document to which Tenant
is a party, creating or transferring an interest or an estate in the Premises.

 

3.2.3                     Statement
of Actual Direct Expenses. Landlord shall give to Tenant on or before
the end of each Expense Year falling in whole or in part during the Lease Term,
a statement (the “Statement”) which shall state the Direct Expenses incurred or
accrued for such

 

9

 

preceding Expense Year, and which shall indicate the amount, if any, of
Tenant’s Additional Rent for such preceding Expense Year. Upon receipt of the
Statement for each Expense Year falling in whole or in part during the Lease
Term, if Tenant’s Additional Rent exceeds the amount of Estimated Additional
Rent paid by Tenant for such Expense Year, Tenant shall pay, with its next
installment of Basic Annual Rent due, or, if the Lease Term has ended, within
thirty (30) days after the Statement is rendered, the full amount of such
deficiency. If payments of Estimated Additional Rent made by Tenant for such
Expense Year exceed the actual amount of Tenant’s Additional Rent, then Tenant
shall receive a credit against future payments of Additional Rent; provided, if
any such credit has not been applied as of the end of the Lease Term, Landlord
shall pay Tenant an amount equal to such unapplied credit on or before the last
to occur of: (i) the thirtieth (30th) day following the last day of the Lease
Term; or (ii) the thirtieth (30th) day following the delivery to Tenant of the
Statement setting forth such credit. The failure of Landlord to timely furnish
the Statement for any Expense Year shall not prejudice Landlord from enforcing
its rights under this Section 3.

 

3.3                               Payment
of Rent. All amounts payable by Tenant to Landlord under this
Lease shall be deemed to be rent and, except as expressly provided in this
Lease, shall be payable to Landlord without abatement, deduction or offset, at
Landlord’s address as provided in Item 13 of the Basic Lease Provisions or to
such other persons or at such other places as Landlord designates in writing.
If Tenant’s obligation to pay any rent accrues prior to the expiration or
earlier termination of this Lease, then such obligation shall survive such
expiration or termination, even if the amount is not then due or calculated.

 

SECTION 4.                                    SECURITY DEPOSIT

 

Tenant has deposited with Landlord the amount indicated in Item 8 of
the Basic Lease Provisions as security for the full and faithful performance of
each and every provision of this Lease to be performed by Tenant. If Tenant
defaults with respect to any provision of this Lease, Landlord may (but shall
not be required to) use, apply or retain all or any part of this security
deposit for the payment of any rent or any other sum in default, or for the
payment of any other amount which Landlord may spend or become obligated to
spend by reason of Tenant’s default or to compensate Landlord for any other loss
or damage which Landlord may suffer by reason of Tenant’s default. If any
portion of said deposit is so used or applied, Tenant shall, within five (5)
days after written demand therefor, deposit cash with Landlord in an amount
sufficient to restore the security deposit to its original amount. Prior to the
time when Tenant is entitled to any return of the security deposit, Landlord
may intermingle such deposit with its own funds and use such sum for such
purposes as Landlord may determine. Tenant shall not be entitled to any
interest on the security deposit.

 

SECTION 5.                                    PERSONAL PROPERTY TAXES

 

With respect to Tenant’s trade fixtures, furnishings, equipment and all
other personal property located in the Premises, and any improvements made to
the Premises in excess of Landlord’s building standard tenant improvements, (i)
Tenant shall be liable for and pay at least ten (10) days prior to delinquency
all taxes assessed against or levied thereon (“Tenant’s Taxes”) and (ii) when
possible, Tenant shall cause Tenant’s Taxes to be assessed and billed
separately from the taxes on the Property of Landlord; but if Tenant’s Taxes
shall be assessed and taxed with the Property, Tenant shall pay them to
Landlord within ten (10) days after Landlord’s delivery to Tenant of a statement
in writing setting forth the amount of Tenant’s Taxes.

 

10

 

SECTION 6.                                    USE OF PREMISES

 

6.1                               Limitation
of Use. Tenant shall use and occupy the Premises solely for the purpose
stated in Item 11 of the Basic Lease Provisions and shall not use or occupy the
Premises or permit the same to be used or occupied for any other purpose
without the prior written consent of Landlord. Tenant agrees that it will not
do or permit anything to be done in or about the Premises which will in any way
obstruct or interfere with or infringe upon the rights of other tenants or
occupants of the Building or Property, or to injure or annoy them, or use or
allow the Premises to be used for any improper, immoral, unlawful or objectionable
purpose, nor shall Tenant cause, maintain or permit any nuisance in, on or
about the Premises.

 

6.2                               Compliance
With Governmental and Insurance  Regulations. Tenant shall not do
or permit to be done anything that will invalidate or increase the cost of any
fire, extended coverage or other insurance policy covering the Building, and
Tenant shall promptly upon demand reimburse Landlord for any additional premium
charges for such policy or policies caused by reason of Tenant’s failure to
comply with the provisions of this Section 6.2. Tenant shall not bring or
permit to remain on the Premises any Hazardous Substances, except usual office
supply products used and stored in usual quantities and manner. As used in the
preceding sentence, the term “Hazardous Substances” means any hazardous or
toxic substances, materials or wastes, including, but not limited to, those
substances, materials, and wastes listed in the United States Department of
Transportation Hazardous Materials Table (49 CFR § 172.101) or by the
Environmental Protection Agency as hazardous substances (40 CFR Part 302) and
amendments thereto, or such substances, materials and wastes which are or
become regulated under any applicable local, state or federal law including,
without limitation, any material, waste or substance which is (i) petroleum,
(ii) asbestos, (iii) polychlorinated biphenyls, (iv) defined as a “hazardous
waste,” under Section 19-6-102 of the Utah Code Annotated, Solid and
Hazardous Waste Act, or any rule promulgated thereunder, (v) designated as a
“hazardous substance” pursuant to Section 311 of the Clean Water Act, 33
U.S.C. § 1251, et seq. (33 U.S.C. § 1321) or listed pursuant
to Section 307 of the Clean Water Act (33 U.S.C. § 1317), (vi)
defined as a “hazardous waste” pursuant to Section 1004 of the Resource
Conservation and Recovery Act, 42 U.S.C. § 6901, et seq. (42 U.S.C.
§ 6903) or (vii) defined as a “hazardous substance” pursuant to
Section 101 of the Comprehensive Environmental Response, Compensation, and
Liability Act, (42 U.S.C. § 9601).

 

SECTION 7.                                    CONDITION OF PREMISES: REPAIRS, MAINTENANCE AND
CONSTRUCTION

 

7.1                               Condition
of Premises. Tenant acknowledges that neither Landlord nor any agent of
Landlord has made any representation or warranty with respect to the Building
or the Premises or with respect to the suitability of either for the conduct of
Tenant’s business. Tenant hereby agrees to take the Premises in their “as is”
condition, subject to the provisions of Section 7.2.2 and Exhibit “D”
attached hereto. The taking of possession of the Premises by Tenant shall
conclusively establish that the Premises and the Building were at such time in
good sanitary order, condition and repair.

 

7.2                               Maintenance
and Repair.

 

7.2.1                     Tenant
Repairs and Maintenance. Tenant shall at its sole cost and expense keep
and maintain in good and tenantable condition and repair, the Premises and
every part thereof, including, without limitation, the floor coverings,
interior walls, ceiling, doors,

 

11

 

drapes and other window treatments, plumbing, fixtures and equipment
therein. Tenant shall not commit or suffer to be committed any waste in or upon
the Premises, nor effect any Changes, nor do anything in or on the Premises
that, in Landlord’s sole opinion, detracts from the quality or appearance of
the Building. All damage or injury to the Premises, caused by the act or
negligence of Tenant, its employees, agents, invitees, permittees, licensees or
contractors shall be promptly repaired by Tenant, at its sole cost and expense,
to the satisfaction of Landlord, and subject to such requirements respecting
construction that Landlord shall reasonably impose. Landlord may but shall not
be obligated to make any repairs that are not promptly made by Tenant and to
charge Tenant for the cost thereof. Tenant hereby expressly and irrevocably
waives the benefit or applicability of any statute or law now or hereafter in
effect that would otherwise afford Tenant the right to make repairs at
Landlord’s expense or to terminate this Lease because of Landlord’s failure to
comply with the provisions of Section 7.2.2.

 

7.2.2                     Landlord
Repairs and Maintenance. Landlord shall maintain and repair the
structural, mechanical and utility elements and Common Areas of the Building and
Property. Any restriction on or interference with Tenant’s access to the
Premises shall be limited to the minimum amount necessary to accomplish the
maintenance or repair work. Rent under this Lease shall not be abated as a
result of any such activities unless Tenant’s access to the Premises is
prevented for more than 48 hours in which case, except as provided in the next
sentence, the rent shall abate for the balance of such obstruction. If the need
for repairs was caused by any act or negligence of Tenant or its employees,
agents, invitees, permittees, licensees or contractors, then such repairs shall
be performed at Tenant’s expense and no abatement of rent shall occur.

 

7.3                               Construction
of Improvements to the Premises. Except for alterations, additions,
modifications or improvements (collectively, “Changes”) expressly required or
permitted by this Lease, Tenant shall not make any Changes to the Premises or
any part thereof without Landlord’s prior written consent, which consent shall
not be unreasonably withheld or delayed. To the extent permitted or consented
to hereunder, any construction undertaken in or to the Premises shall be
performed in accordance with this Section and any reasonable requirements
then imposed by Landlord. All Changes made in or to the Premises shall become
the property of Landlord and a part of the realty. All initial tenant
improvements to the Premises, and all later Changes to the Premises that are
non structural that cost in excess of twenty thousand dollars ($20,000) shall, at
Landlord’s option, be performed by Landlord or its contractor. Any later
Changes to the Premises costing less than twenty thousand dollars ($20,000), or
later Changes that cost $20,000 or more which Landlord elects not to construct
may be constructed by Tenant, subject to reasonable construction and other
requirements then imposed by Landlord, including the right to reasonably
approve all plans and specifications and charge Tenant a supervision fee equal
to five percent (5%) of the cost of such work. Landlord shall pay for the cost
of initial improvements to the Premises in accordance with the provision of Exhibit
“D” attached hereto up to the amount of the “Tenant Improvement Allowance”
specified in Item 7 of the Basic Lease Provisions, if any, and the balance
shall be paid by as provided for in Exhibit “D”. Unless otherwise
expressly provided in this Lease, Tenant shall pay all costs of any later
Changes to the Premises.

 

SECTION 8.                                    MECHANICS’ LIENS

 

Tenant hereby agrees to keep the Property free from any liens arising
out of any work performed, materials furnished or obligations incurred by or on
behalf of Tenant and to promptly notify Landlord if it learns of any such
liens.

 

12

 

SECTION 9.                                    BUILDING SERVICES

 

9.1                               Provision
of Services. So long as Tenant is not in default hereunder, Landlord
agrees, subject to the terms and conditions hereinafter set forth, to furnish
or provide for the furnishing to the Premises (i) air conditioning, heat,
lighting, and elevator service only during the hours of 7:30 a.m. to 6:00 p.m.
Monday through Friday, except legal holidays, and 8:00 a.m. to 1:00 p.m.
Saturdays, in such quantity and of such quality as Landlord determines in its
sole judgment is reasonably necessary for Tenant’s comfortable use and
enjoyment of the Premises for general office purposes and, at all other times.
to provide air conditioning, heating and lighting at Landlord’s prevailing
rate, and one elevator; (ii) on the same floor as the Premises, water for
lavatory and drinking purposes at all times when the Premises are occupied;
(iii) routine janitorial services five (5) days per week (except for legal
holidays); and (iv) maintenance of the Common Areas. No gas shall be provided
to or permitted in the Premises. Electricity service and costs therefor, except
electricity used for before or after hours lighting or electricity that is
separately metered, are the obligations and expense of Landlord, as Operating
Expenses, provided Landlord is entitled to reimbursement therefor to the extent
such costs are included in Additional Rent. Tenant shall arrange for and shall
pay the entire cost and expense of all materials and services relating to or
used on the Premises not expressly required to be provided and paid for by
Landlord pursuant to this Lease.

 

9.2                               Interruption
of Services. Landlord shall under no circumstances be liable in damages
or otherwise for any failure or interruption of, or reduction in any utility
service or Building service being furnished to the Premises by Landlord or
otherwise and no such failure or interruption shall under any circumstances
entitle Tenant to withhold, reduce or abate any rent or terminate this Lease,
regardless of whether caused by riot, strike, lockout, labor disputes, breakage,
breakdowns, accidents, repairs, governmental regulation or moratorium, any act
or omission of Tenant or its employees, agents, invitees, licensees, customers
or visitors or any other cause.

 

9.3                               Additional
Building Service Demands. Tenant shall not install any
computers, copiers or other electrical office equipment in the Premises without
Landlord’s prior written approval. Should any equipment installed by Tenant
produce any significant amount of heat or cause any significant additional
usage or draw on the electrical or other utility system, Landlord shall not be
responsible for the adequacy of any air conditioning, electric current or other
utilities affected thereby, and to the extent Tenant uses or requests
additional utilities or Building services as a result thereof, Tenant shall pay
to Landlord an amount reasonably estimated by Landlord to be the additional
costs incurred thereby. If and where heat generating machines or devices are
used in the Premises which affect the temperature otherwise maintained by the
air conditioning system, Landlord reserves the right to install additional or
supplementary air conditioning units for the Premises or other affected areas
of the Building, and the entire cost of installing, operating, maintaining and
repairing the same shall be paid by Tenant to Landlord promptly after demand by
Landlord.

 

SECTION 10.                             COMMON AREAS

 

The term “Common Areas” as used herein shall mean all areas and
facilities outside the Premises or premises leased to other tenants of the
Property and within the exterior boundaries of the Property which are provided
and designated from time to time by Landlord for the general use and
convenience of Tenant and other tenants of the Property and their respective
employees, invitees or other visitors. Common Areas include, without
limitation, walkways, sidewalks, service quarters, hallways, restrooms (if not
part of the premises), stairways, elevators and walls, except to the extent
situated entirely within the Premises or premises leased to other tenants of
the property. Tenant, its employees and invitees shall have the nonexclusive
right to

 

13

 

use the Common Areas along with others entitled to use same, subject to
Landlord’s rights and duties as hereinafter set forth. Landlord shall have the
right to temporarily close or obstruct the Common Areas or any part thereof for
maintenance, alteration, addition or improvement purposes, or to protect
Landlord’s legal rights, and to change the size, use, shape or nature of any
such Common Areas and remove portions of the Common Areas from Tenant’s use,
provided such change does not deprive Tenant of the substantial benefit and
enjoyment of the Common Areas or its Premises.

 

SECTION 11.                             LANDLORD’S RIGHT OF ACCESS

 

Landlord reserves for itself at any and all times the right to enter
the Premises and to take materials and equipment therein, as necessary, for
purposes of (i) providing janitorial services and any other service to be
provided by Landlord to Tenant hereunder; (ii) examining or inspecting the
Premises; (iii) serving or posting notices of non- responsibility; (iv) showing
the same to prospective tenants or mortgagees of the Premises or purchasers of
the Building; (v) emergency entry, by force if necessary; (vi) entry by
security personnel during non-business hours to make security checks; or (vii)
making such Changes or repairs to the Premises or to any other portion of the
Building as Landlord may deem necessary or desirable, including the
installation of sprinklers in the Premises and Building, all without being
deemed guilty of an eviction of Tenant and without abatement of rent. Landlord
shall at all times have and retain a key with which to unlock all of the doors
in, upon and about the Premises, excluding Tenant’s vaults and safes. Landlord
shall have the right to place, maintain, and repair all utility equipment of
any kind in, upon, and under the premises as may be necessary for the servicing
of the premises or other portions of the Building.

 

SECTION 12.                             INDEMNIFICATION

 

12.1                        Indemnification.
To the extent not prohibited by law, Landlord, its partners, trustees ancillary
trustees, and their respective officers, directors, shareholders, members,
beneficiaries, agents, servants, employees, and independent contractors
(collectively, “Landlord Persons”) shall not be liable for any damage,
claims, or loss either to person or property, or resulting from the loss of use
thereof, which damage is sustained by Tenant or by other persons claiming
through Tenant; provided, however, nothing herein is intended to limit the
liability of each of the Landlord Persons for damage arising solely from his,
her or its own gross negligence or intentional misconduct, which gross
negligence or intentional misconduct of Landlord Persons other than Landlord
itself, shall not be imputed to Landlord. Tenant agrees to indemnify, defend,
and hold Landlord harmless from all claims, costs, expenses, losses, damages,
and liabilities, including attorney’s fees, except those caused solely by Landlord’s
negligence, gross negligence or intentional misconduct, arising or resulting
from (a) any accident, injury, death, loss, or damage to any person or to any
property, including without limitation, the person and property of the Tenant
and its partners, trustees, officers, directors, shareholders, members,
beneficiaries, licensees, invitees, or any subtenants or subtenants’ agents,
employees, contractors, or invitees, servants, guests, or independent
contractors (“Tenant Persons”), and all other persons at any time in the
building or the Premises or the Common Areas, (b) the occupancy or use of the
Premises by the Tenant, or (c) any act or omission or negligence of Tenant
Persons. The indemnification obligations of Tenant under this Lease shall survive
the expiration or earlier termination of this Lease.

 

12.2                        Tenants
Compliance with Landlord’s Fire and Casualty Insurance.  Tenant shall, at Tenant’s expense, comply as
to the Premises with all insurance company requirements pertaining to the use
of the Premises. If Tenant’s conduct or use of the Premises

 

14

 

causes any increase in the premium for such insurance policies, then
Tenant shall pay Landlord for nay such increase. Tenant, at Tenant’s expense, shall
comply with all rules, orders, regulations or requirements of the American
Insurance Association (formerly the National Board of Fire Underwriters) and
with any similar body.

 

SECTION 13.                             INSURANCE

 

13.1                        Tenant’s
Insurance. Tenant shall maintain the following coverages in the
following amounts.

 

13.1.1              Commercial
General Liability Insurance  covering the insured against claims of
bodily injury, personal injury, and property damage arising out of Tenant’s
operations, assumed liabilities, or use of the Premises, including a Broad Form
Commercial General Liability endorsement covering the insuring provisions of
this Lease and the performance by Tenant of the indemnity agreements set forth
in Section 12.1 of this Lease, for limits of liability not less
than:

 

	
  Property Injury and

  	
   

  	
  $2,000,000 each occurrence

  
	
  Property Damage Liability

  	
   

  	
  $2,000,000 annual aggregate

  
	
   

  	
   

  	
   

  
	
  Personal Injury Liability

  	
   

  	
  $2,000,000 each occurrence

  
	
   

  	
   

  	
  $2,000,000 annual aggregate

  

 

13.1.2              Physical Damage
Insurance covering (i) all office furniture, trade fixtures, office equipment,
merchandise, and all other items of Tenant’s property on the Premises installed
by, for, or at the expense of Tenant, (ii) the Tenant Improvements, including
any Tenant Improvements which Landlord permits to be installed above the
ceiling of the Premises or below the floor of the Premises, and (iii) all other
improvements, alterations, and additions to the Premises, including any
improvements, alterations, or additions installed at Tenant’s request above the
ceiling of the Premises or below the floor of the Premises. Such insurance
shall be written on an “all risks” of physical loss or damages
basis, for the full replacement cost value new without deduction for
deprecation of the covered items and in amounts that meet any co-insurance
clauses of the policies of insurance and shall include a vandalism and
malicious mischief endorsement, and sprinkler leakage coverage.

 

13.1.3              Loss-of-income and
extra-expense insurance in such amounts as will reimburse Tenant for direct or
indirect loss of earnings attributable to all perils commonly insured against
prudent tenants or attributable to prevention of access to the Premises or to
the Building as a result of such perils.

 

13.1.4              The minimum limits
of policies of insurance required of Tenant under this Lease shall in no event
limit the liability of Tenant under this Lease. Such insurance shall (i) name
Landlord, and any other party it so specifies, as an additional insured; (ii)
specifically cover the liability assumed by Tenant under this Lease, including,
but not limited to, Tenant’s obligations under Section 12.1 of this
Lease; (iii) be issued by an insurance company having a rating of not less than
A-X in Best’s Insurance Guide or which is otherwise acceptable to Landlord and
licensed to do business in the state in which the Building is located; (iv) be
primary insurance as to all claims thereunder and provide that any insurance
carried by Landlord is excess and is non-contributing with any insurance
requirement of Tenant; (v) provide that said insurance shall not be canceled,
expire, or coverage changed unless thirty (30) days’ prior written notice shall
have been given to Landlord and any mortgagee or ground or underlying lessor of
Landlord; and (vi) contain a cross-liability endorsement or severability of
interest clause

 

15

 

acceptable to Landlord. Tenant shall deliver said policy or policies or
certificates thereof to Landlord on or before the Commencement Date and at least
thirty (30) days before the expirations dates thereof. In the event Tenant
shall fail to procure such insurance, or to deliver such policies or
certificate, Landlord may, at its option, procure such policies for the account
of Tenant, and the cost thereof shall be paid to Landlord as additional Rent
within five (5) days after delivery to Tenant of bills thereof.

 

13.2                        Subrogation.
Landlord and Tenant agree to request that their respective insurance companies
issuing property damage insurance waive any rights of subrogation that such
companies may have against Landlord or Tenant, as the case may be, so long as
the insurance carried by Landlord or Tenant, respectively, is not invalidated
thereby. As long as such waivers of subrogation are contained in their respective
insurance policies, and subject to Section 14, Landlord and Tenant
hereby waive any right that either may have against the other on account of any
loss or damage to their respective property to the extent such loss or damage
is actually insured under policies of insurance for fire, all risk coverage,
theft, public liability, or other similar insurance.

 

13.3                        Additional
Insurance Obligations. Tenant shall carry and maintain during
the entire Lease Term, at Tenant’s sole cost and expense the insurance required
to be carried by Tenant pursuant to this Section 13, and such other
reasonable types of insurance coverage and in such reasonable amounts covering
the Premises and Tenant’s operations therein, as may be reasonably requested by
Landlord. Tenant shall not do or permit to be done anything which shall cause
the cancellation of, invalidate, increase the rate of, or otherwise adversely
affect, the insurance policies referred to in this Section 13.

 

13.4                        No Gap In
Coverage. All insurance provided by Tenant under this Lease
shall be coordinated with any preceding, concurrent or subsequent, occurrence
or claims made in insurance, in such a manner as to avoid any gap in coverage
against claims arising out of occurrences, conduct or events which take place
during the period beginning on the Lease Date and ending on termination of this
Lease.

 

13.5                        No
Landlord Representation. Landlord makes no representation that the
insurance coverage required of Tenant provides adequate coverage for Tenant’s
needs or for its obligations under this Lease. Nothing in this Lease is
intended to make Tenant an insured party in any manner under any insurance
policy carried by Landlord.

 

13.6                        No
Waiver of Insurance Requirements. Landlord shall not be deemed to have
waived or reduced any of the insurance coverage requirements for Tenant except
by an express written agreement to that effect. The receipt by Landlord or its
contractors or agents of insurance policies, certificates, letters, or other
correspondence, documents or information which do not conform to the insurance
requirements of this Lease, or the failure of Landlord to receive policies,
certificates, or other documentation requires by this Section 13,
shall not be deemed to be Landlord’s consent to a waiver or reduction of any
such requirements, despite any failure by landlord to object to same at the
time of receipt (or lack of receipt), or thereafter. Any reduction,
modification, or waiver of any of Tenant’s insurance requirements under this
Lease may be made only by written document signed by Landlord and Tenant which
expressly amends the pertinent described portions of this Lease.

 

16

 

SECTION 14.                             DAMAGE OR DESTRUCTION OF BUILDLING OR
PREMISES

 

14.1                        Partial
Damage. Except as provided in Section 7.2, if the Premises
or the Building is damaged by fire or other insured casualty and the insurance
proceeds have been made available therefor by the holder or holders of any
mortgages or deeds of trust covering the Property, the damage shall be repaired
by Landlord; provided, if (a) such repairs cannot, in Landlord’s sole opinion,
be made within ninety (90) days after the occurrence of such damage without the
payment of overtime or other premiums; (b) such repairs cannot be made at a
cost equal to or less than the amount of insurance proceeds available therefor;
(c) the Premises by reason of such damage are rendered wholly untenantable; (d)
the Premises are damaged in whole or in part during the last six (6) months of
the Lease Term; or (e) the Premises or the Building (whether the Premises are
damaged or not) should be damaged to the extent of fifty percent (50%) or more
of the then-monetary value thereof, then Landlord shall not be required to make
such repairs but may, at its discretion, elect to do so. Landlord’s election to
make such repairs must be evidenced by written notice to Tenant within ninety
(90) days of Landlord’s learning of the occurrence of the damage. Any
reconstruction or repair of the Premises Landlord is required or elects to make
in accordance with the provisions of this Section 14.1 shall be
substantially to the condition that existed immediately prior to the damage or
destruction. If Landlord is not required to make such repairs and does not
elect to make them then either party may, by written notice to the other,
cancel this Lease as of the date of the occurrence of such damage, provided,
Tenant may not elect to terminate this Lease if the damages to the Premises
were due to the act, omission, fault or neglect of Tenant or its employees,
agents or visitors. If any policy of insurance required to be obtained by
Tenant under this Lease covers any damage or loss which Landlord is required or
elects to repair under this Section 14.1, Tenant shall take such action as
may be necessary to collect the proceeds of such insurance relating to such
damage or loss and shall pay such proceeds to Landlord.

 

14.2                        Tenant
Reconstruction Obligation. Tenant shall be required to repair or
replace at its sole cost and expense Tenant’s trade fixtures, furniture,
equipment and other personal property in the Premises.

 

14.3                        Rent
Abatement. In the event of any repair, reconstruction and
restoration as provided in Sections 14.1, Tenant’s rent shall be equitably
abated proportionately with the degree to which Tenant’s use of the Premises is
impaired commencing from the date of destruction and continuing during the
period of such repair, reconstruction or restoration, provided, however, that
there shall be no rent abatement whatsoever if either (i) the damage is due to
the act, omission, fault or neglect of Tenant or its employees, agents or
visitors or (ii) if the use and enjoyment of the Premises is not affected for
more than two (2) business days of operation.

 

14.4                        Notice
of Casualty. Tenant shall give prompt notice to Landlord of any
casualty or accident of which Tenant is aware occurring in the Premises or in
the Building and any defects therein or damages thereto or in any fixtures or
equipment.

 

SECTION 15.                             EMINENT DOMAIN

 

15.1                        Partial
Taking. If there is a taking of or damage to less than the
entire Premises, then with respect to that portion of the Premises not taken or
damaged, this Lease shall continue in effect and the Basic Annual Rent and
Tenant’s Share shall be reduced or adjusted proportionately. Landlord shall, as
promptly as possible, restore, repair and replace that portion of the Premises,
Building or Common Areas not so taken or damaged to a complete architectural
unit or units for the use and occupancy of Tenant and other tenants and, as
nearly as possible, to the condition existing prior to the taking or damaging.
Landlord shall not be required to expend

 

17

 

for such work an amount in excess of the amount received by Landlord as
damages for the part of the Property so taken less amounts required to be paid
by Landlord to mortgage lenders. Notwithstanding the foregoing, Landlord or
Tenant may elect, within thirty (30) days after the taking or damaging, to
terminate this Lease if (i) twenty percent (20%) or more of the Premises or
Building are taken or damaged, or (ii) so much of the parking areas of the
Property are taken or damaged that Tenant cannot be assured the use of the
number of parking spaces required by municipal code, considering the similar
usage of other tenants at the Property. In order to terminate this Lease,
Landlord shall deliver written notice to Tenant, which notice shall specify a
termination date at least thirty (30) days and not more than ninety (90) days from
the date thereof. In such event, Landlord shall not be required to repair,
restore or reconstruct the Premises.

 

15.2                        Allocation
of Award. The entire award or compensation, including interest, whether
for a total or partial taking or damaging or for a diminution in the value of
Tenant’s leasehold or Landlord’s fee or other interest, shall belong to and be
the property of Landlord, and Tenant hereby assigns to Landlord all of Tenant’s
interest in any award. Tenant shall have the right to prove in the proceedings
related to the taking or damaging loss of, and to receive any separate award
which may be made for damage to or condemnation of, Tenant’s equipment, trade
fixtures, furniture and furnishings, and for relocation costs and goodwill.

 

15.3                        Definitions.
As used in this Section 15, (i) the term “taking or damaging” shall
include inverse condemnation, or any transfer made in avoidance of the power of
eminent domain; and (ii) the “award” shall include all monies awarded for a
taking or damaging occurring before or after the commencement of litigation
proceedings.

 

SECTION 16.                             ASSIGNING - MORTGAGING - SUBLETTING -
CHANGE IN OWNERSHIP

 

16.1                        No
Transfer or Sharing Without Consent. Tenant shall not assign, sublet,
enter into a license or concession agreement for, hypothecate or otherwise
divest itself of this Lease or any of its rights hereunder (collectively, a
“transfer of rights”) or permit any third party or parties other than Tenant,
its authorized agents, employees, invitees and visitors to occupy the Premises
or any portion thereof (collectively, a “sharing of the Premises”) without
Landlord’s prior written consent, which consent may be withheld in Landlord’s
sole discretion. Unless Landlord expressly agrees otherwise, Tenant shall not
be relieved of any of its duties or obligations under this Lease as a result of
any transfer of rights or sharing of the Premises, regardless whether consented
to by Landlord. Such prohibition against the transfer of rights shall include
any transfer of rights by operation of law. Any attempted transfer of rights or
sharing of the Premises without Landlord’s advance written consent shall
constitute a default hereunder and shall be void ab initio so as not to confer
any rights upon any third person. Consent to any transfer of rights shall not
operate as a waiver of the necessity for consent to any subsequent transfer of
rights, and the terms of such consent shall be binding upon any person holding
by, under, or through Tenant. The provisions of Section 16.2 hereof
constitute the sole means by which such consent may be requested. If a transfer
of rights occurs or if there is a sharing of the Premises, Landlord may collect
rent and other charges from such assignee or other party, and apply the amount
collected to the rent and other charges reserved hereunder, but such collection
shall not constitute consent or waiver of the necessity of consent to such
transfer or sharing of the Premises, nor shall such collection constitute the
recognition of such assignee, sublessee, or other party as the Tenant hereunder
or a release of tenant from the further performance of all of the covenants and
obligations of Tenant herein contained.

 

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Any transfer of this Lease or of Tenant’s rights hereunder by merger,
consolidation, transfer of assets or liquidation shall constitute a transfer of
rights. In the event that Tenant is a corporation, an unincorporated
association, or a partnership, the transfer, assignment or hypothecation of any
stock or interest in such corporation, association or partnership in the
aggregate in excess of 49% of the total outstanding stock or interest shall be
deemed a transfer of rights.

 

Related Entity: Notwithstanding the provisions of Section 16.1
above, Tenant may assign this Lease or sublet the Premises, or any portion
thereof, without Landlord’s consent to any entity resulting from a merger or
consolidation of Tenant with any other entity, (ii) any entity purchasing all
or substantially all of the stock or assets of Tenant, (iii) any entity
succeeding to all or substantially all of the business and all or substantially
all of the assets of Tenant, or (iv) any entity which controls, is controlled
by or is under common control with Tenant, provided that (a) the assignee or
sublessee assumes, in full, the obligations of Tenant under this Lease, (b)
Tenant remains fully liable under this Lease, (c) the use of the Premises under
Section 6 remains unchanged, and (d) Landlord shall have received an
executed copy of the assignment or sublease on or before its effective date (e)
the net worth of the entity is equal or greater than Tenant as of the effective
date. No change of stock ownership or control or partnership change,
assignment, transfer or hypothecation of any partnership or other ownership
interest in Tenant shall constitute an assignment hereunder.

 

16.2                        Procedure
for Requesting Consent. If Tenant desires at any time to effect a
transfer of rights or sharing of the Premises it must first notify Landlord in
writing of its desire to do so and shall submit in writing to Landlord (i) the
name of the third party concerned; (ii) the nature of the third party’s
business proposed to be carried on in the Premises; (iii) the terms and
provisions of the proposed transfer of rights or sharing of the Premises; and
(iv) such financial and business information as Landlord may reasonably request
concerning the third party. Submission to Landlord by Tenant of an executed
sublease or other document purporting to make a transfer of rights or sharing
of the Premises subject to Landlord’s approval shall constitute a request for
Landlord’s consent under this Section 16.2.

 

16.3                        Conditions
of Authorization. As conditions precedent to Landlord’s consent
to Tenant’s transfer of rights or sharing of the Premises, Landlord may
require, without limitation, any or all of the following:

 

(a)          Tenant shall reimburse Landlord for
Landlord’s reasonable attorneys’ fees incurred in connection with the review,
processing and documentation of such request;

 

(b)         If Tenant’s transfer of rights or sharing of
the Premises provides for the receipt by, on behalf or on account of Tenant of
any consideration of any kind whatsoever (including, but not by way of
limitation, a premium rental for a sublease or lump sum payment for an
assignment) in excess of the rental and other charges due Landlord under this
Lease, Tenant shall pay one hundred percent (100%) of said excess to
Landlord when such consideration is received by Tenant;

 

(c)          In the event of a sublease or sharing of the
Premises, the third party shall agree in writing that in the event Landlord
gives such third party notice that Tenant is in default under this Lease, such
third party shall thereafter make all payments otherwise due Tenant directly to
Landlord, which payments will be

 

19

 

received by Landlord without any liability of Landlord except to credit
such payment against those due under the Lease, and any such third party shall
agree to attorn to Landlord or its successors and assigns should this Lease be
terminated for any reason; provided however that in no event shall Landlord or
its successors or assigns be obligated to accept such attornment;

 

(d)         In the case of an assignment of this Lease,
the assignee shall agree in writing to assume, be bound by and perform all of
the terms, covenants and conditions of this Lease;

 

(e)                                  Tenant
shall not then be in default hereunder in any respect; and

 

(f)            Tenant shall deliver to Landlord one
executed copy of any and all written instruments evidencing or relating to
Tenant’s transfer of rights or sharing of the Premises.

 

16.4                        Right
of Termination. Notwithstanding any other provision hereof, in lieu of
giving such consent, Landlord may at its election, elect to (i) construe such
proposed transfer of rights or sharing of the Premises as an offer to Landlord
on the same terms and conditions as with the third party, which offer may be
accepted at any time within thirty (30) days after receipt thereof, and if so
accepted, such transfer of rights to or sharing of the Premises with Landlord
shall automatically be deemed consummated on all the terms and provisions set
forth in such proposed transfer (except that Landlord may further assign or
otherwise transfer such interest without Tenant’s review or consent) or (ii)
terminate this Lease (or in the case of a proposed subletting or assignment of
a portion of the Premises, elect to terminate this Lease as respects that
portion) upon thirty (30) days’ prior notice and release Tenant from any
liability under this Lease (as to that portion of the Premises involved)
accruing after the effective date of such termination.

 

SECTION 17.                             SUBORDINATION - ATTORNMENT

 

17.1                        Subordination.
At Landlord’s request, Tenant agrees to subordinate this Lease to the lien of
any mortgages or deeds of trust in any amount hereafter placed on or against
the Property and if Landlord elects to make any such lien subordinate to this
Lease, Tenant hereby consents and agrees to such election. Tenant agrees that
at the request of Landlord at any time and from time to time Tenant shall
execute and deliver to Landlord an instrument, in form reasonably acceptable to
Landlord, evidencing such subordination. Tenant shall not subordinate this
Lease to any such lien except at the request or with the written consent of
Landlord. Tenant, at the written request of any person that acquires Landlord’s
interest in this Lease by sale, assignment, transfer, foreclosure, termination
of a ground lease or otherwise, shall attorn to such person and its successors
and assigns.

 

17.2                        Quiet
Enjoyment. Upon Tenant paying the Basic Annual Rent and all
Additional Rent and performing all of Tenant’s obligations under this Lease,
Tenant may peacefully and quietly enjoy the Premises during the Lease Term as
against all persons or entities lawfully claiming by or through Landlord,
subject, however, to the provisions of this Lease and to any mortgages
encumbering the Property.

 

SECTION 18.                             DEFAULT

 

The occurrence of any of the following shall constitute Tenant’s breach
of and default under this Lease:

 

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(a)          The failure by Tenant to make any payment of
Basic Annual Rent, Additional Rent or pay other sums, taxes and insurance
premiums as and when due.

 

(b)         Failure by Tenant in the prompt and complete
performance and observance of any other express or implied covenant, agreement
or obligation of Tenant contained in this Lease and the continuation of such
failure for a period of twenty (20) days after notice thereof from Landlord to
Tenant, provided, however, that if the nature of Tenant’s default is such that
more than twenty (20) days are reasonably required for its cure, then Tenant
shall not be deemed to be in default if Tenant shall commence such cure within
said twenty (20) day period and thereafter diligently prosecute such cure to
completion.

 

(c)          Any attachment or levy of execution or
similar seizure of the Premises or Tenant’s fixtures or other property at the
Premises or any foreclosure, repossession or sale under any chattel mortgage,
security agreement or conditional sales contract covering Tenant’s fixtures or
other property at the Premises; or the filing by Tenant or any guarantor of
this Lease of, or consent to, any petition under any chapter of the Bankruptcy
Code or any state proceeding relating to insolvency or protection from
creditors, or the adjudication of Tenant or of any guarantor of this Lease as a
bankrupt or insolvent; or the appointment of a receiver or trustee to take
possession of all or substantially all of the assets of Tenant or of any
guarantor of this Lease or a general assignment by Tenant or of any guarantor
of this Lease for the benefit of creditors; or any other action taken or
consented to by Tenant or by any guarantor of this Lease under any state or
federal insolvency or bankruptcy act; or the involuntary filing of a bankruptcy
petition or state insolvency action by Tenant or any guarantor of this Lease or
appointment of a trustee or receiver for Tenant or any guarantor of this Lease,
and the same is not dismissed or stayed within thirty (30) days.

 

(d)                                 The
vacation or abandonment of the Premises by Tenant.

 

SECTION 19.                             REMEDIES

 

19.1                        Landlord’s
Remedies. In the event of default by Tenant under this Lease, Landlord
may, at its option: (1) Terminate Tenant’s right to possession of the Premises
because of such breach and recover from Tenant all damages it may incur by
reason of Tenant’s default, including, without limitation, the worth at the
time of the award of the amount by which the unpaid rent for the balance of the
Lease Term after the time of award exceeds the amount of such rental loss that
Tenant proved could be reasonably avoided; or (2) Not terminate Tenant’s right
to possession because of such breach, but continue this Lease in full force and
effect, in which event Landlord may enforce all rights and remedies hereunder,
including without limitation the right to recover the Basic Annual Rent and
Additional Rent as such becomes due. In either event Landlord may reenter the
Premises and remove all persons and property from the Premises, storing said
property in a public place, warehouse, or elsewhere at the cost of, and for the
account of, Tenant, all without service of notice or resort to legal process
and without being deemed guilty of or liable in trespass. No such reentry or
taking possession of the Leased Premises by Landlord shall be construed as an
election on its part to terminate this Lease unless a written notice of such
intention is given by landlord to Tenant. No such ‘action by Landlord shall be
considered or construed to be a forcible entry. In addition to, and not in lieu
of, any of the remedies provided in this Section 19.1, Landlord shall be
entitled to take any other action and

 

21

 

pursue any other remedy provided at law, in equity or under this Lease.
No reentry to, taking possession of the Premises or other action by Landlord
upon or following the occurrence of any breach or default by Tenant shall be construed
as an election by Landlord to terminate this Lease unless Landlord provides
Tenant written notice of such termination.

 

Should Landlord reenter, as provided above, or should it take
possession pursuant to legal proceedings or pursuant to any notice provided for
by Law, and whether or not it terminates this Lease, it may be necessary to
relet the Leased Premises. Landlord may relet the same or any part thereof for
such term or terms (which may be for a term extending beyond the term of this
Lease) and at such rental or rentals and upon such other terms and conditions
as Landlord in its sole discretion may deem advisable. Upon each such reletting
all rentals received by the Landlord from such reletting shall be applied,
first, to the payment of any costs and expenses of such reletting, including
brokerage fees and attorney’s fees and costs of any alterations and repairs;
second, to the payment of any indebtedness other than rent due hereunder from
Tenant to Landlord; third, to the payment of rent due and unpaid hereunder, and
the residue, if any, shall be held by Landlord and applied in payment of future
rent as the same may become due and payable hereunder. If such rentals received
from such reletting during any month shall be less than that to be paid during
such month by Tenant hereunder, Tenant shall pay any such deficiency to
Landlord. Such deficiency shall be calculated and paid monthly.

 

19.2                        Assignment
of Subrents. As additional security for Tenant’s performance of
its obligations hereunder, Tenant hereby assigns to Landlord the right to
receive the rents, issues, profits or other payments received under a transfer
of rights or sharing of the Premises by Tenant, reserving unto Tenant the right
prior to any breach or default hereunder to collect and retain said rents,
issues and profits as they become due and payable. Nothing in this
Section 19.2 shall be construed as permitting any transfer of rights or
sharing of the Premises contrary to Section 16.

 

19.3                        Landlord’s
Cure of Tenant’s Default. If at any time during the term hereof
Tenant fails, refuses or neglects to do any of the things herein provided to be
done by Tenant, Landlord shall have the right but not the obligation to do the
same, but at the cost and for the account of Tenant. The amount of any money so
expended or obligations so incurred by Landlord together with interest thereon
at the lesser of eighteen percent (18%) per annum or the maximum interest rate
permitted by law shall be repaid to Landlord immediately upon demand therefor, and
unless so paid shall be added to the next monthly payment coming due hereunder
and shall be payable as rent.

 

19.4                        Interest
and Charges on Past Due Obligations. Any amount due from Tenant to
Landlord hereunder which is not paid when due shall bear interest at the lesser
of eighteen percent (18%) per annum or the maximum lawful rate of interest from
the due date until paid, unless otherwise specifically provided herein. In
addition to such interest, if an installment of Basic Annual Rent is not paid
within five (5) days after the same is due, a late charge equal to four percent
(4%) of the amount overdue or One Hundred Dollars (S100), whichever is greater,
shall be assessed.

 

SECTION 20.                             RULES AND REGULATIONS

 

Tenant shall faithfully observe and strictly comply with the rules and
regulations set forth in Exhibit “E” hereto. Said rules and regulations
may be deleted, amended or supplemented by Landlord from time to time with such
other rules and regulations as Landlord may reasonably adopt for the safety,
care, and cleanliness of the Building and the Property and

 

22

 

the facilities thereof, or the preservation of good order therein.
Landlord shall not be liable to Tenant for violation by any other tenant in the
Building of any such rules and regulations, or for breach of any covenant or
condition in any lease. Landlord has not represented and is not hereby
representing that all tenants in the Building are or shall be bound to any part
or all of such rules and regulations.

 

SECTION 21.                             SURRENDER OF PREMISES

 

Upon the expiration or sooner termination of the term of this Lease,
Tenant shall surrender the Premises in as good condition as when received,
reasonable wear and tear excepted, broom clean and free of trash and rubbish,
and free from all tenancies or occupancies by any person. Tenant shall remove
all trade fixtures, furniture, equipment and other personal property installed
in the Premises prior to the expiration or earlier termination of this Lease.
Tenant shall, at its own cost, completely repair any and all damage to the
Premises and the Building resulting from or caused by such removal. If Tenant
fails to remove such items upon the expiration of this Lease, the same shall be
deemed abandoned and shall become the property of Landlord. Landlord shall not
be deemed to have accepted any surrender of the Premises to Landlord prior to
the end of the Lease Term, unless Landlord has agreed and acknowledged, in
writing, that it has accepted such surrender.

 

SECTION 22.                             HOLDING OVER

 

Should Tenant, with or without Landlord’s written consent, hold over
after the expiration of this Lease, Tenant shall pay, in advance, monthly rent
at the rate of one hundred fifty percent (150%) of one month’s Basic Annual
Rent, plus all Additional Rent provided by this Lease.

 

SECTION 23.                             NOTICES

 

Any notice required or permitted to be given hereunder shall be in
writing and shall be deemed effective either upon personal delivery, or receipt
thereof when deposited in the United States mail, registered or certified
delivery, return receipt requested, addressed to the Tenant at the Premises or
to Landlord or Tenant at the location stated in Item 13 of the Basic Lease
Provisions. Either party may specify a different address for notice purposes in
the manner aforesaid. A copy of all notices to be given to Landlord hereunder
shall be concurrently transmitted by Tenant to any additional party hereafter
designated by a notice from Landlord to Tenant. Notwithstanding the foregoing,
if either party refuses to accept or sign the return receipt for any notice
tendered to it pursuant to this Section 23, such notice shall be deemed
effective when tendered.

 

SECTION 24.                             ESTOPPEL CERTIFICATES

 

Landlord or Tenant shall, at any time and from time to time, upon not
less than ten (10) days’ prior notice from the other party, execute,
acknowledge and deliver to the party requesting a statement in substantially
the form and substance as the Estoppel Certificate attached hereto as Exhibit
“F”, plus other information reasonably requested by a potential purchaser
or mortgagee. Landlord’s or Tenant’s failure to deliver such statement within
such time shall, at the option of Landlord or Tenant, constitute a default
under this Lease and, in any event, shall be conclusive upon Landlord or Tenant
that this Lease is in full force and effect without modification except as may
be represented by Landlord or Tenant in any such certificate prepare by
Landlord or Tenant and delivered to Landlord or Tenant for execution.

 

23

 

SECTION 25.                             LIABILITY OF LANDLORD

 

In the event of any transfer or transfers of Landlord’s interest in the
Premises, other than a transfer for security purposes only, Landlord shall be
automatically relieved of any and all obligations and liabilities hereunder
from and after the date of such transfer, it being intended hereby that the
covenants and obligations contained in this Lease on the part of Landlord shall
be binding on Landlord only during and in respect of its ownership. The
transferee of Landlord’s interest in this Lease shall be deemed automatically
without further agreement to have assumed all of Landlord’s duties and
obligations hereunder. Tenant agrees to look solely to Landlord’s estate and
interest in the Property for the satisfaction of any remedy of Tenant for the
collection of a judgment (or other judicial process) requiring the payment of
money by Landlord in the event of any default by Landlord hereunder, and no
other property or assets of Landlord or of any partner, officer, director,
shareholder, agent or employee 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 or occupancy of the Premises.

 

SECTION 26.                             LANDLORD’S INABILITY TO PERFORM

 

This Lease and the obligations of Tenant hereunder shall not be
affected or impaired because Landlord is unable to fulfill any of its obligations
hereunder or is delayed in doing so, if such inability or delay is caused by
reason of the unavailability of materials, strike or other labor troubles or
any other cause beyond the reasonable control of Landlord. Landlord shall not
be deemed to be in default in the performance of any obligation required to be
performed by it hereunder unless and until it has failed to perform such
obligation within thirty (30) days after notice by Tenant to Landlord
specifying wherein Landlord has failed to perform such obligation; provided,
however, that if the nature of Landlord’s obligation is such that more than
thirty (30) days are required for its performance, then Landlord shall not be
deemed to be in default if it shall commence such performance within such
thirty (30) day period and thereafter prosecute same to completion.

 

SECTION 27.                             ATTORNEYS’ FEES

 

If Landlord or Tenant initiates any action to enforce any provision of
this Lease as a result of any breach or default on the part of Landlord or
Tenant, the losing party shall pay to the prevailing party all costs and
expenses, including reasonable attorneys’ fees, incurred therein by Landlord or
Tenant.

 

SECTION 28.                             GENERAL PROVISIONS

 

28.1                        Headings
and Definitions. The Section headings contained in this Lease
are for convenience of reference only and do not in any way govern the
construction thereof. The terms “Landlord” and “Tenant” as used herein shall
include the plural as well as the singular, and the neuter shall include the
masculine and feminine genders. The words “person” and “persons” whenever used
shall include individuals, firms, associations and corporations.

 

28.2                        Covenants
and Agreements - Time of the Essence. Each of Tenant’s covenants and
agreements herein contained are independent and not dependent on Landlord’s
performance of its obligations hereunder, and the time of the performance of
each is of the essence of this Lease.

 

24

 

28.3                        Successors
and Assigns. All of the covenants, conditions and provisions of this
Lease shall be binding upon and shall inure to the benefit of the parties
hereto and their respective heirs, personal representatives, successors and
assigns, subject to Section 16 hereof.

 

28.4                        Interpretation.
The language in all parts of this Lease shall be in all cases construed simply
according to its fair meaning, and not strictly for or against Landlord or
Tenant. Any provision of this Lease which shall prove to be invalid, void or
illegal shall in no way affect, impair or invalidate any other provision hereof
and such other provisions shall remain in full force and effect. This Lease may
be executed in any number of counterparts, each of which shall be an original
and all of which together shall constitute and be construed as one and the same
instrument. This Lease shall be governed by and construed in accordance with
the laws of the State of Utah. All Exhibits and addenda referenced or attached
hereto are incorporated herein by reference as though fully set forth herein.

 

28.5                        Waiver
and Default. No waiver by Landlord of any provision of this Lease shall
be deemed to be a waiver of any other provision hereof or of any subsequent
breach by Tenant of the same or any other provision. No delay on the part of
Landlord in exercising any of its rights hereunder shall operate as a waiver of
such rights or of any other right of Landlord, nor shall any delay, omission or
waiver on any one occasion be deemed a waiver of the same or any other right on
any other occasion, nor shall Landlord’s receipt from Tenant of any sum with
knowledge of any breach by Tenant of any of its covenants hereunder be deemed
to be a waiver of such breach. Neither Landlord’s failure to bill Tenant for
any rent or other sum payable hereunder as it becomes due hereunder, nor its
error in such billing or failure to provide any other documentation in
connection therewith, shall operate as a waiver of Landlord’s right to collect
any such rent or other sum payable hereunder which may have at any time become
due hereunder in the full amount to which Landlord is entitled pursuant to the
terms and provisions hereof. Landlord’s consent to or approval of any act by
Tenant requiring Landlord’s consent or approval, including approvals under
Section 16, shall not be deemed to render unnecessary the obtaining of
Landlord’s consent to or approval of any subsequent act of Tenant whether or
not similar to the act so consented to or approved. None of Landlord’s agents
shall have any power to accept the keys to the Premises prior to the termination
of this Lease, and the delivery of the keys to any such employee shall not
operate as a termination of this Lease or a surrender or Landlord’s acceptance
of the Premises.

 

28.6                        Entire
Agreement:  Amendments. This
Lease and the exhibits and any riders attached hereto constitute the entire
agreement between the parties hereto with respect to the subject matter hereof,
and no prior agreement or understanding pertaining to any such matter shall be
effective for any purpose. No provision of this Lease may be amended or
supplemented except by an agreement in writing signed by the party or parties
to be bound thereby.

 

28.7                        Building
Name. Landlord reserves the right to change the name of the Building
from time to time during the term of this Lease. Tenant shall not be allowed to
use the name, picture or representation of the Building, or words to that
effect, in connection with any business carried on in the Premises or otherwise
(except as Tenant’s address) without the prior written consent of Landlord.

 

28.9                        Brokers.
In connection with this Lease, Tenant warrants and represents that it has had
dealings only with the Brokers specified in Item 10 of the Basic Lease
Provisions and that it knows of no other person who is or might be entitled to
a commission, finder’s fee or other like payment in connection herewith and
does hereby indemnify and agree to hold Landlord

 

25

 

harmless from and against any and all loss, liability and expenses
including any attorneys’ fees that Landlord may incur should such warranty and
representation prove incorrect.

 

28.10                 No Option.
The submission of this Lease by Landlord, its agent or representative for
examination or execution by Tenant does not constitute an option or offer to
lease the Premises upon the terms and conditions contained herein or a
reservation of the Premises in favor of Tenant, it being intended hereby that
this Lease shall only become effective upon the execution hereof by Landlord
and delivery of a fully executed counterpart hereof to Tenant.

 

28.11                 Corporate
and Partnership Tenant. In the event Tenant is a corporation or a
partnership, the parties executing this Lease on behalf of Tenant hereby
covenant and warrant, individually and on behalf of Tenant, that Tenant is duly
organized and in good standing in the state of its incorporation or
organization and that all steps have been taken prior to the date hereof to
qualify Tenant to do business in Utah, that Tenant has duly authorized this
Lease by all requisite corporate or partnership action and that the persons
executing this Lease have been duly authorized by Tenant to do so on its
behalf.

 

28.12                 Recordation
of Lease. Neither this Lease nor any memorandum hereof shall be
recorded by Tenant.

 

28.13                 Multiple
Parties. If there is more than one person, firm, corporation,
partnership or other entity comprising Tenant, then (i) the term Tenant, as
used herein, shall include all of such persons, firms, corporations,
partnerships and other entities; (ii) each and every provision in this Lease
shall be binding on each and every one of them; (iii) each of them shall be
jointly and severally liable hereunder; (iv) Landlord shall have the right to
join one or all of them in any proceeding or to proceed against them in any order;
and (v) Landlord shall have the right to release any one or more of them
without in any way prejudicing its right to proceed against the others.

 

28.14                 No
Partnership. Landlord does not by this Lease, in any way or for
any purpose, become a partner or joint venturer of Tenant in the conduct of its
business or otherwise.

 

28.15                 Telecommunications
Equipment and HVAC. At any time during the Lease Term, subject to
availability, Tenant may install and maintain, at Tenant’s sole cost and
expense, telecommunication equipment and/or an HVAC unit (“HVAC”) upon the roof
of the Building, subject to the payment of the prevailing Building rates for
the same. Upon thirty (30) days prior notice from Tenant to Landlord, Landlord
shall designate areas on the roof of the Building or other areas of the
Property which Tenant may lease for the purpose of installation, operation and
maintenance of (I) the HVAC and (ii) a satellite antenna or other broadcasting
and receiving device and the telecommunications conduits, devices, fibreoptics
and electrical, coaxial and other connections necessary to connect the
transmission devices to the Premises (collectively, the “Telecommunications
Devices”). Tenant shall have the right to use the Building utilities located on
the roof of the Building for the operation of the Telecommunication Devices and
HVAC at Tenant’s sole cost and expense. Tenant shall have the right to access
the Telecommunication Devices and HVAC upon reasonable prior written notice to
Landlord, during business hours and subject to Landlord’s reasonable rules and
regulations. Upon the expiration or earlier termination of this Lease, or at
such time as Tenant elects to stop paying for the use of space for the
Telecommunication Devices and/or HVAC, Tenant shall remove, at its own cost and
expense, the Telecommunications Devices and HVAC and all related facilities
thereof. If Tenant shall fail to complete such removal and/or fail to repair
any damage caused

 

26

 

thereby, Landlord may do so and charge the cost thereof to Tenant as
Additional Rent. The physical appearance and size of the Telecommunication
Devices and HVAC shall be subject to Landlord’s reasonable approval and
Landlord may require Tenant to install screening around such equipment, at
Tenant’s sole cost and expense, as reasonably designated by Landlord. All
Telecommunication Devices and the HVAC must be compatible with the Building’s
systems and shall not impair window washing or the use of chiller units, the
cooling tower or emergency generator, elevator machine rooms, helipads,
ventilation shafts, if any, or any other parts of the Building. The plans and
specifications for the Telecommunication Devices and HVAC and all working
drawings for the installation of the Telecommunication Devices and HVAC shall
be subject to the reasonable prior written approval of Landlord and Tenant
obtaining any and all required permits and governmental approvals, at Tenant’s
sole cost and expense. If Tenant elects to install Telecommunication Devices or
HVAC, Tenant’s indemnity obligation and waiver set forth in Section 12 of
this Lease shall also cover the use and installation of the Telecommunication
Devices and HVAC. In addition, Tenant shall procure and maintain at Tenant’s
sole cost and expense, such insurance, in addition to the Qinsurance required
to be maintained by Tenant under this Lease, in connection with the
Telecommunication Devices as reasonably determined by Landlord. The
Telecommunication Devices and the HVAC, and the installation thereof shall
comply with all applicable laws.

 

Notwithstanding the proceeding, Landlord hereby agrees to provide upon
the commencement of this Lease, a suitable location for Tenant’s back-up
generator, HVAC and conduit allowing Tenant to cross connect with the
fiberoptic providers on the Property.

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  PARKSIDE SALT LAKE CORPORATION

  	
   

  	
  ADVANCED TELECOMMUNICATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   /s/Gerald [illegible]

  	
   

  	
  By:

  	
  /s/Satish C. Tiwari

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
    Asset Manager

  	
   

  	
  Its:

  	
    V.P. Engineering and Network Implementation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
    1-11-2000

  	
   

  	
  Date:

  	
    12/30/1999

  
							

 

27

 

EXHIBIT “A”

 

LEGAL DESCRIPTION
OF PROPERTY

 

PARCEL NO. 1

 

Beginning at the northwest corner of Lot 5, Block 56, Plat “A”, Salt
Lake City Survey, and running thence east 231.00 feet; thence south 231.00
feet; thence west 66.00 feet; thence south 99.00 feet; thence west 66.00 feet;
thence north 50.33 feet; thence west 99.00 feet; thence north 279.67 feet to
the point of the beginning.

 

Contains 64,713.33 sq.ft.

or 1.4856 Acres

 

PARCEL NO. 2

 

Beginning at a point east 51.00 feet and south 154.00 feet from the
northwest corner of Lot 7, Block 56, Plat “A” Salt Lake City Survey, and
running thence south 64.83 feet; thence west 51.00 feet; thence south 61.67
feet; thence west 81.00 feet; thence 126.50 feet; thence east 132.00 feet to
the point of beginning.

 

Contains 13.552.83 sq. ft

or  0.3111 Acres

 

28

 

EXHIBIT
“B”

 

 

29

 

EXHIBIT “C”

 

MEMORANDUM
OF COMMENCEMENT DATE AND RENTABLE AREA

 

	
  Commencement Date:

  	
   

  	
   

  	
   

  	
   

  
	
  Rentable Area:

  	
   

  	
  square feet

  
	
  Basic Annual Rent: $

  	
   

  	
  Year 1

  
	
  $

  	
   

  	
  Year 2

  
	
  $

  	
   

  	
  Year 3

  
	
  $

  	
   

  	
  Year 4

  
	
  $

  	
   

  	
  Year 5

  
	
  $

  	
   

  	
  Year 6

  
	
  $

  	
   

  	
  Year 7

  
	
  $

  	
   

  	
  Year 8

  
	
  $

  	
   

  	
  Year 9

  
	
  $

  	
   

  	
  Year 10

  

 

(LANDLORD AND TENANT
HEREBY AGREE that, upon execution of this Exhibit
“C”, the determination of “Rentable Area” set forth herein shall be binding
upon the parties throughout the term of the Lease, regardless of any
discrepancies which may be shown by subsequent measurements.)

 

 

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  
	
  PARKSIDE SALT LAKE CORPORATION 

  	
  ADVANCED TELECOMMUNICATIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
										

 

30

 

EXHIBIT
“D”

 

TENANT WORK LETTER

 

PARKSIDE TOWER

215 SOUTH STATE

SALT LAKE CITY, UTAH

 

This “Work Letter Agreement” shall set forth the terms and conditions
relating to the construction of certain tenant improvements in the Premises.
All references in this Work Letter Agreement to Sections of the Lease shall
mean the relevant portion of Sections 1 through 28 of that certain Office
Building Lease to which this Work Letter Agreement is attached as Exhibit “D”
and of which this Work Letter Agreement forms a part, and all references in
this Work Letter Agreement to Sections of “this Work Letter Agreement” shall
mean the relevant portion of Sections 1 through 6 of this Work Letter
Agreement.

 

SECTION 1

 

BASE
BUILDING

 

1.1                                 Base
Building. Landlord owns and, through its advisors, agents, representatives
and employees, operates the base building in which the Premises is located
(collectively, the “Base Building”). Except as otherwise specifically provided
in this Lease, Tenant shall and does hereby accept the Base Building in its
presently existing, as-is condition.

 

SECTION 2

 

TENANT
IMPROVEMENTS

 

2.1                                 Tenant
Improvement Allowance. Tenant shall be entitled to a one-time tenant
improvement allowance (the “Tenant Improvement Allowance”) in the amount of
$10.00 per usable square foot of the Premises or $57,960.00 for the costs
relating to improvements made to the Premises (collectively, the “Tenant
Improvements”). In no event, however, shall Landlord be obligated to make
disbursements pursuant to this Work Letter Agreement in a total amount which
exceeds the Tenant Improvement Allowance. To the extent the Tenant Improvement
Allowance exceeds the cost of the Tenant Improvements, Landlord shall be
entitled to keep and retain that portion of the Tenant Improvement Allowance
that exceeds the Tenant Improvements and Tenant shall not be entitled to the
same. Additionally, all cost over and above the Tenant Improvement Allowance
shall be the sole responsibility of Tenant.

 

2.2                                 Disbursement
of the Tenant Improvement Allowance. Except as otherwise set forth in this
Work Letter Agreement and subject to Section 2.1 of this Work Letter
Agreement, the Tenant Improvement Allowance shall be disbursed by Landlord upon
the following: (i) substantial completion of the Tenant Improvements, (ii) presentment
of invoice(s) from Tenant, and (iii) lien waivers from all contractors and/or
subcontractors. The Tenant Improvement Allowance shall be for costs related to
the Tenant Improvements and for the “Landlord Supervision Fee,” as that term is
defined in Section 4.3.2 of this Work Letter Agreement (collectively, the
“Tenant Improvement Allowance Items”).

 

31

 

SECTION 3

 

CONSTRUCTION
DRAWINGS

 

3.1                                 Selection
of Architect/Construction Drawings. Tenant shall retain the architect/space
planner designated by Landlord (the “Architect”) to prepare the “Construction
Drawings,” as that term is defined in this Section 3.1. Tenant
shall retain the engineering consultants designated by Landlord (the
“Engineers”) to prepare all plans and engineering working drawings relating to
the structural, mechanical, electrical, plumbing, HVAC, lifesafety, and
sprinkler work of the Tenant Improvements. The plans and drawings to be
prepared by Architect and the Engineers hereunder shall be known collectively
as the “Construction Drawings.” All Construction Drawings shall comply with the
drawing format and specifications as determined by Landlord, and shall be
subject to Landlord’s approval, which shall not be unreasonably withheld or delayed.
Tenant and Architect shall verify, in the field, the dimensions and conditions
as shown on the relevant portions of the base Building plans, and Tenant and
Architect shall be solely responsible for the same, and Landlord shall have no
responsibility in connection therewith. Landlord’s review of the Construction
Drawings as set forth in this Section 3, shall be for its sole
purpose and shall not imply Landlord’s review of the same, or obligate Landlord
to review the same, for quality, design, Code compliance or other like matters.
Accordingly, notwithstanding that any Construction Drawings are reviewed by
Landlord or its space planner, architect, engineers and consultants, and
notwithstanding any advice or assistance which may be rendered to Tenant by Landlord
or Landlord’s space planner, architect, engineers, and consultants, Landlord
shall have no liability whatsoever in connection therewith and shall not be
responsible for any omissions or errors contained in the Construction Drawings,
and Tenant’s waiver and indemnity set forth in this Lease shall specifically
apply to the Construction Drawings.

 

3.2                                 Final
Space Plan. Tenant and the Architect shall prepare the final space plan for
Tenant Improvements in the Premises (collectively, the “Final Space Plan”),
which Final Space Plan shall include a layout and designation of all offices,
rooms and other partitioning, their intended use, and equipment to be contained
therein, and shall deliver the Final Space Plan to Landlord for Landlord’s
approval, which shall not be unreasonably withheld or delayed

 

3.3                                 Final
Working Drawings. Tenant, the Architect and the Engineers shall complete
the architectural and engineering drawings for the Premises, and the final
architectural working drawings in a form which is complete to allow
subcontractors to bid on the work and to obtain all applicable permits
(collectively, the “Final Working Drawings”) and shall submit the same to
Landlord for Landlord’s approval, which shall not be unreasonably withheld or
delayed

 

3.4                                 Permits.
The Final Working Drawings shall be approved by Landlord (the “Approved Working
Drawings”) prior to the commencement of the construction of the Tenant
Improvements. “Contractor” as identified in Section 1 above and as
that term is defined in Section 4.1 below, shall immediately submit
the Approved Working Drawings to the appropriate municipal authorities for all
applicable building permits necessary to allow Contractor, to commence and
fully complete the construction of the Tenant Improvements (the “Permits”),
and, in connection therewith, Contractor shall coordinate with Landlord in
order to allow Landlord, at its option, to take part in all phases of the
permitting process and shall supply Landlord, as soon as possible, with all
plan check numbers and dates of submittal and obtain the Permits.
Notwithstanding anything to the contrary set forth in this Section 3.4,
Tenant hereby agrees that neither Landlord nor Landlord’s consultants shall be
responsible for obtaining any building permit or certificate of occupancy for
the Premises and that the obtaining of the same shall be Contractor’s
responsibility; provided however that Landlord shall, in any event, cooperate
with Contractor in executing permit applications and performing other
ministerial acts reasonably necessary to enable Contractor to obtain any such
permit or certificate of occupancy. No

 

32

 

changes, modifications or alterations in the Approved Working Drawings
may be made without the prior written consent of Landlord, which shall not be
unreasonably withheld or delayed

 

SECTION 4

 

CONSTRUCTION OF
THE TENANT IMPROVEMENTS

 

4.1                                 Contractor.
Tenant shall select one (1) or more contractors (the “Bidding Contractors”)
from the list of approved contractors provided Tenant by Landlord, to bid or
quote on the construction of the Tenant Improvements.

 

4.2                                 Cost
Proposal. Tenant shall solicit bids or quotes from the Bidding Contractors
for the construction of the Tenant Improvements, which cost proposals or quotations
shall include, as nearly as possible, the cost of all Tenant Improvement
Allowance Items to be incurred by Tenant in connection with the construction of
the Tenant Improvements. Tenant shall approve and select the cost proposal(s)
or quotations (collectively, “Cost Proposal(s)”) of the Bidding Contractor(s)
whom Tenant elects to retain to construct the Tenant Improvements
(“Contractor(s)”) and Tenant shall deliver originals or copies of the selected
Cost Proposal(s) and notice of its selection of the Contractor(s) to Landlord
within five (5) business days of the receipt of the cost proposals. Thereafter,
Tenant shall be released to purchase the items set forth in the Cost
Proposal(s) and to commence the construction relating to such items.

 

4.3.2                        Tenant’s
Retention of Contractor. Tenant shall independently retain the
Contractor(s), to construct the Tenant Improvements and Landlord shall
supervise the construction by the Contractor(s), and Tenant shall pay (and/or
the Tenant Improvement Allowance shall be charged) a construction supervision
and management fee (“Landlord Supervision Fee”) to (and/or for) Landlord in an
amount equal to the product of (i) five (5%) percent of the Tenant
Improvements.

 

Contractor’s Warranties and Guaranties. Tenant
hereby waives all claims against Landlord relating to, or arising out of the
construction of, the Tenant Improvements.

 

4.3.4                        Tenant’s
Covenants. Tenant hereby indemnifies Landlord for any loss, claims, damages
or delays arising from the actions of Architect on the Premises or in the
Building. Within ten (10) days after completion of construction of the Tenant
Improvements, Tenant shall cause Contractor and Architect to cause a Notice of
Completion to be recorded in the office of the County Recorder of the county in
which the Building is located in accordance with any successor statute and
furnish a copy thereof to Landlord upon recordation, failing which, Landlord
may itself execute and file the same on behalf of Tenant as Tenant’s agent for
such purpose. In addition, immediately after the Substantial Completion of the
Premises, Tenant shall have prepared and delivered to the Building a copy of
the “as built” plans and specifications in reproducible form (including all
working drawings) for the Tenant Improvements.

 

SECTION 5

 

MISCELLANEOUS

 

6.1                                 Tenant’s
Lease Default. Notwithstanding any provision to the contrary contained in
this Lease, if an event of default as described in Section 18 of the
Lease, or a default by Tenant under this Work Letter Agreement, has occurred at
any time, then (i) in addition to all other rights and remedies granted to
Landlord pursuant to the Lease, Landlord shall have the

 

33

 

right to withhold payment of all or any portion of the Tenant Improvement
Allowance and/or Landlord may cause the Contractor(s) to cease the construction
of the Premises, and (ii) all other obligations of Landlord under the terms of
this Work Letter Agreement shall be forgiven until such time as such default is
cured pursuant to the terms of the Lease.

 

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  PARKSIDE SALT LAKE CORPORATION

  	
   

  	
  ADVANCED TELECOMMUNICATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   /s/Gerald [illegible]

  	
   

  	
  By:

  	
  /s/Satish C. Tiwari

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
    Asset Manager

  	
   

  	
  Its:

  	
    V.P. Engineering and Network Implementation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
    1-11-2000

  	
   

  	
  Date:

  	
    12/30/1999

  
							

 

34

 

Standard
Building Specifications/Finishes

 

I.                                         PARTITIONS

 

A.                                   Demising
Partitions:

1.                                       3
5/8” - 25 gauge metal studs at 16” on center.

2.                                       5/8” drywall,
one layer each side from floor slab to underside of structure. (One hour fire
rated assembly.)

3.                                       3
1/2” - Batt insulation in wall cavity (R11 rating).

4.                                       Partition to be
taped and finished smooth to receive paint. Penetrations through walls shall be
sealed and openings shall be fire rated as required by local building codes.

5.                                       The end of the
demising walls must occur at a building column or at a vertical window mullions
sealed off as detailed.

 

B.                                     Interior
Partitions:

1.                                       3
5/8” - 25 gauge metal studs at 16” on center.

2.                                       5/8”
drywall, one layer each side floor to ceiling.

3.                                       Partition
to be taped and finished smooth ready to paint.

4.                                       Interior
partitions that end into glazing or vertical mullion are to be finished as
shown.

5.                                       Partition
height from floor to lay-in ceiling.

6.                                       Options:

a.                                       Insulation
- fiberglass, batt

b.                                      Insulation
- sound attenuation, bat

 

II.                                     DOORS/FRAMES/HARDWARE

 

A.                                   Corridor
Door Assembly

1.                                       Doors
- Premium Grade - 3’-0” x 8’-4” x 1 3/4”, 1/3 hour rated.

a.                                       solid
core, plain sliced red oak, matching hardwood vertical edges.

b.                                      5-ply,
1/50” (min.) veneer, pre-machined

c.                                       Manufacturers:
Algoma Hardwoods, Eggers, and Weyerhauser

2.                                       Frames
- 18 gage, 1/3 hour rated, hollow metal frames painted to match stain finish
color.

3.                                       Side
light - 2’ wide per door leaf.

4.                                       Glazing
-

a.                                       1/4”
wired glass. (Diamond or square pattern subject to availability.)

b.                                      Size
of glass as selected from standard door types.

5.                                       Hinges
-

a.                                       Two
pairs of 4 1/2” x 4 1/2” ball bearing, butt hinges.

b.                                      Finish
to match locksets.

c.                                       Hager
1279 or Stanley FBB 179.

6.                                       Locksets
-

a.                                       Schlage
- Series “D”

(1)                                  Finish
- (Choose one)

(a) Satin chromium 626.

(b) Bright Brass 605

(2)                                  Trim
- (Choose one)

(a) Knob - Orbit

 

35

 

(b) Lever trim - Athens

7.                                       Stops
- Quality - Walls, 302 series, floor #431ES, finish to match lockset

8.                                       Door
closer -

a.                                       Type
Parallel arm.

b.                                      Finish
- to match locksets

c.                                       Manufacture:

(1)                                  Sargent
1251-UO

(2)                                  Norton
7400 series.

9.                                       OPTIONS:

a.                                       Additional
corridor doors same as above, minimum. (Door lite not required.)

b.                                      Dead
bolts - Schlage Series “B400” 6-pin cylinder

 

B.                                     Interior
Door Assembly

1.                                       Doors
- Premium Grade, 3’-0” x 8’-4” x 1 3/4”.

a.                                       Solid
core, plain sliced red oak, matching hardwood vertical edges

b.                                      5-ply
1/50” (min.) veneer, pre-machined

c.                                       Manufactures:
Algoma Hardwoods, Eggers, and Weyerhausers

2.                                       1”
(nominal) oak frame and casing stained and finished to match doors.

3.                                       Hinges
-

a.                                       Two
pairs of 4 1/2” x 4 1/2” butt hinges.

b.                                      Finish
- to match lockset finish.

c.                                       Hager
1279 or Stanley FBB 179.

4.                                       Latch/Trimset
-

a.                                       Schlage
- “MD” Designer series (Passage only - Roma)

(1)                                  Finish
- Bright Brass 605

(2)                                  Locking
function: Dead bolt

5.                                       Stops
- as manufactured by, Quality

a.                                       Walls
- 302 series.

b.                                      Floor
#431ES.

c.                                       Stainless
steel finish.

6.                                       Side
Lite - 2’ wide per door

7.                                       OPTIONS:

a.                                       Door
Closers

(1)                                  Type
Parallel arm

(2)                                  Finish
- to match lockset.

(3)                                  Sargent
1251-UO or Norton 7400 series.

 

III.                                 FINISHES:

 

A.                                   Painting
-

1.                                       One
coat of interior wall primer, tinted to match finish color.

2.                                       Two
coats of satin interior alkyd paint applied with a roller.

3.                                       Building
standard colors. (Pratt & Lambert, Accolade interior Semi-Gloss Latex,
Calibrated Colors IV or equal).

 

B.                                     Clear
Finish Over Stained Wood -

1.                                       Polyurathane,
two coats on stained hardwood.

 

C.                                     OPTIONS:

1.                                       Wall
Coverings

 

36

 

a.                                       Paneling
- Solid wood stained to match color scheme.

b.                                      Vinyl
Wall Covering - 13/oz/sq. yd. minimum.

c.                                       Fabric
wall covering

(1)                                  100%
Marquesa Lana.

(2)                                  13.2
oz/sq. yd. minimum.

d.                                      Others
as approved by owner.

 

IV.                                 FLOOR
COVERING

 

A.                                   Carpet
-

1.                                       Weight
- 36 oz minimum.

2.                                       Style
- Cut pile, 100% Techni-lon nylon.

3.                                       10
year wear warranty.

4.                                       Manufacturer
- Charleston Carpets

a.                                       Belvedere.

b.                                      Harcourt.

5.                                       Colors
- See samples for Building Standard Colors Allowance:

 

B.                                     Floor
tile - (Reception, Lobby areas.)

1.                                       12
x 12 x 3/8 marble, ceramic, or stone tiles.

 

C.                                     Vinyl
Composition Tile -

1.                                       Manufacturer
- Armstrong.

a.                                       Imperial

 

D.                                    Option:

 

1.                                       Carpet
border

a.                                       Manufacturer
and choices same as above.

2.                                       Pad
- 5/16” Steiner-Liff “Nova” pad, 6.5# per cubic foot.

3.                                       Hardwood
flooring - Type and color as approved.

4.                                       Carpet accents
or upgrades must meet or exceed minimum requirement of standard as approved by
owner.

 

V.                                     Base

 

A.                                   Corridor
-

1.                                       4”
stained hardwood to match elevator lobby stain color

2.                                       4”
cast stone to match elevator, Dal-Tile Granite

 

B.                                     Tenant
Space -

1.                                       4”
coved rubber by Roppe - continuous with pre-molded exterior corners.

2.                                       3
1/2” stained hardwood. (Corridors, conference rooms, etc.)

3.                                       Options:

a.                                       4”
marble or cast stone base.

 

VI.                                 ACOUSTIC
CEILING

 

A.                                   Ceiling
height 8’-6”.

 

B.                                     Ceiling
tile -

1.                                       Omni
Fissured.

2.                                       5/8”
X 2’x 2’ mineral lay-in tiles.

 

37

 

3.                                       Celotex
or USG.

 

C.                                     Acoustical
suspension system -

1.                                       Flat
white by Dorm Corp or equal.

 

D.                                    OPTIONS:

1.                                       Ceiling
tile -

a.                                       Natural
issured cast product.

b.                                      3/4”
x 2’ x 2’ mineral lay-in tiles.

c.                                       Celotex
or USG.

2.                                       Sound
attenuation tile blankets -

 

Vll.                               WINDOW
COVERING

 

A.                                   Levelor
1” Mini-Blinds, Color black.

 

B.                                     OPTIONS:

1.                                       Interior
window covering.

a.                                       Mini-blinds
- Levelor 1”

b.                                      Vertical
- Levelor 4”

c.                                       Curtain
Hardware -

(1)                                  “Super
Fine” Kirsch Co.

(2)                                  601
Sanes Graber Industries, Inc.

 

VII1.                       CABINETS

 

A.                                   OPTIONS:

1.                                       Shelving
and brackets. (Exposed to View)

a.                                       Stained
hardwood plywood with solid hardwood edge.

2.                                       Counter
tops.

a.                                       Wilsonart
horizontal grade color as approved by Owner.

b.                                      Edging
shall be a manufactured hardwood edge as approved by Owner.

3.                                       Kitchen
type cabinets.

a.                                       Interiors
-

(1)                                  Prefinished plastic
coated high density particle board. (Kortron or approved equal.)

(2)                                  Stained
plywood.

(3)                                  Parts
exposed to view to match doors.

b.                                      Doors
-

(1)                                  Stained
solid hardwood.

(2)                                  Plastic
laminate faced millwork.

 

IX.                                PLUMBING

 

A.                                   OPTIONS:

1.                                       Toilet
Room.

a.                                       Fixtures
- shall be stainless steel.

2.                                       Kitchen/Break
Rooms

a.                                       Sinks
- shall be stainless steel.

b.                                      Refrigerator

c.                                       Microwave
oven

 

38

 

d.                                      Dishwasher

3.                                       Piping
-

a.                                       Supply
lines - as per state and local building codes.

b.                                      Waste
and vent lines - as per state and local building codes.

 

X.                                    FIRE
SPRINKLERS

 

A.                                   Chrome
semi-recessed heads. Installed per state and local codes.

 

B.                                     Escutcheons
and trim shall be chrome to match existing.

 

Xl.                                 HEATING
& AIR CONDITIONING DISTRIBUTION

 

A.                                   Supply
Air Diffusers - Slot type, clear anodized.

 

B.                                     Return
Air Grille - 2’x 2’ perforated grille, white.

 

C.                                     Thermostats,
Distribution Duct Work - as per building standards throughout.

 

XII.                            LIGHTING

 

A.                                   Light
Fixtures

1.                                       Corridors
- Day-Brite, 2’x 2’ fluorescent, 2 tube,

Catalog #PGC222-P16S22-ESB, 277 Volts 100 Watts, energy efficient lamps
F40UT12WMII, lay in, return air troffer, 3” 16 cell paralouver lens. (Match
existing fixtures.)

2.                                       Interior space -
Day-Brite, 2’x 4’ fluorescent, 4 tube, Catalog #PGC424-ESB, 277 Volts 100
Watts, energy efficient lamps F40T12WMII, lay in, return air troffer, 3” 32
cell parlouver lens. (Match existing fixtures.)

3.                                       Emergency
lighting: Emergency generator system.

 

B.                                     Accent
Lighting

 

1.                                       Down Light -
Recessed down light with aluminum reflector with black baffle, PL-13 double
twin lamp, 277V, 6.5 aperture as manufactured by - Halo H275-409P, Marco FM
13-63-277 or Prescolite CFX TO-76S-277.

2.                                       Recessed down -
Recessed 75W PAR38/3, gimbal ring adjustable, as manufactured by Prescolite
PBX-TA-72, or equal Halo, Marco.

 

C.                                     Switch
Assembly

1.                                       Pass
& Seymour 20AC series or equal, with smooth plastic cover.

2.                                       Color-
Ivory.

 

D.                                    Motion
Detector

1.                                       Hubbel - H-MOSS
1000 Wall Switch, WSS-1277, with off override and 12 minute delay. (Model
257-151 SA for ceiling applications.)

2.                                       Use
in lieu of standard switch assembly.

 

E.                                      Exit
Lights

1.                                       Emergency
generator system.

 

F.                                      Installation
- Contractor shall install electrical system as required per state and local
codes.

 

39

 

G.                                     Smoke
Detection, Alarm & Communication Systems

1.                                       Modify existing
building systems per as per requirements of the U.B.C. Section 1807 and
ANSIA117.1-1996.

 

H.                                    OPTIONS:

1.                                       Track
Lighting

a.                                       Two
circuit track by Halo or Lightolier.

b.                                      Heads
- Halo or Lightolier style as selected by tenant.

 

XII.                            POWER
-

 

A.                                   Outlets

1.                                       Duplex
receptacle - Series 5342 (20 Amp) by Pass & Seymour or equal with smooth
plastic cover plate.

2.                                       Color
- Ivory.

 

B.                                     OPTIONS:

1.                                       Isolated
Circuits. - Pass & Seymour 2091 (20 Amp) or equal, orange, with ivory
smooth plastic cover plate.

2.                                       Floor Outlets -
Model RC-700A as manufactured by Raceway Components Inc., 20819th avenue,
Paterson, NJ 07524.

 

XIV.                        TELEPHONE

 

A.                                   Telephone Outlets -
Empty single gang box with 3/4” conduit stubbed into ceiling space with blank
ivory cover plate.

 

B.                                     Service
-

1.                                       3/4”
conduit from outlet to centrally located pull box or telephone board.

 

C.                                     OPTIONS:

1.                                       Telephone
equipment board - 3/4” plywood edges filled and finished. Painted to match
wall.

2.                                       Communication
cables must be plenum rated or be in conduit.

3.                                       Standard
modular telephone outlets as needed.

 

40

 

EXHIBIT “E”

 

RULES
AND REGULATIONS

 

1.                                                                                       The
sidewalks, entrances, passages, courts, elevators, stairways, corridors or
halls shall not be obstructed or used for any purpose other than ingress or
egress.

 

2.                                                                                       No
awnings or other projections shall be attached to the outside walls of the
Building.

 

3.                                                                                       The
sashes, sash doors, skylights, windows and doors that reflect or admit light
and air into the halls, passageways or other public places in the Building
shall not be covered or obstructed, nor shall any bottles, parcels or other
articles be placed on the windowsills. If Tenant desires window curtains, the
same must be of such uniform shape, color, material and make as may be
prescribed by Landlord. Neither the interior nor the exterior of any windows
shall be coated or otherwise sunscreened without Landlord’s prior written
consent.

 

4.                                                                                       No
sign, advertisement or notice shall be exhibited, painted or affixed by Tenant
on any part of, or so as to be seen from the outside of, its Premises or the
Building without Landlord’s prior written consent. In the event of Tenant’s
violation of the foregoing, Landlord may remove the same without any liability
and may charge the expense incurred in such removal to Tenant. All signs,
whether on doors, directory tablets or elsewhere, shall be inscribed, painted
or affixed for Tenant by Landlord at the expense of Tenant, and shall be of a
size, color and style acceptable to Landlord. Landlord may prescribe a design
standard for all such signs.

 

5.                                                                                       The
bulletin board or directory of the Building will be provided exclusively for
the display of the name and location of Tenant only; and Landlord reserves the
right to exclude any other names therefrom, and each and every name in addition
to the name of Tenant placed upon such bulletin board or directory, shall be
subject to Landlord’s prior written consent (and if approved by Landlord, all
costs therefor shall be paid by Tenant). Any such listings or representations,
once installed, shall be subject to relocation or removal upon Landlord’s
written request for any reason (except that any such relocations or removals at
Landlord’s request, unless such request is based upon Tenant’s breach of the
Lease, of which these Rules and Regulations are a part, shall be paid for by
Landlord), and Tenant shall pay for the removal of any such listings or
representations upon its departure from its Premises.

 

6.                                                                                       All
doors opening into public corridors shall be kept closed, except when being
used for ingress and egress.

 

7.                                                                                       Tenant
shall not mark, paint, drill or bore into, cut or string wires in, lay linoleum
or other floor coverings in, or in any way deface any part of its Premises or
the Building, except with Landlord’s prior written consent and as Landlord may
direct.

 

8.                                                                                       All
keys shall be obtained from Landlord and neither Tenant, its agents or
employees shall have any duplicate keys made. No additional locks or bolts of
any kind shall be placed upon any of the doors or windows by Tenant, nor shall
any changes be made in existing locks or the mechanisms thereof. Tenant must,
upon the termination of its tenancy, give to Landlord all keys pertaining to
the Premises and the Building, and in the event of the loss of any keys so
furnished, Tenant shall pay Landlord the cost of replacing same or of changing
the lock or locks opened by such lost key(s) if Landlord shall deem it
necessary to make such change.

 

41

 

9.                                                                                       No
window or other air conditioning or heating units or other similar apparatus
shall be installed or used by Tenant without Landlord’s prior written consent.
Tenant shall not be permitted upon the roof at any time.

 

10.                                                                                 The
water and wash closets and other plumbing fixtures shall not be used for any
purpose other than those for which they were constructed and no sweepings,
rubbish, rags or other substances shall be thrown therein. All damages
resulting from any misuse of the fixtures by Tenant or its servants, employees,
agents, visitors or licensees shall be borne by Tenant

 

11.                                                                                 All
removals from, or the carrying in or out of, the Building of any safes,
freight, furniture, heavy or bulky matter of any description, must take place
only between the hours of 9:00 and 11:00 A.M., and 2:00 and 4:00 P.M. of days
other than Saturdays, Sundays and holidays (no moving being permitted on
Saturdays, Sundays or holidays without special permission) and must be made
upon previous written notice to Landlord and under its supervision, and the
persons employed by Tenant for such work must be acceptable to Landlord.
Landlord reserves the right to inspect all safes or other heavy or bulky
equipment or articles to be brought into the Building and to exclude from the
Building all such heavy or bulky equipment or articles, the weight of which may
exceed the floor load for which the Building is designed, or such equipment or
articles as may violate any of the provisions of the Lease of which these Rules
and Regulations are a part. Tenant shall not use any machinery or other bulky
articles in the Premises, even though its installation may have been permitted,
which may cause any noise, or jar, or tremor to the floors or walks, or which
by its weight might injure the floor of the Building.

 

12.                                                                                 Neither
Tenant nor its servants, employees, agents, visitors or licensees shall at any
time bring or keep upon the Premises any flammable, combustible or explosive
fluid, chemical or substance.

 

13.                                                                                 The
Premises shall not be used for manufacturing or for the storage of merchandise
except as such storage may be incidental to the permitted use of the Premises.
Tenant shall not, without Landlord’s prior written consent, occupy or permit
any portion of the Premises to be occupied or used for the manufacture or sale
of liquor or tobacco in any form, or as a barber or manicure shop, or as an
employment bureau. The Premises shall not be used for lodging or sleeping. No
sales or auctions shall be conducted from the Premises.

 

14.                                                                                 Tenant
shall not make, or permit to be made, any unseemly or disturbing noises, or
disturb or interfere with occupants of the Building or neighboring buildings or
premises or these having business with it by the use of any musical instrument,
radio, phonographs or unusual noise, or in any other way. Neither Tenant nor
its servants, employees, agents, visitors or licensees shall throw anything out
of doors, windows or skylights or down the passageways.

 

15.                                                                                 No
bicycles, vehicles, birds or animals of any kind shall be brought into or kept
in or about the Premises or the Building and no cooking shall be done or
permitted by Tenant in its Premises, except that the preparation of coffee,
tea, hot chocolate and similar items and items that can be heated in a
microwave oven for Tenant, its employees and visitors shall be permitted
provided such activities do not otherwise violate the Lease of which these
Rules and Regulations are part and provided power shall not exceed that amount
which can be provided by a 30 amp circuit. Tenant shall not cause or permit any
unusual or objectionable odors to be produced in or emanate from the Premises.

 

16.                                                                                 There
shall not be used in any space, or in the public halls of the Building, any
hand truck except those equipped with rubber tires and side guards.

 

42

 

17.                                                                                 No
vending or coin operated machines shall be placed within the Premises without
Landlord’s prior written consent.

 

18.                                                                                 No
person shall be employed by Tenant to do janitorial work in any part of said
Building without Landlord’s prior written consent. Any person employed by
Tenant to do janitorial, maintenance or similar work with Landlord’s consent
shall, while in the Building, be subject to and under the control and direction
of Landlord or its agent or representative (but not as an agent or servant of Landlord)
and Tenant shall be responsible for all acts of such persons.

 

19.                                                                                 Landlord
shall have the right to prohibit any advertising by Tenant which, in Landlord’s
opinion, tends to impair the reputation of the Building or its desirability as
an office building, and upon written notice from Landlord, Tenant shall refrain
from or discontinue such advertising.

 

20.                                                                                 Canvassing,
soliciting and peddling in the Building are prohibited and Tenant shall
cooperate to prevent same.

 

21.                                                                                 Landlord
reserves the right to control access to the Building by all persons after
reasonable hours of generally recognized business days and at all hours on
Sundays and legal holidays. Tenant shall be responsible for all persons for
whom it requests after-hours access and shall be liable to Landlord for all
acts of such persons.

 

Landlord assumes no responsibility and shall not be liable for any
damage resulting from the admission of any unauthorized person to the Building.
Upon request Tenant shall provide Landlord with a description and license plate
number of all its personnel’s vehicles utilizing parking at the Building.

 

22.                                                                                 Landlord
reserves the right to exclude or expel from the Building any person who, in the
judgment of Landlord, is intoxicated or under the influence of liquor or drugs,
or who shall in any manner do any act in violation of the Rules and Regulations
of the Building.

 

23.                                                                                 It
is understood and agreed between Landlord and Tenant that no assent or consent
to any waiver or any part hereof by Landlord in spirit or letter shall be
deemed or taken as made except if same is done in writing and attached to or
endorsed hereon by Landlord.

 

24.                                                                                 Landlord
reserves the right at any time to change or rescind any one or more of these
Rules or Regulations, or to make such other and further reasonable Rules and
Regulations as in Landlord’s judgment may from time to time be necessary for
the management, safety, care and cleanliness of the Premises, Building and
Common Areas, and for the preservation of good order therein, as well as for
the convenience of other occupants and tenants therein. Landlord shall not be
responsible to Tenant herein or to any other person for the nonobservance of
the Rules and Regulations by any other tenant or other person. Tenant shall be
deemed to have read these Rules and Regulations and to have agreed to abide by
them as a condition to its occupancy of the Premises.

 

43

 

EXHIBIT “F”

 

TENANT’S
ESTOPPEL CERTIFICATE

 

The undersigned, as Tenant, under that certain Office Lease (the
“Lease”) dated as of , 19   made with Parkside Salt Lake Corporation,
a Delaware corporation, as Landlord, hereby certifies as follows (all initially
capitalized terms or phrases used herein shall have the same meanings as in the
Lease):

 

1.                                       The
undersigned entered into occupancy of the Premises described in the Lease on
                                    ,
19  ;

 

2.                                       The
undersigned opened for business in the Premises
on             ,
19  ;

 

3.                                       The
Lease (including all Exhibits) is in full force and effect and has not been
assigned, modified, supplemented or amended in any way, except as
Follows:                                                                                                                        

 

4.                                       The
Lease, as affected by those changes set forth in Paragraph 3 above, represents
the entire agreement between the parties as to the Premises;

 

5.                                       The
Commencement Date under the Lease was
                                   ;

 

6.                                       The
term of the Lease will expire on                                                    ;

 

7.                                       All
conditions of the Lease to be performed by Landlord and necessary to the
enforceability of the Lease have been satisfied;

 

8.                                       There
are no uncured defaults by Landlord or Tenant under the Lease and Tenant knows
of no events or conditions which with the passage of time or notice or both,
would constitute a default by Landlord or Tenant under the Lease, except as
follows:

 

9.                                       No
rents have been prepaid, other than for the current month and as expressly provided
in the Lease;

 

10.                                 As
of the date hereof, the undersigned has no existing defenses against or offsets
of Basic Annual Rent or Additional Rent or the enforcement of the Lease by
Landlord;

 

11.                                 The
total amount of security deposit delivered to Landlord is
$                   and
none of that amount has, to Tenant’s knowledge, been applied by Landlord to
cure any default by Tenant; and

 

12. The current monthly installment of Basic Annual Rent
is                        ,
and has been paid through                     ,
19      .

 

EXECUTED this day
of                     ,
19      .

 

“TENANT”

 

	
  By:

  	
   

  	
   

  
	
   

  
	
  Its:

  	
   

  	
   

  
				

 

 

44

 

EXHIBIT “G”

 

PARKING
PROVISIONS

 

1.                                       Capitalized
terms used but not defined in this Exhibit shall have the meanings ascribed to
them in the Office Lease (the “Lease”) to which this Exhibit is attached.

 

2.                                       Subject
to the terms and conditions of this Exhibit, Landlord shall issue Tenant
parking passes (individually, a “Pass” and collectively, the “Passes”) for the
parking facilities owned by Landlord in connection with the Building (the
“Facilities”) in such numbers as Tenant may request, up to the maximum number
of thirteen
(13) Passes for unreserved parking outstanding to Tenant at any
given time. Unreserved parking shall be designated as parking in the parking
garage rather or the surface parking lot both of which constitute part of the
Facility. Each Pass shall, during the time it is in effect, entitle Tenant to
park one vehicle in the type of parking stall designated in the Pass; provided
Passes for unreserved parking shall be subject to the availability of parking
spaces. Tenant acknowledges that in order for Landlord to fully utilize the
Facilities, and to facilitate the providing of parking to clients and visitors
of tenants of the Building, Landlord will make estimates and predictions as to
the numbers of Passes for unreserved parking that will be used on each day and
at any given time, and permit others to use the Facilities based upon such estimates
and predictions. On occasion, and from time to time, unanticipated usage of the
Facilities may result in parking spaces being unavailable for the holders of
Passes for unreserved parking. If, however, on a frequent and recurring basis,
there are no unreserved parking spaces available to the holders of Tenant’s
Passes for unreserved parking, Landlord will, at Tenant’s written request, make
reasonable adjustments to Landlord’s parking policies and practices in order to
limit the occurrence of such problems to an occasional basis.

 

3.                                       Prior
to the first day of each month, Tenant shall pay Landlord the monthly parking
fee of $55.00 per Pass for unreserved Passes, subject to periodic market
adjustements, for each Pass that will be outstanding to Tenant during such
month. If such fee is not paid when due with respect to any Pass, such Pass
shall immediately become null and void and Tenant shall promptly return such
Pass to Landlord. Landlord may, in its discretion, increase such fees at any
time and from time to time so long as the fees charged for the Passes are
reasonably competitive with rates being charged at the time for similar parking
in the general area of the Building.

 

4.                                       Tenant’s
rights under this Exhibit shall terminate and Tenant shall promptly return to
Landlord all outstanding Passes issued to it upon the occurrence of either of
the following: (i) the last day of the Lease Term; or (ii) any default or
breach on the part of Tenant under the Lease or this Exhibit.

 

5.                                       The
parking rights granted to Tenant under this Exhibit or under the Passes shall
be deemed a license only and nothing in this Exhibit or the Passes shall be
construed as granting to or vesting in Tenant any fee, leasehold or other
interest in the Facilities other than a license which is subject to termination
as provided in this Exhibit.

 

6.                                       Landlord’s
inability to make parking available at any time to holders of the Passes shall
not be deemed to be a breach or default on the part of Landlord under the Lease
or under this Exhibit so long as such inability is due to fire, flood,
earthquake, strikes, riots, blackouts, condemnation and other casualties or
causes reasonably beyond Landlord’s control. The abatement of Tenant’s
obligation to pay parking fees for the Passes during any such period

 

45

 

for which parking is unavailable shall constitute Tenant’s sole remedy
in the event of such unavailability.

 

7.                                       Tenant
may permit its personnel to use Passes issued to Tenant pursuant to this Exhibit,
provided Tenant shall maintain on file with Landlord at all times a current
list of each of Tenant’s personnel permitted to use a Pass. Only one of
Tenant’s personnel at any given time shall be assigned to a given Pass and only
that person may use such Pass. Tenant shall be fully responsible to Landlord to
assure that each of Tenant’s personnel whom Tenant permits to use a Pass fully
complies with the terms and conditions of this Exhibit and shall be liable to
Landlord for any failure of any of Tenant’s personnel to so comply. Landlord
may deal directly with those persons designated by Tenant as authorized to use
the Passes with regard to such matters as the renewal of Passes and the
collection of monthly parking fees, and no such direct dealings shall relieve
Tenant of any of its duties or obligation hereunder.

 

8.                                       Except
as provided in Section 7 above, Tenant shall not assign any of its rights
under this Exhibit other than in connection with a permitted sublease or
assignment under the Lease. Any assignment by Tenant contrary to the terms of
this Exhibit shall be of no force or effect.

 

9.                                       In
connection with the use of the Facilities, Tenant shall observe and comply
with, and shall cause each person who uses any Pass issued to Tenant under this
Exhibit to observe and comply with, all rules and regulations promulgated by
Landlord, as in effect from time to time with respect to the use of the
Facilities, including, without limitation, rules and regulations regarding
spaces or areas in which parking is restricted, limited or prohibited. If
Tenant or any person using any of Tenant’s Passes fails to observe such rules
and regulations, Landlord, at its sole option, may, in addition to any other
remedy it may have, cancel Tenant’s rights under this Exhibit and require
Tenant to relinquish all Passes issued to it.

 

10.                                 By
using the Facilities, Tenant and all persons using Passes issued to it accept
and assume all risk of injury caused by any other users of the Facilities and
of damage, loss or theft of any vehicle or other property while in the
Facilities.

 

11.                                 Landlord,
at its sole option, shall have the right to move the locations of reserved
parking stalls and to assign designated parking stalls with respect to Passes
for unreserved parking at any time during the term of this Exhibit.

 

12.                                 Tenant’s
use of the Facilities as herein set forth shall be in common with other tenants
of the Building and any other parties permitted by Landlord to use the
Facilities.

 

13.                                 Any
breach or default by Tenant under this Exhibit shall constitute a default on
the part of Tenant under the Lease and any breach or default by Tenant under
the Lease shall constitute a default on the part of Tenant under this Exhibit.
If Landlord elects to terminate the License pursuant to Section 3 of this
Exhibit because of a breach or default by Tenant under this Exhibit, Landlord
may, at its discretion, exercise any or all remedies allowed under the Lease or
applicable law.

 

14.                                 Nothing
in this Exhibit shall be deemed to alter, modify, release, nullify or reduce,
in any manner whatsoever, Tenant’s obligations under the Lease. Tenant shall
comply with the Building Rules and Regulations attached to the Lease in
connection with the exercise of its rights under this Exhibit. Except where the
provisions of this Exhibit directly contradict the Lease, the provisions of the
Lease

 

46

 

shall apply to this Exhibit and any provision of the Lease which
provides greater protection to Landlord than is provided under this Exhibit
may, at Landlord’s discretion, be applied to any dispute or issue regarding
this Exhibit.

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  PARKSIDE SALT LAKE CORPORATION

  	
   

  	
  ADVANCED TELECOMMUNICATIONS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   /s/Gerald [illegible]

  	
   

  	
  By:

  	
  /s/Satish C. Tiwari

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
    Asset Manager

  	
   

  	
  Its:

  	
    V.P. Engineering and Network Implementation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
    1-11-2000

  	
   

  	
  Date:

  	
    12/30/1999

  
							

 

47

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