Document:

exv10w19

 

EXHIBIT 10.19

COMMERCIAL GUARANTY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Call / Coll	 	 	 	Officer	 	 
	Principal	 	Loan Date	 	Maturity	 	Loan No	 	4A / 100	 	Account	 	TMF	 	Initials
	 
	 
	References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.
	Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Borrower:

	 	Wireless Ronin Technologies, Inc.

14700 Martin Dr.

Eden Prairie, MN 55344
	 	Lender:
	 	Signature Bank

9800 Bren Road East Ste 200

Minnetonka, MN 55343
	 
	 	 	 	 	 	 
	Guarantor:

	 	Michael J. Hopkins

19549 Jersey Avenue

Lakeville, MN 55044	 	 	 	 

 

CONTINUING GUARANTEE OF PAYMENT AND PERFORMANCE. For good and valuable consideration,
Guarantor absolutely and unconditionally guarantees full and punctual payment and satisfaction of
the Indebtedness of Borrower to Lender, and the performance and discharge of all Borrower’s
obligations under the Note and the Related Documents. This is a guaranty of payment and
performance and not of collection, so Lender can enforce this Guaranty against Guarantor even when
Lender has not exhausted Lender’s remedies against anyone else obligated to pay the Indebtedness or
against any collateral securing the Indebtedness, this Guaranty or any other guaranty of the
Indebtedness. Guarantor will make any payments to Lender or its order, on demand, in legal tender
of the United States of America, in same-day funds, without set-off or deduction or counterclaim,
and will otherwise perform Borrower’s obligations under the Note and Related Documents. Under this
Guaranty, Guarantor’s liability is unlimited and Guarantor’s obligations are continuing.

INDEBTEDNESS. The word “Indebtedness” as used in this Guaranty means all of the principal amount
outstanding from time to time and at any one or more times, accrued unpaid interest thereon and all
collection costs and legal expenses related thereto permitted by law, reasonable attorneys’ fees,
arising from any and all debts, liabilities and obligations of every nature or form, now existing
or hereafter arising or acquired, that Borrower individually or collectively or interchangeably
with others, owes or will owe Lender. “Indebtedness” includes, without limitation, loans,
advances, debts, overdraft indebtedness, credit card indebtedness, lease obligations, other
obligations, and liabilities of Borrower, and any present or future judgments against Borrower,
future advances, loans or transactions that renew, extend, modify, refinance, consolidate or
substitute these debts, liabilities and obligations whether: voluntarily or involuntarily incurred;
due or to become due by their terms or acceleration; absolute or contingent; liquidated or
unliquidated; determined or undetermined; direct or indirect; primary or secondary in nature or
arising from a guaranty or surety; secured or unsecured; joint or several or joint and several;
evidenced by a negotiable or non-negotiable instrument or writing; originated by Lender or another
or others; barred or unenforceable against Borrower for any reason whatsoever; for any transactions
that may be voidable for any reason (such as infancy, insanity, ultra vires or otherwise); and
originated then reduced or extinguished and then afterwards increased or reinstated.

If Lender presently holds one or more guaranties, or hereafter receives additional guaranties from
Guarantor, Lender’s rights under all guaranties shall be cumulative. This Guaranty shall not
(unless specifically provided below to the contrary) affect or invalidate any such other
guaranties. Guarantor’s

 

 

COMMERCIAL GUARANTY

					
	Loan No: 200161603
	 	(Continued)
	 	Page 2

 

liability will be Guarantor’s aggregate liability under the terms of this Guaranty and any
such other unterminated guaranties.

CONTINUING GUARANTY. THIS IS A “CONTINUING GUARANTY” UNDER WHICH GUARANTOR AGREES TO GUARANTEE THE
FULL AND PUNCTUAL PAYMENT, PERFORMANCE AND SATISFACTION OF THE INDEBTEDNESS OF: BORROWER TO LENDER,
NOW EXISTING OR HEREAFTER ARISING OR ACQUIRED, ON AN OPEN AND CONTINUING BASIS. ACCORDINGLY, ANY
PAYMENTS MADE ON THE INDEBTEDNESS WILL NOT DISCHARGE OR DIMINISH GUARANTOR’S OBLIGATIONS AND
LIABILITY UNDER THIS GUARANTY FOR ANY REMAINING AND SUCCEEDING INDEBTEDNESS EVEN WHEN ALL OR PART
OF THE OUTSTANDING INDEBTEDNESS MAY BE A ZERO BALANCE FROM TIME TO TIME.

DURATION OF GUARANTY. This Guaranty will take effect when received by Lender without the necessity
of any acceptance by Lender, or any notice to Guarantor or to Borrower, and will continue in full
force until all the Indebtedness incurred or contracted before receipt by Lender of any notice of
revocation shall have been fully and finally paid and satisfied and all of Guarantor’s other
obligations under this Guaranty shall have been performed in full. If Guarantor elects to revoke
this Guaranty, Guarantor may only do so in writing. Guarantor’s written notice of revocation must
be mailed to Lender, by certified mail, at Lender’s address listed above or such other place as
Lender may designate in writing. Written revocation of this Guaranty will apply only to advances
or new Indebtedness created after actual receipt by Lender of Guarantor’s written revocation. For
this purpose and without limitation, the term “new Indebtedness” does not include the Indebtedness
which at the time of notice of revocation is contingent, unliquidated, undetermined or not due and
which later becomes absolute, liquidated, determined or due, This Guaranty will continue to bind
Guarantor for all the Indebtedness incurred by Borrower or committed by Lender prior to receipt of
Guarantor’s written notice of revocation, including any extensions, renewals, substitutions or
modifications of the Indebtedness. All renewals, extensions, substitutions, and modifications of
the Indebtedness granted after Guarantor’s revocation, are contemplated under this Guaranty and,
specifically will not be considered to be new Indebtedness. This Guaranty shall bind Guarantor’s
estate as to the Indebtedness created both before and after Guarantor’s death or incapacity,
regardless of Lender’s actual notice of Guarantor’s death. Subject to the foregoing, Guarantor’s
executor or administrator or other legal representative may terminate this Guaranty in the same
manner in which Guarantor might have terminated it and with the same effect. Release of any other
guarantor or termination of any other guaranty of the Indebtedness shall not affect the liability
of Guarantor under this Guaranty. A revocation Lender receives from any one or more Guarantors
shall not affect the liability of any remaining Guarantors under this Guaranty. It is anticipated
that fluctuations may occur in the aggregate amount of the Indebtedness covered by this Guaranty,
and Guarantor specifically acknowledges and agrees that reductions in the amount of the
Indebtedness, even to zero dollars ($0.00), prior to Guarantor’s written revocation of this
Guaranty shall not constitute a termination of this Guaranty. This Guaranty is binding upon
Guarantor and Guarantor’s heirs, successors and assigns so long as any of the Indebtedness remains
unpaid and even though the Indebtedness may from time to time be zero dollars ($0.00).

GUARANTOR’S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any
revocation hereof, without notice or demand and without lessening Guarantor’s liability under this
Guaranty, from time to time: (A) prior to revocation as set forth above, to make one or more
additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower,
or otherwise to extend additional credit to Borrower; (B) to alter, compromise, renew, extend,
accelerate, or otherwise change one or more times the time for payment or other terms of the
Indebtedness or any part of the Indebtedness, including increases and decreases of the rate of
interest on the Indebtedness; extensions may be repeated and may be for longer than the original
loan term; (C) to take and hold

 

 

COMMERCIAL GUARANTY

					
	Loan No: 200161603
	 	(Continued)
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security for the payment of this Guaranty or the Indebtedness, and exchange, enforce, waive,
subordinate, fail or decide not to perfect, and release any such security, with or without the
substitution of new collateral; (D) to release, substitute, agree not to sue, or deal with any one
or more of Borrower’s sureties, endorsers, or other guarantors on any terms or in any manner Lender
may choose; (E) to determine how, when and what application of payments and credits shall be made
on the Indebtedness; (F) to apply such security and direct the order or manner of sale thereof,
including without limitation, any nonjudicial sale permitted by the terms of the controlling
security agreement or deed of trust, as Lender in its discretion may determine; (G) to sell,
transfer, assign or grant participations in all or any part of the Indebtedness; and (H) to assign
or transfer this Guaranty in whole or in part.

GUARANTOR’S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A)
no representations or agreements of any kind have been made to Guarantor which would limit or
qualify in any way the terms of this Guaranty; (B) this Guaranty is executed at Borrower’s request
and not at the request of Lender; (C) Guarantor has full power, right and authority to enter into
this Guaranty; (D) the provisions of this Guaranty do not conflict with or result in a default
under any agreement or other instrument binding upon Guarantor and do not result in a violation of
any law, regulation, court decree or order applicable to Guarantor; (E) Guarantor has not and will
not, without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate,
transfer, or otherwise dispose of all or substantially all of Guarantor’s assets, or any interest
therein; (F) upon Lender’s request, Guarantor will provide to Lender financial and credit
information in form acceptable to Lender, and all such financial information which currently has
been, and all future financial information which will be provided to Lender is and will be true and
correct in all material respects and fairly present Guarantor’s financial condition as of the dates
the financial information is provided; (G) no material adverse change has occurred in Guarantor’s
financial condition since the date of the most recent financial statements provided to Lender and
no event has occurred which may materially adversely affect Guarantor’s financial condition; (H) no
litigation, claim, investigation, administrative proceeding or similar action (including those for
unpaid taxes) against Guarantor is pending or threatened; (I) Lender has made no representation to
Guarantor as to the creditworthiness of Borrower; and (J) Guarantor has established adequate means
of obtaining from Borrower on a continuing basis information regarding Borrower’s financial
condition. Guarantor agrees to keep adequately informed from such means of any facts, events, or
circumstances which might in any way affect Guarantor’s risks under this Guaranty, and Guarantor
further agrees that, absent a request for information, Lender shall have no obligation to disclose
to Guarantor any information or documents acquired by Lender in the course of its relationship with
Borrower.

GUARANTOR’S FINANCIAL STATEMENTS. Guarantor agrees to furnish Lender with the following:

Annual Statements. As soon as available, but in no event later than ninety (90) days after
the end of each fiscal year, Guarantor’s balance sheet and income statement for the year
ended, prepared by Guarantor.

Tax Returns. As soon as available, but in no event later than thirty (30) days after the
applicable filing date for the tax reporting period ended, Federal and other governmental
tax returns, prepared by Guarantor.

All financial reports required to be provided under this Guaranty shall be prepared in accordance
with GAAP, applied on a consistent basis, and certified by Guarantor as being true and correct.

GUARANTOR’S WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require
Lender (A) to continue lending money or to extend other credit to Borrower; (B) to make any

 

 

COMMERCIAL GUARANTY

					
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presentment, protest, demand, or notice of any kind, including notice of any nonpayment of the
Indebtedness or of any nonpayment related to any collateral, or notice of any action or nonaction
on the part of Borrower, Lender, any surety, endorser, or other guarantor in connection with the
Indebtedness or in connection with the creation of new or additional loans or obligations; (C) to
resort for payment or to proceed directly or at once against any person, including Borrower or any
other guarantor; (D) to proceed directly against or exhaust any collateral held by Lender from
Borrower, any other guarantor, or any other person; (E) to give notice of the terms, time, and
place of any public or private sale of personal property security held by Lender from Borrower or
to comply with any other applicable provisions of the Uniform Commercial Code; (F) to pursue any
other remedy within Lender’s power; or (G) to commit any act or omission of any kind, or at any
time, with respect to any matter whatsoever.

Guarantor also waives any and all rights or defenses based on suretyship or impairment of
collateral including, but not limited to, any rights or defenses arising by reason of (A) any “one
action” or “anti-deficiency” law or any other law which may prevent Lender from bringing any
action, including a claim for deficiency, against Guarantor, before or after Lender’s commencement
or completion of any foreclosure action, either judicially or by exercise of a power of sale; (B)
any election of remedies by Lender which destroys or otherwise adversely affects Guarantor’s
subrogation rights or Guarantor’s rights to proceed against Borrower for reimbursement, including
without limitation, any loss of rights Guarantor may suffer by reason of any law limiting,
qualifying, or discharging the Indebtedness; (C) any disability or other defense of Borrower, of
any other guarantor, or of any other person, or by reason of the cessation of Borrower’s liability
from any cause whatsoever, other than payment in full in legal tender, of the Indebtedness; (D) any
right to claim discharge of the Indebtedness on the basis of unjustified impairment of any
collateral for the Indebtedness; (E) any statute of limitations, if at any time any action or suit
brought by Lender against Guarantor is commenced, there is outstanding Indebtedness which is not
barred by any applicable statute of limitations; or (F) any defenses given to guarantors at law or
in equity other than actual payment and performance of the Indebtedness. If payment is made by
Borrower, whether voluntarily or otherwise, or by any third party, on the Indebtedness and
thereafter Lender is forced to remit the amount of that payment to Borrower’s trustee in bankruptcy
or to any similar person under any federal or state bankruptcy law or law for the relief of
debtors, the Indebtedness shall be considered unpaid for the purpose of the enforcement of this
Guaranty.

Guarantor further waives and agrees not to assert or claim at any time any deductions to the amount
guaranteed under this Guaranty for any claim of setoff, counterclaim, counter demand, recoupment or
similar right, whether such claim, demand or right may be asserted by the Borrower, the Guarantor,
or both.

GUARANTOR’S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the
waivers set forth above is made with Guarantor’s full knowledge of its significance and
consequences and that, under the circumstances, the waivers are reasonable and not contrary to
public policy or law. If any such waiver is determined to be contrary to any applicable law or
public policy, such waiver shall be effective only to the extent permitted by law or public policy.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in
all Guarantor’s accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Guarantor holds jointly with someone else and all accounts Guarantor may open
in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for
which setoff would be prohibited by law. Guarantor authorizes Lender, to the extent permitted by
applicable law, to hold these funds if there is a default, and Lender may apply the funds in these
accounts to pay what Guarantor owes under the terms of this Guaranty.

 

 

COMMERCIAL GUARANTY

					
	Loan No: 200161603
	 	(Continued)
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SUBORDINATION OF BORROWER’S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness,
whether now existing or hereafter created, shall be superior to any claim that Guarantor may now
have or hereafter acquire against Borrower, whether or not Borrower becomes insolvent. Guarantor
hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account
whatsoever, to any claim that Lender may now or hereafter have against Borrower. In the event of
insolvency and consequent liquidation of the assets of Borrower, through bankruptcy, by an
assignment for the benefit of creditors, by voluntary liquidation, or otherwise, the assets of
Borrower applicable to the payment of the claims of both Lender and Guarantor shall be paid to
Lender and shall be first applied by Lender to the Indebtedness. Guarantor does hereby assign to
Lender all claims which it may have or acquire against Borrower or against any assignee or trustee
in bankruptcy of Borrower; provided however, that such assignment shall be effective only for the
purpose of assuring to Lender full payment in legal tender of the Indebtedness. If Lender so
requests, any notes or credit agreements now or hereafter evidencing any debts or obligations of
Borrower to Guarantor shall be marked with a legend that the same are subject to this Guaranty and
shall be delivered to Lender. Guarantor agrees, and Lender is hereby authorized, in the name of
Guarantor, from time to time to file financing statements and continuation statements and to
execute documents and to take such other actions as Lender deems necessary or appropriate to
perfect, preserve and enforce its rights under this Guaranty.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty:

Amendments. This Guaranty, together with any Related Documents, constitutes the entire
understanding and agreement of the parties as to the matters set forth in this Guaranty. No
alteration of or amendment to this Guaranty shall be effective unless given in writing and
signed by the party or parties sought to be charged or bound by the alteration or amendment.

Attorneys’ Fees; Expenses. Guarantor agrees to pay upon demand all of Lender’s costs and
expenses, including Lender’s reasonable attorneys’ fees and Lender’s legal expenses,
incurred in connection with the enforcement of this Guaranty. Lender may hire or pay
someone else to help enforce this Guaranty, and Guarantor shall pay the costs and expenses
of such enforcement. Costs and expenses include Lender’s reasonable attorneys’ fees and
legal expenses whether or not there is a lawsuit, including reasonable attorneys’ fees and
legal expenses for bankruptcy proceedings (including efforts to modify or vacate any
automatic stay or injunction), appeals, and any anticipated post-judgment collection
services. Guarantor also shall pay all court costs and such additional fees as may be
directed by the court.

Caption Headings. Caption headings in this Guaranty are for convenience purposes only and
are not to be used to interpret or define the provisions of this Guaranty.

Governing Law. This Guaranty will be governed by federal law applicable to Lender and, to
the extent not preempted by federal law, the laws of the State of Minnesota without regard
to its conflicts of law provisions. This Guaranty has been accepted by Lender in the State
of Minnesota.

Choice of Venue. If there is a lawsuit, Guarantor agrees upon Lender’s request to submit to
the jurisdiction of the courts of Hennepin County, State of Minnesota.

Integration. Guarantor further agrees that Guarantor has read and fully understands the
terms of this Guaranty; Guarantor has had the opportunity to be advised by Guarantor’s
attorney with respect to this Guaranty; the Guaranty fully reflects Guarantor’s intentions
and parol evidence is not required to interpret the terms of this Guaranty. Guarantor
hereby indemnifies and holds

 

 

COMMERCIAL GUARANTY

					
	Loan No: 200161603
	 	(Continued)
	 	Page 6

 

Lender harmless from all losses, claims, damages, and costs (including Lender’s
attorneys’ fees) suffered or incurred by Lender as a result of any breach by Guarantor of
the warranties, representations and agreements of this paragraph.

Interpretation. In all cases where there is more than one Borrower or Guarantor, then all
words used in this Guaranty in the singular shall be deemed to have been used in the plural
where the context and construction so require; and where there is more than one Borrower
named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the
words “Borrower” and “Guarantor” respectively shall mean all and any one or more of them.
The words “Guarantor,” “Borrower,” and “Lender” include the heirs, successors, assigns, and
transferees of each of them. If a court finds that any provision of this Guaranty is not
valid or should not be enforced, that fact by itself will not mean that the rest of this
Guaranty will not be valid or enforced. Therefore, a court will enforce the rest of the
provisions of this Guaranty even if a provision of this Guaranty may be found to be invalid
or unenforceable. If any one or more of Borrower or Guarantor are corporations,
partnerships, limited liability companies, or similar entities, it is not necessary for
Lender to inquire into the powers of Borrower or Guarantor or of the officers, directors,
partners, managers, or other agents acting or purporting to act on their behalf, and any
Indebtedness made or created in reliance upon the professed exercise of such powers shall be
guaranteed under this Guaranty.

Notices. Any notice required to be given under this Guaranty shall be given in writing,
and, except for revocation notices by Guarantor, shall be effective when actually delivered,
when actually received by telefacsimile (unless otherwise required by law), when deposited with a
nationally recognized overnight courier, or, if mailed, when deposited in the United States
mail, as first class, certified or registered mail postage prepaid, directed to the
addresses shown near the beginning of this Guaranty. All revocation notices by Guarantor
shall be in writing and shall be effective upon delivery to Lender as provided in the
section of this Guaranty entitled “DURATION OF GUARANTY.” Any party may change its address
for notices under this Guaranty by giving formal written notice to the other parties,
specifying that the purpose of the notice is to change the party’s address. For notice
purposes, Guarantor agrees to keep Lender informed at all times of Guarantor’s current
address. Unless otherwise provided or required by law, if there is more than one Guarantor,
any notice given by Lender to any Guarantor is deemed to be notice given to all Guarantors.

No Waiver by Lender. Lender shall not be deemed to have waived any rights under this
Guaranty unless such waiver is given in writing and signed by Lender. No delay or omission
on the part of Lender in exercising any right shall operate as a waiver of such right or any
other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or
constitute a waiver of Lender’s right otherwise to demand strict compliance with that
provision or any other provision of this Guaranty. No prior waiver by Lender, nor any
course of dealing between Lender and Guarantor, shall constitute a waiver of any of Lender’s
rights or of any of Guarantor’s obligations as to any future transactions. Whenever the
consent of Lender is required under this Guaranty, the granting of such consent by Lender in
any instance shall not constitute continuing consent to subsequent instances where such
consent is required and in all cases such consent may be granted or withheld in the sole
discretion of Lender.

Successors and Assigns. Subject to any limitations stated in this Guaranty on transfer of
Guarantor’s interest, this Guaranty shall be binding upon and inure to the benefit of the
parties, their successors and assigns.

 

 

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	Loan No: 200161603
	 	(Continued)
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Waive Jury. Lender and Guarantor hereby waive the right to any jury trial in any
action, proceeding, or counterclaim brought by either Lender or Borrower against the other.

DEFINITIONS. The following capitalized words and terms shall have the following meanings when used
in this Guaranty. Unless specifically stated to the contrary, all references to dollar amounts
shall mean amounts in lawful money of the United States of America. Words and terms used in the
singular shall include the plural, and the plural shall include the singular, as the context may
require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed
to such terms in the Uniform Commercial Code:

Borrower. The word “Borrower” means Wireless Ronin Technologies, Inc. and includes all
co-signers and co-makers signing the Note and all their successors and assigns.

GAAP. The word “GAAP” means generally accepted accounting principles.

Guarantor. The word “Guarantor” means everyone signing this Guaranty, including without
limitation Michael J. Hopkins, and in each case, any signer’s successors and assigns.

Guaranty. The word “Guaranty” means this guaranty from Guarantor to Lender.

Indebtedness. The word “Indebtedness” means Borrower’s Indebtedness to Lender as more
particularly described in this Guaranty.

Lender. The word “Lender” means Signature Bank, its successors and assigns.

Note. The word “Note” means and includes without limitation all of Borrower’s promissory
notes and/or credit agreements evidencing Borrower’s loan obligations in favor of Lender,
together with all renewals of, extensions of, modifications of, refinancings of,
consolidations of and substitutions for promissory notes or credit agreements.

Related Documents. The words “Related Documents” mean all promissory notes, credit
agreements, loan agreements, environmental agreements, guaranties, security agreements,
mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments,
agreements and documents, whether now or hereafter existing, executed in connection with the
Indebtedness.

EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES
TO ITS TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON
GUARANTOR’S EXECUTION AND DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE
UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED “DURATION OF GUARANTY”. NO FORMAL
ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED DECEMBER
30, 2005.

GUARANTOR:

X   /s/
Michael J.
Hopkins                    

Michael J. Hopkinsexv10w22

 

EXHIBIT 10.22

LEASE

THIS INDENTURE of lease, entered into this 18th day of April, 2006, by and between Dennis P. Dirlam
(“Landlord”) and Wireless Ronin Technologies, Inc. (“Tenant”).

DEFINITIONS

“Property” — That certain real property located in the City of Eden Prairie, County of Hennepin
State of Minnesota, and legally described on Exhibit A attached hereto and made a part hereof,
including all buildings and site improvements located thereon.

“Building” — That certain office/warehouse building containing approximately 29,700 square feet
located upon the Property and commonly described as Dirlam Warehouse.

“Demised Premises” — That certain portion of the Building located at 14793 Martin Drive, Eden
Prairie, Minnesota, consisting of approximately 2,160 square feet (0 square feet office and 2,160
square feet of warehouse space), as measured from the outside walls of the Demised Premises to the
center of the demising wall, as shown on the floor plan attached hereto as Exhibit B and made a
part hereof. The Demised Premises include the non-exclusive right of access to common areas, as
hereinafter defined, and all licenses and easements appurtenant to the Demised Premises.

“Common Areas” — The term “common area” means the entire areas available for the non-exclusive use
by Tenant and other Tenants in the Building, including, but not limited to, corridors, lavatories,
driveways, truck docks, parking lots and landscaped areas. Subject to reasonable rules and
regulations promulgated by Landlord, the common areas are hereby made available to Tenant and its
employees, agents, customers, and invitees for reasonable use in common with other Tenants, their
employees, agents, customers and invitees.

TERM

	1.	 	For and in consideration of the rents, additional rents, terms, provisions and covenants
herein contained, Landlord hereby lets, leases and demises to Tenant the Demised Premises for
a term commencing on the earlier of (i) the 19th day of April, 2006 or (ii) the
date on which Tenant opens the Demised Premises for business (the “Commencement Date”) and
expiring the 30th day of September, 2007 (the “Expiration Date”), unless sooner
terminated as hereinafter provided. After lease expires, Tenant shall be able to extend the
lease from month to month, cancelable by either party with thirty days written notice, and
have a right of first refusal on any similar vacant warehouse space.

BASE RENT

	2.	 	Tenant shall to pay to Landlord base rent for the Demised Premises (“Base Rent”), exclusive
of any other charge provided for in this Lease to be paid by Tenant, as set forth below. Base
Rent shall be payable in equal monthly installments, in advance, commencing on the first full
month of the term of this Lease, and continuing on the first

 

 

	 	 	day of each subsequent month during the term hereof. In the event the term hereof commences
on a day other than the first day of a month, Base Rent payable during such first month
shall be adjusted on a pro rata basis and shall be paid contemporaneously with the execution
of this lease. Base Rent shall be paid without setoff, deduction, demand or counterclaim of
any nature whatsoever, in advance on the first day of each and every calendar month during
the term hereof.

	 	 	 	 	 
	 	 	Monthly GROSS	 
	Dates
	 	Rent	 
	4/19/06 to 4/30/06
	 	$	540.00	 
	05/01/06 to 09/30/07
	 	$	1,350.00	 

	 	 	All Rent and other sums payable hereunder by Tenant which are not paid when due shall bear
interest from the date due to the date paid at a rate of three and one half percent (3.5%)
per annum in excess of the “Prime Rate” published in the Wall Street Journal, as the same
changes from time to time (the “Default Rate”).

COVENANT TO PAY RENT

	1.	 	The covenants of Tenant to pay the Base Rent and the Additional Rent are each independent of
any other covenant, condition, provision or agreement contained in this Lease. All rents are
payable to Landlord at:

Dennis P. Dirlam

15241 Creekside Court

Eden Prairie, MN 55346

(612) 759-0411

	 	 	(or such other address indicated in writing by Landlord).

UTILITIES

	1.	 	Landlord shall provide mains and conduits to supply water, gas, electricity and sanitary
sewage to the Property. If Landlord elects to furnish any of the foregoing utility services
or other services furnished or caused to be furnished to Tenant, then the rate charged by
Landlord shall not exceed the rate Tenant would be required to pay to a utility company or
service company furnishing any of the foregoing utilities or services. All amounts payable by
Tenant to Landlord hereunder shall be deemed Additional Rent in accordance with Article 3.

 

 

CARE AND REPAIR OF DEMISED PREMISES

	1.	 	Tenant shall, at all times throughout the term of this Lease, including renewals and
extensions, and at its sole expense, keep and maintain the Demised Premises in a clean, safe,
sanitary and first class condition and in compliance with all applicable laws, codes,
ordinances, rules and regulations. Tenant’s obligations hereunder shall include but not be
limited to the maintenance, repair and replacement, if necessary, of heating and air
conditioning fixtures, equipment, and systems (the “HVAC Equipment”), all lighting and
plumbing fixtures and equipment, fixtures, motors and machinery, all interior walls,
partitions, doors and windows, including the regular painting thereof, all exterior entrances
to the Demised Premises, windows, doors and loading docks and dock equipment and the
replacement of all broken glass. When used in this provision, the term “repairs” shall
include replacements or renewals when necessary, and all such repairs made by the Tenant shall
be equal in quality and class to the original work. Without limiting the generality of the
foregoing, Tenant shall obtain and maintain at all times during the term of this Lease a
maintenance contract with a responsible, licensed HVAC contractor, on terms reasonably
acceptable to Landlord, for the regular maintenance of all HVAC Equipment within or
exclusively serving the Demised Premises, and shall be responsible for the performance of all
maintenance to be performed thereunder. Tenant shall keep accurate and complete records of
the performance of all scheduled maintenance under such contract and shall provide copies
thereof to Landlord from time to time upon request by Landlord. The Tenant shall keep and
maintain all portions of the Demised Premises and the sidewalk and areas adjoining the same in
a clean and orderly condition, free of accumulation of dirt, rubbish, snow and ice.
	 
	 	 	If Tenant fails, refuses or neglects to maintain or repair the Demised Premises as required
in this Lease, after notice shall have been given Tenant in accordance with Article 33 of
this Lease, Landlord may make such repairs without liability to Tenant for any loss or
damage that may accrue to Tenant’s merchandise, fixtures or other property or to Tenant’s
business by reason thereof, and upon completion thereof, Tenant shall pay to Landlord all
costs plus 15% for overhead incurred by Landlord in making such repairs upon presentation to
Tenant of bill therefor; provided, however, that no notice shall be required in the event of
any hazardous or emergency condition.
	 
	 	 	Landlord shall repair, at its expense (subject to inclusion in “Operating Expenses” pursuant
to Section 3), the structural portions of the Building; provided, however, where structural
repairs are required to be made by reason of the acts of Tenant, the costs thereof shall be
borne by Tenant and payable by Tenant to Landlord upon demand.
	 
	 	 	Except as otherwise provided herein, the Landlord shall be responsible for all outside
maintenance of the Demised Premises, including grounds and parking areas. All such
maintenance which is the responsibility of the Landlord shall be provided as reasonably
necessary to the comfortable use and occupancy of Demised Premises during business hours,
except Saturdays, Sundays and holidays, upon the condition that the Landlord shall not be
liable for damages for failure to do so due to causes beyond its control.

 

 

SIGNS

	7.	 	Any sign, lettering, picture, notice or advertisement installed on or in any part of the
Property and visible from the exterior of the Building, or visible from the exterior of the
Demised Premises, shall be subject to Landlord’s prior approval and shall be installed at
Tenant’s expense. In the event of a violation of the foregoing by Tenant, Landlord may remove
the same without any liability and may charge the expense incurred by such removal to Tenant.

ALTERATIONS, INSTALLATION, FIXTURES

	8.	 	Except as hereinafter provided, Tenant shall not make any alteration, additions, or
improvements in or to the Demised Premises or add, disturb or in any way change any plumbing
or wiring therein without the prior written consent of the Landlord. In the event alterations
are required by any governmental agency by reason of the use and occupancy of the Demised
Premises by Tenant, Tenant shall make such alterations at its own cost and expense after first
obtaining Landlord’s approval of plans and specifications therefor and furnishing such
indemnification as Landlord may reasonably require against liens, costs, damages and expenses
arising out of such alterations. Alterations or additions by Tenant must be made in
compliance with all laws, ordinances and governmental regulations affecting the Property and
Tenant shall warrant to Landlord that all such alterations, additions, or improvements shall
be in strict compliance with all relevant laws, ordinances, governmental regulations, permits
and insurance requirements. Construction of such alterations or additions shall commence only
upon Tenant obtaining and exhibiting to Landlord the requisite approvals, licenses and permits
and indemnification against liens. All alterations, installations, physical additions or
improvements to the Demised Premises made by Tenant shall at once become the property of
Landlord and shall be surrendered to Landlord upon the termination of this Lease; provided,
however, this clause shall not apply to movable equipment or furniture owned by Tenant, which
may be removed by Tenant at the end of the term of this Lease if Tenant is not then in
default. Tenant shall be responsible for all costs related to improvements or modifications
to the Demised Premises required or necessary to comply with The Americans With Disabilities
Act of 1990 (ADA), or similar statutes or law.

POSSESSION

	9.	 	Except as hereinafter provided, Landlord shall deliver possession of the Demised Premises to
Tenant in the condition required by this Lease on or before the Commencement Date, but
delivery of possession prior to or later than such Commencement Date shall not affect the
expiration date of this Lease. Landlord shall not be liable in any respect for any failure to
deliver possession of the Demised Premises to Tenant on or before the Commencement Date. The
rentals herein reserved shall commence on the date when possession of the Demised Premises is
delivered by Landlord to Tenant. Any occupancy by Tenant prior to the beginning of the term
shall in all respects be the same as that of a Tenant under this Lease. Landlord shall have
no responsibility or liability for loss or damage to fixtures, facilities or equipment
installed or left on the Demised Premises.

 

 

SECURITY AND DAMAGE DEPOSIT

	10.	 	Tenant contemporaneously with the execution of this Lease, has deposited with Landlord the
sum of One Thousand Three Hundred Fifty and no/100 Dollars ($1,350.00), receipt of which is
acknowledged hereby by Landlord, which deposit is to be held by Landlord, without liability
for interest, as a security and damage deposit for the faithful payment and performance by
Tenant of all of its obligations hereunder, during the term hereof and any extension hereof.
Landlord may co-mingle such deposit with Landlord’s own funds and to use such security deposit
for such purpose as Landlord may determine. In the event of the failure of Tenant to keep and
perform any of the terms, covenants and conditions of this Lease to be kept and performed by
Tenant during the term hereof and any extension hereof, and without limiting any other remedy
available to Landlord, then Landlord either with or without terminating this Lease, may (but
shall not be required to) apply such portion of said deposit as may be necessary to compensate
or repay Landlord for all losses or damages sustained or to be sustained by Landlord due to
such breach on the part of Tenant, including, but not limited to overdue and unpaid rent, any
other sum payable by Tenant to Landlord pursuant to the provisions of this Lease, damages or
deficiencies in any reletting of the Demised Premises, and reasonable attorney’s fees incurred
by Landlord. Should the entire deposit or any portion thereof, be appropriated and applied by
Landlord, in accordance with the provisions of this paragraph, Tenant upon written demand by
Landlord, shall remit forthwith to Landlord a sufficient amount of cash to restore said
security deposit to the original sum deposited, and Tenant’s failure to do so within five (5)
days after receipt of such demand shall constitute a breach of this Lease. Said security
deposit shall be returned to Tenant, less any amounts retained by Landlord pursuant to the
provisions of this paragraph, at the end of the term of this Lease or any renewal thereof, or
upon the earlier termination of this Lease. Tenant shall have no right to anticipate return
of said deposit by withholding any amount required to be paid pursuant to the provisions of
this Lease or otherwise.
	 
	 	 	In the event Landlord shall sell the Property, or shall otherwise convey or dispose of its
interest in this Lease, Landlord may assign said security deposit or any balance thereof to
Landlord’s assignee, whereupon Landlord shall be released from all liability for the return
or repayment of such security deposit and Tenant shall look solely to the said assignee for
the return and repayment of said security deposit. Said security deposit shall not be
assigned or encumbered by Tenant without the written consent of Landlord, and any assignment
or encumbrance without such consent shall not bind Landlord. In the event of any rightful
and permitted assignment of this Lease by Tenant, said security deposit shall be deemed to
be held by Landlord as a deposit made by the assignee, and Landlord shall have no further
liability with respect to the return of said security deposit to the Tenant.

USE

	11.	 	The Demised Premises shall be used and occupied by Tenant solely for the purposes of
warehouse storage of materials so long as such use is in compliance with all applicable laws,
ordinances and governmental regulations affecting the Building and Demised Premises. The
Demised Premises shall not be used in such manner that, in accordance with any requirement of
law or of any public authority, Landlord shall be obligated, as a

 

 

	 	 	result of the purpose or manner of said use, to make any addition or alteration to or in the
Building. The Demised Premises shall not be used in any manner which will increase the
rates required to be paid for public liability or for fire and extended coverage insurance
covering the Demised Premises. Tenant shall occupy the Demised Premises, conduct its
business and control its agents, employees, invitees and visitors in such a way as is lawful
and reputable, and will not permit or create any nuisance, noise, odor, or otherwise
interfere with, annoy or disturb any other tenant in the Building in its normal business
operations or Landlord in its management of the Building. Tenant’s use of the Demised
Premises shall conform to all the Landlord’s rules and regulations relating to the use of
the Demised Premises. Outside storage on the Demised Premises of any type of equipment,
property or materials owned or used by Tenant or its customers or suppliers shall not be
permitted.

ACCESS TO DEMISED PREMISES

	1.	 	The Tenant agrees to permit the Landlord and the authorized representatives of the Landlord
to enter the Demised Premises at all times during usual business hours for the purpose of
inspecting the same and making any necessary repairs to the Demised Premises and performing
any work therein that may be necessary to comply with any laws, ordinances, rules, regulations
or requirements of any public authority or of the Board of Fire Underwriters or any similar
body or that the Landlord may deem necessary to prevent waste or deterioration in connection
with the Demised Premises. Nothing herein shall imply any duty upon the part of the Landlord
to do any such work which, under any provision of this Lease, the Tenant may be required to
perform and the performance thereof by the Landlord shall not constitute a waiver of the
Tenant’s default in failing to perform the same. The Landlord may, during the progress of any
work in the Demised Premises, keep and store upon the Demised Premises all necessary
materials, tools and equipment. The Landlord shall not in any event be liable for
inconvenience, annoyance, disturbance, loss of business, or other damage of the Tenant by
reason of making repairs or the performance of any work in the Demised Premises, or on account
of bringing materials, supplies and equipment into or through the Demised Premises during the
course thereof and the obligations of the Tenant under this Lease shall not thereby be
affected in any manner whatsoever.
	 
	 	 	Landlord reserves the right to enter upon the Demised Premises at any time in the event of
an emergency and at reasonable hours to exhibit the Demised Premises to prospective
purchasers or others; and to exhibit the Demised Premises to prospective Tenants and to the
display “For Lease” or similar signs on windows or doors in the Demised Premises during the
last 180 days of the term of this Lease, all without hindrance or molestation by Tenant.

EMINENT DOMAIN

	1.	 	In the event of any eminent domain or condemnation proceeding or private sale in lieu thereof
in respect to the Building during the term hereof, the following provisions shall apply:

 

 

	 	a.	 	If the whole of the Building shall be acquired or condemned by eminent domain
for any public or quasi-public use or purpose, then the term of this Lease shall cease
and terminate as of the date possession shall be taken in such proceeding and all
rentals shall be paid up to that date.
	 
	 	b.	 	If any part constituting less than the whole of the Building shall be acquired
or condemned as aforesaid, and in the event that such partial taking or condemnation
shall materially affect the Demised Premises so as to render the Demised Premises
unsuitable for the business of the Tenant, in the reasonable opinion of Landlord, then
the term of this Lease shall cease and terminate as of the date possession shall be
taken by the condemning authority and rent shall be paid to the date of such
termination.
	 
	 	 	 	In the event of a partial taking or condemnation of the Building which shall not
materially affect the Demised Premises so as to render the Demised Premises
unsuitable for the business of the Tenant, in the reasonable opinion of the
Landlord, this Lease shall continue in full force and effect but with a
proportionate reduction of the Base Rent and Additional Rent based on the portion of
the Building taken. Landlord reserves the right, at its option, to restore the
Building and the Demised Premises to substantially the same condition as they were
prior to such condemnation. In such event, Landlord shall give written notice to
Tenant, within thirty (30) days following the date possession shall be taken by the
condemning authority, of Landlord’s intention to restore. Upon Landlord’s notice of
election to restore, Landlord shall commence restoration and shall restore the
Building and the Demised Premises with reasonable promptness, subject to delays
beyond Landlord’s control and delays in the receipt of condemnation or sale proceeds
by Landlord; and Tenant shall have no right to terminate this Lease except as herein
provided. Upon completion of such restoration, the rent shall be re-adjusted based
upon the portion, if any, of the Building restored.
	 
	 	c.	 	In the event of any condemnation or taking as aforesaid, whether whole or
partial, the Tenant shall not be entitled to any part of the award paid for such
condemnation and Landlord is to receive the full amount of such award, the Tenant
hereby expressly waiving any right to claim to any part thereof.
	 
	 	d.	 	Although all damages in the event of any condemnation shall belong to the
Landlord whether such damages are awarded as compensation for diminution in value of
the leasehold or to the fee of the Demised Premises, Tenant shall have the right to
claim and recover from the condemning authority, but not from Landlord, such
compensation as may be separately awarded or recoverable by Tenant in Tenant’s own
right on account of any and all damage to Tenant’s business by reason of the
condemnation and for or on account of any cost or loss to which Tenant might be put in
removing Tenant’s merchandise, furniture, fixtures, leasehold improvements and
equipment. However, Tenant shall have no claim against Landlord and shall make no
claim with the condemning authority

 

 

	 	 	 	for the loss of its leasehold estate, any unexpired term or loss of any possible
renewal or extension of said lease or loss of any possible value of said Lease.

DAMAGE OR DESTRUCTION

	1.	 	In the event of any damage or destruction to the Demised Premises by fire or other cause
during the term hereof, the following provisions shall apply:

	 	a.	 	If the Building is damaged by fire or any other cause to such extent that the
cost of restoration, as reasonably estimated by Landlord, will equal or exceed thirty
percent (30%) of the replacement value of the Building (exclusive of foundations) just
prior to the occurrence of the damage, then Landlord may, no later than the sixtieth
(60th) day following the damage, give Tenant written notice of Landlord’s election to
terminate this Lease.
	 
	 	b.	 	If the cost of restoration as estimated by Landlord will equal or exceed fifty
percent (50%) of said replacement value of the Building and if the Demised Premises are
not suitable as a result of said damage for the purposes for which they are demised
hereunder, in the reasonable opinion of Landlord and Tenant, then Tenant may, no later
than the sixtieth (60th) day following the damage, give Landlord a written notice of
election to terminate this Lease.
	 
	 	c.	 	If the cost of restoration as estimated by Landlord shall amount to less than
thirty percent (30%) of said replacement value of the Building, or if, despite the
cost, Landlord does not elect to terminate this Lease, Landlord shall restore the
Building and the Demised Premises with reasonable promptness, subject to delays beyond
Landlord’s control and delays in the receipt of insurance proceeds by Landlord; and
Landlord shall not be responsible for restoring or repairing leasehold improvements of
the Tenant.
	 
	 	d.	 	In the event either of the elections to terminate is properly exercised, this
Lease shall be deemed to terminate on the date of the receipt of the notice of election
and all rents shall be paid up to that date. Tenant shall have no claim against
Landlord for the value of any unexpired term of this Lease.
	 
	 	e.	 	In any case where damage to the Building shall materially affect the Demised
Premises so as to render them unsuitable in whole or in part for the purposes for which
they are demised hereunder, then, unless such destruction was wholly or partially
caused by the negligence or breach of the terms of this Lease by Tenant, its employees,
agents or representatives, a portion of the rent based upon the extent to which the
Demised Premises are rendered unsuitable shall be abated until repaired or restored.
If the destruction or damage was wholly or partially caused by negligence or breach of
the terms of this Lease by Tenant as aforesaid

 

 

	 	 	 	and if Landlord shall elect to rebuild, the rent shall not abate and the Tenant
shall remain liable for the same.

CASUALTY INSURANCE

	1	a.	 	Landlord shall at all times during the term of this Lease, at its expense (except
that such expense shall be included in the calculation of Additional Rent under Section 3
hereof), maintain a policy or policies of insurance issued by an insurance company licensed to
do business in the State of Minnesota insuring the Building using the standard Minnesota
Special Cause of Loss Form or equivalent for the full replacement value, provided that
Landlord shall not be obligated to insure any furniture, equipment, machinery, goods or
supplies which Tenant may bring upon the Demised Premises or any tenant improvements which
Tenant or Landlord may construct or install on the Demised Premises, prior to or after the
date of this Lease. Landlord may at its option also elect to carry rent loss insurance or
other types of insurance commonly carried by owners of similar properties in the
Minneapolis-St. Paul Metropolitan Area, and the Tenant’s pro rata share of the cost thereof
shall constitute Additional Rent.

	 	b.	 	Tenant shall not carry any stock of goods or do anything in or about the
Demised Premises which will in any way impair or invalidate the obligation of the
insurer under any policy of insurance required by this Lease.
	 
	 	c.	 	Provided Landlord’s insurance carrier consents, Landlord hereby waives and
releases all claims, liability and causes of action against Tenant and its agents,
servants and employees for loss or damage to, or destruction of, the Demised Premises
or any portion thereof, including the buildings and other improvements situated
thereon, resulting from fire, explosion and other perils, to the extent such loss or
damage is covered by standard extended coverage insurance, whether caused by the
negligence of any of said persons or otherwise. Likewise, Tenant hereby waives and
releases all claims, liabilities and causes of action against Landlord and its agents,
servants and employees for loss or damage to, or destruction of, any of the
improvements, fixtures, equipment, supplies, merchandise and other property, whether
that of Tenant or of others in, upon or about the Demised Premises resulting from fire,
explosion or the other perils included in standard extended coverage insurance, whether
caused by the negligence of any of said persons or otherwise. The waiver by Tenant
contained in this Section 14.2 shall remain in force whether or not the Tenant’s
insurer shall consent thereto.
	 
	 	d.	 	In the event that the use of the Demised Premises by Tenant increases the
premium rate for insurance carried by Landlord on the improvements of which the Demised
Premises are a part, Tenant shall pay Landlord, upon demand, the amount of such premium
increase. If Tenant installs any electrical equipment that overloads the power lines
to the Building or its wiring, Tenant shall, at its own expense, make whatever changes
are necessary to comply with the requirements

 

 

	 	 	 	of the insurance underwriter, insurance rating bureau and governmental authorities
having jurisdiction.

	 	e.	 	Tenant shall during the term of this Lease, obtain and maintain in full force
and effect at its sole cost and expense a policy or policies of insurance insuring all
of its personal property located within the Demised Premises from time to time, as well
as all tenant improvements made thereto, against loss or damage by fire, explosion or
other such hazards and contingencies for the full replacement value thereof. Such
policy or policies shall provide that thirty (30) days written notice must be given to
Landlord prior to cancellation or modification thereof. Tenant shall furnish evidence
satisfactory to Landlord at the time this Lease is executed and thereafter from time to
time upon request by Landlord that such coverage is in full force and effect.

PUBLIC LIABILITY INSURANCE

	1.	 	Tenant shall during the term hereof, keep in full force and effect at its expense a policy or
policies of public liability insurance with respect to the Demised Premises and the business
of Tenant in amounts not less than $1,000,000 per occurrence, $2,000,000 aggregate using
current ISO General Liability forms or equivalent naming the Landlord as an additional
insured. Such policy or policies shall provide that thirty (30) days written notice must be
given to Landlord prior to cancellation or modification thereof. Tenant shall furnish
evidence satisfactory to Landlord at the time this Lease is executed and thereafter upon
request by Landlord that such coverage is in full force and effect.

DEFAULT OF TENANT

	17	a.	 	In the event of any failure of Tenant to pay any Base Rent, Additional Rent or
other amounts due hereunder within five (5) days after the same shall be due, or any failure
to perform any other of the terms, conditions or covenants of this Lease to be observed or
performed by Tenant with all reasonable diligence, but in any event for more than thirty (30)
days after written notice of such failure shall have been given to Tenant, or if Tenant or an
agent of Tenant shall falsify any report required to be furnished to Landlord pursuant to the
terms of this Lease, or if Tenant or any guarantor of this Lease shall become bankrupt or
insolvent, or file any debtor proceedings, or any person shall file against Tenant or any
guarantor of this Lease in any court pursuant to any statute either of the United States or of
any state a petition in bankruptcy or insolvency or for reorganization or for the appointment
of a receiver or trustee of all or a portion of Tenant’s or any such guarantor’s property, or
if Tenant or any such guarantor makes an assignment for the benefit of creditors, or petitions
for or enters into any similar arrangement, or if any guarantor of this Lease shall be in
default in the performance of any covenant, duty or obligation under any guaranty or other
agreement entered into with or in favor of Landlord and such default shall remain uncured for
a period of thirty (30) days or more after notice of such default, or if Tenant shall abandon
or vacate the Demised Premises or suffer this Lease to be taken under any writ of execution
(any one or more of the foregoing shall

 

 

	 	 	 	constitute an “Event of Default”), then in any such event Tenant shall be in default
hereunder, and Landlord, in addition to any other rights and remedies it may have,
shall have the immediate right of re-entry and may remove all persons and property
from the Demised Premises and such property may be removed and stored in a public
warehouse or elsewhere at the sole cost of, and for the account of Tenant, all
without service of notice or resort to legal process and without being guilty of
trespass, or becoming liable for any loss or damage which may be occasioned thereby.

	 	b.	 	Upon the occurrence of an Event of Default, Landlord shall have the right (in
addition to any other rights or remedies) to either terminate this Lease or, from time
to time, without terminating this Lease, to terminate Tenant’s right of possession of
the Demised Premises. If Landlord terminates Tenant’s right of possession only,
Landlord may, but shall in no event be obligated to, make such alterations and repairs
as may be necessary in order to relet the Demised Premises, and relet the Demised
Premises or any part thereof upon such term or terms (which may be for a term extending
beyond the term of this lease) and at such rental or rentals and upon such other terms
and conditions as Landlord in its sole discretion may deem advisable. Upon any such
reletting all rentals received by the Landlord from such reletting shall be applied
first to the payment of any indebtedness other than rent due hereunder from Tenant to
Landlord; second, to the payment of any costs and expenses of such reletting, including
brokerage fees and attorney’s fees and costs of such alterations and repairs; third, to
the payment of the rent due and unpaid payment of future rent as the same may become
due and payable hereunder. If such rentals received from any such reletting during any
month are less than that to be paid during that month by Tenant hereunder, Tenant, upon
demand, shall pay any such deficiency to Landlord. No such re-entry or taking
possession of the Demised Premises by Landlord shall be construed as an election on its
part to terminate this Lease unless a written notice of such intention is given to
Tenant. Notwithstanding any such reletting without termination, Landlord may at any
time after such re-entry and reletting elect to terminate this Lease, and in addition
to any other remedies it may have, it may recover from any Tenant all damages it may
incur by reason of such breach, including the cost of recovering the Demised Premises,
reasonable attorney’s fees, and including the worth at the time of such termination of
the excess, if any, of the amount of rent and charges equivalent to rent reserved in
this Lease for the remainder of the stated term over the then reasonable rental value
of the Demised Premises for the remainder of the stated term, all of which amounts
shall be immediately due and payable from Tenant to Landlord.
	 
	 	c.	 	Landlord may, at its option, in addition to any other rights or remedies
available to it in this Lease or otherwise by law, statute or equity, spend such money
as is necessary to cure any default of Tenant herein and the amount so spent, and costs
incurred, including attorney’s fees in curing such default, shall be paid by Tenant, as
additional rent, upon demand.

 

 

	d.	 	In the event suit shall be brought for recovery of possession of the Demised
Premises, for the recovery of rent or any other amount due under the provisions of this
Lease, or in connection with any Event of Default, and an Event of Default shall be
established, Tenant shall pay to Landlord all expenses incurred in connection
therewith, including attorney’s fees, together with interest on all such expenses at
the Default Rate from the date of such breach.
	 
	e.	 	Tenant hereby expressly waives any and all rights of redemption granted by or
under any present or future laws in the event of Tenant being evicted or dispossessed
for any cause, or in the event of Landlord obtaining possession of the Demised
Premises, by reason of any Event of Default hereunder, or otherwise. Tenant also
waives any demand for possession of the Demised Premises, and any demand for payment of
rent and any notice of intent to re-enter the Demised Premises, or of intent to
terminate this Lease, other than the notices above provided in this Article, and waives
any and every other notice or demand prescribed by any applicable statutes or laws.
	 
	f.	 	No remedy herein or elsewhere in this Lease or otherwise by law, statute or
equity, conferred upon or reserved to Landlord shall be exclusive of any other remedy,
but shall be cumulative, and may be exercised from time to time and as often as the
occasion may arise.

HOLD HARMLESS

	18.	 	Except to the extent any liability for damage or loss is caused by the gross negligence of
Landlord, its agents or employees, Tenant shall hold harmless Landlord, its shareholders,
directors, officers, agents and employees, from any liability for damages to any person or
property in or upon the Demised Premises and the Demised Premises, including the person and
the property of Tenant and its employees and all persons in the Building at its or their
invitation or sufferance, and from all damages resulting from Tenant’s failure to perform the
covenants or other provisions of this Lease. All property kept, maintained or stored on the
Demised Premises shall be so kept, maintained or stored at the sole risk of Tenant. Tenant
agrees to pay all sums of money in respect of any labor, service, materials, supplies or
equipment furnished or alleged to have been furnished to Tenant in or about the Demised
Premises, and not furnished on order of Landlord, which may be secured by any mechanic’s
materialmen’s or other lien provided that Tenant may contest such lien, upon providing
Landlord adequate security against such lien. If any such lien is reduced to final judgment
and if such judgment or process thereon is not stayed, or if stayed and said stay expires,
then Tenant shall immediately pay and discharge said judgment. Landlord shall have the right
to post and maintain on the Demised Premises, notices of non-responsibility under the laws of
the State of Minnesota.

NON-LIABILITY

	19.	 	Landlord shall not be liable for damage to any property of Tenant or of others located on the
Demised Premises, nor for the loss of or damage to any property of Tenant or of

 

 

		 	others by
theft or otherwise. Without limiting the foregoing, Landlord shall not be liable for any
injury or damage to persons or property resulting from fire, explosion, any injury or damage
to persons or property resulting from fire, explosion, falling plaster, steam, gas,
electricity, water, rain or snow or leaks from any part of the Demised Premises or from the
pipes, appliances, or plumbing works or from the roof, street or subsurface or from any other
place or by dampness or by any such damage caused by other Tenants or persons in the Demised
Premises, occupants of adjacent property, of the buildings, or the public or caused by
operations in construction of any private, public or quasi-public work. Landlord shall not be
liable for any latent defect in the Demised Premises. All property of Tenant kept or stored
on the Demised Premises shall be so kept or stored at the risk of Tenant only and Tenant shall
hold Landlord harmless from any claims arising out of damage to or loss of the same, including
subrogation claims by Tenant’s insurance carrier.

SUBORDINATION

	 	 	 	 	 
	20

	 	a.
	 	This Lease shall be subordinated to any mortgages that may now exist or that may
hereafter be placed upon the Demised Premises and to any and all advances made thereunder, and
to all interest and other charges relating to the indebtedness evidenced by such mortgages,
and to all renewals, replacements and extensions thereof. In the event of execution by
Landlord after the date of this Lease of any such mortgage, renewal, replacement or extension,
Tenant agrees to execute a subordination agreement and/or any other documents relating to this
Section 19 with the holder thereof, which agreement shall provide, among other things, that:

	 	b.	 	Such holder shall not disturb the possession and other rights of Tenant under
this Lease so long as Tenant is not in default hereunder,
	 
	 	c.	 	In the event of acquisition of title to the Demised Premises by such holder,
such holder shall accept the Tenant as Tenant of the Demised Premises under the terms
and conditions of this Lease and shall perform all the obligations of Landlord
hereunder, and
	 
	 	d.	 	The Tenant shall recognize such holder as Landlord hereunder.
	 
	 	e.	 	Tenant shall, upon receipt of a request from Landlord therefor, execute and
deliver to Landlord or to any proposed holder of a mortgage or trust deed or to any
proposed purchaser of the Demised Premises, a certificate in recordable form,
certifying that this Lease is in full force and effect, and that there are no offsets
against rent nor defenses to Tenant’s performance under this Lease, or setting forth
any such offsets or defenses claimed by Tenant as the case may be. Tenant shall
execute and deliver any such subordination agreement or other such documents within ten
(10) days of written request therefor. The failure of Tenant to do so within such time
frame shall constitute an immediate default hereunder without the need for Landlord to
provide any notice and/or opportunity to cure as 

 

 

	 	 	 	set forth in Section 16 hereof.
Tenant hereby irrevocably appoints Landlord its attorney in fact to execute any such
subordination agreement or other such document in the name of Tenant upon the failure
of Tenant to perform its obligations under this Section 19 as required hereunder.

ASSIGNMENT OR SUBLETTING

	21.	 	Tenant agrees to use and occupy the Demised Premises throughout the entire term hereof for
the purpose or purposes herein specified and for no other purposes, in the manner and to
substantially the extent now intended, and not to transfer or assign this Lease or sublet said
Demised Premises, or any part thereof, whether by voluntary act, operation of law, or
otherwise, without obtaining the prior written consent of Landlord in each instance. Tenant
shall seek such consent of Landlord by a written request therefor, setting forth such
information as Landlord may deem necessary. Consent by Landlord to any assignment of this
Lease or to any subletting of the Demised Premises shall be at Landlord’s sole discretion and
shall not be a waiver of Landlord’s rights under this Article as to any subsequent assignment
or subletting. Landlord’s rights to assign this Lease are and shall remain unqualified. No
such assignment or subleasing shall relieve the Tenant from any of Tenant’s obligations in
this Lease contained, nor shall any assignment or sublease or other transfer of this Lease be
effective unless the assignee, subtenant or transferee shall at the time of such assignment,
sublease or transfer, assume in writing for the benefit of Landlord, its successors and
assigns, all of the terms, covenants and conditions of this Lease thereafter to be performed
by Tenant and shall agree in writing to be bound thereby. Should Tenant sublease in
accordance with the terms of this Lease, any increase in rental received by Tenant over the
per square foot rental rate which is being paid by Tenant shall be forwarded to and retained
by Landlord, which increase shall be in addition to the Base Rent and Additional Rent due
Landlord under this Lease.

ATTORNMENT

	22.	 	In the event of a sale or assignment of Landlord’s interest in the Demised Premises or in the
Building in which the Demised Premises are located, or this Lease, or if the Demised Premises
come into custody or possession of a mortgagee or any other party whether because of a
mortgage foreclosure, or otherwise, Tenant shall attorn to such assignee or other party and
recognize such party as Landlord hereunder; provided, however, Tenant’s peaceable possession
will not be disturbed so long as Tenant faithfully performs its obligations under this Lease.
Tenant shall execute, on demand, any attornment agreement required by any such party to be
executed, containing such provisions as such party may require.

NOVATION IN THE EVENT OF SALE

	 	 	 	 	 
	23

	 	a.
	 	In the event of the sale of the Building, Landlord shall be and hereby is relieved
of all of the covenants and obligations created hereby accruing from and after the date of
sale, and such sale shall result automatically in the purchaser assuming and agreeing to carry
out all the covenants and obligations of Landlord herein.

 

 

	 	b.	 	The Tenant agrees at any time and from time to time upon not less than ten (10)
days prior written request by the Landlord to execute, acknowledge and deliver to the
Landlord a statement in writing certifying that this Lease is unmodified and in full
force and effect (as modified and stating the modifications, if any) and the dates to
which the base rent and other charges have been paid in advance, if any, it being
intended that any such statement delivered pursuant to this paragraph may be relied
upon by any prospective purchaser of the fee or mortgagee or assignee of any mortgage
upon the fee of the Demised Premises.

SUCCESSORS AND ASSIGNS

	24.	 	The terms, covenants and conditions hereof shall be binding upon and inure to the successors
and permitted assigns of the parties hereto.

REMOVAL OF FIXTURES

	25.	 	Notwithstanding anything contained in Article 7, 28 or elsewhere in this Lease, if Landlord
requests then Tenant will promptly remove at the sole cost and expense of Tenant all fixtures,
equipment and alterations made by Tenant, at the time Tenant vacates the Demised Premises, and
Tenant will promptly restore said Demised Premises to the condition that existed immediately
prior to said fixtures, equipment and alterations having been made, all at the sole cost and
expense of Tenant.

QUIET ENJOYMENT

	26.	 	Landlord warrants that it has full right to execute and to perform this Lease and to grant
the estate demised, and that Tenant, upon payment of the rents and other amounts due and the
performance of all the terms, conditions, covenants and agreements on Tenant’s part to be
observed and performed under this Lease, may peaceably and quietly enjoy the Demised Premises
for the business uses permitted hereunder, subject, nevertheless, to the terms and conditions
of this Lease.

RECORDING

	27.	 	Tenant shall not record this Lease or any memorandum hereof without the written consent of
Landlord. However, upon the request of either party hereto, the other party shall join in the
execution of a Memorandum lease for the purposes of recordation. Said Memorandum lease shall
describe the parties, the Demised Premises and the term of the Lease and shall incorporate
this Lease by reference, but shall not set forth the amount of the Base Rent, Additional Rent
or other amounts due hereunder. This Article 26 shall not be construed to limit Landlord’s
right to file this Lease under Article 21 of this Lease.

OVERDUE PAYMENTS

 

 

	28.	 	All monies due under this Lease from Tenant to Landlord shall be due on demand, unless
otherwise specified and if not paid when due, shall result in the imposition of a service
charge for such late payment in the amount of ten percent (10%) of the amount due.

SURRENDER

	29.	 	On the Expiration Date or upon the termination hereof on a day other than the Expiration
Date, Tenant shall peaceably surrender the Demised Premises broom-clean in good order,
condition and repair, reasonable wear and tear only excepted. On or before the Expiration
Date or upon termination of this Lease on a day other than the Expiration Date, Tenant shall,
at its expense, remove all trade fixtures, personal property, equipment and signs, together
with any fixtures, alterations or improvements required by Landlord to be removed pursuant to
Section 24 hereof, from the Demised Premises and any property not removed shall be deemed to
have been abandoned. Any damage caused in the removal of such items shall be repaired by
Tenant and at its expense. All alterations, additions, improvements and fixtures (other than
trade fixtures) which shall have been made or installed by Landlord or Tenant upon the Demised
Premises and all floor covering so installed shall remain upon and be surrendered with the
Demised Premises as a part thereof, without disturbance, molestation or injury, and without
charge, at the expiration of termination of this Lease, except any such items identified under
Section 24 hereof. If the Demised Premises are not surrendered on the Expiration Date or the
date of termination, Tenant shall indemnify Landlord against loss or liability arising out of
or relating to any claims resulting from such failure, including without limitation, any
claims made by any succeeding Tenant founded on such delay. Tenant shall promptly surrender
all keys for the Demised Premises to Landlord at the place then fixed for payment of rent and
shall inform Landlord of combinations of any locks and safes on the Demised Premises.

HOLDING OVER

	30.	 	In the event of a holding over by Tenant after expiration or termination of this Lease
without the consent in writing of Landlord, Tenant shall be deemed a Tenant at sufferance and
shall pay rent for such occupancy at the rate of twice the last-current aggregate Base Rent
and Additional Rent, prorated for the entire holdover period, plus all attorney’s fees and
expenses incurred by Landlord in enforcing its rights hereunder, plus any other damages
occasioned by such holding over.

ABANDONMENT

	31.	 	In the event Tenant shall remove its fixtures, equipment or machinery or shall vacate the
Demised Premises or any part thereof prior to the Expiration Date of this Lease, or shall
discontinue or suspend the operation of its business conducted on the Demised Premises for a
period of more than thirty (30) consecutive days (except during any time when the Demised
Premises may be rendered untenantable by reason of fire or other casualty), then in any such
event Tenant shall be deemed to have abandoned the Demised Premises and such abandonment shall
constitute an Event of Default under the terms of this Lease.

 

 

CONSENTS BY LANDLORD

	32.	 	Whenever provision is made under this Lease for Tenant securing the consent or approval by
Landlord, such consent or approval shall only be valid if it is made in writing.

NOTICES

	33.	 	Any notice required or permitted under this Lease shall be deemed sufficiently given or
secured if sent by registered or certified return receipt mail to Tenant at 14793 Martin
Drive, Eden Prairie, Minnesota 55344, and to Landlord at the address then fixed for the
payment of rent as provided in Article 4 of this Lease, and either party may by like written
notice at any time designate a different address to which notices shall subsequently be sent.

RULES AND REGULATIONS

	34.	 	Tenant shall observe and comply with such rules and regulations as Landlord may from time to
time prescribe, on written notice to Tenant, for the safety, care, cleanliness and operation
of the Building.

INTENT OF PARTIES

	35.	 	Except as otherwise provided herein, the Tenant covenants and agrees that if it shall at any
time fail to pay any cost or expense required to be paid by Tenant hereunder, or fail to take
out, pay for, maintain or deliver any of the insurance policies above required, or fail to
make any other payment or perform any other act on its part to be made or performed as in this
Lease provided, then the Landlord may, but shall not be obligated so to do, and without notice
to or demand upon the Tenant and without waiving or releasing the Tenant from any obligations
of the Tenant in this Lease contained, pay any such cost or expense, effect any such insurance
coverage and pay premiums therefor, and may make any other payment or perform any other act on
the part of the Tenant to be made and performed as in this Lease provided, in such manner and
to such extent as the Landlord may deem desirable, and in exercising any such right, to also
pay all necessary and incidental costs and expenses, employ counsel and incur and pay
reasonable attorneys’ fees. All sums so paid by Landlord and all necessary and incidental
costs and expenses in connection with the performance of any such act by the Landlord,
together with interest thereon at the rate of ten percent (10%) per annum from the date of
making of such expenditure, by Landlord, shall be deemed additional rent hereunder, and shall
be payable to Landlord on demand. Tenant covenants to pay any such sum or sums with interest
as aforesaid and the Landlord shall have the same rights and remedies in the event of the
nonpayment thereof by Tenant as in the case of default by Tenant in the payment of the Base
Rent payable under this Lease.

 

 

LANDLORD DEFAULT

	 	 	 	 	 
	36.

	 	a.
	 	Any of the following occurrence, conditions or acts by Landlord shall constitute a
“Landlord Default”: (a) Landlord’s failure to make any payments of money due Tenant hereunder
within ten (10) days after the receipt of written notice from Tenant that same is overdue; or
(b) Landlord’s failure to perform any nonmonetary obligation of Landlord hereunder within
thirty (30) days after receipt of written notice from Tenant to Landlord specifying such
default and demanding that the same be cured; provided that, if such default cannot with due
diligence be wholly cured within such thirty (30) days, Landlord shall have such longer period
as may be reasonably necessary to cure the default, so long as Landlord proceeds promptly to
commence the cure of same within such thirty (30) day period and diligently prosecutes the
cure to complete.

	 	b.	 	Upon the occurrence of a Landlord Default, at Tenant’s option, in addition to
any other remedies which it may have, and without its actions being deemed a cure of
Landlord’s default, Tenant may (i) pay or perform such obligations and offset Tenant’s
reasonable and actual cost of performance, plus interest at the Default Rate, against
the Base Rent unless, by written notice to Tenant, Landlord contests whether a Landlord
Default has occurred or is continuing, in which case such right of offset shall only be
effective if final, non-appealable judgment against Landlord shall have been entered by
a court of competent jurisdiction; or (ii) sue for damages.

GENERAL

	 	 	 	 	 
	37.

	 	a.
	 	The Lease does not create the relationship of principal agent or of partnership or
of joint venture or of any association between Landlord and Tenant, the sole relationship
between the parties hereto being that of Landlord and Tenant.

	 	b.	 	No waiver of any default of Tenant hereunder shall be implied from any omission
by Landlord to take any action on account of such default if such default persists or
is repeated, and no express waiver shall affect any default other than the default
specified in the express waiver and that only for the time and to the extent therein
stated. One or more waivers by Landlord shall not then be construed as a waiver of a
subsequent breach of the same covenant, term or condition. The consent to or approval
by Landlord of any act by Tenant requiring Landlord’s consent or approval shall not
waive or render unnecessary Landlord’s consent to or approval of any subsequent similar
act by Tenant shall be construed to be both a covenant and a condition. No action
required or permitted to be taken by or on behalf of Landlord under the terms or
provisions of this Lease shall be deemed to constitute an eviction or disturbance of
Tenant’s possession of the Demised Premises. All preliminary negotiations are merged
into and incorporated in this Lease. The laws of the State of Minnesota shall govern
the validity, performance and enforcement of this Lease.

 

 

	 	c.	 	This Lease and the exhibits, if any, attached hereto and forming a part hereof,
constitute the entire agreement between Landlord and Tenant affecting the Demised
Premises and there are no other agreements, subsequent alteration, amendment, change or
addition to this Lease shall be binding upon Landlord or Tenant unless reduced to
writing and executed in the same form and manner in which this Lease is executed.
	 
	 	d.	 	If any agreement, covenant or condition of this Lease or the application
thereof to any person or circumstance shall, to any extent, be invalid or
unenforceable, the remainder of this Lease, or the application of such agreement,
covenant or condition to persons or circumstances other than those as to which it is
held invalid or unenforceable, shall not be affected thereby and each agreement,
covenant or condition of this Lease shall be valid and be enforced to the fullest
extent permitted by law.
	 
	 	e.	 	If any person or entity extending credit to Landlord in connection with the
Building requires a change in this Lease which does not materially decrease, diminish
or restrict any of Tenant’s rights hereunder, Tenant agrees, at the request of
Landlord, to promptly execute and deliver to Landlord an amendment to this Lease
incorporating such required changes; provided, however, that Tenant shall not be
required to agree to any such changes which would change the financial obligations of
Tenant hereunder, the location or size of the Demised Premises, the term of this Lease
or which would otherwise materially decrease, diminish or restrict any of Tenant’s
rights hereunder.
	 
	 	f.	 	The submission of this Lease for examination does not constitute a reservation
of or option for the Demised Premises, and this Agreement of Lease shall become
effective as a Lease only upon execution and delivery thereof by Landlord and Tenant.

HAZARDOUS MATERIAL

	 	 	 	 	 
	38.

	 	a.
	 	The Demised Premises hereby leased shall be used by and/or at the sufferance of
Tenant only for the purpose set forth in Article 11 above and for no other purposes. Tenant
shall not use or permit the use of the Demised Premises in any manner that will tend to create
waste or a nuisance, or will tend to unreasonably disturb other tenants in the Building or the
Demised Premises. Tenant, its employees and all person visiting or doing business with Tenant
in the Demised Premises shall be bound by and shall observe the reasonable rules and
regulations made by Landlord relating to the Demised Premises, the Building or the Demised
Premises of which notice in writing shall be given to the Tenant, and all such rules and
regulations shall be deemed to be incorporated into and form a part of this Lease.

 

 

	 	b.	 	Tenant covenants through the Lease Term, at Tenant’s sole cost and expense,
promptly to comply with all laws and ordinances and the orders, rules and regulations
and requirements of all federal, state and municipal governments and appropriate
departments, commission, boards, and officers thereof, and the orders, rules and
regulations of the Board of Fire Underwriters where the Demised Premises are situated,
or any other body now or hereafter as well as extraordinary, and whether or not the
same require structural repairs or alterations, which may be applicable to the Demised
Premises, or the use or manner of use of the Demised Premises. Tenant will likewise
observe and comply with the requirements of all policies of public liability, fire and
all other policies of insurance at any time in force with respect to the building and
improvements on the Demised Premises and the equipment thereof.
	 
	 	c.	 	In the event any Hazardous Material (hereinafter defined) is brought or caused
to be brought into or onto the Demised Premises, the Building or the Demised Premises
by Tenant, its agents, employees, contractors or invitees, Tenant shall handle any such
material in compliance with all applicable federal, state and/or local regulations.
For purposes of this Article, “Hazardous Material” means and includes any hazardous,
toxic or dangerous waste, substance or material defined as such in (or for purposes of)
the Comprehensive Environmental Response, Compensation, and Liability Act, any
so-called “Superfund” or “Superlien” law, or any federal, state or local statute, law,
ordinance, code, rule, regulation, order decree regulating, relating to, or imposing
liability or standards of conduct concerning, any hazardous, toxic or dangerous waste,
substance or materials, as now or at any time hereafter in effect (collectively,
“Environmental Laws”). Tenant shall submit to Landlord on an annual basis copies of
its approved hazardous materials communication plan, OSHA monitoring plan, and permits
required by the Resource Recovery and Conservation Act of 1976, if Tenant is required
to prepare, file or obtain any such plans or permits. Tenant will indemnify and hold
harmless Landlord from any losses, liabilities, damages, costs or expenses (including
reasonable attorneys’ fees) which Landlord may suffer or incur as a result of Tenant’s
breach of this Article 37 or its introduction into or onto the Demised Premises,
Building or Demised Premises of any Hazardous Material. This Article shall survive the
expiration or sooner termination of this Lease.
	 
	 	d.	 	Landlord represents and warrants to Tenant that, except as otherwise disclosed
in any environmental assessment or report delivered by Landlord to Tenant, there are no
Hazardous Materials located within the Demised Premises or otherwise on or about the
Property which require removal or remediation under applicable Environmental Laws.
Landlord agrees to indemnify and hold Tenant harmless from and against any and all
claims or damages resulting from any violation or falsity of the representation set
forth above or as a result of any leak, spill, discharge, emission or other release of
Hazardous Materials on or about the Property caused by Landlord, its agents or
employees from and after the date hereof.

 

 

FORCE MAJEURE

	39.	 	Either party’s failure to perform the terms and conditions of this Lease, in whole or in
part, other than any term requiring the payment of money, shall not be deemed a breach or a
default hereunder or give rise to any liability of such party to the other if such failure is
attributable to any unforeseeable event beyond such party’s reasonable control and not caused
by the negligent acts or omissions or the willful misconduct of such party, including, without
limitation, flood, drought, earthquake, storm, pestilence, lightning, and other natural
catastrophes and acts of God; epidemic, war riot, civic disturbance or disobedience, and act
of the public enemy; fire, accident, wreck, washout, and explosion; strike, lockout, labor
dispute, and failure, threat of failure, or sabotage of such party’s facilities; delay in
transportation or car shortages, or inability to obtain necessary labor, materials,
components, equipment, services, energy, or utilities through such party’s usual and regular
sources at usual and regular prices; and any law, regulation, order or injunction of a court
or governmental authority, whether valid or invalid and including, without limitation,
embargoes, priorities, requisitions, and allocations or restrictions of facilities, equipment
or operations. In the event of the occurrence of such a force majeure event, the party unable
to perform promptly shall notify the other party.

RIGHT OF RELOCATION OF TENANT

	40.	 	The Landlord shall have the rights to relocate Tenant to alternative space within the
Building, upon not less than ninety (90) days written notice so long as such alternative space
is substantially equivalent to the Demised Premises, in terms of size, configuration and
access. Landlord and Tenant agree to cooperate in good faith in connection with any required
tenant improvements in connection with such alternative space, which shall in any event be
consistent with the level of finish of the initial tenant improvements provided by Landlord in
connection with the Demised Premises, and in connection with Tenants move to the alternative
Demised Premises. Landlord shall pay all reasonable costs associated with effecting such
move, but shall not otherwise be liable to Tenant hereunder in connection with such
relocation.

TENANT IMPROVEMENTS

	41.	 	All improvements to the Demised Premises proposed to be constructed by either Landlord Tenant
prior to the commencement date shall be constructed in accordance with the terms and
provisions set forth on the plans and specifications attached hereto and incorporated herein
as Exhibit C.

CAPTIONS

	42.	 	The captions are inserted only as a matter of convenience and for reference, and in no way
define, limit or describe the scope of this Lease nor the intent or any provision thereof.

 

 

ATTACHMENTS

	43.	 	See also rider attached hereto and made a part hereof containing Exhibits B and C, which
Exhibits are attached hereto and made a part hereof.

	 	 	 
	Exhibit	 	Description
	Exhibit B

	 	Demised Premises
	Exhibit C

	 	Improvements

 

 

SUBMISSION

	3.	 	Submission of this instrument to Tenant or proposed Tenant or its agents or attorneys for
examination, review, consideration or signature does not constitute or imply an offer to
lease, reservation of space, or option to lease, and this instrument shall have no binding
legal effect until execution hereof by both Landlord/Owner and Tenant or its agents.

COMMISSIONS

	4.	 	It is agreed and understood that Brian Netz, agent or broker with Welsh Companies, LLC is
representing Dennis P. Dirlam, Landlord, and Dan Brastad, agent or broker with Welsh
Companies, LLC, is representing Wireless Ronin, Inc., Tenant. Tenant indemnifies Landlord for
any claim made by or commission payable to any other broker or agent in connection with
Tenant’s leasing the Demised Premises.

IN WITNESS WHEREOF, the Landlord and the Tenant have caused these presents to be executed in form
and manner sufficient to bind them at law, as of the day and year first above written.

	 	 	 
	TENANT:

	 	LANDLORD:
	 
	 	 
	WIRELESS RONIN, INC.

	 	DENNIS P. DIRLAM
	 
	 	 
	By:/s/ Steve Jacobs                    

	 	By:/s/ Dennis P. Dirlam                    
	 
	 	 
	Its: EVP

	 	Its: Owner
	 
	 	 
	Date: 4/18/06

	 	Date: 4/24/06

 

 

EXHIBIT B

[SKETCH OF FLOORPLAN OF DEMISED PREMISES]

 

 

EXHIBIT C

IMPROVEMENTS

Landlord will demise the premises and replace any burnt out light bulbs, at Landlord sole expense.

Any additional improvements will be the sole cost and responsibility of Tenant, and must receive
Landlord approval prior to construction.

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