Document:

exv10w2

 

Exhibit 10.2

CONFIDENTIALITY, DEVELOPMENT AND NON-INTERFERENCE AGREEMENT

     THIS AGREEMENT (“Agreement”) is by and between I-Sector Corporation, a Delaware
corporation with principal offices at 6401 Southwest Freeway, Houston, Texas 77074 (“Company”) and
Brian Fontana, an individual residing at 4817 Palm Street, Bellaire, TX 77401 (“Employee”) and is
effective January 3, 2005.

     In consideration of Employee’s employment or continued employment by Company and any
additional compensation or benefits that Company may now or from time to time bestow upon Employee,
Employee and Company agree as follows:

     1. Company Shall Provide Confidential Information. To the extent necessary to perform his or her
duties hereunder, Company shall provide to and/or will give Employee access to pertinent
Confidential Information (defined below) of Company. In addition, because of the nature of
Employee’s duties and responsibilities to Company, Employee from time to time will have access or
be exposed to certain other Confidential Information of Company.

     2. Employees Who Sell Company’s Products and Services. As used in this Agreement, the word
“Employee” shall be deemed to include, but not be limited to, Company’s Sales Agents and Sales
Managers. In the event Employee deals, in any way, with Company’s customers, Employee agrees that
the empathy, rapport and goodwill (collectively “goodwill”) he/she develops with Company’s
customers are extremely valuable and necessary for the sale(s) of Company’s products and services
to such customers and shall be deemed to be protectable and proprietary interests of Company and
not of Employee.

     3. Company’s Confidential Information. Employee agrees that all of Company’s Confidential
Information, whatever its nature and/or form and whether obtained by Employee orally, by
observation, by exposure to customers or other persons, from written materials or otherwise, shall
at all times be the exclusive and confidential property of Company and shall be at all times
regarded, treated and protected as such by Employee in accordance with this Agreement. Further,
Employee agrees that Company’s Confidential Information of which he/she learns at any time shall be
deemed to have been provided by Company to Employee, in confidence, irrespective of whether or not
Company provided same to Employee or whether prepared, discovered, developed or contributed to,
wholly or in part, by Employee or any other individual or entity during Employee’s employment with
Company or prior to such employment with Company. Employee agrees that such Confidential
Information is not only the proprietary and protectable property of Company, but that it shall be
treated and kept as secret by Employee at all times and any unauthorized use and/or disclosure of
same, or any part thereof, will constitute a breach(es) of this Agreement and will constitute a
breach(es) of Employee’s fiduciary duty to Company regarding the Confidential Information and will
constitute a breach(es) of the confidential relationship between Company and Employee regarding the
Confidential Information. Employee agrees that all of Company’s Confidential Information,
including but not limited to, the specific items listed in paragraph 3, below, is not known to
Company’s competitors and such competitors do not use such specific information in their business.
Employee further agrees that none of the specific items listed in paragraph 3, below, are matters
of public knowledge or of general knowledge in the industry in which Company conducts its business;
Employee agrees that none of such specific items are readily ascertainable by any competitor of
Company by reasonable and ordinary means; Employee agrees that Company’s Confidential Information
is proprietary to, about or created by Company and gives Company some competitive business
advantage or the opportunity of obtaining such advantage. Employee agrees that the unauthorized
disclosure or use of Company’s Confidential Information might be detrimental to the interests of
Company. Employee agrees that Company’s Confidential Information is not typically disclosed by
Company to, or known by third parties who are not employed by Company. Employee agrees that
Company’s Confidential Information also includes, but is not limited to, information known by
Employee to be considered confidential by Company, or from all the relevant circumstances
considered confidential by Company, or from all the relevant circumstances should reasonably be
assumed by Employee to be confidential and proprietary to Company. Employee agrees that Company
utilizes continuing and effective means of preserving

 

 

the secrecy of its Confidential Information items, such as, but not limited to, having its
Employees enter into confidentiality agreements such as this Agreement, provided, however, that
failure to mark any document “confidential,” or with word(s) of similar import, shall not affect
the confidential nature of such document or the information contained thereon. Employee agrees that
Company’s Confidential Information, which may be written, oral or otherwise, includes, but is not
limited to:

(a) Work product resulting from or related to work or projects performed or to be performed
for Company or for customers or clients of Company, including but not limited to data bases,
draft and other non-public written documents, the interim and final lines of inquiry,
hypotheses, research and conclusions related thereto and the methods, processes, procedures,
analyses, techniques and audits used in connection therewith;

(b) Computer software of any type or form in any stage of actual or anticipated research and
development, including but not limited to programs and program modules, routines and
subroutines, processes, algorithms, design concepts, design specifications (design notes,
annotations, documentation, flowcharts, coding sheets, and the like), source codes, object
codes and load modules, programming, program patches and system designs;

(c) Information relating to the Company’s proprietary rights prior to any public disclosure
thereof, including but not limited to the nature of the proprietary rights, production data,
technical and engineering data, test data and test results, the status and details of
research and development of products and service, and information regarding acquiring,
protecting, enforcing and licensing proprietary rights (including, without limitation,
patents, copyrights and trade secrets);

(d) Internal Company personnel and financial information, lists or other documents which
identify vendor names and other vendor information (including vendor characteristics,
services and agreements), information concerning the identification and nature of goods or
services provided by vendors, purchasing and internal cost information, internal service and
operational manuals, and the manner and methods of conducting Company’s business;

(e) Business, marketing and development plans, price and price discounting policies and
practices, price and cost data, price and fee amounts, pricing and billing policies, quoting
procedures, marketing techniques and methods of obtaining business, forecasts and forecast
assumptions and volumes, and future plans and potential strategies of Company which have
been or are being discussed;

(f) Names, lists or compilations of customers or clients and their representatives,
contracts and their contents and parties, customer or client services, and the type,
quantity, specifications and contents of products and services purchased, leased, licensed
or received by customers or clients of Company;

(g) Information provided to Company by any individual or entity;

(h) Contracts with, or developed by Company for use with customers, agents, vendors of
Company, or any other individual or entity, including without limitation, the terms and
conditions thereof;

(i) Any and all materials printed by or for Company and utilized by Company in any manner in
the conduct of its business;

(j) All information generated by computer software utilized by Company in the conduct of its
business;

(k) Company’s computer data bases and any information going into or coming out of Company’s
computers;

 

 

(l) Information concerning Company’s customers, including but not limited to customer
identity, customer needs and products and/or services requirements, specific products and
quantities of same purchased by customers, specific prices paid for Company’s products and
services by customers, specific quantities of Company’s products and services purchased by
customers, commissions paid on the sales made to customers, payment history of customers,
identification of and all information concerning the buyers (purchasing agents) employed by
the customers, histories of customer purchases, all notes or memoranda containing any
customer information, and all information concerning customers, customer lists (which shall
be deemed to mean any printed material containing, relating to or referring to any customer
or customer information), price books, prices, price lists, price calculations, i.e., any
information having to do with the prices Company charges its customers for Company’s
products;

(m) Any and all information concerning Company’s personnel, whether sales or in-house
personnel; any and all information concerning commissions and/or other compensation and/or
bonuses paid to Employees; any and all information concerning the effectiveness of, volume
of sales made by, and profitability of sales made by each Company Employee responsible for
making sales; Company’s sales strategies, sales procedures, promotion of sales and sales
proposals and/or bids and/or any information concerning Company’s solicitation for and sales
of its products and services; general price lists, special price lists, e.g., for “national
accounts” or other favored customer accounts; all other information and/or data relating in
any manner to Company and/or its business which is learned of and/or which comes into the
possession of Employee and/or any other Company employee while employed by Company; all
information utilized by Employee and/or any other Company employee while employed by
Company, irrespective of when or through what or whom learned of. Company’s Confidential
Information includes, but is not limited to, information that Employee would not have
learned of but for his/her employment by Company.

     Employee agrees that each, every and all of the above listed specific items of Company’s
Confidential Information are and shall be deemed trade secrets in accordance with the definitions
of trade secrets stated in comment b to the Restatement (First) of Torts § 757 (“Restatement”) and
the Uniform Trade Secrets Act (“UTSA”). Employee further agrees that such trade secrets are and
shall be deemed to be Company’s Confidential Information. Employee agrees that such Confidential
Information shall be protectable by Company as its trade secret(s) and/or confidential information
notwithstanding that, technically, any given specific item of Confidential Information, at issue,
may not satisfy the definition(s) of trade secrets as stated above or as contained in the
Restatement or UTSA. Employee agrees that it is the intent of this Agreement and is the intent of
Employee, and in light of the consideration paid by Company to Employee for his/her entering into
this Agreement, that this Agreement shall be fully enforceable and the specific items of
Confidential Information as stated herein shall be protectable by injunctive relief, among other
remedies, even though such items do not rise to the dignity of trade secret(s) as defined by the
Restatement, UTSA or by any other law(s) of the State of Texas. Confidential Information shall not
include information publicly known other than as a result of a disclosure by Employee in breach of
this Agreement. The phrase “publicly known” shall mean readily accessible to the public, or others
engaged in the industry(ies) in which Company engages, in a written publication and shall not
include information which is only available by a substantial searching of the published literature
or information the substance of which must be pieced together from a number of different
publications and sources, or by focused searches of literature guided by Confidential Information.
The burden of proving that information is not confidential or secret shall be on the party
asserting such exclusion. For purposes of this Agreement, the following definitions shall apply:
(a) “Company” shall be deemed to mean and refer to the entity named in the first paragraph hereof;
(b) “Parent” shall be deemed to mean and refer to any corporation which, directly or indirectly,
controls Company or the referred to subsidiaries through ownership or control of at least 80% of
the authorized, issued and outstanding shares of the common voting stock of Company or each of such
subsidiaries; (c) the word “Affiliates” includes Company’s Parent (if any) and subsidiaries of
Company or Company’s Parent (if any). The obligations of Employee as to paragraphs 3, 4, 5, 6 and 7
hereof shall apply to Company and its Affiliates, in which case such Affiliates shall be

 

 

deemed to be third party beneficiaries of such paragraph. The obligations of Company under this
Agreement shall not apply to such Affiliates.

     4. Covenants of Employee. As a consequence of Employee’s acquisition or anticipated acquisition of
Confidential Information, Employee will occupy a position of trust and confidence with respect to
Company’s affairs and business. Employee acknowledges that Company’s Confidential Information
is/are valuable, special and unique assets of Company, which Company uses in its business to obtain
competitive advantage over its competitors that do not know or use such information. In view of the
foregoing and of the consideration being provided to Employee by Company for the execution of this
Agreement, Employee agrees that it is reasonable and necessary that Employee make the following
covenants. Employee does hereby covenant and agree as follows:

(a) That he/she will at all times keep in strict confidence, and will not, either directly
or indirectly (other than in the regular course of Company’s business), copy, transfer, make
known, divulge, reveal, furnish, make available for use, disclose, publish, make available
to others, misappropriate or use, at any time, any of Company’s Confidential Information;
and

(b) That he/she will safeguard all of Company’s Confidential Information at all times so
that it, or any of it, is not exposed to, or taken by, unauthorized persons, and Employee
shall exercise his/her best efforts at all times to assure such Confidential Information’s
safekeeping, confidentiality and secrecy; and

(c) That the prohibitions against Employee regarding Company’s Confidential Information
contained in this paragraph 4, include but are not limited to, disclosing the fact that any
similarity exists between the Confidential Information and information independently
developed by any third party, and Employee understands that such similarity does not excuse
Employee from abiding by his or her covenants or other obligations under this Agreement.

(d) That the prohibitions against Employee’s use, copying or transfer of Confidential
Information includes, but is not limited to, selling, licensing or otherwise exploiting,
directly or indirectly, any products or services (including data bases, written documents
and software in any form) which embody or are derived from Confidential Information, or
exercising judgment in performing analyses based upon knowledge of Confidential Information.

(e) That the certain Employment Agreement entered into by and between Company and Employee
(as of dates below) is incorporated herein and hereat by reference for all pertinent
purposes and such Employment Agreement and all of its terms and provisions shall be
ancillary to this Agreement and shall be deemed a part hereof and shall be enforceable
hereunder separate and distinct from its enforceability as a separate agreement, e.g., it
shall be enforceable as a separate and distinct agreement as well as being enforceable as a
part hereof and shall be deemed to be ancillary to this Agreement.

     5. Return of Confidential Material. Employee shall turn over to Company all originals and copies
of materials containing Confidential Information in the Employee’s possession, custody, or control
upon request or upon termination of the Employee’s employment with Company. Upon termination of
his/her employment with Company, Employee agrees to attend a termination interview with one of
Company’s executive officers to confirm turnover of such materials and to discuss any questions
Employee may have about his/her continuing obligations under this Agreement.

     6. Inventions. Any and all inventions, products, discoveries, improvements, copyrightable works,
trademarks, service marks, ideas, processes, formulae, methods, designs, techniques or trade
secrets (collectively hereinafter referred to as “Inventions”) made, developed, conceived or
resulting from work performed by Employee (alone or in conjunction with others, during regular
hours of work or otherwise) while Employee is employed by Company and which may be directly or
indirectly useful in, or related to, the business of Company (including ,without limitation,
research and development activities of Company), or which are made using any equipment, facilities,

 

 

Confidential Information, materials, labor, money, time or other resources of Company, shall be
promptly disclosed by Employee to one of Company’s executive officers, and shall be deemed
Confidential Information for purposes of this Agreement, and shall be Company’s exclusive property.
Employee shall, upon Company’s request, execute any documents and perform all such acts and things
which are necessary or advisable in the opinion of Company to cause issuance of patents to,
copyrights for, or otherwise obtain recorded protection of rights to intellectual property for,
Company with respect to Inventions that are to be Company’s property under this Section, or to
transfer to and vest in Company full and exclusive right, title and interest in and to such
Inventions; provided, however, that the expense of securing any such protection of right to
Inventions shall be borne by Company. In addition, Employee shall, at Company’s expense, assist
Company in any proper manner in enforcing any inventions that are to be or become Company’s
property hereunder against infringement by others. Employee shall keep confidential and will hold
for Company’s sole use and benefit any invention that is to be Company’s exclusive property under
this Section for which full recorded protection of right has not been or cannot be obtained.

     7. Non-Interference With Company’s Employees. During Employee’s employment with Company, and for a
period of 18 months immediately following Employee’s termination (voluntary or otherwise), Employee
shall not, directly or indirectly: (a) induce, or aid others to induce, any Company employee to
terminate his or her employment with Company; (b) induce any Company employee to do, or not do, as
the case may be, anything which violates his/her oral or written employment agreement with Company;
(c) hire, attempt to hire, contact or solicit with respect to hiring any employee of Company.
Moreover, in recognition of the status of the compensation and effectiveness of Company employees
as Confidential Information, Employee shall not solicit or aid others to solicit Company employees
for, or offer to them, competitive employment. Additionally, Employee agrees not to interfere with
the business of Company in any manner including, without limitation, inducing any consultant or
independent contractor to terminate or modify such person’s relationship with Company. For
purposes of this paragraph 7, “Employee” shall be deemed to mean agents, servants, representatives
and other individuals having an employer/employee relationship with Company or who had such a
relationship with Company within the 12 months preceding the commencement of the restricted
activities of Employee as stated above.

     8. Consideration For This Agreement. In addition to the employment, or continued employment, of
the Employee by Company, and in addition to the mutual covenants and promises of the parties
contained herein, Company shall, contemporaneous with the execution of this Agreement by Employee,
or within thirty days thereafter, pay to Employee additional and special consideration of a
one-time cash payment of $100.00 as additional and special consideration to support the covenants
and agreements of Employee contained herein. Such $100.00 is paid for both this Agreement and the
Employment Agreement.

     9. Employee’s Certification. Employee HEREBY CERTIFIES THAT:

	 	(A)	 	EMPLOYEE RECEIVED A COPY OF THIS AGREEMENT AND THE EMPLOYMENT
AGREEMENT FOR REVIEW AND STUDY BEFORE HE/SHE WAS ASKED TO EXECUTE THEM;
	 
	 	(B)	 	EMPLOYEE HAS READ SUCH AGREEMENTS CAREFULLY;
	 
	 	(C)	 	EMPLOYEE HAS HAD SUFFICIENT OPPORTUNITY BEFORE HE/SHE EXECUTED
SUCH AGREEMENTS TO ASK QUESTIONS ABOUT NOT ONLY COMPANY, BUT ALSO THE
PROVISIONS OF SUCH AGREEMENTS AND THAT IF HE/SHE ASKED SUCH QUESTIONS HE/SHE
RECEIVED COMPLETE AND SATISFACTORY ANSWERS TO SAME;
	 
	 	(D)	 	EMPLOYEE HAS BEEN AFFORDED THE OPPORTUNITY TO DISCUSS AND
REVIEW THIS AGREEMENT AND THE EMPLOYMENT AGREEMENT WITH AN ATTORNEY OF HIS/HER
CHOICE;

 

 

	 	(E)	 	EMPLOYEE UNDERSTANDS WHAT HIS/HER RIGHTS ARE UNDER THE
AGREEMENTS AS WELL AS HIS/HER OBLIGATIONS, ESPECIALLY THE ANCILLARY COVENANTS;
AND
	 
	 	(F)	 	EMPLOYEE HAS READ AND UNDERSTANDS EACH AND EVERY PROVISION OF
THE AGREEMENTS AND DOES HEREBY ACCEPT AND AGREE TO THE SAME.

     IN WITNESS WHEREOF, Employee herewith affixed his/her hand and Company has caused this
Agreement to be executed by a duly authorized officer, all on the day and year below mentioned.

	 	 	 	 	 
	 	Employee:

 	 
	Date: December 16, 2004	By:  	/s/
Brian Fontana 	 
	 	 	Brian Fontana, an individual 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	Company:

 	 
	Date: December 16, 2004	By:  	/s/
James H. Long 	 
	 	 	James H. Long, 	 
	 	 	President and Chief Executive Officerexv10w1

 

EXHIBIT 10.1

INDUSTRIAL/COMMERCIAL LEASE

THIS INDUSTRIAL/COMMERCIAL LEASE (“Lease”) is entered into as of October 1, 2004, by and between
BOULDER INVESTOR’S, LLC, a Virginia limited liability company (“Landlord”), and HEI, INC., a
Minnesota corporation (“Tenant”).

1. BASIC LEASE TERMS. For purposes of this Lease, the following terms have the following
definitions and meanings:

(a) Landlord: BOULDER INVESTOR’S, LLC, a Virginia limited liability company

(b) Landlord’s Address (For Notices): 12121 Wilshire Blvd., Suite 200, Los Angeles, California
90025, attn: Asset Management, or such other place as Landlord may from time to time designate by
notice to Tenant.

(c) Tenant: HEI, INC., a Minnesota corporation.

(d) Tenant’s Address (For Notices): HEI, Inc., 4801 N. 63rd Street, Boulder, Colorado
80301, attention: Site Manager, and HEI, Inc., 1495 Steiger Lake Lane, Victoria, MN 55386,
attention: President, or such other place as Tenant may from time to time designate by notice to
Landlord.

(e) Intentionally Deleted

(f) Intentionally Deleted

(g) Premises: The real property located at 4801 N. 63rd Street, Boulder, Colorado, as
more particularly described in Exhibit “A”, together with all buildings, improvements and
facilities, now or subsequently located on such real property from time to time, including, without
limitation, the building containing approximately 152,002 rentable square feet (the “Building”).

(h) Intentionally Deleted

(i) Term: Fifteen (15) Lease Years.

(j) Commencement Date: October 1, 2004.

Expiration Date: September 30, 2019.

(k) Intentionally Deleted

(l) Monthly Base Rent:

	 	 	 	 	 
	Lease Year	 	Monthly Rent
	1
	 	$	113,321	 
	2
	 	$	116,720	 
	3
	 	$	120,222	 
	4
	 	$	123,828	 
	5
	 	$	127,543	 
	6
	 	$	131,370	 
	7
	 	$	135,311	 
	8
	 	$	139,370	 
	9
	 	$	143,551	 
	10
	 	$	147,858	 
	11
	 	$	152,293	 
	12
	 	$	156,862	 
	13
	 	$	161,568	 
	14
	 	$	166,415	 
	15
	 	$	171,408	 

 

 

(m) Security Deposit: $1,500,000 (subject to adjustment pursuant to Paragraph 7 below).

(n) Tenant Improvements: As defined in Exhibit “B”.

(o) Tenant Improvement Allowance: As defined in Exhibit “B”.

(p) Permitted Use: General office, light manufacturing and assembly and any other legal use
allowed under current City zoning or other applicable law.

(q) Intentionally Deleted

(r) Broker(s): Studley, Inc.

(s) Intentionally Deleted

(t) Interest Rate: Shall mean the greater of ten percent (10%) per annum or two percent (2%) in
excess of the prime lending or reference rate of Bank of America, N.A., or any successor bank in
effect on the twenty-fifth (25th) day of the calendar month immediately prior to the
event giving rise to the Interest Rate imposition; provided, however, the Interest Rate will in no
event exceed the maximum interest rate permitted to be charged by applicable law.

(u) Exhibits: A (Site Plan), B (Work Letter) and C (Estoppel Certificate), which Exhibits are
attached to this Lease and incorporated herein by this reference.

This Paragraph 1 represents a summary of the basic terms and definitions of this Lease. In the
event of any inconsistency between the terms contained in this Paragraph 1 and any specific
provision of this Lease, the terms of the more specific provision shall prevail.

2. PREMISES.

(a) Premises. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the
Premises.

(b) Mutual Covenants. Landlord and Tenant agree that the letting and hiring of the Premises is
upon and subject to the terms, covenants and conditions contained in this Lease and each party
covenants as a material part of the consideration for this Lease to keep and perform their
respective obligations under this Lease.

3. TERM. The term of this Lease (“Term”) will be for the period designated in Subparagraph 1(i),
commencing on the Commencement Date, and ending on the last day of the month in which the
expiration of such period occurs, including any extensions of the Term pursuant to any provision of
this Lease or written agreement of the parties. Each consecutive twelve (12) month period of the
Term of this Lease, commencing on the Commencement Date, will be referred to herein as a “Lease
Year”; provided, however, that if the Commencement Date is not the first day of a calendar month,
then the first Lease Year shall begin on the Commencement Date and shall end on the last day of the
calendar month in which the first anniversary of the Lease Commencement Date occurs.

4. POSSESSION.

(a) Delivery of Possession. Landlord and Tenant acknowledge that Tenant is in possession of the
Premises as of the date hereof pursuant to the terms of a lease between Tenant and Landlord’s
predecessor in interest with respect to the Premises.

-2-

 

(b) Condition of Premises. By taking possession of the Premises, Tenant will be deemed to have
accepted the Premises in its “as is” “where is” condition on the date of delivery of possession and
to have acknowledged that neither Landlord nor any agent of Landlord has made any representation or
warranty with respect to the Premises or any portions thereof or with respect to the suitability of
same for the conduct of Tenant’s business.

5. RENT.

(a) Monthly Base Rent. Tenant agrees to pay Landlord the Monthly Base Rent for the Premises
(subject to adjustment as hereinafter provided) in advance on the first day of each calendar month
during the Term without prior notice or demand, except that Tenant agrees to pay the Monthly Base
Rent for the first month of the Term directly to Landlord on the Commencement Date. If the Term of
this Lease commences or ends on a day other than the first day of a calendar month, then the rent
for such period will be prorated in the proportion that the number of days this Lease is in effect
during such period bears to the number of days in such month. All rent must be paid to Landlord,
without any deduction or offset, in lawful money of the United States of America, at the address
designated by Landlord or to such other person or at such other place as Landlord may from time to
time designate in writing.

(b) Additional Rent. All amounts and charges to be paid by Tenant hereunder, including, without
limitation, insurance, and repairs for which Tenant is responsible pursuant to Subparagraph 14(b)
below, will be considered additional rent for purposes of this Lease, and the word “rent” as used
in this Lease will include all such additional rent unless the context specifically or clearly
implies that only Monthly Base Rent is intended.

(c) Late Payments. Late payments of Monthly Base Rent and/or any item of additional rent will be
subject to interest and a late charge as provided in Subparagraph 22(f) below.

6. REAL PROPERTY TAXES.

(a) Real Property Taxes. Tenant shall pay all real property taxes on the Premises during the term
of this Lease. Tenant agrees to pay to the taxing authority entitled thereto the total real
property taxes due. Any of said payments to be made directly to the taxing authority shall be made
at least fifteen (15) days prior to the delinquency date established by the taxing authority, and
Tenant shall, concurrently with such payment, deliver evidence of such payment to Landlord.
Failure of Tenant to pay said real property taxes as and when herein specified shall, in addition
to all other rights and remedies of Landlord hereunder, subject Tenant to any fine, penalty,
interest, or cost which Landlord may incur as a result thereof. Tenant shall, within thirty (30)
days after demand, reimburse Landlord for any such fine, penalty, interest, or cost, together with
interest thereon at the Interest Rate.

(b) Definition of “Real Property Tax.” “Real property tax” means all taxes, assessments, excises,
levies, fees and charges (and any tax, assessment, excise, levy, fee or charge levied wholly or
partly in lieu thereof or as a substitute therefor or as an addition thereto) of every kind and
description, general or special, ordinary or extraordinary, foreseen or unforeseen, secured or
unsecured, whether or not now customary or within the contemplation of Landlord and Tenant, that
are levied, assessed, charged, confirmed or imposed by any public or government authority on or
against, or otherwise with respect to, the Premises or any part thereof or any personal property
used in connection with the Premises. “Real property tax” does not, however, include Landlord’s
federal or state income, franchise, inheritance or estate taxes.

(c) Impounds for Real Property Taxes. If Tenant is more than ten (10) days late in the payment of
real property taxes more than two (2) times during the term of this Lease, Tenant shall pay
Landlord a sum equal to one-twelfth (1/12) of the annual real property taxes payable by Tenant
under this Lease, together with each payment of Monthly Base Rent. Landlord shall hold such
payments in a non-interest bearing impound account. If unknown, Landlord shall reasonably estimate
the amount of real property taxes when due. Tenant shall pay any deficiency of funds in the
impound account to Landlord upon written request. If Tenant defaults under this Lease, Landlord
may apply any funds in the impound

-3-

 

account to any obligation then due under this Lease.

7. SECURITY DEPOSIT. As described in Section 43 herein, funds in the amount indicated in Section
1.1(m) herein shall be credited to Tenant’s Security Deposit at the closing of the purchase of the
Premises by Landlord; therefore, Tenant has no obligation to deposit any funds to Landlord for the
Security Deposit in conjunction with the commencement of this Lease. The Security Deposit will be
held by Landlord in an interest-bearing, trust account with LaSalle Bank, National Association(or
any successor thereto), as security for the full and faithful performance by Tenant of all of the
terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Term
hereof. If Tenant fully and faithfully performs its obligations under this Lease, including,
without limitation, surrendering the Premises upon the expiration or sooner termination of this
Lease in compliance with Subparagraph 11(a) below, the Security Deposit (and interest earned
thereon) or any balance thereof will be returned to Tenant (or, at Landlord’s option, to the last
assignee of Tenant’s interest hereunder) within thirty (30) days following the expiration of the
Lease Term, provided, however, Landlord may retain the Security Deposit (and interest earned
thereon) until such time as any outstanding rent or additional rent amount has been determined and
paid in full. The Security Deposit (and interest earned thereon) is not, and may not be construed
by Tenant to constitute, rent for the last month or any portion thereof. If Tenant defaults with
respect to any provisions of this Lease including, but not limited to, the provisions relating to
the payment of rent or additional rent, Landlord may (but will not be required to) use, apply or
retain all or any part of the Security Deposit (and interest earned thereon) for the payment of any
rent or any other sum in default, or for the payment of any other amount which Landlord may spend
or become obligated to spend by reason of Tenant’s default or to compensate Landlord for any loss
or damage which Landlord may suffer by reason of Tenant’s default. If any portion of the Security
Deposit is so used or applied, Tenant agrees, within ten (10) business days after Landlord’s
written demand therefor, to deposit cash with Landlord in an amount sufficient to restore the
Security Deposit to its account balance immediately prior to Tenant’s default and Tenant’s failure
to do so shall constitute a default under this Lease. Should Landlord sell its interest in the
Premises during the Term hereof and deposit with the purchaser thereof the then unappropriated
Security Deposit (and interest earned thereon), Landlord will be discharged from any further
liability with respect to such Security Deposit.

Notwithstanding the foregoing, if Tenant is not then in default under this Lease as of the date
that (a) Tenant has completed four (4) consecutive quarters of positive EBITDA (as defined below),
such profitability to be determined in accordance with GAAP (as defined below) and verified by an
independent third party accountant approved by Landlord, and (b) Tenant provides Landlord with the
greater of (i) 100,000 shares of Tenant’s common stock or (ii) shares representing 0.11% of all of
Tenant’s then outstanding stock, then the Security Deposit amount required hereunder shall reduce
to One Hundred Fifty Thousand Dollars ($150,000) (the “Reduced Security Deposit Amount”), and
Landlord shall promptly return to Tenant the balance of the Security Deposit (and interest earned
thereon) which exceeds the Reduced Security Deposit Amount upon Tenant’s request therefor;
provided, however, that in no event shall any such return be construed as an admission by Landlord
that Tenant has performed all of its covenants and obligations hereunder. As used in this Lease,
EBITDA means Tenant’s net income, excluding any deductions for interest, taxes, depreciation or
amortization. As used in this Lease, “GAAP” means generally accepted accounting principles as in
effect in the United States of America from time to time.

8. USE.

(a) Tenant’s Use of the Premises. The Premises may be used for the use or uses set forth in
Subparagraph 1(p) only, and Tenant will not use or permit the Premises to be used for any other
purpose without the prior written consent of Landlord, which consent Landlord may not unreasonably
withhold.

(b) Compliance. At Tenant’s sole cost and expense, Tenant agrees to procure, maintain and hold
available for Landlord’s inspection, all governmental licenses and permits required for the proper
and lawful conduct of Tenant’s business from the Premises, if any. Tenant agrees not to use, alter
or occupy the Premises or allow the Premises to be used, altered or occupied in violation of, and
Tenant, at its sole cost and expense, agrees to use and occupy the Premises and cause the Premises
to be used and

-4-

 

occupied in compliance with: (i) any and all laws, statutes, zoning restrictions, ordinances,
rules, regulations, orders and rulings now or hereafter in force and any requirements of any
insurer, insurance authority or duly constituted public authority having jurisdiction over the
Premises now or hereafter in force, (ii) the requirements of the American Insurance Association
(formerly, the National Board of Fire Underwriters) and any other similar body, (iii) the
Certificate of Occupancy issued for the Building, and (iv) any recorded covenants, conditions and
restrictions and similar regulatory agreements, if any, which affect the use, occupation or
alteration of the Building or the Premises. Tenant agrees not to allow the Premises to be used for
any unlawful or unreasonably objectionable purpose. Tenant agrees not to cause, maintain or permit
any nuisance or waste in, on, under or about the Premises.

(c) Hazardous Materials.

     (i) Except for (1) ordinary and general office supplies typically used in the ordinary course
of business, such as copier toner, liquid paper, glue, ink and common household and general
business office cleaning materials (some or all of which may constitute “Hazardous Materials” as
defined in this Lease), in ordinary quantities, and (2) those Hazardous Materials that are
necessary for Tenant’s business and are expressly approved by Landlord in writing, provided that
such usage and storage is only to the extent of the quantities as expressly approved by Landlord,
Tenant agrees not to cause or permit any Hazardous Materials to be brought upon, stored, used,
handled, generated, released or disposed of on, in, under or about any portion of the Premises by
Tenant, its agents, employees, subtenants, assignees, licensees, contractors or invitees
(collectively, “Tenant’s Parties”), without the prior written consent of Landlord, which consent
Landlord may not unreasonably withhold if integral to Tenant’s business. Upon the expiration or
earlier termination of this Lease, Tenant agrees to promptly remove from the Premises, at its sole
cost and expense, any and all Hazardous Materials, including any equipment or systems containing
Hazardous Materials which are installed, brought upon, stored, used, generated or released upon,
in, under or about the Premises or any portion thereof by Tenant or any of Tenant’s Parties.
Landlord reserves the right, during the last one hundred eighty (180) days of the Term, to have an
experienced and qualified environmental consultant perform an environmental inspection of the
Premises to determine the existence of any Hazardous Materials for which Tenant is responsible for
their removal. If Landlord’s inspection reveals or confirms the existence of any such Hazardous
Materials (except for Hazardous Materials that have been previously approved by Landlord in writing
and such Hazardous Materials have been used, handled, stored and disposed of in accordance with all
applicable Environmental Laws) then Tenant shall be responsible for the cost of such inspection; in
all other instances, Landlord shall be responsible for the cost of such inspection. To the fullest
extent permitted by law, Tenant agrees to promptly indemnify, protect, defend and hold harmless
Landlord and Landlord’s members, partners, officers, directors, employees, agents, mortgagees,
successors and assigns (collectively, “Landlord Indemnified Parties”) from and against any and all
claims, damages, judgments, suits, causes of action, losses, liabilities, penalties, fines,
expenses and costs (including, without limitation, clean-up, removal, remediation and restoration
costs, sums paid in settlement of claims, legal fees, consultant fees and expert fees and court
costs) which arise or result from the presence of Hazardous Materials on, in, under or about the
Premises and which are caused or permitted by Tenant or any of Tenant’s Parties. Tenant agrees to
promptly notify Landlord of any release of Hazardous Materials at the Premises which Tenant becomes
aware of during the Term of this Lease, whether caused by Tenant or any other persons or entities.
In the event of any release of Hazardous Materials caused or permitted by Tenant or any of Tenant’s
Parties, Landlord shall have the right, but not the obligation, to cause Tenant to immediately take
all steps Landlord deems necessary or appropriate to remediate such release and prevent any similar
future release to the satisfaction of Landlord and Landlord’s mortgagee(s).

     (ii) As used in this Lease, “Hazardous Material” means all or any of the following: (1)
substances, materials, compounds, wastes, products, emissions and vapors that are defined or listed
in, regulated by, or otherwise classified pursuant to, any applicable Environmental Laws, including
any so defined, listed, regulated or classified as “hazardous substances”, “hazardous materials”,
“hazardous wastes”, “toxic substances”, “pollutants”, “contaminants”, or any other formulation
intended to regulate, define, list or classify substances by reason of deleterious, harmful or
dangerous properties; (2) waste oil, oil, petroleum or petroleum derived substances, natural gas,
natural gas liquids or synthetic gas and

-5-

 

drilling fluids, produced waters and other wastes associated with the exploration, development or
production of crude oil, natural gas or geothermal resources; (3) any flammable substances or
explosives or any radioactive materials; (4) asbestos in any form; (5) electrical or hydraulic
equipment which contains any oil or dielectric fluid containing polychlorinated biphenyls; (6)
radon; or (7) urea formaldehyde. As used in this Lease, “Environmental Laws” means any federal,
state, or local law, ordinance or regulation or any court judgment or order of any federal, state
or local agency or regulatory body applicable to Tenant or to the Premises relating to industrial
hygiene or to environmental or unsafe conditions including, but not limited to, those relating to
the generation, manufacture, storage, handling, transportation, disposal, release, emission or
discharge of Hazardous Material, those in connection with the construction, fuel supply, power
generation and transmission, waste disposal or any other operations or processes relating to any of
the Premises, and those relating to the atmosphere, soil, surface and ground water, wetlands,
stream sediments and vegetation on, under, in or about the Premises. “Environmental Laws” also
shall include, but not be limited to, the Comprehensive Environmental Response, Compensation and
Liability Act, the Hazardous Materials Transportation Act, the Resource Conservation and Recovery
Act, the Solid Waste Disposal Act, the Clean Water Act, the Clean Air Act, the Toxic Substance
Control Act, the Safe Drinking Water Act and the Occupational Safety and Health Act, and all
regulations adopted in respect to the foregoing laws.

     (iii) Landlord and Tenant acknowledge that the Agreement of Purchase and Sale Agreement and
Joint Escrow Instructions dated as of May 27, 2004 by and between Landlord (as successor in
interest to Tenant), as buyer, and Eastside Properties, LLC, a Colorado limited liability company,
and Byron R. Chrisman, an individual, as seller (collectively, “Seller”), requires Seller to pursue
a Voluntary Cleanup Plan (as described in the Purchase Agreement) to the point of receiving a No
Further Action Letter from the Colorado Department of Health & Environment which is projected to
occur prior to December 31, 2006. Landlord shall receive a personal Guaranty from Byron R.
Chrisman for Seller’s Voluntary Cleanup obligations pursuant to the Purchase Agreement.

     (iv) The provisions of this Subparagraph 8(c) shall survive the expiration or earlier
termination of this Lease.

9. NOTICES. Any notice required or permitted to be given hereunder must be in writing and may be
given by personal delivery (including delivery by overnight courier or an express mailing service)
or by mail, if sent by registered or certified mail. Notices to Tenant shall be sufficient if
delivered to Tenant at the addresses designated in Subparagraph 1(d) and notices to Landlord shall
be sufficient if delivered to Landlord at the address designated in Subparagraph 1(b). Either
party may specify a different address for notice purposes by written notice to the other.

10. BROKERS. The parties acknowledge that the broker(s) who were retained by the parties in
connection with this Lease are stated in Subparagraph 1(r). Each party represents and warrants to
the other, that, to its knowledge, no other broker, agent or finder (a) negotiated or was
instrumental in negotiating or consummating this Lease on its behalf, and (b) is or might be
entitled to a commission or compensation in connection with this Lease. Landlord and Tenant each
agree to promptly indemnify, protect, defend and hold harmless the other from and against any and
all claims, damages, judgments, suits, causes of action, losses, liabilities, penalties, fines,
expenses and costs (including legal fees and court costs) resulting from any breach by the
indemnifying party of the foregoing representation, including, without limitation, any claims that
may be asserted by any broker, agent or finder undisclosed by the indemnifying party. The
foregoing mutual indemnity shall survive the expiration or earlier termination of this Lease.

11. SURRENDER; HOLDING OVER.

(a) Surrender. The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation
thereof, shall not constitute a merger, and shall, at the option of Landlord, operate as an
assignment to Landlord of any or all subleases or subtenancies. Upon the expiration or earlier
termination of this Lease, Tenant agrees to peaceably surrender the Premises to Landlord broom
clean and, in the case of all warehouse floors, scrubbed clean (to remove all oil, grease and other
debris) and in a state of good

-6-

 

order, repair and condition, ordinary wear and tear and casualty damage (if this Lease is
terminated as a result thereof pursuant to Paragraph 20) excepted, with all of Tenant’s personal
property and Alterations (as defined in Paragraph 13) removed from the Premises to the extent
required under Paragraph 13 and all damage caused by such removal repaired as required by Paragraph
13. In addition, unless otherwise agreed to in writing by Landlord, upon the expiration or earlier
termination of this Lease, Tenant shall, at Tenant’s sole cost and expense, (i) remove all computer
and telephone wiring and cabling installed in the Premises by or for Tenant and (ii) repair any
damage caused by such removal. If any such wiring and/or cabling is not so removed pursuant to
this Subparagraph 11(a), then at Landlord’s option, either such wiring and/or cabling shall become
the property of Landlord (without payment by Landlord) or Landlord may remove such wiring and/or
cabling at Tenant’s expense (without limiting Landlord’s other remedies available under this Lease
or applicable law). At least sixty (60) days prior to the date Tenant is to actually surrender the
Premises to Landlord, Landlord shall notify Tenant in writing as to which Tenant Improvements and
Alterations are to be removed by Tenant, as well as any repairs Tenant is to make upon surrender of
the Premises; provided, however, Tenant shall not be required to remove any improvements in the
Premises existing as of the Commencement Date or with respect to which Landlord has elected that
Tenant shall not be required to remove under Subparagraph 13(e). The delivery of keys to any
employee of Landlord or to Landlord’s agent or any employee thereof alone will not be sufficient to
constitute a termination of this Lease or a surrender of the Premises.

(b) Holding Over. Tenant will not be permitted to hold over possession of the Premises after the
expiration or earlier termination of the Term without the express written consent of Landlord,
which consent Landlord may withhold in its sole and absolute discretion. If Tenant holds over
after the expiration or earlier termination of the Term, Landlord may, at its option, treat Tenant
as a tenant at sufferance only, and such continued occupancy by Tenant shall be subject to all of
the terms, covenants and conditions of this Lease, so far as applicable, except that beginning on
the date that is thirty (30) days after the holdover period has commenced, the Monthly Base Rent
for any such holdover period shall be increased to be equal to the greater of (i) one hundred fifty
percent (150%) of the Monthly Base Rent in effect under this Lease immediately prior to such
holdover, or (ii) the then current fair market rental rate for the Premises, as reasonably
determined by Landlord, in either event prorated on a monthly basis; provided, however, holdover
rent for the first thirty (30) days of the holdover will not be prorated and a minimum of a full
month’s worth of holdover rent shall be due, whether Tenant holds over one (1) day or all thirty
(30) days. Acceptance by Landlord of rent after such expiration or earlier termination will not
result in a renewal of this Lease. The foregoing provisions of this Paragraph 11 are in addition
to and do not affect Landlord’s right of re-entry or any rights of Landlord under this Lease or as
otherwise provided by law. If Tenant fails to surrender the Premises upon the expiration of this
Lease in accordance with the terms of this Paragraph 11 despite demand to do so by Landlord, Tenant
agrees to promptly indemnify, protect, defend and hold Landlord harmless from all claims, damages,
judgments, suits, causes of action, losses, liabilities, penalties, fines, expenses and costs
(including legal fees and costs), including, without limitation, costs and expenses incurred by
Landlord in returning the Premises to the condition in which Tenant was to surrender it and claims
made by any succeeding tenant founded on or resulting from Tenant’s failure to surrender the
Premises. The provisions of this Subparagraph 11(b) will survive the expiration or earlier
termination of this Lease.

12. TAXES ON TENANT’S PROPERTY. Tenant agrees to pay before delinquency, all taxes and assessments
(real and personal) levied against (a) any personal property or trade fixtures placed by Tenant in
or about the Premises (including any increase in the assessed value of the Premises based upon the
value of any such personal property or trade fixtures); and (b) any Tenant Improvements or
Alterations in the Premises (whether installed and/or paid for by Landlord or Tenant) to the extent
such items are assessed at a valuation higher than the valuation at which tenant improvements
conforming to Landlord’s building standard tenant improvements are assessed. If any such taxes or
assessments are levied against Landlord or Landlord’s property, Landlord may, after written notice
to Tenant (and under proper protest if requested by Tenant) pay such taxes and assessments, in
which event Tenant agrees to reimburse Landlord all amounts paid by Landlord within ten (10)
business days after demand by Landlord; provided, however, Tenant, at its sole cost and expense,
will have the right, with Landlord’s cooperation, to bring suit in any court of competent
jurisdiction to recover the amount of any such taxes and assessments so paid under protest.

-7-

 

13. ALTERATIONS. After installation of the initial Tenant Improvements for the Premises pursuant
to Exhibit “B”, Tenant may, at its sole cost and expense, make alterations, additions,
improvements and decorations to the Premises as well as any repairs under Paragraph 14 below
(collectively, “Alterations”), subject to and upon the following terms and conditions:

(a) Intentionally Deleted.

(b) Landlord’s Approval. Before proceeding with any Alterations, Tenant must first obtain
Landlord’s written approval of the plans, specifications and working drawings for such Alterations,
which approval Landlord will not unreasonably withhold or delay; provided, however, Landlord’s
prior approval will not be required for any such Alterations which will not (i) affect the
Building’s structure, equipment, services or systems, or the proper functioning thereof, or
Landlord’s access thereto; (ii) affect the outside appearance, character or use of the Building;
(iii) in the reasonable opinion of Landlord, lessen the value of the Building or the Premises; (iv)
violate or require a change in any occupancy certificate applicable to the Premises or the
Building; and (v) cost more than Fifty Thousand Dollars ($50,000.00) as long as (A) Tenant delivers
to Landlord notice and a copy of any final plans, specifications and working drawings for any such
Alterations at least ten (10) business days prior to commencement of the work thereof, and (B) the
other conditions of this Paragraph 13 are satisfied, including, without limitation, conforming to
Landlord’s rules, regulations and insurance requirements which govern contractors. Landlord’s
approval of plans, specifications and/or working drawings for Alterations will not create any
responsibility or liability on the part of Landlord for their completeness, design sufficiency, or
compliance with applicable permits, laws, rules and regulations of governmental agencies or
authorities.

(c) Contractors. Alterations may be made or installed only by contractors and subcontractors which
have been approved by Landlord, which approval Landlord will not unreasonably withhold or delay.
Before proceeding with any Alterations, Tenant agrees to provide Landlord with ten (10) business
days prior written notice and Tenant’s contractors must obtain and maintain, on behalf of Tenant
and at Tenant’s sole cost and expense: (i) all necessary governmental permits and approvals for
the commencement and completion of such Alterations; and (ii) if reasonably requested by Landlord,
a completion and lien indemnity bond, or other surety, reasonably satisfactory to Landlord for such
Alterations. Throughout the performance of any Alterations, Tenant agrees to obtain, or cause its
contractors to obtain, workers compensation insurance and general liability insurance in compliance
with the provisions of Paragraph 19 of this Lease.

(d) Manner of Performance. All Alterations must be performed: (i) in accordance with the approved
plans, specifications and working drawings; (ii) in a lien-free and first-class and workmanlike
manner; and (iii) in compliance with all applicable permits, laws, statutes, ordinances, rules,
regulations, orders and rulings now or hereafter in effect and imposed by any governmental agencies
and authorities which assert jurisdiction.

(e) Ownership. If Tenant desires permission to leave a specific Alteration in the Premises at the
expiration or earlier termination of this Lease, Tenant shall request such permission from Landlord
in writing at the time Tenant requests approval for such Alteration and Landlord shall advise
Tenant in writing at the time of Landlord’s approval of the subject Alteration whether Landlord
will require the removal of the Alteration at the expiration or earlier termination of this Lease.
Tenant, at its sole cost and expense, agrees to remove the identified Alterations (as well as any
Alterations which Landlord did not have the opportunity to approve as provided in this Paragraph
13) on or before the expiration or earlier termination of this Lease and repair any damage to the
Premises caused by such removal (or, at Landlord’s option, Tenant agrees to pay to Landlord all of
Landlord’s costs of such removal and repair).

(f) Plan Review. Tenant agrees to pay Landlord, as additional rent, the reasonable costs of
necessary professional services and costs for general conditions of Landlord’s third party
consultants if utilized by Landlord (but not Landlord’s “in-house” personnel) for review of all
plans, specifications and working drawings for any Alterations, within ten (10) business days after
Tenant’s receipt of invoices either from Landlord or such consultants.

-8-

 

(g) Personal Property. All articles of personal property owned by Tenant or installed by Tenant at
its expense in the Premises (including Tenant’s business and trade fixtures, furniture, movable
partitions and equipment) will be and remain the property of Tenant, and must be removed by Tenant
from the Premises, at Tenant’s sole cost and expense, on or before the expiration or earlier
termination of this Lease. Tenant agrees to repair any damage caused by such removal at its cost
on or before the expiration or earlier termination of this Lease.

(h) Removal of Alterations. If Tenant fails to remove by the expiration or earlier termination of
this Lease all of its personal property, or any Alterations identified by Landlord for removal,
Landlord may, at its option (without liability to Tenant for loss thereof) treat such personal
property and/or Alterations as abandoned and, at Tenant’s sole cost and expense, and in addition to
Landlord’s other rights and remedies under this Lease, at law or in equity: (a) remove and store
such items; and/or (b) upon ten (10) business days prior notice to Tenant, sell, discard or
otherwise dispose of all or any such items at private or public sale for such price as Landlord may
obtain or by other commercially reasonable means. Tenant shall be liable for all costs of
disposition of Tenant’s abandoned property and Landlord shall have no liability to Tenant with
respect to any such abandoned property. Landlord agrees to apply the proceeds of any sale of any
such property to any amounts due to Landlord under this Lease from Tenant (including Landlord’s
legal fees and other costs incurred in the removal, storage and/or sale of such items), with any
remainder to be paid to Tenant.

14. REPAIRS.

(a) Tenant’s Obligations. Tenant agrees to keep, maintain and preserve the Premises (except only
the parts for which Landlord is expressly made responsible under this Lease) in good condition and
repair and, when and if needed, at Tenant’s sole cost and expense, to make all repairs to the
Premises and every part thereof (except the parts for which Landlord is expressly made responsible
under this Lease) . Tenant shall enter into and maintain in effect preventive maintenance
contracts with respect to (i) HVAC equipment, (ii) boiler, and pressure vessels, (iii) fire
extinguishing systems, including fire alarm and/or smoke detection, (iv) landscaping and irrigation
systems, (v) clarifiers, and (vi) any other equipment, if reasonably required by Landlord. All
such service contracts shall be subject to Landlord’s prior written approval, which approval shall
not be unreasonably withheld, conditioned or delayed. Landlord shall approve or disapprove of each
such service contract within ten (10) business days after receipt by Landlord; provided that
Landlord shall be deemed to have waived its right to approve any service contract that Landlord
fails to approve or disapprove within such ten (10) business day period. Tenant shall perform its
obligations under this Subparagraph 14(a) with diligence and consistent with good building
management, in accordance with Paragraph 13 above. Tenant agrees to cause any mechanics’ liens or
other liens arising as a result of work performed by Tenant or at Tenant’s direction to be
eliminated as provided in Paragraph 15 below. Except as otherwise provided in Subparagraph 14(c)
below, Landlord has no obligation to alter, remodel, improve, repair, decorate or paint any portion
of the Premises.

(b) Tenant’s Failure to Repair. If at any time following ten (10) business days from the date on
which Landlord makes a written demand on Tenant to effect such repair and maintenance (or longer
period if Tenant has agreed to undertake the repairs and such repairs by their nature will take
longer than ten (10) days), Landlord may enter upon the Premises and make such repairs and/or
maintenance, and upon completion thereof, Tenant agrees to pay to Landlord as additional rent,
Landlord’s costs for making such repairs within ten (10) business days of receipt from Landlord of
a written itemized bill therefor. Any amounts not reimbursed by Tenant within such ten (10)
business day period will bear interest at the Interest Rate until paid by Tenant.

(c) Landlord’s Obligation to Repair. Landlord shall maintain and repair only the foundations and
the exterior walls (which shall not include windows, glass or plate glass, doors, special fronts,
entries, or the interior surfaces of exterior walls, all of which shall be the responsibility of
Tenant) of the Building and keep them in good condition, reasonable wear and tear excepted. Tenant
shall give Landlord written notice of the need for any maintenance or repair for which Landlord is
responsible, after which Landlord shall have a reasonable opportunity to perform the maintenance or
make the repair, and Landlord shall not be liable for any failure to do so unless such failure
continues for an unreasonable time after Tenant

-9-

 

gives such written notice to Landlord. Tenant waives any right to perform maintenance or make
repairs for which Landlord is responsible at Landlord’s expense. Landlord’s liability with respect
to any maintenance or repair for which Landlord is responsible shall be limited to the cost of the
maintenance or repair. Any damage to any part of the Building for which Landlord is responsible
that is caused by Tenant or any agent, officer, employee, contractor, licensee or invitee of Tenant
shall be repaired by Landlord at Tenant’s expense and Tenant shall pay to Landlord, upon billing by
Landlord, as additional rent, the cost of such repairs incurred by Landlord.

15. LIENS. Tenant agrees not to permit any mechanic’s, materialmen’s or other liens to be filed
against all or any part of the Premises, nor against Tenant’s leasehold interest in the Premises,
by reason of or in connection with any repairs, alterations, improvements or other work contracted
for or undertaken by Tenant or any other act or omission of Tenant or Tenant’s agents, employees,
contractors, licensees or invitees. At Landlord’s request, Tenant agrees to provide Landlord with
enforceable, conditional and final lien releases (or other evidence reasonably requested by
Landlord to demonstrate protection from liens) from all persons furnishing labor and/or materials
at the Premises. Landlord will have the right at all reasonable times to post on the Premises and
record any notices of non-responsibility which it deems necessary for protection from such liens.
If any such liens are filed, Tenant will, at its sole cost, promptly cause such liens to be
released of record or bonded so that it no longer affects title to the Premises. If Tenant fails
to cause any such liens to be so released or bonded within four (4) business days after filing
thereof, such failure will be deemed a material breach by Tenant under this Lease without the
benefit of any additional notice or cure period described in Paragraph 22 below, and Landlord may,
without waiving its rights and remedies based on such breach, and without releasing Tenant from any
of its obligations, cause such liens to be released by any means it shall deem proper, including
payment in satisfaction of the claims giving rise to such liens. Tenant agrees to pay to Landlord
within ten (10) business days after receipt of invoice from Landlord, any sum paid by Landlord to
remove such liens, together with interest at the Interest Rate from the date of such payment by
Landlord.

16. ENTRY BY LANDLORD. Landlord and its employees and agents will at all times have the right to
enter the Premises to inspect the same, to show the Premises to prospective purchasers or tenants,
to post notices of nonresponsibility, and/or to repair the Premises as permitted or required by
this Lease. In exercising such entry rights, Landlord will endeavor to minimize, as reasonably
practicable, the interference with Tenant’s business, and will provide Tenant with reasonable
advance notice of any such entry (except in emergency situations). Landlord may, in order to carry
out such purposes, erect scaffolding and other necessary structures where reasonably required by
the character of the work to be performed. Landlord will have the right to use any and all means
which Landlord may reasonably deem proper to open said doors in an emergency in order to obtain
entry to the Premises. Any entry to the Premises obtained by Landlord by any of said means, or
otherwise, will not be construed or deemed to be a forcible or unlawful entry into the Premises, or
an eviction of Tenant from the Premises. Landlord will not be liable to Tenant for any damages or
losses for any entry by Landlord; provided, however, that Landlord shall be liable to Tenant for
any damage to Tenant’s personal property that results solely from the gross negligence or willful
misconduct of Landlord.

17. UTILITIES AND SERVICES. Tenant shall arrange and pay for all water, gas, heat, light, power,
trash disposal and other utilities and services supplied to the Premises together with any taxes
thereon. Tenant shall arrange and pay for janitorial services and any telephone and other
telecommunications services provided to the Premises. Provided, however, that Landlord may, at its
option, at any time and from time to time during the Term, upon at least thirty (30) days’ prior
notice to Tenant assume responsibility for arranging for trash disposal services for the Premises.
Landlord will not be liable to Tenant for any failure to furnish any of the foregoing utilities and
services to the Premises for any cause whatsoever. In addition, in the event of any stoppage or
interruption of services or utilities, Tenant shall not be entitled to any abatement or reduction
of rent, no eviction of Tenant will result from such failure and Tenant will not be relieved from
the performance of any covenant or agreement in this Lease because of such failure. In the event
of any failure, stoppage or interruption thereof, Tenant agrees to diligently attempt to resume
service promptly.

-10-

 

18. ASSUMPTION OF RISK AND INDEMNIFICATION.

(a) Assumption of Risk. Tenant, as a material part of the consideration to Landlord, hereby agrees
that neither Landlord nor any Landlord Indemnified Parties (as defined in Subparagraph 8(c) above)
will be liable to Tenant for, and Tenant expressly assumes the risk of and waives any and all
claims it may have against Landlord or any Landlord Indemnified Parties with respect to, (i) any
and all damage to property or injury to persons in, upon or about the Building or the Premises
resulting from any act or omission (except for the grossly negligent or intentionally wrongful act
or omission) of Landlord, (ii) any such damage caused by other persons in or about the Building or
the Premises, or caused by quasi-public work, (iii) any loss of or damage to property by theft or
otherwise, or (iv) any injury or damage to persons or property resulting from any casualty,
explosion, falling plaster or other masonry or glass, steam, gas, electricity, water or rain which
may leak from any part of the Building or any other portion of the Premises or from the pipes,
appliances or plumbing works therein or from the roof, street or subsurface or from any other
place, or resulting from dampness. Notwithstanding anything to the contrary contained in this
Lease, neither Landlord nor any Landlord Indemnified Parties will be liable for consequential
damages arising out of any loss of the use of the Premises or any equipment or facilities therein
by Tenant or any Tenant’s Parties or for interference with light or other incorporeal
hereditaments. Tenant agrees to give prompt notice to Landlord in case of fire or accidents at the
Premises, or of defects in the Building or in the fixtures or equipment.

(b) Indemnification.

     (i) Tenant will be liable for, and agrees, to the maximum extent permissible under applicable
law, to promptly indemnify, protect, defend and hold harmless Landlord and all Landlord Indemnified
Parties, from and against, any and all claims, damages, judgments, suits, causes of action, losses,
liabilities, penalties, fines, expenses and costs, including legal fees and court costs
(collectively, “Tenan Indemnified Claims”), arising or resulting from (A) any act or omission of
Tenant or any Tenant’s Parties (as defined in Subparagraph 8(c) above); (B) the use of the Premises
and conduct of Tenant’s business by Tenant or any Tenant’s Parties, or any other activity, work or
thing done, permitted or suffered by Tenant or any Tenant’s Parties, in or about the Premises;
and/or (C) any default by Tenant of any obligations on Tenant’s part to be performed under the
terms of this Lease. In case any action or proceeding is brought against Landlord or any Landlord
Indemnified Parties by reason of any such Tenant Indemnified Claims, Tenant, upon notice from
Landlord, agrees to promptly defend the same at Tenant’s sole cost and expense by counsel approved
in writing by Landlord, which approval Landlord will not unreasonably withhold.

     (ii) Landlord will be liable for, and agrees, to the maximum extent permissible under
applicable law to promptly indemnify, protect, defend and hold harmless Tenant and all Tenant
Parties, from and against any and all claims, damages, judgments, suits, causes of action, losses,
liabilities, penalties, fines, expenses and costs, including legal fees and court costs
(collectively, “Landlord Indemnified Claims”) to the extent (A) such injury, illness, death or
damage is caused by the gross negligence or willful misconduct of Landlord or any members,
partners, officers, directors, agents, or employees of Landlord and (B) such Landlord Indemnified
Claim is not included within the risks insured against under the insurance that Tenant is required
to carry under Paragraph 19 below. In case any action or proceeding is brought against Tenant or
any Tenant Parties by reason of any such Landlord Indemnified Claims, Landlord, upon notice from
Tenant, agrees to promptly defend the same at Landlord’s sole cost and expense by counsel approved
in writing by Tenant, which approval Tenant will not unreasonably withhold. Notwithstanding
anything to the contrary set forth in this Subparagraph 18(b) or elsewhere in this Lease, in no
event shall Landlord be liable for any consequential or remote damages, or for loss of or damage to
artwork, currency, jewelry, bullion, securities or other property at the Premises, not in the
nature of ordinary fixtures, furnishings, equipment and other property used in general office,
light manufacturing and assembly activities and functions.

(c) Survival; No Release of Insurers. Tenant’s indemnification obligations under Subparagraph
18(b) will survive the expiration or earlier termination of this Lease. Tenant’s covenants,
agreements and indemnification obligation in Subparagraphs 18(a) and 18(b) above, are not intended
to

-11-

 

and will not relieve any insurance carrier of its obligations under policies required to be carried
by Tenant pursuant to the provisions of this Lease.

19. INSURANCE.

(a) Tenant’s Insurance. On or before the Commencement Date, and continuing throughout the entire
Term hereof and any other period of occupancy, Tenant agrees to keep in full force and effect, at
its sole cost and expense, the following insurance:

     (i) Insurance against physical loss or damage to the Premises and any office furniture, trade
fixtures, office equipment, merchandise and all other items of Tenant’s property on the Premises,
as provided under a special form property insurance policy including but not limited to flood, (if
the Premises is in a flood zone) and earthquake coverage in amounts not less than the actual
replacement cost of the Premises and any equipment, except that for earthquake and flood coverage,
the amount shall be not less than $5,000,000. Such policies shall contain a replacement cost
endorsement, an agreed amount endorsement deleting any co-insurance provisions, a law and ordinance
endorsement, and shall contain deductibles not more than $50,000 per occurrence, except for
earthquake and flood insurance, for which the deductible shall be not more than $100,000 per
occurrence.

     (ii) Comprehensive boiler and machinery and equipment breakdown insurance on any of the
machinery and equipment on a full replacement cost basis on or in the Premises. The insurance
required under this Subparagraph 19(a)(ii) can be covered under a blanket umbrella insurance policy
so long as the Premises (and coverage limits) are separately specified on such policy and the
coverage afforded thereby is not diminished or reduced by losses relating to other properties
covered by such policy.

     (iii) Business income/interruption insurance to include loss of business interruption at
limits sufficient to cover 100% of the annual revenues minus any non-fixed expenses payable by
Tenant to Landlord with a period of indemnity not less than eighteen (18) months from time of loss.

     (iv) During any period in which substantial alterations at the Premises are being undertaken,
builder’s risk insurance covering the total completed value including any “soft costs” with respect
to the Improvements being altered or repaired (on a completed value, non-reporting basis),
replacement cost of work performed and equipment, supplies and materials furnished in connection
with such construction or repair of the Premises, together with such “soft cost” endorsements and
such other endorsements as Landlord may require and general liability, worker’s compensation and
automobile liability insurance with respect to the improvements being constructed, altered or
repaired.

     (v) Commercial general liability insurance (including but not limited to liquor liability if
liquor will be sold or distributed on the Premises) and business automobile liability insurance
(including owned, non-owned and hired automobile liability) against claims for personal and bodily
injury, death or property damage occurring on, in or as a result of the use of the Premises, in an
amount not less than $10,000,000 per occurrence/annual aggregate and all other coverage extensions
that are usual and customary for properties of this size and type.

     (vi) Worker’s compensation insurance covering all persons employed by Tenant in connection
with any work done on or about any of the Premises for which claims for death, disease or bodily
injury may be asserted against Landlord, Tenant or the Premises or, in lieu of such Worker’s
Compensation Insurance, a program of self-insurance complying with the rules, regulations and
requirements of the appropriate agency of the State of Colorado.

     (vii) Such other insurance (or other terms with respect to any insurance required pursuant to
this Paragraph 19, including without limitation amounts of coverage, deductibles, and form of
mortgagee clause) as Landlord may reasonably require, which at the time is usual and commonly
obtained in connection with properties similar in type of building size, use and location to the
Premises.

-12-

 

(b) Supplemental Tenant Insurance Requirements.

     (i) Each carrier providing any insurance, or portion thereof, required by this Paragraph 19
shall be licensed to do business in the jurisdiction in which the Premises is located, and shall
have a claims paying ability rating by S&P of not less than “A” by Fitch, Inc. of not less than “A”
and an A.M. Best Company, Inc. rating of not less than A:VIII and financial size category of not
less than X. The insurance policies (1) shall be for such terms as Landlord may reasonably approve
and (2) shall be in full replacement cost amounts sufficient at all times to satisfy any agreed
amount requirements thereof.

     (ii) The insurance referred to in Subparagraphs 19(a)(i), (ii), (iii) and (iv) shall name
Landlord as loss payee and Fortress Credit Corp., Drawbridge Special Opportunities Fund LP, its
successors and/or assigns (or any other mortgagee of Landlord designated in writing by Landlord) as
loss payee and mortgagee. The insurance referred to in Subparagraphs 19(a)(v) shall name Landlord,
Landlord’s partners, members and property manager (and at Landlord’s request, Landlord’s mortgagees
of which Tenant has been informed in writing) as additional insureds. The insurance referred to in
Subparagraphs 19(a)(i), (ii), (iii), (iv) and (v) must also contain a provision that the insurance
afforded by such policies is primary insurance and any insurance carried by Landlord and Landlord’s
property manager or Landlord’s mortgagees, if any, will be excess over and non-contributing with
Tenant’s insurance.

     (iii) If said insurance or any part thereof shall expire, be withdrawn, become void, voidable,
unreliable or unsafe for any reason, including a breach of any condition thereof by Tenant or the
failure or impairment of the capital of any insurer, or if for any other reason whatsoever said
insurance shall become reasonably unsatisfactory to Landlord, Tenant shall immediately obtain or
cause to be obtained new or additional insurance reasonably satisfactory to Landlord.

     (iv) Each policy required by any provision of Subparagraph 19(a), except Subparagraph
19(a)(ii), shall provide that it may not be materially changed, reduced in coverage, cancelled or
otherwise terminated except after thirty (30) days’ prior notice to Landlord and Landlord’s
mortgagee, if any. Each such policy shall also provide that any loss otherwise payable thereunder
shall be payable notwithstanding (1) any act or omission of Landlord or Tenant which might, absent
such provision, result in a forfeiture of all or a part of such insurance payment, (2) the
occupation or use of any of the Premises for purposes more hazardous than those permitted by the
provisions of such policy, (C) any foreclosure or other action or proceeding taken by Landlord’s
mortgagee, if any, pursuant to any provision of the documents evidencing or securing the subject
loan upon the happening of an event of default therein, or (D) any change in title to or ownership
of any of the Premises.

     (v) Tenant is hereby notified that unless Tenant provides Landlord with evidence of the
insurance coverage required by this Lease, Landlord may purchase insurance at Tenant’s expense to
protect Landlord’s interests in the Premises, which insurance may, but need not, protect the
interests of Tenant. The coverage purchased by Landlord may not pay any claim made by Tenant or
any claim made against Tenant in connection with the Premises. Tenant may later cancel any
insurance purchased by Landlord, but only after providing Landlord with evidence that Tenant has
obtained the insurance as required by this Lease. If Landlord purchases insurance, Tenant will be
responsible for the costs of such insurance, including interest and any other charges imposed in
connection with the placement of the insurance, until the effective date of the cancellation or
expiration of the insurance. The costs of the insurance shall be paid by Tenant to Landlord within
ten (10) days after written demand by Landlord and shall be deemed additional rent for all purposes
hereunder. The costs of such insurance may be greater than the cost of insurance the Tenant may be
able to obtain for itself.

     (vi) Anything in this Paragraph 19 to the contrary notwithstanding, any insurance which Tenant
is required to obtain or cause to be obtained pursuant to this Paragraph 19 may be carried under a
“blanket” or umbrella policy or policies covering other properties or liabilities of Tenant,
provided that such “blanket” or umbrella policy or policies otherwise comply with the provisions of
this Paragraph 19 and provided further that Tenant shall provide to Landlord a statement of values
which shall be reviewed annual and amended as necessary based on replacement cost valuations. The
original or a certified copy of each such “blanket” or umbrella policy shall promptly be delivered
to Landlord.

-13-

 

     (vii) On or before the Commencement Date, Tenant shall deliver to Landlord copies of insurance
policies required to be maintained under this Lease and certificates of insurance (dated not more
than twenty (20) days prior to the Commencement Date) evidencing such insurance coverages, together
with endorsements reasonably satisfactory to Landlord naming the parties required by this Paragraph
19 to be named as additional insureds and loss payees under such policies. With respect to any
renewal or replacement insurance obtained after the Commencement Date, Tenant agrees to deliver to
Landlord, as soon as practicable, the required insurance certificate(s) of insurance evidencing the
existence of such insurance and Tenant’s compliance with the provisions of this Paragraph 19.
Tenant agrees to deliver renewal policies or certificates to Landlord not less than thirty (30)
days prior to the expiration date(s) of any expiring policy or policies. If any policies or
certificates required to be furnished pursuant to this Subparagraph 19(b)(vii) are not furnished
within the time(s) specified herein, Tenant will be deemed to be in material default under this
Lease without the benefit of any additional notice or cure period provided in Subparagraph
22(a)(iii) below.

     (viii) Landlord makes no representation that the limits of liability required to be carried by
Tenant under the terms of this Lease are adequate to protect Tenant’s interests and Tenant should
obtain such additional insurance or increased liability limits as Tenant deems appropriate.

(d) Waiver of Subrogation. Landlord’s and Tenant’s property insurance shall each contain a clause
whereby the insurer waives all rights of recovery by way of subrogation against the other party.
All policies shall also contain full waivers of subrogation against any mortgagees of Landlord.
Tenant shall also obtain and furnish evidence to Landlord of the waiver by Tenant’s worker’s
compensation insurance carrier of all rights of recovery by way of subrogation against Landlord and
any mortgagees of Landlord.

20. DAMAGE OR DESTRUCTION.

(a) Casualty. In case of damage to or destruction of the Premises, whether or not by a risk
required to be covered by insurance as set forth in Paragraph 19 of this Lease, this Lease shall
not terminate and Tenant shall promptly restore, rebuild, replace or repair (hereinafter referred
to as “Restore” or “Restoration”) the Premises to substantially the same condition as existed
immediately prior to such damage or destruction. Tenant shall pay all costs of such Restoration
whether or not such costs are covered by insurance. Such Restoration shall be commenced promptly
but in no event later than ninety (90) days after the casualty and shall thereafter be prosecuted
with due diligence. Notwithstanding the foregoing, however, in the case of damage to or
destruction of the Premises during the last twelve (12) months of the Term that will render the
Premises inaccessible or unusable for purposes of conducting Tenant’s business for a period of
ninety (90) days or more, Tenant may elect to terminate this Lease by giving Landlord written
notice of such election within thirty (30) days following the casualty, in which event Tenant shall
have no obligation to Restore the Premises; provided, however, Tenant shall, at its cost, clear the
Premises of debris and return the same to a safe and clean condition, and deliver any insurance
proceeds to Landlord in accordance with Subparagraph 20(e) below. If Tenant elects to terminate
this Lease in accordance with this paragraph, this Lease shall terminate thirty (30) days following
the date Landlord receives Tenant’s written notice of such election (the “Termination Date”) upon
the payment by Tenant of all rent and all other sums then due and payable under this Lease to and
including the Termination Date. Said termination shall not release Tenant from the obligations and
liabilities of Tenant under this Lease, actual or contingent, which have accrued on or prior to the
Termination Date.

(b) Reconstruction and Repair Requirements.

     (i) Prior to commencing the Restoration, Tenant shall deliver to Landlord plans and
specifications prepared by an independent architect licensed in the State of Colorado, having at
least five (5) years of experience as an architect and reasonably satisfactory to Landlord (an
“Approved Architect”), any and all material contractors, subcontractors and materialmen engaged in
the Restoration and the contracts and subcontracts under which they have been engaged, contractor’s
cost estimates, architect’s certificates, waivers of liens, sworn statements of mechanics and
materialmen and such other evidence of costs, percentage completion of construction, application of
payments, and satisfaction of liens as

-14-

 

Landlord may reasonably require. Tenant shall obtain Landlord’s prior approval, which approval
shall not be unreasonably withheld, conditioned or delayed, of all items provided to Landlord
pursuant to the preceding sentence.

     (ii) The Restoration work shall be constructed in strict accordance with the plans and
specifications approved by Landlord and shall comply in all respects with the following: (1) all
state, federal, city or quasi-governmental laws, codes, ordinances and regulations, as each may
apply according to the rulings of the controlling public official, agent or other person; (2)
applicable standards of the American Insurance Association (formerly, the National Board of Fire
Underwriters) and the National Electrical Code; and (3) building material manufacturer’s
specifications.

     (iii) All contractors and materialmen performing services in connection with the Restoration
shall carry worker’s compensation insurance covering all of their respective employees, and shall
also carry public liability insurance, including property damage, all with limits, in form and with
companies as are required to be carried by Tenant as set forth in this Lease. Certificates for all
insurance carried pursuant to this Subparagraph 20(b)(iii) shall be delivered to Landlord before
the commencement of construction of the Restoration work. All such policies of insurance must
contain a provision that the company writing said policy will give Landlord thirty (30) days prior
written notice of any cancellation or lapse of the effective date or any reduction in the amounts
of such insurance. All policies carried under this Subparagraph 20(b)(iii) shall insure Landlord
(and any other party designed by Landlord) and Tenant, as their interests may appear. All
insurance, except Workers’ Compensation, maintained by any persons performing work at the Premises
shall preclude subrogation claims by the insurer against anyone insured thereunder. Such insurance
shall provide that it is primary insurance as respects Landlord and that any other insurance
maintained by Landlord is excess and noncontributing with the insurance required hereunder.
Landlord may, in its discretion, require Tenant to obtain a lien and completion bond or some
alternate form of security satisfactory to Landlord in an amount sufficient to ensure the lien-free
completion of the Restoration work and naming Landlord as a co-obligee.

     (iv) At the conclusion of construction, (1) Tenant shall cause the Approved Architect and the
contractor (A) to update the previously approved plans and specifications as necessary to reflect
all changes made to such plans and specifications during the course of construction, (B) to certify
to the best of their knowledge that the “record-set” of as-built drawings are true and correct,
which certification shall survive the expiration or termination of this Lease, and (C) to deliver
to Landlord two (2) sets of copies of such record set of drawings, and (2) Tenant shall deliver to
Landlord a copy of all warranties, guaranties, and operating manuals and information relating to
the Restoration work.

     (v) Subject to the foregoing, the Restoration work shall be performed in accordance with
Paragraph 13 hereof (and for purposes of such Paragraph 13, the Restoration work shall be treated
as an Alteration).

(c) No Rent Abatement During Reconstruction. There shall be no rent abatement during Restoration
of the Premises or during that period after any casualty and prior to commencement of Restoration.

(d) Adjustment of Loss and Disbursement of Insurance Proceeds upon Restoration.

     (i) Tenant hereby authorizes and empowers Landlord and any mortgagee of Landlord, as
attorney-in-fact for Tenant to make proof of loss, to adjust and compromise any claim under
insurance policies, to appear in and prosecute any action arising from such insurance policies, to
collect and receive insurance proceeds of the insurance policies maintained pursuant to
Subparagraph 19(a)(i) above less expenses incurred by Landlord and any mortgagee of Landlord in the
collection of such proceeds (“Proceeds”); provided, however, that nothing contained in this
Paragraph shall require such parties to incur any expense or take any action hereunder. Tenant
further authorizes Landlord or, if required by any loan documents, Landlord’s mortgagee, to hold
the balance of such Proceeds to be used to pay directly to such contractor or reimburse Tenant for
the cost of Restoration of the Premises.

     (ii) The Proceeds shall be disbursed by Landlord or Landlord’s mortgagee, as the case may

-15-

 

be to, or as directed by, Tenant from time to time during the course of the Restoration, but not
more frequently than once a month and in requested amounts of not less than $50,000, upon receipt
of evidence satisfactory to Landlord and Landlord’s mortgagee that (1) all materials being
installed and work and labor to be performed in connection with such payment have been installed or
completed, as applicable, and will be paid for in full following such payment, (2) there exist no
notices of pendency, mechanic’s or materialman’s liens or notices of intention to file same, or any
other liens or encumbrances of any nature whatsoever on the Premises, and (3) executed partial or
final mechanic’s lien releases for all work performed and materials furnished which shall comply
with the appropriate provisions of Colorado law covering labor rendered and materials delivered.

     (iii) Tenant agrees that, if at any time during the Restoration, the cost of completing such
Restoration, as reasonably determined by Landlord, exceeds the undisbursed Proceeds, Tenant shall,
promptly upon demand by Landlord, deposit the amount of such excess with Landlord or Landlord’s
mortgagee, and Landlord or Landlord’s mortgagee, as the case may be, shall first disburse such
deposit to pay for the costs of such Restoration on the same terms and conditions as the insurance
proceeds are disbursed. If Tenant deposits such excess with Landlord and if, after completion of
the Restoration, any funds remain from the combination of insurance proceeds and the funds so
deposited with Landlord by Tenant, and if no default shall have occurred and be continuing, then
Landlord shall disburse to Tenant such remaining funds (together with any interest earned thereon).
In no event shall Landlord be obligated to make disbursements of Proceeds in excess of an amount
equal to the costs actually incurred from time to time for work in place as part of the
Restoration, as certified by the Approved Architect, less a retainage equal to ten percent (10%) of
such costs incurred until the Restoration has been completed. The retainage shall in no event be
less than the amount actually held back by Tenant from contractors, subcontractors and materialmen
engaged in the Restoration. The retainage shall not be released until the Approved Architect
certifies to Landlord and Landlord mortgagee, if any, that the Restoration has been completed
substantially in accordance with the provisions of this Paragraph 20 and that all material
approvals necessary for the re-occupancy and use of the Property have been obtained from all
appropriate governmental authorities, and Landlord receives evidence reasonably satisfactory to
Landlord that the costs of the Restoration have been paid in full or will be paid in full out of
the retainage.

     (iv) Notwithstanding anything contained herein to the contrary, if any mortgagee of Landlord
does not make the Proceeds available for the Restoration work, then, within ninety (90) days
following such casualty, Landlord shall, at Landlord’s election, either (1) terminate this Lease as
provided in this Subparagraph or (2) make available to Tenant funds in the amount of the Proceeds
for the purpose of performing the Restoration work. If Landlord elects to terminate this Lease in
accordance with this Subparagraph, this Lease shall terminate thirty (30) days following the date
Tenant receives Landlord’s written notice of such election, in which event Tenant shall (A) at its
cost, clear the Premises of debris and return the same to a safe and clean condition, and deliver
any insurance proceeds to Landlord in accordance with Subparagraph 20(e) below and (B) pay to
Landlord all rent and all other sums then due and payable under this Lease to and including the
date this Lease terminates pursuant to this Subparagraph. Said termination shall not release
Tenant from the obligations and liabilities of Tenant under this Lease, actual or contingent, which
have accrued on or prior to such termination.

(e) Disbursement of Insurance Proceeds upon Termination. Upon any termination of this Lease under
the provisions of this Paragraph 20, all proceeds from insurance policies maintained under
Subparagraph 19(b) (other than proceeds attributable to Tenant’s personal property) shall be
disbursed and paid to Landlord, less such amounts that are used by Tenant in clearing any debris
from the Premises and returning the Premises to a safe and clean condition as required by this
Paragraph 20.

(f) Waiver of Termination. The agreements contained in this Paragraph 20 provide a material part
of the consideration for this Lease and in bargaining for and obtaining its rights under this
Paragraph 20, Tenant waives any right to terminate this Lease under applicable law.

21. EMINENT DOMAIN.

(a) Total or Partial Taking. If the whole or substantially the whole of the Building or the
parking

-16-

 

facilities reasonably necessary for Tenant’s full enjoyment of the Premises is taken for any public
or quasi-public use under any governmental law, ordinance or regulation or by right of eminent
domain or is sold to the condemning authority in lieu of condemnation, then this Lease will
terminate as of the earlier of the date when title to or physical possession of the Building or the
parking facilities are taken by the condemning authority. If less than substantially the whole of
the Building or the parking facilities are thus taken or sold and if, after such partial taking, in
Landlord’s reasonable judgment, alteration or reconstruction of the Building or the parking
facilities, as the case may be, is not economically justified, Landlord may terminate this Lease by
giving written notice to Tenant within sixty (60) days after the taking or sale. Similarly, Tenant
shall have the right to terminate this Lease if a substantial portion of the Building or the
parking facilities is taken by exercise of the power of eminent domain and the remaining portion of
the Building or the parking facilities, as the case may be, is not reasonably suitable for Tenant
to continue its operations at the Premises in an economically viable fashion because of such
partial taking or sale. Such termination by Tenant must be exercised by written notice to Landlord
given not later than sixty (60) days after Tenant is notified of the taking or sale in the final
form awarded or agreed to by Landlord. Termination by Landlord or Tenant shall be effective as of
the date of such taking. If neither Landlord nor Tenant elects to terminate this Lease upon a
partial taking or sale of a portion of the Premises, the Monthly Base Rent payable under this Lease
will be diminished in the proportions of the usefulness of the Premises for the conduct of Tenant’s
business. If this Lease is not terminated upon a partial taking or sale, this Lease shall
terminate as to the portion of the Premises so taken as of the date of such taking and shall remain
in full force and effect as to the portion of the Premises not so taken, and the Monthly Base Rent
shall be equitably reduced as of the date of such taking.

(b) Award. If all or any part of the Premises is taken by exercise of the power of eminent domain,
all awards, compensation, damages, income, rent and interest payable in connection with such taking
shall, except as expressly set forth in this Subparagraph 21(b), be paid to and become the property
of Landlord, and Tenant hereby assigns to Landlord all of the foregoing. Without limiting the
generality of the foregoing, Tenant shall have no claim against Landlord or the entity exercising
the power of eminent domain for the value of the leasehold estate created by this Lease or any
unexpired term of this Lease. Tenant shall have the right to claim and receive directly from the
entity exercising the power of eminent domain only the share of any award determined to be owing to
Tenant for the taking of improvements installed in the portion of the Premises so taken by Tenant
at Tenant’s sole cost and expense based on the unamortized cost actually paid by Tenant for such
improvements, for the taking of Tenant’s movable furniture, equipment, trade fixtures and personal
property, for loss of goodwill, for interference with or interruption of Tenant’s business, or for
removal and relocation expenses.

22. DEFAULTS AND REMEDIES.

(a) Defaults. The occurrence of any one or more of the following events will be deemed a default
by Tenant:

(i) The vacation of the Premises by Tenant for fifteen (15) days or longer, unless adequate
security procedures have been reasonably approved by Landlord and maintained in force by Tenant at
Tenant’s sole cost and expense in order to avoid vandalism at the Premises.

(ii) The failure by Tenant to (A) make any payment of Monthly Base Rent required to be made by
Tenant hereunder within three (3) business days after such payment becomes due (provided that the
first two (2) occurrences of such a delinquency in any twelve (12) month period shall be a default
only if Tenant fails to cure each of such delinquencies within three (3) business days after
written notice from Landlord thereof) or (B) make any payment of additional rent or any other
payment required to be made by Tenant hereunder (other than Monthly Base Rent) within five (5)
business days after such payment becomes due (provided that the first two (2) occurrences of such a
delinquency in any twelve (12) month period shall be a default only if Tenant fails to cure each of
such delinquencies within five (5) business days after written notice from Landlord thereof).

-17-

 

(iii) The failure by Tenant to observe or perform any of the express or implied covenants or
provisions of this Lease to be observed or performed by Tenant, other than as specified in
Subparagraph 22(a)(i) or (ii) above, where such failure continues (where no other period of time is
expressly provided) for a period of ten (10) days after written notice thereof from Landlord to
Tenant. The provisions of any such notice will be in lieu of, and not in addition to, any notice
required under applicable law. If the nature of Tenant’s default is such that more than ten (10)
days are reasonably required for its cure, then Tenant will not be deemed to be in default if
Tenant diligently commences such cure within such ten (10) day period and thereafter diligently
prosecutes such cure to completion.

(iv) (A) The making by Tenant of any general assignment for the benefit of creditors; (B) the
filing by or against Tenant of a petition to have Tenant adjudged a bankrupt or a petition for
reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a
petition filed against Tenant, the same is dismissed within sixty (60) days); (C) the appointment
of a trustee or receiver to take possession of substantially all of Tenant’s assets located at the
Premises or of Tenant’s interest in this Lease, where possession is not restored to Tenant within
thirty (30) days; or (D) the attachment, execution or other judicial seizure of substantially all
of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease where such seizure
is not discharged within thirty (30) days.

(b) Landlord’s Remedies; Termination. In the event of any default by Tenant, in addition to any
other remedies available to Landlord at law or in equity under applicable law, Landlord will have
the immediate right and option to terminate this Lease and all rights of Tenant hereunder, but
subject to the forcible entry and detainer laws of Colorado. If Landlord elects to terminate this
Lease then, to the extent permitted under applicable law, Landlord may recover from Tenant (i) The
worth at the time of award of any unpaid rent which had been earned at the time of such
termination; plus (ii) the worth at the time of award of the amount by which the unpaid rent which
would have been earned after termination until the time of award exceeds the amount of such rent
loss that Tenant proves could have been reasonably avoided; plus (iii) the worth at the time of
award of the amount by which the unpaid rent for the balance of the Term after the time of award
exceeds the amount of such rent loss that Tenant proves could be reasonably avoided; plus (iv) any
other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s
failure to perform its obligations under this Lease or which, in the ordinary course of things,
results therefrom including, but not limited to: legal fees and costs; brokers’ commissions; the
costs of refurbishment, alterations, renovation and repair of the Premises, and removal (including
the repair of any damage caused by such removal) and storage (or disposal) of Tenant’s personal
property, equipment, fixtures, Alterations, the Tenant Improvements and any other items which
Tenant is required under this Lease to remove but does not remove, as well as the unamortized value
of any free rent, reduced rent, free parking, reduced rate parking and any Tenant Improvement
Allowance or other costs or economic concessions provided, paid, granted or incurred by Landlord
pursuant to this Lease. The unamortized value of such concessions shall be determined by taking
the total value of such concessions and multiplying such value by a fraction, the numerator of
which is the number of months of the Lease Term not yet elapsed as of the date on which the Lease
is terminated, and the denominator of which is the total number of months of the Lease Term. As
used in Subparagraphs 22(b)(i) and (ii) above, the “worth at the time of award” is computed by
allowing interest at the Interest Rate. As used in Subparagraph 22(b)(iii) above, the “worth at
the time of award” is computed by discounting such amount at the discount rate of the Federal
Reserve Bank of San Francisco at the time of award plus one percent (1%).

(c) Landlord’s Remedies; Re-Entry Rights. In the event of any default by Tenant, in addition to
any other remedies available to Landlord under this Lease, at law or in equity, but subject to the
forcible entry and detainer laws of Colorado, Landlord will also have the right, with or without
terminating this Lease, to re-enter the Premises and remove all persons and property from the
Premises; such property may be removed and stored in a public warehouse or elsewhere and/or
disposed of at the sole cost and expense of and for the account of Tenant in accordance with the
provisions of Subparagraph 13(h) of this Lease or any other procedures permitted by applicable law.
No re-entry or taking possession of the Premises by Landlord pursuant to this Subparagraph 22(c)
will be construed as an election to terminate this Lease unless a written notice of such intention
is given to Tenant or unless the termination thereof is decreed by a court of competent
jurisdiction.

-18-

 

(d) Landlord’s Remedies; Re-Letting. In the event of the abandonment of the Premises by Tenant or
in the event that Landlord elects to re-enter the Premises or takes possession of the Premises
pursuant to legal proceeding or pursuant to any notice provided by law, then if Landlord does not
elect to terminate this Lease, Landlord may from time to time, without terminating this Lease,
either recover all rent as it becomes due or relet the Premises or any part thereof on terms and
conditions as Landlord in its sole and absolute discretion may deem advisable with the right to
make alterations and repairs to the Premises in connection with such reletting. If Landlord elects
to relet the Premises, then rents received by Landlord from such reletting will be applied: first,
to the payment of any indebtedness other than rent due hereunder from Tenant to Landlord; second,
to the payment of any cost of such reletting; third, to the payment of the cost of any alterations
and repairs to the Premises incurred in connection with such reletting; fourth, to the payment of
rent due and unpaid hereunder and the residue, if any, will be held by Landlord and applied to
payment of future rent as the same may become due and payable hereunder. Should that portion of
such rents received from such reletting during any month, which is applied to the payment of rent
hereunder, be less than the rent payable during that month by Tenant hereunder, then Tenant agrees
to pay such deficiency to Landlord immediately upon demand therefor by Landlord. Such deficiency
will be calculated and paid monthly.

(e) Landlord’s Remedies; Performance for Tenant. All covenants and agreements to be performed by
Tenant under any of the terms of this Lease are to be performed by Tenant at Tenant’s sole cost and
expense and without any abatement of rent. If Tenant fails to pay any sum of money legitimately
owed to any party other than Landlord for which it is liable under this Lease, or if Tenant fails
to perform any other act on its part to be performed hereunder, and such failure continues for ten
(10) days after notice thereof by Landlord, Landlord may, without waiving or releasing Tenant from
its obligations, but shall not be obligated to, make any such payment or perform any such other act
to be made or performed by Tenant. Tenant agrees to reimburse Landlord upon demand for all sums so
paid by Landlord and all necessary incidental costs, together with interest thereon at the Interest
Rate, from the date of such payment by Landlord until reimbursed by Tenant. This remedy shall be
in addition to any other right or remedy of Landlord set forth in this Paragraph 22.

(f) Late Payment. If Tenant fails to pay any installment of rent within five (5) days of when due
or if Tenant fails to make any other payment for which Tenant is obligated under this Lease within
five (5) days of when due, such late amount will accrue interest at the Interest Rate and Tenant
agrees to pay Landlord as additional rent such interest on such amount from the date such amount
becomes due until such amount is paid. In addition, Tenant agrees to pay to Landlord concurrently
with such late payment amount, as additional rent, a late charge equal to five percent (5%) of the
amount due to compensate Landlord for the extra costs Landlord will incur as a result of such late
payment. The parties agree that (i) it would be impractical and extremely difficult to fix the
actual damage Landlord will suffer in the event of Tenant’s late payment, (ii) such interest and
late charge represents a fair and reasonable estimate of the detriment that Landlord will suffer by
reason of late payment by Tenant, and (iii) the payment of interest and late charges are distinct
and separate in that the payment of interest is to compensate Landlord for the use of Landlord’s
money by Tenant, while the payment of late charges is to compensate Landlord for Landlord’s
processing, administrative and other costs incurred by Landlord as a result of Tenant’s delinquent
payments. Acceptance of any such interest and late charge will not constitute a waiver of the
Tenant’s default with respect to the overdue amount, or prevent Landlord from exercising any of the
other rights and remedies available to Landlord. If Tenant incurs a late charge more than three
(3) times in any period of twelve (12) months during the Lease Term, then, notwithstanding that
Tenant cures the late payments for which such late charges are imposed, Landlord will have the
right to require Tenant thereafter to pay all installments of Monthly Base Rent quarterly in
advance throughout the remainder of the Lease Term.

(g) Rights and Remedies Cumulative. All rights, options and remedies of Landlord contained in this
Lease will be construed and held to be cumulative, and no one of them will be exclusive of the
other, and Landlord shall have the right to pursue any one or all of such remedies or any other
remedy or relief which may be provided by law or in equity, whether or not stated in this Lease.
Nothing in this Paragraph 22 will be deemed to limit or otherwise affect Tenant’s indemnification
of Landlord pursuant to any provision of this Lease.

-19-

 

(h) Mitigation of Damages. All of the foregoing remedies and rights of Landlord in the event of
default by Tenant, shall be subject to Landlord’s duty to mitigate its own damages in accordance
with applicable Colorado state law.

23. LANDLORD’S DEFAULT. Landlord will not be in default in the performance of any obligation
required to be performed by Landlord under this Lease unless Landlord fails to perform such
obligation within thirty (30) days after the receipt of written notice from Tenant specifying in
detail Landlord’s failure to perform; provided however, that if the nature of Landlord’s obligation
is such that more than thirty (30) days are required for performance, then Landlord will not be
deemed in default if it commences such performance within such thirty (30) day period and
thereafter diligently pursues the same to completion. Upon any default by Landlord, Tenant may
exercise any of its rights provided at law or in equity, subject to the limitations on liability
set forth in Paragraph 35 of this Lease.

24. ASSIGNMENT AND SUBLETTING.

(a) Restriction on Transfer. Except as expressly provided in this Paragraph 24, Tenant will not,
either voluntarily or by operation of law, assign or encumber this Lease or any interest herein or
sublet the Premises or any part thereof, or permit the use or occupancy of the Premises by any
party other than Tenant (any such assignment, encumbrance, sublease or the like will sometimes be
referred to as a “Transfer”), without the prior written consent of Landlord, which consent Landlord
will not unreasonably withhold or delay.

(b) Corporate and Partnership Transfers. For purposes of this Paragraph 24, if Tenant is a
corporation, partnership or other entity, any transfer, assignment, encumbrance or hypothecation of
twenty-five percent (25%) or more (individually or in the aggregate) of any stock or other
ownership interest in such entity, and/or any transfer, assignment, hypothecation or encumbrance of
any controlling ownership or voting interest in such entity, will be deemed a Transfer and will be
subject to all of the restrictions and provisions contained in this Paragraph 24. Notwithstanding
the foregoing, the immediately preceding sentence will not apply to any transfers of stock of
Tenant if Tenant is a publicly-held corporation and such stock is transferred publicly over a
recognized security exchange or over-the-counter market.

(c) Permitted Controlled Transfers. Notwithstanding the provisions of this Paragraph 24 to the
contrary, Tenant may assign this Lease or sublet the Premises or any portion thereof (“Permitted
Transfer”), without Landlord’s consent and without extending any sublease termination option to
Landlord, to any parent, subsidiary or affiliate corporation which controls, is controlled by or is
under common control with Tenant, or to any corporation resulting from a merger or consolidation
with Tenant, or to any person or entity which acquires all the assets of Tenant’s business as a
going concern, provided that: (i) at least twenty (20) days prior to such assignment or sublease,
Tenant delivers to Landlord the financial statements and other financial and background information
of the assignee or sublessee described in Subparagraph 24(d) below; (ii) if an assignment, the
assignee assumes, in full, the obligations of Tenant under this Lease (or if a sublease, the
sublessee of a portion of the Premises or Term assumes, in full, the obligations of Tenant with
respect to such portion); (iii) the financial net worth of the assignee or sublessee as of the time
of the proposed assignment or sublease equals or exceeds that of Tenant as of the date of execution
of this Lease; (iv) Tenant remains fully liable under this Lease; and (v) the use of the Premises
under Paragraph 8 remains unchanged.

(d) Transfer Notice. If Tenant desires to effect a Transfer, then at least thirty (30) days prior
to the date when Tenant desires the Transfer to be effective (the “Transfer Date”), Tenant agrees
to give Landlord a notice (the “Transfer Notice”), stating the name, address and business of the
proposed assignee, sublessee or other transferee (sometimes referred to hereinafter as
“Transferee”), reasonable information (including references) concerning the character, ownership,
and financial condition of the proposed Transferee, the Transfer Date, any ownership or commercial
relationship between Tenant and the proposed Transferee, and the consideration and all other
material terms and conditions of the proposed Transfer, all in such detail as Landlord may
reasonably require. If Landlord reasonably requests additional detail, the Transfer Notice will
not be deemed to have been received until Landlord

-20-

 

receives such additional detail, and Landlord may withhold consent to any Transfer until such
information is provided to it.

(e) Landlord’s Options. Within fifteen (15) days of Landlord’s receipt of any Transfer Notice, and
any additional information requested by Landlord concerning the proposed Transferee’s financial
responsibility, Landlord will elect to do one of the following (i) consent to the proposed Transfer
or (ii) refuse such consent, which refusal shall be on reasonable grounds including, without
limitation, those set forth in Subparagraph 24(f) below.

(f) Reasonable Disapproval. Landlord and Tenant hereby acknowledge that Landlord’s disapproval of
any proposed Transfer pursuant to Subparagraph 24(e) will be deemed reasonably withheld if based
upon any reasonable factor, including, without limitation, any or all of the following factors:
(i) the use of the Premises by the Transferee (A) is not permitted by the use provisions in
Paragraph 8 hereof, or (B) otherwise poses a risk of increased liability to Landlord; (ii) the
Transferee does not have the financial capability to fulfill the obligations imposed by the
Transfer and this Lease; or (iii) the Transferee poses a business or other economic risk which
Landlord reasonably deems unacceptable.

(g) Additional Conditions. A condition to Landlord’s consent to any Transfer of this Lease will be
the delivery to Landlord of a true copy of the fully executed instrument of assignment, sublease,
transfer or hypothecation, and, in the case of an assignment, the delivery to Landlord of an
agreement executed by the Transferee in form and substance reasonably satisfactory to Landlord,
whereby the Transferee assumes and agrees to be bound by all of the terms and provisions of this
Lease and to perform all of the obligations of Tenant hereunder. As a condition for granting its
consent to any assignment or sublease, Landlord may require that, upon a default by Tenant under
the terms of this Lease, the assignee or sublessee remit directly to Landlord on a monthly basis,
all monies due to Tenant by said assignee or sublessee. As a condition to Landlord’s consent to
any sublease, such sublease must provide that it is subject and subordinate to this Lease and to
all mortgages; that Landlord may enforce the provisions of the sublease, including collection of
rent; that in the event of termination of this Lease for any reason, including without limitation a
voluntary surrender by Tenant, or in the event of any reentry or repossession of the Premises by
Landlord, Landlord may, at its option, either (i) terminate the sublease, or (ii) take over all of
the right, title and interest of Tenant, as sublessor, under such sublease, in which case such
sublessee will attorn to Landlord, but that nevertheless Landlord will not (1) be liable for any
previous act or omission of Tenant under such sublease, (2) be subject to any defense or offset
previously accrued in favor of the sublessee against Tenant, or (3) be bound by any previous
modification of any sublease made without Landlord’s written consent, or by any previous prepayment
by sublessee of more than one month’s rent.

(h) Excess Rent. If Landlord consents to any assignment of this Lease, Tenant agrees to pay to
Landlord, as additional rent, fifty percent (50%) of all sums and other consideration payable to
and for the benefit of Tenant by the assignee on account of the assignment, as and when such sums
and other consideration are due and payable by the assignee to or for the benefit of Tenant (or, if
Landlord so requires, and without any release of Tenant’s liability for the same, Tenant agrees to
instruct the assignee to pay such sums and other consideration directly to Landlord). If for any
sublease, Tenant receives rent or other consideration, either initially or over the term of the
sublease, in excess of the rent fairly allocable to the portion of the Premises which is subleased
based on square footage, Tenant agrees to pay to Landlord as additional rent fifty percent (50%) of
the excess of each such payment of rent or other consideration received by Tenant promptly after
its receipt. In calculating excess rent or other consideration which may be payable to Landlord
under this Subparagraph, Tenant will be entitled to recapture, on an amortized basis over the term
of the sublease or assignment, any commercially reasonably third party brokerage commissions and
legal fees paid by Tenant in connection with the subletting or assignment and any improvement
allowance paid by Tenant to the subtenant or assignee (collectively the “Assignment or Subletting
Costs”), provided that, as a condition to Tenant recapturing the Assignment or Subletting Costs,
Tenant shall provide to Landlord, within ninety (90) days of Landlord’s execution of Landlord’s
consent to the assignment or subletting, a detailed accounting of the Assignment or Subletting
Costs and supporting documents, such as receipts and construction invoices. To effect the

-21-

 

foregoing, Tenant shall deduct from the monthly amounts received by Tenant from the subtenant or
assignee as rent or consideration (i) the Monthly Base Rent payable by Tenant to Landlord for the
subject space and (ii) the incremental amount, on an amortized basis, of the Assignment or
Subletting Costs, and fifty (50%) of the then remaining sum shall be paid promptly to Landlord.

(i) Intentionally Deleted.

(j) No Release. No Transfer will release Tenant of Tenant’s obligations under this Lease or alter
the primary liability of Tenant to pay the rent and to perform all other obligations to be
performed by Tenant hereunder. Landlord may require that any Transferee remit directly to Landlord
on a monthly basis, all monies due Tenant by said Transferee, in which event Landlord agrees to
promptly notify Tenant of such requirement. However, the acceptance of rent by Landlord from any
other person will not be deemed to be a waiver by Landlord of any provision hereof. Consent by
Landlord to one Transfer will not be deemed consent to any subsequent Transfer. In the event of
default by any Transferee of Tenant or any successor of Tenant in the performance of any of the
terms hereof, Landlord may proceed directly against Tenant without the necessity of exhausting
remedies against such Transferee or successor. Landlord may consent to subsequent assignments of
this Lease or sublettings or amendments or modifications to this Lease with assignees of Tenant,
without notifying Tenant, or any successor of Tenant, and without obtaining its or their consent
thereto and any such actions will not relieve Tenant of liability under this Lease.

(k) Administrative and Legal Fees. If Tenant effects a Transfer or requests the consent of
Landlord to any Transfer (whether or not such Transfer is consummated), then, upon demand, Tenant
agrees to pay Landlord a non-refundable administrative fee of Two Hundred Fifty Dollars ($250.00),
plus any reasonable legal and paralegal fees incurred by Landlord in connection with such Transfer
or request for consent. Acceptance of the Two Hundred Fifty Dollar ($250.00) administrative fee
and/or reimbursement of Landlord’s legal and paralegal fees will in no event obligate Landlord to
consent to any proposed Transfer.

25. SUBORDINATION. Without the necessity of any additional document being executed by Tenant for
the purpose of effecting a subordination, and at the election of Landlord or any mortgagee or
beneficiary with a deed of trust encumbering the Premises, or any lessor of a ground or underlying
lease with respect to the Premises, this Lease will be subject and subordinate at all times to:
(i) all ground leases or underlying leases which may now exist or hereafter be executed affecting
the Premises; and (ii) the lien of any mortgage or deed of trust which may now exist or hereafter
be executed for which the Premises or any leases thereof, or Landlord’s interest and estate in any
of said items, is specified as security; provided, however, that the subordination of this Lease to
any mortgage or deed of trust or any ground or underlying lease is subject to Tenant’s receipt of a
commercially reasonable non-disturbance agreement from the holder of such mortgage or deed of trust
or such ground or underlying lease, which agreement does not materially alter the rights and
benefits of Tenant hereunder. Notwithstanding the foregoing, Landlord reserves the right to
subordinate any such ground leases or underlying leases or any such liens to this Lease. If any
such ground lease or underlying lease terminates for any reason or any such mortgage or deed of
trust is foreclosed or a conveyance in lieu of foreclosure is made for any reason, at the election
of Landlord’s successor in interest, Tenant agrees to attorn to and become the tenant of such
successor in which event Tenant’s right to possession of the Premises will not be disturbed as long
as Tenant is not in default under this Lease. Tenant hereby waives its rights under any law which
gives or purports to give Tenant any right to terminate or otherwise adversely affect this Lease
and the obligations of Tenant hereunder in the event of any such foreclosure proceeding or sale.
Tenant covenants and agrees to execute and deliver, upon demand by Landlord and in the form
reasonably required by Landlord, any additional documents evidencing the priority or subordination
of this Lease and Tenant’s attornment agreement with respect to any such ground lease or underlying
leases or the lien of any such mortgage or deed of trust. If Tenant fails to sign and return any
such documents within twenty-one (21) days of receipt, Tenant will be in default hereunder.

-22-

 

26. ESTOPPEL CERTIFICATE.

(a) Tenant’s Obligations. Within twenty-one (21) days following any written request which Landlord
may make from time to time, Tenant agrees to execute and deliver to Landlord a statement, in a form
substantially similar to the form of Exhibit “C” attached hereto or as may reasonably be required
by Landlord’s lender, certifying: (i) the date of commencement of this Lease; (ii) the fact that
this Lease is unmodified and in full force and effect (or, if there have been modifications, that
this Lease is in full force and effect, and stating the date and nature of such modifications);
(iii) the date to which the rent and other sums payable under this Lease have been paid; (iv) that
there are no current defaults under this Lease by either Landlord or Tenant except as specified in
Tenant’s statement; and (v) such other matters as are described in Exhibit C or are otherwise
reasonably requested by Landlord. Landlord and Tenant intend that any statement delivered pursuant
to this Paragraph 26 may be relied upon by any mortgagee, beneficiary, purchaser or prospective
purchaser of the Premises or any interest therein.

(b) Tenant’s Failure to Deliver. Tenant’s failure to deliver such statement within such time will
be conclusive upon Tenant (i) that this Lease is in full force and effect, without modification
except as may be represented by Landlord, (ii) that there are no uncured defaults in Landlord’s
performance, and (iii) that not more than one (1) month’s rent has been paid in advance. Without
limiting the foregoing, if Tenant fails to deliver any such statement within such twenty-one
(21)-day period, Landlord may deliver to Tenant an additional request for such statement and
Tenant’s failure to deliver such statement to Landlord within ten (10) days after delivery of such
additional request will constitute a default under this Lease. Tenant agrees to indemnify and
protect Landlord from and against any and all claims, damages, losses, liabilities and expenses
(including legal fees and costs) attributable to any failure by Tenant to timely deliver any such
estoppel certificate to Landlord as required by this Paragraph 26, but only to the extent any such
claims, damages, losses, liabilities or expenses are attributable solely or primarily to Tenant’s
failure to deliver any such certificate.

27. SECURITY MEASURES. Tenant hereby acknowledges that Landlord shall have no obligation to
provide guard service or other security measures for the benefit of the Premises. Tenant hereby
assumes all responsibility for the protection of Tenant and its agents, employees, contractors,
invitees and guests, and the property thereof, from acts of third parties, including keeping doors
locked and other means of entry to the Building closed, whether or not Landlord, at its option,
elects to provide security protection for the Premises or any portion thereof. Tenant further
assumes the risk that any safety and security devices, services and programs which Landlord elects,
in its sole discretion, to provide may not be effective, or may malfunction or be circumvented by
an unauthorized third party, and Tenant shall, in addition to its other insurance obligations under
this Lease, obtain its own insurance coverage to the extent Tenant desires protection against
losses related to such occurrences. Tenant shall cooperate in any reasonable safety or security
program developed by Landlord or required by law.

28. INTENTIONALLY DELETED.

29. MODIFICATION AND CURE RIGHTS OF LANDLORD’S MORTGAGEES AND LESSORS.

(a) Modifications. If, in connection with Landlord’s obtaining or entering into any financing or
ground lease for any portion of the Premises, the lender or ground lessor requests modifications to
this Lease, Tenant, within ten (10) business days after request therefor, agrees to execute an
amendment to this Lease incorporating such modifications, provided such modifications are
reasonable and do not increase the obligations of Tenant under this Lease or adversely affect the
leasehold estate created by this Lease.

(b) Cure Rights. In the event of any default on the part of Landlord, Tenant will give notice by
registered or certified mail to any beneficiary of a deed of trust or mortgage covering the
Premises or ground lessor of Landlord whose address has been furnished to Tenant, and Tenant agrees
to offer such beneficiary, mortgagee or ground lessor a reasonable opportunity to cure the default
(including with respect to any such beneficiary or mortgagee, time to obtain possession of the
Premises, subject to this

-23-

 

Lease and Tenant’s rights hereunder, by power of sale or a judicial foreclosure, if such should
prove necessary to effect a cure).

30. DEFINITION OF LANDLORD. The term “Landlord,” as used in this Lease, so far as covenants or
obligations on the part of Landlord are concerned, means and includes only the owner or owners, at
the time in question, of the fee title of the Premises or the lessees under any ground lease, if
any. In the event of any transfer, assignment or other conveyance or transfers of any such title
(other than a transfer for security purposes only), Landlord herein named (and in case of any
subsequent transfers or conveyances, the then grantor) will be automatically relieved from and
after the date of such transfer, assignment or conveyance of all liability as respects the
performance of any covenants or obligations on the part of Landlord contained in this Lease
thereafter to be performed, so long as the transferee assumes in writing all such covenants and
obligations of Landlord arising after the date of such transfer. Landlord and Landlord’s
transferees and assignees have the absolute right to transfer all or any portion of their
respective title and interest in the Premises and/or this Lease without the consent of Tenant, and
such transfer or subsequent transfer will not be deemed a violation on Landlord’s part of any of
the terms and conditions of this Lease.

31. WAIVER. The waiver by either party of any breach of any term, covenant or condition herein
contained will not be deemed to be a waiver of any subsequent breach of the same or any other term,
covenant or condition herein contained, nor will any custom or practice which may develop between
the parties in the administration of the terms hereof be deemed a waiver of or in any way affect
the right of either party to insist upon performance in strict accordance with said terms. The
subsequent acceptance of rent or any other payment hereunder by Landlord will not be deemed to be a
waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other
than the failure of Tenant to pay the particular rent so accepted, regardless of Landlord’s
knowledge of such preceding breach at the time of acceptance of such rent. No acceptance by
Landlord of a lesser sum than the basic rent and additional rent or other sum then due will be
deemed to be other than on account of the earliest installment of such rent or other amount due,
nor will any endorsement or statement on any check or any letter accompanying any check be deemed
an accord and satisfaction, and Landlord may accept such check or payment without prejudice to
Landlord’s right to recover the balance of such installment or other amount or pursue any other
remedy provided in this Lease. The consent or approval of Landlord to or of any act by Tenant
requiring Landlord’s consent or approval will not be deemed to waive or render unnecessary
Landlord’s consent or approval to or of any subsequent similar acts by Tenant.

32. PARKING.

Tenant shall have, at no additional charge, exclusive right to all parking facilities for the
Building in which the Premises are located and the right to assign the same.

33. INTENTIONALLY DELETED.

34. SIGNS. Subject to the terms of this Paragraph 34, Tenant may install identification signage
in, on or about the Premises. The size, design, color and other physical aspects of any and all
signage shall be subject to (i) Landlord’s prior written consent, which consent shall not be
unreasonably withheld (ii) any covenants, conditions or restrictions governing the Premises, and
(iii) any applicable municipal or governmental permits, approvals, guidelines and restrictions
(including, without limitation, any guidelines issued or restrictions imposed by the City of
Boulder). Tenant will be solely responsible for all costs for installation, maintenance, repair
and removal of any Tenant identification sign(s). If Tenant fails to remove Tenant’s sign(s) upon
termination of this Lease and repair any damage caused by such removal, Landlord may do so at
Tenant’s sole cost and expense. Tenant agrees to reimburse Landlord for all costs incurred by
Landlord to effect any installation, maintenance or removal on Tenant’s account, which amount will
be deemed additional rent, and may include, without limitation, all sums disbursed, incurred or
deposited by Landlord including Landlord’s costs, expenses and actual legal fees with interest
thereon at the Interest Rate from the date of Landlord’s demand until paid by Tenant. Landlord
agrees that Landlord shall not seek to name the Building or erect any signs related to or upon the
Building indicating any entity’s identity other than Tenant’s during the term hereof. Tenant shall
not seek to name the

-24-

 

Building or erect any signs related to or upon the Building indicating any other entity’s identity
other than Tenant and other permitted occupants of the Building during the term hereof.

35. LIMITATION ON LIABILITY. In consideration of the benefits accruing hereunder, Tenant on behalf
of itself and all successors and assigns of Tenant covenants and agrees that, in the event of any
actual or alleged failure, breach or default hereunder by Landlord: (a) Tenant’s recourse against
Landlord for monetary damages will be limited to Landlord’s interest in the Premises including,
subject to the prior rights of any Mortgagee, Landlord’s interest in the rents of the Premises and
any insurance proceeds payable to Landlord; (b) Except as may be necessary to secure jurisdiction
of the partnership or company, no partner or member of Landlord shall be sued or named as a party
in any suit or action and no service of process shall be made against any partner or member of
Landlord; (c) No partner or member of Landlord shall be required to answer or otherwise plead to
any service of process; (d) No judgment will be taken against any partner or member of Landlord and
any judgment taken against any partner or member of Landlord may be vacated and set aside at any
time after the fact; (e) No writ of execution will be levied against the assets of any partner or
member of Landlord; (f) The obligations under this Lease do not constitute personal obligations of
the individual members, partners, directors, officers or shareholders of Landlord, and Tenant shall
not seek recourse against the individual members, partners, directors, officers or shareholders of
Landlord or any of their personal assets for satisfaction of any liability in respect to this
Lease; and (g) These covenants and agreements are enforceable both by Landlord and also by any
partner or member of Landlord.

36. FINANCIAL STATEMENTS. Prior to the execution of this Lease by Landlord and at any time during
the Term of this Lease upon ten (10) business days prior written notice from Landlord, Tenant
agrees to provide Landlord with a current financial statement for Tenant and any guarantors of
Tenant and financial statements for the two (2) years prior to the current financial statement year
for Tenant and any guarantors of Tenant. Such statements are to be prepared in accordance with
GAAP (as defined above) and, if such is the normal practice of Tenant, audited by an independent
certified public accountant. Landlord agrees to keep the information in Tenant’s financial
statements confidential and not to such disclose such information to any person or entity, except
to any actual or prospective purchasers of the Premises, any actual or prospective lenders on the
Premises, any actual or prospective investors in Landlord, and to the respective accountants,
attorneys and advisors of Landlord and of each of the foregoing parties, and except as may be
required by law or by court order.

37. QUIET ENJOYMENT. Landlord covenants and agrees with Tenant that upon Tenant paying the rent
required under this Lease and paying all other charges and performing all of the covenants and
provisions on Tenant’s part to be observed and performed under this Lease, Tenant may peaceably and
quietly have, hold and enjoy the Premises in accordance with this Lease without hindrance or
molestation by Landlord or its employees or agents.

38. MISCELLANEOUS.

(a) Conflict of Laws. This Lease shall be governed by and construed solely pursuant to the laws of
the State of Colorado, without giving effect to choice of law principles thereunder, and personal
and subject matter jurisdiction for all disputes related thereto shall lie exclusively in Colorado.

(b) Successors and Assigns. Except as otherwise provided in this Lease, all of the covenants,
conditions and provisions of this Lease shall be binding upon and shall inure to the benefit of the
parties hereto and their respective heirs, personal representatives, successors and assigns.

(c) Professional Fees and Costs. If either Landlord or Tenant should bring suit against the other
with respect to this Lease, then all costs and expenses, including without limitation, actual
professional fees and costs such as appraisers’, accountants’ and legal fees and costs, incurred by
the party which prevails in such action, whether by final judgment or out of court settlement,
shall be paid by the other party, which obligation on the part of the other party shall be deemed
to have accrued on the date of the commencement of such action and shall be enforceable whether or
not the action is prosecuted to judgment. As used herein, legal fees and costs shall include,
without limitation, legal fees, costs and

-25-

 

expenses incurred in connection with any (i) postjudgment motions; (ii) contempt proceedings; (iii)
garnishment, levy, and debtor and third party examination; (iv) discovery; and (v) bankruptcy
litigation.

(d) Terms and Headings. The words “Landlord” and “Tenant” as used herein shall include the plural
as well as the singular. Words used in any gender include other genders. The paragraph headings
of this Lease are not a part of this Lease and shall have no effect upon the construction or
interpretation of any part hereof.

(e) Time. Time is of the essence with respect to the performance of every provision of this Lease
in which time of performance is a factor.

(f) Prior Agreement; Amendments. This Lease constitutes and is intended by the parties to be a
final, complete and exclusive statement of their entire agreement with respect to the subject
matter of this Lease. This Lease supersedes any and all prior and contemporaneous agreements and
understandings of any kind relating to the subject matter of this Lease. There are no other
agreements, understandings, representations, warranties, or statements, either oral or in written
form, concerning the subject matter of this Lease. No alteration, modification, amendment or
interpretation of this Lease shall be binding on the parties unless contained in a writing which is
signed by both parties.

(g) Separability. The provisions of this Lease shall be considered separable such that if any
provision or part of this Lease is ever held to be invalid, void or illegal under any law or
ruling, all remaining provisions of this Lease shall remain in full force and effect to the maximum
extent permitted by law.

(h) Recording. Neither Landlord nor Tenant shall record this Lease nor a short form memorandum
thereof without the consent of the other.

(i) Counterparts. This Lease may be executed in one or more counterparts, each of which shall
constitute an original and all of which shall be one and the same agreement.

(j) Intentionally Deleted.

(k) Non-Discrimination. Tenant acknowledges and agrees that there shall be no discrimination
against, or segregation of, any person, group of persons, or entity on the basis of race, color,
creed, religion, age, sex, marital status, national origin, or ancestry in the leasing, subleasing,
transferring, assignment, occupancy, tenure, use, or enjoyment of the Premises, or any portion
thereof.

39. EXECUTION OF LEASE.

(a) Joint and Several Obligations. If more than one person executes this Lease as Tenant, their
execution of this Lease will constitute their covenant and agreement that (i) each of them is
jointly and severally liable for the keeping, observing and performing of all of the terms,
covenants, conditions, provisions and agreements of this Lease to be kept, observed and performed
by Tenant, and (ii) the term “Tenant” as used in this Lease means and includes each of them jointly
and severally. The act of or notice from, or notice or refund to, or the signature of any one or
more of them, with respect to the tenancy of this Lease, including, but not limited to, any
renewal, extension, expiration, termination or modification of this Lease, will be binding upon
each and all of the persons executing this Lease as Tenant with the same force and effect as if
each and all of them had so acted or so given or received such notice or refund or so signed.

(b) Tenant as Corporation or Partnership. If Tenant executes this Lease as a corporation or
partnership, then Tenant and the persons executing this Lease on behalf of Tenant represent and
warrant that such entity is duly qualified and in good standing to do business in Colorado and that
the individuals executing this Lease on Tenant’s behalf are duly authorized to execute and deliver
this Lease on its behalf, and in the case of a corporation, in accordance with a duly adopted
resolution of the board of

-26-

 

directors of Tenant, a copy of which is to be delivered to Landlord on execution hereof, if
requested by Landlord, and in accordance with the by-laws of Tenant, and, in the case of a
partnership, in accordance with the partnership agreement and the most current amendments thereto,
if any, copies of which are to be delivered to Landlord on execution hereof, if requested by
Landlord, and that this Lease is binding upon Tenant in accordance with its terms.

(c) Examination of Lease. Submission of this instrument by Landlord to Tenant for examination or
signature by Tenant does not constitute a reservation of or option for lease, and it is not
effective as a lease or otherwise until execution by and delivery to both Landlord and Tenant.

40. OPTION TERM.

(a) Option Right. Landlord hereby grants the originally named Tenant herein (or any affiliate to
which this Lease has been assigned pursuant to Subparagraph 24(c) above (a “Permitted Assignee”)),
two (2) options to extend the Term for a period of five (5) years each (the “Option Terms”), which
options shall be exercisable only by written notice delivered by Tenant to Landlord as provided
below, provided that, as of the date of delivery of such notice, Tenant is not in default under
this Lease beyond any applicable cure period and Tenant has not previously been in default under
this Lease beyond any applicable cure period more than once in the prior twelve (12) months. Upon
the proper exercise of such option to extend, and provided that, as of the end of the initial Term
or the first Option Term, as the case may be, Tenant is not in default under this Lease beyond any
applicable cure period and Tenant has not previously been in default beyond any applicable cure
period under this Lease more than once in the prior twelve (12) months, the Term, as it applies to
the Premises, shall be extended for a period of five (5) years at the monthly base rent and on the
other terms set forth in Subparagraph 40(b) below. The rights contained in this Paragraph 40 shall
be personal to Tenant or a Permitted Assignee.

(b) Option Rent. The monthly base rent payable by Tenant during the Option Term (the “Option
Rent”) shall be equal to rent at which tenants, as of the commencement of the Option Term, will be
leasing non-sublease space comparable in size, location and quality to the Premises, for a
comparable term, which comparable space is located in other comparable buildings in Boulder,
Colorado; provided, however, that in no event will Option Rent be less than the Monthly Base Rent
payable by Tenant for the last year of the initial term of this Lease. All other terms and
conditions of this Lease shall apply throughout the Option Term; however, any obligation of
Landlord to construct tenant improvements or provide an allowance (if applicable) shall not apply
during the Option Term and Tenant shall, in no event, have the option to extend the Term beyond the
Option Term described in Subparagraph 40(a) above.

(c) Exercise of Option. The options contained in this Paragraph 40 shall be exercised by Tenant,
if at all, and only in the following manner: (i) Tenant shall deliver written notice to Landlord
no less than twelve (12) months prior to the expiration of the initial Term or the first Option
Term, as the case may be, stating that Tenant is exercising its option; (ii) Landlord, after
receipt of Tenant’s notice, shall deliver notice (the “Option Rent Notice”) to Tenant not less than
five (5) months prior to the expiration of the initial Term, setting forth the Option Rent; and
(iii) if Tenant wishes to object to the Option Rent, Tenant shall, on or before the earlier of (A)
the date occurring four (4) months prior to the expiration of the initial Term and (B) the date
occurring thirty (30) days after Tenant’s receipt of the Option Rent Notice deliver written notice
thereof to Landlord, in which case the parties shall follow the procedure, and the Option Rent
shall be determined, as set forth in Subparagraph 40(d) below.

(d) Determination of Option Rent. In the event Tenant timely and appropriately objects to the
Option Rent, Landlord and Tenant shall attempt to agree upon the Option Rent using their best
good-faith efforts. If Landlord and Tenant fail to reach agreement within ten (10) business days
following Tenant’s objection to the Option Rent, (the “Outside Agreement Date”), then each party
shall make a separate determination of the Option Rent, as the case may be, within five (5)
business days, and such determinations shall be submitted to arbitration in accordance with
Subparagraphs (i) through (vii) below.

(i) Landlord and Tenant shall each appoint one arbitrator who shall by profession be a licensed
real estate appraiser who shall have been active over the five (5) year period ending on the date
of such

-27-

 

appointment in the leasing of commercial properties in Boulder, Colorado. The determination of the
arbitrators shall be limited solely to the issue area of whether Landlord’s or Tenant’s submitted
Option Rent, is the closest to the actual Option Rent as determined by the arbitrators, taking into
account the requirements of Subparagraph 40(b) above. Each such arbitrator shall be appointed
within fifteen (15) business days after the applicable Outside Agreement Date.

(ii) The two arbitrators so appointed shall within ten (10) business days of the date of the
appointment of the last appointed arbitrator agree upon and appoint a third arbitrator who shall be
qualified under the same criteria set forth hereinabove for qualification of the initial two
arbitrators.

(iii) The three arbitrators shall within thirty (30) days of the appointment of the third
arbitrator reach a decision as to whether the parties shall use Landlord’s or Tenant’s submitted
Option Rent, and shall notify Landlord and Tenant thereof.

(iv) The decision of the majority of the three arbitrators shall be binding upon Landlord and
Tenant.

(v) If either Landlord or Tenant fails to appoint an arbitrator within fifteen (15) business days
after the applicable Outside Agreement Date, the arbitrator appointed by one of them shall reach a
decision, notify Landlord and Tenant thereof, and such arbitrator’s decision shall be binding upon
Landlord and Tenant.

(vi) If the two arbitrators fail to agree upon and appoint a third arbitrator, or both parties fail
to appoint an arbitrator, then the appointment of the third arbitrator or any arbitrator shall be
dismissed and the matter to be decided shall be forthwith submitted to arbitration under the
provisions of the American Arbitration Association, but subject to the instruction set forth in
this Subparagraph 40(d).

(vii) The cost of arbitration (including, without limitation, reasonable legal fees) shall be paid
by the non-prevailing party.

41. ROOF RIGHTS.

Landlord and Tenant agree that with Landlord’s consent, which shall not be unreasonably withheld,
and subject to Tenant executing Landlord’s then current form Roof License Agreement, Tenant shall
have the right to use the roof of the Building for installation of such equipment, antennas,
transmission devices, satellite dishes and the like. The foregoing rights of installation shall be
at no additional rental charge to Tenant.

42. WAIVER OF JURY TRIAL.

LANDLORD AND TENANT HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT
TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON CONTRACT, TORT OR
OTHERWISE) BETWEEN OR AMONG THE PARTIES ARISING OUT OF OR IN ANY WAY RELATED TO THIS LEASE, AND ANY
OTHER RELATED DOCUMENT, OR ANY RELATIONSHIP BETWEEN THE PARTIES.

43. TERMINATION OF EXISTING LEASE.

Effective as of the Commencement Date, that certain lease dated as of January 7, 2002, as amended
(as amended, the “Existing Lease”), between Landlord (as successor in interest to Eastside
Properties, LLC (“Prior Landlord”)), as landlord, and Tenant (as successor in interest to Colorado
Medtech, Inc.), as tenant, shall terminate; provided, however, that Tenant shall not be relieved of
any of its obligations under the Existing Lease accruing prior to such termination of the Existing
Lease and Tenant’s indemnification obligations under the Existing Lease shall survive the
termination of the Existing Lease with regard to events occurring prior to such termination.
Notwithstanding anything to the contrary contained in Paragraph 7 hereof, the security deposit in
the amount of $1,580,000 currently held by Prior Landlord as a security deposit under the Existing
Lease (“Existing Deposit”) shall be released from Prior Landlord to

-28-

 

Landlord as of the date hereof and, on account thereof, $1,500,000 of the Existing Deposit shall be
applied by Landlord to the Security Deposit provided for in Subparagraph 1.1(m) and Paragraph 7
hereof. The difference between the Existing Deposit and the Security Deposit is referred to herein
as the “Excess Deposit.” Tenant hereby relinquishes all rights to the return of the Excess
Deposit, such amount shall be retained by Landlord.

IN WITNESS WHEREOF, the parties have caused this Lease to be duly executed by their duly authorized
representatives as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	TENANT:	 	LANDLORD:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	HEI, INC.,
a Minnesota corporation	 	BOULDER INVESTORS, LLC, a Virginia limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	BOULDER INVESTORS MANAGER, LLC, a Virginia limited liability company, its managing member
	By:
	 	/s/ Mack Traynor, III	 	 	 	 	 	 	 	 
	 	 	
 	 	 	 	 	 	 	 	 
	

	 	Print Name:	 	Mack Traynor, III	 	 	 	 	 	 	 	 
	

	 	 	 	
 	 	 	 	 	 	 	 	 
	

	 	Print Title:	 	President & CEO	 	 	 	 	 	 	 	 
	

	 	 	 	
 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	TITAN REALTY INVESTORS, LLC, a California limited liability company, its managing member
	By:
	 	/s/ Douglas J. Nesbit	 	 	 	 	 	 	 	 
	 	 	
 	 	 	 	 	 	 	 	 
	

	 	Print Name:	 	Douglas J. Nesbit	 	 	 	 	 	 	 	 
	

	 	 	 	
 	 	 	 	 	 	 	 	 
	

	 	Print Title:	 	CFO	 	 	 	 	 	 	 	 
	

	 	 	 	
 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	By:	 	/s/ Kevin P. Kaseff
	

	 	 	 	 	 	 	 	 	 	 	 	
 
	

	 	 	 	 	 	 	 	 	 	 	 	Kevin P. Kaseff
	

	 	 	 	 	 	 	 	 	 	 	 	Managing Member

-29-

 

EXHIBIT A

LEGAL DESCRIPTION

Lot 5,

CORPORATE PLACE,

according to the Plat recorded November 26, 1999 as Reception No. 2001876 in Planfile P-49 F — 4 #13,

County of Boulder, State of Colorado

EXHIBIT “A-II”

-1-

 

EXHIBIT B

WORK LETTER AGREEMENT

     This Work Letter (this “Work Letter”), which is attached as Exhibit B to that certain Lease
(the “Lease”) dated October 1, 2004, between Boulder Investors, LLC, a Virginia limited liability
company (“Landlord”), and HEI, Inc., a Minnesota corporation (“Tenant”), sets forth the terms and
conditions relating to the construction of the tenant improvements in the Building. Capitalized
terms not otherwise defined herein shall have the meanings set forth in the Lease.

     1. The Shell Space. Landlord and Tenant hereby acknowledge that, following the
Commencement Date, Tenant intends to make certain improvements to the approximately 48,000 square
foot portion of the Building that is currently in shell condition as of the Commencement Date (the
“Shell Space”). Tenant shall make the improvements to the Shell Space in two phases. At such time
as Tenant is preparing a portion of the Shell Space associated with one of the two phases for
occupancy, such improvements shall be conducted in accordance with this Exhibit B. After both
phases of improvements are complete, all alterations or improvements to the Shell Space shall be
conducted in accordance with the terms of Paragraph 13 of the Lease. Tenant shall improve the
entire Shell Space using Building standard materials and finishes in accordance with the terms of
this Exhibit B which shall be applicable to each phase of improvements.

     2. Construction Drawings.

          (a) Selection of Architect/Construction Drawings. Tenant shall retain an
architect/space planner approved in writing by Landlord (the “Architect”) to prepare the
“Construction Drawings,” as that term is defined in this Section 2. Tenant shall retain
engineering consultants approved in writing by Landlord (the “Engineers”) to prepare all plans and
engineering working drawings relating to any structural, mechanical, electrical, plumbing, HVAC,
life safety, and sprinkler work in the Shell Space. The plans and drawings to be prepared by
Architect and the Engineers hereunder shall be known collectively as the “Construction Drawings.”
All Construction Drawings shall comply with the drawing format and specifications determined by
Landlord, and shall be subject to Landlord’s approval. Tenant and Architect shall verify, in the
field, the dimensions and conditions as shown on the relevant portions of the base building plans,
and Tenant and Architect shall be solely responsible for the same, and Landlord shall have no
responsibility in connection therewith. Landlord’s review of the Construction Drawings as set
forth in this Section 1, shall be for its sole purpose and shall not imply Landlord’s review of the
same, or obligate Landlord to review the same, for quality, design, code compliance or other like
matters. Accordingly, notwithstanding that any Construction Drawings are reviewed by Landlord or
its space planner, architect, engineers and consultants, and notwithstanding any advice or
assistance which may be rendered to Tenant by Landlord or Landlord’s space planner, architect,
engineers, and consultants, Landlord shall have no liability whatsoever in connection therewith and
shall not be responsible for any omissions or errors contained in the Construction Drawings, and
Tenant’s waiver and indemnity set forth in this Lease shall specifically apply to the Construction
Drawings.

          (b) Final Space Plan. Tenant shall supply Landlord with two (2) copies signed by
Tenant of its final space plan for each phase of the Shell Space improvements before any
architectural working drawings or engineering drawings have been commenced for such phase. The
final space plan (the “Final Space Plan”) for each phase of improvements shall include a layout and
designation of all offices, rooms and other partitioning, their intended use, and equipment to be
contained therein. Landlord may request clarification or more specific drawings for special use
items not included in the Final Space Plan. Landlord shall advise Tenant if the same is
unsatisfactory or incomplete in any respect. If Tenant is so advised, Tenant shall promptly cause
the Final Space Plan to be revised to correct any deficiencies or other matters Landlord may
reasonably require.

          (c) Final Working Drawings. After the Final Space Plan for a phase of improvements
has been approved by Landlord, Tenant shall supply the Engineers with a complete listing of
standard and non-standard equipment and specifications, including, without limitation, B.T.U.
calculations,

EXHIBIT “C”

-1-

 

electrical requirements and special electrical receptacle requirements for the Shell Space, to
enable the Engineers and the Architect to complete the “Final Working Drawings” (as that term is
defined below) for such phase of improvements in the manner as set forth below. Upon the approval
of the Final Space Plan by Landlord and Tenant, Tenant shall promptly cause the Architect and the
Engineers to complete the architectural and engineering drawings for the Shell Space, and Architect
shall compile a fully coordinated set of architectural, structural, mechanical, electrical and
plumbing working drawings in a form which is complete to allow subcontractors to bid on the work
and to obtain all applicable permits (collectively, the “Final Working Drawings”) and shall submit
the same to Landlord for Landlord’s approval. Tenant shall supply Landlord with two (2) copies
signed by Tenant of such Final Working Drawings. Landlord shall advise Tenant if the same is
unsatisfactory or incomplete in any respect. If Tenant is so advised, Tenant shall immediately
revise the Final Working Drawings in accordance with such review and any disapproval of Landlord in
connection therewith.

          (d) Approved Working Drawings. The Final Working Drawings for each phase of
improvements shall be approved by Landlord (the “Approved Working Drawings”) prior to the
commencement of construction of the improvements for such phase in the Shell Space by Tenant. The
improvements described in the Approved Working Drawings shall be referred to herein as the “Tenant
Improvements”. After approval by Landlord of the Final Working Drawings, Tenant may submit the
same to the appropriate municipal authorities for all applicable building permits. Tenant hereby
agrees that neither Landlord nor Landlord’s consultants shall be responsible for obtaining any
building permit or certificate of occupancy for the Shell Space and that obtaining the same shall
be Tenant’s responsibility; provided, however, that Landlord shall cooperate with Tenant in
executing permit applications and performing other ministerial acts reasonably necessary to enable
Tenant to obtain any such permit or certificate of occupancy. No changes, modifications or
alterations in the Approved Working Drawings may be made without the prior written consent of
Landlord, which consent may not be unreasonably withheld.

     3. Construction.

          (a) Tenant’s Selection of Contractors.

               (i) The Contractor. Tenant shall retain a licensed contractor for each phase
of improvements approved in writing by Landlord (the “Contractor”), which approval shall not
be unreasonably withheld or delayed, to construct the Tenant Improvements.

               (ii) Tenant’s Agents. All subcontractors, laborers, materialmen, and suppliers
used by Tenant (such subcontractors, laborers, materialmen, and suppliers, and the
Contractor to be known collectively as “Tenant’s Agents”) must be approved in writing by
Landlord, which approval shall not be unreasonably withheld or delayed. If Landlord does
not approve any of Tenant’s proposed subcontractors, laborers, materialmen or suppliers,
Tenant shall submit other proposed subcontractors, laborers, materialmen or suppliers for
Landlord’s written approval.

          (b) Construction Contract; Cost Budget. Prior to Tenant’s execution of the
construction contract and general conditions with Contractor (the “Contract”) for each phase of
improvements, Tenant shall submit the Contract to Landlord for its approval, which approval shall
not be unreasonably withheld or delayed. Prior to the commencement of the construction of the
Tenant Improvements, and after Tenant has accepted all bids for the Tenant Improvements for such
phase, Tenant shall provide Landlord with a detailed breakdown, by trade, of the final costs to be
incurred or which have been incurred in connection with the design and construction of the Tenant
Improvements to be performed by or at the direction of Tenant or the Contractor, which costs form a
basis for the amount of the Contract.

          (c) Landlord’s General Conditions for Tenant’s Agents and Tenant Improvement Work.
Tenant’s and Tenant’s Agent’s construction of the Tenant Improvements shall comply with the
following: (i) the Tenant Improvements shall be constructed in strict accordance with the Approved

EXHIBIT “C”

-2-

 

Working Drawings; (ii) Tenant’s Agents shall submit schedules of all work relating to the
Tenant’s Improvements to Contractor and Contractor shall, within five (5) business days of receipt
thereof, inform Tenant’s Agents of any changes which are necessary thereto, and Tenant’s Agents
shall adhere to such corrected schedule; and (iii) Tenant shall abide by all reasonable rules made
by Landlord’s building manager with respect to the any matter in connection with this Tenant Work
Letter, including, without limitation, the construction of the Tenant Improvements. Tenant’s
indemnity of Landlord as set forth in the Lease shall also apply with respect to any and all costs,
losses, damages, injuries and liabilities related in any way to any act or omission of Tenant or
Tenant’s Agents, or anyone directly or indirectly employed by any of them, or in connection with
Tenant’s non-payment of any amount arising out of the Tenant Improvements and/or Tenant’s
disapproval of all or any portion of any request for payment. Such indemnity by Tenant, as set
forth in the Lease, shall also apply with respect to any and all costs, losses, damages, injuries
and liabilities related in any way to Landlord’s performance of any ministerial acts reasonably
necessary (i) to permit Tenant to complete the Tenant Improvements, and (ii) to enable Tenant to
obtain any building permit or certificate of occupancy for the Shell Space.

          (d) Insurance Requirements.

               (i) General Coverages. All of Tenant’s Agents shall carry worker’s
compensation insurance covering all of their respective employees, and shall also carry
public liability insurance, including property damage, all with limits, in form and with
companies as are required to be carried by Tenant as set forth in the Lease.

               (ii) Special Coverages. Tenant shall carry builder’s risk insurance covering
the total completed value including any “soft costs” with respect to the Tenant Improvements
(on a completed value, non-reporting basis), replacement cost of work performed and
equipment, supplies and materials furnished in connection with such construction of the
Tenant Improvements, together with such “soft cost” endorsements and such other endorsements
as Landlord may require and general liability, worker’s compensation and automobile
liability insurance with respect to the improvements being constructed, altered or repaired.

               (iii) General Terms. Certificates for all insurance carried pursuant to this
Section 3(d) shall be delivered to Landlord before the commencement of construction of the
Tenant Improvements and before the Contractor’s equipment is moved onto the site. All such
policies of insurance must contain a provision that the company writing said policy will
give Landlord thirty (30) days prior written notice of any cancellation or lapse of the
effective date or any reduction in the amounts of such insurance. In the event that the
Tenant Improvements are damaged by any cause during the course of the construction thereof,
Tenant shall immediately repair the same at Tenant’s sole cost and expense. Tenant’s Agents
shall maintain all of the foregoing insurance coverage in force until the Tenant
Improvements are fully completed and accepted by Landlord. All policies carried under this
Section 3(d) shall insure Landlord (and any other party designed by Landlord) and Tenant, as
their interests may appear, as well as Contractor and Tenant’s Agents. All insurance,
except Workers’ Compensation, maintained by Tenant’s Agents shall preclude subrogation
claims by the insurer against anyone insured thereunder. Such insurance shall provide that
it is primary insurance as respects Landlord and that any other insurance maintained by
Landlord is excess and noncontributing with the insurance required hereunder. The
requirements for the foregoing insurance shall not derogate from the provisions for
indemnification of Landlord by Tenant under this Tenant Work Letter. Landlord may, in its
reasonable discretion, require Tenant to obtain a lien and completion bond or some alternate
form of security satisfactory to Landlord in an amount sufficient to ensure the lien-free
completion of the Tenant Improvements and naming Landlord as a co-obligee.

               (iv) Governmental Compliance. The Tenant Improvements shall comply in all
respects with the following: (i) all state, federal, city or quasi-governmental laws,
codes, ordinances and regulations, as each may apply according to the rulings of the
controlling public official, agent or other person; (ii) applicable standards of the
American Insurance Association (formerly, the National Board of Fire Underwriters) and the
National Electrical Code; and

EXHIBIT “C”

-3-

 

(iii) building material manufacturer’s specifications.

          (e) Copy of Record Set of Plans. At the conclusion of construction of each phase of
improvements, (i) Tenant shall cause the Architect and Contractor (A) to update the Approved
Working Drawings as necessary to reflect all changes made to the Approved Working Drawings during
the course of construction, (B) to certify to the best of their knowledge that the “record-set” of
as-built drawings are true and correct, which certification shall survive the expiration or
termination of this Lease, and (C) to deliver to Landlord two (2) sets of copies of such record set
of drawings within ninety (90) days following issuance of a certificate of occupancy for the Shell
Space, and (ii) Tenant shall deliver to Landlord a copy of all warranties, guaranties, and
operating manuals and information relating to the improvements, equipment, and systems in the Shell
Space.

     4. Tenant Improvement Allowance.

          (a) Tenant Improvement Allowance. Tenant shall be entitled to a tenant improvement
allowance (the “Tenant Improvement Allowance”) in an amount of up to Seven Hundred Thousand Dollars
($700,000.00) for architecture and engineering fees, permit fees, construction management fees and
construction costs relating to the design and construction of the Tenant Improvements. Tenant
acknowledges that the Tenant Improvement Allowance is to be used for the improvement of the entire
Shell Space. Therefore, unless otherwise agreed to in writing by Landlord and Tenant, for each
phase of improvements, Tenant shall be entitled to the amount of the Tenant Improvement Allowance
available for disbursement reduced on a pro rata basis in the proportion of the total square
footage of the Shell Space corresponding to such phase of improvements versus that the total square
footage of the Shell Space (each referred to herein as a “Phase Tenant Improvement Allowance”).
For example, if the first phase of improvements are to be made in an area of the Shell Space
consisting of 24,000 square feet, Tenant will be entitled to a Phase Tenant Improvement Allowance
in the amount of Three Hundred and Fifty Thousand Dollars ($350,000.00) for the first phase of
improvements which shall be disbursed in accordance with this Section 4, and a Phase Tenant
Improvement Allowance of equal amount would remain available for disbursement in conjunction with
the second phase of improvements.

          (b) Disbursement of the Tenant Improvement Allowance. During the construction of the
Tenant Improvements, Landlord shall make disbursements of the Phase Tenant Improvement Allowances
as follows:

               (i) Once the build-out of the Shell Space is fifty percent (50%) complete, Landlord
shall disburse fifty percent (50%) of the Phase Tenant Improvement Allowance upon receipt of
the following: (A) a certification of the Contractor approved by Tenant, in a form to be
provided by Landlord, showing the schedule, by trade, of percentage of completion of the
Tenant Improvements for such phase in the Shell Space, detailing the portion of the work
completed and the portion not completed; (B) invoices from all of Tenant’s Agents for labor
rendered and materials delivered to the Shell Space in connection with such Tenant
Improvements; and (C) executed partial lien releases from all of Tenant’s Agents which shall
comply with the appropriate provisions, as reasonably determined by Landlord, of Colorado
law covering labor rendered and materials delivered to the Shell Space with respect to the
Tenant Improvements. Tenant’s request for payment shall be deemed Tenant’s acceptance and
approval of the work furnished and/or the materials supplied as set forth in Tenant’s
payment request. Landlord shall disburse such fifty percent (50%) portion of the Phase
Tenant Improvement Allowance covered by such request for payment within thirty (30) days
after receipt of the items described in this Section 4(b)(i). Notwithstanding the foregoing
to the contrary, in no event shall the amount of the disbursement of Phase Tenant
Improvement Allowance exceed the aggregate amount of the invoices provided pursuant to
clause (B) above.

               (ii) Once the build-out of the Shell Space for such phase is one hundred percent (100%)
complete, Landlord shall disburse the remaining fifty percent (50%) of the Phase Tenant
Improvement Allowance upon receipt of the following: (A) a Certificate of Occupancy

EXHIBIT “C”

-4-

 

from the City of Boulder; (B) invoices from all of Tenant’s Agents for labor rendered
and materials delivered to the Shell Space with respect to such Tenant Improvements since
the disbursement of the Phase Tenant Improvement Allowance provided in Section 4(b)(i)
above; and (C) executed full and final lien releases from all of Tenant’s Agents which shall
comply with the appropriate provisions, as reasonably determined by Landlord, of Colorado
law, covering all labor rendered and materials delivered to the Shell Space with respect to
the Tenant Improvements. Landlord shall disburse such fifty percent (50%) portion of the
Phase Tenant Improvement Allowance covered by such request for payment within thirty (30)
days after receipt of the items described in this Section 4(b)(ii). Notwithstanding the
foregoing to the contrary, in no event shall the amount of the disbursement of Phase Tenant
Improvement Allowance exceed the aggregate amount of the invoices provided pursuant to
clause (B) above.

               (iii) Notwithstanding anything contained herein to the contrary, Landlord shall not be
required to disburse any portion of the Phase Tenant Improvement Allowance at any time that
Tenant is in default under the terms of the Lease or this Work Letter.

               (iv) The Tenant Improvement Allowance may be used only for architecture and engineering
fees, permit fees, construction management fees and construction costs relating to the
design and construction of the Tenant Improvements. No portion of the Tenant Improvement
Allowance may be applied on account of any other costs or expenses, including, without
limitation, the cost of equipment, trade fixtures, moving expenses, furniture, signage or
free rent.

EXHIBIT “C”

-5-

 

EXHIBIT C

ESTOPPEL CERTIFICATE

     This TENANT ESTOPPEL CERTIFICATE is executed as of the Estoppel Execution Date by Tenant, who
is the current tenant or lessee under that certain written lease agreement (“Lease”) dated as of
the Lease Date by and between Original Landlord and Original Tenant for the lease of the Premises.

Definitions:

	 	 	 	 	 
	Estoppel Execution Date:

	 	                                      ,                     2003
	 	 
	 
	 	 	 	 
	Lease Date:

	 	                                      	 	 
	 
	 	 	 	 
	Tenant:

	 	                                      	 	 
	 
	 	 	 	 
	Landlord:

	 	                                      	 	 
	 
	 	 	 	 
	Premises:

	 	                                      	 	 
	 
	 	 	 	 
	Monthly Base Rental:

	 	                                      	 	 
	 
	 	 	 	 
	Security Deposit:

	 	$	 	 
	 
	 	 	 	 
	Advance Rent:

	 	$	 	 
	 
	 	 	 	 
	Lease Term (incl. Option
Periods Exercised):

	 	                                      	 	 
	 
	 	 	 	 
	Commencement Date:

	 	                                      	 	 
	 
	 	 	 	 
	Expiration Date:

	 	                                      	 	 
	 
	 	 	 	 
	Unexercised Option Periods:

	 	                                      	 	 
	 
	 	 	 	 
	Current Rent Date:

	 	                                      	 	 
	 
	 	 	 	 
	Tenant’s Address for Notices:

	 	                                      

                                      

                                      	 	 

          Tenant represents, warrants, certifies and states to                                                          , a
                                      , and its successors, assignees, and lenders (collectively, “                    ”), each of the
following:

1. A true and correct copy of the Lease and all amendments thereto is attached hereto as Exhibit
“A” incorporated herein by this reference. The Lease is presently in full force and effect and has
not been amended, supplemented, modified or otherwise changed, except pursuant to the written
amendments attached in Exhibit “A” attached hereto.

2. All space and improvements leased by Tenant pursuant to the Lease have been completed and
furnished in accordance with the provisions of the Lease, and Tenant has accepted, taken possession
of, and is currently occupying, the Premises.

3. Landlord has satisfied all commitments made to induce Tenant to enter in the Lease, and to the

EXHIBIT “H”

-1-

 

best of Tenant’s knowledge, Landlord is not in any respect in default in the performance by
Landlord of its obligations under the Lease.

4. Tenant is not in any respect in default or breach of the Lease and has not assigned, sublet,
transferred or hypothecated its interest under the Lease, except as shown on Exhibit “B” attached
hereto and incorporated herein by this reference.

5. The Lease Term commenced on the Commencement Date and expires on the Expiration Date.

6. The Lease provides for no extensions or renewals beyond the Lease Term except the Unexercised
Option Periods. Tenant has not exercised any of the Unexercised Option Periods. Tenant has no
option or preferential right to purchase or lease all or any part of the Premises nor any right,
title or interest with respect to the Premises other than as a tenant or lessee under the Lease.

7. Tenant has no right to cancel the Lease prior to the Expiration Date.

8. Tenant has paid the Monthly Base Rent and all other monetary obligations under the Lease through
the Current Rent Date.

9. There is no period of free rent, rental abatement or reduction, except the Free Rent Periods.
Landlord has not given or conceded to Tenant any other concessions, abatements or compromises, free
rent, rental abatement or reduction with respect to the rental obligations under the Lease.

10. If the Lease requires a security deposit, Tenant has deposited an amount equal to the Security
Deposit with Landlord. No person or entity has guaranteed any portion of Tenant’s obligations
under the Lease.

11. There are no offsets or credits against any rentals payable or which have been paid under the
Lease, and Tenant has made no payment to Landlord as a security deposit or advance or prepaid
rental except any Security Deposit and any Advance Rent and payments made not earlier than ten (10)
days prior to the date upon which such payment is due.

12. Tenant’s current address for receipt of notices, elections, demands or other communications
under the Lease is Tenant’s Address for Notices.

13. Tenant has received no notice of any sale, transfer, pledge, assignment, or hypothecation of
the Lease, or the rentals owed thereunder, by Landlord.

     Tenant makes this statement for the benefit and protection of
          
             and its
successors, assigns, and lenders, with the understanding that each or all of said parties intends
to and may rely on this statement in making a determination about purchasing or financing certain
real property, which real property includes the Premises.

     IN WITNESS WHEREOF, Tenant executes this Tenant Estoppel Certificate as of the Estoppel
Execution Date.

	 	 	 	 	 
	 	 	TENANT:
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	
 
	

	 	Its:	 	 
	

	 	 	 	
 

EXHIBIT “H”

-2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]