Document:

Exhibit 10.73

 

INDEMNITY AGREEMENT

 

Indemnity
Agreement (this “Agreement”), dated as of March 29, 2005 and effective as of November 3,
2004, by and among RESOLUTION PERFORMANCE PRODUCTS INC., a Delaware corporation
(“Holding”), RESOLUTION PERFORMANCE PRODUCTS LLC, a Delaware limited liability
company (“RPP LLC”, and together with Holding, the “Company”), and the
indemnified party named on the signature page hereto (“Indemnitee”).

 

Introduction

 

Indemnitee
is a director and/or officer, as the case may be, of the Company. The parties
desire that the Company provide indemnification (including advancement of
expenses) to Indemnitee against any and all liabilities asserted against
Indemnitee to the fullest extent permitted by the Delaware General Corporation
Law and any other law (including statutory law and law established by judicial
decision) of the State of Delaware (collectively, “Law”), as the Law presently
exists and may be expanded from time to time, in each case on the terms and
subject to the conditions set forth herein. 
Based on such premise, and for certain good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereby agree as follows:

 

1.                                       Continued
Service.  Indemnitee will serve at the
will of the Company or under separate contract, if such exists, as a director
and/or officer, as the case may be, of the Company for so long as Indemnitee is
duly elected, appointed and qualified in accordance with the bylaws of the
Company or until Indemnitee tenders Indemnitee’s resignation to the Company.

 

2.                                       Indemnification.  The Company shall indemnify Indemnitee as
follows:

 

2.1                                 The Company shall
indemnify Indemnitee when Indemnitee was or is a party or is threatened to be
made a party to any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative (other
than an action by or in the right of the Company), by reason of the fact that
Indemnitee is or was a director, officer, employee or agent of the Company or
any of its subsidiaries, or is or was serving at the request of the Company or
any of its subsidiaries as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, or by
reason of any act or omission by Indemnitee in such capacity, against expenses
(including attorneys’ fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by Indemnitee in connection with such action,
suit or proceeding (including punitive and similar damages, to the extent
permitted by Law) if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the
Company, and, with respect to any criminal action or proceeding, had no reasonable
cause to believe that Indemnitee’s conduct was unlawful.

 

2.2                                 The Company shall
indemnify Indemnitee when Indemnitee was or is a party or is threatened to be
made a party to any threatened, pending or completed action, suit or proceeding
by or in the right of the Company or any of its subsidiaries to procure a
judgment in its favor by reason of the fact that Indemnitee is or was a
director, officer, employee or agent of the Company or any of its subsidiaries,
or is or was serving at the request of the Company or any of its subsidiaries
as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise against expenses (including attorneys’
fees) actually and reasonably incurred by Indemnitee in connection with the
defense or settlement of such action or suit if Indemnitee acted in good faith
and in a manner that Indemnitee reasonably believed to be in or not opposed to
the best interests of the Company and except that no indemnification pursuant to
this Agreement shall be made in respect of any claim, issue or matter as to
which Indemnitee shall have been adjudged to be liable to the Company or any of
its subsidiaries unless and only to the extent that the Court of Chancery of
the State of Delaware or the court in which such action, suit or proceeding was
brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, Indemnitee is
fairly and reasonably entitled to indemnity for such expenses which the Court
of Chancery or such other court shall deem proper.

 

 

2.3                                 Any
indemnification under Sections 2.1 and 2.2 (unless ordered by a court) shall be
made by the Company only as authorized in the specific case upon a
determination, in accordance with the procedures set forth in Section 3,
that indemnification of Indemnitee is proper in the circumstances because
Indemnitee has met the applicable standard of conduct set forth in such
Sections 2.1 and 2.2. Subject to Section 3.3, such determination shall be
made (1) by the board of directors of the Company (the “Board”) by a majority
vote of a quorum consisting of directors who were not parties to such action,
suit or proceeding, or (2) if such a quorum is not obtainable, or, even if obtainable,
if so directed by a majority vote of a quorum of disinterested directors, by
Independent Counsel (selected pursuant to Section 3.3) in a written
opinion, or (3) by the stockholders of the Company.

 

2.4                                 Expenses
(including attorneys’ fees) incurred by Indemnitee in defending any civil,
criminal, administrative, or investigative action, suit or proceeding shall be
paid from time to time by the Company in advance of the final disposition of
such action, suit or proceeding, within 14 days after the receipt by the
Company from Indemnitee of a Statement of Undertaking, in a form reasonably
acceptable to the parties, in which Indemnitee (1) states that Indemnitee has
reasonably incurred actual expenses in defending a civil, criminal,
administrative, or investigative action, suit or proceeding and (2) undertakes
to repay such amount if it shall ultimately be determined that Indemnitee is
not entitled to be indemnified by the Company as authorized in this Section 2.

 

2.5                                 The
indemnification and advancement of expenses provided by, or granted pursuant
to, this Section 2 shall not be deemed exclusive of any other rights to
which Indemnitee may be entitled under any bylaw, agreement, vote of
stockholders or disinterested directors, Law or otherwise, both as to action in
Indemnitee’s official capacity and as to action in another capacity while
holding such office, shall continue after Indemnitee has ceased to be a
director, officer, employee or agent of the Company, and shall inure to the
benefit of the heirs, executors and administrators of Indemnitee.

 

2.6                                 The termination
of any action, suit or proceeding by judgment, order, settlement or conviction
or upon a plea of nolo contendere or its equivalent shall not, of itself,
create a presumption that Indemnitee did not act in good faith and in a manner
which Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal action or
proceeding, had reasonable cause to believe that Indemnitee’s conduct was unlawful.

 

3.                                       Determination of
Right to Indemnification.  For the
purpose of making the determination of whether to indemnify Indemnitee in a
specific case under Section 2.3, the Board, independent legal counsel or
the stockholders of the Company, as the case may be, shall make the
determination in accordance with the following procedures:

 

3.1                                 Indemnitee shall
submit to the Board a Statement of Request for Indemnification, in a form
reasonably acceptable to the parties, in which Indemnitee states that Indemnitee
has met the applicable standard of conduct set forth in Sections 2.1 and 2.2.

 

3.2                                 Indemnitee’s
submission of a Statement of Request for Indemnification to the Board shall
create a rebuttable presumption that Indemnitee has met the applicable standard
of conduct set forth in Sections 2.1 and 2.2 and, therefore, is entitled to
indemnification under Section 2. The Board, Independent Counsel (as
defined below) or the stockholders, as the case may be, shall determine, within
45 days after submission of the Statement of Request for Indemnification,
specifically that Indemnitee is so entitled, unless it or they shall possess
clear and convincing evidence to rebut the foregoing presumption, which
evidence shall be disclosed to Indemnitee with particularity in a sworn written
statement signed by all persons who participated in the determination and voted
to deny indemnification.

 

3.3                                 If determination
as to indemnification is to be made by Independent Counsel, such Independent
Counsel shall be selected by the Board and approved by Indemnitee (such
approval not to be unreasonably withheld, delayed or conditioned). The Board
shall give written notice to Indemnitee (the “Independent Counsel Notice”)
within 10 days after the delivery of the Statement of Request for Indemnification
advising it of the identity of the Independent Counsel so selected. Indemnitee
may, within seven days after the date of the Independent Counsel Notice,
deliver to the Company a written objection to such selection. Any objection to
selection of

 

 

Independent Counsel pursuant to this Section 3.3
may be asserted only on the ground that the Independent Counsel so selected
does not meet the requirements of the definition of “Independent Counsel”
below, and the objection shall set forth with particularity the factual basis
of such assertion.  If such written
objection is timely made, the Independent Counsel so selected may not serve as
Independent Counsel unless and until a court has determined that such objection
is without merit. In the event of a timely written objection to a choice of
Independent Counsel, the Company shall have seven days to make an alternate
selection of Independent Counsel and to give written notice of such selection
to Indemnitee, after which time Indemnitee shall have seven days to make a
written objection to such alternate selection. 
Upon failure of the Board to select Independent Counsel, or upon failure
of Indemnitee to so approve, the Independent Counsel shall be selected by the
Chancellor of the State of Delaware or such other person as the Chancellor
shall designate to make such selection. The Company shall pay any and all
reasonable fees and expenses of Independent Counsel incurred by such
Independent Counsel in connection with acting pursuant hereto and provide such person
with appropriate indemnification, and the Company shall pay all reasonable fees
and expenses incident to the procedures of this Section 3.3, regardless of
the manner in which such Independent Counsel was selected or appointed.  The rights and obligations of the parties
under this Section 3.3 shall be subject to, and shall be given effect only
to the extent permitted by, applicable Law.

 

3.4                                 If the person or
persons empowered or selected under this Agreement to determine whether
Indemnitee is entitled to indemnification shall not have made a determination
within 45 days after receipt by the Company of the Statement of Request for
Indemnification by Indemnitee therefor (or, if the determination of entitlement
to indemnification is to be made by Independent Counsel pursuant to Section 3.3
of this Agreement, and such determination shall not have been made and
delivered in a written opinion within 90 days after (i) such Independent
Counsel’s being appointed, (ii) the overruling by the Court of objections to such
Counsel’s selection or (iii) expiration of all periods for the Company or
Indemnitee to object to such Counsel’s selection), the requisite determination
of entitlement to indemnification shall be deemed to have been made and
Indemnitee shall be entitled to such indemnification, absent a prohibition of
such indemnification under applicable Law; provided, however, that such 45-day
period may be extended for a reasonable time, not to exceed an additional 30
days, if the person making the determination with respect to entitlement to
indemnification in good faith requires such additional time for the obtaining
or evaluating of documentation and/or information relating to such
determination; and provided, further, that the 45-day limitation set forth in
this Section 3.4 shall not apply and such period shall be extended as
necessary if Independent Counsel is not able to make the determination pursuant
to section 3.3 of this Agreement and if within 30 days after receipt by
the Company of the Statement of Request for Indemnification the Board has
resolved to submit such determination to the stockholders for their
consideration at an annual meeting thereof to be held within 90 days after such
receipt and such determination is made thereat, or a special meeting of stockholders
is called within 30 days after such receipt for the purpose of making such
determination, such meeting is held for such purpose within 60 days after
having been so called and such determination is made thereat.

 

4.                                       Merger,
Consolidation or Change in Control.  If
the Company is a constituent corporation in a merger or consolidation, whether
the Company is the resulting or surviving corporation or is absorbed as a
result thereof, or if there is a change in control of the Company, or a sale or
other complete disposition of all or substantially all of the assets of the
Company, Indemnitee shall stand in the same position under this Agreement with
respect to the resulting, surviving, changed or acquiring corporation or other
entity as Indemnitee would have with respect to the Company if its separate
existence had continued or if there had been no change in control of the
Company or a sale or other complete disposition of all or substantially all of
the assets of the Company.

 

5.                                       Certain
Definitions.  For the purposes of this
Agreement, the following terms shall have the indicated meanings and
understandings:

 

5.1                                 The term “other
enterprise” shall include, among others, employee benefit plans and civic,
non-profit and charitable organizations, whether or not incorporated.

 

5.2                                 The term “fines”
shall include any excise taxes assessed on Indemnitee with respect to any
employee benefit plan.

 

 

5.3                                 The term “serving
at the request of the Company” shall include any service, at the request or
with the express authorization of the Company, as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other
enterprise, which service imposes duties on, or involves services by,
Indemnitee with respect to such corporation, partnership, joint venture, trust
or other enterprise, its participants or beneficiaries.  If Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best
interests of such other enterprise, its participants or beneficiaries,
Indemnitee shall be deemed to have acted in a manner not opposed to the best
interests of the Company.

 

5.4                                 The term “change
in control” shall include any change in the ownership of a majority of the
outstanding voting securities of the Company or in the composition of a
majority of the members of the Board of the Company.

 

5.5                                 The term “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither contemporaneously is, nor in the five
years theretofore has been, retained to represent (a) the Company or Indemnitee
in any matter material to either such party, (b) any other party to the
proceeding giving rise to a claim for indemnification hereunder or (c) the
beneficial owner, directly or indirectly, of securities of the Company
representing 25% or more of the combined voting power of the Company’s then
outstanding voting securities. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement.

 

6.                                       Attorneys’
Fees.  If Indemnitee institutes any legal
action to enforce Indemnitee’s rights under this Agreement, or to recover
damages for breach of this Agreement, Indemnitee, if Indemnitee prevails in
whole or in part, shall be entitled to recover from the Company all fees and expenses
(including attorneys’ fees) incurred by Indemnitee in connection therewith.

 

7.                                       Deposit of Funds
In Trust.  If the Company voluntarily
decides to dissolve or to file a petition for relief under the applicable
bankruptcy, moratorium or similar laws, then not later than 10 days prior to
such dissolution or filing, the Company shall deposit in trust for the sole and
exclusive benefit of Indemnitee a cash amount equal to all amounts previously
authorized to be paid to Indemnitee hereunder, such amounts to be used to
discharge the Company’s obligations to Indemnitee hereunder. Any amounts in
such trust not required for such purpose shall be returned to the Company. This
Section 7 shall not apply to the dissolution of the Company in connection
with a transaction as to which Section 4 applies.

 

8.                                       Amendments to
Law.  This Agreement is intended to
provide indemnity to Indemnitee to the fullest extent allowed under Law,
including but not limited to statutory law and judicial decisions. Accordingly,
to the extent permitted by Law, if the Law permits greater indemnity than the
indemnity set forth herein, or if any amendment is made to any Law expanding
the indemnity permissible under Law, the indemnity obligations contained herein
automatically shall be expanded, without the necessity of action on the part of
any party, to the extent necessary to provide to Indemnitee the fullest
indemnity permissible under Law.

 

9.                                       Miscellaneous
Provisions.

 

9.1                                 This Agreement
shall continue for so long as Indemnitee serves as a director of the Company or
any of its subsidiaries or as a director, officer, partner, employee, agent or
fiduciary of any other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise in which the Indemnitee served at the request
of the Company, and thereafter shall survive until and terminate upon the later
to occur of: (a) the final termination of all pending proceedings in respect of
which Indemnitee is granted rights of indemnification or advancement of
expenses hereunder and of any proceeding commenced by Indemnitee relating
thereto; or (b) the expiration of all statutes of limitation applicable to
possible claims arising out of Indemnitee’s services as described above.

 

 

9.2                                 This Agreement
constitutes the full understanding of the parties and a complete and exclusive
statement of the terms and conditions of this Agreement and supersedes all
prior negotiations, understandings and agreements, whether written or oral,
between the parties, their affiliates, and their respective principals,
shareholders, directors, officers, employees, consultants and agents with
respect thereto; provided, however, that no rights of Indemnitee under any
certificate of incorporation, bylaw, insurance policy, Law or other agreement
shall be limited or terminated by this Agreement.

 

9.3                                 No alteration,
modification, amendment, change or waiver of any provision of this Agreement
shall be effective or binding on any party hereto unless the same is in writing
and is executed by all parties hereto.

 

9.4                                 If a court of
competent jurisdiction declares that any provision of this Agreement is
illegal, invalid or unenforceable, then such provision shall be modified
automatically to the extent necessary to make such provision fully legal, valid
or enforceable. If such court does not modify any such provision as
contemplated herein, but instead declares it to be wholly illegal, invalid or
unenforceable, then such provision shall be severed from this Agreement, this
Agreement and the rights and obligations of the parties hereto shall be
construed as if this Agreement did not contain such severed provision, and this
Agreement otherwise shall remain in full force and effect.

 

9.5                                 This Agreement
shall be enforceable by and against the Company, the Indemnitee and their
respective executors, legal representatives, administrators, heirs, successors
and assignees.

 

9.6                                 The obligations
of Holding and RPP LLC under the Agreement shall be joint and several.

 

9.7                                 This Agreement
shall be governed by, construed under, and enforced in accordance with the laws
of the State of Delaware without reference to the conflict-of-laws provisions
thereof that would require the application of another state’s law.

 

9.8                                 This Agreement
may be executed by the parties hereto in multiple counterparts, each of which
shall be deemed an original for all purposes, and all of which together shall
constitute one and the same instrument.

 

9.9                                 The Company shall
be precluded from asserting in any judicial proceeding commenced under this
Agreement that the procedures and presumptions of this Agreement are not valid,
binding and enforceable and shall stipulate in any such court that the Company
is bound by all the provisions of this Agreement.

 

9.10                           Unless otherwise
expressly provided herein, all notices, requests, demands, consents, waivers,
instructions, approvals and other communications hereunder shall be in writing
and shall be deemed to have been duly given if personally delivered to or
mailed, certified mail return receipt requested, first-class postage paid,
addressed as follows:

 

If to the Company,
to it at:

 

Resolution
Performance Products Inc.

Resolution Performance Products LLC

1600 Smith Street, 24th Floor

Houston, TX 77002

Facsimile: 817-375-2304 

Attention: General Counsel

 

If to Indemnitee,
to Indemnitee at the address under such Indemnitee’s name on the signature page
hereto,

 

or to such other address or to
such other addressees as any party shall have last designated as its address or
addressee

 

 

by notice to the other party.
All notices and other communications given to any party in accordance with the
provisions of this Agreement shall be deemed to have been given when delivered
or sent to the intended recipient thereof in accordance with the provisions of
this Section 9.10.

 

9.11                           In the event of
payment under this Agreement, the Company shall be subrogated to the extent of
such payment to all of the rights of recovery of Indemnitee, who shall execute
all documents required and shall do all acts that may be necessary to secure
such rights and to enable the Company effectively to bring suit to enforce such
rights.Exhibit
10.16

 

LEASE AGREEMENT

 

THIS LEASE (this “Lease”) is made as of 3/28, 2005 by and between Genesis
Partners, LLC of Bozeman, Montana, herein referred to as “Landlord”, and Right
Now Technologies, Inc., a Montana corporation, of Bozeman, Montana, hereinafter
referred to as “Tenant”.

 

WITNESSETH:

 

1. Leased Property. Landlord hereby
leases to Tenant the office building located on the real property in Gallatin
County, Montana whose address is 110 Enterprise Blvd, Bozeman, Montana, consisting
of 12,912 square feet as depicted on the attached Exhibit A, together with
(i) the non-exclusive right of ingress and egress for Tenant and its
employees, agents, invitees and contractors between the building and the
nearest public streets, and (ii) the exclusive right to use the parking as
depicted on attached Exhibit A for its employees, agents, invitees and
contractors (the “premises”).  Landlord
represents and agrees that the parking lot will provide, at all times during
the term of this Lease, a parking ratio of not less than four spaces per 1000
square feet of rentable square footage in buildings whose tenants are or will
be using the parking lot.

 

2. Terms of Lease. The primary term of
this Lease shall be for sixty (60) months (unless sooner terminated as herein
provided) commencing on the later of the date upon which (i) a temporary
occupancy certificate is granted by the City Of Bozeman; and (ii) the
parties agree in writing that there has been substantial completion of the
additional works described in Exhibit B (“Additional Works”).   The target Lease commencement date is May 1,
2005.   It is a condition precedent to
commencement of the Lease that Landlord obtains a temporary occupancy
certificate and substantially completes the Additional Works by no later than August 1,
2005, or such later date agreed in writing by Tenant.

 

3. Option to Extend. Upon expiration
of the primary term of this Lease, Tenant is granted an option to extend the
term of this Lease for two (2) additional sixty (60) month periods, each (each
an “extension term”) upon the same terms and conditions as are included in this
Lease, subject, however, to renegotiation of the rent provided in paragraph 4
of this Lease. The primary term and the extension terms will be collectively
referred to in this Lease as the “term.” Tenant shall notify

 

 

Landlord within not less
than one hundred twenty (120) days prior to the expiration of the primary term
of this Lease or prior to the expiration of each extension term of Tenant’s
exercise of its option to extend this Lease, provided that in the circumstances
described in paragraph 13, the options to extend the term may be exercised
earlier as provided in paragraph 13, and if the option to extend is exercised
earlier as provided in paragraph 13, nevertheless, the rental payable as
provided in paragraph 4 shall be determined at the time and in the manner
provided in paragraph 4 and this paragraph 3. During the following sixty (60)
day period, Tenant and Landlord shall negotiate and arrive at an agreement or disagreement
of the amount of rent to be paid during the applicable extension term. If
Landlord and Tenant agree upon the rent to be paid during the applicable
extension term, Landlord and Tenant shall at the end of the sixty (60) day
period enter into a new written lease or an amendment agreement setting forth
the amount of rental Tenant shall be required to pay pursuant paragraph 4 for
the applicable extension term and any other additional terms to which Landlord
and Tenant have agreed. If Tenant and Landlord fail to agree upon the rent to
be paid during the applicable extension term during the sixty (60) day period
of negotiations, a fair market appraisal comparison of comparable properties
will be completed by an independent party upon which the Landlord and Tenant
may use to negotiate the amount of rent to be paid during the applicable
extension term. If Tenant and Landlord fail to agree upon the rent to be paid
during the applicable extension term during the sixty (60) day period of
negotiations, either Landlord or Tenant may, by written notice to the other
party given within the ensuing thirty (30) day period, elect to invoke the
arbitration provisions of this Lease to determine the rent Tenant shall be
required to pay pursuant to paragraph 4 for the applicable extension term.

 

4.
Rent. Tenant shall pay as rental for the premises for the first year of
the primary term of the Lease the sum of $187,353 computed at the rate of
$14.51 per square foot on 12,912 square feet of office space, payable monthly,
in advance on the first day of each month, in installments of $15,613 per
month, plus $3134.37/mo for tenant improvements (amortized over five years at
6% interest - see Attachment “B” for detail) for the primary term of the lease
(60 months). On each anniversary date of this Lease, beginning on May 1st, 2007, the annual rent shall be increased
by 2%. Rent shall be paid without notice or demand by Landlord to Landlord at
895 Technology Blvd, Suite 101, Bozeman, Montana 59718 or at such other
place as Landlord may direct in writing.

 

 

4A.
Additional Works. Landlord shall carry out the Additional Works (listed
in Exhibit B). In consideration for completion of the Additional Works,
Tenant shall pay to Landlord a fee comprising (i) amounts approved in
writing by Tenant, and paid by Landlord to third party contractors for
completing the Additional Works; and (ii) Landlord’s Project Management
charge, comprising 15% of the amounts approved payments referred to in
paragraph (i). Tenant shall pay such fee in equal monthly installments over the
primary (but not the renewal) term at 6% interest, on the first day of each
month. An estimate of the cost of completing the components to the Additional
Works is included in Exhibit B, and any payment made to third party
contractor that is equal to, or less than the relevant estimate shall be deemed
to be an approved payment for the purposes of paragraph (i).

 

5.
Covenants. Tenant hereby acknowledges and agrees:

 

A.
Tenant is familiar with the premises. Tenant’s taking of possession of the
premises shall be conclusive evidence that the premises were in good, clean and
sanitary condition, are in all respects satisfactory and acceptable to Tenant,
and are in the condition in which Landlord represented the premises to be.

 

B.
Tenant will keep the premises in a clean and sanitary condition during the term
of this Lease. Landlord shall have no obligation to make any alterations or
improvements of any kind in or about the premises other than as set forth in
this Lease. Tenant shall repair or replace promptly all damages to the premises
due to acts of Tenant, its agents, employees, invitees, or subtenants, reasonable
wear and tear excepted. Tenant also shall not cause any waste to be committed
in or about the premises; Tenant will keep the premises free and clear of any
and ail refuse and debris; and Tenant agrees to observe all rules and
regulations of the County of Gallatin and State of Montana in any way relating
to maintenance, use and occupancy of the premises.

 

C.
Tenant will not use or permit anything to be used upon the premises which is
likely to deface or damage the premises, or do anything that will increase the
rate of insurance thereof (unless Tenant first agrees to pay any increased
premiums), or permit anything to be done upon the premises or in the areas,
sidewalk or streets adjacent to the premises, which will amount to or create a
nuisance.

 

D.
Tenant shall make no alterations in or additions to the premises without first
obtaining Landlord’s written consent, which consent will not be unreasonably
withheld, delayed or

 

 

conditioned. Tenant shall
not erect or permit to be erected upon the premises any signs without written
consent of Landlord, which consent will not be unreasonable withheld, delayed
or conditioned.

 

E.
Tenant agrees, with respect to all alterations or improvements to the premises
or any part thereof, which Tenant undertakes with written consent of Landlord,
that Tenant shall in all instances save Landlord and the premises forever
harmless and free from all damages, loss and liability of every kind and
character which may be claimed, asserted or charged, including liability to
adjacent owners or tenants, based upon the acts or negligence of Tenant or its
agents, contractors or employees, for any negligence, or for the failure of any
of them to observe and comply with the requirements of the law, including the
regulations and the authorities in the City of Bozeman, and Tenant will
preserve and hold Landlord and the premises free and clear from all Hens or encumbrances  for labor and materials  furnished. 
Any and  all  alterations, 
additions,  and improvements made
by Tenant to or upon the premises (with the exception of furnishings, equipment,
and removable trade fixtures installed by Tenant) shall, upon installation, be
deemed attached and part of the premises, provided however, that if prior to
termination of this Lease, or within fifteen (15) days thereafter, Landlord so
directs by written notice to Tenant, promptly following said termination of
this Lease, Tenant shall remove such of the said additions, improvements,
fixtures, and installations placed upon the demised premises by Tenant as shall
by designated in said notice from Landlord, and Tenant shall repair any damages
occasioned by such removal. Further, in this regard, Tenant hereby agrees that
it will, during the continuance of this Lease, keep the premises and interior
of the premises in good condition and repair, reasonable wear and tear
excepted.

 

F.
Tenant may use and occupy the premises for the purpose of a business office and
all activities incidental thereto, including the manufacture of software, and
not otherwise. Tenant shall not use or knowingly permit any part of the
premises to by used for any unlawful purposes and shall comply with all applicable
laws and regulations of the County of Gallatin, State of Montana, and the
United States of America.

 

G.
Tenant agrees that Landlord shall not be liable for any damage or injury to
persons or property or for the loss of property sustained by Tenant or by any
other person or persons on the premises due to any act of negligence of Tenant.

 

 

H.
Tenant agrees that it will not assign this Lease or sublease any portion of the
premises or permit this Lease to transferred by operation of law or otherwise
without the written consent of Landlord, which consent shall not be
unreasonably withheld, delayed or conditioned; provided, however, that any
merger and reorganization of Tenant for the purpose of incorporating under
another state law shall not be deemed to be an assignment for purposes of this
paragraph and shall not require Landlord’s consent, or that any merger or
change in control of the Tenant shall not be deemed to be an assignment for the
purposes of this paragraph and shall not require Landlord’s consent. Tenant
shall remain responsible under this Lease for any portion of the premises
sublet by Tenant (even if Landlord approved the subletting), unless Landlord
shall agree otherwise. Any subtenant to whom any portion of the property is
sublet shall agree to abide by the provisions of this Lease which are
applicable to the sublet portion of the premises, before Landlord will be
required to consent to the proposed subleasing of any portion of the premises.

 

I.
Tenant will permit Landlord, at all reasonable times and after reasonable
notice to Tenant at Landlord’s sole risk and expense and in a manner that
causes the least practical disruption to Tenant, to enter upon the premises (i) to
inspect their condition and to make reasonable and necessary repairs for the
protection and preservation of the premises, (ii) to ascertain whether
Tenant has performed its covenants under this Lease, and (iii) to show the
premises to persons who may wish to rent the premises after the expiration of
the term of this Lease or to purchase the premises, provided that any showing
of the premises to persons who may wish to rent the premises shall be only
during the last year of the term of the Lease.

 

J.
Tenant, upon leaving the premises, shall at its own expense, remove all dirt, rubbish,
and refuse and upon failure to do so, Landlord may immediately, without further
notice, do so at Tenant’s expense. Tenant shall immediately pay Landlord’s
expenses upon receipt of a bill for the same from Landlord.

 

6.
Default and Landlord’s Rights. If the premises shall be deserted or
vacated, or if a trustee or receiver of a substantial portion of Tenant’s
property is appointed, or if an order is entered against Tenant for relief
under Title 11 of the United States Code, or there shall be a default in
payment of any rent for more than five (5) days after written notice of
such default from Landlord, or there shall be a default in the performance or
any other covenant, agreement, condition, rule or regulation herein
contained, or hereafter established with Tenant’s consent, which shall continue
for

 

 

more than thirty (30) days
(or, if the default is not curable within thirty (30) days and if Tenant begins
to cure the default within such thirty (30) day period and diligently pursues
curing the same, then for such for additional period as shall be reasonably
necessary to cure the default) after Tenant’s receipt of written notice of such
default from Landlord, Tenant’s rights in this Lease (if Landlord so elects,
and such election is reserved) shall thereupon terminate and end without the
necessity for any further notice, and Landlord shall have the right to re-enter
and repossess the premises in the manner permitted by law and dispossess or
remove there from Tenant or other occupants thereof and their effects without
being liable to any prosecution or action therefore. Landlord may likewise, at
Landlord’s option, and in addition to any other remedies which Landlord may
have upon default, let and relet the premises in whole or in part, altering,
changing or subdividing the same as in its reasonable judgment may accomplish
the best rental results, and upon such terms and for such length of time,
whether lesser or greater than the unexpired portion of the term of this Lease,
as Landlord may reasonably see fit, and Tenant shall be liable to Landlord for
any deficiency between the remaining unpaid rental and the rental so procured
by Landlord for the period of said letting or reletting which is during the
remaining term of this Lease and shall further be liable for the reasonable
costs of reletting and alterations or changes required to enable Landlord to
let and relet the premises, the deficiency and costs not to exceed, however,
the balance of the unpaid rental due from tenant for the remaining term of the Lease.
Landlord any institute action for the whole of any such deficiency immediately
upon effecting a letting or reletting and shall not thereafter be precluded
from further like action in the event such letting or relettng shall not cover
the entire unexpired portion of the term hereof, or Landlord may monthly, or at
such greater intervals as it may see fit, require Tenant to pay said deficiency
then existing, and Tenant agrees to pay said deficiency to Landlord from time
to time when called upon by Landlord to do so. Should this Lease not be
terminated, Landlord may, notwithstanding such letting or reletting, at any
time thereafter elect to terminate it. Tenant, upon termination as herein
provided, will yield quiet and peaceful possession to Landlord, subject to any
letting or reletting Landlord has effected of the premises. If Landlord shall
give the notice of termination as herein provided, then, at the expiration of
such period, this Lease shall terminate as completely as if that were the date
herein fixed for the expiration of the term of this Lease, and Tenant shall
then surrender the premises to Landlord.

 

 

7.
No Waiver of Breach. Tenant agrees that no consent, expressed or
implied, by Landlord to any breach of Tenant’s covenants or agreements shall be
deemed a waiver of any succeeding breach.

 

8.
Notice. It is agreed that all notices herein required to be given shall
be effective upon mailing, postage prepaid, addressed to Landlord at 895
Technology Blvd, Suite 101 Bozeman, Montana 59718 or addressed to Tenant
at 45 Discovery Drive, Bozeman, Montana or such other place as either may
designate in writing to the other. In addition, any notice from Landlord to Tenant
relating to this Lease or the premises shall be deemed duly served if
personally delivered to an officer of Tenant at the premises.

 

9.
Surrender Upon Termination. Tenant shall, upon termination of the term,
peacefully and quietly surrender the premises to Landlord in as good condition
as it was at the beginning, reasonable use and wear and damage by the elements
excepted. Tenant shall remove all of its personal property and trade fixtures
(repairing any damage to the premises such removal causes) so that Landlord can
repossess and enjoy the premises not later than noon on the day upon which the term
ends, whether upon notice or by holdover or otherwise. Landlord shall have the
right to enforce this covenant by ejectment, for damages, or for breach of any
other condition or covenant of this Lease.

 

10.
Peaceful Possession. Landlord covenants and agrees, at its sole expense,
that the exterior, structure, the roof and the heating, ventilating, air
conditioning, electrical, plumbing and all utility systems on or in the
premises shall be maintained in good repair and tenantable condition, excepting
damage resulting from neglect or intentional acts of Tenant, its agents,
employees, contractors and invitees. So long as Tenant pays the rent and
performs the covenants and agreements herein contained, Tenant shall peacefully
and quietly hold the premises for the primary term and any extensions thereof.

 

11.
Time of Essence. Time is of the essence of this Lease with respect to
the performance by Tenant and Landlord of their obligations hereunder.

 

12.
Attorney’s Fees. In the event any action to enforce any of the terms of
this Lease is brought, the prevailing party shall be entitled to its reasonable
attorney’s fees as provided in paragraph 25.

 

 

13.
Liability – Premises. Landlord shall not be responsible or liable (i) for
any personal injury to Tenant or any other person on the premises, or for
injury or damage to personal property or improvements of Tenant or of any third
party on the premises unless such injury or damage is caused by the neglect or
omissions of Landlord, its agents or employees; (ii) for injury or damage
caused by the neglect or omissions of Tenant or its agents, contractors,
invitees or employees; or (ii) on account of any inconvenience or
annoyance or damage caused by fire, explosion, earthquake, flood or other
causes beyond the control of Landlord. Tenant will obtain general liability
insurance in an amount of not less than $1,000,000 on which Landlord shall be
named as an additional insured. If Tenant shall sublet any portion of the
premises, the subtenant shall also furnish the general liability insurance
required of Tenant or be covered under Tenant’s policy.

 

In
addition, Tenant will at all times hold Landlord harmless from any claim or
damages by reason of any personal injury, property damage, or otherwise,
arising from its operation or use of the premises or any of Tenant’s equipment
used in connection therewith, provided the claim or damage is not caused by
negligence or omission of Landlord, its agents, contractors or employees.

 

Landlord
shall carry, at its sole expense, all risk casualty insurance, covering the
premises, in the amount equal to the full replacement cost of the premises. The
policy shall be endorsed so that it may be terminated or amended only upon not
less than thirty (30) days prior written notice to Tenant The policy shall
contain no co-insurance clause, a deductible amount not exceeding $5,000, and
the insurance company’s consent to the waivers of subrogation set forth in the
next sentence. Landlord waives any claims it may have against Tenant and any
rights to grant subrogation rights to others for any loss, damage or claim
which is covered by Landlord’s insurance. In the event that the premises shall
be rendered wholly or partially untenantable by fire, explosion, earthquake,
Act of God, or any other cause beyond the control of Landlord (collectively,
the “casualties”), Landlord (i) shall rebuild and restore the premises as
soon as reasonably practicable to the premises’ former condition and use but
only (A) to the extent of the insurance proceeds Landlord receives, and (B) if
the casualties do not occur during the last two (2) years of the term (and
for this purpose the term shall include all extension terms Tenant notifies
Landlord it will exercise on or before thirty (30) days after the occurrence of
any of the casualties), or (ii) in circumstances not described in clause (ii) may,
at its option, either terminate this Lease by written notice given to Tenant
within sixty (60) days after the casualty or commence to repair the premises
within sixty (60) days after the casualty.

 

 

If Landlord shall elect or
be required to repair the premises, the rental hereunder shall be abated in
proportion to the part of the premises that are untenantable, and no rental
shall be payable hereunder for the period that said premises shall be wholly
untenantable, provided that in the event any of the casualties is caused by
carelessness, negligence or improper conduct of Tenant, or of Tenant’s agents,
employees, contractors or invitees, the rental shall not be so abated.

 

All
fixtures or improvements placed on the premises by Tenant, which shall be
damaged or destroyed, shall be repaired and replaced by Tenant at its own
expense and not at the expense of Landlord.

 

If
any of the glass or plate glass in the premised shall be damaged or become
broken from the inside, Tenant shall replace, at Tenant’s own cost and expense,
all such glass or plate glass broken. If the glass is damaged or broken from
the outside, Landlord shall replace the same at its own cost and expense.

 

14.
Repairs and Maintenance. Landlord shall bear the entire expense of all
repairs, maintenance, alterations, or improvements to the basic structure
(exterior walls, roof, heating, ventilating, air conditioning, electrical,
plumbing and other systems on the premises). Landlord shall, in addition, bear
the entire expense for the repair and maintenance of the parking area, including
landscaping and keeping the parking area free of rubbish, ice and snow. Tenant
shall pay at its own expense, all repairs, maintenance, and alterations of
Tenant installed fixtures or improvements and utilities.

 

15.
Utilities, Taxes Etc. Tenant shall pay for all telephone, water/sewer,
electricity, natural gas, fire system monitoring, security systems, and
janitorial services used in the operation of the premises. Tenant agrees to pay
for replacement of light bulbs. Landlord shall pay for all real property taxes
and assessments levied and assessed against the premises and for snow removal
and lawn maintenance.

 

16.
No Smoking Policy. There will be no smoking allowed anywhere in the
premises by anyone. It will be Tenant’s responsibility to convey to and enforce
this policy by its employees, agents and all other invitees.

 

17.
Paragraph Headings. The paragraph headings in this instrument are for
convenience only and do not limit or construe the contents or any paragraphs.

 

 

18.
Severability. It is the intent of the parties that if a part of this
Lease is invalid, all valid parts that are severable from the invalid part
shall remain in effect. If a part of this Lease is invalid in one or more of it
applications, that part remains in effect in all valid applications that are severable
from the invalid applications.

 

19.
Landlord’s Liability. The term “Landlord” as used herein shall mean only
the owner or owners at the time in question of the premises. In the event of
any transfer of such title or interest, Landlord herein named (and in case of
any subsequent transfers the then grantor) shall be relieved from and after the
date of such transfer of all liabilities as respects Landlord’s obligations
thereafter to be performed, provided that any funds in the hands of Landlord or
the then grantor at time of such transfer in which Tenant has an interest shall
be delivered to the grantee, who shall assume the obligations of Landlord or
the then grantor to Tenant with respect to those funds. The obligations contained
in this Lease to be performed by Landlord shall, subject to the foregoing
provisions of this paragraph 19, be binding on Landlord’s successors and assigns.

 

20.
Supersedes. This Lease supersedes all prior agreements between the
parties.

 

21.
Exercise of Rights. The omission of Landlord or Tenant to exercise any
right provided for on the default of the other at any time shall not preclude
Landlord or Tenant from the exercise of such right at any subsequent default of
the other or be deemed a waiver thereof or the right to do so.

 

22.
Binding Effect. This Lease shall be binding upon and inure to the
benefit of the heirs, successors, administrators, and permitted assigns of the
parties hereto.

 

23.
Security Deposit. At the execution of this Lease, Tenant will pay
Landlord the sum of $10,000 as a security deposit. Landlord shall hold and use
the security deposit as security for Tenant’s performance of its obligations
under this Lease. At the termination of this Lease and if at that time Tenant
has fully complied with all of its obligations under this Lease, Landlord shall
return the security deposit, without interest (or the part of the security
deposit which Landlord has not applied to satisfy Tenant’s obligations under
this Lease), to Tenant

 

24.
Governing Law. This Agreement and all matters relating thereto shall be
governed by the laws of Montana.

 

25.
Arbitration. Any dispute under this Lease shall be decided by binding
arbitration initiated and conducted in accordance with the commercial
arbitration rules of the American Arbitration Association (“AAA”). The
parties shall decide upon the arbitrator. If the parties are

 

 

unable to decide upon the
arbitrator within ten (10) days after a notice from one party to the other
that a dispute exists under this Lease, the AAA shall select the arbitrator.
The decision of the arbitrator shall be binding. All costs of arbitration shall
be borne by the party the arbitrator determines to be the non-prevailing party.
Such costs shall include the costs and reasonable attorneys’ fees of the
prevailing party.

 

 

IN
WITNESS WHEREOF, the parties have hereunto set their hands as of the date and
year first written above.

 

 

	
  GENESIS PARTNERS, LLC –
  Landlord

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  By:

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  /s/ Steve Daines

  	
   

  	
  3/24/05

  	
   

  
	
  Steve Daines, member – Landlord

  	
   

  	
  date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Clair Daines

  	
   

  	
  3/28/05

  	
   

  
	
  Clair Daines, member – Landlord

  	
   

  	
  date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Greg Gianforte

  	
   

  	
  3/28/05

  	
   

  
	
  Greg Gianforte, member –
  Landlord

  	
   

  	
  date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Right Now
  Technologies, Inc. – Tenant

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  /s/ Alan Rassaby

  	
   

  	
  3/17/05

  	
   

  
	
   

  	
  Alan Rassaby

  	
   

  	
  date

  	
   

  
	
   

  	
  Company Secretary

  	
   

  	
   

  	
   

  
							

 

 

Exhibit A

 

Exterior

 

 

First Floor

 

 

 

Second Floor

 

 

 

Exhibit B

 

Additional Works and Estimated Costs

 

	
  1.

  	
  Electrical
  upgrades

  	
   

  	
  $

  	
  49,450

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Auto transfer
  switch

  	
   

  	
  $

  	
  13,340

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Fire sprinkler
  up-grade for server room

  	
   

  	
  $

  	
  11,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  A/C upgrades for
  server room

  	
   

  	
  $

  	
  87.837

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Total estimated

  	
   

  	
  $

  	
  162,127

  	
   

  

 

Five
Year Amortization at 6% annual rate = estimated $3134.37/mo

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}]]