Document:

exv10w2

Exhibit 10.2

Commercial Lease

(Riverpoint Lots 1, 2, 3 5 including 

Buildings at 4015, 4025, 4035, 4045 and 4055 S. Riverpoint Parkway)

between

COLE OF PHOENIX AZ, LLC,

a Delaware limited liability company

(“Landlord”)

and

Apollo Group, Inc.,

an Arizona corporation

(“Tenant”)

dated as of

March 24, 2011

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE 1 SUMMARY OF TERMS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 LEASED PREMISES
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 3 TERM
	 	 	2	 
	 
	 	 	 	 
	3.1. Term
	 	 	2	 
	3.2. Renewal Terms
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 4 RENT
	 	 	5	 
	 
	 	 	 	 
	4.1. Initial Fixed Rent
	 	 	5	 
	4.2. Rent Adjustment
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 5 USE
	 	 	5	 
	 
	 	 	 	 
	5.1. General
	 	 	5	 
	5.2. Compliance with Law
	 	 	6	 
	5.3. Existing Title and Condition of Premises
	 	 	6	 
	5.4. Signs
	 	 	7	 
	5.5. Hours of Operation
	 	 	7	 
	5.6. Parking
	 	 	7	 
	5.7. Landlord’s Covenants, Representations and Warranties
	 	 	7	 
	5.8. Tenant’s Covenants, Representations and Warranties
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 6 MAINTENANCE AND REPAIRS
	 	 	10	 
	 
	 	 	 	 
	6.1. Tenant’s Maintenance
	 	 	10	 
	6.2. Allocation of Capital Costs
	 	 	11	 
	6.3. Surrender
	 	 	11	 
	6.4. Net Lease
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 7 UTILITIES
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 8 ALTERATIONS
	 	 	12	 
	 
	 	 	 	 
	8.1. Alterations
	 	 	12	 
	8.2. Permitted Alterations
	 	 	12	 
	8.3. Liens
	 	 	13	 
	8.4. Removal
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 9 INSURANCE
	 	 	13	 
	 
	 	 	 	 
	9.1. Tenant’s Insurance
	 	 	13	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	Page	 
	9.2. Policies
	 	 	15	 
	9.3. Modification to Insurance Coverage
	 	 	16	 
	9.4. Mutual Waiver of Subrogation
	 	 	16	 
	9.5. No Representation of Coverage Adequacy
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 10 INDEMNITY
	 	 	16	 
	 
	 	 	 	 
	10.1. Tenant’s Indemnity
	 	 	16	 
	10.2. Landlord’s Indemnity
	 	 	17	 
	10.3. Survival
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 11 DAMAGE OR DESTRUCTION
	 	 	17	 
	 
	 	 	 	 
	11.1. Destruction
	 	 	17	 
	11.2. Termination
	 	 	18	 
	11.3. Release
	 	 	18	 
	11.4. Waiver
	 	 	19	 
	 
	 	 	 	 
	ARTICLE 12 TAXES AND ASSESSMENTS
	 	 	19	 
	 
	 	 	 	 
	12.1. Payment
	 	 	19	 
	12.2. Personal Property
	 	 	19	 
	12.3. Rent Tax
	 	 	19	 
	12.4. Contest of Taxes
	 	 	19	 
	 
	 	 	 	 
	ARTICLE 13 CONDEMNATION
	 	 	20	 
	 
	 	 	 	 
	13.1. Condemnation
	 	 	20	 
	13.2. Right to Terminate
	 	 	20	 
	13.3. Rent Reduction
	 	 	21	 
	13.4. Restoration of Premises
	 	 	21	 
	13.5. Award
	 	 	21	 
	13.6. Temporary Condemnation
	 	 	21	 
	 
	 	 	 	 
	ARTICLE 14 ASSIGNMENT AND SUBLETTING
	 	 	22	 
	 
	 	 	 	 
	14.1. Assignment
	 	 	22	 
	14.2. Sublease
	 	 	22	 
	14.3. Information
	 	 	23	 
	14.4. Permitted Assignment
	 	 	23	 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	Page	 
	14.5. Release of Landlord
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 15 DEFAULTS; REMEDIES
	 	 	24	 
	 
	 	 	 	 
	15.1. Tenant’s Defaults
	 	 	24	 
	15.2. Landlord’s Remedies
	 	 	25	 
	15.3. Landlord’s Default
	 	 	27	 
	15.4. Tenant’s Remedies
	 	 	28	 
	15.5. Default Interest; Late Charge
	 	 	29	 
	15.6. Lender’s Right to Cure
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 16 HAZARDOUS MATERIALS
	 	 	29	 
	 
	 	 	 	 
	16.1. Definitions
	 	 	29	 
	16.2. Prohibition on Hazardous Materials
	 	 	30	 
	16.3. Exception to Prohibition
	 	 	30	 
	16.4. Compliance with Environmental Laws
	 	 	31	 
	 
	 	 	 	 
	ARTICLE 17 MISCELLANEOUS
	 	 	31	 
	 
	 	 	 	 
	17.1. Subordination; Attornment; Nondisturbance
	 	 	31	 
	17.2. Landlord’s Access
	 	 	32	 
	17.3. Estoppel Certificates
	 	 	32	 
	17.4. Holding Over
	 	 	32	 
	17.5. Brokers
	 	 	32	 
	17.6. Notices
	 	 	33	 
	17.7. Waivers
	 	 	33	 
	17.8. Reasonable Conduct and Consent
	 	 	33	 
	17.9. Dispute Resolution
	 	 	33	 
	17.10. Document Review
	 	 	34	 
	17.11. Attorneys’ Fees
	 	 	34	 
	17.12. Authority
	 	 	34	 
	17.13. Construction
	 	 	34	 
	17.14. Binding Effect
	 	 	34	 
	17.15. W-9
	 	 	35	 
	17.16. Severability
	 	 	35	 

-iii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	Page	 
	17.17. Time of Essence
	 	 	35	 
	17.18. Counterparts
	 	 	35	 
	17.19. Incorporation of Prior Agreements; Amendments
	 	 	35	 
	17.20. Force Majeure
	 	 	35	 
	17.21. CC&Rs
	 	 	35	 
	 
	 	 	 	 
	ARTICLE 18 EXCULPATION OF LANDLORD
	 	 	36	 
	 
	 	 	 	 
	ARTICLE 19 DAMAGE TO TENANT’S PROPERTY
	 	 	36	 
	 
	 	 	 	 
	ARTICLE 20 LIMITATION ON LIABILITY
	 	 	36	 
	 
	 	 	 	 
	20.1. Limitations
	 	 	36	 
	20.2. No Required Obligation
	 	 	36	 
	 
	 	 	 	 
	ARTICLE 21 FINANCIAL STATEMENTS
	 	 	37	 
	 
	 	 	 	 
	21.1. Financial Statements
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 22 LEASE CHARACTERIZATION
	 	 	37	 
	 
	 	 	 	 
	22.1. Intent of the Parties
	 	 	37	 
	22.2. Waiver
	 	 	37	 
	22.3. Material Inducement
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 23 RIGHT OF FIRST OFFER
	 	 	37	 
	 
	 	 	 	 
	23.1. Grant of Right of First Offer
	 	 	37	 
	23.2. Excluded Transaction
	 	 	38	 

-iv-

 

REFERENCE GUIDE TO DEFINED TERMS

	 	 	 
	Defined Term	 	Location in Lease
	4015 Garage

	 	Article 2
	4025 Building

	 	Article 2
	4035 Building

	 	Article 2
	4045 Building

	 	Article 2
	4055 Garage

	 	Article 2
	AAA

	 	Paragraph 17.9
	Acceptance Notice

	 	Paragraph 23.1
	Adjustment Date

	 	Paragraph 4.2
	Affiliate

	 	Paragraph 5.1
	Alterations

	 	Paragraph 8.1
	Applicable Laws

	 	Paragraph 5.2
	Bankruptcy Code

	 	Paragraph 15.1.2
	Buildings

	 	Article 2
	Capital Improvement

	 	Paragraph 6.2
	Casualty Termination Notice

	 	Paragraph 11.1.2
	CC&Rs

	 	Paragraph 6.4
	Certifying Party

	 	Paragraph 17.3
	Condemnation

	 	Paragraph 13.1
	Condemnation Date

	 	Paragraph 13.1
	Current Market Rate

	 	Paragraph 3.2.4.1
	Default Rate

	 	Paragraph 15.5.1
	Environmental Activity[ies]

	 	Paragraph 16.1.3
	Environmental Law[s]

	 	Paragraph 16.1.2
	Fixed Rent

	 	Paragraph 4.1
	Force Majeure Event

	 	Paragraph 17.20
	Garages

	 	Article 2
	Hazardous Material[s]

	 	Paragraph 16.1.1
	Initial Adjustment Date

	 	Paragraph 4.2
	Involved Parties

	 	Paragraph 10.1
	Landlord

	 	Introductory Paragraph
	Landlord Indemnified Parties

	 	Paragraph 10.1
	Landlord Party

	 	Article 18
	Lease

	 	Introductory Paragraph
	Lift Station Lease

	 	Paragraph 14.2.2
	Market Rate Notice

	 	Paragraph 3.2.4.2
	Negotiation Period

	 	Paragraph 3.2.4.2
	Objection Notice

	 	Paragraph 3.2.4.2
	Offer

	 	Paragraph 23.1
	Offered Property

	 	Paragraph 23.1
	Original Term

	 	Paragraph 3.1
	Parking Agreement

	 	Paragraph 5.6

-v-

 

	 	 	 
	Defined Term	 	Location in Lease
	Premises

	 	Article 2
	Project

	 	Article 2
	Property Taxes

	 	Paragraph 12.1
	Remaining Balance

	 	Paragraph 13.4
	Renewal Notice

	 	Paragraph 3.2.2
	Renewal Term/Renewal Terms

	 	Paragraph 3.2
	Renewal Termination Notice

	 	Paragraph 3.2.4.4
	Rent

	 	Paragraph 4.1
	Requesting Party

	 	Paragraph 17.3; Paragraph 17.10
	Restoration

	 	Paragraph 11.1.1
	Restore

	 	Paragraph 11.1.1
	Reviewing Party

	 	Paragraph 17.10
	Structures

	 	Article 2
	Sublease

	 	Paragraph 14.2.1
	Temporary Monthly Market Rate

	 	Paragraph 3.2.4.5
	Tenant

	 	Introductory Paragraph
	Tenant Indemnified Parties

	 	Paragraph 10.2
	Tenant Party

	 	Article 18
	Term

	 	Paragraph 3.1
	Triggering Event

	 	Paragraph 5.7.4
	Unamortized Capital Improvement Costs

	 	Paragraph 6.2

-vi-

 

COMMERCIAL LEASE

     This Commercial Lease (the “Lease”) is entered into as of the date first listed on the cover
page of this Lease, by and between COLE OF PHOENIX AZ, LLC, a Delaware limited liability company
(“Landlord”), and APOLLO GROUP, INC., an Arizona corporation (“Tenant”), in consideration of the
mutual terms and conditions hereof.

ARTICLE 1

SUMMARY OF TERMS

     Each reference in this Lease to any of the following terms shall incorporate the data stated
for that term. Other terms are as defined in the Lease.

	 	 	 	 	 

	(a)

	 	Landlord and Landlord’s
	 	Cole OF Phoenix AZ, LLC
	 

	 	Address for Notices 
(Paragraph
17.6):
	 	c/o Cole Real Estate Investments 

2555 East Camelback Road, Suite 400
	 

	 	 	 	Phoenix, Arizona 85016
	 

	 	 	 	Attention: Legal Department
	 
	 	 	 	 
	(b)

	 	Tenant and Tenant’s
Address for Notices 
(Paragraph
17.6):
	 	Apollo Group, Inc.

c/o Apollo Development Corp. 

4025 S Riverpoint Pkwy
	 

	 	 	 	Phoenix AZ 85040-0723
	 

	 	 	 	Attn: President
	 
	 	 	 	 
	(c)

	 	Street Address of Premises

(Article 2):
	 	4015 S. Riverpoint Parkway, Phoenix,
Arizona 
85040 (Lot 1) (sometimes
referred to as 3050 E. Illini);
	 
	 	 	 	 
	 

	 	 	 	4050 S. Riverpoint Parkway, Phoenix,
	 

	 	 	 	Arizona 85040 (Lot 2)
	 
	 	 	 	 
	 

	 	 	 	4025 S. Riverpoint Parkway, Phoenix,
	 

	 	 	 	Arizona 85040 (Lot 3)
	 
	 	 	 	 
	 

	 	 	 	4035, 4045 and 4055 S. Riverpoint
	 

	 	 	 	Parkway, Phoenix, Arizona 85040 (Lot 5)
	 
	 	 	 	 
	(d)

	 	Term (Article 3):
	 	Twenty (20) years, together with the
Renewal 
Terms (if exercised) as provided
in Paragraph 3.2.
	 
	 	 	 	 
	(e)

	 	Commencement Date
	 	March 24, 2011
	 

	 	(Paragraph 3.1):	 	 
	 
	 	 	 	 
	(f)

	 	Initial Annual Fixed Rent
(Paragraph 4.1):
	 	$11,985,000 plus applicable
taxes as provided below.
	 
	 	 	 	 
	(g)

	 	Permitted Uses
(Paragraph 5):
	 	Office, administrative, educational,
classroom,
 ancillary retail (including
food and beverage service)
and related
purposes, and, subject to Paragraph 5,
all other lawful uses.

1

 

ARTICLE 2

LEASED PREMISES

     Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, subject to the terms
and conditions contained herein, the property legally defined as Lots 1, 2, 3 and 5 and Tracts A
through L of the Riverpoint project (the “Project”), as shown on the plat map recorded in Book 566
of Maps, page 04, records of Maricopa County, Arizona and all improvements, fixtures and located
thereon (collectively the “Premises”), including, without limitation, (a) the 10-story building
located at 4025 S. Riverpoint Parkway on Lot 3 (the “4025 Building”) containing approximately
267,962 rentable square feet and the two 6-story buildings located at 4035 S. Riverpoint Parkway on
Lot 5 (the “4035 Building”) and 4045 S. Riverpoint Parkway on Lot 5 (the “4045 Building” and
together with the 4025 Building and the 4035 Building, the “Buildings”) each containing
approximately 165,851 rentable square feet, (b) the surface parking areas located on Lot 1, 2, 3
and 5, (c) the 1,779-space parking garage located at 4015 S. Riverpoint Parkway (sometimes referred
to as 3050 E. Illini) on Lot 1 (the “4015 Garage”) and the 2,000-space parking garage located at
4055 S. Riverpoint Parkway on Lot 5 (the “4055 Garage” and together with the 4015 Garage, the
“Garages”) and (d) all areas subject to the license agreement(s) with the Salt River Project
Agricultural Improvement and Power District, over the area more commonly referred to as the San
Francisco canal. The Buildings and the Garages are referred to herein as the “Structures.”

ARTICLE 3

TERM

     3.1. Term. The “Original Term” of this Lease shall be for the period set forth in
Article 1 above, commencing on the Commencement Date. As used in this Lease, “Term”, if
used without further qualification, shall mean the Original Term together with any Renewal Terms,
as applicable. Regardless of the specific day of the month on which the Term commenced, it shall
not expire until the last day of the final month of the Term, the length of the Original Term or
the final Renewal Term, as applicable, being extended by the necessary number of days to accomplish
such result. For example, if the Commencement Date occurs on March 15, 2011, the Original Term
shall expire on March 31, 2031.

     3.2. Renewal Terms. Provided that Tenant is not in default beyond the expiration of
any applicable grace periods under this Lease at the time of exercise of its option, Tenant shall
have the option to renew this Lease for the entire Premises for four (4) terms of five (5) years
each (each, a “Renewal Term” and collectively, the “Renewal Terms”), as follows:

     3.2.1. Commencement of Renewal Term. The Renewal Term shall commence on the
day following expiration of the Original Term or, if applicable, the day following
expiration of the preceding Renewal Term.

2

 

     3.2.2. Exercise of Option to Renew. Tenant may exercise the option to renew by
a written notice to Landlord (a “Renewal Notice”), given not less than four hundred
fifty-five (455) days prior to the last day of the Original Term or, if applicable, the then
existing Renewal Term. In no event shall Tenant have the right to lease less than the
entire Premises during a Renewal Term.

     3.2.3. Terms of Lease During Renewal Terms. The terms and conditions of the
Lease for the Renewal Terms shall be identical with the terms and conditions of the Original
Term (including the rent adjustment set forth in Paragraph 4.2) except for Fixed
Rent and except that Tenant will not have any options to renew this Lease beyond the four
(4) Renewal Terms. The Fixed Rent at the commencement of each Renewal Term shall be equal
to ninety-five percent (95%) of the greater of (i) the then Current Market Rate, as defined
in Paragraph 3.2.4 below or (ii) the average of the Fixed Rent in effect for the
preceding five (5) years of the Term. Without limiting the foregoing, Landlord shall not
have any obligation to pay any build out, refurbishment or other allowance during the
Renewal Term, or to pay leasing commissions to Tenant’s broker, if any.

     3.2.4. Determination of Fixed Rent During Renewal Terms. The Current Market
Rate when Tenant is exercising an option for a Renewal Term shall be determined as follows:

     3.2.4.1. “Current Market Rate” shall be defined as the bona fide rental rate
then being offered in “arm’s length” transactions to prospective tenants for
comparable space in comparable buildings in the same geographic submarket as the
Premises and taking into account the value of the parking spaces available as part
of the Premises, and the fact that no brokerage fees are to be paid in the
transaction.

     3.2.4.2. If Tenant exercises its option to renew, Landlord shall notify Tenant
in writing (the “Market Rate Notice”) of Landlord’s determination of the Current
Market Rate on or before three hundred sixty-five (365) days prior to the expiration
of the expiring term. If, within fifteen (15) days after receipt of such Market
Rate Notice, Tenant fails to notify Landlord in writing of Tenant’s objection to
Landlord’s proposed Current Market Rate, Tenant shall be deemed to have accepted the
Current Market Rate specified in the Market Rate Notice and Landlord will prepare an
appropriate amendment to this Lease. If, within such 15-day period, Tenant objects
to Landlord’s proposed Current Market Rate (the “Objection Notice”), the parties
shall attempt to negotiate their differences in good faith within fifteen (15) days
following Landlord’s receipt of Tenant’s Objection Notice (the “Negotiation
Period”). If the parties fail to agree on a Current Market Rate during the
Negotiation Period, then the Current Market Rate shall be determined in accordance
with the provisions of Paragraphs 3.2.4.3 below.

     3.2.4.3. If Tenant and Landlord do not agree (or are not deemed to have
agreed) on a Current Market Rate as provided in Paragraph 3.2.4.2 above,
each party shall appoint a local third-party appraiser who (a) is a member of the

3

 

American Institute of Real Estate Appraisers, or if it shall not then be in
existence, a member of the most nearly comparable organization, (b) has a minimum of
five (5) years experience in the Phoenix, Arizona commercial office market, (c) is
licensed by the state of Arizona, and (d) is not affiliated with either party. Each
party shall notify the other as to the name and address of the appraiser selected
within ten (10) days after the expiration of the Negotiation Period. If either
party fails to designate an appraiser within such 10-day period, the single
appraiser so selected shall determine the Current Market Rate. If two appraisers
are timely selected, both appraisers shall independently make a determination of the
Current Market Rate, then meet in person within thirty (30) days following the
selection of the second appraiser to exchange such written determinations
simultaneously, and thereafter notify both parties of each of the respective
appraiser determinations. If the difference between the average effective Current
Market Rate for the applicable Renewal Term calculated by each appraiser is 15% or
less, the parties may mutually agree to elect to average the rates calculated by the
two appraisers, such option to be exercised by written notice from each party to the
other party and to the appraisers within five (5) days after receipt of notice by
the appraiser(s) of the Current Market Rate calculation. If both parties elect to
average the appraisals, the two appraisals will be averaged and the resulting figure
will be the Current Market Rate. If both parties do not elect to average the
appraisals or if the difference between the rates calculated by each appraiser is
more than 15%, the two appraisers shall together select a third appraiser within
fifteen (15) days following the determination of both appraisals. The third
appraiser shall satisfy the same professional qualification requirements set forth
above. The third appraiser must select one or the other of the two calculations of
Current Market Rate submitted by the other two appraisers (and such third appraiser
shall not be entitled to vary from the rates presented by the two appraisers). Both
Tenant and Landlord agree that they will not contact or directly or indirectly
interfere with the third appraiser’s selection of the Current Market Rent. The
third appraiser will notify the parties within ten (10) days of being selected to
make the Current Market Rate determination. Subject to Paragraph 3.2.4.4,
the determination of the third appraiser shall be final and binding on Landlord and
Tenant. The fees of any third appraiser shall be borne equally by the parties.

     3.2.4.4. Notwithstanding anything contained herein to the contrary, if the
difference between the Current Market Rates determined by the two appraisers
selected by the parties under Paragraph 3.2.4.3 above was more than 15%,
Tenant shall have the option to withdraw its Renewal Notice within ten (10) days
following the date Tenant receives written notice of the amount of the Current
Market Rate determined by the third appraiser by giving written notice to Landlord
(the “Renewal Termination Notice”), and the Lease shall expire at the expiration of
the then-applicable Term; provided, however, that if there is less than one (1) year
remaining on the then-applicable Term when the Renewal Termination Notice is given,
the Lease shall be automatically extended so that the Term expires one year from the
Renewal Termination Notice. If Tenant does not
withdraw its Renewal Notice within such 10-day period, Tenant shall be deemed

4

 

to have waived its right to withdraw the Renewal Notice, and shall be bound by the
conclusion of the third appraiser as determined under Paragraph 3.2.4.3
above.

     3.2.4.5. If the parties fail to agree upon the Current Market Rate hereunder
prior to the commencement of the applicable Renewal Term, and until the Current
Market Rate is determined in the manner provided herein, or such appraisal process
is delayed by either party due to a default in the appraisal process, Tenant agrees
to pay Fixed Rent equal to one hundred ten percent (110%) of the previous Fixed Rent
under this Lease (“Temporary Monthly Market Rate”) until the Current Market Rate is
determined. Within twenty (20) days of the determination of the Current Market
Rate, Landlord shall refund to Tenant or Tenant shall pay to Landlord, as
applicable, for the elapsed period, the difference between the Temporary Monthly
Market Rate paid by Tenant and the Fixed Rent finally determined based on the final
determination of the Current Market Rate.

ARTICLE 4

RENT

     4.1. Initial Fixed Rent. Tenant shall pay Landlord, as an annual “Fixed Rent” for the
Premises, a sum equal to the Annual Fixed Rent set forth in Paragraph 1(f), as may be
adjusted pursuant to Paragraph 4.2, plus applicable taxes as provided in Paragraph
12.3 below. Annual Fixed Rent shall be payable in equal monthly installments on or before the
first day of each and every calendar month during the Term of this Lease in lawful money of the
United States to Landlord at the address stated herein or to such other persons or at such other
places as Landlord may designate in writing. All rental and other sums which Tenant is required to
pay hereunder shall be the unconditional obligation of Tenant and shall be payable in full when due
without any setoff, abatement, deferment, deduction or counterclaim other than as expressly
provided in this Lease. The Fixed Rent and any other amounts payable hereunder are collectively
referred to as the “Rent.” Fixed Rent for any period during the Term which is for less than one
month shall be a pro rata portion of the installment.

     4.2. Rent Adjustment. Commencing on the first day of the month following the first
anniversary of the Commencement Date (the “Initial Adjustment Date”) and on each anniversary of the
Initial Adjustment Date thereafter (including on each anniversary occurring during any Renewal
Term, other than the one occurring on the first day of a Renewal Term) (each an “Adjustment Date”),
the Fixed Rent for the next succeeding twelve month period shall be adjusted to be an amount equal
to the Fixed Rent for the immediately preceding twelve month period multiplied by One Hundred and
Two percent (102%).

ARTICLE 5

USE

     5.1. General. The Premises may be used for office, administrative, educational,
classroom, ancillary retail (including food and beverage service), and related purposes and any
other lawful uses by Tenant and its Affiliates (defined below) that would not
(i) violate the provisions of this Lease, including, without limitation, Paragraphs
5.2 and Article 16 hereof, or

5

 

any covenant, condition, agreement or easement applicable
to the Premises, (ii) exceed the load bearing capacity of the floor of the Premises, (iii)
materially increase the dangers to human health or the environment, (iv) pose an unreasonable risk
of harm to any person or entity (whether on or off the Premises), (v) be contrary to any
requirement of any insurer or cause a material increase to the costs of insurance for the Premises,
or (vi) constitute a public or private nuisance. Tenant shall not commit or allow any waste to be
committed on any portion of the Premises. Tenant shall not use or permit the use of the Premises
for any unlawful purpose. Tenant shall not permit any rubbish, refuse or garbage to accumulate or
create a fire hazard in or about the Premises. Tenant may cease operations at the Premises at any
time or from time to time during the Term as long as such discontinuance of operations shall not
activate, make applicable or otherwise trigger any right of any person or entity (other than
Landlord) to acquire the Premises whether by option, right of first refusal, right of first offer
or otherwise. If Tenant does discontinue operations as permitted by this Paragraph, Tenant shall
(i) give written notice to Landlord within thirty (30) days following the discontinuation, (ii)
provide adequate protection and maintenance of the Premises during any period of vacancy, and (iii)
comply with all Applicable Laws and otherwise comply with the terms and conditions of this Lease.
Notwithstanding anything herein to the contrary, Tenant shall timely pay any Rent during any period
in which Tenant discontinues operations at the Premises, including, without limitation, the monthly
installment of Fixed Rent on the first day of each month. Without Tenant’s prior written consent
and subject to the provisions of Paragraph 17.1, Landlord will not execute or record
against the Premises, or otherwise subject the Premises to any restrictions, agreements,
encumbrances, liens, easements or rights which could or would (a) prevent or impair the use of the
Premises for the purposes permitted in this Lease or (b) conflict with or diminish the rights
herein granted to Tenant. For purpose of this Lease, an “Affiliate” shall mean any corporation or
business entity which controls, is controlled by or is under common control with another entity.

     5.2. Compliance with Law. Tenant shall comply with all present and future laws,
ordinances, orders, rules, regulations and requirements of all federal, state and municipal
governments, courts, departments, commissions, boards and officers, or any other body exercising
functions similar to those of any of the foregoing (“Applicable Laws”), foreseen or unforeseen,
ordinary as well as extraordinary, which may be applicable to the Premises, the Tenant’s use of the
Premises, and the sidewalk, curbs and vaults adjoining the Premises or to the Tenant’s use of the
Premises. Except as expressly provided in Paragraph 6.2 and Article 13, Tenant
shall be responsible for all costs of such compliance.

     5.3. Existing Title and Condition of Premises. Tenant accepts the Premises in its
condition “AS IS” existing as of the Commencement Date and also accepts the Premises and this Lease
subject to all Applicable Laws governing and regulating the use of the Premises and subject to all
covenants, conditions and restrictions affecting the Premises and the rights of parties in
possession. Tenant has examined the Premises and title to the Premises and has found all of the
same satisfactory for all of Tenant’s purposes. Except for any representation or warranty which
may be specifically set forth in this Lease, Tenant acknowledges that neither Landlord nor
Landlord’s agents have made any representations or warranties, including without limitation, any
representation or warranty as to condition or fitness of the Premises and improvements thereto,
zoning compliance of the Premises or the suitability of the Structures thereon for the conduct of
Tenant’s business.

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     5.4. Signs. Tenant shall have the right to install any signs it deems necessary or
appropriate in connection with its use and operation of the Premises; provided that all signs shall
comply with all Applicable Laws. Tenant shall properly maintain all signs during the Term. Upon
expiration of the Lease, Tenant shall remove, at its sole cost and expense, all signs placed in and
around the Premises by Tenant and shall repair any damage to the Premises caused by the removal of
such signs.

     5.5. Hours of Operation. Except in the case of emergency or Force Majeure Event (as
defined in Paragraph 17.20) or as provided in Paragraph 15.2.1, Tenant shall have
full and unimpaired access to the Premises at all times (24 hours per day, 7 days per week).

     5.6. Parking. During the Term, Tenant and its Affiliates shall have (i) the exclusive
right to use all parking areas located on Lots 1, 3 and 5 of the Premises; and (ii) the
non-exclusive right to use all parking areas located on Lot 2 of the Premises, subject to that
certain Parking Lease and Easement Agreement dated June 29, 2004, executed by Riverpoint Lots 4/8,
LLC, and Riverpoint Lots 4/8 (15), LLC, as grantee, and Riverpoint Lot 2, LLC, as grantor, recorded
June 29, 2004, as Instrument No. 2004-0744089, records of Maricopa County, Arizona (the “Parking
Agreement”). Landlord shall have no liability to Tenant for the construction of the parking areas
located on Lot 2, nor shall Landlord be responsible for the compliance of any additional obligation
under the Parking Agreement during the Term of the Lease.

     5.7. Landlord’s Covenants, Representations and Warranties. Landlord represents and
warrants to and covenants with Tenant as follows:

     5.7.1. Organizational Status. Landlord is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of Delaware is
qualified to do business in the State of Arizona, and has full power and authority to enter
into and to perform its obligations under this Lease. The persons executing this Lease on
behalf of Landlord have full power and authority to do so and to perform every act and to
execute and deliver every document and instrument necessary or appropriate to consummate the
transactions contemplated by this Lease.

     5.7.2. Entity Action. All entity action on the part of Landlord and its
constituents which is required for the execution, delivery and performance by Landlord of
this Lease has been duly and effectively taken.

     5.7.3. Enforceable Nature of Lease. This Lease constitutes legal, valid and
binding obligations of Landlord, enforceable against Landlord in accordance with its terms,
except to the extent that enforceability may be limited by applicable bankruptcy,
insolvency, fraudulent conveyance, moratorium, or similar laws affecting the enforcement of
creditors’ rights generally, and subject, as to enforceability, to general principles of
equity, regardless of whether enforcement is sought in a court of law or equity.

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5.7.4. Third-Party Servicer; Title IV Compliance.

     5.7.4.1. Landlord represents that neither Landlord nor any of its Affiliates
has ever been terminated under the Higher Education Act of 1965, as amended, for any
reason involving the acquisition, use or expenditure of Federal, State or local
government funds.

     5.7.4.2. Landlord, upon its knowledge and belief, represents that neither it,
nor any of its employees, directors, officers, subcontractors or Affiliates has
been: (a) convicted of, or pled nolo contendere or guilty to, a crime involving the
acquisition, use, or expenditure of Federal, State, or local government funds; or
(b) administratively or judicially determined to have committed fraud or any other
material violation of law, in each case involving Federal, State, or local
government funds.

From time to time during the Term, Landlord agrees to promptly reaffirm to Tenant the
representations in Paragraph 5.7.4 upon Tenant’s request. If Landlord breaches any
of the representations, warranties or covenants set forth in this Paragraph 5.7.4
and (a) such breach results in Landlord or its members being debarred from contracting
with the Federal government, (b) in the event of any breach resulting from the actions of
any employee, director, officer, such individual is not terminated within thirty (30) days
following the conviction, plea or administrative or judicial determination, or (c) in the
event of any breach resulting from the actions of any subcontractor, the contract with such
subcontractor is not terminated within thirty (30) days following the conviction, plea or
administrative or judicial determination (each a “Triggering Event”), Tenant shall have the
right to terminate this Lease by written notice to Landlord within thirty (30) days
following the date Tenant receives written notice of a Triggering Event. The termination
shall be effective on the date specified by Tenant in such notice, which date shall be not
earlier than thirty (30) days nor later than one hundred eighty (180) days following the
giving of such notice. Upon the effective date of such termination, Landlord and Tenant
shall have no further obligations under this Lease except for those obligations which
survive the expiration or earlier termination of this Lease pursuant to its terms.

     5.7.5. Non-Discrimination. Landlord agrees not to discriminate against any
employee or applicant for employment on the basis of any category or characteristic
protected by applicable federal, state, or local law. In addition, the provisions of 41
C.F.R. Section 60-1.4(a), 41 C.F.R. Section 60-300.5(a), 41 C.F.R. Section 60-741.5(a), and
29 C.F.R. Part 471, Appendix A to Subpart A are, if applicable, incorporated by reference.

     5.7.6. Conflict of Interest. Landlord acknowledges and understands that Tenant
has a Conflict of Interest Policy, which prohibits any employee, officer or director of
Tenant or an Affiliate of Tenant from directly or indirectly receiving any financial or
other benefit from Landlord, whether as a result of this Lease or otherwise. If Landlord
becomes aware of a relationship with any employee, officer or director of Tenant or an
Affiliate of Tenant during the term of this Lease that results in such employee, officer or

8

 

director receiving any direct or indirect financial or other benefit from Landlord,
Landlord shall disclose such relationship to Tenant in writing within fifteen (15) calendar
days of learning about such relationship.

     5.7.7. Gratuity. Landlord acknowledges and understands that Tenant has a Gift
and Entertainment Policy, which prohibits employees, officers, directors, agents and
representatives of Tenant and its Affiliates from accepting any gifts, gratuities, favors or
advantages from Landlord except for insignificant items of low value such as business
lunches and advertising items (for example, pens, calendars and the like).

     5.7.8. Anti-Terrorism. Landlord represents and warrants to Tenant that
Landlord is not, and is not acting, directly or indirectly, for or on behalf of, any person
or entity named as a “specially designated national and blocked person” (as defined in
Presidential Executive Order 13224) on the most current list published by the U.S. Treasury
Department Office of Foreign Assets Control, and that Landlord is not engaged in this
transaction, directly or indirectly, on behalf of, and is not facilitating this transaction,
directly or indirectly, on behalf of, any such person or entity. Landlord also represents
and warrants to Tenant that neither Landlord nor its constituents or Affiliates are in
violation of any laws relating to terrorism or money laundering, including the aforesaid
Executive Order and the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56), as amended.
With respect to parties owning indirect interests in Landlord, Tenant acknowledges that
Landlord has relied exclusively on its U.S. broker-dealer network to implement the normal
and customary investor screening practices mandated by applicable law and FINRA regulations
in making the foregoing representations. Landlord hereby agrees to defend, indemnify and
hold harmless Tenant from and against any and all claims, damages, losses, risks,
liabilities and expenses (including reasonable attorneys’ fees and costs) arising from or
related to any breach of the foregoing representations and warranties by Landlord.

     5.7.9. Quiet Enjoyment. So long as Tenant is not in default under the terms
and conditions of this Lease beyond the expiration of any applicable notice and cure period,
Tenant and its Affiliates shall be entitled to peaceably maintain possession of and quietly
enjoy the Premises and all of the rights granted hereunder for the duration of the Term of
this Lease.

     5.8. Tenant’s Covenants, Representations and Warranties. Tenant represents and
warrants to and covenants with Landlord as follows:

     5.8.1. Organizational Status. Tenant is a corporation duly organized, validly
existing and in good standing under the laws of the State of Arizona and has full power and
authority to enter into and to perform its obligations under this Lease. The persons
executing this Lease on behalf of Tenant have full power and authority to do so and to
perform every act and to execute and deliver every document and instrument necessary or
appropriate to consummate the transactions contemplated by this Lease.

9

 

     5.8.2. Entity Action. All entity action on the part of Tenant and its
constituents which is required for the execution, delivery and performance by Tenant of this
Lease has been duly and effectively taken.

     5.8.3. Enforceable Nature of Lease. This Lease constitutes legal, valid and
binding obligations of Tenant, enforceable against Tenant in accordance with its terms,
except to the extent that enforceability may be limited by applicable bankruptcy,
insolvency, fraudulent conveyance, moratorium, or similar laws affecting the enforcement of
creditors’ rights generally, and subject, as to enforceability, to general principles of
equity, regardless of whether enforcement is sought in a court of law or equity.

     5.8.4. Anti-Terrorism. Tenant represents and warrants to Landlord that Tenant
is not, and is not acting, directly or indirectly, for or on behalf of, any person or entity
named as a “specially designated national and blocked person” (as defined in Presidential
Executive Order 13224) on the most current list published by the U.S. Treasury Department
Office of Foreign Assets Control, and that Tenant is not engaged in this transaction,
directly or indirectly, on behalf of, and is not facilitating this transaction, directly or
indirectly, on behalf of, any such person or entity; provided, however, the representation
contained in this sentence shall not apply to any person or entity to the extent such
person’s or entity’s interest is in or through a U.S. Publicly-Traded Entity. “U.S.
Publicly-Traded Entity” is an entity whose securities are listed on a national securities
exchange or quoted on an automated quotation system in the U.S. or a wholly-owned subsidiary
of such an entity. Tenant also represents and warrants to Landlord that neither Tenant nor
its constituents or Affiliates are in violation of any laws relating to terrorism or money
laundering, including the aforesaid Executive Order and the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001 (Public Law 107-56), as amended. Tenant hereby agrees to defend, indemnify and hold
harmless Landlord from and against any and all claims, damages, losses, risks, liabilities
and expenses (including reasonable attorneys’ fees and costs) arising from or related to any
breach of the foregoing representations and warranties by Tenant.

     5.8.5. Licenses and Permits. All required licenses and permits, both
governmental and private, to use and operate the Premises for the uses permitted under this
Lease are in full force and effect.

ARTICLE 6

MAINTENANCE AND REPAIRS

     6.1. Tenant’s Maintenance. Tenant shall keep and maintain the entire Premises,
including, without limitation, all structural portions of the Premises, including the foundation,
floor slab, structural load-bearing walls and columns, and the roof, utility, sprinkler, life
safety, lighting, mechanical, plumbing, electrical, HVAC, and all other systems, and all
alterations and additions made by Tenant pursuant to the provisions hereof, all walks, parking and
loading areas, lawns and landscaping, water features, fences and signs included with the Premises,
in good repair and in a clean and safe condition. Tenant shall replace all interior,exterior or other glass

10

 

in or about the Premises that may be broken during the Term with glass
at least equal to the specification and quality of the glass so replaced. Tenant shall be
responsible for all costs incurred in repairing or maintaining the Premises pursuant to this
Paragraph, other than those amounts which are Landlord’s responsibility in accordance with
Paragraph 6.2. If Tenant fails to perform Tenant’s obligations under this Paragraph and
such failure continues following the expiration of the applicable notice and cure periods, Landlord
may, at its option, enter upon the Premises and put the same in good order, condition and repair,
and all reasonable out-of-pocket costs incurred by Landlord, together with interest thereon at the
Default Rate, shall become due and payable as additional rental to Landlord upon receipt of a
written invoice specifying the amount paid by Landlord. Landlord shall not be liable for the
inconvenience, annoyance, disturbance, loss of business or other damage of Tenant by reason of
making such repairs or the performance of any such work, or on account of bringing materials,
tools, supplies or equipment into or through the Premises during the course thereof, and the
obligations of Tenant under this Lease shall not be affected thereby. Tenant waives any right to
(a) require Landlord to maintain, repair, replace or rebuild all or any part of the Premises or (b)
make repairs at the expense of Landlord, pursuant to any Applicable Laws at any time in effect.

     6.2. Allocation of Capital Costs. Tenant agrees not to defer any maintenance, repair
or replacement work constituting a Capital Improvement (as hereinafter defined) to the last
twenty-four (24) months of the Term. If, during the last twenty-four (24) months of the Term, any
Capital Improvement is required to be made to the Premises, then the cost of such Capital
Improvement shall be amortized over the useful life of such Capital Improvement (based on the
mutual agreement of Landlord or Tenant or if they cannot agree, pursuant to Paragraph 17.9)
and Landlord shall, upon the expiration of this Lease, reimburse Tenant for the unamortized portion
thereof that extends beyond the expiration of the Term (such unamortized amount, the “Unamortized
Capital Improvement Costs”); provided that, Landlord shall not be required to reimburse Tenant for
such amount if this Lease is terminated prior to the expiration of the Term by reason of a Tenant
default or if Tenant purchases the Premises pursuant to Article 23. The term “Capital
Improvement” shall mean any maintenance, repair or replacement, the cost of which would be
characterized as a capital expense under GAAP.

     6.3. Surrender. On the expiration of the Term, or on any sooner termination of this
Lease, Tenant shall surrender the Premises to Landlord in no worse condition and repair as existed
on the Commencement Date, broom clean, except for ordinary wear and tear and damage due to casualty
not otherwise required be repaired under this Lease. Tenant shall repair any damage to the
Premises occasioned by the removal of Tenant’s alterations and improvements (including, without
limitation, its trade fixtures, furnishings and equipment), which repair shall include, without
limitation, the patching and filling of holes and repair of structural damage.

     6.4. Net Lease. With the exception of Landlord’s obligations to reimburse Tenant for
any Unamortized Capital Improvement Capital Costs as set forth in Paragraph 6.2, the Fixed
Rent payable hereunder shall be net to Landlord, so that this Lease shall yield to Landlord the
rentals specified during the Term, and that all costs, expenses and obligations of every kind and
nature whatsoever relating to the operation, management, maintenance, repair, restoration and
replacement of the Premises and all improvements and
appurtenances related thereto or any part thereof shall be performed and paid by Tenant,
including, without limitation, all expenses, assessments, dues or other charges accruing against
the Premises under any covenant, condition,

11

 

agreement or easement applicable to the Premises,
including, without limitation, the Parking Agreement or the Declaration of Covenants, Conditions,
Easements and Restrictions for Riverpoint Business Park dated July 6, 2001, and recorded July 6,
2001 as Instrument No. 2001-0604763, Official Records of Maricopa County, Arizona, as previously or
subsequently supplemented and/or amended (the “CC&Rs”). Those obligations shall include all
expenses incurred related to the Premises with the sole exceptions set forth in Paragraph
6.2.

ARTICLE 7

UTILITIES

     Tenant shall contract directly for utility connection and pay the service providers directly
for water, gas, heat, light, power, telephone and other utilities and all other services supplied
to the Premises, together with any taxes thereon. Landlord shall have no liability for any
interruption or failure of utility service to the Premises, and Tenant shall not be entitled to any
abatement or reduction of Fixed Rent by reason of any interruption or failure of utilities or other
services to the Premises, unless due to Landlord’s gross negligence or willful misconduct.

ARTICLE 8

ALTERATIONS

     8.1. Alterations. Except as expressly permitted by this Lease, Tenant shall not make
any alterations, improvements, additions, or utility installations (“Alterations”) in, on or about
the Premises, without Landlord’s prior written consent, which consent shall not be unreasonably
withheld or delayed and shall be deemed given unless Landlord notifies of its specific objections
in writing within thirty (30) days following receipt of Tenant’s request therefor. If such consent
is required by this Lease, Landlord may require, as a condition to giving such consent, that Tenant
agree to remove any such Alterations at the expiration of the Term and restore the Premises to
their prior condition. Notwithstanding the foregoing, Tenant shall not be required to remove any
wiring or cabling serving the Premises. Subject to Paragraph 6.2, all Alterations shall be
made by Tenant at Tenant’s sole expense. All Alterations shall be performed by licensed
contractors in a good and workmanlike manner and in accordance with all Applicable Laws, shall be
prosecuted diligently to completion and shall comply fully with all the terms of this Lease. Upon
completion of any Alterations and promptly following written request from Landlord, Tenant shall
provide Landlord with (i) evidence of full payment to all laborers, materialmen and equipment
providers contributing to the Alterations, (ii) an architect’s certificate certifying the
Alterations to have been completed in conformity with the plans and specifications, (iii) a
certificate of occupancy (if the Alterations are of such a nature as would require the issuance of
a certificate of occupancy), and (iv) any other documents or information reasonably requested by
Landlord.

     8.2. Permitted Alterations. Tenant may, without Landlord’s consent, perform (or allow
its Affiliates to perform) non-structural interior Alterations (including, but not limited to
moving non load-bearing walls, replacing fixtures, provided that Tenant complies (or
causes its Affiliate to comply) with all Applicable Laws in the construction or installation
of the Alterations. However, Tenant’s ability to construct such permitted alterations as described
in this Paragraph 8.2.2 without Landlord’s consent, shall not in any way eliminate
Landlord’s right

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to request the removal or restoration of such improvements upon the expiration of
this Lease (unless otherwise provided herein).

     8.3. Liens. Tenant shall pay or cause to be paid the total cost and expenses of the
construction of any Alterations performed by or at the request of Tenant. Tenant shall not suffer
or permit to be enforced against the Premises or any part thereof any lien arising from or in any
way related to any work performed on or materials supplied with respect to the Premises. Tenant
shall indemnify, defend and hold Landlord harmless for, from and against all liability or loss of
any type to the extent arising out of any work, construction or other activity in connection with
the Premises, unless and to the extent such work, construction or activity is commenced by
Landlord. Tenant, at its cost, shall either cause any lien to be released or shall obtain a surety
bond to discharge any such lien pursuant to Arizona Revised Statutes Section 33-1004 (or any
successor statute) within twenty (20) days after Tenant receives notice of such lien. If Tenant
fails to release or bond over any lien within such 20-day period, Landlord may, without obligation
to do so, remove such lien by any means deemed reasonably appropriate by Landlord, including
payment thereof. Tenant shall pay Landlord upon demand all sums paid and expenses incurred by
Landlord in connection with removing such lien, together with interest at the Default Rate from the
date paid by Landlord until repaid including, without limitation, reasonable attorneys’ fees and
costs.

     8.4. Removal. Tenant shall have the right to remove or to allow its Affiliates to
remove all personal property of Tenant, including, without limitation, trade fixtures, furniture
fixtures and equipment, at any time and from time to time during the Term of this Lease and upon
the expiration or within thirty (30) days following the earlier termination hereof. Except as set
forth in the preceding sentence, all Alterations on or to the Premises shall become the property of
Landlord and remain upon and be surrendered with the Premises at the expiration of the Term and
Tenant shall execute and deliver to Landlord such instruments as Landlord may reasonably require to
evidence the ownership by Landlord of such Alterations, unless Landlord conditions its approval
thereof to removal at the expiration of the Term, or otherwise requires their removal under the
term of this Lease.

ARTICLE 9

INSURANCE

     9.1. Tenant’s Insurance. Tenant, at its sole cost and expense, shall maintain in full
force and effect during the Term:

     9.1.1. Liability Insurance. Commercial general liability insurance written on
an occurrence form utilizing ISO form CG001 (or its equivalent) in amounts of not less than
$1,000,000 per occurrence, $1,000,000 personal injury and advertising injury, $2,000,000
products and completed operations aggregate and $2,000,000 general aggregate and an umbrella
liability insurance policy in the amount of $50,000,000.00 that is excess and following-form
over general liability (including terrorism), auto liability, host liquor
liability and employer’s liability. Coverage shall include, but shall not be limited
to, claims for injuries to persons or damage to property which may arise from or in
connection with this Lease by the Tenant, its agents, representatives, employees or

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contractors. Such insurance shall cover at least the following hazards: (a) premises and
operations, (b) products and completed operations, (c) personal and advertising injury, (d)
independent contractors, (e) blanket contractual liability for oral and written contracts,
(f) terrorism and acts of terrorism both foreign and domestic, and (g) host liquor
liability. Landlord and its manager or lender for which Tenant receives a written request
shall be named as additional insureds under such insurance policy. Tenant’s commercial
liability policy shall be primary to and not contributing to any insurance available to
Landlord and Landlord’s insurance shall be in excess thereto. In no event shall the limits
of such insurance be considered as limiting the liability of tenant under this Lease. If
Tenant’s liability policies do not contain the standard ISO separation of insureds
provisions, or a substantially similar clause, they shall be endorsed to provide
cross-liability coverage.

     9.1.2. Workmen’s Compensation. Workers’ compensation insurance in accordance
with statutory law and employers’ liability insurance with a limit of not less than
$1,000,000 per accident, $1,000,000 disease policy limit and $1,000,000 disease each
employee.

     9.1.3. Automobile Liability. An automobile liability limit of not less than
$1,000,000 for each accident, with such insurance covering liability arising out of any
automobile, including owned, hired and non-owned.

     9.1.4. Property Insurance. Property insurance on (a) the Structures, (b) all
office furniture, business and trade fixtures, office equipment, free-standing cabinet work,
movable partitions, merchandise and all other items of Tenant’s property on the Premises
installed by, for, or at the expense of Tenant, and (c) Tenant’s improvements, alterations
and additions to the Premises. Such insurance shall be written on an “all risks” of
physical loss or damage basis or “special cause of loss”, for the full replacement cost
value new without deduction for depreciation of the covered items and without any
coinsurance clauses and shall include coverage for damage or other loss caused by fire or
other peril including, but not limited to, vandalism and malicious mischief, theft, water
damage, including sprinkler leakage, mechanical breakdown and terrorism and acts of
terrorism both foreign and domestic. Such insurance shall provide for payment for loss
thereunder with respect to the Structures to the holder of any first mortgage or deed of
trust on the Premises, provided that such holder agrees to make such proceeds available for
reconstruction of the Structures in accordance with this Lease.

     9.1.5. Business Interruption Insurance. Business interruption insurance
without a provision for co-insurance, in an amount equal to 100% of the Fixed Rent for a
period of not less than twelve consecutive calendar months

     9.1.6. Law and Ordinance Insurance. Building ordinance coverage, including
demolition and increased cost of construction and contingent operation from building laws
coverage in an amount not less than $15,000,000.

     9.1.7. Builder’s Risk. During any period of construction, restoration,
reconstruction, rehabilitation, replacement or alteration to the Premises, builder’s risk
insurance in so-called non-reporting form upon all buildings, improvements and related

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appurtenances while under construction but only to the extent that such coverage is not
being maintained by Tenant’s contractor(s) pursuant to a policy or policies that satisfy
this requirement. Landlord agrees that such builder’s risk insurance may be included as a
sublimit in the property insurance policy described under Paragraph 9.1.4, provided
such sublimit is not less than $5,000,000.

     9.1.8. Blanket Policy. Tenant shall have the right to carry any insurance
required of Tenant under this Lease in the form of a blanket policy for the risks and in the
minimum amounts specified herein; provided, however, that any such blanket policy shall
otherwise comply with the provisions of this Article IX.

     9.1.9. Self Insurance. At any time that Tenant’s tangible net worth is equal
to or greater than $800,000,000, Tenant shall have the right to self-insure for any
insurance required of Tenant under this Lease or have a deductible higher than the maximum
deductible permitted under Paragraph 9.2. If Tenant desires to self-insure pursuant
to this Paragraph 9.1.9, Tenant shall deliver to Landlord prior to self-insuring a
notice that it intends to self-insure hereunder, and if Tenant is not required to file
quarterly and annual reports with the Securities and Exchange Commission , Tenant shall also
provide financial statements evidencing that Tenant has met the tangible net worth
requirement set forth above. If at any time during the Term, Tenant is self-insuring
pursuing to this Paragraph 9.1.9 and Tenant’s tangible net worth falls below the
minimum tangible net worth requirement set forth above, then Tenant shall no longer be
entitled to self-insure under this Paragraph 9.1.9, and Tenant shall notify Landlord
thereof and procure all insurance otherwise required by this Article 9 and deliver
to Landlord evidence of such insurance as required by this Article 9. If Tenant is
self-insuring under this Paragraph 9.1.9, rather than delivering the insurance
certificate called for at the times set forth in Paragraph 9.2 below, Tenant shall
deliver a certificate of self-insurance to Landlord and any lender.

     9.2. Policies. Insurance required hereunder shall be by companies rated A-:X or
better in “A.M. Best’s Insurance Guide”. Insurers shall be licensed or authorized to do business
in the state in which the Premises are located. Tenant shall deliver to Landlord certificates
evidencing the existence and amounts of the required insurance. Tenant shall, within ten (10) days
prior to the expiration of such policies, furnish Landlord with renewals or “binders” thereof.
Neither party shall not do or permit to be done anything which shall invalidate the insurance
policies referred to herein. If Tenant shall fail to procure and maintain any insurance required
to be maintained by it under this Paragraph and such failure continues after the expiration of any
applicable notice and cure periods under this Lease or the expiration of the applicable policy
(whichever is sooner), the Landlord may, but shall not be required to, procure and maintain the
same, but at the expense of Tenant. THE INSURANCE REQUIREMENTS HEREIN ARE MINIMUM REQUIREMENTS FOR
THIS CONTRACT AND IN NO WAY LIMIT THE INDEMNITY COVENANTS CONTAINED IN THIS LEASE. All policies
shall be written as primary policies, with deductibles not to exceed 10% of the amount of coverage.
For purposes of the preceding sentence, the 10% shall be calculated based on the
aggregate coverage under any applicable primary and umbrella policies. Any other policies,
including any policy now or hereafter carried by Landlord or any lender, shall serve as excess
coverage. In the event of any transfer by Landlord of Landlord’s interest in the Premises or any
financing or refinancing

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of Landlord’s interest in the Premises, Tenant shall, upon not less than
twenty (20) days’ prior written notice, deliver to Landlord or any lender providing such financing
or refinancing, as the case may be, certificates of all insurance required to be maintained by
Tenant hereunder naming such transferee or such lender, as the case may be, as an additional named
insured or loss payee, as applicable, to the extent required herein effective as of the date of
such transfer, financing or refinancing.

     9.3. Modifications to Insurance Coverage. If during the Term (i) any of the types of
insurance policies or the requirements related to the insurance policies required under this
Article 9 are no longer available on commercially reasonable terms or (ii) it becomes
commercially reasonable to obtain additional insurance coverage not specified in this Article 9 or to modify the terms of any coverages specified in this Article 9, then upon
written notice of either party, the parties shall attempt to negotiate in good faith changes to
this Article 9. If the parties are unable to agree on whether changes to this Article
9 are appropriate, the matter shall be resolved pursuant to Paragraph 17.9.

     9.4. Mutual Waiver of Subrogation. Landlord and Tenant each hereby waive any and all
rights of recovery against the other or against the officers, directors, partners, members,
trustees and shareholders of the other, on account of loss or damage occasioned to such waiving
party or its property or any property of others under its control to the extent that such loss or
damage is insured under any insurance maintained or required to be maintained pursuant to this
Lease. Landlord and Tenant will each, upon obtaining the respective policies of insurance required
under this Lease, give notice to the insurance carrier or carriers that the foregoing mutual waiver
of subrogation is contained in this Lease and obtain, if available at commercially reasonable
rates, from the respective carriers an endorsement waiving any right of subrogation in favor of the
insurer.

     9.5. No Representation of Coverage Adequacy. By requiring insurance herein, Landlord
does not represent that coverage and limits will necessarily be adequate to protect Tenant, and
such coverage and limits shall not be deemed as a limitation of Tenant’s liability under any
indemnification provisions in this Lease. Failure of Landlord to demand such certificate or other
evidence of full compliance with these insurance requirements or failure of Landlord to identify a
deficiency from evidence that is provided shall not be construed as a waiver of Tenant’s obligation
to maintain such insurance.

ARTICLE 10

INDEMNITY

     10.1. Tenant’s Indemnity. Tenant shall indemnify, defend and hold Landlord, any
Landlord Party, any lender holding a mortgage or deed of trust on the Premises, and their
respective Affiliates (collectively, “Landlord Indemnified Parties”) harmless for, from and against
any and all claims and other liabilities (including, without limitation, costs and attorneys’ fees)
in any way and to the extent arising from: (a) the use or occupancy of the
Premises by Tenant or any of its agents, invitees, visitors, contractors, employees,
subtenants, licensees or concessionaires (“Involved Parties”); (b) the conduct of Tenant’s business
thereon, (c) any activity, work or thing done, performed or suffered on or about the Premises by
Tenant or any of

16

 

its Involved Parties, (d) any negligent act or omission of Tenant or any of its
Involved Parties, (e) any accident, injury to or death of any person or loss of or damage to
property occurring in, on or about the Premises or any portion thereof or on the adjoining
sidewalks, curbs, parking areas, streets or ways, (f) any use, non-use or condition in, on or
about, or possession, alteration, repair, operation, maintenance or management of, the Premises or
any portion thereof or on the adjoining sidewalks, curbs, parking areas, streets or ways, (g) the
claims of any invitees, patrons, licensees or subtenants of all or any portion of the Premises or
any person or entity acting through or under Tenant or otherwise acting under or as a consequence
of this Lease or any sublease, and (h) any past, present or future presence of any Hazardous
Materials in, on, above, or under the Premises or any past, present or future environmental
condition affecting the Premises or any past, present or future non-compliance of the Premises with
any Environmental Laws; provided, that the foregoing shall exclude (x) any claims and other
liabilities, only to the extent deriving from the gross negligence or willful misconduct of
Landlord or its Involved Parties and (y) any special, punitive, consequential or incidental
damages. For purposes of this Lease, the term “gross negligence” shall not include gross
negligence imputed as a matter of law to a party or its Affiliates or its Involved Parties solely
by reason of the party’s interest in the Premises or the party’s failure to act in respect of
matters which are or were the obligation of Tenant under this Lease.

     10.2. Landlord’s Indemnity. Landlord shall indemnify, defend and hold Tenant, any
Tenant Party and their respective Affiliates (collectively, “Tenant Indemnified Parties”) harmless
for, from and against any and all claims and other liabilities (including, without limitation,
costs and attorneys’ fees) in any way and to the extent arising from any gross negligence or
intentional act or omission of Landlord or any of its Involved Parties; provided, that the
foregoing shall exclude any special, punitive, consequential or incidental damages; and provided
further that Tenant’s recovery under this Paragraph shall be limited by Article 18 and
Article 20 below.

     10.3. Survival. The indemnification provisions contained herein shall survive the
expiration or the termination of this Lease with respect to any claim or liability accruing prior
to such expiration or termination.

ARTICLE 11

DAMAGE OR DESTRUCTION

     11.1. Destruction. If the Premises or any portion thereof is damaged by fire or other
casualty, Tenant shall give prompt notice to Landlord of such damage, shall use commercially
reasonable efforts to secure the Premises so that they do not pose any risk of harm to adjoining
property owners or occupants or third-parties. Following any casualty the following provisions
shall apply:

     11.1.1. Restoration. If the Structures or any other improvements constituting
a part of the Premises are damaged or destroyed by a casualty, then except as provided in
Paragraph 11.1.2, Tenant shall, at its sole cost and expense, restore, repair,
replace, rebuild and alter (collectively “Restore” or “Restoration”) the same to as good a
condition as existed prior to such casualty. Such Restoration shall be commenced promptly
and prosecuted with reasonable diligence. Subject to the provisions of

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Paragraph
11.1.2, all insurance proceeds shall be applied to the cost of Restoration and, if the
proceeds are insufficient, Tenant shall pay the excess costs. Except as provided in
Paragraph 11.1.2, no destruction of or damage to the Premises shall permit Tenant to
surrender this Lease or relieve Tenant from its liability hereunder, and Tenant waives any
right now or hereafter conferred upon it, by statute or otherwise, to quit or surrender this
Lease or the Premises.

     11.1.2. Right to Terminate. If the damage or destruction occurs during the
last two (2) years of the primary Term or at any time during a Renewal Term, and either (i)
the cost of Restoration is estimated to exceed twenty-five percent (25%) or more of the
replacement value of the affected Structure(s), or (ii) the time period to complete the
Restoration with reasonable diligence is longer than two hundred and seventy (270) days, in
each case as determined by an engineer or contractor reasonably acceptable to Landlord and
Tenant, then, provided that no default has occurred and is continuing and such casualty is
covered by the insurance required to be maintained by Tenant under Paragraph 9.1.4
and Tenant is otherwise in compliance with the requirements of Article 9 related to
insurance, Tenant shall have the right to terminate this Lease only as to the Structure(s)
that is the subject of the casualty by written notice given to Landlord (a “Casualty
Termination Notice”) within sixty (60) days after the date of such damage or destruction.
If Tenant timely delivers a Casualty Termination Notice, this Lease shall be terminated with
respect to such Structure(s) effective as of the date such notice is given or such later
date as Tenant vacates the Premises, Landlord shall be entitled to receive and retain all
insurance proceeds relating to such damage or destruction (regardless of whether such
proceeds are payable by a third party insurer or Apollo under a self insurance program),
other than such amount that may be necessary for Tenant to satisfy its obligations under
Paragraph 11.2, and the Fixed Rent shall be adjusted to reflect any reduction in the
rentable square footage. If Tenant fails to timely deliver a Casualty Termination Notice,
Tenant will be deemed to have elected not to exercise its option to terminate the Lease and
Tenant shall complete the Restoration. If Tenant elects or is deemed to have elected to
complete a Restoration, the insurance proceeds will be made available to the Tenant for
application to the cost of Restoration, which proceeds shall be deposited in an escrow with
a third party for distribution in the same manner as a construction loan.

     11.2. Termination. Upon a termination of this Lease with respect to any Structures
under any of the provisions of Paragraph 11.1.2, Tenant shall raze and demolish any
remaining improvements damaged by the casualty and clear the affected area by the casualty, and the
insurance proceeds will be made available to the Tenant for application to the cost of such
demolition and clearing. Following such demolition and clearing, the parties shall be released
without further obligation to the other from the date possession of the Premises (or any portion
thereof) is surrendered to Landlord, except for items which have therefore accrued and are then
unpaid, and Landlord portion of the Premises surrendered to Landlord in good condition and repair.

     11.3. Release. Tenant shall not be released from any of its obligations under this
Lease except to the extent and upon the conditions expressly stated in this Article 11.

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     11.4. Waiver. Landlord and Tenant hereby waive the provisions of any statutes or
court decisions which relate to the abatement or termination of leases when leased property is
damaged or destroyed, and agree that such event shall be exclusively governed by the terms of this
Lease.

ARTICLE 12

TAXES AND ASSESSMENTS

     12.1. Payment. Tenant shall be obligated to pay all Property Taxes (as defined below)
applicable to the Premises prior to or with respect to the Term as and when they accrue as
additional rent and without deduction or offset. Tenant shall be permitted to satisfy its
obligation for accrued Property Taxes by paying such Property Taxes directly to the applicable
governmental authority prior to delinquency. Within ten (10) days after each installment of
Property Taxes is required by this Paragraph to be paid, Tenant shall also provide Landlord with
evidence that such Property Taxes were paid in a timely fashion. If any Property Taxes due with
respect to the Premises shall cover any period of time after the expiration of the Term, Tenant’s
share of such Property Taxes shall be equitably prorated to cover only the period of time within
the tax fiscal year during which this Lease shall be in effect. If Tenant fails to pay any
Property Taxes, Landlord shall have the right, but not the obligation, to pay the same, in which
case Tenant shall repay such amount, together with interest at the Default Rate from the date of
expenditure. As used herein, the term “Property Taxes” shall include any form of general or
special assessment, license fee, levy penalty, or tax (other than inheritance or estate taxes)
imposed by any authority having the direct or indirect power to tax, including any city, county,
state or federal government, or any school, agricultural, lighting, drainage or other improvement
district, or any part or parts thereof, or against any legal or equitable interest of Landlord in
the Premises or any part thereof or against Landlord’s right to rent or other income therefrom (but
exclusive of taxes levied on or computed by reference to Landlord’s net income as a whole), or
against Landlord’s business of leasing the Premises.

     12.2. Personal Property. Tenant shall pay, prior to delinquency, all taxes assessed
against and levied upon trade fixtures, furnishings, equipment and all other personal property
contained on the Premises or elsewhere. Tenant shall use reasonable efforts to cause such trade
fixtures, furnishings, equipment and all other personal property to be assessed and billed
separately from the Premises.

     12.3. Rent Tax. Tenant shall pay to Landlord a sum equal to the amount which Landlord
is required to pay or collect by reason of any privilege tax, sales tax, gross proceeds tax, rent
tax, or like tax levied, assessed or imposed by any governmental authority or subdivision thereof,
upon or measured by any Rent or other charges or sums required to be paid or improvements to be
made by Tenant under this Lease. Such sum shall be paid simultaneously with the payment by Tenant
to Landlord of the Rent or, in the case of a tax not attributable to Rent, at such time as Landlord
shall demand payment thereof. Nothing contained in this Lease shall require Tenant to pay any
franchise, corporate, estate, inheritance, succession, or transfer tax of Landlord or any tax upon
the net income of Landlord.

     12.4. Contest of Taxes. Tenant shall have the right, but not the obligation, to
contest the amount of any tax or assessment for which Tenant is liable under this Article
12, as

19

 

long as such contest is conducted in good faith and with due diligence by appropriate
legal proceedings, and provided that (i) such proceeding shall suspend the collection thereof from
the Premises or any interest therein or if it does not, such taxes or assessments are paid in full
under protest, (ii) neither the Premises nor any interest therein would be in any danger of being
sold, forfeited or lost by reason of such proceedings, and (iii) unless such taxes or assessments
are paid in full under protest, by the date such taxes or assessments would otherwise be
delinquent, Tenant shall have deposited with Landlord adequate reserves for the payment of the
taxes and assessments or Tenant shall have furnished the security as may be required in the
proceeding or as may be required by Landlord to insure payment of any contested taxes. Landlord
shall cooperate in any reasonable manner with such contest by Tenant, but Landlord shall not be
required to incur any out-of-pocket cost in connection with such contest.

ARTICLE 13

CONDEMNATION

     13.1. Condemnation. If the Premises or any portion thereof is taken under the power
of eminent domain, or sold under the threat of the exercise of said power (collectively
“Condemnation”), this Lease shall terminate as to the part so taken as of the date the condemning
authority takes title or possession, (the “Condemnation Date”), and the Fixed Rent shall be reduced
for the balance of the Premises as provided below.

     13.2. Right to Terminate. If (a) (i) more than ten percent (10%) of the floor area of
a Building is taken by Condemnation or (ii) such taking results in a loss of more than ten percent
(10%) of the parking for a Building that is not accommodated by replacement parking that is
reasonably proximate to the Building it serves, or (iii) access to a Building is substantially and
negatively impaired, and reasonable alterations or additions to the Building cannot be constructed
to restore such access to the Building, and (b) as a result of such taking by Condemnation the
balance of the Building, if any, remaining after such Condemnation is not reasonably suitable for
the permitted use under this Lease in Tenant’s reasonable judgment, Tenant may terminate this Lease
as to the Building so impacted effective as of the Condemnation Date, or such later date that
Tenant fully vacates the Building, in which the Fixed Rent shall be adjusted to reflect the
rentable square footage of the Building as to which the Lease is terminated. If Landlord disputes
Tenant’s determination as to whether the balance of any Building remaining after a Condemnation is
reasonably suitable for the permitted use under this Lease, the parties shall resolve this issue
pursuant to Paragraph 17.9. Notwithstanding anything contained herein to the contrary, in
the event of any Condemnation in connection with the proposed I-10 Corridor expansion so long as
such Condemnation does not exceed the “worst case” right of way scenario outlined in the January
14, 2009 letter from the Arizona Department of Transportation to Brent Fuller at Apollo Group,
Inc., Tenant will have no right to terminate this Lease.

     13.3. Rent Reduction. If Tenant is not entitled to terminate this Lease under
Paragraph 13.2 with respect to any Building that is impacted by a Condemnation or if Tenant
does not exercise its right to terminate this Lease under Paragraph 13.2 with respect to
any Building that is impacted by a Condemnation, this Lease shall remain in full force and effect
as
to the portion of the Premises remaining, except that the Fixed Rent shall be reduced (as of
the Condemnation Date) (i) based on the rentable square footage of the portion of any Building so

20

 

taken or (ii) if the parking remaining following any taking results in an overall parking ratio for
all Buildings of less than 6.4 parking spaces per 1,000 rentable square feet, based on the value of
the parking so taken; provided, however, that Landlord, at its option, may elect to assign to
Tenant its rights to all condemnation proceeds on account of such taking (net of any actual
out-of-pocket costs incurred by Landlord in connection with such condemnation), in which case there
shall be no reduction in Fixed Rent. If the parties are unable to agree as to the reduction in
Fixed Rent under clause (ii) of this Paragraph 13.3, the parties shall resolve this issue
pursuant to Paragraph 17.9.

     13.4. Restoration of Premises. If this Lease is not terminated as to the entire
Premises by reason of any Condemnation, Tenant shall repair any damage to the Premises caused by
such Condemnation, and all condemnation proceeds (net of any actual out-of-pocket costs incurred by
Landlord in connection with such condemnation) will be made available to the Tenant for application
to the cost of repair, which proceeds shall be deposited in an escrow with a third party for
distribution in the same manner as a construction loan. If the condemnation proceeds (net of any
actual out-of-pocket costs incurred by Landlord in connection with such condemnation) are not
sufficient to pay all of the repair costs, then, subject to the last sentence of this Paragraph
13.4, Tenant shall pay the excess costs. All proceeds (net of any actual out-of-pocket costs
incurred by Landlord in connection with such condemnation), shall first be used for items of repair
having a useful life that extends beyond the Term (including the term of any options which Tenant
may have the right to exercise), and, if such proceeds are insufficient to fully pay for such items
of repair, the balance of the remaining cost of such items of repair (the “Remaining Balance”)
shall be divided between Tenant and Landlord as follows: Tenant shall be obligated to pay the
portion of the Remaining Balance which bears the same ratio to the Remaining Balance as the
remaining term of this Lease (as determined on the Condemnation Date and including the term of any
options which the Tenant may have the right to exercise) bears to the reasonably anticipated useful
life of such item of repair and the remainder of the Remaining Balance shall be paid by Landlord.

     13.5. Award. Subject to Paragraph 13.3 and Paragraph 13.4, all
compensation awarded for any Condemnation, whether for the whole or part of the Premises or
otherwise, shall be the property of Landlord, whether such damages shall be awarded as compensation
for diminution in the value of the leasehold or to the fee of the Premises or the Building, but
Tenant shall be entitled to pursue a separate award for its moving expenses and for any trade
fixtures, furniture or equipment which Tenant is entitled to remove and which are subject to the
taking as long as such separate award would not adversely affect or interfere with the prosecution
of Landlord’s claim for such Condemnation or otherwise reduce the amount recoverable by Landlord
for such Condemnation.

     13.6. Temporary Condemnation. If the temporary use of the whole or any part of the
Premises shall be taken by Condemnation, the Term shall not be reduced or affected in any way, and
Tenant in such event shall continue to pay in full the Fixed Rent and other charges herein
reserved, without reduction or abatement, and, except to the extent that Tenant is prevented from
so doing by reason of any order of the condemning authority, and shall continue to perform and
observe all of the other covenants, conditions and agreements of this
Lease to be performed or observed by Tenant as though such taking had not occurred. In the
event of any such temporary Condemnation, Tenant shall be entitled to receive for itself any and
all awards or

21

 

payments made for such use of that portion of the Premises so taken, unless the
period of such temporary Condemnation shall extend beyond the date of expiration of this Lease, in
which case the award made for such Taking shall be apportioned between Landlord and Tenant as of
the date of such expiration.

ARTICLE 14

ASSIGNMENT AND SUBLETTING

     14.1. Assignment. Except as provided in this Article 14, Tenant’s interest
under this Lease may not be assigned without the prior written consent of Landlord, which consent
shall not be unreasonably withheld, conditioned or delayed. If a dispute arises as to whether
Landlord has unreasonably withheld, conditioned or delayed its consent under this Paragraph
14.1, the parties shall resolve such dispute pursuant to Paragraph 17.9. Except as
otherwise provided in the last sentence of Paragraph 14.4, no assignment shall alter the
primary liability of Tenant to pay the Rent or release Tenant of Tenant’s obligation to perform all
other obligations to be performed by Tenant hereunder unless expressly provided in Landlord’s
written consent. The acceptance of Rent by Landlord from any other person shall not be deemed to
be a waiver by Landlord of any provision hereof.

     14.2. Sublease.

     14.2.1. Tenant may sublease all or any portion of the Premises without the approval of
Landlord unless such approval is required under Paragraph 14.2.3 below. Tenant
shall provide Landlord with (i) written notice of any sublease or other occupancy agreement
entered into by Tenant on or in the Premises (each, a “Sublease”), together with a copy of
the executed Sublease, and (ii) evidence of the subtenant’s insurance, which shall include
Landlord being named as an additional insured or loss payee, as applicable, on such
insurance, within thirty (30) days following execution of a Sublease. No subletting shall
alter the primary liability of Tenant to pay the Rent or release Tenant of Tenant’s
obligation to perform all other obligations to be performed by Tenant hereunder unless
expressly provided in Landlord’s written consent. Tenant shall fulfill, perform and observe
in all respects, at its own cost and expense, each and every obligation, condition and
covenant of the sublandlord in each Sublease.

     14.2.2. With regard to any Sublease other than that certain Lease (No. 84051-001) dated
January 1, 2004, by and between Riverpoint Lots 1/3/5 LLC, as landlord, and the City of
Phoenix, as tenant (the “Lift Station Lease”), so long as this Lease is in place, if the per
square foot rate paid under such Sublease exceeds the per square foot rate of Fixed Rent,
the excess sublease rents (after deducting any costs or expenses incurred by Tenant in
connection with such Sublease) shall be divided evenly between Tenant and Landlord, provided
that, if a default exists and is continuing, Landlord shall have the right to receive
amounts payable to Tenant under any Sublease (including the Lift Station Lease) and apply
them toward any amounts due Landlord under this Lease (with any excess amounts received by
Landlord under any Sublease being remitted by Landlord to Tenant). Except in the event of a
default under this Lease, Tenant will be entitled to
receive all rents payable under the Lift Station Lease, and unless this Lease expires
or is terminated prior the expiration of the Lift Station Lease, Tenant will be responsible
for

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satisfying all obligations of Landlord under the Lift Station Lease. Tenant covenants
and agrees to indemnify, defend and hold the Landlord Indemnified Parties harmless for, from
and against any actions, suits, proceedings or claims, and all costs and expenses (including
without limitation reasonable attorneys’ fees) incurred in connection therewith, based upon
or arising out of any breach or alleged breach of the Lift Station Lease or out of any other
facts or circumstances connected with the Lift Station Lease occurring or alleged to have
occurred during the Term of this Lease. Landlord covenants and agrees to indemnify, defend
and hold the Tenant Indemnified Parties harmless for, from and against any actions, suits,
proceedings or claims, and all costs and expenses (including without limitation reasonable
attorneys’ fees) incurred in connection therewith, based upon or arising out of any breach
or alleged breach of the Lift Station Lease or out of any other facts or circumstances
connected with the Lift Station Lease occurring or alleged to have occurred following the
Term of this Lease.

     14.2.3. If Tenant subleases any part of the Premises or otherwise enters into any
occupancy agreements during the Term, nothing in this Lease shall obligate Landlord to
recognize the rights of, or to agree not to disturb, any subtenants or other parties in
occupancy of the Premises unless Tenant requests that Landlord execute a non-disturbance and
attornment agreement for such Sublease, in which case Landlord shall have the right to
approve the Sublease and the form of the non-disturbance and attornment agreement, such
approval not to be unreasonably withheld, conditioned or delayed. If a dispute arises as to
whether Landlord has unreasonably withheld, conditioned or delayed its consent under this
Paragraph 14.2.3, the parties shall resolve such dispute pursuant to Paragraph
17.9.

     14.3. Information. In connection with any proposed assignment or change of Control
requiring Landlord’s consent, Tenant shall submit to Landlord in writing the name of the proposed
assignee and such information as to the financial responsibility and standing of said assignee or
new controlling party as Landlord may reasonably require.

     14.4. Permitted Assignment. Notwithstanding any provision in this Lease to the
contrary, Tenant shall have the right to assign this Lease without Landlord’s consent to an
Affiliate or to a corporation or other business entity resulting from a merger or consolidation
with Tenant, or to any person or entity which acquires substantially all of the assets of Tenant’s
businesses as a going concern, provided that the assignee assumes in full the obligations of the
Tenant under this Lease. Tenant shall provide Landlord with (i) written notice thereof, together
with a copy of the executed assignment and assumption, and (ii) evidence of the assignee’s
insurance, which shall include Landlord being named as an additional insured or loss payee, as
applicable, on such insurance. If Tenant proposes to assign to an assignee (including an Affiliate
of the assignee) whose tangible net worth (combined with any proposed guarantor) at the time of
assignment is not less than $800,000,000 or has a rating of BBB by Standard & Poor’s or an
equivalent credit rating by a comparable credit rating agency, and if Landlord consents to such
assignment, Tenant shall be released from all liability occurring from and after the effective date
of the assignment.

     14.5. Release of Landlord. Upon written notice from Landlord that it has conveyed its
interest in the Premises and assigned its interest in the Lease and a copy of the written

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assignment containing an assumption by the assignee of all obligations and liabilities of Landlord
hereunder, Landlord shall thereafter be released from the further performance of covenants on the
part of Landlord herein contained, and from any and all further liability, obligations, costs and
expenses, demands, causes of action, claims or judgments arising from or growing out of, or
connected with this Lease arising from and after the effective date of said release. Nothing
herein shall release Landlord from any liability, obligation, cost or expense arising prior to the
effective date of the release provided for herein.

ARTICLE 15

DEFAULTS; REMEDIES

     15.1. Tenant’s Defaults. The occurrence of any one or more of the following events
shall constitute a default or breach of this Lease by Tenant:

     15.1.1. Failure to Make Payments When Due. The failure by Tenant to make any
Rent or other payment required to be made by Tenant hereunder, whether to Landlord or a
third party, as and when due, where such failure shall continue for a period of ten (10)
days after written notice thereof from Landlord to Tenant;

     15.1.2. Insolvency, Bankruptcy. The making by Tenant of any general assignment
for the benefit of creditors, the filing by or against Tenant of a petition for order of
relief in bankruptcy for the purpose of bankruptcy, liquidation or reorganization under any
law relating to bankruptcy whether now existing or hereafter enacted (including, without
limitation, any petition filed by or against Tenant under any one or more of the following
Chapters of the Bankruptcy Reform Act of 1978, 11 U.S.C. §§ 101-1330 (“Bankruptcy Code”) as
amended: Chapter 7, Chapter 11 or Chapter 13) except that, in the case of a filing against
Tenant of such a petition, such filing shall not be a default if the petition is dismissed
or discharged on or before sixty (60) days after the filing thereof; the appointment of a
trustee or receiver to take possession of all or substantially all of Tenant’s assets
located at the Premises or of Tenant’s interest in this Lease, where possession is not
restored to Tenant within sixty (60) days; or the attachment, execution or other judicial
seizure of substantially all of Tenant’s assets located at the Premises or of Tenant’s
interest in this Lease, where such seizure is not discharged within sixty (60) days;

     15.1.3. Insurance. The failure by Tenant to maintain the insurance required
pursuant to Article 9 of this Lease where such failure shall not be cured within ten
(10) days after written notice thereof from Landlord to Tenant;

     15.1.4. Assignment or Sublease. The assignment of this Lease or sublease of
the Premises by Tenant in violation of the provisions of Article 14 of this Lease
where such default shall not be cured within fifteen (15) days after written notice thereof
from Landlord to Tenant;

     15.1.5. Failure to Perform Other Obligations. The failure by Tenant to observe
or perform any of the covenants, conditions or provisions of this Lease to be observed or
performed by Tenant, other than those described in Paragraphs 15.1.1 through
15.1.4

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above, where such failure shall continue for a period of thirty (30) days
after written notice thereof from Landlord to Tenant; provided, however, that if the nature
of Tenant’s default is such that it is capable of being cured but more than thirty (30) days
are reasonably required for its cure, then Tenant shall not be deemed to be in default if
Tenant commences such cure within such thirty (30) day period and thereafter diligently
prosecutes such cure to completion, but provided further that such default must be cured
within ninety (90) days in any event; or

     15.2. Landlord’s Remedies.

     15.2.1. Pursuit of Remedies. In the event of any default or breach by Tenant
of any of its obligations under this Lease, Landlord may, at Landlord’s option and without
limiting Landlord in the exercise of any other rights or remedies which it may have by
reason of such default and breach, exercise all of its rights and remedies hereunder,
including, without limitation:

     15.2.1.1. Declaration of End of Term; Reentry and Repossession. The
right to declare the Lease terminated and to reenter the Premises and take
possession thereof and remove all persons therefrom, in which event Tenant shall
have no further claim in or to the Premises or under this Lease; or

     15.2.1.2. Reentry and Repossession; Reletting. The right without
declaring this Lease terminated to reenter the Premises, take possession thereof,
remove all persons therefrom and occupy or lease the whole or any part thereof for
and on account of Tenant and upon such terms and conditions that Landlord may
determine in its sole but reasonable discretion, and to collect such rent or any
other rent that may hereafter become payable and apply the same as provided in
Paragraph 15.2.2 below; or

     15.2.1.3. Termination After Reletting. The right, even though
Landlord may have relet the Premises or brought an action to collect Rent and other
charges without terminating this Lease, to thereafter elect to terminate this Lease
and all of the rights of Tenant in or to the Premises; or

     15.2.1.4. Action for Rent. The right, without terminating this Lease,
to bring an action or actions to collect Rent and other charges hereunder which are
from time to time past due and unpaid or to enforce any other provisions of this
Lease imposing obligations on Tenant, it being understood that the bringing of any
such action or actions shall not terminate this Lease unless written notice of
termination is given.

     15.2.1.5. Damages and Equitable Relief. The right to bring an action
against Tenant for any damages sustained by Landlord or any equitable relief
available to Landlord.

     15.2.1.6. Personal Property. The right to seize all of Tenant’s
personal property located at the Premises in which Landlord shall have a landlord’s
lien, and to dispose thereof in accordance with the laws prevailing at the time and
place

25

 

of such seizure or to remove all or any portion of such personal property and
cause the same to be stored in a public warehouse or elsewhere at Tenant’s sole
expense, without becoming liable for any loss or damage resulting therefrom and
without resorting to legal or judicial process, procedure or action.

     15.2.1.7. Self-Help. To immediately or at any time thereafter, at
Landlord’s sole option but without any obligation to do so, correct such breach or
default and charge Tenant all costs and expenses actually incurred by Landlord in
connection therewith (including payment of costs including reasonable attorneys’
fees and charges in connection with any legal action which may have been considered
or commenced). Any sum or sums so paid by Landlord, together with interest at the
Default Rate, shall be deemed to be Rent hereunder and shall be due from Tenant to
Landlord five (5) days following written notice to Tenant. Notwithstanding anything
contained herein to the contrary, Landlord shall have no obligation to notify Tenant
in advance of making any payment to (i) cure any delinquent taxes or assessments if
such amount will result in the imposition of a lien against the Premises pursuant to
Applicable Law or (ii) maintain in effect with respect to the Premises any insurance
that Tenant is required to provide pursuant to Article 9. Any such acts by
Landlord in correcting Tenant’s breaches or defaults hereunder shall not be deemed
to cure said breaches or defaults or constitute any waiver of Landlord’s right to
exercise any or all remedies set forth herein.

     15.2.1.8. Costs and Expenses. The right to recover from Tenant all
costs and expenses, including attorneys’ fees, court costs, expert witness fees,
costs of tests and analyses, travel and accommodation expenses, deposition and trial
transcripts, copies and other similar costs and fees, paid or incurred by Landlord
as a result of such breach, regardless of whether or not legal proceedings are
actually commenced.

     15.2.2. Application of Proceeds of Reletting. If Landlord relets the Premises
under the provisions of Paragraph 15.2.1.2 above, the proceeds of any such reletting
shall first be applied to the payment of the costs and expenses of reletting the Premises,
including without limitation, reasonable brokerage commissions and alterations and repairs
which are reasonably necessary for such reletting and to the payment of reasonable
attorneys’ fees incurred by Landlord in connection with the Tenant’s default, the retaking
of the Premises and such reletting and, second, to the payment of any indebtedness, other
than Rent, due hereunder. When such costs and expenses of reletting have been paid, and if
there is no such indebtedness or such indebtedness has been paid, Tenant shall be entitled
to a credit against the accruing Fixed Rent for the net amount of rental received from such
reletting each month during the unexpired balance of the Term, and, if necessary, Tenant
shall pay Landlord monthly on the first day of each month as specified herein such sums as
may be required to make up the Rent provided for in this Lease.

     15.2.3. Damages. In the event of termination or retaking of possession
following default, Landlord shall be entitled to recover immediately, without waiting until
the due

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date of any Rent or until the date fixed for expiration of the Term, the following
amounts as damages:

     15.2.3.1. Lost Rent Prior to Reletting. The loss of rental from the
date of default until a new tenant is, or with the exercise of reasonable efforts
could have been, secured and paying rent, calculated as follows:

     (i) The worth at the time of award of any unpaid rent which had been
earned at the time of such termination; plus

     (ii) The worth at the time of award of the amount by which the unpaid
rent which would have been earned after termination and until the time of
award exceeds the amount of such rental loss that Tenant proves could have
been reasonably avoided; plus

     (iii) The worth at the time of award of the amount by which the unpaid
rent for the balance of the term after the time of award exceeds the amount
of such rental loss that Tenant proves could have been reasonably avoided.

     As used in subparagraphs (i) and (ii) above, the “worth at the time of
award” is computed by allowing interest at the rate of 10% per annum. As
used in subparagraph (iii) above, the “worth at the time of award” is
computed by discounting such amount at the discount rate of the Federal
Reserve at the time of award. Notwithstanding the foregoing recovery
rights, in no event shall Landlord’s claim for damages in the event of
termination exceed the amount expressly permitted by Arizona law.

     15.2.3.2. Costs of Reletting. The reasonable costs of reentry and
reletting including without limitation the reasonable cost of any cleanup,
refurbishing, removal of Tenant’s property and fixtures, or any other expense
occasioned by Tenant’s default including but not limited to, reasonable remodeling
or repair costs, attorney fees, court costs, broker commissions, and advertising
costs.

     15.2.4. Remedies Cumulative. All rights, options, elections, powers and
remedies of Landlord under the provisions of this Lease are cumulative of each other and of
every other right, option, election, power or remedy which Landlord may otherwise have at
law or in equity and all or any of which Landlord is hereby authorized to exercise. The
exercise of one or more rights, options, elections, powers or remedies shall not prejudice
or impair the concurrent or subsequent exercise of other rights or remedies Landlord may
have upon a breach and default under this Lease and shall not be deemed to be a waiver of
Landlord’s rights or remedies thereupon or to be a release of Tenant from Tenant’s
obligations thereon unless such waiver or release is expressed in writing and signed by
Landlord.

     15.3. Landlord’s Default. The occurrence of any one or more of the following events
shall constitute a default and breach of this Lease by Landlord:

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     15.3.1. Failure to Make Payments When Due. The failure by Landlord to make any
payment required to be made by Landlord hereunder, as and when due, where such failure shall
continue for a period of thirty (30) days after written notice thereof from Tenant to
Landlord; or

     15.3.2. Failure to Perform Other Obligations. The failure by Landlord to
observe or perform any of the covenants, conditions or provisions of this Lease to be
observed or performed by Landlord, other than those described in Paragraph 15.3.1
above, where such failure shall continue for a period of thirty (30) days after written
notice thereof from Tenant to Landlord; provided, however, that if the nature of Landlord’s
default is such that it is capable of being cured but more than thirty (30) days are
reasonably required for its cure, then Landlord shall not be deemed to be in default if
Landlord commences such cure within such thirty (30) day period and thereafter diligently
prosecutes such cure to completion.

     15.4. Tenant’s Remedies.

     15.4.1. Pursuit of Remedies. In the event of any default and breach by
Landlord of any of its obligations under this Lease, Tenant may at Tenant’s option and
without limiting Tenant in the exercise of any other rights or remedies which it may have by
reason of such default and breach, exercise all of its rights and remedies hereunder,
including, without limitation:

     15.4.1.1. Action for Payments Due. The right, without terminating
this Lease, to bring an action or actions to collect payments hereunder, including
any costs to Tenant as a result of such default, which are from time to time past
due and unpaid or to enforce any other provisions of this Lease imposing obligations
on Landlord, it being understood that the bringing of any such action or actions
shall not terminate this Lease; or

     15.4.1.2. Self-Help. In the event of a material default impacting
Tenant’s use of the Premises, the right to make such payments and cure such defaults
on behalf of Landlord and, in connection therewith, do all work and make all
payments deemed necessary or appropriate by Tenant (including payment of costs
including reasonable attorneys’ fees and charges in connection with any legal action
which may have been considered or commenced), and all sums so expended by Tenant
together with interest at the Default Rate from the date of Tenant’s original
default notice shall be immediately due and payable by Landlord.

     15.4.1.3. Damages; Equitable Relief. The right to recover damages or
sue for specific performance or injunctive relief.

Notwithstanding anything contained herein to the contrary, Tenant shall not have any right
of offset if it makes a payment on behalf of Landlord or is otherwise owed any amount on
behalf of Landlord.

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     15.4.2. Remedies Cumulative. All rights, options, elections, powers and
remedies of Tenant under the provisions of this Lease are cumulative of each other and of
every other right, option, election, power or remedy which Tenant may otherwise have at law
or in equity (except as expressly limited in this Lease) and all or any of which Tenant is
hereby authorized to exercise. The exercise of one or more rights, options, elections,
powers or remedies shall not prejudice or impair the concurrent or subsequent exercise of
other rights or remedies Tenant may have upon a breach and default under this Lease and
shall not be deemed to be a waiver of Tenant’s rights or remedies thereupon or to be a
release of Landlord from Landlord’s obligations thereon unless such waiver or release is
expressed in writing and signed by Tenant.

     15.5. Default Interest; Late Charge.

     15.5.1. Default Interest. The parties hereby acknowledge that late payment of
sums due hereunder will cause the other party to incur costs not contemplated by this Lease,
the exact amount of which will be extremely difficult to ascertain. Accordingly, if any
installment of Rent or any other sum payable by either party shall not be paid when due such
sum shall bear interest from the date due until paid at a per annum rate equal to the prime
rate of JPMorgan Chase Bank, N.A. (or if JPMorgan Chase Bank, N.A. no longer announces a
prime rate, another similar financial institution designated by Landlord) then in effect
plus three percent (3%) (the “Default Rate”), but in no event less than 12% per annum.

     15.5.2. Late Charge. If any Fixed Rent or any other amount due hereunder is
not received by Landlord or Landlord’s designee when due, Tenant shall pay to Landlord a
late charge equal to three percent (3%) of such overdue amount. The parties hereby agree
that such late charge represents a fair and reasonable estimate of the costs the party to
receive payment will incur by reason of the late payment.

     15.5.3. Notice. Notwithstanding anything to the contrary in this Lease, before
assessing any late charge or interest at the Default Rate, Landlord shall give Tenant notice
of non-payment and five (5) business days from receipt of such notice to cure any such
non-payment, provided Landlord shall have no obligation to provide Tenant such notice of
non-payment more than twice in any calendar year.

     15.6. Lender’s Right to Cure. If Tenant has been notified in writing (by way of
Assignment of Rents and Leases or otherwise) of the address of the holder of any mortgagee or trust
deed holder, Tenant agrees to give such holder a copy of any notice of default served upon
Landlord.

ARTICLE 16

HAZARDOUS MATERIALS

     16.1. Definitions.

     16.1.1. Hazardous Materials. As used in this Lease, the term “Hazardous
Material[s]” means any oil, flammable items, explosives, radioactive materials, hazardous or
toxic substances, material or waste or related materials including, without

29

 

limitation, any substances that pose a hazard to the Premises or to persons on or about
the Premises and any substances defined as or included in the definition of “hazardous
substance,” “hazardous waste,” “hazardous material,” “toxic substance,” “extremely hazardous
waste,” “restricted hazardous waste” or words of similar import, now or subsequently
regulated in any way under applicable federal, state or local laws or regulations, including
without limitation, petroleum-based products, paints, solvents, lead, cyanide, DDT, printing
inks, acids, pesticides, ammonia compounds and other chemical products, asbestos, PCBs, urea
formaldehyde foam insulation, transformers or other equipment containing dielectric fluid,
levels of polychlorinated biphenyls, or radon gas, and similar compounds, and including any
different products and materials which are subsequently found to have adverse effects on the
environment or the health and safety of persons.

     16.1.2. Environmental Laws. As used herein, the term “Environmental Law[s]”
means any one or all of the following: the Comprehensive Environmental Response,
Compensation and Liability Act, as amended by the Superfund Amendments and Reauthorization
Act of 1986 (42 U.S.C. §§ 9601 et seq.); the Resource Conservation and Recovery Act as
amended (42 U.S.C. §§ 6901 et seq.); the Safe Drinking Water Act as amended (42 U.S.C. §§
300f et seq.); the Clean Water Act as amended (33 U.S.C. §§ 1251 et seq.); the Clean Air Act
as amended (42 U.S.C. §§ 7401 et seq.); the Toxic Substances Control Act as amended (15
U.S.C. §§ 136 et seq.); the Solid Waste Disposal Act as amended (42 U.S.C. §§ 3251 et seq.);
the Hazardous Materials Transportation Act (49 U.S.C. §§ 1801 et seq.); the regulations
promulgated under any of the foregoing; and all other laws, regulations, ordinances,
standards, policies, and guidelines now in effect or hereinafter enacted by any governmental
entity (whether local, state or federal) having jurisdiction or regulatory authority over
the Premises or over activities conducted therein and which deal with the regulation or
protection of human health, industrial hygiene or the environment, including the soil,
subsurface soil, ambient air, groundwater, surface water, and land use.

     16.1.3. Environmental Activities. As used herein, the term “Environmental
Activity[ies]” means any generation, manufacture, production, storage, treatment, release,
discharge, escaping, emitting, disposal or transportation of Hazardous Materials.

     16.2. Prohibition on Hazardous Materials. Except as specifically provided in
Paragraph 16.3 below, Tenant shall not cause or permit any Environmental Activities in, on
or about the Premises by Tenant or Tenant’s Involved Parties without the prior written consent of
Landlord. Landlord shall be entitled to take into account such factors or facts as Landlord may
reasonably determine to be relevant in determining whether to consent to Tenant’s proposed
Environmental Activity and Landlord may attach conditions to any such consent if such conditions
are reasonably necessary to protect Landlord’s interests in avoiding potential liability upon
Landlord or damage to Landlord’s property arising from any Environmental Activity by Tenant or
Tenant’s Involved Parties. In no event shall Landlord be requested or required to consent to the
installation or use of any storage tanks on the Premises.

     16.3. Exception to Prohibition. Notwithstanding the prohibition set forth in
Paragraph 16.2 above, but subject to Tenant’s covenant to comply with all
Environmental Laws

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and with the other provisions of this Article 16, Tenant may bring
upon, keep and use in the Buildings general office supplies and other products or materials
typically used in an office or warehouse in the ordinary course of business, such as copier toner,
liquid paper, glue, ink and janitorial supplies, so long as such supplies are used in the manner
for which they were designed and in such amounts as may be normal for the business operations
conducted by Tenant in the Premises.

     16.4. Compliance with Environmental Laws. Tenant shall keep and maintain the Premises
in compliance with, and shall not cause or permit the Premises to be in violation of, any
Environmental Laws. All of Tenant’s activities at the Premises shall be in accordance with all
Environmental Laws.

ARTICLE 17

MISCELLANEOUS

     17.1. Subordination; Attornment; Nondisturbance.

     17.1.1. Generally. Subject to Paragraph 17.1.4 below, this Lease, at
Landlord’s option, shall be subordinate to any mortgage, deed of trust, or any other
hypothecation for security now or hereafter placed upon the Premises or any part or parts
thereof, and to any and all advances made on the security thereof and to all renewals,
modifications, consolidations, replacements and extensions thereof. If any present or
future mortgagee or trustee shall at any time elect to have this Lease prior to the lien of
its mortgage or deed of trust and written notice of such election shall be given to Tenant,
this Lease shall be deemed prior to such mortgage or deed of trust whether this Lease is
dated prior or subsequent to the date of said mortgage or deed of trust or the date of
recording thereof.

     17.1.2. Execution of Subordination Agreements. Tenant agrees to execute any
documents reasonably required to effectuate such subordination or to make this Lease prior
to the lien of any mortgage or deed of trust, as the case may be; provided that such
documents contain the non-disturbance language described in Paragraph 17.1.4below.

     17.1.3. Attornment. Tenant shall, in the event any proceedings are brought for
the foreclosure of, or in the event of exercise of the power of sale under any mortgage or
deed of trust made by the Landlord, its successors or assigns, encumbering the Premises, or
any part thereof, attorn to the purchaser upon such foreclosure or sale or upon any grant of
a deed in lieu of foreclosure and shall recognize such purchaser as the Landlord under this
Lease.

     17.1.4. Non-Disturbance. At the execution of this Lease, Landlord represents
that there is no holder of a lien of any kind on the Premises that is superior to this Lease
(including, without limitation, any landlord under a ground lease) other than any lien
identified in a separate subordination, non-disturbance and attornment agreement signed by
Lessee. If Tenant is hereafter required to subordinate its interests under this Lease to
the lien of any mortgage or deed of trust or to any lienholder in the future, Tenant’s
obligation to subordinate its interests is conditioned upon any such lienholder or
prospective lienholder providing Tenant with a commercially reasonable non-disturbance

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agreement in a form reasonably satisfactory to Tenant, which, in substance, agrees that
so long as Tenant is not in default under the terms of this Lease, its tenancy for the use
and purposes herein described and all rights granted to Tenant hereunder will not be
disturbed and will remain in full force and effect throughout the term of this Lease and any
extensions thereof.

     17.2. Landlord’s Access. Upon reasonable advance notice (except in the event of an
emergency), Landlord and Landlord’s agents shall have the right to enter the Premises at reasonable
times for the purpose of inspecting the same, showing the same to prospective purchasers or
lenders, and exercising its rights under this Lease. In entering the Premises in situations other
than an emergency, Landlord shall use all reasonable efforts to minimize any interference with or
disruption of the operations of Tenant or its Affiliates. Notwithstanding anything in this Lease
to the contrary, if Landlord’s entry onto the Premises or other exercise of its rights under this
Lease interferes with Tenant and such interference causes a material adverse impact on Tenant’s
operations at, use or enjoyment of the Premises and such impact continues beyond forty-eight (48)
hours, Tenant shall be entitled to an equitable abatement of Rent for such period of time as the
interference continues, unless such entry is during an emergency.

     17.3. Estoppel Certificates. Each party (the “Certifying Party”) shall at any time
upon not less than ten (10) days prior written notice from the other party (for purposes of this
Paragraph, the “Requesting Party”) execute, acknowledge, and deliver to the Requesting Party a
statement in writing certifying that this Lease is unmodified and in full force and effect (or, if
modified, stating the nature of such modification and certifying that this Lease, as so modified,
is in full force and effect) and the date to which the Fixed Rent and other charges are paid in
advance, if any, and acknowledging that there are not, to the Certifying Party’s knowledge, any
uncured defaults on the part of the Requesting Party hereunder, or specifying such defaults if any
are claimed. Any such statement may be conclusively relied upon by any person to whom it shall be
delivered by the Requesting Party, including any prospective purchaser or encumbrancer of the
Premises, or any part thereof. The Certifying Party’s failure to deliver such statement within
such time shall be conclusive upon the Certifying Party that this Lease is in full force and
effect, without modification except as may be represented by the Requesting Party, that there are
no uncured defaults in the Requesting Party’s performance; and that not more than one month’s Fixed
Rent has been paid in advance. If more than one estoppel certificate is requested in any calendar
year, the Requesting Party shall reimburse the Certifying Party upon demand therefor for all
reasonable out-of-pocket costs and expenses incurred by the Certifying Party in connection with its
review of any statement provided pursuant this Paragraph, including, without limitation, reasonable
attorneys’ fees.

     17.4. Holding Over. Any holdover by Tenant beyond the scheduled termination of this
Lease with the consent of Landlord, shall create a month-to-month tenancy at one hundred twenty
five percent (125%) of the then current Rent. Nothing contained in this Paragraph shall be
construed to grant Tenant the right to holdover without the express written consent of Landlord.

     17.5. Brokers. Landlord and Tenant each represent warrant to the other that neither
has dealt with any real estate broker or agent in connection with this Lease or its
negotiation other than William J. Swirtz, whose fees and commissions, if any, shall be paid by
Tenant.

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Landlord and Tenant each agree to indemnify, defend and hold the other harmless for, from
and against any cost, expense or liability (including attorneys’ fees) for any compensation,
commission or fees claimed by any real estate broker or agent as a result of the action of the
indemnifying party. This indemnity shall survive the expiration or prior termination of this
Lease.

     17.6. Notices. Any notice required or permitted to be given hereunder must be in
writing and given (i) by personal delivery, (ii) delivery by United States Postal Service certified
mail, with postage prepaid and return receipt required, or (iii) delivery by a reputable overnight
courier to the address set forth in Article 1. Notices shall be deemed to have been given
when received or two (2) business days after mailing, whichever is earlier. Either party may change
the address to which notices shall be sent by written notice given in accordance herewith.

     17.7. Waivers. No waiver by either party of any provision hereof shall be deemed a
waiver of any other provision hereof or of any subsequent breach by the other of the same or any
other provision. Either party’s consent to or approval of any act shall not be deemed to render
unnecessary the obtaining of that party’s consent to or approval of any subsequent act by the
other. The acceptance of Rent hereunder by Landlord shall not be a waiver of any preceding breach
by Tenant of any provision hereof, other than the failure of Tenant to pay the particular Rent so
accepted, regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of
such Rent.

     17.8. Reasonable Conduct and Consent. Whether or not specifically stated in a
provision of this Lease, Landlord and Tenant shall, at all times, perform their duties and
obligations under this Lease in a reasonable and prudent fashion consistent with the efficient
operation of Landlord and Tenant’s businesses and in accordance with accepted industry practices
with respect to office building management and operation. It is the parties’ intent that all Lease
provisions shall be reasonably and equitably enforced in a prudent manner consistent with the
customs and practices observed by landlords and tenants in other first-class office buildings in
the metropolitan Phoenix, Arizona area. Unless specifically stated otherwise herein, whenever
consent or approval of Landlord or Tenant is required under the terms of this Lease, such consent
or approval shall not be unreasonably withheld, delayed or conditioned, and any dispute as to
whether a party has been reasonable in withholding its consent or approval shall be resolved in
accordance with Paragraph 17.9. If either party withholds any consent or approval, such
party shall, on written request, deliver to the other party a written statement giving the reasons
therefor. It is understood and agreed that to the extent Landlord is required to obtain the
consent, approval, agreement or waiver of Landlord’s lender with respect to a matter for which
Landlord’s approval has been requested under this Lease, Landlord shall in no event be deemed to
have unreasonably withheld Landlord’s consent, approval, agreement or waiver thereof if such lender
shall not have given its approval if required.

     17.9. Dispute Resolution. As to any dispute which is subject to resolution pursuant
to this Paragraph 17.9, such matter will be resolved by arbitration held in Phoenix,
Arizona under the Commercial Arbitration Rules of the Phoenix, Arizona office of the American
Arbitration Association (“AAA”) by a single independent arbitrator who has experience and
qualifications appropriate to resolve the matter in dispute. If the parties are unable to
mutually agree on an arbitrator within ten (10) days following written notice by either party of a
dispute which is

33

 

subject to arbitration, the arbitrator shall be selected by AAA. The decision of
the arbitrator will be final and binding on both parties, subject to appeal in a U.S. District
Court or state court having jurisdiction only on the grounds specified in the Federal Arbitration
Act, 9 U.S.C. §1 et seq. The prevailing party in the arbitration (as determined by the arbitrator)
shall be entitled to reasonable attorneys’ fees and expenses incurred in the resolution of said
dispute. Any disputes not expressly made subject to this Paragraph 17.9 shall not be
resolved by arbitration unless expressly agreed to by both parties.

     17.10. Document Review. If either party (for purposes of this Paragraph, the
“Requesting Party”) makes any request upon the other party (the “Reviewing Party”) requiring such
party or the attorneys of Landlord to review and/or prepare (or cause to be reviewed and/or
prepared) any documents, plans, specifications or other submissions in connection with or arising
out of this Lease (other than estoppel certificates, which are addressed in Paragraph 17.3
and non-disturbance agreements in the event of any financing by Landlord), then the Requesting
Party shall reimburse the Reviewing Party upon demand therefor for all reasonable out-of-pocket
costs and expenses incurred by the Reviewing Party in connection with such review and/or
preparation, including, without limitation, reasonable attorneys’ fees.

     17.11. Attorneys’ Fees. If either party brings an action, suit, arbitration, or
proceeding to enforce the terms hereof or declare rights under this Lease, the prevailing party in
the final adjudication of any such action, on trial or appeal, shall be entitled to its costs and
expenses of suit, including, without limitation, its actual attorneys’ fees, to be paid by the
losing party as fixed by the court. For purposes of this Paragraph 17.10, a party will be
considered to be the “successful party” if (a) such party initiated the litigation and
substantially obtained the relief which it sought (whether by judgment, voluntary agreement or
action of the other party, trial, or alternative dispute resolution process), (b) such party did
not initiate the litigation and either (i) received a judgment in its favor, or (ii) did not
receive judgment in its favor, but the party receiving the judgment did not substantially obtain
the relief which it sought, or (c) the other party to the litigation withdrew its claim or action
without having substantially received the relief which it was seeking.

     17.12. Authority. Any individual executing this Lease on behalf of either party is
authorized to do so by requisite action of the appropriate board, partnership, or other entity, as
the case may be. Upon written request from one party, the other will deliver a copy of the
resolution or other document evidencing such authority.

     17.13. Construction. Paragraph captions are solely for the convenience of the parties
and shall not be deemed to or be used to define, construe, or limit the terms hereof. As used in
this Lease, the masculine, feminine and neuter genders shall be deemed to include the others, and
the singular number shall be deemed to include the plural, whenever the context so requires. The
invalidity of any provisions of this Lease as determined by a court of competent jurisdiction shall
in no way affect the validity of any other provision hereof. This Lease shall be governed by the
laws of the state of Arizona, without regard to principles of conflicts of laws. The terms of this
agreement have been negotiated and shall not be construed for or against any party.

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     17.14. Binding Effect. Subject to any provisions hereof restricting assignment or
subletting by Tenant, this Lease shall bind the parties and their personal representatives,
successors and assigns.

     17.15. W-9. Promptly upon execution of this Lease and prior to the payment of any
installment of Rent, Landlord shall deliver an executed W-9 taxpayer identification number and
certification form to Tenant.

     17.16. Severability. The unenforceability, invalidity, or illegality of any provision
of this Lease shall not render the other provisions unenforceable, invalid or illegal, but such
provision shall be modified to the minimum extent necessary to make such provision enforceable.

     17.17. Time of Essence. Time is of the essence of this Lease and each and all of its
provisions.

     17.18. Counterparts. This Lease may be executed in two or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same
Lease.

     17.19. Incorporation of Prior Agreements; Amendments. This Lease contains all
agreements of the parties with respect to any matter mentioned herein. No prior agreement or
understanding pertaining to any such matter shall be effective. This Lease may be modified in
writing only, which writing shall be signed by the parties in interest at the time of the
modification.

     17.20. Force Majeure. Landlord shall have no liability whatsoever to Tenant for
delays on account of the inability of Landlord to fulfill, or delay in fulfilling, any of
Landlord’s obligations under this Lease by reason of strike, other labor trouble, governmental
preemption of priorities or other controls in connection with a national or other public emergency,
or shortages of fuel, supplies or labor resulting therefrom or any other cause, similar to the
above, beyond Landlord’s reasonable control (a “Force Majeure Event”). If this Lease specifies a
time period for performance of an obligation of Landlord, that time period shall be extended by the
period of any delay in Landlord’s performance caused by a Force Majeure Event. If Landlord intends
to assert a delay as a result of any Force Majeure Event, Landlord shall notify Tenant of such
Force Majeure Event in writing within ten (10) days of such event.

     17.21. CC&Rs. During the Term of this Lease, Landlord hereby acknowledges and agrees
that Tenant shall have the exclusive right to exercise any and all of Landlord’s rights and
privileges as an “Owner” or “Declarant” under the CC&Rs”, including, but not limited to, Landlord’s
rights as an “Owner” related to the establishment of an organization, association or other entity
for the purpose of acting as “Approving Agent” and/or “Operator”. The capitalized terms in the
preceding sentence shall have the meanings set forth in the CC&Rs. Notwithstanding the foregoing,
(i) Tenant shall not execute any documents or instruments pursuant to the CC&Rs modifying,
terminating or waiving any provision of the CC&Rs without Landlord’s prior written consent, such
consent not to be unreasonably withheld, conditioned or delayed, and (ii) upon Landlord’s request,
Tenant shall promptly provide Landlord with copies

35

 

of any written consents or approvals granted by Tenant under the CC&Rs or other written
correspondence issued or received by Tenant in its capacity as “Approving Agent” and/or “Operator”
under the CC&Rs.

ARTICLE 18

EXCULPATION OF LANDLORD

     Except for claims which may be covered by insurance or condemnation proceeds payable to
Landlord, if Tenant or an officer, director, agent or employee of Tenant (each a “Tenant Party”)
shall recover a money judgment against Landlord, the Tenant Party agrees that such money judgment
shall be satisfied solely by Landlord’s interest in the Premises, as the same may then be
encumbered, and Landlord, its affiliates, partners, officers, directors, shareholders, and
employees shall not be liable otherwise for any other claim arising out of or related to this
Lease; provided that Landlord maintains at least a $10,000,000 equity interest in the Premises.
Notwithstanding anything contained in this Article 18 to the contrary, the foregoing
provision shall not limit Tenant’s ability to seek injunctive relief or specific performance of
this Lease or Tenant’s right to recover any insurance or condemnation proceeds. Neither Landlord
nor any partner, director, shareholder, officer, member, manager, agent, representative or employee
(each a “Landlord Party”) of Landlord shall be liable (i) for any such damage caused by other
tenants or persons in or about the Premises, or caused by quasi-public work unless such damages are
caused by the gross negligence or willful misconduct of Landlord or any Landlord Party; or (ii) for
consequential damages arising out of any loss of the use of the Premises or any equipment or
facilities therein by Tenant or any person claiming through or under Tenant.

ARTICLE 19

DAMAGE TO TENANT’S PROPERTY

     Neither Landlord nor any Landlord Party shall be liable for (i) loss or damage to any property
by theft or otherwise, (ii) any injury or damage to persons or property resulting from fire,
explosion, falling plaster, steam, gas, electricity, water or rain which may leak from any part of
the Structures or from the pipes, appliances or plumbing work therein or from the roof, street or
subsurface or from any other place or resulting from dampness, or any other cause whatsoever,
unless caused by the gross negligence or willful misconduct of Landlord or any Landlord Party.
Neither Landlord nor any Landlord Party shall be liable for (a) interference with light or other
incorporeal hereditaments, or (b) any latent defect in the Premises. Tenant shall give immediate
notice to Landlord in case of fire or accidents in the Premises, or defects therein or in the
fixtures or equipment.

ARTICLE 20

LIMITATION ON LIABILITY

     20.1. Limitations. In consideration of the benefits accruing hereunder, Tenant agrees
that, in the event of any actual or alleged failure, breach or default of this Lease by Landlord,
no writ of execution will ever be levied against the assets of any Landlord Party.

     20.2. No Required Obligation. The obligations of Landlord under this Lease do not
constitute personal obligations of any Landlord Party, and Tenant shall not seek
recourse against

36

 

any such Landlord Party or any of their personal assets for satisfaction of
any liability in respect to this Lease. The covenants and agreements set forth in this Article are
enforceable both by Landlord and also by any Landlord Party.

ARTICLE 21

FINANCIAL STATEMENTS

     21.1. Financial Statements. If Tenant is not required to file quarterly and annual
reports with the Securities and Exchange Commission, then Tenant shall submit to Landlord, either
in print or in electronic form, the following financial statements, all of which must be prepared
in accordance with GAAP: (i) for each of the first three fiscal quarters of a fiscal year of Tenant
during the Term, unaudited quarterly financial statements for Tenant, within seventy-five (75) days
after the end of the applicable fiscal quarter of Tenant; and (ii) annual financial statements for
Tenant audited by an independent certified public accountant, within one hundred twenty (120) days
after the end of the applicable fiscal year of Tenant.

ARTICLE 22

LEASE CHARACTERIZATION

     22.1. Intent of the Parties. Landlord and Tenant intend that:

     (i) this Lease is a “true lease” and not a financing lease, mortgage, equitable
mortgage, deed of trust, trust agreement, security agreement or other financing or trust
arrangement, and the economic realities of this Lease are those of a true lease; and

     (ii) the business relationship created by this Lease and any related documents is
solely that of a long-term commercial lease between landlord and tenant and has been entered
into by both parties in reliance upon the economic and legal bargains contained herein.

     22.2. Waiver. Each party waives any claim or defense based upon the characterization
of this Lease as anything other than a true lease and irrevocably waives any claim or defense which
asserts that this Lease is anything other than a true lease. Each party covenants and agrees that
it will not assert that this Lease is anything but a true lease. Nothing contained in this Lease
creates or is intended to create a joint venture, partnership (either de jure or de facto),
equitable mortgage, trust, financing device or arrangement, security interest or the like.

     22.3. Material Inducement. The expressions of intent and the waivers, set forth in
this Article 22 are a material inducement to Landlord and Tenant entering into this Lease.

ARTICLE 23

RIGHT OF FIRST OFFER

     23.1. Grant of Right of First Offer. Provided that no event of default exists or has
occurred and is continuing, if Landlord shall desire to sell or convey all or any portion of
the Premises (the “Offered Property”) to a third party that is not an Affiliate of Landlord,
then

37

 

Landlord shall first give Tenant the right to purchase the Offered Property for a price and on
terms and conditions determined by Landlord and set forth in a notice given to Tenant (the
“Offer”). Tenant shall have thirty (30) days from receipt of the Offer within which to elect to
purchase the Offered Property on the precise terms and conditions of the Offer (except that if the
Offer shall be in whole or in part for consideration other than cash, Tenant shall have the right
to pay in cash the fair market value of such noncash consideration). If Tenant elects to so
purchase the Offered Property, Tenant shall give to Landlord written notice thereof (“Acceptance
Notice”) and the closing shall be held within thirty (30) days after the date of the Acceptance
Notice or such longer period of time as is set forth in the Offer, whereupon Landlord shall convey
the Offered Property to Tenant. At the closing, Landlord shall deliver to Tenant a special
warranty deed (or local equivalent) sufficient to convey to Tenant fee simple title to the Offered
Property free and clear of all easements, rights-of-way, encumbrances, liens, covenants,
conditions, restrictions, obligations and liabilities, except for any such matters in effect upon
the transfer of the Offered Property by Tenant to Landlord, such matters created, suffered or
consented to in writing by Tenant or arising by reason of the failure of Tenant to have observed or
performed any term, covenant or agreement of this Lease to be observed or performed by Tenant, and
the lien of any taxes or assessments then affecting the Premises; provided, however that if the
Offer contemplates that the Offered Property is to be conveyed subject to any existing financing
then the Offered Property shall be conveyed subject to the mortgage or deed of trust securing such
financing unless Tenant elects to pay off such financing in accordance with the terms of the
applicable loan documents. At the closing, this Lease shall terminate as to the Offered Property
and if the Offered Property is less than the entire Premises then the Fixed Rent shall be adjusted
to reflect any reduction in the rentable square footage of the Premises. If Tenant does not timely
elect to purchase the Offered Property, Landlord shall be free to sell the Premises to any other
Person within twelve (12) months of Tenant’s rejection or deemed rejection without being required
to comply again with the foregoing provisions of this Section, provided that, if Landlord intends
to sell the Offered Property (i) after such twelve (12) month period, or (ii) within such twelve
(12) month period at a price less than ninety-five percent (95%) of the price described in the
Offer, Landlord shall give Tenant written notice, setting forth the applicable purchase price and
terms and conditions, and Tenant shall have fifteen (15) days to elect in writing to purchase the
Offered Property at such purchase price and on such terms and conditions. The right of first offer
granted by this Section shall not survive the expiration or earlier termination of this Lease.

     23.2. Excluded Transaction. Notwithstanding anything to the contrary herein, Tenant’s
right of first offer shall not apply to (i) any transfer of the Premises or any portion thereof to
an Affiliate of Landlord, (ii) any sale or conveyance of the Premises or any portion thereof in
foreclosure sale (or similar proceeding) of a bona fide mortgage or deed of trust or to any
conveyance in lieu of foreclosure of such bona fide mortgage or deed of trust, or (iii) any sale,
conveyance, alienation, mortgage, encumbrance, pledge or transfer of the beneficial ownership
interest, membership interest or other equity interest in Landlord, or the change of the trustee,
manager or other controlling person of the Landlord.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

38

 

     IN WITNESS WHEREOF, the undersigned have executed this Lease as of the date and year first
above written.

	 	 	 	 	 
	 	LANDLORD:

COLE OF PHOENIX AZ, LLC, a Delaware limited liability

company

By:  Cole REIT Advisors III, LLC, a Delaware limited

liability company, its manager

 
	 
	 	 	By:  	/s/
Todd J. Weiss 	 
	 	 	 	Name: Todd J. Weiss 	 
	 	 	 	Title: Senior Vice President 	 
	 
	 	TENANT:

APOLLO GROUP, INC., an Arizona corporation

 	 
	 	By:  	
/s/ Brian L. Swartz 	 
	 	 	Name:  	Brian L. Swartz 	 
	 	 	Title: 
 	Senior Vice
President, 

Chief Financial Officer 	 
	 

	 	 	 

	STATE OF ARIZONA
	 	)
	 
	 	)ss.
	County of Maricopa
	 	)

     The foregoing instrument was acknowledged before me this ________ day of March, 2011, by Todd
J. Weiss, the Senior Vice President of Cole REIT Advisors III, LLC, a Delaware limited liability
company and manager of Cole OF Phoenix AZ, LLC, a Delaware limited liability company, on behalf of
the limited liability company.

	 	 	 

	My Commission Expires: 

	 	NOTARY PUBLIC

39

 

	 	 	 

	STATE OF ARIZONA
	 	)
	 
	 	)ss.
	County of Maricopa
	 	)

     The foregoing instrument was acknowledged before me as of the ___ day of March, 2011 by
________________________ the _____________________of APOLLO GROUP, INC., an Arizona corporation, on
behalf of the corporation.

	 	 	 

	 

	 	NOTARY PUBLIC
	My Commission Expires:
	 	 

40Exhibit 10.1

Exhibit 10.1

SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”) is made as of the
22nd day of March, 2011 (the “Effective Date”), by and between Ventas, Inc., a Delaware
corporation (the “Company”), and Debra A. Cafaro (the “Executive”).

W I T N E S S E T H:

WHEREAS, Executive has, pursuant to the terms of an Employment Agreement dated as of March 5,
1999 as amended and restated as of December 28, 2006 and as further amended as of December 31, 2008
(the “Existing Employment Agreement”), served as Chief Executive Officer of the Company
since March 5, 1999, as President of the Company from March 5, 1999 to November 1, 2010, and as
Chairman of the Board of Directors of the Company (the “Board”) since January 28, 2003;

WHEREAS, the Company and Executive desire to amend and restate in its entirety the Existing
Employment Agreement to. among other changes, delete the tax gross-up in connection with parachute
excise taxes and delete the ability for Executive to terminate employment for any reason within a
30-day period after the first anniversary of a change of control and have such termination
considered a termination of employment for Good Reason (as hereinafter defined) under this
Agreement;

WHEREAS, the Company and Executive desire to enter into this Agreement pursuant to which the
Executive will continue to serve as the Company’s Chief Executive Officer and Chairman of the
Board; and

NOW, THEREFORE, in consideration of the premises and the respective covenants and agreements
contained herein, and intending to be legally bound hereby, the Company and Executive agree as
follows:

1. EMPLOYMENT. The Company hereby agrees to employ the Executive and Executive hereby agrees
to be employed by the Company upon the terms and subject to the conditions herein set forth. The
term of employment of Executive by the Company pursuant to this Agreement (the “Employment
Term”) shall commence on the date hereof and shall continue until terminated pursuant to
Section 6 or amended pursuant to Section 21.

2. DUTIES. The Company hereby employs Executive and Executive hereby accepts employment with
the Company as Chief Executive Officer. During the Employment Term, Executive shall have the
title, status and duties of Chief Executive Officer, shall report directly to the Board, and shall
have duties consistent with and authority comparable to Chief Executive Officers of other
publicly-traded REITs, including the designation of senior management. During the Employment Term,
the Company shall cause Executive to be nominated for election as a member of the Board.

 

 

 

3. EXTENT OF SERVICES. Executive, subject to the direction and control of the Board, shall
have the power and authority commensurate with her status as Chief Executive
Officer and necessary to perform her full-time duties hereunder. During the term, Executive
shall devote her working time, attention, labor, skill and energies to the business of the Company,
and shall not, without the consent of the Company, be actively engaged in any other business
activity, whether or not such business activity is pursued for gain, profit or other pecuniary
advantage, that competes, conflicts or interferes with the performance of her duties hereunder in
any material way.

4. COMPENSATION. As compensation for services hereunder rendered, Executive shall receive
during the Employment Term:

(a) BASE SALARY. A base salary at a rate of not less than nine hundred fifteen
thousand dollars ($915,000) per year subject to increases from time to time as determined by the
Executive Compensation Committee acting in its sole discretion. Executive’s base salary shall be
payable in equal installments in accordance with the Company’s normal payroll procedures (but no
less frequently than semimonthly). Such Base Salary shall be in effect as of January 1, 2011. The
term “Base Salary” for purposes of this Agreement shall refer to Executive’s base salary
annualized, as most recently increased.

(b) INCENTIVE COMPENSATION. In addition to Base Salary, Executive shall be eligible
to receive such other bonuses and incentive compensation as the Board may approve from time to
time.

5. BENEFITS.

(a) Executive shall be entitled to participate in any and all pension benefit, welfare benefit
(including, without limitation, medical, dental, disability and group life insurance coverages) and
fringe benefit plans from time to time in effect for executives of the Company and its affiliates.
Without limitation of the foregoing, the Company shall provide Executive, without any cost to
Executive, with two million dollars of life insurance coverage and executive disability coverage
with an “own occupation” definition of disability providing annual benefits of at least 100% of
Executive’s Base Salary. To the extent any of the benefits or payments within this Section 5(a)
are treated as taxable to the Executive, the Company shall pay Executive an additional amount such
that the net amount or benefit retained by Executive after deduction or payment of all federal,
state, local and other taxes with respect to amounts or benefits under this Section 5(a) shall be
equal to the full amount of the payments or benefits required by this Section 5(a).

(b) Executive shall be granted on the Effective Date one hundred fifty-two thousand nine
hundred thirty-four (152,934) shares of restricted common stock of the Company under the Ventas,
Inc. 2006 Incentive Plan, as amended. The agreement evidencing such award shall be substantially
in the form attached to this Agreement as Exhibit A.

(c) Executive shall be entitled to participate in such bonus, stock option and other incentive
compensation plans of the Company and its affiliates in effect from time to time for executives of
the Company.

 

2

 

(d) Executive shall be entitled to four weeks of paid vacation each year earned on the first
day of each calendar year. The Executive shall schedule the timing of such vacations in a
reasonable manner. The Executive may also be entitled to such other leave, with or without
compensation, as shall be mutually agreed by the Company and Executive.

(e) Executive may incur reasonable business related expenses including for promoting the
business and expenses for entertainment, travel, cellular telephone and similar items related
thereto. The Company shall reimburse Executive for all such reasonable expenses subject to the
Company’s reimbursement procedures regarding the reporting and documentation of such expenses.

(f) The Company intends that all provisions of this Agreement will be fully operative,
effective, binding and enforceable as of the Effective Date and agrees to adopt such employee
benefit plans, amendments to employee benefit plans or other arrangements, as applicable, take such
other acts and pay such other amounts as are necessary to effectuate the provisions of this
Agreement effective on the Effective Date. Without limitation of the foregoing, to the extent
Executive experiences any economic or tax or other detriment or diminution in benefit on account of
or related to any of such provisions not being fully operative, effective, binding and enforceable
on the Effective Date fully in accordance with the terms and provisions of such provisions, or any
delay or failure to comply with such provisions, the Company shall immediately take such actions,
and pay such amounts, as Executive and the Executive Compensation Committee reasonably determine
are appropriate so that the Executive achieves at least the same economic, tax and other benefits
the Executive would have had if such provisions were fully operative, effective, binding and
enforceable in accordance with their terms as of the Effective Date.

6. TERMINATION OF EMPLOYMENT.

(a) DEATH OR DISABILITY. Executive’s employment shall terminate automatically upon
Executive’s death during the Employment Term. If the Company determines in good faith that the
Disability of Executive has occurred during the Employment Term (pursuant to the definition of
Disability set forth below), it may give to Executive written notice of its intention to terminate
Executive’s employment. In such event, Executive’s employment with the Company shall terminate
effective on the 30th day after receipt of such notice by Executive (the “Disability Effective
Date”), provided that, within the 30 days after such receipt, Executive shall not have returned
to performance of Executive’s duties. For purposes of this Agreement, “Disability” shall
mean the total disability as determined by the Board in accordance with standards and procedures
similar to those under the Company’s long-term disability plan, or, if none, a physical or mental
infirmity which impairs the Executive’s ability to perform substantially her duties for a period of
180 consecutive days.

(b) CAUSE. The Company may terminate Executive’s employment during the Employment
Term for Cause or without Cause. For purposes of this Agreement, “Cause” shall mean the
Executive’s (i) conviction of or plea of nolo contendere to a crime involving moral turpitude; or
(ii) willful and material breach by Executive of her duties and responsibilities which is directly
and materially harmful to the business and reputation of the Company and which is committed in bad
faith or without reasonable belief that such breaching conduct is in the
best interests of the Company and its affiliates, but with respect to (ii) only if the Board
adopts a resolution by a vote of at least 75% of its members so finding after giving the Executive
and her attorney an opportunity to be heard by the Board. Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or based upon advice of counsel
for the Company shall be conclusively presumed to be done, or omitted to be done, by Executive in
good faith and in the best interests of the Company.

 

3

 

(c) GOOD REASON. Executive’s employment may be terminated by Executive for Good
Reason or otherwise. “Good Reason” shall exist upon the occurrence, without Executive’s
express written consent, of any of the following events:

(i) a diminution in Executive’s position (including status, offices, titles and
reporting requirements), authority, duties or responsibilities (including the assignment to
Executive of any duties inconsistent with Executive’s position, authority, duties or
responsibilities), in each case, as Chief Executive Officer, excluding for this purpose an
isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied
by the Company promptly after receipt of notice thereof given by the Executive, it being
understood that it shall constitute a diminution in Executive’s position within the meaning
of this provision if Executive is, following a transaction in which the Company is a
participant, no longer the chief executive officer of a publicly traded company;

(ii) the Company shall (A) reduce the Base Salary or annual maximum bonus opportunity
of Executive or (B) reduce (other than pursuant to a uniform reduction applicable to all
similarly situated executives of the Company) Executive’s benefits and perquisites;

(iii) the Company shall require Executive to relocate Executive’s principal business
office to any location more than 30 miles from its location on the Effective Date;

(iv) the Company’s failure or refusal to comply with any provision of this Agreement;

(v) the Company (1) is a debtor in any bankruptcy case in which an order for relief is
entered under any chapter of the federal Bankruptcy Code; (2) is adjudicated a bankrupt
under any bankruptcy, insolvency, or reorganization law; (3) has a receiver of all or a
substantial portion of its assets or property appointed; or (4) makes an assignment for the
benefit of creditors; or

(vi) the failure of the Company to obtain the assumption of this Agreement as
contemplated by Section 12(c).

 

4

 

(d) For purposes of cross-references to this Agreement, “Change of Control” shall mean the
occurrence of any one of the following events:

(i) An acquisition of any voting or other securities by any “Person” (having the
meaning ascribed to such term in Section 3(a)(9) of the Securities Exchange
Act of 1934, as amended (“1934 Act”) and used in Sections 13(d) and 14(d) thereof,
including a “group” as defined in Section 13(d)), such that immediately after which such
Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 under the 1934 Act) of
20% or more of either (i) any class of then-outstanding equity securities of the Company
(“Outstanding Shares”) or (ii) the combined voting power of the Company’s then outstanding
voting securities entitled to vote generally in the election of directors (“Voting
Securities”); provided, however, that in determining whether a Change of Control has
occurred, Outstanding Shares or Voting Securities which are acquired in an acquisition by
(i) the Company or any of its subsidiaries or, (ii) an employee benefit plan (or a trust
forming a part thereof) maintained by the Company or any of its subsidiaries shall not
constitute an acquisition which would cause a Change of Control;

(ii) The individuals who, as of the Effective Date, constituted the Board (the
“Incumbent Board”) cease for any reason to constitute over 50% of the Board; provided,
however, that if the election, or nomination for election by the Company’s stockholders, of
any new director was approved by a vote of over 50% of the Incumbent Board, such new
director shall, for purposes of this Section 6(d), be considered as though such person were
a member of the Incumbent Board; provided, further, however, that no individual shall be
considered a member of the Incumbent Board if such individual initially assumed office as a
result of either an actual or threatened “Election Contest” (as described in Rule 14a-11
promulgated under the 1934 Act) or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Incumbent Board (a “Proxy Contest”),
including by reason of any agreement intended to avoid or settle any Election Contest or
Proxy Contest;

(iii) Consummation of a merger, consolidation or reorganization involving the Company,
unless each of the following events occurs in connection with such merger, consolidation or
reorganization:

(1) the stockholders of the Company, immediately before such merger,
consolidation or reorganization, have Beneficial Ownership, directly or indirectly
immediately following such merger, consolidation or reorganization, of over 50% of
the then outstanding shares of common stock and the combined voting power of all
voting securities of the corporation resulting from such merger or consolidation or
reorganization (the “Surviving Company”) in substantially the same proportion as
their Beneficial Ownership of the Outstanding Shares and Voting Securities
immediately before such merger, consolidation or reorganization;

(2) the individuals who were members of the Incumbent Board immediately prior
to the execution of the agreement providing for such merger, consolidation or
reorganization constitute over 50% of the members of the board of directors of the
Surviving Company; and

(3) no Person (other than the Company, any of its subsidiaries, any employee
benefit plan (or any trust forming a part thereof) maintained by the Company, the
Surviving Company or any Person who, immediately prior to such
merger, consolidation or reorganization had Beneficial Ownership of 20% or more
of the then Outstanding Shares or Voting Securities) has Beneficial Ownership of 20%
or more of the then Outstand Shares of the Surviving Company or combined voting
power of the Surviving Company’s then outstanding voting securities;

 

5

 

(iv) Approval by the Company’s stockholders of a complete liquidation or dissolution of
the Company, or the occurrence of the same.

(v) Approval by the Company’s stockholder of an agreement for the assignment, sale,
conveyance, transfer, lease or other disposition of all or substantially all of the assets
of the Company to any Person (other than a transfer to a subsidiary of the Company), or the
occurrence of the same.

(vi) The occurrence of any transaction which is reasonably likely to result in the
Company not continuing to be a real estate investment trust as defined under section 856 of
the Code (for example, such as because the Company will not have sufficient qualifying
income or assets).

(vii) Any other event that the Board shall determine constitutes an effective Change of
Control or Company.

(viii) Notwithstanding the foregoing, a Change of Control shall not be deemed to occur
solely because any Person (the “Subject Person”) acquired Beneficial Ownership of more than
the permitted amount of the Outstanding Shares or Voting Securities as a result of the
acquisition of Outstanding Shares or Voting Securities by the Company which, by reducing the
number of Outstanding Shares or Voting Securities outstanding, increases the proportional
number of shares Beneficially Owned by the Subject Person; provided that if a Change of
Control would occur (but for the operation of this sentence) as a result of the acquisition
of Shares or Voting Securities by the Company, the Subject Person becomes the Beneficial
Owner of any additional Outstanding Shares or Voting Securities which increases the
percentage of the then Outstanding Shares or Voting Securities Owned by the Subject Person,
then a Change of Control shall occur.

(e) NOTICE OF TERMINATION. Any termination by the Company for Cause, or by Executive
for Good Reason, shall be communicated by a Notice of Termination given in accordance with this
Agreement. For purposes of this Agreement, a “Notice of Termination” means a written
notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii)
sets forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive’s employment under the provision so indicated, and (iii) specifies the
intended termination date (which date, in the case of a termination for Good Reason, shall be not
more than thirty days after the giving of such notice). The failure by Executive or the Company to
set forth in the Notice of Termination any fact or circumstance which contributes to a showing of
Good Reason or Cause shall not waive any right of Executive or the Company, respectively, hereunder
or preclude Executive or the Company, respectively,
from asserting such fact or circumstance in enforcing Executive’s or the Company’s rights
hereunder.

 

6

 

(f) DATE OF TERMINATION. “Date of Termination” means (i) if Executive’s
employment is terminated by the Company for Cause, or by Executive for Good Reason, the later of
the date specified in the Notice of Termination or the date that is one day after the last day of
any applicable cure period, (ii) if Executive’s employment is terminated by the Company other than
for Cause or Disability, or Executive resigns without Good Reason, the Date of Termination shall be
the date on which the Company or Executive notified Executive or the Company, respectively, of such
termination and (iii) if Executive’s employment is terminated by reason of death or Disability, the
Date of Termination shall be the date of death of Executive or the Disability Effective Date, as
the case may be. To the extent necessary to have payments and benefits under this Agreement be
exempt from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended
(“Code Section 409A”) or comply with the requirements of Code Section 409A, the Company and
Executive agree to cooperate in a reasonable manner (including with regard to any post-termination
services by the Executive) such that the Date of Termination as defined in this Agreement shall
constitute a “separation from service” pursuant to Code Section 409A (“Separation from
Service”). Notwithstanding anything contained in this Agreement to the contrary, the date on
which a Separation from Service occurs shall be the “Date of Termination” or termination of
employment for purposes of determining the timing of payments under this Agreement to the extent
necessary to have such payments and benefits under this Agreement be exempt from the requirements
of Code Section 409A or comply with the requirements of Code Section 409A.

7. OBLIGATIONS OF THE COMPANY UPON TERMINATION. Following any termination of Executive’s
employment hereunder for any reason whatsoever, the Company shall pay Executive her Base Salary
through the Date of Termination, all amounts earned by Executive through the Date of Termination
(including accrued vacation and bonus and expenses incurred but not yet reimbursed), and all
amounts owed to Executive pursuant to the terms and conditions of the benefit plans, programs and
arrangements of the Company at the time such payments are due. In addition, Executive shall be
entitled to the following additional payments and benefits.

(a) DEATH OR DISABILITY. If, during the Employment Term, Executive’s employment shall
terminate by reason of Executive’s death or Disability, the Company shall pay to Executive (or her
designated beneficiary or estate, as the case may be) the prorated portion of any Target Bonus (as
defined in Section 7(d)) Executive would have received for the year of termination of employment.
Such amount shall be paid within 30 days of the date when such amounts would otherwise have been
payable to the Executive if Executive’s employment had not terminated but in no event later than
the March 15th of the calendar year following the calendar year in which the Executive’s employment
terminated. In addition, if during the Employment Term, Executive’s employment shall terminate by
reason of Executive’s Disability, the Company shall provide the benefits set forth in Section
7(b)(2).

 

7

 

(b) GOOD REASON; OTHER THAN FOR CAUSE. Subject to Executive’s execution and delivery
of the Release, if the Company shall terminate Executive’s employment
other than for Cause (but not for Disability) or the Executive shall terminate her employment
for Good Reason:

(1) The Company shall pay Executive on the Executive’s Date of Termination an
amount equal to the sum of (i) the prorated portion of the Target Bonus for
Executive for the year in which the Date of Termination occurs, plus (ii) an amount
equal to three (3) times the sum of the Executive’s Base Salary and Target Bonus as
of the Date of Termination.

(2) For a period of two (2) years following the Date of Termination, the
Executive shall be treated as if she had continued to be an Executive for all
purposes under the Company’s Health Insurance Plan and Dental Insurance Plan; or if
the Company has not yet established its own Health Insurance Plan and/or Dental
Insurance Plan or the Executive is prohibited from participating in such plan, the
Company shall, at its sole cost and expense, provide health and dental insurance
coverage for Executive which is equivalent to the coverage provided to Executive as
of the Date of Termination. Such benefits shall not have any waiting period for
coverage and shall provide coverage for any pre-existing condition. Following this
continuation period, the Executive shall be entitled to receive continuation
coverage under Part 6 of Title I of ERISA treating the end of this period as a
termination of the Executive’s employment if allowed by law.

(3) For a period of two (2) years following the Date of Termination, Company
shall maintain in force, at its expense, all life insurance being provided or
required to be provided to the Executive by the Company as of the Date of
Termination and shall thereafter enable Executive to assume such life insurance at
the Executive’s expense.

(4) For a period of two (2) years following the Executive’s Date of
Termination, the Company shall provide short-term and long-term disability insurance
benefits to Executive equivalent to the coverage that the Executive would have had
she remained employed under the disability insurance plans applicable to Executive
on the Date of Termination. Should Executive become disabled during such period,
Executive shall be entitled to receive such benefits, and for such duration, as the
applicable plan provides.

(5) To the extent not already vested pursuant to the terms of such plan, the
Executive’s interests under any retirement, savings, deferred compensation, profit
sharing or similar arrangement of the Company shall be automatically fully (i.e.,
100%) vested, without regard to otherwise applicable percentages for the vesting of
employer contributions based upon the Executive’s years of service with the Company.

(6) The Company shall adopt such employee benefit plans or amendments to its
employee benefit plans, if any, as are necessary to effectuate the provisions of
this Agreement.

 

8

 

(7) Executive shall become vested in all restricted stock awards, stock options
and other performance related compensation, including any performance cash plan
awards or awards under a successor or replacement plan, on the basis of the maximum
payout for any open performance cycles.

(8) The Company shall provide Executive with outplacement including executive
office space and an executive secretary (both the office space and secretary shall
be of a quality comparable to that the Executive had during the Employment Term) in
a city or other locale chosen by Executive for a period of one year after the
termination of Executive’s employment with an aggregate cost not to exceed $50,000.

(c) DEATH AFTER TERMINATION. In the event of the death of Executive during the period
Executive is receiving payments pursuant to this Agreement, Executive’s designated beneficiary
shall be entitled to receive the balance of the payments; or in the event of no designated
beneficiary, the remaining payments shall be made to Executive’s estate.

(d) TARGET BONUS. For the purposes of all provisions of this Agreement, the term
“Target Bonus” shall mean the greater of (x) the highest actual bonus paid to Executive
pursuant to the Company’s annual incentive plan with respect to any of the three preceding calendar
years and (y) the full amount of the annual bonus that would be payable to the Executive, assuming
all performance criteria (at the maximum level) on which such bonus is based were deemed to be
satisfied, in respect of services for the calendar year in which the date in question occurs.

8. CODE SECTION 4999 EXCISE TAX. Notwithstanding any provision of this Agreement to the
contrary, if any payments or benefits to which Executive becomes entitled, whether pursuant to the
terms of or by reason of this Agreement or any other plan, arrangement, agreement, policy or
program (including without limitation any restricted stock, stock option, stock appreciation right
or similar right, or the lapse or termination of any restriction on the vesting or exercisability
of any of the foregoing) with the Company, any successor to the Company or to all or a part of the
business or assets of the Company (whether direct or indirect, by purchase, merger, consolidation,
spin off, or otherwise and regardless of whether such payment is made by or on behalf of the
Company or such successor) or any person whose actions result in a change of control or any person
affiliated with the Company or such persons (in the aggregate, “Total Payments”), constitute
“parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as
amended (“Code”), and but for this Section 8, would be subject to the excise tax imposed by
Section 4999 of the Code, then Executive will be entitled to receive either (a) the full amount of
the Total Payments or (b) a portion of the Total Payments having a value equal to $1 less than
three (3) times such individual’s “base amount” (as such term is defined in Section 280G(b)(3)(A)
of the Code, the “Safe Harbor Cap”), whichever of (a) and (b), after taking into account applicable
federal, state, and local income and employment taxes and the excise tax imposed by Section 4999 of
the Code (the “Excise Tax”) or any successor provision of the Code or any similar state or local
tax, results in the receipt by the Executive on an after-tax basis, of the greatest portion of the
Total Payments.

 

9

 

All determinations required to be made under this Section 8 shall be made by the accountant or
tax counsel or other similar expert advisor selected by the Executive (such advisor, the “Tax
Advisor”), which shall, if requested, provide detailed supporting calculations both to the Company
and the Executive within fifteen (15) business days of the receipt of notice from the Company or
the Executive that there has been Total Payments, or such earlier time as is requested by the
Company or the Executive, and if requested, a written opinion. All fees, costs and expenses
(including, but not limited to, the costs of retaining experts) of the Tax Advisor shall be borne
by the Company. The determination by the Tax Advisor shall be binding upon the Company and the
Executive (except as provided below).

If there is a reduction pursuant to this Section 8 of the Total Payments to be delivered to
the Executive and to the extent that an ordering of the reduction other than by the Executive is
required by Code Section 409A or Section 280G of the Code or other tax requirements, the payment
reduction contemplated shall be made to the extent necessary in the following order: (i) the
acceleration of vesting of stock options and stock appreciation rights with an exercise price that
exceeds the then fair market value of the stock subject to the award, provided that such stock
options and stock appreciation rights are not permitted to be valued under Treasury Regulations §
1.280G-1 Q/A — 24(c); (ii) the payments and benefits under Sections 7(b)(1) and (8) (regarding
sums relating to Base Salary and Target Bonus and outplacement benefits); (iii) the payments and
benefits under Section 7(b)(5) (regarding amounts relating to certain retirement, savings, deferred
compensation and other arrangements); (iv) the payments and benefits under Sections 7(b)(2), (3)
and (4) (regarding health and dental insurance benefits, life insurance and short and long-term
disability insurance coverage); (v) any equity awards accelerated pursuant to Section 7(b)(7) or
otherwise valued at full value, provided that such equity awards are not permitted to be valued
under Treasury Regulations § 1.280G-1 Q/A — 24(c); (vi) the acceleration of vesting of stock
options with an exercise price that exceeds the then fair market value of the stock subject to the
award and other equity awards, provided that such stock options and other equity awards are
permitted to be valued under Treasury Regulations § 1.280G-1 Q/A — 24(c); and (vii) the
acceleration of vesting of all other stock options and equity awards on a basis resulting in the
highest amount retained by the Executive. For purposes of reducing the Payments to the Safe Harbor
Cap, only amounts payable under this Agreement (and no other Payments) shall be reduced. If the
reduction of the amounts payable hereunder would not result in a greater after-tax result to the
Executive, no amounts payable under this Agreement shall be reduced pursuant to this provision.

If it is established pursuant to a final determination of a court or an Internal Revenue
Service (the “IRS”) proceeding which has been finally and conclusively resolved, that the Total
Payments have been made to, or provided for the benefit of, the Executive by the Company which are
in excess of the limitations provided in this Section 8 (referred to hereinafter as an “Excess
Payment”), the Executive shall repay the Excess Payment to the Company on demand, together with
interest on the Excess Payment at the applicable federal rate (as defined in Section 1274(d) of the
Code) from the date of the Executive’s receipt of such Excess Payment until the date of such
repayment.

 

10

 

The Executive shall cooperate, to the extent the Executive’s expenses are reimbursed by the
Company, with any reasonable requests by the Company in connection with any contests or disputes
with the IRS in connection with the Excise Tax or the determination of
the Excess Payment. Notwithstanding the foregoing, in the event that amounts payable under
this Agreement were reduced in accordance with the provisions of this Section 8 and the present
value of any Payment is subsequently re-determined by the Tax Advisor within the context of
Treasury Regulation Section 1 280G-1 Q/A 33 that reduces the value of the Payment, the Company
shall promptly pay to Executive any amounts payable under this Agreement that were not previously
paid solely as a result of this Section 8, subject to the Safe Harbor Cap.

A payment or reimbursement of expenses described in this Section 8 shall be made promptly and
in no event later than December 31 of the year following the year in which such expenses were
incurred, any reimbursement of expenses incurred due to a tax audit or litigation shall be made no
later than the end of the calendar year immediately following the calendar year in which the taxes
that are the subject of the audit or litigation are remitted to the taxing authority, or, if no
taxes are to be remitted, the end of the calendar year following the calendar year in which the
audit or litigation is completed, and the amount of such expenses eligible for payment or
reimbursement in any year shall not affect the amount of such expenses eligible for payment or
reimbursement in any other year nor shall such right to payment or reimbursement be subject to
liquidation or exchange for another benefit.

9. TAX PAYMENT. For purposes of determining the amount of payments pursuant to Sections 5(a),
5(f), 10 and 16 and elsewhere in this Agreement, the Executive shall be deemed to pay federal
income taxes at the highest marginal rate of federal income taxation in the calendar year in which
the payment is to be made and state and local income taxes at the highest marginal rates of
taxation in the state and locality of the Executive’s residence or the Executive’s place of
business, whichever is higher, on the date the payment is to be made. Without limitation on any
other provision of this Agreement, all such payments involving the calculation of taxes shall be
made no later than two (2) days after the receipt by the Company of written advice from a
professional tax advisor selected by the Executive that taxes are payable. The expense incurred in
obtaining such advice shall be paid by the Company. Without limitation on any other provisions of
this Agreement, the Company shall indemnify Executive for all taxes with respect to the amounts for
which payments described in the first sentence of this Section are required to be made pursuant to
this Agreement and all other costs including interest and penalties with respect to the payment of
such taxes. To the extent any of the payments pursuant to this Section are treated as taxable to
the Executive, the Company shall pay Executive an additional amount such that the net amount
retained by the Executive after deduction or payment of all federal, state, local and other taxes
with respect to amounts pursuant to this Section shall be equal to the full amount of the payments
required by this Section.

10. DISPUTES. Any dispute or controversy arising under, out of, or in connection with this
Agreement shall, at the election and upon written demand of either party, be finally determined and
settled by binding arbitration in the City of Chicago, Illinois, in accordance with the Labor
Arbitration rules and procedures of the American Arbitration Association, and judgment upon the
award may be entered in any court having jurisdiction thereof. The Company shall pay all costs of
the arbitration and all reasonable attorneys’ and accountants’ fees of the Executive in connection
therewith, including any litigation to enforce any arbitration award. To the extent any of the
payments within this Section are treated as taxable to the Executive, the Company shall pay
Executive an additional amount such that the net amount retained by Executive after deduction or
payment of all federal, state, local and other taxes with respect to
amounts under this Section shall be equal to the full amount of the payments required by this
Section.

 

11

 

11. RESTRICTIVE COVENANTS.

(a) CONFIDENTIALITY.

(i) The Executive acknowledges that in the course of the Executive’s employment with
the Company the Executive has and will become familiar with trade secrets and other
confidential information concerning the Company and its subsidiaries and that the
Executive’s services will be of special, unique and extraordinary value to the Company and
its subsidiaries.

(ii) Executive acknowledges that it is the policy of the Company and its subsidiaries
to maintain as secret and confidential all valuable and unique information and techniques
acquired, developed or used by the Company and its subsidiaries relating to their business,
operations, actual or potential products, strategies, potential liabilities, employees,
tenants, proposed or perspective tenants and customers, business partners and customers,
(including without limitation information protected by the Company’s attorney/client, work
product, or tax advisor/audit privileges; tax matters and information; financial analysis
models; the Company’s strategic plans; negotiations with third parties; methods, policies,
processes, formulas, techniques, know-how and other knowledge; trade practices, trade
secrets, or financial matters; lists of customers or customers’ purchases; lists of
suppliers, manufacturers, representatives, or other distributors; lists of and information
about tenants; requirements for systems, programs, machines, or their equipment; information
regarding the Company’s bank accounts, credit agreement or financial projections
information; information regarding the Company’s directors or officers or their personal
affairs) which gives the Company and its subsidiaries a competitive advantage in the
businesses in which the Company and its subsidiaries are engaged (“Confidential
Information”). “Confidential Information” shall not include information that (A) is or
becomes generally available to the public other than as a result of a disclosure by
Executive in violation of this Agreement, (B) was available to Executive on a
non-confidential basis prior to the date hereof, or (C) is compelled to be disclosed by a
court or governmental agency, provided that prior written notice is given to the Company and
Executive cooperates with the Company in any efforts by the Company to limit the scope of
such obligation and/or to obtain confidential treatment of any material disclosed pursuant
to such obligation. Executive recognizes that all such Confidential Information is the sole
and exclusive property of the Company and its subsidiaries, and that disclosure of
Confidential Information would cause damage to the Company and its subsidiaries. Executive
shall not disclose, directly or indirectly, any Confidential Information obtained during her
employment with the Company, and will take all necessary precautions to prevent disclosure,
to any unauthorized individual or entity inside or outside the Company, and will not use the
Confidential Information or permit its use for the benefit of Executive or other third party
other than the Company. These obligations shall continue for so long as the Confidential
Information remains Confidential Information.

 

12

 

(b) NONCOMPETITION, NONSOLICITATION, NONINTERFERENCE. Executive shall not during the
Employment Term, and during the one-year period after the termination of Executive’s employment
with the Company for any reason (the “Restricted Period”), either directly or indirectly
(through another business or person) engage in or facilitate any of the following activities
anywhere in the United States:

(i) soliciting to hire, recruit or employ any person who is, or during the six-month
period preceding such activity was, employed by the Company or any subsidiary, or causing or
attempting to cause any third party to do any of the foregoing;

(ii) performing services as an employee, director, officer, consultant, independent
contractor or advisor; or investing in, whether in the form of equity or debt, owning any
interest or otherwise having an ownership or other interest or a connection to any
Prohibited Entity or performing services as an employee, director, officer, consultant,
independent contractor or advisor to any other company, entity or person if those services
relate directly to a business or businesses that directly and materially compete with the
Company anywhere in the United States. Nothing in this Section (ii) shall, however,
restrict Executive from (A) making an investment in and owning up to one-percent (1%) of the
common stock of any company whose stock is listed on a national exchange, provided that such
investment does not give Executive the right or ability to control or influence the policy
decisions of any direct competitor, or (B) except as provided in Section 11(c) below,
performing services as an employee, director, officer, consultant, independent contractor or
advisor in an operating company which provides healthcare services or goods other than
leasing or financing of real property (for example, a hospital or a nursing facility). For
purposes of this Agreement, a Prohibited Entity is any company, entity or person that
derives more than 20% of its consolidated gross revenues from a business or businesses that
directly and materially compete with the Company.

(c) OTHER PROHIBITED ACTIVITIES. Executive acknowledges that her position at the
Company provides her with access to highly sensitive information concerning the Company’s principal
lessee and its affiliates and leases to such lessee and its affiliates which are critical to the
Company’s ability to effectively function and to the properties to be purchased by the Company, and
that if Executive were to provide services for such principal lessee and/or its affiliates such
services would cause irreparable damages to the Company. Executive shall not during the Employment
Term and the Restricted Period, either directly or indirectly (through another business or person)
engage in or facilitate any of the following activities anywhere in the United States or in any
location outside the United States where the Company conducts or plans to conduct business:
performing services as an employee, director, officer, consultant, independent contractor or
advisor; or investing in, whether in the form of equity or debt, owning any interest or otherwise
having an ownership or other interest or a connection to Kindred Healthcare, Inc. or any of its
parent, sister, subsidiary or affiliated entities in any manner, including without limitation as an
owner, principal, partner, officer, director, stockholder, employee, consultant, contractor, agent,
broker, representative or otherwise (unless Executive becomes a stockholder in Kindred Healthcare
as part of a restructuring of Kindred Healthcare where the Company’s stockholders receive Kindred
Healthcare stock), provided, however that subsection (c) shall not preclude Executive from owning
any equity or debt interest in Kindred
Healthcare to which she became entitled by reason of her previous employment by Kindred
Healthcare.

 

13

 

(d) NON-DISPARAGEMENT.

(i) Executive agrees not to make, or cause to be made, any statement, observation or
opinion, or communicate any information (whether oral or written, directly or indirectly)
that (A) accuses or implies that the Company and/or any of its affiliates, together with
their respective present or former officers, directors, partners, stockholders, employees
and agents, and each of their predecessors, successors and assigns, engaged in any wrongful,
unlawful, unethical or improper conduct, whether relating to Executive’s employment (or
termination thereof), the business or operations of the Company, or otherwise; or (B)
disparages, impugns or in any way reflects adversely upon the business, good will, products,
business opportunities, competency, character, behavior or reputation of the Company and/or
any of its affiliates, together with their respective present or former officers, directors,
partners, stockholders, employees and agents, and each of their predecessors, successors and
assigns.

(ii) The Company agrees not to make, or cause to be made, any statement, observation or
opinion, or communicate any information (whether oral or written, directly or indirectly)
that (A) accuses or implies that Executive engaged in any wrongful, unlawful, unethical or
improper conduct, whether relating to Executive’s employment (or termination thereof), the
business or operations of the Company, or otherwise; or (B) disparages, impugns or in any
way reflects adversely upon the business, business opportunities, competency, character,
behavior or reputation of Executive.

(iii) Nothing herein shall be deemed to preclude Executive or the Company from
providing truthful testimony or information pursuant to subpoena, court or other similar
legal process.

(e) NEW EMPLOYER. Executive shall provide the terms and conditions of this Section 11
to any prospective new employer or new employer and shall permit the Company to contact any such
company, entity or individual to confirm Executive’s compliance with this Section 11 and shall
provide the Company with such information as it requests to allow such inquiry.

(f) REASONABLENESS OF RESTRICTIVE COVENANTS.

(i) Executive acknowledges that the covenants contained in this Section 11 are
reasonable in the scope of the activities restricted, the geographic area covered by the
restrictions, and the duration of the restrictions, and that such covenants are reasonably
necessary to protect the Company’s legitimate interests in its Confidential Information, its
reputation, and in its relationships with its employees, customers, and suppliers.

(ii) The Company has, and the Executive has had an opportunity to, consult with their
respective legal counsel and to be advised concerning the reasonableness and propriety of
such covenants. Executive acknowledges that her
observance of the covenants contained herein will not deprive Executive of the ability
to earn a livelihood or to support her dependents.

 

14

 

(g) RIGHT TO INJUNCTION. In recognition of the confidential nature of the
Confidential Information, and in recognition of the necessity of the limited restrictions imposed
by Section 11, Executive and the Company agree that it would be impossible to measure solely in
money the damages which the Company would suffer if Executive were to breach any of her obligations
hereunder. Executive acknowledges that any breach of any provision of this Agreement would
irreparably injure the Company. Accordingly, Executive agrees that if she breaches any of the
provisions of Section 11, the Company shall be entitled, in addition to any other remedies to which
the Company may be entitled under this Agreement or otherwise, to an injunction to be issued by a
court of competent jurisdiction, to restrain any breach, or threatened breach, of any provision of
Section 11, and Executive hereby waives any right to assert any claim or defense that the Company
has an adequate remedy at law for any such breach.

(h) ASSISTANCE. During the one-year period following a termination of Executive’s
employment with the Company, Executive shall from time to time provide the Company with such
reasonable assistance and cooperation as the Company may reasonably from time to time request in
connection with any financial and business issues, investigation, claim, dispute, judicial,
legislative, administrative or arbitral proceeding, or litigation arising out of matters within the
knowledge of Executive and related to her position as an employee of the Company at the times and
on the terms agreed to in good faith by Executive and the Company.

12. SUCCESSORS.

(a) This Agreement is personal to Executive and without the prior written consent of the
Company shall not be assignable by Executive otherwise than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by Executive’s legal
representatives.

(b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns. This Agreement shall not be terminated by the voluntary or involuntary
dissolution of the Company or by any merger or consolidation where the Company is not the surviving
corporation, or upon any transfer of all or substantially all of the Company’s stock or assets. In
the event of such merger, consolidation or transfer, the provisions of this Agreement shall be
binding upon and shall inure to the benefit of the surviving corporation or corporation to which
such stock or assets of the Company shall be transferred.

(c) The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company, or any business of the Company for which Executive’s services are principally performed,
to assume expressly, absolutely and unconditionally and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, “Company” shall mean the Company as
herein before defined and any successor to its business and/or assets
as aforesaid which assumes and agrees to perform this Agreement by operation of law, or
otherwise.

 

15

 

13. OTHER SEVERANCE BENEFITS. Executive hereby agrees that in consideration for and subject
to the receipt of the payments to be received under this Agreement, Executive waives any and all
rights to any payments or benefits under any other plans, programs, contracts or arrangements of
the Company or their respective affiliates that provide for severance payments or benefits upon a
termination of employment, except as provided in this Agreement.

14. PRESS RELEASE. The Company shall not issue or permit to be issued any press release or
other public announcement regarding the Executive or the terms of Executive’s employment (including
related to any termination of Executive’s employment for any reason) without Executive’s prior
approval, which shall not be unreasonably withheld.

15. INDEMNIFICATION AND INSURANCE. Beginning on the Effective Date and continuing thereafter,
including after the termination of Executive’s employment hereunder, the Company shall indemnify,
defend and hold the Executive harmless from and against any and all Expenses, liabilities, damages,
costs, judgments, penalties, fines and amounts paid in settlement, incurred by Executive in
connection with any Proceeding involving her by reason of her being or having been an officer,
director, employee or agent of the Company (or any affiliate of the Company) to the fullest extent
permitted by law, whether or not Executive is, or is threatened to be made, a party to any
threatened, pending, or completed Proceeding, and whether or not Executive is successful in such
Proceeding. In addition, upon receipt from Executive of (i) a written request for an advancement
of Expenses which Executive reasonably believes will be subject to indemnification hereunder and
(ii) a written undertaking by Executive to repay any such amounts if it shall ultimately be
determined that she is not entitled to indemnification under this Agreement or otherwise, the
Company shall advance such Expenses to Executive or pay such Expenses for Executive, all in advance
of the final disposition of any such matter. The provisions of the preceding two sentences shall
survive the termination of Executive’s employment hereunder for any reason whatsoever and the
termination of this Agreement. The rights of indemnification and to receive advancement of
Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which
Executive may at any time be entitled under applicable law, the Certificate of Incorporation, the
By-Laws of the Company, any other agreement, a vote of stockholders or a resolution of the Board,
or otherwise. For purposes hereof, “Expenses” shall include all reasonable fees and
expenses including, without limitation, reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, and disbursements and expenses of
the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or
defend, investigating, or being or preparing to be a witness in a Proceeding; and
“Proceeding” shall include (without limitation) any and all proceedings, including, without
limitation, actions, suits, arbitrations, alternative dispute resolution mechanisms,
investigations, administrative hearings and other proceedings, whether civil, criminal,
administrative or investigative, and whether or not by or in the right of the Company. Beginning
on the Effective Date and continuing thereafter, including after the termination of Executive’s
employment hereunder, Executive shall have coverage under a director’s and officer’s liability
insurance policy in amounts no less than, and on terms no less favorable than those, as provided to
officers of the Company as of the Effective Date and in
amounts no less than, and on terms no less favorable than those, as provided to the other
members of the Board and senior executive officers of the Company from time to time.

 

16

 

16. ATTORNEY FEES. The Company will pay, or reimburse Executive for, at Executive’s
discretion, all attorneys fees, costs and expenses incurred by Executive in connection with the
negotiation, execution and delivery of this Agreement. All reasonable costs and expenses
(including fees and disbursements of counsel) incurred by Executive in seeking to interpret this
Agreement or enforce rights pursuant to this Agreement shall be paid on behalf of or reimbursed to
Executive promptly by the Company, whether or not Executive is successful in asserting such rights;
provided, however, that no reimbursement shall be made of such expenses relating to any
unsuccessful assertion of rights if and to the extent that Executive’s assertion of such rights was
in bad faith. To the extent any of the payments within this Section are treated as taxable to the
Executive, the Company shall pay Executive an additional amount such that the net amount retained
by Executive after deduction or payment of all federal, state, local and other taxes with respect
to amounts under this subsection shall be equal to the full amount of the payments required by this
Section.

17. WITHHOLDING. All payments to be made to Executive hereunder will be subject to all
applicable required withholding of taxes.

18. NO MITIGATION. Executive shall have no duty to mitigate her damages by seeking other
employment or taking other action by way of mitigation of the amounts payable to the Executive
under this Agreement and the payments required hereunder shall not be reduced or offset by any
amounts, including compensation from other employment. Further, the Company’s obligations to make
any payments hereunder shall not be subject to or affected by any set off, counterclaims or
defenses which the Company may have against Executive or others.

19. NOTICES. Any notice required or permitted to be given under this Agreement shall be in
writing and shall be deemed to have been duly given and effective when delivered by personal or
overnight couriers, or registered mail, in each case with confirmation of receipt, prepaid and
addressed as follows:

If to Executive:

Debra A. Cafaro

166 Sheridan Road

Winnetka, Illinois 60093

With a courtesy copy to:

Michael Sirkin

Proskauer

Eleven Times Square

New York, NY 10036-8299

 

17

 

If to Company:

Ventas, Inc.

10350 Ormsby Park Place

Suite 300

Louisville, Kentucky 40223

Attn: General Counsel

Either party may change its specified address by giving notice in writing to the other in
accordance with the foregoing method.

20. WAIVER OF BREACH AND SEVERABILITY. The waiver by either party of a breach of any
provision of this Agreement by the other party shall not operate or be construed as a waiver of any
subsequent breach by either party. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision, which other
provision shall remain in full force and effect. In the event any provision of this Agreement is
found to be invalid or unenforceable, it may be severed from the Agreement and the remaining
provisions of the Agreement, including all make- whole provisions of this Agreement, shall continue
to be binding and effective.

21. ENTIRE AGREEMENT; AMENDMENT. This instrument contains the entire agreement of the parties
with respect to the subject matter hereof and supersedes all prior agreements (including the
Existing Employment Agreement), promises, covenants, arrangements, communications, representations
and warranties between them, whether written or oral, with respect to the subject matter hereof.
No provisions of this Agreement may be modified, waived or discharged unless such modification,
waiver or discharge is agreed to in writing signed by Executive and such officer of the Company
specifically designated by the Board.

22. COMPLIANCE WITH SECTION 409A OF THE INTERNAL REVENUE CODE. All payments pursuant to this
Agreement shall be subject to the provisions of this Section 22. Notwithstanding anything herein
to the contrary, this Agreement is intended to be interpreted and operated to the fullest extent
possible so that the payments and benefits under this Agreement either shall be exempt from the
requirements of Code Section 409A or shall comply with the requirements of such provision;
provided, however, that notwithstanding anything to the contrary in this Agreement in no event
shall the Company be liable to the Executive for or with respect to any taxes, penalties or
interest which may be imposed upon the Executive pursuant to Code Section 409A. This Section 22
shall not limit any tax payments (other than Code Section 409A tax payments) provided in this
Agreement.

 

18

 

(a) PAYMENTS TO SPECIFIED EMPLOYEES. To the extent that any payment or benefit
pursuant to this Agreement constitutes a “deferral of compensation” subject to Code Section 409A
(after taking into account to the maximum extent possible any applicable exemptions) (a “409A
Payment”) treated as payable upon Separation from Service, then, if on the date of the Executive’s
Separation from Service, the Executive is a Specified Employee, then to the extent required for
Executive not to incur additional taxes pursuant to Code Section 409A, no such 409A Payment shall
be made to the Executive earlier than the earlier of (i) six (6)
months after the Executive’s Separation from Service; or (ii) the date of her death. Should
this Section 22 otherwise result in the delay of in-kind benefits (for example, health benefits),
any such benefit shall be made available to the Executive by the Company during such delay period
at Executive’s expense. Should this Section 22 result in payments or benefits to Executive at a
later time than otherwise would have been made under this Agreement, on the first day any such
payments or benefits may be made without incurring additional tax pursuant to Code Section 409A
(the “409A Payment Date”), the Company shall make such payments and provide such benefits as
provided for in this Agreement, provided that any amounts that would have been payable earlier but
for the application of this Section 22, as well as reimbursement of the amount Executive paid for
benefits pursuant to the preceding sentence, shall be paid in lump-sum on the 409A Payment Date
along with accrued interest at the rate of interest published in the Wall Street Journal as the
“prime rate” (or equivalent) on the date that payments or benefits, as applicable, to Executive
should have been made under this Agreement. For purposes of this Section 22, the term “Specified
Employee” shall have the meaning set forth in Code Section 409A, as determined in accordance with
the methodology established by the Company. For purposes of determining whether a Separation from
Service has occurred for purposes of Code Section 409A, to the extent permissible under Code
Section 409A, subsidiaries and affiliates of the Company are those included by using a twenty
percent (20%) standard to define the controlled group under Code Section 1563(a) in lieu of the
fifty percent (50%) default rule. In addition, for purposes of determining whether a Separation
from Service has occurred for purposes of Code Section 409A, a Separation from Service is deemed to
include a reasonably anticipated permanent reduction in the level of services performed by the
Executive to less than fifty (50%) of the average level of services performed by the Executive
during the immediately preceding 12-month period.

(b) REIMBURSEMENTS. For purposes of complying with Code Section 409A and without
extending the payment timing otherwise provided in this Agreement, taxable reimbursements under
this Agreement, subject to the following sentence and to the extent required to comply with Code
Section 409A, will be made no later than the end of the calendar year following the calendar year
in which the expense was incurred. However, for purposes of complying with Code Section 409A and
without extending the payment timing otherwise provided in this Agreement, any tax gross-up may be
payable through the calendar year after the calendar year in which the Executive remits the taxes
rather than be limited to the end of the calendar year following the calendar year in which the
expense was incurred and reimbursement of expenses incurred due to a tax audit or litigation
addressing the existence or amount of a tax liability may be payable through the end of the
calendar year following the calendar year in which the taxes that are the subject of the audit or
litigation are remitted to the taxing authority or, where as a result of such audit or litigation
no taxes are remitted, the end of the calendar year following the calendar year in which the audit
is completed or there is a final and nonappealable settlement or other resolution of the
litigation. To the extent required to comply with Code Section 409A, any taxable reimbursements
and any in-kind benefits under this Agreement will be subject to the following: (a) payment of such
reimbursements or in-kind benefits during one calendar year will not affect the amount of such
reimbursement or in-kind benefits provided during any other calendar year (other than for medical
reimbursement arrangements as excepted under Treasury Regulations §1.409A-3(i)(1)(iv)(B) solely
because the arrangement provides for a limit on the amount of expenses that may be reimbursed under
such arrangement over some or all of the period the arrangement remains in effect); (b) such right
to reimbursement or in-kind
benefits is not subject to liquidation or exchange for another form of compensation to the
Executive; and (c) the right to reimbursements under this Agreement will be in effect for the
lesser of the time specified in this Agreement or ten years plus the lifetime of the Executive.
Any taxable reimbursements or in-kind benefits shall be treated as not subject to Code Section 409A
to the maximum extent provided by Treasury Regulations §1.409A-1(b)(9)(v) or otherwise under Code
Section 409A.

 

19

 

(c) RELEASE. To the extent that Executive is required to execute and deliver a
Release to receive a 409A Payment and this Agreement provides for such 409A Payment to be provided
prior to the 55th day following the Executive’s Separation from Service, such 409A Payment will be
provided upon the 55th day following Executive’s Separation from Service provided the Release in
the form mutually agreed upon between Executive and the Company or in the form set forth in Exhibit
B has been executed, delivered and effective prior to such time. To the extent a 409A Payment is
made at a later time than otherwise would have been made under this Agreement because of the
provisions of the preceding sentence of this Section 22(c), interest for the delay and the
opportunity for Executive to pay for benefits in the interim with subsequent reimbursement from the
Company shall be provided in a manner consistent with that set forth in Section 22(a). To the
extent that Executive is required to execute and deliver a Release to receive a 409A Payment and
this Agreement provides for such 409A Payment to be provided in accordance with Section 22(a), such
409A Payment will be provided as set forth in Section 22(a) provided the Release in the form
mutually agreed upon between Executive and the Company or in the form set forth in Exhibit B has
been executed, delivered and effective prior to such time. If a Release is required for a 409A
Payment and such Release is not executed, delivered and effective by the date six months after the
Executive’s Separation from Service if such 409A Payment is subject to the limitations set forth in
Section 22(a) or the 55th day following Executive’s Separation from Service if such 409A Payment is
not subject to the limitations set forth in Section 22(a), such 409A Payment shall not be provided
to the Executive to the extent that providing such 409A Payment would cause such 409A Payment to
fail to comply with Code Section 409A. To the extent that any payments or benefits under this
Agreement are intended to be exempt from Code Section 409A as a short-term deferral pursuant to
Treasury Regulations §1.409A-1(b)(4) or any successor thereto and require Executive to provide a
Release to the Company to obtain such payments or benefits, any Release required for such payment
or benefit must be provided in the form mutually agreed upon between Executive and the Company or
in the form set forth in Exhibit B no later than March 7th of the calendar year following the
calendar year of the Executive’s Separation from Service.

(d) NO ACCELERATION; SEPARATE PAYMENTS. No 409A Payment payable under this Agreement
shall be subject to acceleration or to any change in the specified time or method of payment,
except as otherwise provided under this Agreement and consistent with Code Section 409A. If under
this Agreement, a 409A Payment is to be paid in two or more installments, for purposes of Section
409A, each installment shall be treated as a separate payment.

(e) COOPERATION. If any compensation or benefits provided by this Agreement may
result in the application of Code Section 409A, the Company shall, in consultation with the
Executive, modify the Agreement in the least restrictive manner necessary in order to exclude such
compensation from the definition of “deferred of compensation” within
the meaning of such Code Section 409A or in order to comply with the provisions of Code
Section 409A and without any diminution in the value of the payments or benefits to the Executive.
This Section 22 is not intended to impose any restrictions on payments or benefits to Executive
other than those otherwise set forth in this Agreement or required for Executive not to incur
additional tax under Code Section 409A and shall be interpreted and operated accordingly. The
Company to the extent reasonably requested by Executive shall modify this Agreement to effectuate
the intention set forth in the preceding sentence.

 

20

 

23. RECOUPMENT. Executive acknowledges that she will be subject to recoupment policies
adopted by the Company pursuant to the requirements of Dodd-Frank Wall Street Reform and Consumer
Protection Act or other law or the listing requirements of any national securities exchange on
which the common stock of the Company is listed.

24. GOVERNING LAW. This Agreement shall be construed in accordance with and governed by the
laws of the State of Delaware.

25. HEADINGS. The headings in this Agreement are for convenience only and shall not be used
to interpret or construe its provisions.

26. COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	VENTAS, INC.

 	 
	 	By:  	/s/Jay M. Gellert
 	 
	 	 	Jay M. Gellert, Director 	 

	 	 	 	 	 
	 	                                             /s/ Debra A. Cafaro
 	 
	 	Executive 	 

 

21

 

Exhibit A

VENTAS, INC. 

RESTRICTED STOCK AGREEMENT

THIS RESTRICTED STOCK AGREEMENT (“Agreement”) is made and entered into as of the 22nd day of
March, 2011, by and between VENTAS, INC., a Delaware corporation (the “Company”), and Debra A.
Cafaro, an employee of the Company (“Employee”), pursuant to the Ventas, Inc. 2006 Incentive Plan
(the “Plan”).

AGREEMENT: 

The parties agree as follows:

1. Issuance of Common Stock. The Company shall cause to be issued to Employee one
hundred fifty-two thousand nine hundred thirty-four (152,934) shares of Common Stock (the
“Shares”). The certificates, if any, representing the Shares, together with a stock power duly
endorsed in blank by Employee, shall be deposited with the Company to be held by it until the
restrictions imposed upon the Shares by this Agreement have expired.

2. Vesting of Shares. If Employee has not forfeited any of the Shares, the
restriction on the Transfer (as defined herein) of the Shares shall expire with respect to
one-fifth of the Shares on March 22, 2012, shall expire with respect to an additional one-fifth of
the Shares on March 22, 2013, shall expire with respect to an additional one-fifth of the Shares on
March 22, 2014, shall expire with respect to an additional one-fifth of the Shares on March 22,
2015, and shall expire with respect to the balance of the Shares on March 22, 2016. Upon
expiration of the restriction against Transfer of any of the Shares pursuant to this Section 2, the
Shares shall vest. However, in the event of (A) the death or Disability of Employee or (B)
termination of Employee’s employment by the Company without Cause or by Employee with Good Reason
(as such terms are defined in Employee’s amended and restated employment agreement, dated as of
March 22, 2011 (the “Employment Agreement”)), the Shares shall automatically vest and all
restrictions on the Shares shall lapse. Notwithstanding the foregoing, all vested Shares shall
remain subject to recoupment in accordance with Section 5 of this Agreement, to the extent, if any,
that they are applicable to this Award.

3. Forfeiture of Shares. If Employee’s employment by the Company is terminated for
any reason other than (A) death or Disability of Employee or (B) termination by the Company without
Cause or by Employee with Good Reason (as such terms are defined in the Employment Agreement), all
Shares which have not vested in accordance with Section 2 of this Agreement shall be forfeited and
reconveyed to the Company by Employee without additional consideration, and Employee shall have no
further rights with respect thereto. Notwithstanding termination pursuant to this Section 3, all
vested Shares shall remain subject to recoupment in accordance with Section 5 of this Agreement.

 

A-1

 

4. Change in Control. Section 7.8 of the Plan shall not apply to the Shares and
there shall be no automatic vesting of Shares or lapse of restriction on Transfer with respect to
the Shares due solely to a Change in Control. Following a Change in Control, any unvested Shares
(or any equity or cash award granted to Employee in replacement or substitution of such
Shares) shall remain subject to the restriction on Transfer set forth herein and shall continue to
vest in accordance with Section 2 of this Agreement.

5. Recoupment of Awards. All Shares, including Shares that have vested in accordance
with Section 2 of this Agreement, shall be subject to the terms and conditions, if applicable, of
any recoupment policy adopted by the Company pursuant to the requirements of Dodd-Frank Wall Street
Reform and Consumer Protection Act or other law or the listing requirements of any national
securities exchange on which the common stock of the Company is listed.

6. Restriction on Transfer of Shares. Employee shall not Transfer any of the Shares
owned by Employee until such restriction on the Transfer of the Shares is removed pursuant to this
Agreement. For purposes of this Agreement, the term “Transfer” shall mean any sale, exchange,
assignment, gift, encumbrance, lien, transfer by bankruptcy or judicial order, transfer by
operation of law and all other types of transfers and dispositions, whether direct or indirect,
voluntary or involuntary.

7. Rights as Stockholder. Unless the Shares are forfeited, Employee shall be
considered a stockholder of the Company with respect to all such Shares that have not been
forfeited and shall have all rights appurtenant thereto, including the right to vote or consent to
all matters that may be presented to the stockholders and to receive all dividends and other
distributions paid on such Shares. If any dividends or distributions are paid in Common Stock,
such Common Stock shall be subject to the same restrictions as the Shares with respect to which it
was paid.

8. Restrictive Legend. Each certificate representing the Shares may bear the
following legend:

The sale or other transfer of the shares represented by this Certificate,
whether voluntary, involuntary or by operation of law, is subject to certain
restrictions on transfer (including conditions of forfeiture) as set forth
in the Ventas, Inc. 2006 Incentive Plan and in the related Restricted Stock
Agreement. A copy of the Plan and such Restricted Stock Agreement may be
obtained from the Secretary of Ventas, Inc.

When the Shares have become vested, Employee shall have the right to have the preceding legend
removed from the certificate representing such vested Shares.

9. Agreement Does Not Grant Employment Rights. The granting of Shares shall not be
construed as granting to Employee any right to employment by the Company. The right of the Company
to terminate Employee’s employment at any time, for any reason, with or without cause, is
specifically reserved.

 

A-2

 

10. Section 83(b) Election Under the Code and Tax Withholding. If Employee timely
elects, under Section 83(b) of the Code, to include the fair market value of the Shares on the date
hereof in Employee’s gross income for the current taxable year, Employee agrees to give prompt
written notice of such election to the Company. Employee hereby acknowledges that the Company will
be obligated to withhold taxes for amounts whenever includable in Employee’s
income (regardless of whether a Section 83(b) election is made) and hereby agrees to make
whatever arrangements are necessary to enable the Company to withhold as required by law, including
without limitation the right to deduct from payments of any kind otherwise due to Employee.
Employee shall have the right to elect to satisfy, in whole or in part, Employee’s tax withholding
obligations by having the Company withhold Shares.

11. Miscellaneous.

a. Incorporation of Plan. Except as specifically provided herein, this Agreement is
and shall be in all respects subject to the terms and conditions of the Plan, a copy of which
Employee acknowledges receiving prior to the execution hereof and the terms of which are
incorporated by reference.

b. Captions. The captions and section headings used herein are for convenience only,
shall not be deemed part of this Agreement and shall not in any way restrict or modify the context
or substance of any section or paragraph of this Agreement.

c. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware without regard to its conflict of laws rules.

d. Defined Terms. All capitalized terms not defined herein shall have the meanings
set forth in the Plan, unless a different meaning is plainly required by the context.

IN WITNESS WHEREOF, the parties have executed this Agreement on and as of the date first above
written.

	 	 	 	 	 
	 	VENTAS, INC.

 	 
	 	By:  	 	 
	 	 	Jay M. Gellert, Director 	 

	 	 	 	 	 
	 	
 	 
	 	Debra A. Cafaro 	 

 

A-3

 

Exhibit B

General Release 

This agreement, release and waiver (the “Agreement”), made as of the
 _____
day of
 _____,

 _____ 

(the “Effective Date”), is made by and between Ventas, Inc. (together with all successors
thereto, “Company”) and Debra A. Cafaro (“Executive”).

WHEREAS, the Executive and the Company have entered into an Amended and Restated Employment
Agreement dated the 22nd day of March, 2011 (“Employment Agreement”);

NOW THEREFORE, in consideration for receiving benefits and severance under the Employment
Agreement and in consideration of the representations, covenants and promises set forth in this
Agreement, the parties agree as follows:

1. Release. Except with respect to the Company’s obligations under the Employment
Agreement, the Executive, and Executive’s heirs, executors, assigns, agents, legal representatives,
and personal representatives, hereby releases, acquits and forever discharges the Company, its
agents, subsidiaries, affiliates, and their respective officers, directors, agents, servants,
employees, attorneys, shareholders, successors, assigns and affiliates, of and from any and all
claims, liabilities, demands, causes of action, costs, expenses, attorneys fees, damages,
indemnities and obligations of every kind and nature, in law, equity, or otherwise, known and
unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or in any way related
to agreements, events, acts or conduct at any time prior to the day prior to execution of this
Agreement, including but not limited to any and all such claims and demands directly or indirectly
arising out of or in any way connected with the Executive’s employment with the Company; the
Executive’s termination of employment with the Company; claims or demands related to salary,
bonuses, commissions, stock, stock options, or any other ownership interests in the Company,
vacation pay, fringe benefits, expense reimbursements, sabbatical benefits, severance benefits, or
any other form of compensation or equity; claims pursuant to any federal, state, local law,
statute, ordinance or cause of action including, but not limited to, the federal Civil Rights Act
of 1964, as amended; the federal Age Discrimination in Employment Act of 1967, as amended; the
federal Americans with Disabilities Act of 1990; tort law; contract law; wrongful discharge;
discrimination; fraud; defamation; harassment; emotional distress; or breach of the implied
covenant of good faith and fair dealing. This Release does not apply to the payment of any
benefits to which the Executive may be entitled under a Company sponsored tax qualified retirement
or savings plan, nor to any rights of the Executive to indemnification under the Articles of
Incorporation or by-laws of the Company or other agreement between Executive and the Company, nor
to any rights of the Executive under any directors’ and officers’ liability insurance policy
maintained by the Company.

2. No Inducement. Executive agrees that no promise or inducement to enter into this
Agreement has been offered or made except as set forth in this Agreement, that the Executive is
entering into this Agreement without any threat or coercion and without reliance or any statement
or representation made on behalf of the Company or by any person employed by or representing the
Company, except for the written provisions and promises contained in this Agreement.

 

B-1

 

3. Damages. The parties agree that damages incurred as a result of a breach of this
Agreement will be difficult to measure. It is, therefore, further agreed that, in addition to any
other remedies, equitable relief will be available in the case of a breach of this Agreement. It
is also agreed that, in the event Executive files a claim against the Company with respect to a
claim released by Executive herein (other than a proceeding before the EEOC), the Company may
withhold, retain, or require reimbursement of all or any portion of the benefits and severance
payments under the Severance Agreement until such claim is withdrawn by Executive.

4. Advice of Counsel; Time to Consider; Revocation. Executive acknowledges the
following:

	 	(a)	 	Executive has read this Agreement, and understands its legal and binding
effect. Executive is acting voluntarily and of Executive’s own free will in executing
this Agreement.
	 
	 	(b)	 	Executive has been advised to seek and has had the opportunity to seek legal
counsel in connection with this Agreement.
	 
	 	(c)	 	Executive was given at least 21 days to consider the terms of this Agreement
before signing it.

Executive understands that, if Executive signs the Agreement, Executive may revoke it within seven
days after signing it. Executive understands that this Agreement will not be effective until after
the seven-day period has expired; provided, however, that if Executive shall revoke this Agreement,
Executive shall be obligated to return to the Company all payments made to Executive pursuant to
the Employment Agreement that were contingent upon the execution and delivery of this Agreement.

5. Severability. If all or any part of this Agreement is declared by any court or
governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not
invalidate any other portion of this Agreement. Any section or a part of a section declared to be
unlawful or invalid shall, if possible, be construed in a manner which will give effect to the
terms of the section to the fullest extent possible while remaining lawful and valid.

6. Amendment. This Agreement shall not be altered, amended, or modified except by
written instrument executed by the Company and the Executive. A waiver of any portion of this
Agreement shall not be deemed a waiver of any other portion of this Agreement.

7. Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed to be an original, but all of which together will constitute one and the same
instrument.

8. Headings. The headings of this Agreement are not part of the provisions hereof and
shall not have any force or effect.

9. Applicable Law. The provisions of this Agreement shall be interpreted and
construed in accordance with the laws of Delaware without regard to its choice of law principles.

 

B-2

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates specified below.

	 	 	 	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	DATE:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	VENTAS, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	TITLE:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	DATE:	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

B-3

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