Document:

Lease Agreement

  Exhibit 10.57 
 Lease
 This Lease entered into this April 1, 2003, by and between XL Realty Corp ., hereinafter
referred to as the “Landlord”, whose mailing address is 10315 102nd Terrace, Sebastian, FL 32958, and eMerge Interactive, Inc., hereinafter referred to as the “Tenant”, whose mailing address is 10305 102nd Terrace, Sebastian, Florida 32958.
 Article I
Tenant’s Exhibits
 Attach tenant’s exhibits that are to be made part of
this lease.
 Article II
Leased Premises, Term And Use
 Section 2.1 Leased Premises
 Landlord hereby leases to Tenant, and Tenant hereby rents from Landlord, the following described Premises, hereinafter
referred to as the “Premises” at 10305 102nd Terrace in Indian River County, Florida, which consists of approximately 20,240 square feet of space.
 Section 2.2 Roof and Walls
 Landlord shall have the exclusive right to use all or part of the roof, side and rear walls of the Premises for any purpose, including but not limited to erecting signs or other structures thereon and erecting aids to the construction and
installation of the same. Tenant shall have no right whatsoever in the exterior of the exterior walls or the roof of the Premises, except as provided in Section 5.2.
 Section 2.3 Term
 The term of this lease shall be for a period of Three (3) years commencing on April 1, 2003 and ending on March 31, 2006, unless sooner terminated as herein provided.
 Section
2.4 Use of the Premises
 The Premises shall be lawfully occupied and used by Tenant solely for the purposes of conducting the business of eMerge and for no
other use or purpose, absent the express written consent of Landlord or Landlord’s Agent.
 Section 2.5 Exclusion of
Warranty
 Landlord has not made an inspection of the premises or of any property or fixture or other item constituting a portion thereof, and Landlord
makes no warranty or representation, with respect to the same or the location, use, description, design, merchantability, fitness for use for any particular purposes, condition or durability thereof, or as to the quality of workmanship therein, or
as to the Landlord’s title thereto or ownership thereof or otherwise. The provisions of this section 2.5 have been negotiated and are intended to be a complete exclusion and negation of any warranties by landlord, expressed or implied, with
respect to the premises or any property or fixture or other item constituting a portion thereof, whether arising pursuant to the uniform commercial code or any other law now or hereafter in effect or otherwise.
 Section 2.6 Net Lease
 This Lease is a net lease and any present or future law to the contrary not
withstanding shall not terminate except as otherwise expressly provided herein, nor except as otherwise expressly provided in this Lease shall the obligations of Tenant be affected, by reason of: any damage to or destruction of the Premises; any
taking of the Premises or any part of the Landlord’s Tract by condemnation or otherwise; any prohibition, limitation, restriction 
 

  or prevention of Tenant’s use occupancy or enjoyment by any person; any eviction by paramount title or otherwise; any default by Landlord hereunder or
under any other agreement; the impossibility or illegality of performance by Landlord, Tenant or both; any action of any governmental authority; or any other cause. The parties intend that the obligations of Tenant hereunder shall be separate and
independent covenants and agreements, and shall continue unaffected unless such obligations shall have been modified or terminated pursuant to an express provision of this Lease.
 Article III
Intentionally Left Blank
 Article IV
 Rent
 Section 4.1 Minimum Rent
 Tenant covenants and agrees to pay to Landlord without notice or demand, at Landlord’s Notice Address, as specified in Section 24.7 hereof, as rent for the
Premises:
 Minimum Annual Rent of One Hundred Seventy Two Thousand No Hundred and Forty Dollars ($172,040.00) per annum payable monthly on the first day of each and every month
during the term hereof, in equal monthly installments of:
 Monthly Rent of $14,336.67
 in advance, upon the Commencement Date (such monthly installments being hereafter called “Minimum Monthly Rent”), plus applicable governmental sales tax thereupon.
 The Base Period for this Lease shall be 4/1/03 to 3/31/06
 Section 4.2 Late Payment Penalty Charges
 Any rent or other amounts, all of which shall also be
regarded as constituting rent under this Lease, to be paid by Tenant which are not paid within five (5) days after the date due, shall incur a late payment penalty charge of Twenty-Five Dollars
($25.00) or Five Percent of the amount due, per day, whichever is greater, for each and every day after five (5) day period.
 Landlord shall be entitled to receive from Tenant a service charge in the amount of Fifty Dollars ($50.00) in the event that any check or similar instrument presented by Tenant in
payment of an obligation hereunder shall be dishonored by the financial institution on which it is drawn upon initial presentment for payment.
 Late payment
penalty and service charge set forth in this Section 4.2 of this Lease shall also be regarded by the parties as being additional rent.
 If, during this term of
this Lease, checks or other instruments provided by Tenant to Landlord in payment of Tenant’s obligations hereunder shall be twice dishonored by the financial institution on which they are drawn, regardless of whether the instrument so
dishonored is the same or another such instrument, then Landlord shall have the right to demand that all future payments by Tenant be made by cashier’s check, bank check, certified check or 
 

  money order drawn upon a financial institution, entity or company acceptable to Landlord.
 Section 4.4 Real Estate Taxes
 Landlord shall pay or cause to be paid all Real Estate Taxes (as here defined) assessed or imposed upon Landlord or
Tract that become due and payable during the Lease Term.
 Definition. As used in this Section 4.5 the term “Real Estate
Taxes” shall mean and include all real estate taxes, public and governmental charges and assessments, including all extraordinary or special assessments, all costs and fees including reasonable attorney’s fees incurred by Landlord in
contesting or negotiating with public authorities with respect to any of the above, and all sewer and other taxes and charges, but shall not include taxes on Tenant’s machinery, equipment, inventory or other personal property or assets of
Tenant. Tenant hereby agrees to promptly pay all taxes upon or attributable to such excluded property without apportionment.
 Tenant’s
Share. Tenant shall pay to Landlord, as additional rent, its proportionate share of all Real Estate Taxes upon Landlord’s Tract that become due and payable during the lease Term, such proportionate share to be prorated
for periods at the beginning and end of the Lease Term that do not constitute full calendar months or years. Tenant’s proportionate share of any such taxes shall be that portion of such taxes which bears the same ratio to the total Real Estate
Taxes on Landlord’s Tract as the floor area of the Premises bears to the rentable floor area on Landlord’s Tract (hereinafter called “Rentable Floor Area”) as of the Commencement Date or the first day of the calendar year in
which such taxes are due and payable as Landlord may from time to time in its sole discretion elect.
 Payment by Tenant.
Tenant’s proportionate share of Real Estate Taxes shall be paid in monthly installments commencing with the Commencement Date, in amounts initially estimated by the Landlord. Each such installment shall be due on the first day of each full or
partial calendar month during the Lease Term. Such monthly installments shall increase or decrease upon notice to Tenant from Landlord given after the actual or anticipated amount of Real Estate Taxes due, payable or paid in a particular calendar
year during the Lease term shall be computed by Landlord. Any excess of Real Estate Taxes paid in a particular calendar year over the actual amount Tenant is obligated to pay shall be refunded by Landlord to Tenant, and within twenty (20) days after
written notice from Landlord any deficiency owed by Tenant shall be paid by Tenant to Landlord. Tenant’s estimated share of Real Estate Taxes for the first year is based on 100% of tax bill for 10305 102nd Terrace.
 Other Taxes. Any governmental tax or charge (other than income tax) levied, assessed, or imposed on account of the payment by Tenant or receipt
by Landlord, or based in whole or in part upon the rents in this Lease reserved, or upon the Premises or the value thereof, including Sales Tax shall be paid when due by Tenant.
 Section 4.5 Additional Rent
 Tenant will pay Landlord, in addition to all other amounts provided in the Lease, a portion of Landlord’s Common
Area Costs in proportion to the rentable floor area of the Premises, which Tenant occupies hereunder at the first of each calendar year.
 All amounts required
or provided to be paid by Tenant under this Lease shall be deemed additional rent hereunder and the failure to pay the sums are to be treated in all events as the failure to pay rent under this Lease, and shall entitle Landlord to exercise any
rights or remedies provided by law or in this Lease.
 Section 4.6 Payment by Landlord
 If Landlord, in its sole discretion, pays any monies or incurs any expense to correct a default under this Lease by Tenant or to do anything in this Lease required to be done by Tenant, all amounts so paid or incurred shall, on notice to
Tenant, be considered additional rent payable by Tenant with the first Minimum Monthly Rent installment thereafter becoming due and payable together with interest thereon at the Stipulated Rate, and may be collected as by law provided in the case of
rent.
 

  Article V
Parking and Common Use Area Facilities
 Section 5.1 Common Areas Refer to Exhibit B for detailed description of Common Areas, Items of Landlord Responsibility and Tenant Responsibility.
 All parking areas, access roads and facilities furnished, made available or maintained by Landlord in or near the Building, including employee parking areas, truck way, driveways, loading docks and
areas, stations, elevators, escalators, pedestrian sidewalks, malls courts and ramps, landscaped areas, retaining walls, stairways, bus stops, first-aid and comfort stations, lighting facilities, roofs, air conditioning unit, and other areas and
improvements provided by Landlord for the general use in common of tenants and their customers (all herein called “Common Areas”) shall at all times be subject to the exclusive control and management of the Landlord.
 Landlord shall have the right from time to time to: (a) change sizes, locations, shapes and arrangement of parking areas and other Common Areas; provided, however, that the size of
the paved parking areas on Landlord’s Tract shall not be substantially reduced unless other parking areas are provided; (b) restrict parking employees to designated areas; construct surface, sub-surface or elevated parking areas and facilities;
(c) establish and from time to time change the level or grade of parking surfaces; and (d) to do and perform such other acts in and to said areas and improvement as Landlord in its sole discretion, reasonably applied, deems advisable for the use
thereof by tenants of the Building and their customers.
 Section 5.2 Uses of Common Areas
 Tenant and its business invitees, employees and customers shall have the nonexclusive right, in common with Landlord and all others to whom Landlord has granted or hereafter grants rights, to use the Common Areas
subject to such regulations as Landlord may from time to time impose and the rights of Landlord as set forth above. Tenant authorizes Landlord, for cause, to tow any car of Tenant, and concessionaires, employees and agents of Tenant from the
Building and Tenant shall reimburse Landlord for the cost thereof upon demand, and shall otherwise indemnify and hold Landlord harmless with respect thereto. Tenant shall abide by all rules and regulations as Landlord may from time to time in its
sole discretion impose with respect to the use of Common Areas, and cause its concessionaires, officers, employees, agents, customers and invites to abide thereby. Landlord may at any time close temporarily any Common Area to make repairs or
changes, prevent the acquisition of public rights therein, discourage noncustomer parking or for other reasonable purposes. Tenant shall not interfere with Landlord’s or other tenant’s rights to use any part of the Common Areas.

Article VI
Cost and Maintenance
 Section 6.1 Expenses of
Operating and Maintaining the Common Facilities
 Landlord will operate, maintain and repair the Common Areas of the Building. “Landlord’s Common
Areas Costs” shall mean all costs incurred by Landlord in connection with operating and maintaining the Common Areas in a manner deemed by Landlord appropriate for the best interests of tenants and other occupants in the Building. Included
among the costs and expenses which constitute Landlord’s Common Area Costs, but not limited thereto, shall be all costs and expenses (including appropriate reserves) of protecting, operating, repairing, repaving, lighting, cleaning, painting,
striping, insuring (including but not limited to fire and extended coverage insurance, insurance against liability for personal injury death and property damage and workmen’s compensation insurance and including insurance maintained pursuant to
Section 11.s of the Lease), removing debris, improving or remodeling Common Areas, police protection, security and security patrol, fire protection, regulating traffic, inspecting, repairing and maintaining of machinery and equipment used in the
operation of the Common Areas, including heating, ventilating and air conditioning machinery and equipment, any necessary repairs to the roof, cost and expense of installing maintaining and repairing burglar or fire alarm systems on Landlord’s
Tract, if installed, cost and expense of landscaping and shrubbery, expense of utilities.
 

  Section 6.2 Tenant to Bear Pro Rata Share of Expenses
 Tenant will pay Landlord, in addition to all other amounts provided in the Lease, a portion of Landlord’s Common Area Costs in proportion to the rentable floor area of the Premises, which Tenant occupies hereunder at the first of each
calendar year.
 Tenant’s share of Landlord’s Common Area Costs shall be paid in monthly installments in amounts estimated from time to time by
Landlord. Each such installment is due on the first day of each month. Within sixty (60) days after the end of each calendar year, the total of Landlord’s Common Area Costs for such year shall be determined by Landlord, and Tenant’s share
paid for such period shall be immediately adjusted by refund to Tenant by Landlord of any excess or payment to Landlord by Tenant of any deficiency. Landlord’s records of Landlord’s Common Area Costs for a period shall be available for
inspection by Tenant for six months after Landlord notifies Tenant of Tenant’s share of Landlord’s Common Area Costs. Tenant’s estimated share of Landlord’s Common Area Costs for the First Lease Year is based on 100% of actual expense for all common area.
 Article VII
Utilities and Services
 Section 7.1 Utilities
 Tenant will not install any equipment which can exceed the capacity of any
utility facilities, and if any equipment installed by Tenant requires additional utility facilities the same shall be installed at Tenant’s expense in compliance with all applicable code requirements and plans and specifications which must be
approved in writing by Landlord.
 Tenant shall be solely responsible for and promptly pay all charges for use or consumption or sewer, gas, electricity, water
and all other utility services. Landlord shall have the right, but not the obligation, to furnish, and in such event Tenant shall purchase from Landlord, any such utility services as Landlord desires. Tenant shall pay for the installation of such
meters and other measuring devices for said services as Landlord may in its sole discretion require. If Landlord elects to supply any such utility services, Tenant shall purchase and pay for the same, as additional rent, at the same rate as would be
charged to Tenant by the utility company which otherwise would furnish such services to the Premises if it provided such services and metered the same directly to the Premises.
 Article VIII
Conduct of Business by Tenant
 Section 8.1 Conduct of Business
 Tenant’s business shall be conducted in Tenant’s own name or under the name, eMerge and under no other name without the prior written consent of Landlord. 
 Section 8.2 Operation by Tenant
 Tenant covenants and agrees that it will: not place or
maintain any merchandise, vending machines or other articles in any vestibule or entry of the Premises or outside the Premises; frequently and regularly remove garbage, trash, rubbish and other refuse and keep the same in rat-proof containers inside
the Premises, not permit any sound system audible, or objectionable advertising medium visible, outside the Premises; keep all mechanical equipment free of vibration and noise and in good working order and condition; nor commit or permit waste or
nuisance upon the Premises; not solicit business in the Common Areas nor distribute advertising matter to, in or upon any Common Area; not permit the loading or unloading or the parking or standing of delivery vehicles outside any area designated
therefore, nor permit any use of vehicles which will interfere with the use of any Common Area in the Building, comply with all laws, recommendations, ordinances, rules and regulations of governmental, public and other authorities and agencies,
including those with authority over insurance rates, with respect to the use or occupancy of the Premises, light the show windows of the Premises and all signs each night of the year for not less than one hour 
 

  after the Premises are permitted to be closed; not permit any noxious odor, toxic or corrosive fuel or gas, dust, dirt or fly ash on the Premises; not place
a load on any floor in the Center which exceeds its per square foot designed capacity without prior written approval of Landlord.
 Section 8.3 Painting, Decorating, Display,
Alterations
 Tenant will not paint, decorate or change the architectural treatment of any part of the exterior of the Premises, nor make any structural
alterations, additions or changes in the Premises without Landlord’s prior written approval.
 Section 8.4 Sales and Dignified Use
 No public or private auction of any fire, “going out of business”, bankruptcy, liquidation or similar sales or auctions shall be conducted in or from the Premises without
Landlord’s prior written consent, and the Premises shall not be used except in a dignified and ethical manner consistent with the highest standards and not in a disreputable or immoral manner or in violation of the national, state or local
laws. Without limiting the generality of the foregoing, Tenant shall not operate or use the Premises as a discount house, surplus store, bargain store, or similar use.
 Article IX
Maintenance of Lease Premises
 Section 9.1 Maintenance by Landlord
 Landlord shall keep or cause to be kept the foundations, roof and structural portions of the walls of the Premises in good order, repair and condition except for damage due to the
acts or omissions of the Tenant, its employees or invitees, and except as provided in Section 9.2. Landlord shall begin repairs it is required to do hereunder as soon as reasonably practicable after receiving written notice from Tenant thereof. This
paragraph shall not apply in case of damage or destruction by fire or other casualty or condemnation or eminent domain, in which event Articles XV and XVI of this -Lease shall control the obligations of Landlord. Except as provided in this Section
9.1, the Landlord shall not be responsible for any personal property upon the Premises, or to any equipment, merchandise, stock in trade facilities or fixtures therein, all of which shall be Tenant’s responsibility.
 Section 9.2 Maintenance by Tenant and Landlord
 Tenant acknowledges that it has received the Premises
in good order and repair except for the pre-existing areas which the Landlord has been previously notified of in writing and as outlined in Exhibit A. Tenant shall at all times keep the Premises (including all entrance and vestibules) and all
portions, windows and window frames and moldings, glass (including plate glass), doors, door frames, door openers, fixtures, equipment and appurtenances thereof (including lighting, heating, electrical, plumbing, ventilating and air conditioning
fixtures and systems and other mechanical equipment whether inside or outside the Premises), and all parts of the Premises not required herein to be maintained by Landlord, in good order, condition and repair, and clean, sanitary and safe (including
but not limited to doing such things as are necessary to cause the Premises to comply with applicable laws, ordinances, rules, regulations and orders of governmental and public bodies and agencies, such as but not limited to rules of OSHA). If
replacement of equipment, fixtures and appurtenances thereto are necessary, Tenant shall replace them with the same quality, and repair all damages done by such replacement. All repairs and improvements made by Tenant pursuant to this Section 9.2
shall be done in good and workmanlike fashion, and Landlord may in its sole discretion select and/or approve all workmen, contractors and servicemen working in or about the Premises. If Landlord fails to perform its obligation hereunder, Tenant
without notice may, but shall not be obligated to perform Landlord’s obligations.
 Section 9.3 Surrender of Premises
 At the expiration or other termination of the tenancy hereby created, Tenant shall surrender the Premises in the same condition as they were on the Commencement Date, reasonable wear and tear
excepted, broom clean,
 

  with all rubbish removed, and deliver all keys for, and all combinations on locks, safes and vaults in the Premises to Landlord at Landlord’s Notice
Address.
 Article X
Signs, Awnings, Canopies, Fixtures, Alterations
 Section 10.1 Fixtures
 All fixtures installed by Tenant on or about the Premises shall be new or completely reconditioned
and shall be installed in good and workmanlike fashion.
 Section 10.2 Removal and Restoration by Tenant
 All alterations, changes and improvements, including leasehold improvements made by Tenant or made by Landlord on Tenant’s behalf, whether part of Tenant’s Work or not and whether or not paid for wholly or in
part by Landlord shall remain Tenant’s property for the Lease Term. Any alterations, changes, additions and improvements shall immediately upon the termination of this Lease become Landlord’s property, shall be considered part of the
Premises, and not be removed at or prior to the end of the Lease Term without Landlord’s written consent unless Landlord requests Tenant to remove same. If Tenant fails to remove any shelving, decoration, equipment, trade fixtures and personal
property from the Premises prior to the expiration or other termination of the Lease Term, they shall become Landlord’s property and Tenant shall repair or pay for the repair of any damage done to the Premises resulting from removing
same.
 Section 10.3 Liens and Encumbrances: Contractors
 Tenant shall promptly pay
all contractors and suppliers, and shall not permit or suffer any lien or encumbrance of any kind to attach to the Premises or any part thereof in connection with Tenant’s Work, and shall indemnify and hold harmless Landlord against the same.
Landlord shall have the right to require Tenant to furnish a bond or other indemnity satisfactory to Landlord prior to the commencement of any work by Tenant on the Premises, or if any lien attaches or is claimed, to require such bond or indemnity
in addition to all other remedies of Landlord under this Lease. Tenant agrees that it will not use any contractors, workmen or materials which might create labor conflicts or disputes with other contractors or workmen engaged by Tenant or Landlord
or other tenants of the Building or the Premises.
 Section 10.4 Signs, Awnings and Canopies
 Except as otherwise expressly provided in this Lease, Tenant will not place or permit on any exterior door or window or any wall of the Premises or otherwise, any sign, awning, canopy, advertising matter, decoration,
lettering or other thing of any kind without Landlord’s prior consent. The Landlord consents to the Tenant’s business name to appear on the plate glass and front door.
 Article XI
Insurance
 Section 11.1 By Landlord
 Landlord shall carry public liability insurance on the Common Area of Landlord’s Tract providing coverage of not less than $500,000 against liability for injury to or death of any one person and
$1,000,000 for any one occurrence and $100,000 property damage insurance, or single limit insurance in the amount of $1,000,000. Landlord shall also carry insurance for fire, extended coverage, vandalism, malicious mischief and other endorsements
deemed advisable by Landlord, insuring the improvements on Landlord’s Tract constructed by Landlord, including the Premises and all appurtenances thereto (excluding Tenant’s leasehold improvements, merchandise, trade fixtures, furnishings,
equipment, personal property and plate glass) for the full insurance value thereof~ with such deductibles as Landlord deems advisable.
 

  Section 11.2 By Tenants — Verifying amount eMerge holds on current policies
 Tenant agrees to carry (a) public liability insurance on the Premises during the term hereof, with terms and companies satisfactory to Landlord, for limits of not less than $500,000 for injury to or death of any one
person, $1,000,000 for any one occurrence, $300,000 property damage insurance, and (b) contractual liability coverage recognizing this Lease, and providing the Landlord and Tenant shall be given a minimum of ten (10) days written notice by the
insurance company prior to cancellation termination or change in such insurance, (c) insurance against fire and such other risks as are included in standard Extended Coverage insurance for the full insurable value, covering all of Tenant’s
leasehold improvements, merchandise, trade fixtures, furnishings, wall covering, floor covering, carpeting, drapes, equipment and all items of personal property of Tenant, including plate glass, located on or within the Premises, (d) worker’s
compensation insurance to the extent required by the law of the State of Florida and to the extent necessary to protect Landlord and the Premises against workmen’s compensation claims; (e) explosion insurance in respect of any boilers or
similar apparatus located on the premises in the minimum amount of $250,000; and (f) such other insurance, in such amounts and against such risks, as is commonly obtained in the case of property similar in use to the Premises and located in the
state in which the Premises are located. Tenant shall provide Landlord with copies of the policies or certificates evidencing that such insurance is in full force and effect and stating the terms thereof.
 Without limiting the foregoing, all insurance required to be maintained by Tenant pursuant to the Section 11.2 shall cover Tenant, Landlord, and the beneficiaries and agents, and employees thereof.
Tenant shall furnish Landlord with certificates evidencing the same. The minimum limits of the comprehensive general liability policy of insurance shall in no way limit or diminish Tenant’s liability under Section 11.6 and shall be subject to
increase at any time after the commencement of the fifth year of the term hereof if Landlord in the exercise of its reasonable judgment shall deem it necessary for adequate protection. Within thirty (30) days after informed of the increased limits
by Landlord, Tenant shall furnish Landlord with evidence that such demand has been fulfilled.
 Section 11.3 Mutual Waiver of Subrogation Rights
 Landlord and Tenant, and all parties claiming under them, mutually release and discharge each other from all claims and liabilities arising from or caused by any casualty or hazard
covered or required hereunder to be covered in whole or in part by insurance on the Premises or in connection with property on or activities conducted on the Premises, and waive any right of subrogation which might otherwise exist in or accrue to
any person in any case where the effect is to invalidate or increase the cost of such insurance coverage (provided, that in the case of increased cost, the other party shall have the right, within thirty (30) days following written notice, to pay
such increased cost, thereby keeping such release and waiver in full force and effect).
 Section 11.4 Waiver
 Landlord, its agents and employees, shall not be liable for and Tenant waives all claims for damages including but not limited to consequential damages, to person, property, or otherwise, sustained by Tenant or any
person claiming through Tenant resulting from any accident or occurrence in or upon any part of the Building including, but not limited to claims for damage resulting from (a) any equipment or appurtenances becoming out of repair; (b)
Landlord’s failure to keep any part of the Building in repair; (c) injury done or caused by wind, water, or other natural element; (d) any defect on or failure of plumbing, heating, or air conditioning equipment, electric wiring, or
installation thereof, gas water, and steam pipes, stairs, porches railings or walks; (e) broken glass; (f) the backing up of any sewer pipe or washstand, water closet, waste pipe, drain or other pipe or tank in, upon or about the Building or
Premises; (h) the escape of steam or hot water; (i) water, ice upon the Premises or on the Building; (j) the falling of any fixture, plaster or stucco; (k) damage to or loss by theft or otherwise of property of Tenant or others; (1) acts or
omissions of persons in the Premises, other tenants in the Building, occupants of nearby properties, or any other persons; and (m) any act of omission of owners of adjacent or contiguous property, or of Landlord, its agents or employees. All
property of Tenant kept in the Premises shall be kept at Tenant’s risk only and Tenant shall save Landlord harmless from claims arising out of damage to the same, including subrogation claims by Tenant’s insurance carrier.

  Section 11.5 Insurance - Tenant’s Operations
 Tenant
will not do or suffer to be done anything that will contravene Landlord’s insurance policies or prevent Landlord from procuring such policies in amounts and companies selected by Landlord. If anything done, omitted to be done or suffered to be
done by Tenant, upon or about the Premises shall cause the rates of any insurance effected or carried by Landlord on the Premises or other property to be increased beyond the regular rate applicable to the Premises for use for the purpose permitted
under this Lease, or such other Property for the use made thereof, Tenant will pay the amount of such increase promptly upon Landlord’s demand and Landlord shall have the right to correct any such condition at Tenant’s expense. In the
event that this Lease so permits and Tenant engages in the use, sale or storage of inflammable or combustible material, Tenant shall install chemical-extinguishing devices approved by the Fire Insurance Rating Organization and shall keep such
devices under service as required by such organization. If gas is used in the Premises, Tenant shall install appropriate gas cut-off devices (manual and automatic).
 Section
11.6 Indemnification
 Tenant shall indemnify and save harmless Landlord, Landlord’s beneficiaries and agents and employees of beneficiaries against
any and all liability, liens, claims, demands, expenses, fees, costs, fines, penalties, suits, proceedings, action and causes of action of any kind arising out of or in any way connected with this Lease or Tenants use, occupancy, management or
control of the Premises.
 Article XII
Offset Statement, Attornment, Subordination
 Section 12.1 Offset Statement
 Within ten (10) days after Landlord’s request Tenant shall deliver, in recordable
form, an executed declaration to any person designated by Landlord (a) ratifying this Lease; (b) stating the Commencement Date and termination date; and (c) certifying; (i) that this Lease is in full force and effect and has not been assigned,
modified, supplemented or amended (except by such writings as shall be stated therein); (ii) that all conditions under this Lease to be performed by Landlord have been satisfied (stating exceptions, if any); (iii) no defenses or offsets against the
enforcement of this Lease by Landlord exist (or stating those claimed); (iv) advance rent, if any, paid by Tenant; (v) the date to which rent has been paid; (vi) the amount of default deposit which is deposited with Landlord, and such other
information with respect to such default deposit, and such other information as Landlord reasonably requires. Persons receiving such statements shall be entitled to rely thereupon.
 Section 12.2 Attornment
 Tenant shall, in the event of a sale or assignment of Landlord’s interest in the Premises or the Building, or if the
Premises or Building comes into the hands of a mortgagee, ground lessor, or any other person, whether because of a mortgage foreclosure, termination of the ground lease, or otherwise attorn to the purchase or such mortgagee or other person and
recognize the same as Landlord. Tenant shall execute, at request, any attornment agreement required by any mortgagee, ground lessor, or other such person to be executed, containing such provisions as such person requires.
 Section 12.3 Subordination
 A.
Mortgage. Upon Landlord’s request, Tenant shall subordinate its rights hereunder to the liens of any mortgages or any lien resulting from any method of financing or
refinancing (hereinafter collectively referred to as “mortgage”) now or hereafter existing against all or a part of Landlord’s Tract and to all renewals, modifications, replacements, consolidations and extension thereof, and shall
execute and deliver all documents requested by a mortgagee or security holder to effect such subordination.
 

  B.
Easements. This Lease is and shall be subject and
subordinate to any and all easement agreements which may be or have been entered into or granted to any persons, whether such persons are located within or upon the Premises or not. Tenant shall execute such instruments as Landlord requests to
evidence such subordination.
 Section 12.4 Failure to Execute Instruments
 Tenant’s failure to execute instruments or certificates provided in this Article XII within fifteen (15) days after the mailing by Landlord of a written request shall constitute a default
under this Lease.
 Article XIII
Assignment, Subletting and Concessions
 Section 13.1 Consent Required
 This Lease may not be assigned in whole or in part, nor may any space, whether all or any
part of the premises, be sublet without the written consent of the Landlord. Such consent shall not be unreasonably withheld provided the use of the premises remains the same, and the party receiving such assignment or sublet has the same fmancial
standing as the Tenant and the same experience as the Tenant as it relates to the operation of the type of business being operated by the Tenant. Consent by Landlord to any assignment or subletting shall not constitute a waiver of the necessity for
such consent to any subsequent assignment or subletting. Tenant retains the full right to sublease any portion of the property during the term of the lease.
 Article XIV
Intentionally Left Blank
 Article XV
Default Deposit
 Section 15.2 Default Deposit
 Landlord hereby acknowledges receipt from Tenant of the sum of
$88,999.62 to be held by Landlord as security, without interest, for the payment of all rent and other sums of money which shall or may be payable for the full stated term of this Lease and any extension or renewal thereof, for the faithful
performance by Tenant of all other covenants and agreements made on its part in this Lease, as security for damage caused to the Premises. Tenant shall have no right to require Landlord to indemnify Tenant with said sum of money or any part thereof
with respect to any particular violation or default of Tenant. The appropriation of said sum of money or part thereof for any such default or violation shall be at all times discretionary with Landlord. Deposit shall be returned in full to Tenant at
end of lease, or extension thereof, provided all obligations of Tenant are fulfilled. Tenant agrees that if requested by Landlord with at least 30 days notice, Tenant will increase security deposit to an amount not to exceed $150,000. Landlord
acknowledges that such increase may be in the form of cash or letter of credit.
 Article XVI
Damage and
Destruction
 Section 16.2 Damage to Premises
 If the Premises are hereafter
damaged or destroyed or rendered partially untenantable for their customary use by fire or other casualty, Landlord shall apply any insurance proceeds, or, in its sole discretion, cause Tenant to apply the proceeds of insurance described in Article
XI of this Lease to promptly repair the same to substantially the 
 

  same condition which they were in immediately prior to the happening of such casualty, including all floor coverings, wall coverings, drapes and equipment
required by this Lease to be insured by the Tenant.
 From the date of such casualty until the Premises are so repaired and restored unless delayed by action of
the Tenant, the Minimum Monthly Rent payments payable hereunder shall abate for the Tenant in proportion to the part of Premises occupied by the Tenant destroyed or rendered untenantable.
 The Landlord shall not be obligated to repair and restore the Premises if such casualty is caused directly or indirectly by the negligence or intentional act of Tenant, its agents, and employees, and the Landlord shall
not be required to expend for such repair or restoration any amount in excess of the insurance proceeds recovered as a result of such damage. However, if the Premises be damaged, destroyed, or rendered untenantable for their accustomed uses to the
extent of more than 50% of the cost to replace or restore the entire Premises during or after the last five years of the original term of this Lease, then Landlord shall have the right to terminate this
Lease effective as of the date of such casualty by giving to Tenant, within 60 days after the happening of such casualty, written notice of, such termination. If such notice is not given and Landlord is required or elects to repair or restore the
Premises as herein provided, then Tenant shall promptly repair or replace its~ leasehold improvements, stock in trade, fixtures, furnishings, furniture, carpeting, wall coverings, floor coverings, drapes and equipment to the same condition as
they were in immediately prior to the casualty, and if Tenant has closed its business, Tenant shall promptly reopen for business upon the completion of such repairs. Tenant shall reimburse Landlord for any cost incurred by Landlord in connection
with any casualty to the Premises, which are not otherwise covered by the insurance described in Article XI of this Lease.
 Article
XVII
Eminent Domain
 Section 17.1 Condemnation
 If 10% or more of the Premises shall be acquired or condemned by right of eminent domain for any public or quasi public use or purpose, then Landlord at its election may within 120 days after possession of such portions of the Premises is
denied to Tenant, Landlord or other Tenants, terminate this lease by giving notice to Tenant of such election, in which event rentals shall be apportioned and adjusted as of the date of such termination. If this Lease is not be terminated by the
Landlord, then this Lease shall continue in full force and effect, and Landlord shall, within reasonable time after possession is physically taken, repair or rebuild what remains of the Premises for Tenant’s occupancy. The Minimum Annual Rent
shall be abated for the Tenant, in proportion to the number of square feet taken, until replacement or repair of the space is completed, or if not replaced, for the balance of the Lease Term.
 Section 17.2 Damages
 Except as provided below, Landlord reserves, and Tenant hereby assigns to Landlord, all rights to
damages on account of any taking or condemnation or any act of any public or quasi public authority for which damages are payable, Tenant shall execute such instruments of assignment as Landlord requires, shall join with Landlord and shall turn over
to Landlord any damages recovered in any proceeding. If Tenant fails to execute instruments required by Landlord, or to undertake such other steps as requested, Landlord shall be deemed the duly authorized irrevocable agent and attorney in fact of
Tenant to execute such instruments and undertake such steps on behalf of Tenant. Landlord does not reserve any damages payable for trade fixtures installed by Tenant at its own cost, which are not part of the realty.
 Article XVIII
Default by Tenant
 Section 18.1 Right to
Re-enter
 The following shall be considered for all purposes to be defaults under and breaches of this Lease; (a) Tenant shall fail to pay any rent or
other amount when due; (b) Tenant shall fail to perform or observe any of the 
 

  terms, provisions, conditions, and covenants of this Lease for more than ten days after written notice of such failure; (c) Landlord shall determine that
Tenant has submitted any false report or made false statement required to be furnished hereunder; (d) Tenant shall become bankrupt or insolvent or reorganization or arrangement for the benefit of creditors or an order for relief is entered in
respect of Tenant, or Tenant shall generally not pay its debts, as such debts become due; (e) Tenant shall abandon or vacate or fail to do business in the Premises for ten (10) continuous days, or (f) this Lease or Tenant’s interest herein or
in the Premises or any improvements thereon or any property of Tenant are executed upon or attached; (g) the Premises come into the hands of any person other than such persons expressly permitted under this notice (the same being hereby waived by
Tenant). Landlord, in addition to all other rights or remedies it may have, shall have the right upon default to terminate this Lease by giving notice to Tenant stating the date upon which such termination shall be effective, and shall have the
right, either before or after any such termination, to re-enter and take possession of the Premises, in each case without notice or resort to legal process and without being deemed guilty of trespass or becoming liable for any loss or damage
occasioned thereby.
 If rentals received from such reletting during any month are less than that to be paid during that month by Tenant hereunder, Tenant shall
immediately pay any such deficiency to Landlord. No re-entry or taking possession of the Premises by Landlord shall be construed as an election to terminate this Lease, unless Landlord gives a written notice of such termination.
 Article XIX
Default by Landlord
 Section 19.01. Default
Defined, Notice
 Landlord shall, in no event, be charged with default in any of the obligations hereunder unless and until Landlord shall have failed to
perform such obligations within thirty (30) days (or such additional time as is reasonably required to correct any such default and is mutually agreed upon by the parties) after written notice to Landlord by Tenant, specifically describing such
failure.
 Section l9.2 Notice to Mortgagee
 If the holder of any mortgage covering
the Premises shall have given written notice to Tenant of the address to which notices to such holder are to be sent, Tenant shall give such holder written notice simultaneously with any notice given to Landlord of any default of Landlord. If
Landlord fails to cure any default asserted in said notice within the time provided above, Tenant shall notify such holder in writing of the failure to cure, and said holder shall have thirty (30) days after receipt of such second notice to cure
such default before Tenant may take any action by reason of such default.
 Article XX
Tenant’s Property
 Section 20.1. Taxes on Leasehold
 Tenant shall be responsible for and shall pay before
delinquent all municipal, county, federal or state taxes coming due during or after the term of this Lease against any leasehold interest of Tenant or personal property of any kind owned or placed in, upon or about the Premises by Tenant.

Article XXI
Access by Landlord
 Section 21.1. Right of
Entry
 Landlord, its agents and employees, shall have the right to enter the Premises from time to time, at reasonable times and after reasonable notice to
Tenant, in order to examine the same, to show the same to
 

  prospective purchasers, lessees and other persons, to make such reasonable repairs, alterations, improvements or additions as Landlord deems desirable and to
display customary “for rent” or “for sale” signs on the Premises. Rent shall in no way abate while any such repairs, alterations, improvements, or additions are being made. During the last six (6) months of the Lease Term,
Landlord may exhibit the Premises to prospective tenants and maintain upon the Premises notices deemed advisable by Landlord. In addition, during any apparent emergency, Landlord ‘or its agents may enter the Premises forcibly without liability
therefore and without in any manner affecting Tenant’s obligations under this Lease. Nothing herein contained, however, shall be deemed to impose upon Landlord any obligation, responsibility or liability whatsoever, for any care, maintenance or
repair except as otherwise herein expressly provided.
 Article XXII
Holding-Over, Successors
 Section 22.1. Holding-Over
 If Tenant holds over or occupies the Premises beyond the Lease Term (it
being agreed that there shall be no permitted holding over or occupancy without Landlord’s prior written consent), Tenant shall pay Landlord, for each day of such holding over a sum equal to the greater of (a) twice the Minimum Monthly Rent
prorated for the number of days of such holding over, or (b) of days of such holding over, plus a prorated portion of all other amounts which Tenant would have been required to pay hereunder had this Lease been in effect. In the event of such
month-to-month, all other terms and provisions of this Lease shall be applicable to such period.
 Section 22.2 Successors
 All rights and liabilities of the respective parties hereto shall bind and inure to the several respective heirs, successors, administrators, executors and assigns of the parties and if Tenant is
more than one person they shall be bound jointly and severally by the Lease. No rights, however, shall inure to the benefit of any assignee of Tenant unless Landlord approved the assignment in writing as provided in Section 13.1 hereof.

Article XXIII
Quiet Enjoyment
 Section 23.1 Landlord’s
Covenant
 If Tenant pays the rents and other amounts herein provided and observes and performs all the covenants, terms and conditions contained in this
Lease, Tenant shall be entitled to peaceably and quietly hold and enjoy the Premises for the Lease Term without interruption by Landlord or any person or persons claiming by, through or under Landlord, subject, nevertheless, to the terms and
conditions of this Lease.
 Article XXIV
Miscellaneous
 Section 24.1. Waiver
 No waiver by Landlord or Tenant of any breach of any term, covenant or condition hereof shall be deemed a waiver of the same
or any subsequent breach of the same or any other term, covenant or condition. Tenant shall not deem the acceptance of rent by landlord a waiver of any earlier breach of any term, covenant or condition, regardless of Landlord’s knowledge of
such breach when such rent is accepted. No covenant, term or condition of this Lease or right of Landlord hereunder shall be deemed waived by Landlord or Tenant unless waived in writing.
 Section 24.2. Accord and Satisfaction
 Landlord is entitled to accept, receive and cash or deposit any payment made by
Tenant for any reason or purpose or in any amount whatsoever, and apply the same at Landlord’s option to any obligation of Tenant and the
 

  same shall not constitute payment of any amount owed except that to which Landlord has applied the same. No endorsement or statement on any check or letter
of Tenant shall be deemed an accord and satisfaction or otherwise recognized for any purpose whatsoever. The acceptance of any such check or payment shall be without prejudice to landlord’s right to recover any and all amount owed by Tenant
hereunder and landlord’s right to pursue any other available remedy.
 Section 24.3 Entire Agreement
 There are no representations, covenants, warranties, promises, agreements, conditions or undertakings, oral or written, between Landlord and Tenant other than herein set forth. Except as herein otherwise provided, no
subsequent alteration, amendment, change or addition to this Lease shall be binding upon Landlord or Tenant unless in writing and signed by them.
 Section 24.5. Force
Majeure
 Landlord and Tenant shall be excused for the period of any delay in the performance of any obligations hereunder when prevented from so doing by
cause or causes beyond Landlord or Tenant’s control which shall include, without limitation, all labor disputes, civil commotions, war, warlike operations, invasion, rebellion, hostilities, military or usurped power, sabotage, governmental
regulations or controls, fire or other casualty, inability to obtain materials (said liability not caused by Tenant or the Landlord), or through acts of God.
 Section 24.6.
Submission of Lease
 Submission of this Lease to Tenant does not constitute an offer to lease. This Lease shall become effective only upon execution and
delivery by Landlord and Tenant. Upon execution of this Lease by Tenant, Landlord is granted an irrevocable option for thirty (30) days to execute this Lease within said period and thereafter return a fully executed copy to Tenant. The effective
date of this Lease shall be the date filled in on Page 1 hereof by Landlord, which date shall be the date of execution by the last of the parties to execute this Lease.
 Section 24.7. Notices
 All notices from Tenant to Landlord required or permitted by any provisions of this agreement shall be directed to Landlord
as follows:
 XL RealtyCorp
 10315 102nd Terrace
 Sebastian, FL 32958
 To the
Attention of: Manager
   Property Management Department
 All notices from
Landlord to Tenant required or permitted hereunder shall be directed as follows:
 eMerge Interactive, Inc.
10305 102nd Terrace
Sebastian FL 32958
 All notices to be given by either party shall be written and sent by registered or certified mail, return receipt requested, postage
paid, addressed to the party intended to be notified at the address set forth above or the same may be hand delivered to the other party and, if to the Tenant, at the premises hereby remised. Landlord may deliver rent default notices to Tenant at
the Premises.
 Payments required of Tenant to Landlord shall be made payable to XL Realty.
 

  Section 24.8. Captions and Section Numbers
 This Lease shall
be construed without reference to titles of Articles and Sections, which are inserted only for convenience of reference.
 Section 24.9. Number and Gender
 The use herein of a singular term shall include the plural and use of the masculine, feminine or neuter genders shall include all others.
 Section 24.10. Broker’s Commission
 Each party hereto hereby represents and warrants that it has
caused or incurred no claims for brokerage commissions or finder’s fees in connection with the execution of the Lease, and each party shall indemnify and hold the other harmless against and from all liabilities arising from any such claims
caused or incurred by it, including, without limitation, the cost of attorney’s fees in connection therewith.
 Section 24.11. Partial Invalidity
 If any provision of the Lease or the application thereof to any person or circumstance shall to any extent be invalid or unenforceable, the remainder of this Lease shall not be
affected and shall be valid and enforceable to the fullest extent permitted by law.
 Section 24.12. Recording
 The Tenant or anyone acting on behalf of the Tenant may not record this lease or any memorandum thereof. The recordation of this lease or any memorandum thereof by the Tenant or anyone acting on behalf of the Tenant
shall be null and void and shall not constitute notice to third parties, unless said recordation is consented to in writing by the Landlord.
 Section 24.13. Applicable
Law
 This Lease shall be construed under the Laws of the State of Florida.
 Section 24.14. Mortgagee’s Approval
 If any mortgagee of the Building requires any modification of the terms and provisions of this Lease as a
condition to such financing as Landlord may desire, then landlord shall have the right to cancel this lease if Tenant fails or refuses to approve and execute such modification(s) within thirty (30) days after requested by Landlord. Upon such
cancellation by Landlord, this Lease shall be null and void and neither party shall have any liability either for damages or otherwise to the other by reason of such cancellation. In no event, however, shall Tenant be required to agree, and Landlord
shall not have any right of cancellation for Tenant’s refusal to agree, to any modification of the provisions of this Lease relating to: the amount of rent or other charges; the size and/or location of the Premises (except as otherwise provided
herein); the duration and/or commencement date of the Term hereof.
 Section 24.15. Joint and Several Liability
 If Tenant is a partnership or other business organization, the members of which are subject to personal liability, the liability of each such member shall be deemed to be joint and several.
 Section 24.16. No Discrimination
 It is intended that the Building be developed so that all prospective
Tenants thereof, and all customers, employees, licensees and invites of all Tenants shall have the opportunity to obtain all the goods, services, accommodations, advantages, facilities and privileges of the Center without discrimination because of
race, creed, color, sex, sexual orientation, national origin or ancestry. To that end, Tenant will not discriminate in the conduct 
 

  and operation of its business in the Premises against any person or group of persons because of the race, creed, color, sex, sexual orientation, national
origin or ancestry of such person or group of persons.
 Section 24.17. Attorney Fees and Collection Charges
 If any dispute under this Lease shall result in suit or arbitration, including any Court-ordered arbitration, the prevailing party shall be entitled to receive its reasonable attorney fees and costs in regard thereto,
as a part of the amount of any judgment or settlement agreement. Landlord shall also be entitled to its reasonable attorney fees and costs in regard to any notice which it provides to Tenant pursuant to this Lease or any law or rule which requires
the same as a result of the non-compliance by Tenant with the provisions hereof. Should Landlord become or be made a party to any action otherwise brought by or against Tenant in connection with or as a result of this Lease or the occupancy of the
Premises demised to Tenant hereunder, then all costs and expenses including reasonable attorney fees incurred by Landlord shall be reimbursed to Landlord by Tenant.
 Section
24.18. Monthly Rent Summary
 As more particularly set forth in Sections 4.1, 4.4, 6.2, and 4.5, Tenant’s Gross Minimum Monthly Rental as of
commencement of this Lease (subject to future adjustments as described elsewhere herein) shall be as follows:
  

	 Minimum Monthly Rent (Section 4.1)
 	  
 	 $
 	 14,336.67
 	  
 
	 Sales Tax 7% (Section 4.5)
 	  
 	 $
 	 1,003.57
 	  
 
	  
 	  
 	 
 	 
 	  
 
	 Initial net Monthly Rent
 	  
 	 $
 	 15,340.24
 	  
 

 
 Plus 100% of all common area expenses
 Section 24.19 Operating Rules and Regulations
 A copy of Landlord’s Operating Rules and
Regulations for the Building in which the Premises are situate is attached hereto and is incorporated herein. The Landlord reserves the absolute right to reasonably amend such Operating Rules and Regulations at any time during the term of this
Lease, upon fifteen (15) days prior notice to Tenant.
 Article XXV
Radon Gas
 Radon Gas - Notice to Prospective Purchaser/Tenant
 Radon is a naturally occurring radioactive gas that, when it has accumulated in a
building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and
radon testing may be obtained from your county public health unit. Pursuant to #404.056(8), Florida Statutes.
 Article XXVI
Option to Extend
 Section 26.1 Option to Extend
 In the event that the
Lease Agreement is in full force and effect and Tenant is not in default hereunder, Landlord agrees that Tenant shall have and is hereby granted, an option to extend the term of this Lease for 2 additional period(s) of 1 year(s) each provided Tenant
gives Landlord 90 days advance written notice subsequent to each option period.
 

  All terms, covenants, and provisions of this Lease shall continue in full force and effect and shall apply to each such extended term
with the exception, however, that Tenant shall not have any further option to again extend the term of this Lease upon the expiration of the extended term, if any.
 Each extended period shall begin immediately upon the expiration date of the term of this Lease or previous extension, if any, at the then prevailing market rates to be agreed by the parties.
 Article XXVII
Option to Lease Additional Square Footage
 Section 27.1
Option to Lease Additional Square Footage
 In the event that the Lease Agreement is in full force and effect and Tenant is not in default hereunder,
Landlord agrees that Tenant shall have and is hereby granted, an option to lease additional square footage, which consists of approximately 5,000 square feet of space in the adjoining building, as indicated in Exhibit C, provided Tenant gives
Landlord 30 days advance written notice subsequent to each option period.
 Term of the additional square footage will commence 30 days from date of
Tenant’s advance notice and will end March 31, 2006, unless sooner terminated as herein provided. 
 Minimum Annual Rent will be increased by Forty Two
Thousand Five Hundred Dollars and No cents ($42,500.00) per annum payable monthly on the first day of each and every month during the term hereof, in equal monthly installments of $8,500.00 in advance.
 This option will expire at the earlier of 6 months from date of lease signing or if Landlord finds a tenant for this space. Tenant will have a right of first refusal on the space should Landlord find
a tenant in the first 6 months of this lease term. Landlord will give Tenant 20 calendar days notice to decide if they will exercise their right of first refusal.
 Article XXVIII
Addendum
 EXHIBIT A
 The
following is a listing of building items that are in disrepair.
 •
A/C unit number five is not operational. Unit had to be covered with a trap to prevent water leaks. 
 •
Water leakage through A/C
unit number five has caused damage to the interior hallway near the vault.
 •
Missing tiles on patio.
 •
Wood around plant boxes is rotten and needs to be replaced.
 •
Soil at edge of patio, near
the pond, is eroding away. A section of patio has no soil beneath it.
 •
Pepper trees are invading the property, especially along the south property line and around the pond.
 EXHIBIT B
 COMMON AREAS (REPAIRING, MAINTAINING AND CLEANING)
 •
ACCESS ROADS
 •
TRUCK WAYS
 •
DRIVEWAYS
 •
MAIN ENTRANCE
SIGN
 •
LANDSCAPE
AREAS
 •
IRRIGATION SYSTEM
 

  •
COMMON WATER
 •
RETENTION PONDS AND FLOOD CONTROL DITCHES (INCLUDING PEST REMOVAL)
 •
LIFT STATION
 •
BRIDGE
 •
RETAINING WALLS (NONE EXISTS)
 •
MALL COURTS AND RAMPS (NONE EXISTS)
 •
BUS STOPS (NONE
EXISTS)
 •
LIGHTING FACILITIES.(NONE EXISTS)
 •
PEDESTRIAN SIDEWALKS (NONE EXISTS)
 •
REAL ESTATE TAXES
 LANDLORD’S
RESPONSIBILITY (REPAIRING, MAINTAINING AND CLEANING)
 •
FOUNDATION
 •
ROOF
 •
STRUCTURAL WALLS (INTERIOR AND EXTERIOR
 •
MAJOR REPAIRS -AIR CONDITIONING/VENTILATION/HEATING (for
 General Building — not Tenant installed)
 •
MAJOR PLUMBING REPAIRS (NOT CAUSED BY TENANT)
 •
MAJOR ELECTRICAL REPAIRS (NOT CAUSED BY TENANT)
 TENANT’S RESPONSIBILTY
 •
ELECTRICAL, WATER, SEWER, TELEPHONE, GARBAGE DISPOSAL
 •
BUILDING PEST CONTROL
 •
LOADING DOCKS AND LOADING
DOCK AREAS
 •
PARKING LOT
 •
SECURITY, FIRE PROTECTION SYSTEM, BURGLAR ALARMS, VIDEO MONITORING
 •
ENTRANCE/SIDEWALKS TO BUILDING
 •
PARKING LOT LIGHTING
 •
EXTERIOR BUILDING LIGHTING
 •
MAINTAIN IN GOOD WORKING ORDER ENTRANCES, WINDOWS,
DOORS, LIGHTING, HEATING, A/C, PLUMBING, FLOORS, INTERIOR.EXTERIOR WALLS, FIXTURES
 •
EQUIPMENT INSTALLED BY TENANT FOR TENANTS OPERATION
 •
CARPET CLEANING
 •
MINOR
PAINTING
 •
CLEANING AND MAINTAINING
RESTROOMS, FLOORS AND GENERAL APPREARNCE OF INTERIOR
 

  EXHIBIT C
 [insert floor
plan]
 

  Acceptance
 Landlord and Tenant have
signed and sealed this Lease, as witnessed below, in acceptance of all of its terms and conditions as of the date of the last signature below.
  

	  
 	  
 	  
 	  
 
	 
     /s/ MICHAEL CHRISTIAN
 	  
 	  
 	 
     /s/ STEVEN J. GRENFELL
 
	 
 	  
 	  
 	 
 
	 Michael Christian
 Witness
 	  
 	  
 	 Steven J. Grenfell 
 XL Realty, Corp. “Landlord”
 

  

	  
 	  
 	  
 	  
 
	 
 
 
 	  
 	  
 	 
     4/22/03
 
	 
 	  
 	  
 	 
 
	 Jessica Jensen
 Witness
 	  
 	  
 	 Date
 

  

	  
 	  
 	  
 	  
 
	 
     /s/ CHRISTINE SMITH
 	  
 	  
 	 
     /s/ JURIS PAGRABS
 
	 
 	  
 	  
 	 
 
	 Christine Smith
 Witness
 	  
 	  
 	 Juris Pagrabs
 eMerge Interactive, Inc. “Tenant”
 

  

	  
 	  
 	  
 	  
 
	 
     /s/ PAM GALLAGHER
 	  
 	  
 	 
     4/1/03
 
	 
 	  
 	  
 	 
 
	 Pam Gallagher
 Witness
 	  
 	  
 	 Date<PAGE>

                                   Exhibit 4.7

THIS PROMISSORY NOTE AND THE SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS (COLLECTIVELY, THE ACTS), AND THIS NOTE MAY NOT BE OFFERED,
SOLD, PLEDGED, OR TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO A REGISTRATION
STATEMENT UNDER THE ACTS OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

                                  RENTECH, INC.

                           Convertible Promissory Note

$__________                                                 Denver, Colorado
                                                            January __, 2003

          RENTECH, INC., a Colorado corporation (the "Company"), for value
received, hereby promises to pay to __________________________________ (the
"Holder"), the principal sum of _______________________________________________
Dollars and no/100 ($__________) or such lesser amount which shall from time to
time be owing hereunder on account of advances made by Holder to or for the
benefit or account of the Company, plus accrued interest and all other charges
owed under the terms of this Note.

     Prior to maturity, interest shall accrue on the unpaid principal balance of
the Note from the date of advance, at the rate of nine percent (9%) per annum.
The unpaid principal balance and accrued interest of this Note shall be paid in
one lump sum on January __, 2004, one year from the date of this Note (the "Due
Date"). Payment shall be made to Holder at ____________________________________.
This Note shall be convertible into Common Stock of the Company based upon the
terms and conditions that follow in this Note.

          1. Conversion into Common Stock; Conversion Price. During the first
120 days from the date of this Note, if the closing market price of the Common
Stock of the Company is at least $1.00 per share for three consecutive trading
days (as reported by Amex), the Holder may elect to convert into the
unregistered Common Stock of the Company any or all of the unpaid principal
balance and accrued interest due under this Note as of the date of conversion,
rather than receiving cash. At any time after 120 days from the date of this
Note, the Holder may elect to convert into the unregistered Common Stock of the
Company any or all of the unpaid principal balance and accrued interest due
under this Note as of the date of conversion, rather than receiving cash,
without regard to the then current market price of the Common Stock of the
Company. The Holder may elect to convert by transmitting a written request (the
"Conversion Notice") to the Company requesting conversion of that part of the
unpaid principal and accrued interest then due under the Note that the Holder
elects to convert into Common Stock (the "Conversion Sum"). All accrued interest
shall be converted before conversion of unpaid principal. If the Conversion
Notice is submitted to the Company within the first 120 days from the date of
this Note, the Holder shall identify in the Conversion Notice the dates on which
the closing market price of the Common Stock of the Company was at least $1.00
for three consecutive trading days. The Conversion Sum shall be converted as of
the date of the Conversion Notice into Common Stock of the Company at $.45 per
share. After a conversion, the Company shall issue to the Holder restricted
stock certificates representing the shares of Common Stock issuable to the
Holder (the "Conversion Shares"), as promptly as practical. The Company will
issue the certificates in accordance with Rule 144 promulgated by the Securities
and Exchange Commission (SEC) under authority of the Securities Act of 1933, as
amended (the "1933 Act"), and will cause the stock certificates to be delivered
to Holder in its name at its address

<PAGE>

maintained on the Company's records.

     2. Prepayment. The Company may prepay this Note, in whole or in part, by
payments of money, from time to time, without premium or penalty of any kind.
Notice of prepayment shall be given by the Company in writing, mailed not less
than ten (10) days prior to the date fixed for prepayment. The notice shall be
mailed by certified mail, return receipt requested, to the Holder at its address
of record or such address as it may from time to time furnish to the Company in
writing. The notice shall specify the date fixed for prepayment and the amount
to be prepaid. The prepayment shall be applied first to accrued and unpaid
interest and the balance, if any, to principal. If this Note is called for
prepayment, the Holder shall have the right to convert the outstanding balance
of principal and interest of this Note into common stock of the Company as if
the Note had not been called for prepayment, at any time up to and including,
but not after, the date fixed for its prepayment, or if such date is a Saturday,
Sunday or legal holiday, on the next succeeding business day, but not
thereafter. If the Company defaults in the payment of any prepayment amount as
to which it has given notice, the Holder may revoke any conversion election it
made based on that notice.

     3. Transfers of Note. The Holder agrees that this Note may not be sold,
pledged, hypothecated, converted, or otherwise disposed of, in whole or in part,
except by succession of law, and then only in compliance with federal and
applicable state securities laws.

     4. Registration Rights.

        4.1 Registration Statement. The Company agrees to include the Conversion
Shares to be acquired upon conversion of this Note (the "Registration Shares")
in its registration statement that it next files with the SEC relating to an
offering for its own account or the account of others under the 1933 Act of its
securities (other than on Form S-4 or Form S-8 or their then-equivalents
relating to securities to be issued solely in connection with any acquisition of
any entity or business or equity securities issuable in connection with stock
option or other employee benefits plans). The Company shall file the
registration statement with the SEC within sixty (60) days from the date of this
Note, and will use its best efforts to cause the Registration Shares to be
registered under the Securities Act of 1933, as amended (the Act), as soon as
practical after filing the registration statement. The registration statement
will include the Registration Shares as being offered for sale by Holder.

        4.2 Company's Undertakings. In furtherance of its undertaking to
register the Registration Shares issued in accordance with the terms of this
Note, the Company will:

            (a) Prepare and file with the SEC a registration statement including
all of the Registration Shares and cause the registration statement to become
and remain effective until the date that the Holder no longer owns any of the
shares acquired under this Note or any right to acquire shares of common stock
upon conversion of this Note; provided, however, the registration statement will
not be kept effective, in any event, after all rights to acquire the Conversion
Shares have terminated and the last of the shares that have been acquired are
eligible for resale without restriction under the provisions of Rule 144(k).

            (b) Prepare and file with the SEC such amendments and supplements to
the registration statement and the prospectus used in connection with the
registration statement as may be necessary to comply with the provisions of the
Act with respect to the disposition of all securities covered by such
registration statement.

            (c) Furnish to the Holder such numbers of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the
Act, and such other documents as Holder may reasonably request in order to
facilitate the disposition of the Registration Shares owned by Holder.

<PAGE>

            (d) Register or qualify the Holder's securities covered by the
registration statement under such other securities or blue-sky laws of the
jurisdictions that are reasonably appropriate for the distribution of those
securities, provided that the Company shall not be required in connection
therewith or as a condition thereto to qualify to do business or to file a
general consent to service of process in any state or jurisdiction, and further
provided, that (anything in this Section 4.2(d) to the contrary notwithstanding
with respect to the bearing of expenses) if any jurisdiction in which the
securities are qualified requires that expenses incurred in connection with the
qualification of the securities in that jurisdiction be borne by selling
shareholders pro rata, to the extent required by such jurisdiction.

            (e) Maintain listing of the shares subject to registration hereunder
on the American Stock Exchange or, in the event such listing is cancelled, to
secure authorization and quotation of the shares for trading on the Nasdaq OTC
Bulletin Board and to arrange for at least three market makers in the stock.

            (f) With a view to making available to Holder the benefits of Rule
144 (or its successor), the Company will make and keep available at all times
public information as those terms are defined under Rule 144, file in a timely
manner all reports and other documents required by the Company under the
Securities Act of 1933 and the Securities Exchange Act of 1934, and furnish to
the Holder upon request a written statement by the Company that it has complied
with the reporting requirements of Rule 144 and such further information as may
be reasonably requested by Holder.

        4.3 Holder's Information. It shall be a condition precedent to the
obligations to the Company to take any action that the Holder shall furnish to
the Company such information regarding Holder, the Registration Shares held by
Holder, and the intended method of disposition of those securities as the
Company reasonably requests and as is required in connection with the action to
be taken by the Company.

        4.4 Expenses of Registration. The Company shall bear all registration
and qualification fees and expenses (excluding underwriter's discounts,
commissions and expenses), and any additional costs and disbursements of counsel
for the Company in connection with the registration.

        4.5 No Action to Delay Registration. Holder shall not have any right to
take any action to restrain, enjoin, or otherwise delay any registration as the
result of any controversy that might arise with respect to the interpretation or
implementation of this Section 4.

<PAGE>

           4.6 Indemnification.

               (a) To the extent permitted by law, the Company will indemnify
and hold harmless the Holder, any underwriter (as defined in the Act) for it,
and each such person, if any, who controls the Holder or underwriter within the
meaning of the Act, against any losses, claims, damages, or liabilities, joint
or several, to which they may become subject under the Act or otherwise, insofar
as such losses, claims, damages, or liabilities (or actions in respect thereof)
arise out of or are based on any untrue or alleged untrue statement of any
material fact contained in the registration statement, including any preliminary
prospectus or final prospectus contained therein or any amendments or
supplements thereto, or arise out of or are based upon the omission or alleged
omission to state in it a material fact required to be stated in it, or
necessary to make the statements in it not misleading. The Company will also, to
the extent permitted by law, reimburse the Holder, the underwriter, or
controlling person for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any loss, claim, damage,
liability, or action indemnified against; provided, however, that the indemnity
agreement contained in this Section 4.6 shall not apply to amounts paid in
settlement of any loss, claim, damage, liability, or action if such settlement
is effected without the consent of the Company (which consent shall not be
unreasonably withheld), nor shall the Company be liable in any case for any
loss, claim, damage, liability, or action to the extent that it arises out of or
is based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in connection with the registration statement, preliminary
prospectus, final prospectus, or amendments or supplements thereto, in reliance
upon and in conformity with written information furnished expressly for use in
connection with the registration by the Holder, underwriter, or controlling
person, or any of them.

               (b) To the extent permitted by law, any Holder requesting or
joining in a registration will indemnify and hold harmless the Company, each of
its directors, each of its officers who have signed the registration statement,
each person, if any, who controls the Company within the meaning of the Act, and
each agent and any underwriter for the Company (within the meaning of the Act)
against any losses, claims, damages, or liabilities to which the Company or any
such director, officer, controlling person, agent, or underwriter may become
subject, under the Act or otherwise, insofar as the losses, claims, damages, or
liabilities (or actions in respect thereto) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
the registration statement, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto, or arise
out of or are based upon the omission or alleged omission to state in it a
material fact required to be stated in it or necessary to make the statements in
it not misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission was
made in the registration statement, preliminary or final prospectus, or
amendments or supplements thereto, in reliance upon and in conformity with
written information furnished by such Holder expressly for use in connection
with such registration; and each such Holder will reimburse any legal or other
expenses reasonably incurred by the Company or any such director, officer,
controlling person, agent, or underwriter in connection with investigating or
defending any such loss, claim, damage, liability, or action. The indemnity
agreement contained in this Section 4.6 shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability, or action if the
settlement is effected without the consent of the Holder (which consent shall
not be unreasonably withheld).

               (c) Promptly after receipt by an indemnified party under this
Section 4.6 of notice of the commencement of any action, the indemnified party
will, if a claim relating to the notice is to be made against any indemnifying
party under this paragraph, notify the indemnifying party in writing of the
commencement of the action. The indemnifying party will have the right to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the parties. The failure to notify
an indemnifying party promptly of the commencement of any such action, if
prejudicial to its ability to defend such action, shall relieve the indemnifying
party of any liability to the indemnified party under this paragraph, but the
omission to so notify the indemnifying party will not relieve it of any
liability that it

<PAGE>

may have to any indemnified party otherwise than under this paragraph.

      5. Representations of the Company. The Company represents and warrants to
the Holder as of the date hereof that:

         5.1 Corporate Existence. The Company: (i) is a corporation duly
organized, validly existing and in good standing under the laws of the state of
Colorado; (ii) has the power and authority to carry on its business as now
conducted and to own or hold under lease the properties it purports to own or
hold under lease; and (iii) is duly qualified, licensed or registered to
transact its business in each jurisdiction in which failure to be so qualified,
licensed or registered could or would have a material adverse effect on its
business, assets, operations or financial condition.

         5.2 Corporate Authority. The Company has all requisite power and
authority to execute and deliver this Note and to perform its obligations
hereunder. This Note has been specifically approved and issued pursuant to the
authorization of the Board of Directors and constitutes the valid and binding
obligation of the Company enforceable against it in accordance with its terms.

         5.3 No Obligation Contravened. The execution, delivery and performance
by the Company of this Note and the performance by the Company of its
obligations hereunder do not and will not contravene or constitute a default
under, or give rise to a right of termination, cancellation or acceleration of
any right or obligation of the Company under any provision of applicable law or
regulation or of any agreement, judgment, injunction, order, decree or other
instrument binding on the Company and, except as contemplated in this Note, will
not result in the imposition of any lien on any asset of the Company.

         5.4 Enforceability of Note. There is not pending, nor to the knowledge
of the Company is there now threatened, any judicial, administrative, or
arbitrable action, claim, suit, proceeding or investigation or other controversy
which might affect the validity or enforceability of this Note or any action
taken or to be taken in connection herewith or which, if adversely determined,
would have a material and adverse effect on the Company or its business, assets,
operations or financial condition.

      6. Events of Default. This Note shall become due and payable upon written
demand made by the Holder hereof if one or more of the following events, herein
called "events of default," shall occur and is not cured within ten (10) days
after the Company has received written notice from the Holder asserting that an
event of default has occurred and specifying in detail the facts that are
claimed to be an event of default:

         6.1 Default in Payment. Default in Company's obligation to make any
payment required under this Note, when and as they become due and payable;

         6.2 Other Obligations. Failure of the Company to perform any of its
obligations specified in this Note other than a payment default; provided,
however, if any failure, other than a failure to pay money, is curable, it may
be cured and no event of default will have occurred, if the Company, after
receiving written notice from Lender specifying the events alleged to constitute
a default: (a) cures the failure within thirty (30) days; or (b) if the cure
requires more than thirty (30) days, immediately initiates steps sufficient to
cure the failure and thereafter continues and completes all reasonable and
necessary steps sufficient to produce compliance within ninety (90) days after
notice is received.

         In case any one or more of the events of default specified above shall
occur and are continuing after the written notice has been given to the Company
as previously required and the Company has not cured the event of default within
the time previously described, the Holder may proceed to enforce the payment of
this Note.

      7. Miscellaneous.

<PAGE>

         7.1 Ownership. The Company may consider and treat the person in whose
name this Note is registered as the absolute owner thereof for all purposes
whatsoever (whether or not payment of this Note is overdue) and the Company
shall not be affected by any notice to the contrary. This Note shall be
registered on the books of the Company as to both principal and interest. The
transfer of the Note may be effected only by the Holder, or by transfer by
operation of law, if accompanied by evidence satisfactory to the Company
substantiating the transfer and complying with Rule 144. Communications sent to
the registered Holder shall be effective as against all Holders or transferees
of the Note who are not registered on the Company's books at the time of sending
the communications regarding transfer.

         7.2 No Shareholder Rights. The Holder shall not, by virtue of this
Note, be entitled to any rights of a shareholder in the Company, either at law
or in equity, and the rights of the Holder are limited to those expressed in
this Note.

         7.3 No Individual Recourse. No recourse shall be had for the payment of
the principal or interest of this Note against any incorporator or any past,
present, or future stockholder, officer, director, employee, or agent of the
Company or of any successor corporation, either directly or through the Company
or any successor corporation, all such liability of the incorporators,
stockholders, officers, directors, employees, and agents being hereby waived,
released, and surrendered by the Holder hereof by the acceptance of this Note.

         7.4 Binding Effect. This Note shall be binding upon, and enforceable by
and against the Company, and its permitted successors and assigns. By accepting
this Note, the Holder agrees to be bound by the terms hereof, and the Note shall
be binding upon, and enforceable by and against the Holder, and its permitted
successors and assigns.

         7.5 Collection; Attorneys Fees. In the event this Note is placed in the
hands of an attorney for collection following the occurrence of an event of
default, the Company agrees to pay all costs of collection incurred by the
Holder including reasonable attorneys' fees and costs even if a lawsuit is not
filed. In the event the maturity of the Notes is accelerated as provided in this
Note as a result of the occurrence of an event of default, then after written
notice by Holder to the Company demanding payment, this Note shall thereafter
bear interest at the rate of 11% per annum until the event of default is waived
or cured. In any litigation arising out of the terms of this Note, the
prevailing party shall be entitled to recover reasonable attorneys fees at trial
and on any appeal.

      8. Choice of Law; Jurisdiction. THIS NOTE SHALL BE GOVERNED BY AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO,
WITHOUT REFERENCE TO ITS RULES RELATING TO CONFLICTS OF LAW. THE COMPANY AND THE
HOLDER HEREBY IRREVOCABLY SUBMIT THEMSELVES TO THE JURISDICTION OF THE STATE AND
FEDERAL COURTS LOCATED IN THE CITY AND COUNTY OF DENVER, COLORADO, AND AGREE AND
CONSENT THAT SERVICE OF PROCESS MAY BE MADE UPON THEM IN ANY LEGAL PROCEEDING
RELATING TO THIS NOTE OR ANY OTHER RELATIONSHIP BETWEEN HOLDER AND THE COMPANY
BY ANY MEANS ALLOWED UNDER STATE OR FEDERAL LAW. ANY LEGAL PROCEEDING ARISING
OUT OF OR IN ANY WAY RELATED TO THIS NOTE OR ANY OTHER RELATIONSHIP BETWEEN
HOLDER AND THE COMPANY SHALL BE BROUGHT AND LITIGATED EXCLUSIVELY IN ANY ONE OF
THE STATE OR FEDERAL COURTS LOCATED IN THE CITY AND COUNTY OF DENVER, COLORADO
HAVING JURISDICTION UNLESS THE COMPANY SHALL ELECT OTHERWISE. THE HOLDER AND THE
COMPANY HEREBY WAIVE ANY CLAIM, AND AGREE NOT TO ASSERT, BY WAY OF MOTION, AS A
DEFENSE OR OTHERWISE, THAT ANY SUCH PROCEEDING IS BROUGHT IN AN INCONVENIENT
FORUM OR THAT SUCH VENUE IS IMPROPER.

      9. Notices. All notices, requests, and other communications hereunder
shall be in writing

<PAGE>

and shall be delivered by courier or other means of personal service (including
by means of a nationally recognized courier service or professional messenger
service); or sent by facsimile or mailed first class, postage prepaid, by
certified mail, return receipt requested; in all cases, addressed to each party
at the following address. All notices, requests, and other communications shall
be deemed given on the date of actual receipt or delivery as evidenced by
written receipt, acknowledgment, or other evidence of actual receipt or delivery
to the address specified above. Notice sent by facsimile shall be deemed given
on the date printed by the sender's facsimile machine confirming receipt of the
facsimile by the other party's facsimile machine. Any party hereto may from time
to time, by notice in writing served as set forth previously, designate a
different address or a different or additional person to which all such notices
or communications thereafter are to be given.

         Company:                                Holder:
         -------                                 ------
         Rentech, Inc.
         1331 17/th/ Street, Suite 720
         Denver, Colorado 80202
         Attention: Ronald C. Butz,
         Chief Operating Officer

         10. No Third-Party Beneficiaries. This Note does not create, and shall
not be construed as creating, any rights enforceable by any person not a party
to this Note.

         11. Entire Agreement. This Note (including any exhibits hereto) and the
agreements, documents, and instruments to be signed and delivered pursuant
hereto or thereto, embodies the final, complete and exclusive agreement among
the parties with respect to the subject matter of this Note and related
transactions; supersedes all prior agreements, understandings, and
representations, written or oral, with respect thereto; and may not be
contradicted by evidence of any such prior or contemporaneous agreement,
understanding, or representation, whether written or oral. No change or
modification to this Note shall be valid unless in writing and signed by the
parties hereto.

                          RENTECH, INC.

                          By: ____________________________________________
                              Ronald C. Butz, Vice President - Legal

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