Document:

Purchase and Sale Agreement

 Exhibit 10.2 
 PURCHASE AND SALE AGREEMENT 
 AND JOINT ESCROW INSTRUCTIONS 
 THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is made and entered into as of this 7th day of April, 2006, by and between COST PLUS, INC., a California corporation (“Seller”), and INLAND REAL
ESTATE ACQUISITIONS, INC., an Illinois corporation, or assignee (“Buyer”). 
 WITNESSETH THAT: 
 WHEREAS, Buyer wishes to purchase, and Seller wishes to sell, the Property (as hereinafter defined), but only upon the terms and conditions hereinafter
set forth; 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows: 
 Section 1. Definitions and Exhibits. 
 1.1 Definitions. For purposes of this
Agreement, each of the following terms, when used herein with an initial capital letter, shall have the meaning ascribed to it as follows: 
 Agreement. This Purchase and Sale Agreement and Joint Escrow Instructions. 
 Broker. Blickman Turkus, L.P., dba BT Commercial Real Estate. 
 Building. The warehouse building
containing approximately 513,778 square feet, which is located on the Land and known locally as 3610 Airport Way, Stockton, California. 
 Closing. The closing and consummation of the purchase and sale of the Property pursuant hereto, including, without limitation, the recording of the Deed in the records of San Joaquin County, California.

 Closing Date. The date on which the Closing occurs as provided in Section 11.1. 
 Closing Documents. Seller’s Closing Documents (as defined in Section 11.2) together with Buyer’s Closing Documents
(as defined in Section 11.3). 
 Contract Date. The date upon which this Agreement shall be deemed effective,
which shall be the date on which each of Seller and Buyer has executed this 

  

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Agreement and each of them has received a counterpart executed by the other, which date shall be inserted in the blank first above written. 
 Deed. The Grant Deed to be executed by Seller in the form attached hereto and incorporated herein as Exhibit D.

 Earnest Money. The amount deposited by Buyer in escrow with Escrow Agent as earnest money pursuant to the terms and
conditions of Section 3, together with any interest earned thereon (which shall follow principal). 
 Environmental
Matter. Any matter or circumstance related in any manner whatsoever to (i) the disposal or release of solid, liquid or gaseous waste into the environment, (ii) the treatment, storage, disposal or other handling of any Hazardous
Materials, (iii) the placement of structures or materials into waters of the United States, (iv) above-ground or underground storage tanks used for the storage of petroleum, petroleum products, or Hazardous Materials, or (v) the
presence of any Hazardous Materials, including, but not limited to, asbestos, in any building, structure or workplace, which matter or circumstance exists at the Property on or before the Closing Date. 
 Escrow. As defined in Section 3.2. 
 Escrow Agent. Chicago Title & Trust Company in Chicago, Illinois acting as Escrow Agent pursuant to the terms and
conditions of Section 3 and the Escrow Agreement. 
 Escrow Agreement. That certain Earnest Money Escrow Agreement
of even date herewith among Seller, Buyer and Escrow Agent referred to in Section 3 and attached hereto and incorporated herein as Exhibit A. 
 Governmental Requirements. Laws, rules and regulations of federal, state and local governmental authorities having jurisdiction over the Property including, but not limited to, environmental laws, rules and
regulations and zoning laws, rules and regulations. 
 Hazardous Materials. As defined in Section 6.3. 

Improved Land. All that tract or parcel of land described or depicted on Exhibit B-1 attached hereto and incorporated
herein, containing approximately 22.8041 acres. The Improvements are located on the Improved Land. 
 Improvements. The
Building and any other buildings, structures and improvements located upon the Land. 
 Inspection Date. As defined in
Section 6.6. 
 Intangible Interests. All intangible personal property used in the operation of, located at, or
associated with the Property, including without limitation transferable permits, 

  

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licenses, entitlements, certificates, approvals, and consents granted or issued by any governmental or quasi-governmental agency; all warranties and
guarantees, if any, by third parties covering the Property and the improvements, including without limitation all warranties and guarantees by architects, contractors, subcontractors, engineers, and/or vendors; and all rights and claims that Seller
has or may have against third parties with respect to the Property. 
 Land. Collectively, the Improved Land and the
Unimproved Land. 
 Parties. Seller and Buyer, collectively. 
 Permitted Title Exceptions. Those matters approved by Buyer on or before the Inspection Date, those matters identified on
Exhibit C attached hereto and incorporated herein, and, to the extent not included in Exhibit C, current and future property taxes and assessments not yet due and payable, any zoning laws and ordinances, any existing general utility easements
serving the Property and any other rights or interests recorded in the public records where the Land is located. 
 Property. All of Seller’s right, title and interest in, to and under the following property: 
 (i) The
Unimproved Land; 
 (ii) The Improved Land; 
 (iii) The Improvements; 
 (iv) The Intangible Interests; and 
 (v) All rights of way or use, licenses, tenements,
hereditaments, appurtenances and easements now or hereafter belonging or pertaining to any of the foregoing, except those, if any, hereinafter reserved to Seller. 
 Proration Date. The effective date of the prorations provided in Section 4.2, which is 11:59 p.m. on the eve of the Closing
Date. 
 Purchase Price. The purchase price for the Property described in Section 4.1. 
 Seller Related Parties. As defined in Section 18.13. 
 Title Commitment. As defined in Section 5. 
 Title Insurer. Chicago Title & Trust Company. 
 Unimproved Land. All those tracts or parcels of land described in Exhibit B-2 attached hereto and incorporated herein,
containing approximately 56.5492 acres. 
  

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 1.2 Exhibits. Attached hereto and forming an integral part of this Agreement are the following
exhibits, all of which are incorporated into this Agreement as fully as if the contents thereof were set out in full herein at each point of reference thereto: 
  

			
	Exhibit A -	  	Escrow Agreement
	Exhibit B-1 -	  	Description of Improved Land
	Exhibit B-2 -	  	Description of Unimproved Land
	Exhibit C -	  	Permitted Title Exceptions
	Exhibit D -	  	Form of Grant Deed
	Exhibit E -	  	Non-Foreign Certificate
	Exhibit F-	  	General Assignment

 Section 2. Purchase and Sale. Subject to and in accordance with the terms and
provisions hereof, Seller agrees to sell and Buyer agrees to purchase the Property. 
 Section 3. Deposit; Opening of
Escrow. 
 3.1 Earnest Money. Buyer shall deposit into Escrow the sum of ONE MILLION DOLLARS ($1,000,000) (the
“Deposit”) upon full execution of this Agreement. The Deposit and all interest accruing thereon shall be referred to collectively as the “Earnest Money”. The Escrow Agent shall invest the Earnest Money in an interest bearing
account of an FDIC-insured bank, and the Earnest Money shall be held by Escrow Agent in the Escrow until applied at Closing in accordance with this Agreement or until the Earnest Money is otherwise disbursed in accordance with this Agreement. The
Earnest Money shall be retained or refunded, as the case may be, in accordance with the terms of this Agreement and, except if Buyer defaults on its obligations under this Agreement resulting in termination of this Agreement by Seller, shall be
applied as a credit against the Purchase Price at Closing. Notwithstanding the foregoing, Buyer may unilaterally withdraw the Earnest Money on or before the Inspection Date in which event this Agreement shall automatically terminate. Seller and
Buyer agree to sign all forms required by Escrow Agent for the holding and investing of the Earnest Money, such as IRS and bank account forms, and for such purposes the Earnest Money shall be considered the property of Buyer until such time as
Escrow Agent disburses the Earnest Money to either Seller or Buyer pursuant to this Agreement. The preceding sentence shall not change in any way the other provisions in this Agreement concerning the holding and disbursing of the Earnest Money.

 3.2 Escrow. Concurrently with the execution of this Agreement, Buyer and Seller shall open an escrow (“Escrow”) with
Escrow Agent, whose address is: 171 N. Clark Street, Chicago, Illinois 60601, Attention: Nancy Castro, Telephone: 312-223-2709, Facsimile: 312-223-2108. 
  

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 3.3 Escrow Instructions. The terms and conditions set forth in this Agreement shall constitute
both an agreement between Seller and Buyer and escrow instructions for the Escrow Agent. If there is any conflict or inconsistency between this Agreement and any separate or additional escrow instructions required by Escrow Agent (“Additional
Instructions”), this Agreement shall prevail and govern. The Additional Instructions shall not modify or amend the provisions of this Agreement unless otherwise expressly set forth by mutual written instructions or consent of Buyer and Seller.
As used in this Agreement, “Opening of Escrow” means delivery of fully executed copies, or counterparts, of this Agreement and any Additional Instructions to Escrow Agent, along with the Earnest Money, and Escrow shall be deemed opened by
Escrow Agent as of the date of delivery to Escrow Agent of all such documents and funds. Escrow Agent shall deliver written notice to the Parties specifying the date upon which Escrow opened hereunder. 
 Section 4. Purchase Price. 
 4.1 Purchase Price. The purchase price (the “Purchase Price”) for the Property shall be THIRTY TWO MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($32,750,000). 
 The Purchase Price, as adjusted by the prorations provided in Section 4.2 and as reduced by the Earnest Money (which, unless otherwise disbursed
hereunder, shall be disbursed by Escrow Agent at the Closing to Seller as a portion of the Purchase Price), shall be deposited by Buyer with the Escrow Agent at the Closing in United States dollars, by Federal Reserve System wire transfer or other
immediately available funds acceptable to Escrow Agent. 
 4.2 Prorations. The following items shall be prorated between Seller and
Buyer as of the Proration Date, and prorations favoring Buyer, to the extent determinable as of the Proration Date, shall reduce the Purchase Price payable by Buyer at the Closing, and such prorations favoring Seller, to the extent determinable as
of the Proration Date, shall increase the Purchase Price payable by Buyer at the Closing: 
 4.2.1 State, county and local
property taxes and assessments of every nature (including, without limitation, payments for Mello Roos bonds and Community Facilities District assessments) for the year or tax period of Closing. If the actual tax bills have not been issued, then
such proration shall be based on such taxes for the prior year or tax period. After the tax bills for the year or tax period of Closing are received by either Buyer or Seller, Buyer and Seller shall adjust such proration, and any amount then owing
shall be paid within twenty (20) days of demand by the party entitled thereto. 
 4.2.2 Sanitary sewer taxes, assessments
and utility charges, if any. 
 4.2.3 Operating expenses of the Property, if any. 
 4.2.4 If the parties make any errors in the closing prorations or if they subsequently determine that any dollar amount prorated is or was
incorrect, each agrees, upon 

  

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notice from the other within six (6) months after the Closing, to make any adjustment necessary to correct the error, including payment of any amount to
the other then determined to be owing. 
 Buyer and Seller shall promptly pay to the other party any amount due to the other party as a result of any
proration required under this Section 4.2. All amounts due hereunder shall be payable no later than twenty (20) days after demand by the payee. The terms and conditions set forth in this Section 4.2 shall expressly survive the Closing
hereunder only for the period of time necessary to achieve final prorations of all amounts due and owing hereunder, but in any event no later than two (2) years after the Closing. 
 Section 4.3. Holdback Amount. The sum of TWO MILLION NINE HUNDRED SEVENTY THOUSAND NINE HUNDRED TWENTY-SIX DOLLARS ($2,970,926)
(the “Holdback Amount”) shall be retained in Escrow until such time as Escrow Agent records a grant deed from Buyer to Seller reconveying the Remainder Parcel (as defined in the “Subground Lease” of even date herewith by and
between Seller, as Lessee, and Inland Western Stockton Ground Tenant, L.L.C. (“IWSGT”), as Lessor); in which event, the Holdback Amount, together with all interest accrued thereon, shall be returned to Buyer. If Seller is unable, after
using its diligent, good faith efforts, to subdivide the Remainder Parcel from the Total Parcel (as defined in the Subground Lease) within twelve (12) months after the Closing Date, Buyer and Seller shall deliver written instructions to Escrow
Agent to disburse the Holdback Amount in accordance with the provisions of Section 4.4(b) of the Subground Lease. 
 Section 5. Title to the Property. Seller shall convey good and insurable title to the Land and the Improvements to Buyer in the form of the Deed, which shall expressly be made subject to the Permitted Title Exceptions.
Buyer shall obtain a current Urban ALTA/ACSM spotted survey (the “Survey”) in accordance with the minimum standard detail requirements for ALTA/ACSM Land Title surveys established and adopted by ALTA and ACSM in 1999 including all Title A
Optional Responsibilities Items 1-4, 6, 7(a), (b)(1), (c), 8, 9, 10, 11(a), 12-16 certified to Buyer, its successors and assigns, lenders and the Title Company. Additionally, Buyer shall obtain from the Title Insurer an owner’s title insurance
commitment on the current ALTA Extended Coverage form, in the amount of the Purchase Price and naming Buyer as the proposed insured (the “Title Commitment”), together with copies of all documents shown in the Title Commitment as exceptions
to the title to the Property. Buyer shall have ten (10) calendar days after receipt of the Survey, Title Commitment and copies of all exceptions to give written notice to Seller of any objections which Buyer may have to the title to the
Property. If Buyer fails to give any notice to Seller by such date, Buyer shall be deemed to have waived such right to object to any title exceptions or defects except with respect to title exceptions or defects of which Buyer receives notice
following its required time to notify Seller. If Buyer does give Seller timely notice of objection to any other title exceptions or defects, Seller shall then have the right, but not the obligation, for a period of five (5) calendar days after
such notice, to reasonably cure or satisfy such objection. The procurement by Seller, at its sole expense, of an endorsement to the Title Commitment, insuring Buyer against any title exceptions or defects, shall be deemed a cure by Seller of such
exception or defect. Notwithstanding the foregoing, Seller shall in all events be required to cure, at or before the Closing, monetary liens in a definite and ascertainable amount and all other title exceptions or defects caused by Seller’s
intentional and wrongful acts that may be cured by the payment of money. If such objection is not so timely 

  

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and reasonably cured, then Buyer shall, within five (5) calendar days thereafter, elect, by written notice given to Seller on or before such fifth
(5th) day, either to (a) terminate this Agreement, in which case the Earnest Money shall be returned to Buyer by Escrow Agent, and the parties shall have no further rights or obligations hereunder, except for those which expressly survive
any such termination, or (b) waive its objections hereunder and proceed with the transaction pursuant to the remaining terms and conditions of this Agreement. If Buyer fails to give Seller notice of its election by such time, it shall be deemed
to have elected the option contained in subparagraph (b) above. If Seller does so reasonably cure or satisfy such objection, then this Agreement shall continue in full force and effect. Buyer shall have the right at any time to waive any
objections that it may have made and, thereby, to preserve this Agreement in full force and effect. 
 Section 6. Limitation
on Warranties and Buyer’s Inspection. 
 6.1 Disclaimer of Representations and Warranties by Seller. BUYER HEREBY
ACKNOWLEDGES AND AGREES THAT THE SALE OF THE PROPERTY HEREUNDER IS AND WILL BE MADE ON AN “AS IS, WHERE IS” BASIS AND THAT EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT, SELLER HAS NOT MADE, DOES NOT MAKE AND
SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT, FUTURE OR OTHERWISE, OF, AS TO, CONCERNING OR WITH RESPECT TO, THE
PROPERTY, INCLUDING, WITHOUT LIMITATION, (i) ENVIRONMENTAL MATTERS RELATING TO THE PROPERTY OR ANY PORTION THEREOF, (ii) GEOLOGICAL CONDITIONS, INCLUDING, WITHOUT LIMITATION, SUBSIDENCE, SUBSURFACE CONDITIONS, WATER TABLE CONDITIONS,
UNDERGROUND WATER RESERVOIRS, AND LIMITATIONS REGARDING THE WITHDRAWAL OF WATER AND FAULTING, (iii) WHETHER OR NOT AND TO THE EXTENT TO WHICH THE PROPERTY OR ANY PORTION THEREOF IS AFFECTED BY ANY STREAM (SURFACE OR UNDERGROUND), BODY OF WATER,
FLOOD PRONE AREA, FLOOD PLAIN, FLOODWAY OR SPECIAL FLOOD HAZARD, (iv) DRAINAGE ISSUES, CONDITIONS OR PROBLEMS, (v) SOIL CONDITIONS, INCLUDING THE EXISTENCE OF INSTABILITY, PAST SOIL REPAIRS, SOIL ADDITIONS OR CONDITIONS OF SOIL FILL, OR
SUSCEPTIBILITY TO LANDSLIDES, OR THE SUFFICIENCY OF ANY UNDERSHORING, (vi) THE ZONING OR OTHER LAND USE RESTRICTIONS TO WHICH THE PROPERTY OR ANY PORTION THEREOF MAY BE SUBJECT, (vii) THE AVAILABILITY OF ANY UTILITIES TO THE PROPERTY OR
ANY PORTION THEREOF INCLUDING, WITHOUT LIMITATION, WATER, SEWAGE, GAS AND ELECTRIC SERVICE, (viii) USAGES OF ADJOINING PROPERTY, (ix) ACCESS TO THE PROPERTY OR ANY PORTION THEREOF, (x) THE VALUE, COMPLIANCE WITH THE PLANS AND
SPECIFICATIONS, SIZE, LOCATION, AGE, USE, DESIGN, QUALITY, DESCRIPTION, DURABILITY, STRUCTURAL INTEGRITY, OPERATION, TITLE TO, OR PHYSICAL OR FINANCIAL CONDITION OF, THE PROPERTY, OR ANY PORTION THEREOF, OR ANY INCOME, EXPENSES, CHARGES, LIENS,
ENCUMBRANCES, RIGHTS, OR CLAIMS ON OR AFFECTING, 

  

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OR PERTAINING TO, THE PROPERTY OR ANY PART THEREOF, (xi) THE PRESENCE OF HAZARDOUS MATERIALS (AS MORE FULLY DESCRIBED IN SECTION 6.3 BELOW) IN OR ON,
UNDER OR IN THE VICINITY OF THE PROPERTY, (xii) THE CONDITION OR USE OF THE PROPERTY OR COMPLIANCE OF THE PROPERTY WITH ANY OR ALL PAST, PRESENT OR FUTURE FEDERAL, STATE OR LOCAL ORDINANCES, RULES, REGULATIONS OR LAWS, BUILDING, FIRE OR ZONING
ORDINANCES, CODES OR OTHER SIMILAR LAWS, (xiii) THE EXISTENCE OR NON-EXISTENCE OF UNDERGROUND STORAGE TANKS, (xiv) ANY OTHER MATTER AFFECTING THE STABILITY OR INTEGRITY OF THE LAND OR IMPROVEMENTS, (xv) THE POTENTIAL FOR FURTHER
DEVELOPMENT OF THE PROPERTY, (xvi) THE EXISTENCE OF VESTED LAND USE, ZONING OR BUILDING ENTITLEMENTS AFFECTING THE PROPERTY, AND (xvii) THE MERCHANTABILITY OF THE PROPERTY OR FITNESS OF THE PROPERTY FOR ANY PARTICULAR PURPOSE (BUYER
AFFIRMING THAT BUYER HAS NOT RELIED ON SELLER’S SKILL OR JUDGMENT TO SELECT OR FURNISH THE PROPERTY FOR ANY PARTICULAR PURPOSE, AND THAT SELLER MAKES NO WARRANTY THAT THE PROPERTY IS FIT FOR ANY PARTICULAR PURPOSE). 
 6.2 Inspection by Buyer. Buyer acknowledges that it will complete all physical and financial examinations relating to the acquisition of the
Property hereunder and, subject to the express representations and warranties of Seller contained herein, will acquire the same solely on the basis of such examinations and the title insurance protection afforded by the owner’s title insurance
policy to be issued pursuant to the Title Commitment and not on any information provided or to be provided by Seller. Except as expressly set forth in this Agreement, Seller makes no representation or warranty as to the truth, accuracy or
completeness of any materials, data or information delivered by Seller to Buyer in connection with the transaction contemplated by this Agreement. Buyer acknowledges and agrees that all materials, data and information delivered or made available by
Seller to Buyer in connection with the transaction contemplated by this Agreement are provided to Buyer as a convenience only and that any reliance on or use of such materials, data or information by Buyer shall be at the sole risk of Buyer, except
as otherwise expressly stated herein. Without limiting the generality of the foregoing provisions, Buyer acknowledges and agrees that (a) any environmental or other report with respect to the Property which is delivered or made available by
Seller to Buyer shall be for general informational purposes only, (b) Buyer shall not have any right to rely on any such report delivered or made available by Seller to Buyer, but rather will rely on its own inspections and investigations of
the Property and any reports commissioned by Buyer with respect thereto, and (c) neither Seller, any affiliate of Seller, nor the person or entity which prepared any such report delivered or made available by Seller to Buyer shall have any
liability to Buyer for any inaccuracy in or omission from any such report. Buyer further acknowledges and agrees that any information provided or to be provided with respect to the Property including, without limitation, any due diligence materials,
was obtained from a variety of sources and that, except for the express representations and warranties contained in this Agreement, Seller has not made any independent investigation or verification of such information and makes no representations as
to the accuracy or completeness of such information. Seller shall not be liable for any failure to investigate the Property nor shall Seller be bound in any manner by any verbal or written 

  

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statements, representations, appraisals, environmental assessment reports, or other information pertaining to the Property or the operation thereof,
furnished by Seller or by any real estate broker, attorney, agent, representative, employee, servant or other person acting on Seller’s behalf, except as expressly set forth herein. It is expressly understood and agreed that the amount of the
Purchase Price reflects, and the Property is being sold by Seller and purchased by Buyer subject to, the foregoing disclaimers, which shall survive Closing. 
 6.3 Waiver and Release by Buyer. Except as otherwise expressly set forth in this Agreement, Buyer, for itself and any entity affiliated with Buyer, waives and releases Seller, the Seller Related Parties and
their respective employees, agents, officers, trustees, directors and shareholders from and against any claims, demands, penalties, fines, liabilities, settlements, damages, costs or expenses of whatever kind or nature, known or unknown, existing
and future, contingent or otherwise (including any action or proceeding, brought or threatened, or ordered by any appropriate governmental entity) made, incurred, or suffered by Buyer or any entity affiliated with Buyer relating to the presence,
misuse, use, disposal, release or threatened release of any hazardous or toxic materials, chemicals or wastes at the Property and any liability or claim related to the Property arising under the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, the Superfund Amendments and Reauthorization Act of 1986, the Resource Conservation and Recovery Act, and the Toxic Substance Control Act, all as amended, or any other cause of action based on any other state, local, or
federal environmental law, rule or regulation; provided, however, the foregoing waiver and release shall not apply to (i) the release by Seller of Hazardous Materials at or affecting the Property or violations by Seller of environmental laws to
the extent affecting the Property or (ii) violations of environmental laws within the actual knowledge of Seller and not disclosed to Buyer prior to Closing. As used herein, “Hazardous Materials” shall mean substances which are
designated, defined or classified as a hazardous substance, hazardous material or contaminant under applicable environmental laws currently in effect as of the Contract Date. Buyer acknowledges that unknown and unsuspected Hazardous Materials may
hereafter be discovered on or about the Property, and Buyer knowingly releases Seller and the Seller Related Parties from any and all liability related thereto (except as expressly provided above). Buyer hereby agrees, represents and warrants that
the matters released herein are not limited to matters which are known, disclosed, suspected or foreseeable. 

									
					
		 	  	 		 		 	  
		 	Seller’s Initials	 		 		 	Buyer’s Initials

 The provisions of this Section 6.3 shall survive indefinitely any Closing or termination of this Agreement
and shall not be merged into the Closing Documents. 
 6.4 Physical and Document Inspection. Simultaneously with or prior to the
execution and delivery of this Agreement, Seller shall deliver to Buyer complete copies of each of the following documents related to the Property that it has in its possession: (a) a Phase I environmental report and an ALTA survey of the
Property (both of which have been provided to Seller), and (b) plans and specifications, certificate of occupancy, and notice of completion for the Building. 
 6.5 Buyer’s Inspection. Buyer and its agents shall have the right, from time to time prior to the Closing, to enter upon the Property to examine the same and the condition 

  

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thereof, and to conduct such surveys and to make all such engineering and other inspections, tests and studies as Buyer shall determine to be reasonably
necessary, all at Buyer’s sole cost and expense; provided, however, Buyer shall not conduct any environmental investigations of the Property beyond a Phase I environmental site assessment (i.e. no sampling or drilling) without obtaining
Seller’s prior written consent. Buyer agrees to give Seller at least twenty-four (24) hours advance written notice of such examinations or surveys and to conduct such examinations or surveys during normal business hours. Unless Seller
waives such right in writing, a representative of Seller must be present with Buyer during all examinations or surveys of the Property conducted by Buyer. Buyer agrees to restore the Property to its condition prior to any such examinations or
surveys immediately after conducting the same. Buyer hereby indemnifies and holds Seller harmless from and against any claims for injury or death to persons, damage to property or other losses, damages or claims, including, in each instance,
attorneys’ fees and litigation costs, to the extent arising out of any action of any person or firm entering the Property on Buyer’s behalf as aforesaid, which indemnity shall survive the Closing and any termination of this Agreement
without the Closing having occurred. 
 6.6 Formal Inspection Period. Notwithstanding Buyer’s right of inspection contained in
Section 6.5 above, with respect to the condition of the Property, Buyer’s obligation to close under this Agreement is subject to and conditioned upon Buyer’s investigation and study of and satisfaction with the Property. Buyer shall
have until April 7, 2006 (the “Inspection Date”), to make any such investigations and studies with respect to the Property as Buyer deems appropriate, and to terminate this Agreement, by written notice to Seller, to be given on or
before the Inspection Date, if Buyer is not, for any reason, satisfied with the Property. If Buyer fails timely to give notice of such termination, then Buyer’s rights under this Section 6.6 shall be deemed to have been waived by Buyer and
this Agreement shall remain in full force and effect without any longer being subject to this Section 6.6. If Buyer does give notice of termination on or before the Inspection Date, the Earnest Money shall be refunded to Buyer by Escrow Agent,
and the parties shall have no further rights or obligations hereunder, except for those which expressly survive any such termination, and, thereafter, Buyer shall promptly provide to Seller, without charge and without warranty, copies of any
reports, surveys, drawings, tests or other written documents obtained by Buyer from third parties with respect to the Property. 
 6.7
Disclosure. Buyer and Seller acknowledge that Seller or Broker may be required to disclose if the Property lies within the following natural hazard areas or zones: (1) a special flood hazard area designated by the Federal Emergency
Management Agency (Cal. Civ. Code §1103); (2) an area of potential flooding (Cal. Gov. Code §8589.4); (3) a very high fire hazard severity zone (Cal. Gov. Code 51183.5); (4) a wild land area that may contain substantial
forest fire risks and hazards (Pub. Resources Code § 4136); (5) an earthquake fault zone (Pub. Resources Code § 2621.9); or (6) a seismic hazard zone (Pub. Resources Code § 2694). Buyer and Seller acknowledge that Buyer will
employ the services of a reputable third party who is in the business of providing such information (which, in such capacity is herein called “Natural Hazard Expert”) to examine the maps and other information specifically made available to
the public by government agencies for the purpose of enabling each of Seller and Broker to fulfill its disclosure obligations, if any, with respect to the natural hazards referred to in California Civil Code Section 1103.2 and to report the
result of its examination to Buyer and Seller in writing. The written report prepared by the Natural Hazard Expert regarding the results of its examination 

  

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fully and completely discharges Seller and Broker from their disclosure obligations, if any, referred to herein, and, for the purpose of this Agreement, the
provisions of Civil Code Section 1102.4 regarding the non-liability of each of Seller and Broker for errors or omissions not within its personal knowledge shall be deemed to apply and the Natural Hazard Expert shall be deemed to be an expert,
dealing with matters within the scope of its expertise with respect to the examination and written report regarding the natural hazards referred to above. The obligations of Seller and Broker are several (and not joint and several). 
 Section 7. Reserved. 
 Section 8. Representations and Warranties. 
 As of the Contract Date, Seller hereby warrants and represents to
Buyer as follows: 
 8.1 No Litigation. Seller has not received any written notice of any actual, pending or threatened litigation or
proceeding, including, without limitation, condemnation or other exercise of the power of eminent domain, by any organization, person, individual or governmental agency against Seller with respect to the Property or against the Property. Seller has
no actual knowledge of any other pending or threatened litigation, condemnation or other exercise of the power of eminent domain which would affect the Property. 
 8.2 No Violation of Law. Seller has received no written notice from any governmental authority alleging or asserting that the Property is not in compliance with applicable Governmental Requirements. 

8.3 Authority. Seller is a duly organized and validly formed corporation under the laws of the State of California, is in good standing in the
State of California, is not subject to any voluntary or involuntary bankruptcy or other proceeding for dissolution or liquidation thereof, has obtained all requisite authorizations to enter into this Agreement with Buyer and to consummate and close
the purchase and sale of the Property pursuant hereto, and that the parties executing this Agreement on behalf of Seller are duly authorized to do so. 
 8.4 Non-Foreign Status. Seller is not a “foreign person” as that term is defined in the Internal Revenue Code of 1986, as amended and the Regulations promulgated pursuant thereto. 
 8.5 No Leases. There are no leases, licenses, or other rights of occupancy in effect at the Property. 
 8.6 Other Buyers. Other than this Agreement and Seller’s loan facility and/or credit agreements with Bank of America, there is no binding
agreement, understanding, letter of intent, or other commitment or arrangement of any kind between Seller and any other person, firm, corporation, or other entity relating to the sale, lease, or other disposition of the Property or any portion or
component thereof. 
  

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 8.7 Performance Under Contract. To Seller’s knowledge, Seller’s entering into this
Agreement does not and at the time of Closing will not violate any provisions of any agreement or judicial order to which Seller is a party or to which Seller or the Property is subject. 
 Whenever a representation and warranty made by Seller in this Section 8 is limited to Seller’s “knowledge” or “actual
knowledge”, such term shall mean the current actual knowledge of the authorized representative of Seller responsible, on behalf of Seller, for the acquisition, development, leasing, management, operation and disposition of the Property and
construction of the Improvements, without any independent inquiry or investigation and without any personal liability on the part of any of them, and the knowledge of no other past, present or future employee of Seller shall be imputed to Seller for
the purposes hereof. The foregoing definition of “knowledge” or “actual knowledge” shall apply to such terms wherever used in this Agreement with respect to statements, warranties or actions of Seller, including, without
limitation, Section 6.3. 
 Section 9. Buyer’s Conditions to Closing. 
 9.1 Seller’s Representations and Warranties. The representations and warranties contained in Section 8 are true and correct in all
material respects at Closing. The representations and warranties contained in Section 8 shall survive Closing for a period of one year following the Closing Date (except for 8.3 and 8.4 which shall survive for a period of four years) and shall
terminate upon expiration of such one year period, except as to claims asserted in writing by Buyer prior to that time. 
 9.2
Seller’s Compliance. Seller shall have complied with each and every condition and material covenant of this Agreement to be kept or complied with by Seller. 
 9.3 ALTA Survey. Buyer shall have obtained the Survey in a form reasonably satisfactory to Buyer. 
 Section 10. No Leases. Seller will not, so long as this Agreement remains in effect, enter into any leases, licenses, or occupancy agreements affecting the Property. 
 Section 11. Closing. 
 11.1 Time and Place. Provided that all of the conditions set forth in this Agreement are theretofore fully satisfied or performed, the Closing shall be conducted through an escrow administered by Escrow Agent, at its offices at 171
North Clark Street, Chicago, Illinois 60601, commencing at 10:00 a.m., on a date selected by Buyer and reasonably acceptable to Seller, but in no event later than April 7, 2006. Seller and Buyer will execute and deliver to Escrow Agent such
escrow instructions, either jointly or separately, not later than the day before the date of Closing, as may be necessary to enable Escrow Agent to administer and complete the Closing in accordance with the provisions of this Agreement and the
Additional Instructions. 
 11.2 Seller’s Closing Documents. For and in consideration of, and as a condition precedent to,
Buyer’s delivery to Seller of the Purchase Price, Seller shall obtain and 

  

 12 

 
deliver to Buyer, or cause to be obtained and delivered to Buyer, at the Closing the following documents (collectively, the “Seller’s Closing
Documents”, all of which shall be duly executed and witnessed, which documents Buyer agrees to execute where required): 
 11.2.1 A Deed, in the form attached as Exhibit D conveying to Buyer all of Seller’s right, title and interest in and to the Land and Improvements, subject to the Permitted Title Exceptions and such other exceptions as are
permitted by Section 5. 
 11.2.2 A Non-Foreign Certificate, in the form attached as Exhibit E; 

11.2.3 Such evidence as the Title Insurer shall reasonably require as to the authority of the parties acting on behalf of Seller and
Buyer to enter into this Agreement and to discharge the obligations of Seller and Buyer pursuant hereto; 
 11.2.4 A
properly-completed property transfer tax return, in form and substance appropriate to the jurisdiction in which the Property is located; 
 11.2.5 A closing statement; 
 11.2.6 An affidavit of title or other affidavit customarily
required of sellers by the Title Insurer to remove the standard exceptions from an owner’s ALTA extended coverage title insurance policy which are capable of being removed by such an affidavit; 
 11.2.7 A General Assignment in the form attached hereto as Exhibit F; 
 11.2.8 A current ALTA Owner’s Extended Coverage Policy of Title Insurance issued by the Title Insurer, in the amount of the Purchase
Price and showing title to the Property vested in Buyer, subject to the Permitted Title Exceptions, with such endorsements as Buyer shall reasonably request and which shall include 3.1 zoning with parking, comprehensive, subdivision, utility
facility, survey, access, single tax lot, waiver of the creditors’ rights exception, waiver of the arbitration clause and environmental lien endorsements; 
 11.2.9 A lease and subground lease agreement, in the forms attached hereto as Exhibit G-1 and G-2, respectively, whereby
Seller agrees to lease from Buyer (or IWSGT, as applicable), and Buyer agrees to lease (or cause to be leased) to Seller, the Property; 
 11.2.10 Insurance certificate in the form as is required by the lease naming the Buyer’s assignee and lender as insured parties; 
 11.2.11 Estoppel certificate executed by Seller, as lessee, in a commercially reasonable form; and 
 11.2.12 Such further instructions, documents and information as Buyer or Title Insurer may reasonably request as necessary to consummate
the purchase and sale contemplated by this Agreement. 
  

 13 

 11.3 Buyer’s Closing Documents. For and in consideration of, and as a condition precedent to,
Seller’s delivery to Buyer of the Deed, Buyer shall obtain and deliver to Seller, or cause to be obtained and delivered to Seller, at the Closing the following documents (collectively, the “Buyer’s Closing Documents”, all of
which shall be duly executed and witnessed, which documents Seller agrees to execute where required): 
 11.3.1 Such evidence
as the Title Insurer shall reasonably require as to the authority of the parties acting on behalf of Seller and Buyer to enter into this Agreement and to discharge the obligations of Seller and Buyer pursuant hereto; 
 11.3.2 A closing statement; 
 11.3.3 A General Assignment in the form attached hereto as Exhibit F; 
 11.3.4 A
lease and subground lease agreement, in the forms attached hereto as Exhibit G-1 and G-2, respectively, whereby Seller agrees to lease from Buyer (or IWSGT, as applicable), and Buyer agrees to lease (or cause to be leased) to Seller, the
Property; and 
 11.3.5 Such further instructions, documents and information as Seller or Title Insurer may reasonably request
as necessary to consummate the purchase and sale contemplated by this Agreement. 
 11.4 Costs. At the Closing, Seller and Buyer shall
pay their own respective costs incurred with respect to the consummation of the purchase and sale of the Property as contemplated herein, including, without limitation, attorneys’ fees. Seller shall be responsible for payment of documentary
transfer taxes, escrow and recording fees, closing costs, all Survey costs and the premium for an ALTA owner’s standard policy of title insurance (without endorsements). Buyer shall be responsible for payment of any additional costs
attributable to an ALTA owner’s extended coverage policy of title insurance and any endorsements to the ALTA owner’s policy of title insurance, if so desired by Buyer. 
 Section 12. Default and Remedies. 
 12.1 Buyer’s Default. In the event of a default by Buyer under the terms of this Agreement and continuation of such default for a period of five (5) calendar days after receipt of written notice from
Seller (except that no such notice shall be required for a failure by Buyer to tender the Purchase Price and execute the applicable Closing Documents on the Closing Date in accordance with Section 11.2), Escrow Agent shall disburse the Earnest
Money to Seller, and Seller shall be entitled, as its sole and exclusive remedy hereunder, to retain the Earnest Money as full liquidated damages for such default of Buyer, whereupon this Agreement shall terminate and the parties shall have no
further rights or obligations hereunder, except for those which expressly survive any such termination. It is hereby agreed that Seller’s damages in the event of a default by Buyer hereunder are uncertain and difficult to ascertain, and that
the Earnest Money constitutes a reasonable liquidation of such damages and is intended not as a penalty, but as full liquidated damages. Buyer covenants not to bring any action or suit challenging the amount of 

  

 14 

 
liquidated damages provided hereunder in the event of such default. Notwithstanding the foregoing, if Buyer interferes with or makes any attempt to interfere
with Seller receiving or retaining, as the case may be, the liquidated damages provided for in this Section 12.1 (other than on the basis that Buyer, in good faith, disputes Seller’s contention that Buyer is in default hereunder), Seller
shall have the right to elect to recover all collection costs necessary to enforce its rights hereunder together with the Earnest Money. This provision shall expressly survive the termination of this Agreement. 
 12.2 Seller’s Default. In the event of a default by Seller under the terms of this Agreement which is first discovered by Buyer prior to the
Closing and is not cured by Seller within five (5) calendar days after receipt of written notice from Buyer, or as otherwise provided hereunder (except that only one (1) days notice shall be required for a failure by Seller to execute and
tender the Closing Documents on the Closing Date in accordance with Section 11.2), Buyer’s sole and exclusive remedies hereunder shall be either to (i) terminate this Agreement and receive a refund of the Earnest Money from Escrow
Agent (except as provided to the contrary in Section 8) or (ii) subject to compliance by Buyer with Section 12.2.1, seek specific performance of Seller’s obligations under this Agreement, without any reduction in the Purchase
Price. Except as expressly provided to the contrary in this Agreement, Buyer shall have no right to seek or recover any damages from Seller in the event of a default by Seller under the terms of this Agreement. Notwithstanding the foregoing, if the
remedy of specific performance is not available because of Seller’s intentional misconduct, Buyer shall be entitled to assert a claim against Seller for damages incurred by Buyer as a result thereof. 
 12.2.1 SPECIFIC PERFORMANCE. BUYER SHALL ONLY BE ENTITLED TO THE REMEDY OF SPECIFIC PERFORMANCE IF BUYER IS READY, WILLING AND ABLE
TO PERFORM BUYER’S OBLIGATIONS UNDER THIS AGREEMENT WITHOUT ANY VARIANCE OR MODIFICATION (EXCEPT VARIANCES AND MODIFICATIONS, IF ANY, WHICH MAY BE SET FORTH IN WRITING AND EXECUTED AND DELIVERED BY BOTH SELLER AND BUYER), PROVIDED THAT BUYER
SHALL NOT BE REQUIRED TO DEPOSIT INTO ESCROW THE PURCHASE PRICE AND ANY OTHER AMOUNTS REQUIRED OF BUYER TO CLOSE ESCROW HEREUNDER UNTIL ONE DAY BEFORE THE ACTUAL CLOSING. BUYER AND SELLER HEREBY EVIDENCE THEIR SPECIFIC CONSENT TO THE TERMS OF THIS
SECTION 12 BY PLACING THEIR INITIALS IN THE PLACE PROVIDED HEREINAFTER. 

									
					
		 	  	 		 		 	  
		 	Seller’s Initials	 		 		 	Buyer’s Initials

 12.3 Seller’s Misrepresentation or Breach of Warranty. In the event of a
misrepresentation or breach of warranty by Seller under Section 8 of this Agreement which is first discovered by Buyer after the Closing Date but within one (1) year after the Closing Date, Buyer shall notify Seller, in writing, of the
specifics of such default. Seller shall have sixty (60) days after receipt of Buyer’s notice in which to cure said default (or such longer time if such default cannot be reasonably cured within said sixty (60) day period, but in no
event later than one hundred eighty (180) days). If Seller is unable to cure said default within said cure period, Buyer’s sole recourse against Seller shall be to file an action or proceeding against Seller for the 

  

 15 

 
actual damages (excluding any consequential or punitive damages) suffered by Buyer as a direct result of such default. No action or proceeding thereon of any
kind whatsoever shall be valid or enforceable, at law or in equity, if not commenced in the appropriate jurisdiction within one (1) year after the Closing Date. Notwithstanding the foregoing, the total liability of Seller for breach of warranty
discovered after the Closing Date will never exceed, in the aggregate, $500,000, except to the extent caused by Seller’s intentional misconduct. 
 Section 13. Condemnation or Destruction. 
 13.1 Condemnation. If, prior to the
Closing, all or any material part of the Property is subject to a bona fide threat of condemnation by a body having the power of eminent domain, or is taken by eminent domain or condemnation, or sale in lieu thereof, then Buyer, by written notice to
Seller, to be received within twenty (20) calendar days of Buyer’s receiving Seller’s notice of such threat, condemnation or taking, but no later than the Closing Date, may elect to terminate this Agreement. For the purposes of this
Section 13.1, a “material” part of the Property will have been taken by condemnation or be under threat of condemnation if the loss of such part of the Property would have a material and adverse impact on access to the Property or
operation of the Property as contemplated by Buyer. 
 13.2 Damage or Destruction. If, prior to the Closing, all or any material part
of the Property is damaged or destroyed by fire or other casualty, Seller agrees to give Buyer immediate written notice of such occurrence and the nature and extent of such damage and destruction, and Buyer, by written notice to Seller, to be
received within twenty (20) calendar days of Buyer’s receipt of Seller’s notice of such damage or destruction, but no later than the Closing Date, may elect to terminate this Agreement. For the purposes of this Section 13.2, a
“material” part of the Property will have been damage or destroyed if Seller’s estimate of the cost to repair such damage exceeds $327,500. 
 13.3 Termination. If this Agreement is terminated as a result of the provisions of either Section 13.1 or Section 13.2 hereof, Buyer shall be entitled to receive a refund of the Earnest Money from
Escrow Agent, whereupon the parties shall have no further rights or obligations hereunder, except for those which expressly survive any such termination. 
 13.4 Awards and Proceeds. If Buyer does not elect (or is not entitled) to terminate this Agreement following any notice of a threat of taking or taking by condemnation or notice of damage or destruction to the
Property, as provided above, this Agreement shall remain in full force and effect and the conveyance of the Property contemplated herein, less any interest taken by eminent domain or condemnation, or sale in lieu thereof, shall be effected with no
further adjustments. At the Closing, Seller shall assign, transfer and set over to Buyer all of Seller’s right, title and interest in and to any awards, payments or insurance proceeds for the actual value of the property lost or destroyed, up
to but not in excess of the Purchase Price, that have been or may thereafter be made for any such taking, sale in lieu thereof or damage or destruction, to the extent such awards, payments or proceeds shall not have theretofore been used for
restoration of the Property pursuant to a plan of restoration approved in advance in writing by Buyer. Seller shall also credit Buyer in cash at Closing for any deductible amount with respect to any insurance proceeds implicated by such damage or
destruction. 
  

 16 

 Section 14. Assignment. 
 14.1 Assignment by Buyer. Except as herein expressly provided, Buyer shall not, without the prior written consent of Seller, which Seller may
withhold in its sole and absolute discretion, assign any of Buyer’s rights hereunder or any part thereof to any person, firm, partnership, corporation or other entity, other than a parent, affiliate or subsidiary, or an affiliate or subsidiary
of a parent, of Buyer or a real estate investment trust sponsored by Buyer. If any assignment requiring Seller’s consent is made with the consent of Seller, or if any assignment not requiring Seller’s consent is made, then the sale
contemplated by this Agreement shall be consummated in the name of, and by and through the authorized officials of, any such assignee, but Buyer shall not be relieved of its obligations under this Agreement. 
 14.2 Assignment by Seller. From and after the Contract Date, Seller shall not, without the prior written consent of Buyer, which consent Buyer may
withhold in its sole and absolute discretion, assign, transfer, convey, hypothecate or otherwise dispose of all or any part of its right, title or interest in or to the Property. Notwithstanding the foregoing, Seller shall have the right to assign,
transfer or convey, without Buyer’s consent, Seller’s right, title or interest in or to the Property (or any portion thereof) to any parent, affiliate or subsidiary of Seller, provided that Seller remains responsible for the performance of
its covenants and obligations under this Agreement. 
 Section 15. Buyer’s Representation and Warranty. Buyer does
hereby represent and warrant to Seller as of the Contract Date and the Closing Date that it is a validly formed corporation under the laws of the State of Illinois; that it is in good standing in the state of its organization and qualified to do
business in the State of California; that it is not subject to any involuntary proceeding for the dissolution or liquidation thereof; that it has all requisite authorizations to enter into this Agreement with Seller and to consummate the
transactions contemplated hereby; and that the parties executing this Agreement on behalf of Buyer are duly authorized to so do. 
 Section 16. Broker and Broker’s Commission. 
 16.1 If Closing actually occurs, Seller shall pay to Broker a
commission, out of the Escrow, in accordance with a separate agreement between Seller and Broker. Broker shall only be entitled to such commission if and when the transaction contemplated herein actually closes. Buyer shall have no responsibility
for payment of such commission. 
 16.2 Buyer and Seller each warrant and represent to the other that, with the exception of the Broker, such
party has not employed or otherwise engaged a real estate broker or agent in connection with the transaction contemplated hereby. Each party agrees to indemnify and hold the other harmless from any loss or cost suffered or incurred by it as a result
of the other’s representation herein being untrue. This Section 16 shall expressly survive the Closing hereunder and any termination of this Agreement. 
  

 17 

 Section 17. Notices. 
 Wherever any notice or other communication is required or permitted hereunder, such notice or other communication shall be in writing and shall be
delivered by hand, by nationally-recognized overnight express delivery service, by U. S. registered or certified mail, return receipt requested, postage prepaid, or by facsimile with prompt telephone confirmation to the addresses set out below
or at such other addresses as are specified by written notice delivered in accordance herewith: 
  

			
	SELLER:	  	
		  	COST PLUS, INC.
		  	200 Fourth Street
		  	Oakland, California 94607
		  	Telephone: (510) 808-9119
		  	Facsimile: (510) 893-3084
		  	Attn: Tom Willardson
		
	With a copy to:	  	
		  	Cooper, White & Cooper LLP
		  	201 California Street, 17th Floor
		  	San Francisco, CA 94111
		  	Telephone: (415) 433-1900
		  	Facsimile: (415) 433-5530
		  	Attn: Beau Simon
		
	BUYER:	  	
		  	INLAND REAL ESTATE ACQUISITIONS, INC.
		  	2901 Butterfield Road
		  	Oak Brook, IL 60523
		  	Telephone: (630) 218-4948
		  	Facsimile: (630) 218-4935
		  	Attn: G. Joseph Cosenza
		
	With a copy to:	  	
		  	Gary Pechter, Esq.
		  	The Inland Real Estate Group, Inc.
		  	2901 Butterfield Road
		  	Oak Brook, IL 60523
		  	Telephone: (630) 645-2084
		  	Facsimile: (630) 218-4900

 Any notice or other communication mailed as hereinabove provided shall be deemed effectively given
and received (a) on the date of delivery, if delivered by hand or overnight express delivery service; (b) on the date indicated on the return receipt if mailed; or (c) on the date of transmission, if sent by facsimile with prompt
telephonic confirmation. If any 

  

 18 

 
notice mailed is properly addressed but returned for any reason, such notice shall be deemed to be effective notice and to be given on the date of mailing.

 Section 18. Miscellaneous. 
 18.1 Governing Law; Headings; Rules of Construction. This Agreement shall be governed by and construed in accordance with the internal laws of the State of in which the Land is located, without reference to the
conflicts of laws or choice of law provisions thereof. The titles of sections and subsections herein have been inserted as a matter of convenience of reference only and shall not control or affect the meaning or construction of any of the terms or
provisions herein. All references herein to the singular shall include the plural, and vice versa. The parties agree that this Agreement is the result of negotiation by the parties, each of whom was represented by counsel, and thus, this Agreement
shall not be construed against the maker thereof. 
 18.2 No Waiver. Neither the failure of either party to exercise any power given
such party hereunder or to insist upon strict compliance by the other party with its obligations hereunder, nor any custom or practice of the parties at variance with the terms hereof shall constitute a waiver of either party’s right to demand
exact compliance with the terms hereof. 
 18.3 Entire Agreement. This Agreement contains the entire agreement of the parties hereto
with respect to the Property and the subject matter hereof, and no representations, inducements, promises or agreements, oral or otherwise, between the parties not embodied herein or incorporated herein by reference shall be of any force or effect.

 18.4 Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective
heirs, executors, administrators, legal representatives, successors and assigns (subject to Section 14 above). 
 18.5
Amendments. No amendment to this Agreement shall be binding on any of the parties hereto unless such amendment is in writing and is executed by the party against whom enforcement of such amendment is sought. 
 18.6 Possession. Possession of the Property shall be granted by Seller to Buyer no later than the Closing Date, subject to the Permitted Title
Exceptions and other title matters allowed under Section 5. 
 18.7 Date For Performance. If the time period by which any right,
option or election provided under this Agreement must be exercised, or by which any act required hereunder must be performed, or by which the Closing must be held, expires on a Saturday, Sunday or legal or bank holiday, then such time period shall
be automatically extended through the close of business on the next regularly scheduled business day. 
 18.8 Recording. Seller and
Buyer agree that they will not record this Agreement and that they will not record a short form of this Agreement. 
  

 19 

 18.9 Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all of which, when taken together, shall constitute but one and the same instrument. 
 18.10 Time
of the Essence. Time shall be of the essence of this Agreement and each and every term and condition hereof. 
 18.11
Severability. This Agreement is intended to be performed in accordance with, and only to the extent permitted by, all applicable laws, ordinances, rules and regulations, and is intended, and shall for all purposes be deemed to be, a single,
integrated document setting forth all of the agreements and understandings of the parties hereto with respect to the subject matter hereof, and superseding all prior negotiations, understandings and agreements of such parties. If any term or
provision of this Agreement or the application thereof to any person or circumstance shall for any reason and to any extent be held to be invalid or unenforceable, then such term or provision shall be ignored, and to the maximum extent possible,
this Agreement shall continue in full force and effect, but without giving effect to such term or provision. 
 18.12 Confidentiality.
Each of Seller and Buyer shall keep the terms of this Agreement strictly confidential and shall not disclose or permit its employees or agents to disclose the terms of this Agreement, except for reasonably necessary disclosures to its attorneys,
accountants, officers, directors, key employees, members and lenders. Buyer agrees to keep confidential any of the documents, material or information regarding the Property supplied to Buyer by Seller or by any third party at Seller’s request,
including, without limitation any environmental site assessment reports furnished to Buyer except to Buyer’s consultants, officers, directors, key employees, prospective lenders, investors, financial advisors, attorneys and any permitted
assignees of this Agreement on a “need to know” basis, unless Buyer is compelled to disclose such documents, material or information by law or by subpoena. Buyer agrees to indemnify and hold harmless the Seller Related Parties from
and against any and all losses, damages, claims and liabilities of any kind (including, without limitation, reasonable attorneys’ fees) arising out of Buyer’s breach of this Section 18.12. In the event that the Closing does not occur
in accordance with the terms of this Agreement, Buyer shall return to Seller all of the documents, material or information regarding the Property supplied to Buyer by Seller or at the request of Seller. The provisions of this Section 18.12
shall survive the termination of this Agreement but shall no longer be applicable following Closing in accordance with the terms of this Agreement. Notwithstanding the foregoing, the provisions of this Section 18.12 shall not apply to any
information which is within the public domain. 
 18.13 Seller Related Parties. As used herein, the “Seller Related Parties”
shall mean Seller and its officers, directors, trustees, shareholders, partners, members, participants, affiliates, subsidiaries, employees, representatives, agents, contractors, heirs, legal representatives, successors and assigns. 
 18.14 No Offer Until Executed. The submission of this Agreement to Buyer for examination or consideration does not constitute an offer to sell the
Property and this Agreement shall become effective, if at all, only upon the full execution and delivery thereof by Buyer and Seller. 
  

 20 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed and sealed by its
duly authorized signatory, effective as of the day and year first above written. 
  

											
		 	 SELLER:
	 		 	
			
		 		 	 COST PLUS, INC., a California corporation

				
	Date: April 7, 2006	 		 	 By:
	 	/s/ Tom Willardson
		 		 		 		 	Name:	 	Tom Willardson
		 		 		 		 	Title:	 	Executive Vice President
and Chief Financial Officer
				
		 	BUYER:	 		 	
			
		 		 	INLAND REAL ESTATE ACQUISITIONS, INC., an Illinois corporation
				
	Date: April 7, 2006	 		 	By:	 	/s/ Joseph Cosenza
		 		 		 		 	Name:	 	G. Joseph Cosenza
		 		 		 		 	Title:	 	President

  

 21 

 JOINDER BY BROKER 
 Broker hereby joins in execution of this Agreement in its capacity as a real estate broker licensed to business in the State of California and acknowledges the fee or commission due it from Seller as a result of the
transaction described in this Agreement is set forth in the letter agreement between Seller and Broker dated _________________, 2005. Broker also acknowledges that payment of the aforesaid fee or commission is conditioned upon the Closing and the
receipt of the Purchase Price by Seller. Broker agrees to deliver a receipt to Seller at the Closing for the fee or commission due Seller’s Broker and a release stating that no other fees or commissions are due it from Seller or Buyer arising
out of the sale of the Property, and otherwise in a form reasonably required by Seller or the Title Insurer. Broker warrants and represents to Seller and Buyer that (a) Broker is a real estate broker licensed to do business in the State of
California and (b) there are no other brokers cooperating with or claiming through or under Broker in connection with the transaction contemplated hereby. Broker further agrees to indemnify, defend and hold harmless Seller and Buyer from any
claim whatsoever (including, without limitation, reasonable attorneys’ fees, court costs and costs of appeal) from a breach of any representation or warranty of Broker contained herein. 
  

			
	 Blickman Turkus, L.P.,

	dba BT Commercial Real Estate.
		
	By:	 	  
	Name:	 	  
	Title:	 	  

  

 22 

 EXHIBIT A 
 EARNEST MONEY ESCROW AGREEMENT 
 This Escrow Agreement is made as of the 7th day of April, 2006, by and among COST PLUS, INC., a California corporation (“Seller”), INLAND REAL ESTATE
ACQUISITIONS, INC., an Illinois corporation (“Buyer”), and CHICAGO TITLE & TRUST COMPANY (“Escrow Agent”). 
 RECITALS 
 Seller and Buyer have entered into a certain purchase and sale agreement and joint escrow instructions (“Purchase
Agreement”) concerning real property located in Stockton, California. 
 In connection with the Purchase Agreement, Seller and Buyer
have requested Escrow Agent to receive funds to be held in escrow and applied in accordance with the terms and conditions of this Escrow Agreement. 
 NOW THEREFORE, in consideration of the above recitals, the mutual promises set forth herein and other good and valuable consideration, the parties agree as follows: 
 1. ESCROW AGENT. CHICAGO TITLE & TRUST COMPANY hereby agrees to act as Escrow Agent in accordance with the terms and conditions hereof. 
 2. INITIAL DEPOSIT. Escrow Agent shall receive an initial deposit in the amount of $1,000,000. Any additional amounts deposited with Escrow Agent shall be added to the initial deposit and together with the initial
deposit and all interest earned thereon shall be referred to herein collectively as the “Escrow Fund”. 
 3. DEPOSITS OF FUNDS. All checks, money
orders or drafts will be processed for collection in the normal course of business. Escrow Agent may initially deposit such funds in its custodial or escrow accounts which may result in the funds being commingled with escrow funds of others for a
time; however, as soon as the Escrow Fund has been credited as collected funds to Escrow Agent’s account, then Escrow Agent shall immediately deposit the Escrow Fund into an interest bearing account with any reputable trust company, bank,
savings bank, savings association, or other financial services entity. Deposits held by Escrow Agent shall be subject to the provisions of applicable state statues governing unclaimed property. Seller and Buyer will execute the appropriate Internal
Revenue Service documentation for the giving of taxpayer identification information relating to this account. Seller and Buyer do hereby certify that each is aware the Federal Deposit Insurance Corporation coverages apply to a maximum amount of
$100,000 per depositor. Further, Seller and Buyer understand that Escrow Agent assumes no responsibility for, nor will Seller or Buyer hold same liable for any loss occurring which arises from a situation or event under the Federal Deposit Insurance
Corporation coverages. 
  

 A-1 

 All interest will accrue to and be reported to the Internal Revenue Service for the account of Buyer, as set forth below:

  

			
	 Name:
	  	INLAND REAL ESTATE ACQUISITIONS, INC.
	 Address:
	  	2901 Butterfield Road
		  	Oak Brook, IL 60523
	 Attn:
	  	G. Joseph Cosenza
	 Telephone:
	  	(630) 218-4948
	 Facsimile:
	  	(630) 218-4935

  

	Tax	Identification Number: ______________________ 

 Escrow Agent shall not be
responsible for any penalties, or loss of principal or interest, or any delays in the withdrawal of the funds which may be imposed by the depository institution as a result of the making or redeeming of the investment pursuant to Seller and Buyer
instructions. 
 4. DISBURSEMENT OF ESCROW FUND. Escrow Agent may disburse all or any portion of the Escrow Fund in accordance with and in reliance upon
written instructions from both Seller and Buyer provided that Buyer may unilaterally withdraw the entire Escrow Fund on or before April 7, 2006. The Escrow Agent shall have no responsibility to make an investigation or determination of any
facts underlying such instructions or as to whether any conditions upon which the funds are to be released have been fulfilled or not fulfilled, or to whom funds are released. 
 5. DEFAULT AND/OR DISPUTES. In the event any party to the transaction underlying this Agreement shall tender any performance after the time when such performance was due, Escrow Agent may proceed under this Agreement
unless one of the parties to this Agreement shall give to the Escrow Agent written direction to stop further performance of the Escrow Agent’s functions hereunder. In the event written notice of default or dispute is given to the Escrow Agent
by any party, or if Escrow Agent receives contrary written instructions from any party, the Escrow Agent will promptly notify all parties of such notice. Thereafter, Escrow Agent will decline to disburse funds or to deliver any instrument or
otherwise continue to perform its escrow functions, except upon receipt of a mutual written agreement of the parties or upon an appropriate order of court. In the event of a dispute, the Escrow Agent is authorized to deposit the escrow into a court
of competent jurisdiction for a determination as to the proper disposition of said funds. In the event that the funds are deposited in court, the Escrow Agent shall be entitled to file a claim in the proceeding for its costs and counsel fees, if
any. 
 6. ESCROW AGENT FEES AND OTHER EXPENSES. Escrow Agent shall not charge for its services hereunder. Escrow Agent shall not be required to advance its
own funds for any purpose provided that any such advance, made at its option, shall be promptly reimbursed by the party for whom it is advanced, and such optional advance shall not be an admission of liability on the part of Escrow Agent.

 7. PERFORMANCE OF DUTIES. In performing any of its duties under this Agreement, or upon the claimed failure to perform its duties hereunder, Escrow Agent
shall not be liable to anyone for any damages, losses or expenses which 

  

 A-2 

 
may occur as a result of Escrow Agent so acting, or failing to act; provided, however, Escrow Agent shall be liable for damages arising out of its willful
default or gross negligence under this Agreement. Accordingly, Escrow Agent shall not incur any such liability with respect to (i) any good faith act or omission upon advice of counsel given with respect to any questions relating to the duties
and responsibilities of Escrow Agent hereunder, or (ii) any good faith act or omission in reliance upon any document, including any written notice or instructions provided for in the Agreement, not only as to its due execution and to the
validity and effectiveness of its provisions but also as to the truth and accuracy of any information contained therein, which Escrow Agent shall in good faith believe to be genuine, to have been signed or presented by the proper person or persons
and to conform with the provisions of this Agreement. 
 8. LIMITATIONS OF LIABILITY. Escrow Agent shall not be liable for any loss or damage resulting from
the following: 
 (a) The effect of the transaction underlying this Agreement including without limitation, any defect in the title to the
real estate, any failure or delay in the surrender of possession of the property, the rights or obligations of any party in possession of the property, the financial status or insolvency of any other party, and/or any misrepresentation of fact made
by any other party; 
 (b) The default, error, act or failure to act by any other party to the escrow; 
 (c) Any loss, loss of value or impairment of funds which have been deposited in escrow while those funds are in the course of collection or while those
funds are on deposit in a depository institution if such loss or loss of value or impairment results from the failure, insolvency or suspension of a depository institution; 
 (d) Any defects or conditions of title to any property that is the subject of this escrow provided, however, that this limitation of liability shall not
affect the liability of CHICAGO TITLE & TRUST COMPANY under any title insurance policy which it has issued or may issue. NOTE: No title insurance liability is created by this Agreement. 
 (e) Escrow Agent’s compliance with any legal process including but not limited to, subpoena, writs, orders, judgments and decrees of any court
whether issued with or without jurisdiction and whether or not subsequently vacated, modified, set aside or reversed. 
 9. HOLD HARMLESS. Buyer and Seller
shall indemnify the Escrow Agent and hold the Escrow Agent harmless from all damage, costs, claims and expenses arising from performance of its duties as Escrow Agent including reasonable attorneys’ fees, except for those damages, costs, claims
and expenses resulting form the gross negligence or willful misconduct of the Escrow Agent. 
 10. TERMINATION. This Agreement shall terminate upon the first
to occur of (a) one year from the date hereof, in which event Escrow Agent shall disburse the Escrow Fund to the person who deposited such funds, less Escrow Agent’s fees and expenses, unless this Agreement is extended by written agreement
of all 

  

 A-3 

 
parties including the Escrow Agent; (b) the disbursement by Escrow Agent of all of the Escrow Fund; (c) the joint written instructions of Buyer and
Seller. 
 11. RELEASE OF PAYMENT. Payment of the funds so held in escrow by the Escrow Agent, in accordance with the terms, conditions and provisions of
this Escrow Agreement, shall fully and completely discharge and exonerate the Escrow Agent from any and all future liability or obligations of any nature or character at law or equity to the parties hereto or under this Agreement. 
 12. NOTICES. 
  

			
	 SELLER:
	  	
		  	COST PLUS, INC.
		  	200 Fourth Street
		  	Oakland, California 94607
		  	Telephone: (510) 808-9119
		  	Facsimile: (510) 893-3084
		  	Attn: Tom Willardson
		
	 With a copy to:
	  	
		  	Cooper, White & Cooper LLP
		  	201 California Street, 17th Floor
		  	San Francisco, CA 94111
		  	Telephone: (415) 433-1900
		  	Facsimile: (415) 433-5530
		  	Attn: Beau Simon
		
	 BUYER:
	  	
		  	INLAND REAL ESTATE ACQUISITIONS, INC.
		  	2901 Butterfield Road
		  	Oak Brook, IL 60523
		  	Telephone: (630) 218-4948
		  	Facsimile: (630) 218-4935
		  	Attn: G. Joseph Cosenza
		
	 With a copy to:
	  	
		  	Gary Pechter, Esq.
		  	The Inland Real Estate Group, Inc.
		  	2901 Butterfield Road
		  	Oak Brook, IL 60523
		  	Telephone: (630) 645-2084
		  	Facsimile: (630) 218-4900

  

 A-4 

			
	 ESCROW AGENT:
	  	
		  	CHICAGO TITLE & TRUST COMPANY
		  	171 North Clark Street
		  	Div. II, 3rd Floor
		  	Chicago, IL 60601
		  	Attn: Nancy Castro
		  	Telephone:   312-223-2709
		  	Telecopy:     312-223-2108

 13. This Agreement shall be binding upon and inure to the benefit of the parties respective successors and
assigns. 
 14. This Agreement shall be governed by and construed in accordance with the Laws of the State of California. 
 15. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which, when taken together, shall
constitute but one and the same instrument. 
 16. Time shall be of the essence of this Agreement and each and every term and condition hereof. 

17. In the event a dispute arises between Buyer and Seller under this Agreement, the losing party shall pay the attorney’s fees and court costs of the prevailing
party. 
 IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed and sealed as of the date first stated above.

  

											
		 		 	 SELLER:

			
		 		 	 COST PLUS, INC., a California corporation

				
	Date: April 7, 2006	 		 	By:	 	/s/ Tom Willardson
		 		 		 		 	Name:	 	Tom Willardson
		 		 		 		 	Title:	 	Executive Vice President
and Chief Financial Officer

  

 A-5 

									
		 		 	BUYER:
			
	Date: April 7, 2006	 		 	INLAND REAL ESTATE ACQUISITIONS, INC., an Illinois corporation
				
		 		 	By:	 	/s/ Joseph Cosenza
		 		 		 		 	Name: G. Joseph Cosenza
		 		 		 		 	Title:   President
			
	Date: April 7, 2006	 		 	 ESCROW AGENT:

			
		 		 	CHICAGO TITLE & TRUST COMPANY
				
		 		 	By:	 	/s/ Nancy R. Castro
		 		 		 		 	Name: Nancy R. Castro
		 		 		 		 	Title:   Assistant Vice-President
				
		 		 	By:	 	  
		 		 		 		 	Name:
		 		 		 		 	Title:

  

 A-6 

 EXHIBIT B-1 
 LEGAL DESCRIPTION OF IMPROVED LAND 
 LEGAL DESCRIPTION 
 COST PLUS STOCKTON PROJECT 
 EXISTING
PHASE 1 LEASE PARCEL 
 ALL THAT CERTAIN REAL PROPERTY SITUATE IN THE CITY OF STOCKTON, COUNTY OF SAN JOAQUIN, STATE OF CALIFORNIA, DESCRIBED AS
FOLLOWS: 
 BEING A PORTION OF PARCEL 1 AS SAID PARCEL IS SHOWN ON THAT CERTAIN PARCEL MAP FILED APRIL 8, 2003 IN BOOK 22 OF PARCEL MAPS AT PAGE
145, SAN JOAQUIN COUNTY RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: 
 BEGINNING AT THE WESTERLY CORNER OF SAID PARCEL 1; 
 THENCE ALONG THE NORTHWESTERLY LINE OF SAID PARCEL 1, NORTH 72°45’44 EAST 928.85 FEET; 
 THENCE LEAVING SAID NORTHERLY LINE, SOUTH 17° 39’ 25” EAST, 1065.16 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID PARCEL 1; 
 THENCE ALONG THE EXTERIOR BOUNDARY OF SAID PARCEL ONE, SOUTH 72° 20’ 35” WEST, 902.67 FEET; 
 THENCE, CONTINUING ALONG SAID EXTERIOR BOUNDARY, NORTH 62° 35’ 40” WEST, 40.26 FEET; 
 THENCE CONTINUING ALONG SAID
EXTERIOR BOUNDARY, NORTH 17° 31’ 55” WEST, 1043.45 FEET TO THE POINT OF BEGINNING. 
 CONTAINING 993,348 SQUARE FEET OR 22.8041 ACRES,
MORE OR LESS. 
 KIER AND WRIGHT CIVIL ENGINEERS & SURVEYORS, INC. 
  

 B-1 

 EXHIBIT B-2 
 LEGAL DESCRIPTION OF UNIMPROVED LAND 
 LEGAL DESCRIPTION 
 COST PLUS STOCKTON PROJECT 
 PHASE 2
EXPANSION LEASE PARCEL 
 ALL THAT CERTAIN REAL PROPERTY SITUATE IN THE CITY OF STOCKTON, COUNTY OF SAN JOAQUIN, STATE OF CALIFORNIA, DESCRIBED AS
FOLLOWS: 
 BEING A PORTION OF PARCEL 1 AS SAID PARCEL IS SHOWN ON THAT CERTAIN PARCEL MAP FILED APRIL 8, 2003 IN BOOK 22 OF PARCEL MAPS AT PAGE
145, SAN JOAQUIN COUNTY RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: 
 COMMENCING AT THE WESTERLY CORNER OF SAID PARCEL 1; 
 THENCE ALONG THE NORTHWESTERLY LINE OF SAID PARCEL 1, NORTH 72°45’44” EAST 928.85 FEET TO THE POINT OF BEGINNING OF THIS DESCRIPTION; 
 THENCE CONTINUING ALONG SAID NORTHERLY LINE, NORTH 72° 45’ 44” EAST, 1239.76 FEET; 
 THENCE CONTINUING ALONG SAID NORTHERLY LINE, NORTH 72° 53’ 47” EAST, 97.52 FEET; 
 THENCE LEAVING
SAID NORTHERLY LINE, SOUTH 17° 39’ 25” EAST, 1055.14 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID PARCEL 1; 
 THENCE ALONG SAID
SOUTHERLY LINE, SOUTH 72° 20’ 35” WEST, 1337.24 FEET; 
 THENCE LEAVING SAID SOUTHERLY LINE, NORTH 17° 39’ 25” WEST,
1065.16 FEET TO THE POINT OF BEGINNING. 
 CONTAINING 1,417,822 SQUARE FEET OR 32.5487 ACRES, MORE OR LESS. 
 KIER AND WRIGHT CIVIL ENGINEERS & SURVEYORS, INC. 
  

 B-2 

 LEGAL DESCRIPTION 
 COST PLUS STOCKTON PROJECT 
 EXCESS LANDS PARCEL 
 ALL THAT CERTAIN REAL PROPERTY SITUATE IN THE CITY OF STOCKTON, COUNTY OF SAN JOAQUIN, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: 
 BEING A PORTION OF PARCEL 1 AS SAID PARCEL IS SHOWN ON THAT CERTAIN PARCEL MAP FILED APRIL 8, 2003 IN BOOK 22 OF PARCEL MAPS AT PAGE 145, SAN JOAQUIN COUNTY RECORDS,
MORE PARTICULARLY DESCRIBED AS FOLLOWS: 
 COMMENCING AT THE WESTERLY CORNER OF SAID PARCEL 1; 
 THENCE ALONG THE NORTHWESTERLY LINE OF SAID PARCEL 1, NORTH 72°45’44” EAST 2168.61 FEET; 
 THENCE CONTINUING ALONG SAID NORTHERLY LINE, NORTH 72° 53’ 47” EAST, 97.52 FEET TO THE POINT OF BEGINNING OF THIS DESCRIPTION; 
 THENCE LEAVING SAID NORTHERLY LINE, SOUTH 17° 39’ 25” EAST 1055.14 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID PARCEL 1; 
 THENCE ALONG THE EXTERIOR BOUNDARY OF SAID PARCEL ONE THE FOLLOWING 10 COURSES: 
 THENCE NORTH 72°20’35” EAST, 987.44 FEET; 
 THENCE NORTH 27°34’52” EAST, 42.60 FEET;

 THENCE NORTH 17°10’51” WEST, 733.14 FEET; 
 THENCE NORTH 19°28’17” WEST, 150.12 FEET; 
 THENCE NORTH 17°10’51” WEST, 70.14 FEET; 
 THENCE NORTH 62°08’32” WEST, 28.30 FEET; 
 THENCE
SOUTH 72° 53’47” WEST, 401.87 FEET; 
 THENCE WESTERLY, ALONG THE ARC OF THE 830.00 FOOT RADIUS CURVE TO THE RIGHT, THROUGH A CENTRAL
ANGLE OF 10° 02’ 59”, AN ARC DISTANCE OF 145.58 FEET; 
 THENCE SOUTH 82° 56’ 46” WEST, 100.00 FEET; 
 THENCE WESTERLY ALONG THE ARC OF A 770.00 FOOT RADIUS CURVE TO THE LEFT, THROUGH A CENTRAL ANGLE OF 10° 02’ 59”, AN ARC DISTANCE OF 135.06 FEET;

 THENCE SOUTH 72° 53’ 47” WEST, 220.70 FEET TO THE POINT OF BEGINNING. 
 CONTAINING 1,045,461 SQUARE FEET OR 24.0005 ACRES, MORE OR LESS. 
 KIER AND WRIGHT CIVIL ENGINEERS & SURVEYORS, INC. 
  

 B-3 

 EXHIBIT C 
 PERMITTED TITLE EXCEPTIONS 
 1. Taxes and assessments for the current fiscal year or tax period in which the Closing
occurs and subsequent years not yet due and payable. 
 2. Such state of facts which would be shown by a current survey of the Land. 
 3. Other title exceptions listed in Buyer’s Title Commitment or of public record. 
  

 C-1 

 EXHIBIT D 
 FORM OF GRANT DEED 
 GRANT DEED 
  

					
	 RECORDING REQUESTED BY
  
 AND WHEN RECORDED MAIL THIS DEED AND, UNLESS OTHERWISE SHOWN BELOW, MAIL TAX STATEMENT
TO:
  
	 	 
	 Name
  
	 	Inland Real Estate Acquisitions, Inc.	 	 
	 Street
 Address
  
	 	2901 Butterfield Road	 	 
	 City &
 State
 Zip
  
	 	Oak Brook, IL 60523	 	 
	Title Order No.: _____________ Escrow No. ____________	 	  
		 	SPACE ABOVE THIS LINE FOR RECORDER’S USE

 GRANT DEED 
 THE UNDERSIGNED GRANTOR(s) DECLARE(s) 
 x DOCUMENTARY
TRANSFER TAX IS SET FORTH IN SEPARATE AFFIDAVIT OF CONSIDERATION 
  ̈ __________ unincorporated area x City of Stockton
 x computed on full value of interest or property conveyed, or 
  ̈ computed on full value less value of liens or encumbrances remaining at time of sale and 
 FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, 
 COST PLUS, INC., a California corporation 
 hereby GRANT(S) to 
 Inland Real Estate Acquisitions, Inc., an Illinois corporation 
 the following described
real property in the 
 county of San Joaquin, state of California: 
 See EXHIBIT A, attached hereto and made a part hereof. 
  

 D-1 

 IN WITNESS WHEREOF, said corporation has caused this Grant Deed to be executed this ____ day of _________, 2006.

  

											
	 STATE OF CALIFORNIA
	 	 )
	 		 	
		 	 )    SS    
	 	COST PLUS, INC., a California corporation
	 COUNTY OF
	 	 )
	 		 	
					
		 		 	 By:
	 	  	 	  
	 On __________________________, 2006, before me, ___________________________________, Notary Public, personally appeared
________________________________ and ________________________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) (is/are) subscribed to the within instrument, and acknowledged to
me that (he/she/they) executed the same in (his/her/their) authorized capacity(ies), and that by (his/her/their) signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
	 		 		 	 Name:
 Title:
	 	 Tom Willardson
 Executive Vice President and Chief
Financial Officer

	 		 		 		 	
	  
 WITNESS my hand and official seal.
	 		 		 		 	

			
	
		
	  	 	  
	 Notary Public

 MAIL TAX STATEMENTS TO PARTY SHOWN ON FOLLOWING LINE; IF NO PARTY SHOWN, MAIL AS DIRECTED ABOVE 
  

					
	Name	 	Street Address	 	City & State

  

 D-2 

 EXHIBIT A TO GRANT DEED 
 [LEGAL DESCRIPTION OF PROPERTY] 
  

 D-3 

 EXHIBIT E 
 STATE OF CALIFORNIA 
 COUNTY OF SAN JOAQUIN 
 CERTIFICATE AND AFFIDAVIT OF NON-FOREIGN STATUS 
 The undersigned, being duly sworn, hereby deposes, certifies and states on oath as follows: 
 1. The undersigned is currently the Executive Vice President and Chief Financial Officer of COST PLUS, INC., a corporation organized and existing under
the laws of the State of California (the “Company”), and that the address of the Company is 200 Fourth Street, Oakland, California 94607. 
 2. The Company is not a “non-resident alien” for purposes of United States income taxation or otherwise a “foreign person,” as defined in Section 1445 of the United States Internal Revenue Code of 1986 (as amended,
the “Code”). 
 3. The Company’s United States taxpayer identification number is 94-1067937. 
 4. The undersigned is making this Certificate and Affidavit pursuant to the provisions of the Code in connection with the sale of the real property
described on Exhibit A, attached hereto and incorporated herein by reference, by the Company to INLAND REAL ESTATE ACQUISITIONS, INC. (the “Transferee”), which sale constitutes the disposition by the Company of a United States real
property interest, for the purposes of establishing that the Transferee is not required to withhold tax pursuant to Section 1445 of the Code in connection with such disposition. 
 5. The undersigned acknowledges that this Certificate and Affidavit may be disclosed to the Internal Revenue Service by the Transferee, that this
Certificate and Affidavit is made under penalty of perjury, and that any false statement made herein could be punished by fine, imprisonment or both. 
 6. Under penalty of perjury, I declare that I have examined the foregoing Certificate and Affidavit and hereby certify that it is true, correct and complete. 
  

			
	 COST PLUS, INC., a California corporation

		
	By:	 	  
		 	 Tom Willardson

		 	Executive Vice President and Chief Financial Officer

  

 E-1 

					
	 STATE OF CALIFORNIA
	  	)	  	
		  	)	  	SS.
	 COUNTY OF ______________
	  	)	  	

 Subscribed and sworn to (or affirmed) before me on ______________________, 2006, by
_____________________________, personally known to me or proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me. 
  

	
	
	   
	Notary Public

  

 E-2 

 EXHIBIT F 
 GENERAL ASSIGNMENT 
 THIS ASSIGNMENT is made as of the 7th day of April, 2006, by COST PLUS, INC., a California corporation (“Assignor”), to INLAND REAL ESTATE ACQUISITIONS, INC., an Illinois corporation
(“Assignee”). 
 WITNESSETH: 
 WHEREAS, contemporaneously with the execution and delivery of this Assignment, Assignor has sold, conveyed and assigned to Assignee all of its right, title and interest in and to the real property described in Exhibit A attached
hereto and by this reference made a part hereof, together with all improvements thereon (the “Improvements”) and all rights, easements and appurtenances thereto (hereinafter collectively referred to as the “Property”); and

 WHEREAS, Assignor has agreed to assign to Assignee all of Assignor’s right, title and interest in and to all assignable guaranties
and warranties in connection with the Improvements and to certain property, contract rights and other matters more fully described below subject to the terms and conditions hereinafter set forth. 
 NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Assignor, subject to the terms hereof, hereby assigns, transfers, and sells to Assignee, without recourse, the following: 
 (1) All Assignor’s right, title, and interest in and to all transferable architectural, mechanical, engineering, and other plans and
specifications, including site plans, floor plans, drawings, schematics, and surveys, relating to the Property; 
 (2) All
transferable certificates, permissions, consents, authorizations, variances, waivers, licenses, approvals, and other permits from any governmental authority in respect of the Property; 
 (3) All the right, title, interest, claim and demand which Assignor has in the guaranties and warranties described on Exhibit B
attached hereto and incorporated herein by this reference (collectively, the “Warranties”) in connection with the Improvements to the extent assignable. Notwithstanding anything to the contrary contained herein, if any Warranty cannot be
assigned by Assignor, Assignor agrees to fully cooperate with Assignee (at no cost to Assignor) to enforce the terms of the Warranty on behalf of Assignee. 
 Notwithstanding anything to the contrary contained herein, this Assignment (a) shall not apply to any portion of the Warranties or other rights or instruments described herein which apply to Improvements not
located on the Property and (b) shall be subject and subordinate to 

  

 F-1 

 
Assignor’s assignment, if any, of any Warranties or other rights or instruments described herein to any tenants of the Property under leases with
Assignor as of the date hereof. 
 IN WITNESS WHEREOF, Assignor has duly executed this Assignment the day and year first above written.

 ASSIGNOR: 
  

					
	 COST PLUS, INC., a California corporation

			
	By:	 	  	 	  
		 	 Name:
	 	 Tom Willardson

		 	Title:	 	Executive Vice President
and Chief Financial Officer

  

 F-2 

 EXHIBIT A TO ASSIGNMENT OF GUARANTIES AND WARRANTIES 
 [INSERT LEGAL DESCRIPTION] 
  

 F-3 

 EXHIBIT B TO GENERAL ASSIGNMENT 
 GUARANTIES AND WARRANTIES 
  

 F-4 

 EXHIBIT G-1 
 LEASE AGREEMENT 
  

 G-1 

 EXHIBIT G-2 
 SUBGROUND LEASE AGREEMENT 
  

 G-2Lease Agreement

 Exhibit 10.2.1 
 LEASE AGREEMENT 
 Dated as of April 7, 2006 
 between 
 Inland Western Stockton Airport Way, L.L.C., as Lessor 
 and 
 Cost Plus, Inc. 
 as Lessee 
  

 Property: 
 Cost Plus World Market

 Distribution Facility 
 Stockton, California 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	 	PAGE
	 ARTICLE 1
	 	DEFINITIONS; RESTATEMENT	 	1
		 	 Section 1.1.
	 	Restatement	 	
		 	 Section 1.2.
	 	Definitions	 	1
			
	 ARTICLE 2
	 	LEASE OF PROPERTY	 	1
		 	 Section 2.1.
	 	Demise and Lease	 	1
			
	 ARTICLE 3
	 	RENT	 	2
		 	 Section 3.1.
	 	Base Rent	 	2
		 	 Section 3.2.
	 	Supplemental Rent	 	2
		 	 Section 3.3.
	 	Method of Payment	 	2
		 	 Section 3.4.
	 	Late Payment	 	2
		 	 Section 3.5.
	 	Net Lease, No Setoff, Etc	 	2
		 	 Section 3.6.
	 	True Lease	 	2
			
	 ARTICLE 4
	 	INTENTIONALLY OMITTED	 	4
			
	 ARTICLE 5
	 	RENEWAL OPTIONS	 	4
		 	 Section 5.1.
	 	Renewal Options	 	4
		 	 Section 5.2.
	 	Lease Provisions Applicable During Renewal	 	5
			
	 ARTICLE 6
	 	LESSEE'S ACCEPTANCE OF PROPERTY, ENFORCEMENT OF WARRANTIES	 	5
		 	 Section 6.1.
	 	Waivers	 	5
		 	 Section 6.2.
	 	Lessee's Right to Enforce Warranties	 	6
			
	 ARTICLE 7
	 	LIENS	 	6
		 	 Section 7.1.
	 	Liens	 	6
			
	 ARTICLE 8
	 	USE AND REPAIR	 	7
		 	 Section 8.1.
	 	Use	 	7
		 	 Section 8.2.
	 	Maintenance	 	7
		 	 Section 8.3.
	 	Alterations	 	7
		 	 Section 8.4.
	 	Title to Alterations	 	10
		 	 Section 8.5.
	 	Compliance with Law; Environmental Compliance	 	10
		 	 Section 8.6.
	 	Payment of Impositions	 	11
		 	 Section 8.7.
	 	Adjustment of Impositions	 	13
		 	 Section 8.8.
	 	Utility Charges	 	13
		 	 Section 8.9.
	 	Litigation; Zoning; Joint Assessment	 	13
			
	 ARTICLE 9
	 	INSURANCE	 	14
		 	 Section 9.1.
	 	Coverage	 	14

  

 i 

 Table of Contents(Cont’d) 
  

							
	ARTICLE 10	 	RETURN OF PROPERTY TO LESSOR	 	15
		 	Section 10.1.	 	Return of Property to Lessor	 	15
			
	ARTICLE 11	 	ASSIGNMENT BY LESSEE	 	16
		 	Section 11.1.	 	Assignment by Lessee	 	16
			
	ARTICLE 12	 	LOSS; DESTRUCTION; CONDEMNATION OR DAMAGE	 	17
		 	Section 12.1.	 	Event of Loss	 	17
		 	Section 12.2.	 	Application of Payments Upon an Event of Loss When Lease Continues	 	19
		 	Section 12.3.	 	Application of Payments Not Relating to an Event of Loss	 	19
		 	Section 12.4.	 	Other Dispositions	 	19
		 	Section 12.5.	 	Negotiations	 	21
			
	ARTICLE 13	 	INTENTIONALLY OMITTED	 	22
			
	ARTICLE 14	 	SUBLEASE	 	22
		 	Section 14.1.	 	Subleasing Permitted; Lessee Remains Obligated	 	22
		 	Section 14.2.	 	Provisions of Subleases	 	22
		 	Section 14.3.	 	Assignment of Sublease Rents	 	22
			
	ARTICLE 15	 	INSPECTION	 	23
		 	Section 15.1.	 	Inspection	 	23
			
	ARTICLE 16	 	LEASE EVENTS OF DEFAULT	 	23
		 	Section 16.1.	 	Lease Events of Default	 	23
			
	ARTICLE 17	 	ENFORCEMENT	 	25
		 	Section 17.1.	 	Remedies	 	25
		 	Section 17.2.	 	Survival of Lessee's Obligations	 	27
		 	Section 17.3.	 	Remedies Cumulative; No Waiver; Consents; Mitigation of Damages	 	27
			
	ARTICLE 18	 	RIGHT TO PERFORM FOR LESSEE	 	28
		 	Section 18.1.	 	Right to Perform for Lessee	 	28
			
	ARTICLE 19	 	INDEMNITIES	 	28
		 	Section 19.1.	 	General Indemnification	 	28
		 	Section 19.2.	 	Lessor’s Indemnification Obligation	 	30
			
	ARTICLE 20	 	LESSEE REPRESENTATIONS AND COVENANTS	 	31
		 	Section 20.1.	 	Representations and Warranties	 	31
			
	ARTICLE 21	 	LESSOR REPRESENTATIONS AND COVENANTS	 	32
		 	Section 21.1.	 	Representations and Warranties	 	32
			
	ARTICLE 22	 	PURCHASE PROCEDURE	 	33
		 	Section 22.1.	 	Purchase Procedure	 	33

  

 ii 

 Table of Contents(Cont’d) 
  

							
	ARTICLE 23	 	TRANSFER OF LESSOR'S INTEREST	 	34
		 	Section 23.1.	 	Permitted Transfer	 	34
		 	Section 23.2.	 	Effects of Transfer	 	34
			
	ARTICLE 24	 	PERMITTED FINANCING	 	35
		 	Section 24.1.	 	Financing During Term.	 	35
		 	Section 24.2.	 	Lessee's Consent to Assignment for Indebtedness	 	35
			
	ARTICLE 25	 	MISCELLANEOUS	 	36
		 	Section 25.1.	 	Binding Effect; Successors and Assigns; Survival	 	36
		 	Section 25.2.	 	Quiet Enjoyment	 	36
		 	Section 25.3.	 	Notices	 	37
		 	Section 25.4.	 	Severability	 	37
		 	Section 25.5.	 	Amendments, Complete Agreements	 	37
		 	Section 25.6.	 	Headings	 	37
		 	Section 25.7.	 	Counterparts	 	37
		 	Section 25.8.	 	Governing Law	 	37
		 	Section 25.9.	 	Memorandum	 	38
		 	Section 25.10.	 	Estoppel Certificates	 	38
		 	Section 25.11.	 	Easements	 	38
		 	Section 25.12.	 	No Joint Venture	 	39
		 	Section 25.13.	 	No Accord and Satisfaction	 	39
		 	Section 25.14.	 	No Merger	 	39
		 	Section 25.15.	 	Lessor Bankruptcy	 	39
		 	Section 25.16.	 	Naming and Signage of the Property	 	39
		 	Section 25.17.	 	Expenses	 	40
		 	Section 25.18.	 	Investments	 	40
		 	Section 25.19.	 	Further Assurances	 	40
		 	Section 25.20.	 	[Intentionally omitted]	 	40
		 	Section 25.21.	 	Independent Covenants	 	40
		 	Section 25.22.	 	Lessor Exculpation	 	41
		 	Section 25.23.	 	Remedies Cumulative	 	41
		 	Section 25.24.	 	Holding Over	 	41
		 	Section 25.25.	 	Survival	 	41
		 	Section 25.26.	 	[Intentionally Omitted]	 	42
		 	Section 25.27.	 	Lease Subordinate	 	42
		 	Section 25.28.	 	Lessor Representation	 	42
		 	Section 25.29.	 	Leasehold Financing	 	42

  

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		 	Schedule 3.1	 	—	 	Base Rent
		 	Schedule 9.1	 	—	 	Insurance
		 	Schedule 12.2	 	—	 	Condemnation Allocation
		 	Exhibit A	 	—	 	Description of Land
		 	Exhibit B	 	—	 	Form of Estoppel Agreement
		 	Exhibit C	 	—	 	Form of Subordination, Non-Disturbance and Attornment Agreement

  

 iv 

 THIS LEASE AGREEMENT (this “Agreement”) is made and entered into as of April 7,
2006, by and between Inland Western Stockton Airport Way, L.L.C., as Lessor (“Lessor”), having its principal place of business at 2901 Butterfield Road, Oak Brook, Illinois, 60523, and Cost Plus, Inc., a California corporation,
(“Lessee”), having a place of business at 200 Fourth Street, Oakland, California 94607. 
 RECITALS 
  

	 	A.	Lessee was the owner of the Property, which is now owned by Lessor; 

  

	 	B.	Lessor and Lessee now desire to enter into this Agreement; 

  

	 	C.	Lessor desires to grant and delegate to Lessee, and Lessee desires to accept and assume from Lessor, certain rights and duties as described in this Agreement;

 TERMS 
 NOW THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 ARTICLE 1 
 DEFINITIONS;
RESTATEMENT 
 Section 1.1. Definitions. The capitalized terms used herein and not otherwise defined shall have the meanings
assigned thereto in Appendix A hereto for all purposes hereof. 
 ARTICLE 2 
 LEASE OF PROPERTY 
 Section 2.1. Demise and Lease. (a) Lessor hereby
demises and leases the Property to Lessee, and Lessee does hereby rent and lease the Property from Lessor, for the Base Term and, subject to the exercise by Lessee of its renewal options as provided in Article 5 hereof, for the Renewal Terms.

 (b) Lessee may from time to time own or hold under lease or license from Persons other than Lessor furniture, equipment and
personal property, including Lessee’s Equipment and Personalty, located on or about the Property, which shall not be subject to this Lease. Lessor shall from time to time, upon the reasonable request of Lessee, promptly acknowledge in writing
to Lessee or other Persons that Lessor does not own or, except as provided in Article 10, have any other right or interest in or to such furniture, equipment and personal property, including Lessee’s Equipment and Personalty, whether now owned
or hereafter acquired, and Lessor hereby waives any such right, title or interest. 
  

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 ARTICLE 3 
 RENT 
 Section 3.1. Base Rent. Lessee shall pay to Lessor Base Rent on each Rent Payment Date
during the Base Term in the amount set forth on Schedule 3.1 attached hereto and incorporated herein, and shall pay to Lessor Base Rent on each Rent Payment Date during any Renewal Term as prescribed by Article 5. Each installment of Base Rent is
payable monthly in advance. 
 Section 3.2. Supplemental Rent. Lessee shall pay to Lessor, or to such other Person as shall be
entitled thereto in the manner contemplated herein or as otherwise required by Lessor, any and all Supplemental Rent as the same shall become due and payable. In the event of Lessee’s failure to pay when due and payable any Supplemental Rent,
Lessor shall have all rights, powers and remedies provided for herein. 
 Section 3.3. Method of Payment. All Base Rent and
Supplemental Rent (other than Excepted Payments) payable to Lessor shall, be paid to Lessor, or if Lessor directs (on at least ten (10) Business Days prior notice), to Lessor’s Lender in each case to the Rent Collection Account, as
directed by Lessor or Lender as applicable, in immediately available funds as of the relevant payment date to the Rent Collection Account, or such other account or accounts in the continental United States as the Lender may from time to time
designate (on at least ten (10) Business Days’ prior written notice) to Lessee. Upon payment in full of all amounts due to the Lender, as reasonably evidenced to Lessee, which evidence must include a written statement to that effect from
the Lender, or evidence of release or assignment of the Lien of the Mortgage, or other similar evidence, Lessee shall accept instructions from Lessor (or its new lender, if so instructed by Lessor) as to the payment of Base Rent and Supplemental
Rent. Each such payment of Rent shall be made by Lessee by wire or other transfer of funds consisting of lawful currency of the United States of America which shall be immediately available no later than 4:00 PM (New York City time) at the place of
receipt on the scheduled date when such payment shall be due, unless such scheduled date shall not be a Business Day, in which case such payment shall be made at such time on the immediately following Business Day, with the same force and effect as
though made on such scheduled dates. If any payment of Base Rent or Supplemental Rent is received after 4:00 PM (New York City time) on the dates when such rent is due, such rent shall be deemed received on the next succeeding Business Day.

 Section 3.4. Late Payment. If any payment of Base Rent or any Supplemental Rent payable to Lessor shall be delinquent, Lessee
shall pay interest thereon from the date such payment became due and payable to the date of receipt thereof by Lessor at a rate per annum equal to the Default Rate. 
 Section 3.5. Net Lease, No Setoff, Etc. It is the intention of the parties hereto that the obligations of Lessee hereunder shall be separate and independent covenants and agreements, and that Base Rent,
Supplemental Rent and all other sums payable by Lessee hereunder shall continue to be payable in all events, and that the obligations of Lessee hereunder shall continue unaffected, unless the requirement to pay or perform the same shall have been
terminated pursuant to an express provision of this Lease. This Lease is a net lease and it is agreed and 
  

 2 

 intended that Base Rent, Supplemental Rent and any other amounts payable hereunder by Lessee shall be paid without notice
(except with respect to Supplemental Rent for which notice is specifically required herein), demand, counterclaim, setoff, deduction or defense and without abatement, diminution or reduction and that Lessee’s obligation to pay all such amounts,
throughout the Base Term and all applicable Renewal Terms is absolute and unconditional. Under no circumstances shall Lessor be obligated to repay Lessee, refund to Lessee, or return to Lessee, any Base Rent. 
 This Lease shall not terminate and Lessee shall not have any rights to terminate this Lease, during the Base Term and any Renewal Terms (except as otherwise expressly
provided in Article 12). Except to the extent otherwise expressly specified in this Lease, Lessee shall not take any action to terminate, rescind or void this Lease and the obligations and liabilities of Lessee hereunder shall in no way be released,
discharged or otherwise affected for any reason, including without limitation: (a) any defect in the condition, merchantability, design, quality or fitness for use of the Property or any part thereof, or the failure of the Property to comply
with all Applicable Laws, including any inability to occupy or use the Property by reason of such noncompliance; (b) any damage to, removal, abandonment, salvage, loss, condemnation (except as set forth in Article 12), theft, scrapping or
destruction of or any requisition or taking of the Property or any part thereof, or any environmental conditions on the Property or any property in the vicinity of the Property; (c) any restriction, prevention or curtailment of or interference
with any use of the Property or any part thereof including eviction; (d) any defect in title to or rights to the Property or any Lien on such title or rights to the Property; (e) any change, waiver, extension, indulgence or other action or
omission or breach in respect of any obligation or liability of or by any Person; (f) any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceedings relating to Lessee, Lessor or any
other Person, or any action taken with respect to this Lease by any trustee or receiver of Lessee or any other Person, or by any court, in any such proceeding; (g) any right or claim that Lessee has or might have against any Person, including
without limitation Lessor, the Lender, or any vendor, manufacturer, contractor of or for the Property; (h) any failure on the part of Lessor or any other Person to perform or comply with any of the terms of this Lease; (i) any invalidity,
unenforceability, rejection or disaffirmance of this Lease by operation of law or otherwise against or by Lessee or Lessor or any provision hereof; (j) the impossibility of performance by Lessee or Lessor, or both; (k) any action by any
court, administrative agency or other Governmental Authority; (l) any interference, interruption or cessation in the use, possession or quiet enjoyment of the Property; (m) the exercise of any remedy, including foreclosure, under the
Mortgage, (n) any action with respect to this Lease (including the disaffirmance or rejection hereof) which may be taken by Lessor or Lessee under the Federal Bankruptcy Code or by any trustee, receiver or liquidator of Lessor or Lessee or by
any court under the Federal Bankruptcy Code or otherwise, (o) the prohibition or restriction of Lessee’s use of the Property under any Applicable Laws or otherwise, (p) the eviction of Lessee from possession of the Property, by
paramount title or otherwise, (q) any breach or default by the Lessor hereunder or under any other agreement between Lessor and Lessee; or (r) any other occurrence whatsoever, whether similar or dissimilar to the foregoing, whether
foreseeable or unforeseeable, and whether or not Lessee shall have notice or knowledge of any of the foregoing. Except as specifically set forth in this Lease, this Lease shall be noncancellable by Lessee for any reason whatsoever and, except as
expressly provided in this Lease, Lessee, to the extent now or hereafter permitted by Applicable Laws, waives all rights now or hereafter conferred by statute or otherwise to quit, 
  

 3 

 terminate or surrender this Lease or to any diminution, abatement or reduction of Rent payable hereunder. Under no
circumstances or conditions shall Lessor be expected or required to make any payment of any kind hereunder or have any obligations with respect to the use, possession, control, maintenance, alteration, rebuilding, replacing, repair, restoration or
operation of all or any part of the Property, so long as the Property or any part thereof is subject to this Lease, and Lessee expressly waives the right to perform any such action at the expense of Lessor whether hereunder or pursuant to any law.
Lessee waives all rights which are not expressly stated herein but which may now or hereafter otherwise be conferred by law (i) to quit, terminate or surrender this Lease or any of the Property; (ii) to have any setoff, counterclaim,
recoupment, abatement, suspension, deferment, diminution, deduction, reduction or defense of or to Base Rent, Supplemental Rent, or any other sums payable under this Lease, except as otherwise expressly provided herein; and (iii) to have any
statutory lien or offset right against Lessor or its property. 
 ARTICLE 4 
 INTENTIONALLY DELETED 
 ARTICLE 5 
 RENEWAL OPTIONS 
 Section 5.1. Renewal
Options.  
 Lessor hereby grants to Lessee the option to extend the term of this Lease for the following periods (each, a
“Renewal Term”): 
 (a) for two consecutive terms of five (5) years each and a third consecutive terms of four
(4) years, the first commencing on the date that is the day after the expiration of the Base Term and ending on the fifth (5th) anniversary of the expiration of the Base Term (the “First Renewal Term”); the second (the
“Second Renewal Term”) commencing on the day that is the day after the expiration of the First Renewal Term and ending on the fifth (5th) anniversary thereof and the third (“Third Renewal Term”) commencing on
the day that is the day after the expiration of the Second Renewal Term and ending on the fourth (4th) anniversary thereof (collectively, the “Renewal Terms”). 
 In order to exercise its option to extend
this Lease for any Renewal Term, the Lessee shall give Lessor written notice of its intent to exercise its option to extend the term of this Lease not less than twelve (12) months prior to the expiration of the Base Term or the then current
Renewal Term, time being of the essence. If Lessee fails to provide such notice for any Renewal Term Lessee will be deemed to have waived its right to renew. 
 (b) The monthly Base Rent for the Renewal Terms shall be as set forth on Schedule 3.1 hereof. 
  

 4 

 (c) The right of Lessee to extend the term of this Lease for any Renewal Term is contingent upon there
not being any Lease Event of Default in existence on the date of Lessee’s exercise of such right or on the date that the Renewal Term commences. 
 5.2 Lease Provisions Applicable During Renewal. All the provisions of this Lease shall be applicable during each Renewal Term and the number of Renewal Terms shall be correspondingly reduced. 
 ARTICLE 6 
 LESSEE’S ACCEPTANCE OF
PROPERTY, ENFORCEMENT OF WARRANTIES 
 Section 6.1. Waivers. The Property is demised and let by Lessor “AS IS” in its
present condition, subject to (a) the rights of any parties in possession thereof (other than rights, if any, granted by Lessor), (b) the state of the title thereto existing at the time of the commencement of the Lease Term (other than
defects in, or exceptions to, title, if any, created by Lessor, but including liens created by the Mortgage and related debt documents), (c) any state of facts which an accurate survey or physical inspection might show, (d) all Applicable
Laws, (e) any violations of Applicable Laws which may exist at the commencement of the Lease Term and (f) the presence of any Hazardous Materials at or under the Property or at or under any property in the vicinity of the Property. NONE OF
LESSOR, LENDER OR ANY AFFILIATE THEREOF HAS MADE OR SHALL BE DEEMED TO HAVE MADE ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, OR SHALL BE DEEMED TO HAVE ANY LIABILITY WHATSOEVER AS TO THE VALUE, HABITABILITY, COMPLIANCE WITH ANY PLANS AND
SPECIFICATIONS, CONDITION, DESIGN, OPERATION, LOCATION, USE, DURABILITY, MERCHANTABILITY, CONDITION OF TITLE, OR FITNESS FOR USE OF THE PROPERTY (OR ANY PART THEREOF) FOR ANY PARTICULAR PURPOSE, OR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER,
EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY (OR ANY PART THEREOF) AND NONE OF LESSOR, ANY AFFILIATE THEREOF OR LENDER OR ANY DESIGNEE THEREOF SHALL BE LIABLE FOR ANY LATENT, HIDDEN, OR PATENT DEFECT THEREIN OR FOR THE FAILURE OF THE PROPERTY TO
BE CONSTRUCTED IN ACCORDANCE WITH ANY PLANS AND SPECIFICATIONS THEREFORE, FOR THE COMPLIANCE OF THE PLANS AND SPECIFICATIONS FOR THE PROPERTY WITH APPLICABLE LAWS OR FOR THE FAILURE OF THE PROPERTY, OR ANY PART THEREOF, TO OTHERWISE COMPLY WITH ANY
APPLICABLE LAWS. It is agreed that Lessee or an Affiliate of Lessee has occupied the Property as tenant or owner immediately prior to entering into this Lease, has inspected the Property, is satisfied with the results of its inspections of the
Property and is entering into this Lease solely on the basis of the results of its own inspections and all risks incident to the matters discussed in the preceding sentence. The provisions of this Article 6 have been negotiated, and the foregoing
provisions are intended to be a complete exclusion and negation of any representations or warranties by Lessor, any Affiliate thereof or a Lender, express or implied, with respect to the Property, that may arise pursuant to any law now or hereafter
in effect, or otherwise and specifically negating any warranties under the Uniform Commercial Code. 
  

 5 

 Section 6.2. Lessee’s Right to Enforce Warranties. 
 (a) Lessor hereby assigns and sets over to, and Lessee hereby accepts the assignment of all of Lessor’s right, title and interest, and estate in, to
and under, any and all warranties and other claims against dealers, manufacturers, vendors, contractors and subcontractors relating to the construction, use and maintenance of the Property or any portion thereof now existing or hereafter acquired
(excluding from such assignment any such warranties and claims which by their terms are not assignable by Lessor without loss of some or all of the benefits of such warranties or claims); provided, however, that Lessor shall have no
obligations under, or liabilities with respect to, any such warranties and claims. 
 (b) Lessor authorizes Lessee (directly or through
agents) at Lessee’s expense to assert during the Lease Term, all of Lessor’s rights (if any) under any applicable warranty and any other claim that Lessee or Lessor may have against any dealer, vendor, manufacturer, contractor or
subcontractor with respect to the Property or any portion thereof. 
 (c) Lessor agrees, at Lessee’s expense, to cooperate with Lessee
and take all other action necessary as specifically requested by Lessee to enable Lessee to enforce all of Lessee’s rights (if any) under this Section 6.2, such rights of enforcement to be exclusive to Lessee, and Lessor will not, during
the Lease Term, amend, modify or waive, or take any action under, any applicable warranty and any other claim that Lessee may have under this Section 6.2 without Lessee’s prior written consent. 
 ARTICLE 7 
 LIENS 
 Section 7.1. Liens. Lessee shall not directly or indirectly create, incur, assume or suffer to exist any Lien on or with respect to any and
all of the Property, title thereto or any interest therein, to this Lease or the leasehold interest created hereby, or to Rent actually paid to Lessor, or the rentals payable with respect to the subletting of the Property (up to the amount of such
rentals payable to Lessor hereunder), except Permitted Liens. Lessee shall promptly, but not later than sixty (60) days after receipt of notice of the filing thereof, at its own expense, take such action as may be necessary duly to discharge or
eliminate or bond in a manner reasonably satisfactory to Lessor any such Lien (other than Permitted Liens); provided, however, Lessee may contest such Lien in good faith, upon satisfaction of the conditions contained in Section 8.6, below, and
need not discharge or bond such Lien while so doing provided (i) Lessee has a long term unsecured debt rating equal to or above the Trigger Rating; (ii) no action to foreclose the Lien has been brought in any judicial or quasi-judicial
action; and (iii) no Lease Event of Default is then continuing. 
 NOTHING CONTAINED IN THIS LEASE SHALL BE CONSTRUED AS CONSTITUTING
THE CONSENT OR REQUEST OF LESSOR, EXPRESS OR IMPLIED, TO OR FOR THE PERFORMANCE BY ANY CONTRACTOR, LABORER, MATERIALMAN, OR VENDOR OF ANY LABOR OR SERVICES OR FOR THE FURNISHING OF ANY MATERIALS FOR ANY CONSTRUCTION, ALTERATION, ADDITION, REPAIR OR
DEMOLITION OF OR TO THE PROPERTY OR ANY PART THEREOF, WHICH WOULD 
  

 6 

 RESULT IN ANY LIABILITY OF LESSOR FOR PAYMENT THEREFOR. NOTICE IS HEREBY GIVEN THAT LESSOR WILL NOT BE LIABLE FOR ANY
LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO LESSEE, OR TO ANYONE HOLDING AN INTEREST IN THE PROPERTY OR ANY PART THEREOF THROUGH OR UNDER LESSEE, AND THAT NO MECHANICS OR OTHER LIENS FOR ANY SUCH LABOR, SERVICES OR MATERIALS SHALL
ATTACH TO OR AFFECT THE INTEREST OF LESSOR IN AND TO THE PROPERTY. 
 Notwithstanding the foregoing paragraph, Lessor agrees to reasonably
cooperate with Lessee (without exposing its interest in the Property), at no cost to Lessor, to allow Lessee to perform alterations on the Property in accordance with Section 8.3. 
 ARTICLE 8 
 USE AND REPAIR 
 Section 8.1. Use. The Property may be used (“Permitted Use”) for any lawful purpose, except (a) for the operation of a
public nuisance, or any other use that would materially increase the risk of Lessor incurring environmental liability, (b) for any use that would make it impossible to obtain or would invalidate any insurance policy of the Property, provided
such policy is required to be maintained hereunder, (c) for any use that would involve the mining for, or removal of, any oil, gas or minerals, or (d) for any use that involves the storage, handling or processing of Hazardous Materials in
violation of Applicable Law. Lessor agrees that Lessee may exercise the rights of Lessor under any property association now existing or hereafter existing, provided (i) Lessee takes no action which could result in either a violation of this
Lease or a material adverse effect on the Property, and (ii) Lessee does not encumber the Property by any lien for the payment of money, which could survive expiration of the Lease, or execute documents on behalf of the Lessor unless such
documents will not have a material adverse effect on the Property, or Lessor’s interest therein. 
 Section 8.2.
Maintenance. Lessee, at its own expense, shall at all times, (i) maintain the Property in good condition and repair appropriate for its use, reasonable wear and tear excepted, (ii) maintain the Property in accordance with the
requirements of all insurance policies relating to the Property required to be maintained hereunder and in compliance with Applicable Laws and (iii) make repairs and Alterations of the Property necessary to keep the same in the condition
required by the preceding clauses (i) and (ii), whether interior or exterior, structural or nonstructural, ordinary or extraordinary, foreseen or unforeseen and regardless of whether such expenditures would constitute capital expenses under
GAAP if made by the owner of the Property; provided, if such repairs are structural and pursuant to Section 8.3 require the consent of the Lessor, Lessee shall obtain such consent before performing such repairs in accordance with the applicable
provisions of Section 8.3 below. In no event shall Lessor be entitled to any management fee, supervisory fee, administrative fee, or any other fee payable by Lessee relating to its ownership of the Property. 
 Section 8.3. Alterations. (a) At any time and from time to time, without Lessor’s consent, Lessee, at its sole cost and expense,
may make (1) non-structural Alterations to the Property; (2) structural Alterations to the Property costing, for each scope of work, as reasonably determined by Lessee, less than the Threshold Amount with prior notice to Lessor; and
(3) Structural Alterations in an amount, for each scope of work, as reasonably determined by Lessee, 
  

 7 

 at or above the Threshold Amount after giving prior written notice to Lessor, and obtaining Lessor’s prior written
consent, which shall not be unreasonably withheld, conditioned or delayed; provided that no Alteration (whether consent is necessary or not) shall (i) impair in any material respect the utility, remaining useful life, or fair market
value of the Property, in each case assuming that the Improvements are then being operated and maintained in accordance with this Article 8, or (ii) create a violation of this Lease, or (iii) increase in any material respect the risk of
liability to the Lessor including any material risk of liability under any Environmental Laws, or (iv) materially and permanently reduce the rentable square footage of the Improvements, or (v) materially weaken, temporarily (other than
during construction or repair of the structure) or permanently, the structure of the Improvements or any part thereof, or (vi) reduce the permitted uses thereof under applicable zoning or land use laws so as to reduce the fair market value of
the Property. Notwithstanding the requirements for notice and consent set forth above, Lessee may, in good faith, make any repairs (structural or non-structural) required by virtue of an emergency, without satisfying any otherwise applicable notice
and/or consent requirement, provided Lessee notifies Lessor of such repair (to the extent otherwise required) as promptly as is reasonably practical, after the emergency and obtains Lessor’s consent in the manner required in
Section 8.3(c), below, to the repairs made, and otherwise satisfies the provisions of this Section 8.3, all as promptly as practicable. Lessor shall consent to any work already performed or being performed unless such work either violates
the terms of this Lease or violates Applicable Law. 
 (b) Every Alteration shall comply with the following terms (which compliance shall be
at Lessee’s sole cost and expense): (i) except (unless required by Applicable Law) for Alterations costing less than $2,000,000 (or $500,000.00 if Lessee does not have a Required Rating equal to at least the Trigger Rating) for each scope
of work, as reasonably determined by Lessee, the Alteration shall be made with plans prepared by a certified architect or civil engineer who shall be licensed in the appropriate jurisdiction to the extent required for the filing of any plans in
connection with such Alteration (which architect may be an employee of Lessee or its Affiliates), and shall be done under the supervision of such architect or engineer, or other reasonably capable person, and copies of such plans and specifications
shall be delivered to Lessor prior to construction, (ii) the structural integrity of the existing Improvements will not be impaired upon completion of such work, (iii) Lessee shall obtain any licenses, approvals or permits required
(including final approvals), copies of which shall be delivered to Lessor upon written request by such party, and (iv) such Alterations, except as permitted pursuant to a party wall agreement granted in accordance with subsection 8.3(d) of this
Lease, will not encroach upon any adjacent premises. Lessor agrees to cooperate with Lessee (at no cost to Lessor) in signing permit applications and similar documents to the extent required for any Alteration. Lessee shall submit such applications
or similar documents to Lessor to the extent Lessor’s approval is required for the subject Alteration. Lessee may execute such applications or similar documents on behalf of and (if necessary) in the name of, Lessor for all Alterations for
which Lessor’s consent is not required, and for Alterations for which Lessor’s consent is required, has been granted, but Lessor does not execute such documents within 10 days of request therefore. Lessee shall promptly furnish Lessor with
copies of all documents Lessee has signed on behalf of Lessor. Nothing herein shall be deemed to impose any liability or responsibility on Lessor for performance or payment of such Alteration. Any Claim asserted against or incurred by Lessor arising
out of the foregoing shall be indemnified by Lessee pursuant to the terms of Section 19.1, below. In connection with any Alteration, Lessee shall perform and complete all work promptly and in a good, worker-like manner in compliance with
Applicable Laws and the plans and 
  

 8 

 specifications submitted to Lessor, if applicable. Lessee shall either (i) maintain or cause to be maintained at all
times during construction builder’s all risks insurance and comprehensive general liability insurance required under this Lease naming Lessor and Lender as loss payees as their interests may appear under such property insurance, and as
additional insureds under such liability insurance or (ii) self insure the risk otherwise insured by the policies required in subsection (i) hereof, which self insurance shall be subject to, and available only upon satisfaction of, the
provisions of Section 9.1(b). In the event Lessor and Lessee cannot agree as to whether Lessor unreasonably withheld its consent to a proposed Alteration, the parties agree to submit such dispute to the American Arbitration Association in
California for binding resolution in accordance with its expedited arbitration procedures. 
 (c) With respect to such structural Alterations
for which Lessee must obtain the consent of Lessor pursuant to the terms of this Lease, Lessor shall have fifteen (15) days after Lessee’s delivery of its request for consent, together with preliminary drawings and specifications for such
Alterations, within which Lessor, may grant or not grant Lessee’s request for consent. If Lessor, shall have not within such 15-day period responded to Lessee, Lessee may give a second notice which clearly shall state in bold-face type that the
failure to respond within five (5) days shall be deemed consent. If Lessor, shall not, within five (5) days after such second notice, notify Lessee that such consent will not be granted, such consent shall be deemed to have been granted.
All reasonable out-of-pocket costs of review incurred by Lessor (whether or not the Alteration is approved) shall be paid by Lessee within thirty (30) days of receipt of an invoice therefore. 
 (d) It is contemplated that Lessee, pursuant to a subground lease (“Ground Lease”) of even date herewith will construct improvements
(“Ground Lease Improvements”) on property adjacent to the Property (“Improvement Parcel”). The Ground Lease Improvements may connect to and attach to the Improvements. Lessor hereby consents to the alteration of the Improvements
as necessary to permit the attachment of the Ground Lease Improvements to the Improvements, access between the Property and the Improvement parcel including, but not limited to, access between the Ground Lease Improvements and the Improvements and
to the execution of a party wall agreement upon completion of the construction of the Ground Lease Improvements to permit, the continued existence of all connection points between the Improvements and the Ground Lease Improvements all in a form
reasonably acceptable to Lessor and Lessee and provided all of the following conditions are satisfied to Lessor’s reasonable satisfaction: (i) both the Improvements and Ground Lease Improvements shall be capable of complete independent
operation and shall, upon completion of a demising wall be separate, independent fully operational building in compliance with all Applicable Laws, (except that no computer, or information technology room will be required as part of the Ground Lease
Improvements) (ii) a cost sharing agreement shall have been executed allocating the cost for repair and replacement of all common areas, (iii) a date down title insurance policy shall have been issued by the Title Insurance Company subject
only to the Permitted Encumbrances and (iv) Lessee indemnifies Lessor its successors and assigns from all losses Lessor may incur as a result of the construction and operation of the Alterations connecting the Improvements to the Ground Lease
Improvements. At Lessor’s request, submitted in writing at least sixty (60) days in advance, Lessee shall deliver the Property prior to the expiration or earlier termination of this Lease with a demising wall separating the Improvements
and the Ground Lease Improvements (to the extent permissible under applicable Laws). Lessee shall be responsible for all costs and expenses in connection with the construction of the demising wall. 
  

 9 

 (e) It is contemplated that Lessee pursuant to the Ground Lease will use commercially reasonable efforts
to create a condominium regime separating the Property from the Improvement Parcel as separate condominium units. Upon completion of the condominium regime Lessee will assume all obligations of a condominium owner of the Property as are set forth in
the condominium covenants, conditions and restrictions or otherwise established by separate documents or by applicable law except to the extent inconsistent with allocation of obligations between Lessor and Lessee as set forth in the Lease.

 Section 8.4. Title to Alterations. Title to Alterations shall without further act vest in Lessor and shall be deemed to
constitute a part of the Property and be subject to this Lease in the following cases: 
 (a) such Alteration shall be in replacement of or in
substitution for a portion of the Improvements as of the date hereof, 
 (b) such Alteration shall be required to be made pursuant to the
terms of Section 8.2; or 
 (c) such Alteration shall be Nonseverable. 
 If an Alteration is not within any of the categories set forth in Section 8.4(a) through Section 8.4(c), then title to such Alteration shall
vest in Lessee and shall be removed by Lessee to the extent required in accordance with Article 10 hereof. All Alterations to which title shall vest in Lessee as aforesaid, and all Lessee’s Equipment and Personalty, so long as removal thereof
shall not result in the violation of any Applicable Laws or this Lease, may be removed at any time by Lessee, provided that Lessee shall, at its expense, repair any damage to the Property caused by the removal of such Alteration. Lessee shall
provide “AS-BUILT” plans to Lessor for any structural Alterations within a single scope of work (as reasonably determined by Lessee) costing in excess of $2,000,000.00. 
 Section 8.5. Compliance with Law; Environmental Compliance. 
 (a) Lessee, at Lessee’s expense, shall comply, and shall cause its subtenants and other users of the Property to comply, in all material respects at all times with all Applicable Laws, including Environmental
Laws. Such compliance includes, without limitation, Lessee’s obligation, at its expense, to take Remedial Action when required by Applicable Laws (in accordance with Applicable Laws, and this Lease) whether such requirement is now or hereafter
existing, currently known or unknown to Lessee and/or Lessor, as and when such requirements are known to Lessee. Lessee shall not however, be responsible to take Remedial Action in connection with a Release caused solely by the active (but not
passive) actions of Lessor or its employees, agents or contractors. In the event that Lessee is required or elects to enter into any plan relating to a Material Remedial Action in connection with the Property with respect to any Environment Laws,
Lessee shall periodically apprise Lessor of the status of such remediation plan and, upon Lessor’s request, provide copies of all correspondence, plans, proposals, contracts and other documents relating to such plan or proposed plan. Lessee may
in good faith contest 
  

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 the applicability or alleged liability under any Environmental Law to the Property, provided (i) such contest will
not result in a lien, encumbrance or judgment against the Property or Lessor, (ii) such contest satisfies the conditions set forth in subsections 8.6(i), (ii), (iii), (iv), (v), (vi) and (vii), below, (iii) Lessee then has a Required
Rating equal to or better than the Trigger Rating, and (iv) compliance with such Law will be satisfied as of the expiration date or earlier termination of the Lease, and if not completed by the expiration date, Lessee will continue to remain
liable to comply with such Law and shall diligently prosecute such plan, and Lessor shall provide access to the Property to allow Lessee to finish its remediation plan. Lessee shall keep Lessor regularly apprised of the status of such contest. In
all events Lessee must pay any cost, fine, penalty, assessment or other charge after the contest is either adversely decided or terminated voluntarily by Lessee or because it no longer has the right to contest pursuant to the terms of the Lease. In
the event Lessee does not have a Required Rating equal to or in excess of the Trigger Rating, Lessee may nonetheless contest the applicability of any Environmental Law provided that Lessee and Lessor agree upon an Approved Environmental Consultant
who shall, at Lessee’s sole cost and expense, prepare a report within sixty (60) days of being retained, which report shall state the costs the Approved Environmental Consultant reasonably believes is likely to be incurred by Lessee to
comply with the Environmental Law in the event Lessee loses its contest. If, within thirty (30) days of receipt of said report, Lessee posts a letter of credit or other bond in a form reasonably acceptable to Lessor or deposits cash with the
Proceeds Trustee an amount equal to 110% of the cost estimated by the Approved Environmental Consultant to comply with the Environmental Law, Lessee may continue the contest, provided the other terms of this Section 8.5 are met. In the event
Lessee loses the contest and is forced to incur costs to comply with the Environmental Law, the Proceeds Trustee shall dispense the amount retained by it pursuant to this paragraph from time to time, in accordance with the provisions of
Section 12.4 below, with any balance remaining thereafter to be disbursed to Lessee provided no Lease Event of Default then exists and is continuing. Lessor and Lessee shall reasonably cooperate in selecting the Approved Environmental
Consultant. 
 (b) Lessee shall notify Lessor promptly if (i) Lessee becomes aware of the presence or Release of any Hazardous Material
at, on, under, emanating from, or migrating to, the Property in any quantity or manner, which could reasonably be expected to violate in any material respect any Environmental Law or give rise to any Material liability, or (ii) Lessee receives
any written notice, claim, demand, request for information, or other communication from a Governmental Authority or a third party regarding the presence or Release of any Hazardous Material at, on, under, within, emanating from, or migrating to the
Property or related to the Property which could reasonably be expected to violate in any material respect any Environmental Law or give rise to any Material liability. In connection with any actions undertaken by Lessee or at Lessee’s direction
pursuant to this Lease, Lessee shall at all times comply with all applicable Environmental Laws and with all other Applicable Laws and shall use an Approved Environmental Consultant to perform any Remedial Action. 
 Section 8.6. Payment of Impositions. 
 (a) Lessee shall pay or cause to be paid all Impositions before any fine, penalty, premium, further interest (except as provided in the immediately succeeding sentence with respect to installments) or cost may be assessed or added for
nonpayment, such payments to be made directly to the taxing authorities where feasible. If requested, Lessee shall deliver to 
  

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 Lessor copies of receipts, canceled checks or other documentation reasonably satisfactory to Lessor evidencing payment of
Impositions to the extent Lessee maintains such documentation as part of its customary retention policy; provided, however, that Lessee shall maintain in its records evidence of payment of Taxes for a period of no less than four
(4) years. If any such Imposition may, at the option of the taxpayer, lawfully be paid in installments (regardless whether interest shall accrue on the unpaid balance of such Imposition), Lessee may exercise the option to pay the same in
installments, and in such event Lessee shall pay only those installments that become due and payable during the Lease Term or relate to the Lease Term, as the same become due and before any fine, penalty, premium, further interest or cost may be
assessed or added thereto. 
 (b) Lessee shall pay to Lessor on each Rent Payment Date one-twelfth of the Taxes that Lessor estimates will be
payable during the next ensuing twelve (12) months in order to accumulate with Lessor sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates and (said amounts are hereinafter called the
“Tax Escrow Fund”). The Tax Escrow Fund and the other payments of Rent, shall be added together and shall be paid, monthly, as an aggregate sum by Lessee to Lessor. Lessor will apply the Tax Escrow Fund to payments of Taxes
required to be made by Lessee pursuant to this Lease. In making any payment relating to the Tax Escrow Fund, Lessor may do so according to any bill, statement or estimate procured from the appropriate public office or from Lessee without inquiry
into the accuracy of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax lien or title or claim thereof, provided, however, Lessor shall use reasonable efforts to pay such real property taxes
sufficiently early to obtain the benefit of any available discounts of which it has knowledge. If the amount of the Tax Escrow Fund shall exceed the amounts due for Taxes, Lessor shall, in its sole discretion, return any excess to Lessee or credit
such excess against future payments to be made to the Tax Escrow Fund. Any amount remaining in the Tax Escrow Fund in excess of the Taxes payable by Tenant hereunder shall be promptly returned to Lessee upon the expiration or earlier termination of
the Lease. If at any time Lessor reasonably determines that the Tax Escrow Fund is not or will not be sufficient to pay Taxes by the dates set forth above, Lessor shall notify Lessee of such determination and Lessee shall increase its monthly
payments to Lessor by the amount that Lessor estimates is sufficient to make up the deficiency at least thirty (30) days prior to delinquency of the Taxes. 
 (c) Notwithstanding the foregoing paragraphs (a) and (b), Lessee shall have the right to contest any Imposition, subject to the following: (i) such contest shall be at its sole cost and expense, (ii) if
the Imposition being contested is in the amount of $2,000,000.00 or more, Lessee shall provide prompt notice to Lessor of such Imposition and contest and the grounds thereof, and either (A) have a Required Rating equal to the Trigger Rating or
(B) post a letter of credit or other bond in a form reasonably acceptable to Lessor or deposit cash with the Proceeds Trustee in an amount equal to 110% of the amount contested, as reasonably determined by the Lender, to the extent such
contested Imposition is not paid to the applicable Governmental Authority, (iii) such contest shall be by appropriate legal proceedings conducted in good faith and with due diligence, (iv) such contest will operate to suspend the
collection of, or other realization upon, such Imposition, from any Property or other interest of Lessor or from any Rent (or otherwise affect Lessee’s obligation to pay, and Lessor’s right to receive, Rent), (v) such contest will not
adversely affect the Lender’s lien on any Property, or Lessor’s right to any Property (for purposes hereof, “adversely affecting” being deemed to mean such lien or Lessor’s right is subject to 
  

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 reasonable likelihood of extinguishment), (vi) such contest will not materially and adversely interfere with the
possession, use or occupancy or sale of any Property, (vii) such contest will not subject Lessor or the Lender to any civil (other than for the amounts being contested) or criminal liability, (viii) Lessee shall not postpone the payment of
any Imposition for such length of time as shall permit the Property to become subject to a lien created by such item being contested that is prior to the lien of the Mortgage (other than a lien of real property taxes which are already a first lien)
and (ix) no Lease Event of Default is existing. Lessee shall pay any Imposition (and related costs) promptly after forgoing any contest or after receipt of a final non-appealable adverse judgment. 
 Section 8.7. Adjustment of Impositions. Impositions with respect to the Property for a billing period during which Lessee’s obligation
to indemnify Lessor pursuant to this Lease expires or terminates as to the Property shall be adjusted and prorated on a daily basis between Lessor and Lessee, whether or not such Imposition is imposed before or after such expiration or termination,
and Lessee’s and Lessor’s obligation to pay its pro rata share thereof shall survive such expiration or termination (to the extent, with respect to Lessor, it is obligated to reimburse Lessee for Impositions paid by Lessee for periods
after expiration of the Lease Term). Lessor acknowledges that Lessee may bring any tax certiorari or other actions for refunds of Impositions or adjustments of Impositions for which Lessee is liable under this Lease, or relating to periods prior to
the commencement date of the Term and Lessee shall be entitled to all such refunds; provided Lessee shall take no such action which could increase any Imposition for a period after the expiration of the Lease. During the Term, Lessor agrees to
cooperate with Lessee in such proceedings, at no cost to Lessor. 
 Section 8.8. Utility Charges. Lessee shall pay or cause to be
paid, directly to the party entitled, all charges for electricity, power, gas, oil, water, telephone, sanitary sewer services and all other utilities used in or on the Property prior to and during the Lease Term, and such obligation on the part of
Lessee shall survive the expiration or earlier termination of this Lease until all such outstanding balances for services rendered prior to or during the term of this Lease have been paid. Any refunds of such charges attributable to the Term or the
period prior to the commencement of the Term shall be the property of Lessee, and Lessor shall pay the same to Lessee promptly upon its receipt thereof. Lessee shall have the right to select all service providers for the Property. Lessor shall not
be entitled to charge any fees associated with Lessee’s acquisition and/or use of utilities. 
 Section 8.9. Litigation; Zoning;
Joint Assessment. Lessee shall give prompt written notice to Lessor of any litigation or governmental proceedings pending or threatened against Lessee or the Property of which Lessee has actual knowledge, which could reasonably be expected to
materially adversely affect the condition or business of the Property. Without the prior written consent of Lessor, which consent shall not be unreasonably withheld, conditioned, or delayed, Lessee shall not initiate any zoning reclassification for
the Property, or any portion thereof, or seek any variance under any existing zoning ordinances or use or permit the use of any portion of the Property in any manner that could result in such use becoming a non-conforming use under any zoning
ordinance or any other Applicable Law. Lessee shall not initiate any proceeding to cause the Property to be jointly assessed with any other property or with any personal property of Lessee, or take any other action or initiate any proceeding which
might cause the personal property of the Lessee to be taxed in a manner whereby such taxes or levies could be assessed against the Property. 
  

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 ARTICLE 9 
 INSURANCE 
 Section 9.1. Coverage. 
 (a) Subject to Section 9.1(b), Lessee shall maintain insurance of the types and in the amounts set forth on Schedule 9.1 attached hereto and made a
part hereof. 
 (b) So long as (i) no Lease Event of Default has occurred and is continuing and (ii) Lessee has a Required Rating
at least equal to the Trigger Rating, Lessee shall be entitled to self-insure against any and all risks it would otherwise be required to insure against under Section 9.1(a), provided that such self-insurance program of this subsection
(b) does not violate any Applicable Law. During any period that Lessee is self insuring, Lessee shall not be required to deliver any policies, certificates or other evidence of insurance other than a certificate of self-insurance acknowledging
Lessee’s insurance obligation under the Lease, and confirming Lessee’s decision to self-insure (to the extent Lessee is in fact self insuring). If Lessee does not, or is not permitted to, self-insure, then (i) Lessee shall maintain a
policy or policies of commercial general liability insurance with respect to the Property, and shall cause Lessor and the Lender to be named as an additional insured on such policy or policies and (ii) Lessee shall maintain a policy or policies
of property insurance with respect to the Property, and Lessee shall cause Lessor and the Lender to be named loss payee as their interests may appear on such policy or policies, all in forms and amounts as set forth in Schedule 9.1. 
 (c) Nothing in this Article 9 shall prohibit the Lessee from maintaining at its expense insurance on or with respect to the Property, naming the Lessee
as insured and/or loss payee for an amount greater than the insurance required to be maintained under this Section 9.1, unless such insurance would conflict with or otherwise limit the availability of or coverage afforded by insurance required
to be maintained under Section 9.1. Nothing in this Section 9.1 shall prohibit the Lessor from maintaining at its expense other insurance on or with respect to the Property or the operation, use and occupancy of the Property, naming the
Lessor as insured and/or payee, unless such insurance would conflict with, cause the Lessor to be a coinsurer or otherwise limit or adversely affect the ability to obtain, or the cost of the insurance required to be maintained under
Section 9.1. 
 (d) Copies of any certificates required to be delivered under Schedule 9.1 shall be delivered to Lessor at the same time
delivered to the Lender. 
 (e) Irrespective of the cause thereof, Lessor shall not be liable for any loss or damage to any buildings or
other portion of the Property resulting from fire, explosion or any other casualty. In the event of Lessee’s failure to obtain or maintain the insurance called for under this Lease after notice and applicable grace, Lessor shall have the right,
together with Lessor’s remedies set forth herein, to obtain the policies of insurance required under this Lease and to bill Lessee for the premium payments therefor, together with interest at the Default Rate. Lessor shall have no obligation to
maintain insurance of any nature or type whatsoever. 
  

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 (f) In the event Lessee elects to self-insure, it shall be obligated to use or pay to third parties, all
amounts that Lessor, or such third party, would have received had Lessee not self-insured. The foregoing shall not, however, act as a limit on Lessee’s liability. Sums due from Lessee in lieu of insurance proceeds because of Lessee’s
self-insurance program shall be treated as insurance proceeds for all purposes under this Lease. 
 (g) Each policy required to be carried by
Lessee under this Lease shall also provide that any loss otherwise payable thereunder shall be payable notwithstanding any act or omission of Lessor or Lessee which might, absent such provision, result in a forfeiture of all or a part of such
insurance payment. 
 (h) Lessee shall comply with all insurance requirements applicable under any insurance policies required to be
maintained under this Lease. 
 ARTICLE 10 
 RETURN OF PROPERTY TO LESSOR 
 Section 10.1. Return of Property to Lessor. Lessee shall, upon the expiration or
termination of this Lease, and at its own expense, return the Property to Lessor by surrendering the same into the possession of Lessor: 
 (a) free and clear of all Liens (whether by payment or bonding), except that Lessee shall have no responsibility or liability in respect of (i) Lessor Liens, (ii) any Lien created by the Mortgage and related debt documents, and
(iii) Liens for taxes not yet due and payable; and 
 (b) in compliance in all material respects with all Applicable Laws and in
compliance with the maintenance conditions required by this Lease. All Alterations and Lessee’s Equipment and Personalty not removed by Lessee by the last day of the Lease Term (but in the event of a termination other than upon the expiration
of the Base Term or any Renewal Term, within thirty (30) days after said termination of this Lease), other than those Alterations as to which title shall vest in Lessor pursuant to Section 8.4, shall be deemed abandoned in place by Lessee
and shall become the property of Lessor. Lessee shall pay or reimburse Lessor for any reasonable, actual, out-of-pocket costs incurred by Lessor in connection with the removal or disposal of such relinquished property, which obligation shall survive
the expiration or termination of this Lease. In no event shall Lessee be required to remove or pay for the removal of any built in, permanent fixtures or improvements existing on, or within, the Property as of the date of this Lease or for any
raised computer floors built during the Term or for any other Alterations made in compliance with the terms of this Agreement, or for any cabling or wiring (or similar property) now or hereafter located on or in the Property. 
 Upon the return of the Property, Lessee shall deliver therewith: 
 (i) all transferable licenses and permits pertaining to the Property by general assignment, without warranty or recourse; 
  

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 (ii) as built-drawings including plans for HVAC, mechanical and electrical systems, to
the extent in Lessee’s possession and not previously delivered to Lessor, without warranty or recourse; 
 (iii) keys to
the Property; and 
 (iv) assignment of all maintenance contracts (to the extent required by Lessor) and existing warranties
applicable to the Property by general assignment, without warranty or recourse to the extent assignable. 
 Lessee agrees to reasonably
cooperate with Lessor and its representatives to effectuate a smooth transition of the operation and maintenance of the Property. Notwithstanding anything expressly to the contrary hereunder, providing Lessee surrenders the Property and all
Alterations and Equipment upon the expiration or termination of this Lease in compliance with all Applicable Laws, the failure to remove any of Lessee’s Alterations or Equipment in accordance with the provisions hereof shall not result in
Lessee being deemed a holdover tenant hereunder. 
 ARTICLE 11 
 ASSIGNMENT BY LESSEE 
 Section 11.1. Assignment by Lessee. So long as no Lease Event of Default
has occurred and is continuing, Lessee may, at Lessee’s sole expense, without the consent of Lessor, assign this Lease for a period that does not extend beyond the Lease Term, to any Person, provided, however, that any such Person or
other Person is not a debtor or debtor-in- possession in a voluntary or involuntary bankruptcy proceeding at the commencement of the assignment. For purposes hereof, an assignment shall include a merger or consolidation of Lessee. Any assignee shall
assume in writing any obligations of Lessee arising from and after the effective date of the assignment, provided, however, that no such assignment shall become effective until (i) a fully executed copy of an assignment and assumption
agreement shall have been delivered to Lessor and the Lender, and (ii) such assignee shall have executed such instruments and other documents and provided such further assurances as the Lender shall reasonably request to ensure that such
assignment is subject to the Mortgage and any related debt documents. Notwithstanding any such assignment, Lessee shall not be released from its primary liability hereunder and shall continue to be obligated for all obligations of “Lessee”
in this Lease, which obligations shall continue in full effect as obligations of a principal and not of a guarantor, as though no assignment had been made. Lessee will have the right, subsequent to any assignment (a) to receive a duplicate copy
of each notice of default sent by Lessor to any assignee (but such notice shall be effective as against the Lessee, as well as any subsequent assignees, even if a copy has not been delivered to such requesting assignee), and (b) to cure any
default by any assignee under the Lease within the cure period provided for hereunder. Lessee’s liability hereunder shall continue notwithstanding the rejection of this Lease by an assignee or any sublease of this Lease pursuant to
Section 365 of Title 11 of the United States Code, any other provision of the Bankruptcy Code, or any similar law relating to bankruptcy, insolvency, reorganization or the rights of creditors, which arises subsequent to such assignment. In the
event Lessee assigns this Lease and it shall thereafter be rejected in a bankruptcy or similar proceeding, a new lease 
  

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 identical to this Lease shall be re-instituted as between Lessor and Lessee without further act of either party, provided
Lessor shall not be obligated to deliver to Lessee possession of the Property free of any tenancy created or caused by Lessee or any entity holding by or through Lessee but Lessee may, in Lessor’s name, but at Lessee’s expense, take such
action as it deems appropriate to have such assignee removed from the Property. Lessor shall reasonably cooperate with Lessee in such efforts. Nothing herein shall be construed to permit Lessee to mortgage, pledge, hypothecate or otherwise
collaterally assign in any manner or nature whatsoever Lessee’s interest under this Lease in whole or in part. Lessee shall provide written notice to Lessor and the Lender of any assignment of this Lease within thirty (30) days after the
effective date thereof and an executed copy of the approved agreement of assignment and assumption within thirty (30) days after the execution thereof. To the extent an assignee of this Lease fails to perform on behalf of Lessee the obligations
of Lessee hereunder, and Lessee performs such obligations, then Lessee shall be subrogated to the rights of Lessor as against such assignee in respect of such performance. 
 ARTICLE 12 
 LOSS; DESTRUCTION; CONDEMNATION OR DAMAGE 
 Section 12.1. Event of Loss. If there shall occur an Event of Loss with respect to the Property (the “Affected Property (for
purposes of this Lease, the Affected Property being the entire Property)”), Lessee shall give Lessor prompt written notice thereof and elect, within sixty (60) days after the occurrence of the Event of Loss, one of the following options:

 (i) Offer to purchase the Affected Property from Lessor, on a Rent Payment Date, (the “Stipulated Loss Value Date”), and
which Rent Payment Date shall be the first Rent Payment Date at least forty (40) days after Lessor accepts such offer, for a purchase price equal to the sum of (A) the Stipulated Loss Value for the Affected Property, determined as of such
Stipulated Loss Value Date, plus (B) all unpaid Rent with respect to the Affected Property due but unpaid through such Stipulated Loss Value Date, plus (C) an amount equal to the reasonable out-of-pocket attorneys’ fees of Lessor
relating to the purchase by Lessee as a result of such Event of Loss. Lessor (subject to the consent of the Lender), shall have sixty (60) days from the date of receipt of Lessee’s offer to decide whether to reject such offer. If Lessee
has not received a response after forty (40) days, it may send a second notice to the foregoing parties, stating clearly in boldface that Lessor’s failure to reject such offer by the later of (i) the original sixty
(60) day period, or (ii) ten (10) days after delivery of such second notice, shall be deemed Lessor’s acceptance of such offer; or 
 (ii) Restore and rebuild the Improvements damaged as a result of such Event of Loss (regardless of the availability of any insurance proceeds) so as to have a value, utility and remaining useful life as nearly as
reasonably practicable equal to the value, utility and remaining useful life of the Affected Property immediately prior to such Event of Loss, and in all events as required by Section 8.2, such restoration to be done as expeditiously as is
commercially reasonable and to be substantially completed, subject to force majeure, within twenty four months from the date of the Event of Loss, and in any event by the expiration of the Lease Term (and Lessee shall remain liable for the
completion of such restoration beyond the expiration of the Lease Term to the extent not completed prior to such expiration but Lessee’s obligation to 
  

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 complete the Improvements shall not constitute a holdover by Lessee, who shall be granted access to the Property for such
completion). In the event, due to force majeure events, restoration cannot be completed by the expiration of the Term, Lessee shall diligently complete the restoration thereafter and shall be liable to pay Base Rent (based on the Base Rent in effect
on the day prior to the expiration of the Term (on a per diem basis)) and Supplemental Rent, until such restoration is complete. 
 Notwithstanding the options described in subsections 12.1(i) and (ii) if the Event of Loss occurs in the last of two (2) years of the Term, Lessee shall have the right to terminate the Lease effective as of the date of delivery of
a notice of termination to Lessor not later than sixty (60) days following the Event of Loss. Upon such termination Lessor shall be entitled to all insurance proceeds and Lessee shall credit Lessor with all deductible amounts and Rent until the
effective date of such termination. Lessee shall not have the right to terminate this Lease upon an Event of Loss if Lessee has exercised or intends to exercise its early termination right as provided for in the definition of Base Term. In other
words Lessee does not, under any circumstances, have the right to exercise both rights of early termination and the right to terminate this Lease upon an Event of Loss pursuant to this paragraph. 
 If Lessee makes an offer to purchase pursuant to clause (i) above of this Section 12.1, and Lessor accepts such offer or is deemed to accept
such offer within the sixty (60) day period referred to in the last sentence of clause (i) above, the conveyance shall occur, and Lessee shall pay to Lessor the Stipulated Loss Value and Rent described in said clause (i) on the
Stipulated Loss Value Date; provided that any Net Proceeds related to the Affected Property then held by Lessor or the Lender shall be credited against the portion of such purchase price payable to Lessor and the balance of Net Proceeds, if
any, shall be paid to or retained by Lessee. Concurrently with the payment in full of the amounts payable pursuant to said clause (i), the terms of Article 22 shall be complied with. 
 In the event Lessor rejects the offer of Lessee to purchase the Affected Property as provided in clause (i) of this Section 12.1 (which it may
not do without the Lender’s written consent unless it first pays to the Lender an amount sufficient to pay all amounts due Lender with respect to the Affected Property ), the following amount shall be paid to or retained by Lessor on such
Stipulated Loss Value Date: (A) all Net Proceeds related to the Affected Property, provided that, if Lessee is self-insured (as permitted above) by means of deductibles, retained risks or no insurance whatsoever, Lessee shall pay such
amounts or additional amounts so that Lessor receives in total (including any Net Proceeds) an amount that would have been paid by a third-party insurer under a customary commercial all-risk full replacement-value insurance policy substantially
similar to that described in Schedule 9.01(a)(ii) without deductibles or retained risks (but in any case amounts paid to Lessor will not be in excess of the replacement value of the Improvements immediately preceding the Event of Loss, which
replacement value shall be as mutually agreed between Lessee and Lessor and, failing such agreement within fifteen (15) days of the request of either party to do so, by the Appraisal Procedure), plus (B) unpaid Rent due with respect to the
Affected Property on and through such Stipulated Loss Value Date. 
 Upon payment in full of the amounts set forth in clauses (A) and
(B) of the preceding paragraph (in the event Lessor rejected Lessee’s offer) or upon payment in full of the amounts set forth in clause (i) of the first sentence of this Section 12.1 and consummation of the sale to 
  

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 Lessee (or its designee) (in the event Lessor accepted Lessee’s offer to purchase), (1) the Lease Term shall
end, and (2) the obligations of Lessee hereunder (other than any obligations expressed herein as surviving termination of this Lease) shall terminate as of the date of such payment. 
 If Lessor elects to reject the offer of Lessee hereunder to purchase the Property pursuant to this Section 12.1 while a Mortgage encumbers the
Property, any notice of rejection shall only be effective, and Lessor shall only be entitled to reject such offer, if such notice is in writing and either such rejection is concurrently consented to in writing by the Lender or Lessor concurrently
with delivery of its rejection notice pays to the Lender all amounts secured by the Mortgage with respect to the Affected Property, and reasonably evidences such payment to Lessee, and absent such repayment or consent by the Lender within the period
referred to in the last sentence of clause (i) above, Lessor shall be deemed to have accepted Lessee’s offer. 
 Section 12.2.
Application of Payments Upon an Event of Loss When Lease Continues. Payments received at any time by Lessor or Lessee from any Governmental Authority or insurance carrier or other Person with respect to any Event of Loss in a case in which
this Lease will not terminate (and there will occur no abatement or reduction of rent) because Lessee has elected to proceed under clause (ii) of Section 12.1, shall be paid to Lessee to be applied, as necessary, to the repair or
restoration of the Property as described in clause (ii) of Section 12.1. Any excess insurance proceeds remaining thereafter shall be retained by Lessee. In the event of a condemnation which does not result in a termination of the Lease,
the proceeds of the Condemnation award remaining after repair and restoration, to the extent the excess equals or exceeds $500,000.00, shall be paid to the Lessor. The first $500,000.00 of excess Condemnation proceeds shall be allocated between
Lessor and Lessee as set forth on Schedule 12.2 attached hereto. In no event shall Rent be adjusted. 
 Section 12.3. Application of
Payments Not Relating to an Event of Loss. In case of a Condemnation or Casualty which is not an Event of Loss or which does not result in a termination of this Lease in accordance with the above provisions of Article 12, this Lease shall remain
in full force and effect, without any abatement or reduction of Rent. Subject to Section 12.4, all Net Casualty Proceeds and all Net Condemnation Proceeds, as the case may be, shall be paid to Lessee to be applied, as necessary, to the repair
or restoration of the Property so such Property shall have a value, utility and remaining useful life as close as reasonably practicable to the value, utility and remaining useful life existing immediately prior to such Casualty or Condemnation. Any
excess insurance proceeds remaining thereafter shall be retained by Lessee and any excess condemnation award remaining thereafter in excess of $500,000.00 shall be paid to Lessor. The first $500,000.00 of excess condemnation proceeds shall be
divided by Lessor and Lessee as set forth on Schedule 12.2. 
 Section 12.4. Other Dispositions. Net Casualty Proceeds or Net
Condemnation Proceeds, as the case may be, in excess of the Threshold Amount (each, as applicable, the “Restoration Fund”) in respect of such Casualty or Condemnation, as the case may be, shall be paid to the Proceeds Trustee for
release to Lessee as restoration progresses, subject to and in accordance with Section 12.4(a). Lessor and Lessee hereby authorize and direct (i) any insurer, to make payment in excess of the Threshold Amount under policies of casualty
insurance required to be maintained by Lessee pursuant to Section 9.1(a) directly to the Proceeds Trustee instead of to Lessor and Lessee jointly, and (ii) any Governmental Agency to make payments of 
  

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 any Net Condemnation Proceeds in excess of the Threshold Amount directly to the Proceeds Trustee instead of to Lessor
and/or Lessee; and each of Lessee and Lessor hereby appoints the Proceeds Trustee as its attorney-in-fact to endorse any draft therefor for the purposes set forth in this Lease after approval by Lessee of the Proceeds Trustee, if the Proceeds
Trustee is other than the Lender. In the event that a Casualty shall occur at such time as Lessee shall not have maintained property or casualty insurance to the extent required by said Section 9.1(a) (i.e., Lessee is self insuring in
whole, or in part), Lessee shall be obligated to pay itself towards restoration the amount it self insures. Lessee shall be obligated to pay the Threshold Amount (or any amount it self-insured) towards restoration costs prior to the disbursement of
any funds from the Restoration Fund. 
 (a) The Restoration Fund, if any, shall be disbursed by the Proceeds Trustee by wire transfer of
immediately available funds within five (5) Business Days of the last submission made pursuant to and in accordance with the following conditions (provided that there shall be no more than one disbursement during each month): 
 (i) At the time of any disbursement, no Lease Event of Default shall exist and, subject to Article 7, no mechanics’ or
materialmen’s liens shall have been filed and remain undischarged, unbonded or not insured over. 
 (ii) Disbursements
(subject to the holdback in Section 12.4(a)(iv) below) shall be made from time to time in an amount not exceeding the hard and soft cost of the work and costs incurred since the last disbursement upon receipt of (1) satisfactory evidence,
including architects’ certificates when required pursuant to Section 8.3, of the stage of completion, of the estimated cost of completion and of performance of the work to date in a good and workmanlike manner in accordance with the
contracts, plans and specifications, (2) partial releases of liens from Lessee’s general contractor in respect of the disbursement made pursuant to the immediately preceding request, and (3) other reasonable evidence of cost incurred
(whether or not paid) so that the Proceeds Trustee is able to verify that the amounts disbursed from time to time are represented by work that is completed in place or delivered to the site and free and clear of (subject to Article 7),
mechanics’ and materialmen’s lien claims. 
 (iii) Each request for disbursement shall be accompanied by a
certificate of Lessee (1) agreeing to use amounts disbursed for the costs described in Section 12.4(a)(iv), (2) describing the work, materials or other costs or expenses for which payment is requested, (3) stating the cost
incurred in connection therewith, (4) stating that Lessee has paid costs and expenses for such work in an amount equal to the self insured and/or deductible amounts as permitted by Section 9.1(b) (and attaching thereto evidence thereof
reasonable satisfactory to Lessor) and (5) stating that Lessee has not previously received payment for such work or expense and the certificate to be delivered by Lessee upon completion of the work shall, in addition, state that the work has
been substantially completed and complies with the applicable requirements of this Lease. 
 (iv) The Proceeds Trustee shall
retain ten percent (10%) of the amounts otherwise disbursable until the restoration is at least fifty percent (50%) complete, and thereafter five percent (5%) until the restoration is substantially complete. 
  

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 (v) The Restoration Fund shall be kept by the Proceeds Trustee in a separate
interest-bearing federally insured account or invested in Permitted Investments (as directed by, or on behalf of, Lessee). 
 (vi) Prior to commencement of restoration and at any time during restoration, if the estimated cost of restoration, as reasonably determined by the Proceeds Trustee, exceeds the then amount of the Restoration Fund, Lessee shall fund at its
own expense the costs of such restoration until the remaining Restoration Fund is sufficient for the completion of the restoration. In the case of Casualty, any sum in the Restoration Fund which remains in the Restoration Fund upon the completion of
restoration shall be paid to Lessee. In the case of Condemnation, any sum in the Restoration Fund which remains in the Restoration Fund upon the completion of restoration shall be applied as set forth in Section 12.2. 
 Section 12.5 Negotiations. In the event the Property becomes subject to condemnation or requisition proceedings, Lessee shall control the
negotiations with the relevant Governmental Authority, unless: (i) a Lease Event of Default shall be continuing, or (ii) the Net Condemnation Proceeds will likely be in excess of the Threshold Amount (which determination shall be made in
Lessor’s reasonable discretion), in which case Lessor may elect in writing to control such negotiations; provided that in any event Lessor may elect to participate in such negotiations. Lessee shall give to Lessor and the Lender such
information, and copies of such documents, which relate to such proceedings and are in the possession of Lessee, as are reasonably requested by Lessor or the Lender. Lessor shall confer with Lessee as to any negotiations with Governmental
Authorities material to Lessee’s operations and shall not agree to any act that would have a material adverse effect on Lessee’s business. Notwithstanding the foregoing, in jurisdictions where a separate award may be granted for
Lessee’s Equipment and Personalty, moving and relocation expenses, business loss, business damages, loss of goodwill, unamortized costs of any Alterations title for which has not vested in Lessor pursuant to the terms of this Lease, and
Lessee’s attorneys’ fees, costs and expenses in the proceedings, Lessee may assert claims for and control the negotiations pertaining to such interests, provided that the Lessor’s award in respect to the Property is not
diminished by the award to Lessee. Lessee acknowledges that no payments shall be permitted hereunder other than on a Rent Payment Date. 
  

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 ARTICLE 13 
 INTENTIONALLY OMITTED 
 ARTICLE 14 
 SUBLEASE 
 Section 14.1. Subleasing Permitted; Lessee Remains Obligated.
Provided that no Lease Event of Default shall have occurred and be continuing at the time the sublease is entered into, upon fifteen (15) days’ prior written notice to Lessor (except for subleases to Affiliates, in which case no notice
shall be required), Lessee may at any time and from time to time sublease the Property or any portion or portions thereof to any Person or permit the occupancy of the Property or any portion or portions thereof by any Person who is not a debtor or
debtor-in-possession in a voluntary or involuntary bankruptcy proceeding at the commencement of the sublease term. Any such sublease, sub-sublease, license, occupancy agreement or similar agreement (each, a “Sublease”) shall not
release Lessee from its primary liability for the performance of its duties and obligations hereunder, and Lessee shall continue to be obligated for all obligations of “Lessee” in this Lease, which obligations shall continue in full effect
as obligations of a principal and not of a guarantor, as though no Sublease had been made. From time to time, but in no event more than once annually, upon Lessor’s request, Lessee shall forward to Lessor the names, businesses and square
footage leased (or location) of all subtenants (other than Subleases to Affiliates). 
 Section 14.2. Provisions of Subleases.
Each Sublease will: 
 (a) be expressly subject and subordinate to this Lease and any mortgage (including (the Mortgage)
encumbering the Property; 
 (b) not extend beyond the Lease Term minus one day; and 
 (c) terminate upon any termination of this Lease, unless Lessor elects in writing (which election must be consented to by the Lender), to
cause the sublessee to attorn to and recognize Lessor as the lessor under such Sublease, whereupon such Sublease shall continue as a direct lease between the sublessee and Lessor upon all the terms and conditions of such Sublease (it being agreed
that all Subleases with Affiliates of Lessee shall automatically terminate upon termination of this Lease). 
 Section 14.3.
Assignment of Sublease Rents. To secure the prompt and full payment by Lessee of the Rent and the faithful performance by Lessee of all the other terms and conditions herein contained on its part to be kept and performed, Lessee hereby
absolutely, presently assigns, transfers and sets over unto Lessor, subject to the conditions hereinafter set forth in this Section 14.3, all of Lessee’s right, title and interest in and to all Subleases, and hereby confers upon Lessor,
its agents and representatives, a right of entry in, and sufficient possession of, the Property to permit and ensure the collection by Lessor of the rentals and other sums payable under the Subleases, and further agrees that the exercise of the
right of entry and qualified possession by Lessor shall not constitute an eviction of Lessee from the Property or any portion thereof; provided, however, that Lessee shall continue to have the right to collect, use, enjoy and 
  

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 distribute all Sublease revenue (a) except during the continuance of a Lease Event of Default, or (b) until
this Lease and the Lease Term shall be canceled or terminated pursuant to the terms, covenants and conditions hereof, or (c) until there occurs repossession under a dispossess warrant or other judgment, order or decree of a court of competent
jurisdiction and then only as to such of the Subleases that Lessor may elect to take over and assume. Notwithstanding the foregoing, if the events described in Section 14.3(b) and Section 14.3(c) herein above have not occurred and if the
Lease Event of Default which caused such collection of revenue by Lessor shall have been cured by Lessee or otherwise not continue to exist, upon the written demand of Lessee, Lessor shall cease to exercise the rights granted hereunder to Lessor
with respect to the Subleases, and amounts collected under the Subleases and not applied to Lessee’s obligations hereunder shall promptly be paid over to Lessee. 
 ARTICLE 15 
 INSPECTION 
 Section 15.1. Inspection. Upon at least five (5) Business Days’ prior written notice to Lessee (or immediately if a Lease Event of Default shall be continuing) Lessor or its respective
representatives and agents (each, an “Inspecting Party”), may, in a commercially reasonable manner and at their own risk, inspect the Property, during normal business hours, to verify compliance with the provisions of this Lease. No
Sublease shall contain any restrictions on inspection other than as set forth herein. The Inspecting Party shall repair any damage caused by any inspection performed pursuant to Section 15.1. Unless a Lease Event of Default is continuing, no
intrusive tests are permitted. Lessee shall have the right during such inspection to have its representatives present at any such inspection, including security guards. In addition, Lessee may designate one or more reasonably sized “secure
areas” to which Lessor or Lender shall have no access, except during the continuance of a Lease Event of Default. Each Inspecting Party agrees to hold in confidence all proprietary information and trade secrets of which it becomes aware during
such inspection. All such inspections shall be at Lessor’s expense, unless a Lease Event of Default occurs and is continuing. Further, upon fifteen (15) Business Days’ prior notice to Lessee, but no more than once annually, the
Inspecting Parties, at their expense, may inspect the books and records as they relate to the maintenance and care of the Property during the term of this Lease (other than Lessee’s Equipment and Personalty), that are in the possession of
Lessee, which shall be made available at the Property or the headquarters of the Lessee. Such inspection shall be at the cost of the Inspecting Party unless a Lease Event of Default exists, in which event Lessee shall pay such costs. 
 ARTICLE 16 
 LEASE EVENTS OF DEFAULT

 Section 16.1. Lease Events of Default. The following events shall constitute a “Lease Events of Default”:

 (a) Lessee shall fail to make any payment of Base Rent, within five (5) Business Days after notice that such amount is due and unpaid;

  

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 (b) Lessee shall fail to make any late payment and/or pay interest at the Default Rate within ten
(10) days after notice that such amount is due and unpaid; 
 (c) Lessee shall fail to make any other payment of Supplemental Rent,
other than any amount described in clause (a) or clause (b) of this Article 16, and such failure shall continue for a period of ten (10) days after notice of such failure to Lessee from Lessor or Lender; 
 (d) Lessee shall fail to timely perform or observe any covenant or agreement (not otherwise specified in this Article 16) to be performed or observed by
it hereunder and such failure shall continue for a period of thirty (30) days after written notice thereof from Lessor or the Lender; provided that the continuation of such a failure for thirty (30) days or longer after such notice
shall not constitute a Lease Event of Default if such failure can be cured, but cannot reasonably be cured within such thirty (30) day period, and Lessee shall commence to cure such failure within such thirty (30) day period and shall be
diligently and continuously prosecuting the cure of such failure. 
 (e) except to the extent the Lessee is permitted to self-insure pursuant
to Section 9.1(b) and Schedule 9.1, Lessee shall fail to carry or maintain in full force any insurance required hereunder, and such failure shall continue for ten (10) business days after such obligations arises. but not beyond the
expiration date of any required policy of insurance; 
 (f) any representation or warranty made by the Lessee herein shall prove to have been
incorrect in any material respect when such representation or warranty was made and shall remain materially incorrect at the time in question, and is not cured in all material respects within thirty (30) days of notice to Lessee of such breach;
provided that the continuation of such a failure for thirty (30) days or longer after such notice shall not constitute a Lease Event of Default if such failure can be cured, but cannot reasonably be cured within such thirty (30) day
period, and Lessee shall commence to cure such failure within such thirty (30) day period and shall be diligently and continuously prosecuting the cure of such failure. 
 (g) (A) Lessee makes any general arrangement or assignment for the benefit of creditors; (B) Lessee becomes a “debtor” as defined in
11 U.S.C. § 101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within ninety (90) days); (C) the appointment of a trustee or receiver to take possession of
substantially all of the assets of Lessee where possession is not restored to Lessee within ninety (90) days; (D) the attachment, execution or other judicial seizure of substantially all of the assets of Lessee where such seizure is not
discharged within ninety (90) days; (E) Lessee admits in writing its inability to pay its debts generally as they become due; (F) Lessee files a petition or answer seeking reorganization or arrangement or other protection under the
Federal bankruptcy laws or any other applicable law or statute of the United States of America or any State thereof; (G) Lessee is liquidated or dissolved, or placed under conservatorship or other protection under any applicable federal or
state law; (H) any petition is filed by or against Lessee under Federal bankruptcy laws, or any other proceeding is instituted by or against Lessee seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, reorganization,
arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or
other similar official for Lessee, or for any substantial part of the property of Lessee, and such proceeding is not dismissed within ninety (90) days after institution thereof, or Lessee shall take any action to authorize or effect any of the
actions set forth above in this subsection (g). 
  

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 (h) Lessee shall commit a Lessee Event of Default under the Ground Lease. 
 ARTICLE 17 
 ENFORCEMENT 
 Section 17.1. Remedies. Upon the occurrence of any Lease Event of Default and at any time thereafter so long as the same shall be continuing,
Lessor may, at its option, by notice to Lessee do one or more of the following as Lessor in its sole discretion shall determine: 
 (a) Lessor
may, by notice to Lessee, terminate this Lease as of the date specified in such notice; provided (i) no reletting, reentry or taking of possession of any or all of the Property by Lessor will be construed as an election on Lessor’s
part to terminate this Lease unless a written notice of such intention is given to Lessee, (ii) notwithstanding any reletting, reentry or taking of possession, Lessor may at any time thereafter elect to terminate this Lease with respect to any
or all of the Property, and (iii) no act or thing done by Lessor or any of its agents, representatives or employees and no agreement accepting a surrender of any or all of the Property shall be valid unless the same be made in writing and
executed by Lessor. If Lessor shall have terminated the Lease, Lessor may demand that Lessee pay to Lessor, and Lessee shall pay to Lessor, the amounts set forth in subparagraphs (c) or (e) below. 
 (b) Lessor may whether or not the Lease is terminated (i) demand that Lessee, and Lessee shall upon the written demand of Lessor, return the
Property promptly to Lessor in the manner and condition required by, and otherwise in accordance with all of the provisions of, Article 10 as if the Property were being returned at the end of the Lease Term, and Lessor shall not be liable for the
reimbursement of Lessee for any costs and expenses incurred by Lessee in connection therewith, and (ii) without prejudice to any other remedy which Lessor may have for possession of the Property, enter upon the Property and take immediate
possession of (to the exclusion of Lessee) the Property and expel or remove Lessee and any other person who may be occupying the same (subject to the terms of any nondisturbance agreements with Lessor in favor of any subtenants), by summary
proceedings or otherwise, all without liability to Lessor for or by reason of such entry or taking of possession, whether for the restoration of damage to property caused by such taking or otherwise and, in addition to Lessor’s other damages,
Lessee shall be responsible for the reasonably necessary costs and expenses of reletting actually incurred. 
 (c) Lessor may sell the
Property at public or private sale, as Lessor may determine, free and clear of any rights of Lessee and without any duty to account to Lessee with respect to such action or inaction or any proceeds with respect thereto (except to the extent required
by the next succeeding sentence if Lessor shall elect to exercise its rights thereunder), in which event Lessee’s obligation to pay Base Rent hereunder for periods commencing after the Stipulated Loss Value Date next succeeding the date of such
sale shall be terminated. If Lessor shall have sold any of the Property pursuant to the above terms of this Section 17.1(c), Lessor may demand that Lessee pay to Lessor, and Lessee shall promptly pay to Lessor, on the date of such sale, as
liquidated damages for loss of a bargain and not as a penalty (the parties agreeing 
  

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 that Lessor’s actual damages would be difficult to predict, but the liquidated damages described below represent a
reasonable approximation of such amount), in lieu of Base Rent in respect of the Property due for the period commencing on the Stipulated Loss Date next succeeding the date of sale, an amount equal to the sum of: 
 (1) all unpaid Rent with respect to the Property due but unpaid through such Stipulated Loss Date; plus 
 (2) an amount equal to the present value of the amount of the Base Rent payments payable on the Business Day before the date preceding the
remaining scheduled Rent Payment Dates, discounted monthly at the Reference Rate; 
 (3) interest at the Default Rate on all
of the foregoing amounts from the date due until the date of actual payment; 
 to the extent such amount exceeds the net proceeds of such
sale. 
 (d) Except as Lessor may otherwise be required by Applicable Laws, Lessor may hold, keep idle or lease to others the Property as
Lessor in its sole discretion may determine, free and clear of any rights of Lessee and without any duty to account to Lessee with respect to such action or inaction or for any proceeds with respect to such action or inaction, except that
Lessee’s obligation to pay Base Rent from and after the occurrence of a Lease Event of Default, but prior to the termination of the Lease or the foreclosure of the Lien of the Lender, shall be reduced by the net proceeds, if any, received by
Lessor from leasing the Property to any Person, or allowing any Person to use the Property, other than Lessee for the same periods or any portion thereof, 
 (e) Lessor may, whether or not Lessor shall have exercised or shall thereafter at any time exercise any of its rights under Section 17.1(b) or 17.1(d), but only if the Property shall not have been sold under
Section 17.1(c), demand, by written notice to Lessee specifying a Stipulated Loss Value Date (the “Final Payment Date”) not earlier than twenty (20) days after the date of such notice, that Lessee pay to Lessor, and Lessee
shall pay to Lessor, on the Final Payment Date, as liquidated damages for loss of a bargain and not as a penalty (the parties agreeing that Lessor’s actual damages would be difficult to predict, but the aforementioned liquidated damages
represent a reasonable approximation of such amount), in lieu of Base Rent for periods commencing after the Final Payment Date, an amount equal to the sum of: 
 (1) all unpaid Rent with respect to the Property due but unpaid through such Stipulated Loss Value Date; plus 
 (2) an amount equal to the present value of the amount of the Base Rent payments payable on the Business Day before the dates preceding
the remaining scheduled Rent Payment Dates, discounted monthly at the Reference Rate; 
 (3) interest at the Default Rate on
all of the foregoing amounts from the date due until the date of actual payment. 
 (f) Lessor may retain and apply against Lessor’s
damages all sums which Lessor would, absent such Lease Event of Default, be required to pay to, or turn over to, Lessee pursuant to the terms of this Lease; or 
  

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 (g) Lessor may exercise any other right or remedy that may be available to it under Applicable Laws or in
equity, or proceed by appropriate court action (legal or equitable) to enforce the terms hereof or to recover damages for the breach hereof. A single or separate suits may be brought to collect any such damages for any period or periods with
respect to which Rent shall have accrued, and such suits shall not in any manner prejudice Lessor’s right to collect any such damages for any subsequent period, or Lessor may defer any such suit until after the expiration of the Base Term or
the then current Renewal Term, in which event such suit shall be deemed not to have accrued until the expiration of the Base Term, or the then current Renewal Term. 
 Section 17.2. Survival of Lessee’s Obligations. Except to the extent prohibited by Applicable Laws, no repossession of any or all of the Property or exercise of any remedy under this Lease, including
termination of this Lease, shall, except as specifically provided herein, relieve Lessee of any of its liabilities and obligations hereunder, including the obligation to pay Rent. In addition, except as specifically provided herein, Lessee shall be
liable for any and all unpaid Rent due hereunder before, after or during the exercise of any of the foregoing remedies, including all reasonable legal fees and other costs and expenses incurred by Lessor by reason of the occurrence of any Lease
Event of Default or the exercise of Lessor’s remedies with respect thereto, and including all costs and expenses incurred in connection with the return of the Property in the manner and condition required by, and otherwise in accordance with
the provisions of, Article 10 as if the Property were being returned at the end of the Lease Term. At any sale of any or all of the Property or any other rights pursuant to Section 17.1, Lessor or the Lender may bid for and purchase the
Property. 
 Section 17.3. Remedies Cumulative; No Waiver; Consents; Mitigation of Damages. To the extent permitted by, and
subject to the mandatory requirements of, Applicable Laws, each and every right, power and remedy herein specifically given to Lessor or otherwise in this Lease shall be cumulative and shall be in addition to every other right, power and remedy
herein specifically given or now or hereafter existing at law, in equity or by statute, and each and every right, power and remedy whether specifically herein given or otherwise existing may be exercised from time to time and as often and in such
order as may be deemed expedient by Lessor, and the exercise or the beginning of the exercise of any power or remedy shall not be construed to be a waiver of the right to exercise at the same time or thereafter any right, power or remedy. No delay
or omission by Lessor in the exercise of any right, power or remedy or in the pursuit of any remedy shall impair any such right, power or remedy or be construed to be a waiver of any default on the part of Lessee or to be an acquiescence therein.
Lessor’s consent to any request made by Lessee shall not be deemed to constitute or preclude the necessity for obtaining Lessor’s consent, in the future, to all similar requests. No express or implied waiver by Lessor of any Lease Event of
Default shall in any way be, or be construed to be, a waiver of any future or subsequent Lease Event of Default. Lessor shall use reasonable efforts to mitigate any damages suffered by Lessor that result from a Lease Event of Default. 
  

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 ARTICLE 18 
 RIGHT TO PERFORM FOR LESSEE 
 Section 18.1.Right to Perform for Lessee. If Lessee shall fail to
perform or comply with any of its agreements contained herein, following applicable notice and cure periods, Lessor may perform or comply with such agreement, and Lessor shall not thereby be deemed to have waived any default caused by such failure,
and the amount of payment required to be made by Lessee hereunder and made by Lessor on behalf of Lessee, and the reasonable out-of-pocket third-party costs and expenses of Lessor (including reasonable attorneys’ fees and expenses) incurred in
connection with the performance of or compliance with such agreement, as the case may be, together with interest thereon at the Default Rate, shall be deemed Supplemental Rent, payable by Lessee to Lessor upon demand. In addition, during the
continuance of a Lease Event of Default in respect of Lessee’s obligations under Section 8.2 and/or Section 8.5, then, in addition to the rights above and at the cost of Lessee, (a) Lessor shall have the right to hire Persons (as
selected by Lessor in its reasonable discretion) to cure such Lease Event of Default, and to take any and all other actions necessary to cure such Lease Event of Default, and (b) Lessee shall cooperate with Lessor, and the Persons hired by
Lessor, in the performance of such cure, including, without limitation, (i) providing access to the subject Property at reasonable times every day of the week, (ii) making available water, electricity and other utilities existing at or on
the subject Property, and (iii) restricting or closing the Property, but only if such restriction or closure is reasonably necessary for the performance of such cure and provided that such closure shall be done for and during a time period and
in such manner that balances the need for the maintenance or repair of the Property (and doing so in a safe manner) and the continuing operations of the Property. 
 ARTICLE 19 
 INDEMNITIES 
 Section 19.1. General Indemnification. 
 (a) Lessee agrees to indemnify, defend, and keep
harmless each Indemnitee, from and against any and all Claims arising out of acts, or failures to act, prior to the expiration or earlier termination of the Term (whether during the Lease Term, or prior to the Closing Date), whenever they may be
suffered, imposed on or asserted against any Indemnitee, to the extent arising out of (i) the ownership, leasing, subleasing, assignment, financing, refinancing, renewal, return, operation, possession, use, non-use, maintenance, modification,
alteration, reconstruction, restoration, or replacement of the Property or the Lease, or from the granting by Lessor at Lessee’s request of easements, licenses or any similar rights with respect to all or any part of the Property, or from the
construction, design, purchase or condition of the Property (including any Claims (whether by Governmental Authority or other Person) arising, directly or indirectly, out of the actual or alleged presence, use, storage, generation, Release or threat
of Release of any Hazardous Materials, and any Claims for patent, trademark or copyright infringement and latent or other defects, whether or not discoverable), including any liability under Applicable Laws (including, without limitation, any Claims
arising directly or indirectly out of any actual or alleged violation, now or hereafter existing, of any Environmental Laws), (ii) this Lease or any modification, amendment or supplement thereto, to the extent arising out of the operation,

  

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 maintenance, use or possession of the Property whether before or after the Closing Date, (iii) the non-compliance of
the Property with Applicable Laws (including because of the existence of the Permitted Liens), (iv) without limiting any other indemnities herein, any other matters relating to the Property or any operations thereon, and not already
covered by this Section 19.1(a), to the extent such matters arise out of the operation, maintenance, use or possession of the Property by Lessee, whether before or after the Closing Date, including matters relating to Environmental Laws or
Hazardous Materials, the breach by Lessee of its representations, warranties, covenants and obligations in this Lease whether or not such Claim arises or accrues prior to the date of this Lease, (v) the business and activities of Lessee, except
to the extent arising out of relationships not related to this transaction, (vi) the cost of any Remedial Action, assessment, containment, monitoring, treatment and/or removal of any and all Hazardous Materials from all or any portion of the
Property or any surrounding areas over which Lessee has responsibility, the cost of any actions taken in response to a release or threat of release of any Hazardous Materials on, in, under, relating to or affecting any portion of the Property or any
surrounding areas over which Lessee has responsibility to prevent or minimize such release or threat of release so that it does not migrate or otherwise cause or threaten danger to present or future public health, safety, welfare or the environment,
and costs incurred to comply with Environmental Laws in connection with all or any portion of the Property or any surrounding areas over which Lessee has responsibility, (vii) a Lease Default or a Lease Event of Default, (viii) any
litigation, suit, cause of action, writ, decree, injunction, order, judgment, proceeding or Claim now or hereafter asserted against the Property, Lessor (by virtue of its ownership of, leasing or financing of the Property), or Lessee with respect to
the Property or this Lease, and (ix) any defects in title caused, created or permitted by Lessee, or anyone acting by, through or under Lessee. Lessee acknowledges that the foregoing includes any costs incurred by Lessor, or the Lender in
performing any inspections of any Property if such inspection reveals a violation by Lessee of Section 8.5. Lessee shall not be required to indemnify any Indemnitee under this Section 19.1 for any Claim to the extent resulting from
(A) the willful misconduct or negligence or breach of representation or warranty of such Indemnitee or a member of such Indemnitee’s Group, (B) any amounts payable to Lender unless such amounts are payable by Lessee under this Lease,
(C) any acts or events to the extent first occurring after the expiration of the Lease Term and return of the Property to Lessor in the condition required in this Lease (but any indemnification first arising after the expiration of the Term
(and not otherwise covered hereby) shall include only those matters relating to Lessee’s failure to return the Property in the condition required), (D) any taxes, except to the extent covered in Sections 8.6 of this Lease, (E) any
voluntary transfers of the Property made by Lessor (other than arising out of a Lease Event of Default by Lessee), and (F) any voluntary transfer made by the Lender. Lessee shall be entitled to credit against any payments due under this
Section 19.1 any insurance recoveries or other reimbursements received by the Indemnitee to be indemnified in respect of the related Claim under or from insurance paid for, directly or indirectly, by Lessee or assigned to Lessor by Lessee, to
the extent such insurance recoveries exceed such Indemnitee’s costs and expenses incurred in recouping such insurance recovery. 
 (b)
In case any Claim shall be made or brought against any Indemnitee, such Indemnitees shall give prompt notice thereof to Lessee, provided that failure to so notify Lessee shall not reduce Lessee’s obligations to indemnify any Indemnitee
hereunder unless and only to the extent such failure results in additional liability on Lessee’s part. Lessee shall be entitled, at its expense, acting through counsel selected by Lessee (and reasonably satisfactory to such 
  

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 Indemnitee), to participate in, and, to the extent that Lessee desires, to assume and control, the negotiation,
litigation and/or settlement of any such Claim (subject to the provisions of the last sentence of subparagraph (c) of this Section 19.1). Such Indemnitee may (but shall not be obligated to) participate in a reasonable manner at its own
expense (unless Lessee is not properly performing its obligations hereunder) and with its own counsel in any proceeding conducted by Lessee in accordance with the foregoing. If Lessee shall defend the Indemnitee in any such suit or proceeding, then,
unless such Indemnitee shall determine (in its reasonable discretion) that a conflict of interest exists between Lessee and such Indemnitee, Lessee shall not be obligated to reimburse the Indemnitee for the cost of such Indemnitee’s
attorneys’ fees or expenses incurred in connection with such suit or proceeding. 
 (c) Each Indemnitee shall at Lessee’s expense
supply Lessee with such information and documents reasonably requested by Lessee in connection with any Claim for which Lessee may be required to indemnify any Indemnitee under this Section 19.1. Unless a Lease Event of Default is continuing,
no Indemnitee shall enter into any settlement or other compromise with respect to any Claim for which indemnification is required under this Section 19.1 without the prior written consent of Lessee. Lessee shall have the authority to settle or
compromise any Claim against an Indemnitee hereunder, provided that no admission of wrongdoing shall be required of such Indemnitee and such Indemnitee shall be released of all liability in connection with any such Claim. 
 (d) Upon payment in full of any Claim by Lessee pursuant to this Section 19.1 to or on behalf of an Indemnitee, Lessee, without any further action,
shall be subrogated to any and all claims that such Indemnitee may have relating thereto, and such Indemnitee shall execute such instruments of assignment and conveyance, evidence of claims and payment and such other documents, instruments and
agreements as may be necessary to preserve any such claims and otherwise reasonably cooperate with Lessee to enable Lessee to pursue such claims. 
 (e) Prior to paying any amount otherwise payable to an Indemnitee pursuant to this Section 19.1, Lessee shall be entitled to receive from such Indemnitee (i) a written statement describing the amount so payable, (ii) a
general release from Indemnitee upon such payment with respect to the claim made and (iii) such additional information as Lessee may reasonably request and which is reasonably available to such Indemnitee to properly substantiate the requested
payment. 
 (f) Subject to the penultimate sentence of Section 19.1(a) above, Lessee’s liability hereunder shall in no way be
limited or impaired by any act, including, without limitation, (i) any amendment or modification to the Lease, (ii) any waiver of any Lease Event of Default, default, or extension of time or any failure to enforce any remedies or rights of
either Lessor or Lender, (iii) any sale or transfer of the Property, or (iv) any assignment of the Lease. 
 Section 19.2
Lessor’s Indemnification Obligation. Lessor agrees to indemnify, defend, and hold harmless the Lessee, from and against any and all loss incurred by Lessee resulting from Claims arising out of active actions prior to the expiration or
earlier termination of the Term, to the extent arising solely out of Lessor’s (or its employees’ agents or contractors’) willful misconduct or gross negligence. 
  

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 ARTICLE 20 
 LESSEE REPRESENTATIONS AND COVENANTS 
 Section 20.1. Representations and Warranties. Lessee
represents and warrants to Lessor that the following are true and correct as of the Closing Date: 
 (a) Due Organization. Lessee is a
corporation duly organized, validly existing and in good standing in the State of California and qualified to do business in, and in good standing, in the State of California. Lessee has the corporate power and authority to conduct its business as
now conducted, to lease the Property and to enter into and perform its obligations under the Lease. Lessee is duly qualified to do business and is in good standing as a foreign corporation in any jurisdiction where the failure to so qualify would
have a material adverse effect on its ability to perform its obligations under the Lease. 
 (b) Due Authorization; No Conflict. The
Lease has been duly authorized by all necessary corporate action on the part of Lessee and has been duly executed and delivered by Lessee, and the execution, delivery and performance thereof by Lessee will not, (i) require any approval of the
stockholders of Lessee or any approval or consent of any trustee or holder of any indebtedness or obligation of Lessee, other than such consents and approvals as have been obtained, (ii) contravene any Applicable Law binding on Lessee or
(iii) contravene or result in any breach of or constitute any default under Lessee’s charter or by-laws or other organizational documents, or any indenture, judgment, order, mortgage, loan agreement, contract, partnership or joint venture
agreement, lease or other agreement or instrument to which Lessee is a party or by which Lessee is bound, or result in the creation of any Lien upon any of the property of Lessee. 
 (c) Governmental Actions. All Governmental Action required in connection with the execution, delivery and performance by Lessee of the Lease, has
been or will have been obtained, given or made. 
 (d) Enforceability. The Lease constitutes the legal, valid and binding obligation
of Lessee, enforceable against Lessee in accordance with the terms thereof, except as enforceability may be limited by bankruptcy, moratorium, fraudulent conveyance, insolvency, equitable principles or other similar laws affecting the enforcement of
creditors’ rights in general. 
 (e) Bankruptcy. No bankruptcy, reorganization, arrangement or insolvency proceedings are
pending, threatened or contemplated by Lessee, and Lessee has not made a general assignment for the benefit of creditors. 
 (f) Tax
Filings. All tax returns and reports of Lessee required by law to be filed with respect to the Property have been duly filed, and all taxes, interests and penalties assessed by any Governmental Authority upon the Property or Lessee (with respect
to the Property), which are due and payable, have been paid, except to the extent being contested in good faith by the Lessee. 
  

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 (g) Condition of Property: Condemnation. The Property is, to the Lessee’s knowledge, free and
clear of any damage that would materially and adversely affect its value. The Lessee has not received notice of any proceeding pending for the total or partial condemnation of or affecting the Property, such that such proceeding would have a
material adverse effect on the Property. To the Lessee’s knowledge, as of the Closing Date, all of the material Improvements lie wholly within the boundaries and building restriction lines of such Property, except for encroachments that are
insured against by the Title Policy or that do not materially and adversely affect the value or marketability of the Property, and no improvements on adjoining properties materially encroach upon the Property so as to materially and adversely affect
the value or marketability of the Property. 
 (h) Environmental Conditions. To the Lessee’s knowledge, there are no
circumstances or conditions with respect to the Property that render the Property in violation (other than to a de minimis effect) of any applicable Environmental Laws. 
 (i) Legal Proceedings. There are no pending or to the Lessee’s knowledge, threatened actions, suits or proceedings by or before any court or
governmental authority against or affecting the Lessee with respect to the Property that, if determined adversely to such Lessee or Property, would materially and adversely affect the value of the Property. 
 (j) Licenses and Permits. To the Lessee’s knowledge, (i) it possesses all material licenses, permits and authorizations required by
applicable law for the operation of the Property and (ii) all such licenses, permits and authorizations are valid and in full force and effect. 
 The
phrase “the Lessee’s knowledge” and other words and phrases of like import shall mean the actual state of knowledge of Jane Baughman, Vice President – Financial Planning and Treasurer. Lessee represents that the foregoing
individuals are the people who are likely to know of any matters covered by these representations and warranties. 
 ARTICLE 21 
 LESSOR REPRESENTATIONS AND COVENANTS 
 Section 21.1. Representations and Warranties. Lessor represents and warrants to Lessee that the following are true and correct as of the Closing Date: 
 (a) Due Organization. Lessor is a limited liability company duly organized, validly existing and in good standing in the State of Delaware and qualified to do business in, and in good standing, in the State of
California. Lessor has the corporate power and authority to conduct its business as now conducted and to enter into and perform its obligations under the Lease. Lessor is duly qualified to do business and is in good standing as a foreign limited
liability company in any jurisdiction where the failure to so qualify would have a material adverse effect on its ability to perform its obligations under the Lease. 
 (b) Due Authorization; No Conflict. The Lease has been duly authorized by all necessary corporate action on the part of Lessor and has been duly executed and delivered by Lessor, and the execution, delivery and
performance thereof by Lessor will not, (i) require any approval of the members of Lessor or any approval or consent of any trustee or holder of any 
  

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 indebtedness or obligation of Lessor, other than such consents and approvals as have been obtained, (ii) contravene
any Applicable Law binding on Lessor or (iii) contravene or result in any breach of or constitute any default under Lessor’s charter or by-laws or other organizational documents, or any indenture, judgment, order, mortgage, loan agreement,
contract, partnership or joint venture agreement, lease or other agreement or instrument to which Lessor is a party or by which Lessor is bound. 
 (c) Governmental Actions. All Governmental Action required in connection with the execution, delivery and performance by Lessor of the Lease, has been or will have been obtained, given or made. 
 (d) Enforceability. The Lease constitutes the legal, valid and binding obligation of Lessor, enforceable against Lessor in accordance with the
terms thereof, except as enforceability may be limited by bankruptcy, moratorium, fraudulent conveyance, insolvency, equitable principles or other similar laws affecting the enforcement of creditors’ rights in general. 
 (e) Bankruptcy. No bankruptcy, reorganization, arrangement or insolvency proceedings are pending, threatened or contemplated by Lessor, and Lessor
has not made a general assignment for the benefit of creditors. 
 ARTICLE 22 
 PURCHASE PROCEDURE 
 Section 22.1. Purchase Procedure. In the event of the
purchase of Lessor’s interest in the Property by Lessee pursuant to any provision of this Lease, the terms and conditions of this Section 22.1 shall apply. 
 (a) On the closing date fixed for the purchase of Lessor’s interest in the Property, which shall be a Rent Payment Date: 
 (i) Lessee shall pay to Lessor, in lawful money of the United States, at Lessor’s address hereinabove stated or at any other place in
the United States which Lessor may designate, in immediately available funds, the applicable purchase price or Stipulated Loss Value, and all other costs due as of such Closing, including, without limitation, any applicable prepayment premium; and

 (ii) Lessor shall execute and deliver to Lessee a deed with covenants against grantor’s acts, assignment and/or such
other instrument or instruments as may be appropriate, which shall transfer Lessor’s interest in the Property, subject to, (A) Permitted Liens (except for any mortgage indebtedness of Lessor if the sale is pursuant to Article 12),
(B) all liens, encumbrances, charges, exceptions and restrictions attaching to the Property after the Closing Date which shall not have been created or caused by Lessor (unless consented to by Lessee), and (C) all applicable laws, rules,
regulations, ordinances and governmental restrictions then in effect. 
 (b) Lessee shall pay all costs, charges and expenses of incident to
such transfer, including, without limitation, all recording fees, transfer taxes, title insurance premiums, and federal, state and local taxes, except for any net income taxes, if the sale is pursuant to Section 12.1, otherwise, such costs
shall be as set forth in the terms. 
  

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 (c) In the event Lessor and Lessee enter into a purchase agreement for the sale of the Property, Lessor
agrees to cause the entity that owns the Property to be sold to Lessee, in lieu of a sale of the Property to Lessee, in the event (i) Lessee requests Lessor so to do; and (ii) the sale of the interests in Lessor (rather than the Property)
to Lessee shall not impose any obligations on Lessor that would not be imposed had Lessor sold the Property, will not decrease any rights Lessor would have had Lessor sold the Property, and will not create any increased possibility of additional
liability to Lessor (including without limitation, for ongoing corporate acts, taxes, etc.), all as shall be reasonably evidenced to Lessor by certificates, affidavits, opinions or otherwise. Lessor agrees to cooperate with Lessee in effectuating
such a transfer of equity interests, subject to the terms hereof. 
 ARTICLE 23 
 TRANSFER OF LESSOR’S INTEREST 
 Section 23.1. Permitted Transfer.
Subject to Article 4, Lessor may transfer all, or any part of, its right, title and interest in and to any Property and its rights under this Lease and the other documents relating thereto with respect to such Property on the following terms and
conditions, each of which shall be satisfied prior to the effective date of the transfer (other than a transfer by a deed-in-lieu of foreclosure or similar transfer made in connection with an exercise of remedies under the Mortgage): 
 (a) such transfer shall be in compliance with the Mortgage and related documents, (if still in place), and with Applicable Laws and shall not create a
relationship which would violate Applicable Laws; 
 (b) the transferor shall have given or at closing give to Lessee, notice of such
transfer, if of the entire Property, which notice shall contain such information and evidence as shall be reasonably necessary to establish compliance with this Article 23 and the name and address of the transferee for notices. 
 Section 23.2. Effects of Transfer. From and after any transfer effected in accordance with this Article 23, the transferor shall be released,
to the extent of the interest transferred and the obligations assumed, in writing, by the transferee, from its liability hereunder and under the other documents to which it is a party relating to, the interests being transferred. Such release shall
be in respect of obligations (that are assumed, in writing, by the transferee) arising on or after the date of such transfer. Upon any transfer by Lessor of the Property as above provided, any such transferee shall be deemed the “Lessor”
for all purposes of such documents and each reference herein to Lessor shall thereafter be deemed a reference to such transferee for all purposes, except as provided in the preceding sentence. Lessee agrees to execute any and all documents
reasonably appropriate to effectuate the contemplated transfer by Lessor, including, without limitation, an amendment to this Lease providing that the new Lessor shall be Lessor and the existing Lessor shall be released from its liabilities.

  

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 ARTICLE 24 
 PERMITTED FINANCING 
 Section 24.1. Financing During Term. 
 Lessee hereby expressly consents to the Lien imposed in favor of any first mortgage indebtedness. With respect to any financing or refinancing during the
Base Term and during any Renewal Term, Lessor shall be free to encumber the Property, provided that under no circumstances shall any such financing adversely affect the rights and privileges of Lessee under this Lease in any material respect,
or increase in any material respect the nature, scope or amount of any obligations or liabilities (including any contingent liabilities) of Lessee in excess of those existing prior to any such further encumbrances by Lessor. Lessee and its
Affiliates will have no obligation to amend this Lease to facilitate such financing; but shall execute and deliver a subordination and attornment agreement to any lender to Lessor permitted by the above terms of this Section 24.1 if such lender
shall in turn deliver a nondisturbance agreement to Lessee, in each case with terms reasonably acceptable to the parties. Lessee agrees to cooperate with any refinancing by Lessor permitted hereunder. Such cooperation shall include, without
limitation, (i) naming such new lender(s) as additional insureds; and (ii) making payments of Base Rent and/or Supplemental Rent to or at the direction of such lender(s). 
 Section 24.2. Lessee’s Consent to Assignment for Indebtedness. Lessee acknowledges that in order to secure Lessor’s obligations to
a Lender, Lessor may agree, among other things, to the assignment (to the extent provided therein) to the Lender of Lessor’s right, title and interest to this Lease. While the Mortgage or any replacements thereof are in effect, Lessee hereby:

 (a) consents to such assignment in this Lease; 
 (b) covenants to make in full, in funds that are immediately available, to Lender or its designee in accordance with the terms of this Lease: 
 (i) each payment of Base Rent and Supplemental Rent payable to Lessor (except under Article 19 hereof); and 
 (ii) all purchase prices, termination amounts, and other sums payable to Lessor under this Lease; 
 (c) agrees: 
 (i) that it
shall not, except as provided under Applicable Law, seek to recover from the Lender any moneys paid to the Lender by virtue of the foregoing provisions; provided, however, that the foregoing provisions shall not limit Lessee’s right to
recover (A) any duplicate payment made to the Lender whether due to computational or administrative error or otherwise, if the Lender has received such payment, (B) all or any portion of a payment in excess of the amount then due under
this Lease or otherwise owed by Lessor to Lessee under this Lease, and (C) any amounts that have been paid to or are actually held by the Lender that is required to be refunded to, repaid, or otherwise released to or for the benefit of Lessee
under this Lease; 
  

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 (ii) that Lessee shall not pay any Rent more than thirty (30) days prior to such
payment’s scheduled due date except as provided in this Lease; 
 (iii) that Lessee shall not enter into any agreement
subordinating or (except as expressly permitted by the terms of this Lease as in effect on the date hereof) surrendering, canceling, or terminating this Lease without the prior written consent of the Lender, and any such attempted subordination or
termination without such consent shall be void; 
 (iv) that Lessee shall not enter into any amendment or modification of this
Lease without the prior written consent of the Lender, and any such attempted amendment or modification without such consent shall be void; 
 (v) that if this Lease shall be amended, it shall continue to constitute collateral under the Mortgage without the necessity of any further act by Lessor, Lessee or the Lender; and; 
 (vi) that except as expressly provided in this Lease, Lessee shall not take any action to terminate, rescind or avoid this Lease,
notwithstanding, to the fullest extent permitted by law, the bankruptcy, insolvency, reorganization, composition, readjustment, liquidation, dissolution or other proceeding affecting Lessor or any assignee or Lessor and notwithstanding any action
with respect to the Lease which may be taken by an assignee, Lender or receiver or Lessor or of any such assignee or by any court in any such proceedings. 
 Nothing herein shall be construed as Lessee’s agreement to be bound and perform the obligations of Lessor under any Mortgage or other debt documents. If Lessee receives conflicting direction from Lessor and the
Lender, or is in good faith uncertain as to whether it should comply with a direction from either Lessor or the Lender, Lessee shall be permitted to seek written confirmation from Lessor and the Lender, or if the matter in dispute regards the
payment of money by Lessee, pay the same into a court and provide Lessor and the Lender with reasonably prompt notice of such payment. 
 ARTICLE 25 
 MISCELLANEOUS 
 Section 25.1. Binding Effect; Successors and Assigns; Survival. The terms and provisions of this Lease, and the respective rights and obligations hereunder of Lessor and Lessee, shall be binding upon their respective successors,
legal representatives and assigns (including, in the case of Lessor, any Person to whom Lessor may transfer the Property) and inure to the benefit of their respective permitted successors and assigns, and the rights hereunder of the Lender shall
inure (subject to such conditions as are contained herein) to the benefit of its permitted successors and assigns. 
 Section 25.2.
Quiet Enjoyment. Lessee shall have the right to peaceably and quietly hold, possess and use any and all of the Property hereunder during the Lease Term, so long as no Lease Event of Default has occurred and is continuing. 
  

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 Section 25.3. Notices. Unless otherwise specifically provided herein, all notices, consents,
directions, approvals, instructions, requests and other communications required or permitted by the terms hereof to be given to any Person shall be in writing sent to either that Person’s Address, and a copy thereof shall be sent to each Person
to receive a copy pursuant to the definition of “Address”, by (i) a prepaid nationally recognized overnight courier service, and any such notice shall be deemed received one (1) Business Day after delivery to a nationally
recognized courier service specifying overnight delivery, or (ii) U.S. certified or registered mail, return receipt requested, postage prepaid, and such notice shall be deemed received when actually received, as evidenced by the return receipt,
or when delivery is first refused. From time to time any party may designate a new Address for purposes of notice hereunder by giving fifteen (15) days’ written notice thereof to each of the other parties hereto. All notices given
hereunder shall be irrevocable unless expressly specified otherwise. Lessor shall endeavor to label any envelope which contains a notice of default with the legend: “Default Notice,” but its failure to do so shall not invalidate or affect
in any way such notice. 
 Section 25.4. Severability. Any provision of this Lease that shall be prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction, and each party hereto shall remain liable to perform its obligations hereunder except to the extent of such unenforceability. To the extent permitted by applicable law,
Lessee hereby waives any provision of law that renders any provision hereof prohibited or unenforceable in any respect. 
 Section 25.5.
Amendments, Complete Agreements. Neither this Lease nor any of the terms hereof may be terminated, amended, supplemented, waived or modified orally, but may be terminated, amended, supplemented, waived or modified only by an instrument in
writing signed by the party against which the enforcement of the termination, amendment, supplement, waiver or modification shall be sought and, as required by the Mortgage or related documents, by the Lender. This Lease is intended by the parties
as a final expression of their lease agreement and as a complete and exclusive statement of the terms thereof, all negotiations, considerations and representations between the parties having been incorporated herein. No representations,
undertakings, or agreements have been made or relied upon in the making of this Lease other than those specifically set forth herein. 
 Section 25.6. Headings. The Table of Contents and headings of the various Articles and Sections of this Lease are for convenience of reference only and shall not modify, define or limit any of the terms or provisions hereof.

 Section 25.7. Counterparts. This Lease may be executed by the parties hereto in separate counterparts, each of which when so
executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 
 Section 25.8. Governing Law. This Lease shall be governed by, and construed in accordance with, the laws of the State in which the Property is situated. 
  

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 LESSOR AND LESSEE HEREBY SUBMIT TO NON-EXCLUSIVE PERSONAL JURISDICTION IN THE COUNTY OF ALAMEDA, STATE OF
CALIFORNIA AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN THE COUNTY OF ALAMEDA, STATE OF CALIFORNIA (AND ANY APPELLATE COURTS TAKING APPEALS THEREFROM) FOR THE ENFORCEMENT OF SUCH PERSON’S OBLIGATIONS HEREUNDER AND WAIVES
ANY AND ALL PERSONAL RIGHTS UNDER THE LAW OF ANY OTHER STATE TO OBJECT TO JURISDICTION WITHIN SUCH STATE FOR THE PURPOSES OF SUCH ACTION, SUIT, PROCEEDING OR LITIGATION TO ENFORCE SUCH OBLIGATIONS OF LESSEE OR LESSOR. LESSOR AND LESSEE HEREBY WAIVE
AND AGREE NOT TO ASSERT, AS A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS LEASE (A) THAT IT IS NOT SUBJECT TO SUCH JURISDICTION OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE
IN THOSE COURTS OR THAT IT IS EXEMPT OR IMMUNE FROM EXECUTION, (B) THAT THE ACTION, SUIT OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR (C) THAT THE VENUE OF THE ACTION, SUIT OR PROCEEDING IS IMPROPER. LESSEE AND LESSOR EACH HEREBY
EXPRESSLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING RELATED TO THE ENFORCEMENT OF THIS LEASE. 
 Section 25.9. Memorandum. Lessee and Lessor agree that a memorandum of this Lease (and any amendment hereof) shall be executed and recorded, at Lessee’s expense, in the land records of the jurisdiction in which the Property
is situate. 
 Section 25.10. Estoppel Certificates. Each party hereto agrees that at any time and from time to time during the
Lease Term (but on no more than two occasions during each Lease Year), it will promptly, but in no event later than ten (10) days after request by the other party hereto, execute, acknowledge and deliver to such other party a certificate
in the form of Exhibit B attached hereto. In addition, each party agrees to include in such certificate such other items as may be reasonably requested under the circumstances giving rise to the delivery of such certificate. Such certificate may be
relied upon by any bona fide, permitted purchaser of, or mortgagee together with its successors and assigns with respect to, Lessor’s or Lessee’s interest in the Property (direct or indirect), or any prospective sublessee of Lessee in
respect of all or a portion of the Property. 
 Section 25.11. Easements. So long as no Lease Event of Default has occurred and
is then continuing, and provided that no such action could in either the Lender’s or Lessor’s reasonable judgment be expected to have a material adverse effect upon Lessee’s ability to perform its obligations under the Lease, or on
the Fair Market Rental Value or Fair Market Sales Value of the Property, Lessor will join with Lessee from time to time at the request of Lessee (and at Lessee’s sole cost and expense) to: 
 (a) subject to the terms of Article 12, sell, assign, convey or otherwise transfer an interest in any or all of the Property to any Person legally
empowered to take such interest under the power of eminent domain, and dedicate or transfer unimproved portions of any or all of the Property for road, highway or other public purposes; 
  

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 (b) upon approval by Lessor, which approval may not be unreasonably withheld: (i) grant new (or
release existing) easements, servitudes, licenses, rights of way and other rights and privileges in the nature of easements, with respect to the Property, and (ii) execute amendments to any covenants and restrictions affecting the Property; and

 (c) execute and deliver any instrument, in form and substance reasonably acceptable to Lessor, necessary or appropriate to make or confirm
the grants, releases or other actions described above in Section 25.11(a) and Section 25.11(b). 
 Lessor agrees that it shall not
grant any easements, licenses or other possessory interests in the Property to any party without Lessee’s prior written consent, which shall not be unreasonably withheld or delayed, provided, however, Lessee’s consent shall not be required
(i) during the continuation of a Lease Event of Default, and (ii) to the extent such easement, license or other possessory interest is required by law. 
 Section 25.12. No Joint Venture. Any intention to create a joint venture or partnership relation between Lessor and Lessee is hereby expressly disclaimed. 
 Section 25.13. No Accord and Satisfaction. The acceptance by Lessor of any sums from Lessee (whether as Rent or otherwise) in amounts which
are less than the amounts due and payable by Lessee hereunder is not intended, nor shall be construed, to constitute an accord and satisfaction, or compromise, of any dispute between such parties regarding sums due and payable by Lessee hereunder,
unless Lessor specifically deems it as such in writing. 
 Section 25.14. No Merger. In no event shall the leasehold interests,
estates or rights of Lessee hereunder, or of the Lender, merge with any interests, estates or rights of Lessor in or to any and all of the Property, it being understood that such leasehold interests, estates and rights of Lessee hereunder, and of
the Lender, shall be deemed to be separate and distinct from Lessor’s interests, estates and rights in or to the Property, notwithstanding that any such interests, estates or rights shall at any time or times be held by or vested in the same
person, corporation or other entity. 
 Section 25.15. Lessor Bankruptcy. During the Lease Term the parties hereto agree that if
Lessee elects to remain in possession of any and all of the Property after the rejection of the Lease by Lessor under Section 365(h) of the Bankruptcy Code, all of the terms and provisions of this Lease shall be effective during such period of
possession by Lessee, including the Renewal Terms and Lessee’s purchase rights hereunder, even if Lessor becomes subject to a case or proceeding under the Bankruptcy Code prior to the commencement of any such Renewal Term or the exercise by
Lessee of such purchase rights. 
 Section 25.16. Naming and Signage of the Property. So long as Lessee (or a sublessee) is the
occupant of, at least, a majority of the Improvements located on the Property Lessee shall have the sole and exclusive right, at any time and from time to time, to select the name or names of the Property and the Improvements, and the sole and
exclusive right to determine not to use any name in connection with the Property, as well as all rights in respect of signage for or in connection with the Property. Lessor shall not have or acquire any right or interest with respect to any such
name or names used at any time by Lessee, or any trade name, trademark service 
  

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 mark or other intellectual property of any type of Lessee. Lessor shall cooperate with Lessee to effectuate Lessee’s
sign rights hereunder, at no cost to Lessor. Lessee may install any sign or signs on the Property as it elects, at its sole cost and in compliance with Applicable Laws. Any signs installed by Lessee (other than those existing as of the Commencement
of the Term) shall be removed by Lessee at the expiration or earlier termination of the Term, and Lessee shall repair any damage caused by such removal. 
 Section 25.17. Expenses. Whenever this Lease provides for the reimbursement by Lessee of costs and expenses of Lessor or any other party, then such reimbursement obligation shall be limited to actual,
out-of pocket third-party costs and expenses including, but not limited to, reasonable attorneys’ fees. In addition to any other costs payable hereunder by Lessee, Lessee acknowledges and agrees that whenever (i) it seeks Lessor’s
consent to an Alteration, (ii) it makes a rejectable offer, (iii) Fair Market Sales Value, Fair Market Rental Value or Base Rent during a Renewal Term need to be calculated, (iv) Lessee assigns its lease (if such assignment requires
Lessor’s consent, (v) Lessor is asked to sign a landlord waiver with respect to Lessee’s personal property, or (vi) a casualty or condemnation (or an Event of Loss) occurs, Lessee shall pay all reasonable costs incurred by
Lessor, arising out of the foregoing. 
 Section 25.18. Investments. Any moneys held by Lessor (or by the Lender or Proceeds
Trustee) pursuant to this Lease, including Section 12.4, shall, until paid to Lessee, be invested by Lessor or the Proceeds Trustee, or by the Lender (if there is one), in Permitted Investments. Any gain (including interest received) realized
as a result of any such investment shall be retained with, and distributed and re-invested in the same manner, as the original principal amount. Lessor (and the Lender) shall have no liability for any losses arising from any such investments or
reinvestments. At such time as there no longer exists a requirement under this Lease for the Proceeds Trustee to hold such amounts, such amounts, together with any income thereon, shall be disbursed to Lessee. 
 Section 25.19. Further Assurances. Lessor and Lessee, at the cost and expense of the requesting party (except as otherwise set forth
in this Lease to the contrary), will cause to be promptly and duly taken, executed, acknowledged and delivered all such further acts, documents and assurances as any of the others reasonably may request from time to time in order to carry out more
effectively the intent and purposes of this Lease. Nothing herein shall obligate Lessee to provide to Lessor or the Lender any proprietary or confidential information relating to the manner, method and procedures of Lessee’s business
operations, or relating to Lessee’s business plan. Lessee also agrees to cooperate with Lessor in determining how to allocate the purchase price paid for the Property for purposes of depreciation, including review of the applicable portions of
Lessee’s books applicable to Lessee’s depreciation of the Property, as prior owner and as Lessee. 
 Section 25.20.
[Intentionally omitted] 
 Section 25.21. Independent Covenants. The covenants of Lessor and Lessee herein are independent and
several covenants and not dependent on the performance of any other covenant in this Lease. 
  

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 Section 25.22. Lessor Exculpation. Anything to the contrary in this Lease notwithstanding,
the covenants contained in this Lease to be performed by Lessor shall not be binding on any member of Lessor in its or his or her individual capacity, but instead said covenants are made for the purpose of binding only all of Lessor’s right,
title and interest in and to the Property, and none of Lessor or any of its Affiliate or any of its successors and assigns shall have any liability under this Lease in excess of, and Lessee shall have no recourse under this Lease against Lessor or
any Affiliate of it except for Lessor’s interest (to the extent not pledged or assigned), the Property, Net Proceeds and Rent. 
 Section 25.23. Remedies Cumulative. To the extent permitted by, and subject to the mandatory requirements of, Applicable Laws, each and every right, power and remedy herein specifically given to the Lessor or otherwise in this
Lease shall be cumulative and shall be in addition to every other right, power and remedy herein specifically given or now or hereafter existing at law, in equity or by statute, and each and every right, power and remedy whether specifically herein
given or otherwise existing may be exercised from time to time and as often and in such order as may be deemed expedient by Lessor. No delay or omission by Lessor in the exercise of any right, power or remedy or in the pursuit of any remedy shall
impair any such right, power or remedy or be construed to be a waiver or any default on the part of Lessee or to be an acquiescence therein. Lessor’s consent to any request made by Lessee shall not be deemed to constitute or preclude the
necessity for obtaining Lessor’s consent, in the future, to all similar requests. No waiver by Lessor of any default shall in any way be, or be construed to be, a waiver of any future or subsequent default. 
 Section 25.24. Holding Over. Subject to Section 12.1 and the last sentence of Section 10.1(b) Lessee covenants that if for any
reason Lessee or any subtenant of Lessee shall fail to vacate and surrender possession of a Property or any part thereof, in the condition required herein, on or before the expiration or earlier termination of this Lease and the Term, then
Lessee’s continued possession of the Property shall be as a tenant at sufferance, during which time, without prejudice and in addition to any other rights and remedies Lessor may have hereunder or at law, Lessee shall pay to Lessor an amount
equal to: (a) one hundred twenty-five percent (125%) of the total monthly amount of Rent payable hereunder immediately prior to such termination (the “Existing Rent”) for the first ninety (90) days during which Lessee
holds over, and (b) one hundred fifty percent (150%) of the Existing Rent thereafter. The provisions of this Section shall not in any way be deemed to (i) permit Lessee to remain in possession of the Property after the expiration date
or sooner termination of this Lease, or (ii) imply any right of Lessee to use or occupy the Property upon expiration or termination of this Lease and the Term and no acceptance by Lessor of payments from Lessee after the expiration date or
sooner termination of the Term shall be deemed to be other than on account of the amount to be paid by Lessee in accordance with the provisions of this Section. Lessee’s obligations under this Section shall survive the expiration or earlier
termination of this Lease. 
 Section 25.25. Survival. The following provisions shall survive the termination of this Lease:
(i) Sections 3.5, 6.1, 8.4, 8.5, 8.6 (only with respect to Impositions arising during the Term) 8.7, 8.8, 17.2, 22.1, Articles 7, 10, 19 and 25 to the extent relating to unfulfilled obligations of Lessee arising or occurring prior to the date
of termination of this Lease, and (ii) any provision of this Lease pursuant to which the Lessor or Lessee had an existing obligation which was unsatisfied at the time of termination of this Lease and remains unsatisfied, including, 

 

 41 

 without limitation, to the extent there was any unsatisfied obligation under, Sections 12.1, and Article 3, provided,
however, that nothing in this Section 25.25 shall be deemed to extend any applicable statute of limitations. 
 Section 25.26.
[Intentionally Omitted] 
 Section 25.27. Lease Subordinate. This Lease, the leasehold estate of Lessee created hereby and all
rights of Lessee hereunder are and shall be subject and subordinate to the Mortgage and to all renewals, modifications, consolidations, replacements and extensions of the Mortgage, subject to the parties executing a subordination, non-disturbance
and attornment agreement in the form attached hereto as Exhibit C. Such agreement shall provide that, so long as no Lease Event of Default has occurred and is continuing, Lessee’s occupancy and use of the Property pursuant to the terms of this
Lease shall not be disturbed and Lessee’s rights under this Lease are and shall always be subordinate to the Mortgage and to all renewals, modification, consolidation, replacements and extension of the Mortgage. 
 Section 25.28. Lessor Representation. The Lease has been duly authorized by all necessary action on the part of Lessor and has been duly
executed and delivered by Lessor, and the execution, delivery and performance thereof by Lessor will not, (i) require any consent or approval of any Person, other than such consents and approvals as have been obtained, (ii) contravene any
Applicable Law binding on Lessor or the organizational documents of Lessor or (iii) contravene or result in any breach of or constitute any default under Lessor’s organizational documents, or any indenture, mortgage, loan agreement,
contract, partnership or joint venture agreement, lease or other agreement or instrument to which Lessor is a party or by which Lessor is bound. 
 Section 25.29. Leasehold Financing. During the entire Lease Term as such Lease Term may be extended Lessee shall not be permitted to obtain a loan using this Lease or Lessee’s interest in the Property as collateral
therefore. 
  

 42 

 IN WITNESS WHEREOF, Lessor and Lessee have duly authorized, executed and delivered this Lease as of the
date first hereinabove set forth. 
  

					
	LESSOR:
	
	INLAND WESTERN STOCKTON AIRPORT WAY, L.L.C, a Delaware limited liability company
		
	    By:	 	Inland Western Retail Real Estate Trust, Inc., a Maryland corporation, its sole member
			
		 	By:	 	 /s/ G. Joseph Cosenza

		 	Name:	 	G. Joseph Cosenza
		 	Title:	 	Authorized Representative

  

			
	LESSEE:
	
	COST PLUS, INC., a California corporation
		
	By:	 	 /s/ Tom Willardson

	Name:	 	Tom Willardson
	Title:	 	Executive Vice President And Chief Financial Officer

  

 43 

 APPENDIX A 
 [Definitions] 
 Unless otherwise specified or the context otherwise requires: 
 (a) any term defined below by reference to another instrument or document shall continue to have the meaning ascribed thereto whether or not such other instrument or
document remains in effect; 
 (b) words which include a number of constituent parts, things or elements, shall be construed as referring separately to each
constituent part, thing or element thereof, as well as to all of such constituent parts, things or elements as a whole; 
 (c) references to any Person
include such Person’s successors and assigns and in the case of an individual, the word “successors” includes such Person’s heirs, devisees, legatees, executors, administrators and personal representatives; 
 (d) words importing the singular include the plural and vice versa; 
 (e)
words importing a gender include any gender; 
 (f) the words “consent”, “approve”, “agree” and “request”, and
derivations thereof or words of similar import, mean the prior written consent, approval, agreement or request of the Person in question; 
 (g) a reference
to a part, clause, party, section, article, exhibit or schedule is a reference to a part and clause of, and a party, section, article, exhibit and schedule to, the document referenced; 
 (h) a reference to any statute, regulation, proclamation, ordinance or law includes all statutes, regulations, proclamations, ordinances or laws varying, consolidating or replacing them, and a reference to a statute
includes all regulations, proclamations and ordinances issued or otherwise applicable under that statute; 
 (i) a reference to a document includes an
amendment or supplement to, or replacement or novation of, that document; 
 (j) a reference to a party to a document includes that party’s successors
and permitted delegees and/or assigns, 
 (k) the words “including” and “includes,” and words of similar import, shall be deemed to be
followed by the phrase “without limitation”; 
 (l) the words “hereof” and “hereunder,” and words of similar import, shall be
deemed to refer to the Lease as a whole and not to the specific section or provision where such word appears; 
  

 A-1 

 (m) unless the context shall otherwise require, a reference to the “Property” or “Improvements” shall
be deemed to be followed by the phrase “or a portion thereof”; 
 (n) the Schedules and Exhibits of the Lease are incorporated herein by reference;

 (o) the titles and headings of Articles, Sections, Schedules, Exhibits, subsections, paragraphs and clauses are inserted as a matter of convenience and
shall not affect the construction of the Lease; 
 (p) all obligations of the Lessor under the Mortgage and any related documents shall be satisfied by the
Lessor at Lessor’s sole cost and expense; 
 “Actual Knowledge” with respect to any Person, shall mean the present,
conscious, actual knowledge of, or receipt of notice by, (i) senior officers of such Person or the officers or employees of such Person charged with the oversight on its behalf of the Overall Transaction or (ii) with respect to a matter
covered by a representation and warranty, the property or asset manager having responsibility for the matters covered by such representation and the person to whom such manager reports. Actual Knowledge of Lessee as of the Closing Date shall be as
set forth in Section 20.1 of the Lease with respect to the matters represented in the Lease as of the Closing Date. 
 “Address” shall mean, subject to the rights of the party in question to change its Address in accordance with the terms of the Lease: 
  

					
	(i)	 	with respect to Lessee:	 	Cost Plus, Inc.
		 		 	3610 South Airport Way
		 		 	Stockton, California 95206
			
		 	with a copy to:	 	Cost Plus, Inc.
		 		 	200 Fourth Street
		 		 	Oakland, California 94607
		 		 	Attention: Real Estate Department
			
		 	with a copy to:	 	Cooper, White & Cooper LLP
		 		 	201 California Street, 17th Floor
		 		 	San Francisco, California 94111
		 		 	Attention: Beau Simon
			
	(ii)	 	with respect to Lessor:	 	Inland Western Stockton Airport Way, L.L.C.
		 		 	c/o The Inland Real Estate Group, Inc.
		 		 	2901 Butterfield Road
		 		 	Oak Brook, Illinois 60523
		 		 	Attention: Roberta Matlin
			
		 	with a copy to:	 	The Inland Real Estate Group, Inc.
		 		 	2901 Butterfield Road
		 		 	Oak Brook, Illinois 60523
		 		 	Attention: Robert H. Baum, General Counsel

  

 A-2 

 “Affected Property” shall have the meaning specified in Section 12.1 of the Lease.

 “Affiliate” of any Person shall mean any other Person directly or indirectly controlling, controlled by or under common
control with, such person and shall include, if such Person is an individual, members of the Family of such Person and trusts for the benefit of such individual or Family members. For purposes of this definition, the term, “control”
(including the correlative meanings of the terms “controlling” “controlled by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management policies of such Person, whether through the ownership of voting securities or by contract or otherwise. 
 “Alterations” shall mean alterations, improvements, installations, demolitions, modifications, changes and additions to the Property,
but shall not include Lessee’s Equipment and Personalty. 
 “Applicable Laws” shall mean (i) all existing and
future applicable laws (including common laws), rules, regulations, statutes, treaties, codes, ordinances, permits, certificates, orders and licenses of and interpretations by, any Governmental Authorities, and applicable judgments, decrees,
injunctions, writs, orders or like action of any court, arbitrator or other administrative, judicial or quasi-judicial tribunal or agency of competent jurisdiction (including those pertaining to the environment and those pertaining to the
construction, use or occupancy of the Property), and (ii) any reciprocal easement agreement, covenant, other agreement or deed restriction or easement of record affecting the Property as of the date hereof or subsequent hereto pursuant to the
terms of the Lease (but excluding for purposes of this definition the Mortgage and related debt documents). Applicable Laws include Environmental Laws. 
 “Appraisal Procedure” shall mean the following procedure for determining any one or more of the Fair Market Sales Value of the Property, the Fair Market Rental Value of the Property or any other
amount which may, pursuant to any provision of this Lease, be determined by the Appraisal Procedure: one Qualified Appraiser shall be chosen by the Lessor and one Qualified Appraiser shall be chosen by Lessee. If the Lessee or Lessor fails to choose
a Qualified Appraiser within twenty (20) Business Days after written notice from the other party of the selection of its Qualified Appraiser followed by a second notice (which notice shall specifically state that failure to select a Qualified
Appraiser within ten (10) Business Days shall prohibit appointment of a Qualified Appraiser by the addressed party) given at least ten (10) Business Days prior to the expiration of such twenty-day period, then the appraisal by such
appointed Qualified Appraiser shall be binding on the parties. If the two Qualified Appraisers cannot agree on a value within twenty (20) Business Days after the appointment of the Second Qualified Appraiser, then a third Qualified Appraiser
shall be selected by the two Qualified Appraisers or, failing agreement as to such third Qualified Appraiser within thirty (30) Business Days after the appointment of the Second Qualified Appraiser, by the American Arbitration 
  

 A-3 

 Association office in San Francisco, California. The appraisals of the three Qualified Appraisers shall be given within
twenty (20) Business Days of the appointment of the third Qualified Appraiser and the appraisal of the Qualified Appraiser most different from the average of the other two shall be discarded and such average of the remaining two Appraisers
shall be binding on the parties; provided that if the highest appraisal and the lowest appraisal are equidistant from the third appraisal, the third appraisal shall be binding on the parties. The fees and expenses of the Qualified Appraiser
appointed by a party shall be paid by such party (such fees and expenses not being indemnifiable by Lessee); the fees and expenses of the third Qualified Appraiser shall be divided equally between the two parties, except that all fees and expenses
of all the Qualified Appraisers shall be paid by Lessee in the case of an appraisal or determination under Article 17 of the Lease. 
 “Approved Environmental Consultant” shall mean any environmental consultant to Lessee of national standing and reasonably approved by Lessor. 
 “Authorized Officer” shall mean with respect to a Person if the Person is not an individual, any officer or principal of the Person, any trustee of the Person (if the Person is a trust), any general
partner or joint venturer of the Person (if the Person is a partnership or joint venture) or any manager or member that is a manager of the Person (if the Person is a limited liability company) who shall be duly authorized to execute the Lease.

 “Bankruptcy Code” shall mean the Bankruptcy Reform Act of 1978 as amended and as may be further amended. 
 “Base Rent” shall mean, for the Base Term, the rent payable pursuant to Section 3.1 of the Lease and, for any Renewal Term, the
rent payable pursuant to Article 5 of the Lease as such amounts may be adjusted from time to time. 
 “Base Term” shall mean
the period commencing on the Closing Date and ending on April 30, 2026, or such shorter period as may result from earlier termination of the Lease as provided therein. At any time prior to the commencement of the tenth (10th) Lease year, Lessee shall have the one time right to terminate the Lease upon, delivery of, at least, one
(1) year’s prior written notice to Lessor provided in no event shall the Base Term be less then ten (10) years. The failure of Lessee to exercise its one time right to terminate the Lease prior to the commencement of the tenth
(10) Lease Year in the manner set forth above, shall be deemed a waiver of Lessee’s rights of early termination hereunder. In the event of Lessee’s completion of the Ground Lease Improvements pursuant to the Ground Lease and
modification of the Ground Lease pursuant to Article 4 thereof, Lessee’s right to terminate the Lease upon delivery of, at least, one (1) years prior written notice to Lessor shall not apply until ten (10) years following modification
of the Ground Lease. As an example, if construction of the Ground Lease Improvements was completed in December, 2007 the expiration of the Base Term would continue as April 30, 2026, but for purposes of early termination rights Lessee’s
tenth (10th) Lease Year would commence in December 2016 and end in December 2017, and with the five percent
(5%) increase in Base Rent commencing on May 1, 2011 i.e. five (5) years following the commencement of the Base Term. 
  

 A-4 

 “Business Day” shall mean any day other than a Saturday, Sunday or other day on which
banks are authorized to be closed in the State of California or the State of Illinois. 
 “Casualty” shall mean any damage
or destruction caused to the Property by any reason, whether or not constituting an Event of Loss. 
 “Claims” shall mean
Liens (including, without limitation, lien removal and bonding costs) liabilities, obligations, damages, losses, demands, penalties, assessments, payments, fines, claims, actions, suits, judgments, settlements, costs, expenses and disbursements
(including, without limitation, reasonable, actually-incurred legal fees and expenses and costs of investigation and Remedial Action) of any kind and nature whatsoever. 
 “Closing Date” shall mean April 7, 2006. 
 “Code” shall mean the
Internal Revenue Code of 1986, as amended from time to time. 
 “Condemnation” shall mean any condemnation, requisition or
other taking or sale of the use, occupancy or title to any or all of the Property, by or on account of any eminent domain proceeding or other action by any Governmental Authority or other Person under the power of eminent domain or otherwise or any
transfer in lieu of or in anticipation thereof. 
 “Default Rate” shall mean three percent (3%) above the annual rate
of interest set by Citibank, N.A. (or any successor thereto) as its “Prime Rate” from time to time. 
 “Environmental Laws” shall mean all federal, state or local laws, ordinances, rules, orders, statutes, decrees, judgments, injunctions, codes, regulations and common law (a) relating to the environment, human health or
natural resources; (b) regulating, controlling or imposing liability or standards of conduct concerning Hazardous Materials; (c) relating to the remediation of the Mortgaged Property, including investigation, response, clean-up,
remediation, prevention, mitigation or removal of Hazardous Materials; or (d) requiring notification or disclosure of releases of Hazardous Materials or any other environmental conditions on the Mortgaged Property, as any of the foregoing may
have been or may be amended, supplemented or supplanted from time to time, including the Resource Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. §§ 6901 et seq., as amended by the Hazardous and Solid Waste Amendments
of 1984, the Comprehensive Environmental Response, Compensation and Liability Act, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq. (“CERCLA”), the Hazardous Materials
Transportation Act of 1975, 49 U.S.C. §§ 1801-1812, the Toxic Substances Control Act, 15 U.S.C. §§ 2601-2671, the Clean Air Act, 42 U.S.C. §§ 7041 et seq., the Federal Insecticide, Fungicide and Rodenticide Act, 7
U.S.C. §§ 136 et seq., as any of the foregoing may have been or may be amended, supplemented or supplanted from time to time. 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974.] 
 “Event of Loss” shall
mean (y) the damage, by fire or otherwise, and whether total or partial, that (A) the Lessee in its reasonable discretion shall determine that as a result of such 
  

 A-5 

 damage the Property is no longer useful for its intended purpose, and (B) the cost of repair or restoration would
exceed twenty-five percent (25%) of the appraised value for the Improvements on the Closing Date, (z) the permanent or material taking by Condemnation effecting (A) title to all or substantially all of the Property, or (B) the
principal points of ingress or egress of the Property to public roadways, or (C) such a material part of the Land or the Improvement so as to have a material and adverse effect on the business of the Lessee as conducted from the Property. Any
decision regarding whether the Property is no longer useful for its intended purpose shall be made by Lessee in good faith and evidenced by an Officer’s Certificate of Lessee delivered to Lessor and the Lender. 
 “Excepted Payments” shall mean and include (i) the amount by which Base Rent exceeds all amounts then due and payable under any
debt documents, any amount payable to Lessor as a reimbursement for losses suffered by Lessor pursuant to Section 12.1 above and any other amounts payable directly to Lessor under Article 18 or 19 as set forth in the Lease, (ii) proceeds
of public liability or property damage insurance maintained under the Lease solely for the benefit of any Person other than the Lender, and (iii) any payment required under the Lease to be made directly by Lessee to a third party such as taxes,
utility charges, ground rent, if any, and similar payments. 
 “Existing Rent” shall have the meaning specified in
Section 25.24 of the Lease. 
 “Fair Market Rental Value” with respect to any Property shall mean the fair market
monthly rental value that would be obtained in an arm’s-length transaction between an informed and willing lessee and an informed and willing lessor, in either case under no compulsion to lease, and neither of which is related to Lessor or
Lessee, for the lease of such Property on the terms set forth in the Lease, and taking into consideration the fact that no brokerage commission will be payable, and that Lessee will not be receiving any tenant improvement allowance, period of free
rent, or other economic concession. Such fair market rental value shall be calculated as the value for the use of such Property assuming that such Property is in the condition and repair required to be maintained by the terms of the Lease,
including, without limitation, in compliance with all Applicable Laws and assuming no Hazardous Materials present in, on, under or about the Property. 
 “Fair Market Sales Value” with respect to any Property shall mean the fair market sales value that would be obtained in an arm’s-length transaction between an informed and willing buyer and an
informed and willing seller, under no compulsion, respectively, to buy or sell, and neither of which is related to Lessor or Lessee, for the purchase of the Property. Such Fair Market Sales Value shall be calculated as the value for such Property
using the same methodology as used in the appraisal delivered on or before the Closing Date and assuming that the Property is in the condition and repair required to be maintained by the terms of the Lease, including, without limitation, in
compliance with all Applicable Laws and assuming no Hazardous Materials present in, on, under or about the Property. 
 “Family” shall mean, as to any Person, such Person’s grandparents, all lineal descendants of such Person’s grandparents, Persons adopted by, or stepchildren of, any such grandparent or descendant and Persons
currently married to, or who are widows or widowers of, any such grandparent, descendant, adoptee or stepchild. 
  

 A-6 

 “Final Payment Date” shall have the meaning specified in Section 17.1(e) of the
Lease. 
 “Fixtures” shall have the meaning specified in the term “Property”. 
 “GAAP” shall mean generally accepted accounting principles in the United States, as in effect from time to time, consistently applied.

 “Governmental Action” shall mean all permits, authorizations, registrations, consents, approvals, waivers, exceptions,
variances, orders, judgments, decrees, licenses, exemptions, publications, filings, notices to and declarations of or with, or required by, any Governmental Authority, or required by any Applicable Laws, and shall include, without limitation, all
citings, environmental and operating permits and licenses that are required for the use, occupancy, zoning and operation of the Property. 
 “Governmental Authority” shall mean any federal, state, county, municipal or other governmental or regulatory authority, agency, board, body, commission, instrumentality, court or quasi governmental authority (or private
entity in lieu thereof). 
 “Hazardous Material” shall mean any substance (whether solid, liquid or gas), pollutant,
contaminant, waste or material (including those that are toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous or considered pollutants including petroleum, its derivatives, by-products and
other hydrocarbons and asbestos), in each case that is or becomes regulated by any Governmental Authority, including any agency, department, commission, board or instrumentality of the United States and/or each State in which the Property is
situated, or that may form the basis of liability under any Environmental Law. 
 “Impositions” shall mean, collectively,
all real estate taxes on the Property, all ad valorem, sales and use, gross receipts, transaction privilege, rent or similar taxes levied or incurred with respect to the Property, or the use, lease, ownership or operation thereof, personal property
tax on any property covered by the Lease that is classified by government authorities as personal property, assessments (including all assessments for public improvements or benefits, whether or not commenced or completed within the Lease Term)
(collectively “Taxes”), water, sewer, utilities or other rents and charges, excises, levies, fees and all other governmental charges of any kind or nature whatsoever, general or special, foreseen or unforeseen, ordinary or extraordinary,
with respect to the Property or any part thereof and/or the Rent, including all interest and penalties thereon, which at any time prior to, during or with respect to the Lease Term may be assessed or imposed on or with respect to or be a Lien upon
Lessor or the Property or any part thereof or any rent therefrom or any estate, title or interest therein. Impositions shall exclude, however, and nothing contained in the Lease or any debt documents or related Mortgage shall be construed to require
Lessee to pay, (i) any tax imposed on Lessor, or the Lender based on the net income of Lessor, or the Lender or any transfer tax imposed on Lessor, the Lender or any other Person, except to the extent that any tax described in this clause
(i) is 
  

 A-7 

 levied, assessed or imposed as a total or partial substitute for a tax, assessment, levy or charge upon the Property, the
Rent or any part thereof or interest therein which Lessee would otherwise be required to pay thereunder; (ii) any tax imposed with respect to the sale, exchange or other disposition by (A) Lessor of the Property or (B) the Lender of
its debt; or (iii) any gross receipts, transaction privilege, rent or similar tax, assessment, levy or charge upon Lessor, the Property, the Rent or any part of any thereof or interest therein, but solely to the extent that the same is levied,
assessed or imposed as a total or partial substitute for a tax, assessment, levy or charge described in clause (i) or clause (ii) which Lessee would otherwise not be required to pay hereunder. 
 “Improvements” shall have the meaning specified in the term “Property”. 
 “Indemnitee” shall mean the Lessor, its member, the Lender, any trustee under a Mortgage which is a deed of trust, and each of their
Affiliates and their respective officers, directors, employees, shareholders, members or partners. 
 “Indemnitee’s
Group” shall mean, with respect to a particular Indemnitee, such Indemnitee (including its Affiliates and their respective officers, directors, employees, agents, shareholders, trustees, members or partners) and their successors and
assigns. 
 “Inspecting Parties” shall have the meaning specified in Article 15 of the Lease. 
 “Land” shall have the meaning specified in the term “Property”. 
 “Lease” shall mean the Lease Agreement dated as of the Closing Date between Lessor, as lessor, and Lessee, as lessee. 
 “Lease Default” shall mean any event, condition or failure which, with notice or lapse of time or both, would become a Lease Event of
Default. 
 “Lease Event of Default” shall have the meaning specified in Article 16 of the Lease. 
 “Lease Term” shall mean the full term of the Lease, including the Base Term and any Renewal Terms as to which Lessee exercises a renewal
option pursuant to Article 5 of the Lease, or such shorter period as may result from earlier termination of the Lease as provided therein. 
 “Lease Year” shall mean each consecutive period of twelve (12) full calendar months occurring after the Closing Date, provided, however, that, if the Closing Date shall not be the first day of a month, then the first
Lease Year shall also include the partial month in which the Closing Date occurs. 
 “Lender” shall mean, from time to time,
the holder of the first lien Mortgage on the Property. During periods when there is no Lender, references herein to Lender shall have no force or effect. 
 “Lessee” shall mean the Lessee named in the Lease to which this Appendix is attached. 
  

 A-8 

 “Lessee’s Equipment and Personalty” shall mean all furniture, equipment and
personal property of Lessee, which includes, without limitation, inventory, racking, shelving, conveyer equipment, lifts, cabling, antennae, machinery, air compressors, battery chargers, communication equipment, data cabinets, automated teller
machines, hoist equipment, lockers, plug-in light fixtures, propane tanks, storage racks, trash compactors, signs, desks, movable partitions, vending machines, computer software and hardware, movable storage and utility rooms and removable trade
fixtures and equipment, even if bolted or otherwise affixed to the floors, including, without limitation, telecommunication switches, in each case, as now or may hereafter exist in or on any of the Improvements and any other personal property owned
by Lessee or a sublessee of Lessee or other occupant of the Property. In no case shall Lessee’s Equipment and Personalty include fixtures or built-in heating, ventilating, air-conditioning, and electrical equipment (including power panels) to
be utilized in connection with the operation of the Property. 
 “Lessor” shall mean the Lessor named in the Lease to which
this Appendix is attached. 
 “Lessor Liens” shall mean Liens on or against the Property or the Lease or any payment of Rent
(a) which result from any act of, or any Claim against, Lessor, or which result from any violation by Lessor of any of the terms of the Mortgage or any related debt documents, other than a violation due to a default by Lessee under the Lease,
(b) which result from Liens in favor of any taxing authority by reason of any tax owed and payable by Lessor, except that Lessor Liens shall not include any Lien resulting from any tax for which Lessee is obligated to indemnify Lessor until
such time as Lessee shall have already paid to or on behalf of Lessor the Tax or the required indemnity with respect to the same, or (c) which result from any expenses owed, caused or occasioned by Lessor or any of its employees, contractors or
agents which are not indemnified by Lessee pursuant to Section 19.1 of the Lease, but shall exclude Permitted Liens and any Liens created by the Mortgage and any other debt documents, except to the extent any such Lien arises by the
Lender’s payment of any of the foregoing. 
 “Lien” shall mean any lien, mortgage, pledge, charge, security interest or
encumbrance of any kind, or any other type of preferential arrangement that has the practical effect of creating a security interest, including, without limitation, any thereof arising under any conditional sale agreement, capital lease or other
title retention agreement. 
 “Material” as used to describe Lessee’s compliance requirement in Section 8.5 of the
Lease shall mean that the failure to so comply may reasonably be expected to result in material risk of (i) physical injury or illness to any individual, (ii) criminal liability, or (iii) fines or Remedial Action or compliance costs
in excess of $500,000.00. 
 “Moody’s” shall mean Moody’s Investors Service, Inc. and its successors. 

“Mortgage” shall mean a first lien deed of trust or mortgage (together with any related assignment of rents) between the Lessor, as
mortgagor or trustor, and the Lender, as mortgagee or beneficiary, and as the same may be renewed, amended, modified, consolidated, replaced or extended from time to time. During periods when there is no Mortgage, references in the Lease to the
Mortgage shall have no force or effect. 
  

 A-9 

 “Mortgaged Property” shall mean the Mortgaged Property or Trust Property, as defined in
the Mortgage. 
 “Net Casualty Proceeds” shall mean the compensation and/or insurance payments (whether received from a
third party insurance company or from Lessee because it has self-insured) net of the reasonable expenses of collecting such amounts incurred by the Lessor and Lender if a Lease Event of Default exists, received by the Lender, the Lessor or the
Lessee in respect of the Property by reason of and on account of an Event of Loss described in clause (y) of the definition thereof or a casualty. 
 “Net Condemnation Proceeds” shall mean any award or compensation net of the reasonable expenses of collecting such amounts incurred by the Lessor and the Lender if a Lease Event of Default exists,
received by the Lender, the Lessor or the Lessee in respect of the Property by reason of and on account of a Condemnation. 
 “Net
Proceeds” shall mean Net Casualty Proceeds and Net Condemnation Proceeds. 
 “Nonseverable” shall describe an
Alteration or part of an Alteration which cannot be removed from the existing Improvements or the Land without causing material damage to the Property; provided that Lessee’s Equipment and Personalty shall not be construed as Nonseverable.

 “Officer’s Certificate” of a Person or any Person signing on behalf of a Person shall mean a certificate signed, in
the case of a partnership, by a general partner of such partnership, or in the case of a corporation, by an Authorized Officer of such Person, or, in the case of a limited liability company, by the manager of such limited liability company.

 “Overall Transaction” shall mean all the transactions and activities referred to in or contemplated by the Lease.

 “Permits” shall mean as to the Property all licenses, authorizations, certificates, variances, concessions, grants,
registrations, consents, permits and other approvals issued by a Governmental Authority now or hereafter pertaining to the ownership, management, occupancy, use or operation of such Premises, including certificates of occupancy. 
 “Permitted Encumbrances” shall mean the easements, rights of way, reservations, servitudes and rights of others against the Property
which are listed in the title policy issued to the Lessor by the Title Insurance Company on the Closing Date. 
 “Permitted
Investments” shall mean any one or more of the following obligations or securities having (a) a predetermined fixed dollar of principal due at maturity that cannot vary or change, (b) bearing interest that may either be fixed or
variable but which is tied to a single interest rate index plus a single fixed rate spread (if any) and move proportionately with that index, and (c) having the required ratings, if any, provided for in this definition: 
 (i) direct obligations of, and obligations fully guaranteed as to timely payment of principal and interest by, the United States of America or any agency
or instrumentality of the United States of America, the obligations of which are backed by the full faith and credit of the United States of America that mature in thirty (30) days or less after the date of issuance and that does not have a
“r” highlighter affixed to its rating; 
  

 A-10 

 (ii) time deposits, unsecured certificates of deposit, or bankers’ acceptances that mature in thirty
(30) days or less after the date of issuance and are issued or held by any depository institution or trust company (including the Lender) incorporated or organized under the laws of the United States of America or any State thereof and subject
to supervision and examination by federal or state banking authorities, so long as the commercial paper or other short-term debt obligations of such depository institution or trust company are rated at least “A-1” and “P-1” by
Standard & Poor’s and Moody’s, respectively, or such other rating as would not result in the downgrading, withdrawal or qualification of the then current rating assigned by the Rating Agencies to the Pass-Through Certificates, as
evidenced in writing and that does not have a “r” highlighter affixed to its rating; 
 (iii) repurchase agreements or obligations
with respect to any security described in clause (i) above where such security has a remaining maturity of thirty (30) days or less and where such repurchase obligation has been entered into with a depository institution or trust company
(acting as principal) described in clause (ii) above; 
 (iv) debt obligations bearing interest or sold at a discount issued by any
corporation incorporated under the laws of the United States of America or any state thereof which mature in thirty (30) days or less from the date of issuance, which debt obligations have ratings from Moody’s and Standard &
Poor’s in the highest category possible, or such other rating as would not result in the downgrading, withdrawal or qualification of the then-current rating assigned by the Rating Agencies to any Pass-Through Certificate as specified in writing
by the Rating Agencies and that does not have a “r” highlighter affixed to its rating; provided, however, that securities issued by any particular corporation will not be Permitted Investments to the extent that investment therein will
cause the then-outstanding principal amount of securities issued by such corporation and held in the accounts established hereunder to exceed 10% of the sum of the aggregate principal balance and the aggregate principal amount of all Permitted
Investments in such accounts; and 
 (v) commercial paper (including both non-interest-bearing discount obligations and interest-bearing
obligations) payable on demand or on a specified date maturing in thirty (30) days or less after the date of issuance thereof and which is rated in the highest category possible by Moody’s and Standard & Poor’s and that does
not have a “r” highlighter affixed to such rating. 
 “Permitted Liens” shall mean: 
 (a) the respective rights and interests of the Lessee, the Lessor and the Lender under the Lease and any Mortgage, 
 (b) Liens for Taxes either not yet due or being contested in good faith and by appropriate proceedings, so long as such proceedings shall not involve any
danger of the sale, forfeiture or loss of any part of the Property, title thereto or any interest therein (other than to a de minimis extent) and are undertaken in accordance with the terms of any documents securing the Lender’s loan to Lessor,
(including, without limitation, posting of any bonds or other collateral to the extent required by such documents), 
  

 A-11 

 (c) materialmen’s, mechanics’, workers’, repairmen’s, employees or other like Liens
for amounts either not yet due or being contested in good faith and by appropriate proceedings so long as such proceedings shall not involve any danger of the sale, forfeiture or loss of any part of the Property, title thereto or any interest
therein (other than to a de minimis extent), provided 
 Lessee agrees that it shall pay, discharge or record or bond any such lien within
sixty (60) days after Lessee receives notice thereof, if Lessee does not have a Required Rating equal to or greater than the Trigger Rating, or if a Lease Event of Default under Section 16.1(a), (b) or (c) exists, 
 (d) Liens arising out of judgments or awards with respect to which at the time an appeal or proceeding for review is being prosecuted in good faith and
either which have been bonded or for the payment of which adequate reserves shall have been provided to Lessor’s reasonable satisfaction, provided that if the long-term unsecured debt of Lessee shall not have a Required Rating of at least the
Trigger Rating, then any such amount in excess of $500,000.00 (unless Lessee is insured therefor), shall be bonded or discharged by Lessee within thirty (30) days after Lessee’s knowledge thereof, 
 (e) easements, rights of way, reservations, servitudes and rights of others against the Property which are granted pursuant to Section 25.11 of the
Lease and which could not reasonably be expected to have a material adverse effect on the Property, 
 (f) Permitted Encumbrances, and

 (g) assignments and subleases expressly permitted by the Lease. 
 No lien, judgment, charge or other agreement shall be deemed to be Permitted Lien if such lien, judgment, charge or other agreement, individually or in
the aggregate with other liens, judgments, charges or agreements, materially and adversely affect (i) the value of the Property, (ii) Lessee’s ability to pay all Rent, as and when due hereunder, or (iii) Lessee’s right to
use and operate the Property. 
 “Permitted Use” shall have the meaning given to such term in Section 8.1 of the Lease.

 “Person” shall mean individual, corporation, partnership, joint venture, association, joint-stock company, trust, limited
liability company, non-incorporated organization or government or any agency or political subdivision thereof. 
 “Proceeds
Trustee” shall mean the Lender or, if the Property shall not at the time in question be encumbered by a Mortgage, a federally insured bank or other financial institution, selected by Lessor and reasonably satisfactory to Lessee. 

“Property” shall mean the real property whose parcel or parcels of land are described on Exhibit A to the Lease (the
“Land”); together with all buildings, structures, and other improvements of every kind situated on the Land (collectively, the “Improvements”); together with all easements, rights and appurtenances relating to the
Land or the Improvements; and together with all fixtures, including all components thereof, on and in respect to the Improvements, including, without limitation, all built-in refrigeration and freezer equipment used in the operation of the Property,
together with all replacements, modifications, alterations and additions thereto (collectively, the “Fixtures”), provided that in no event shall “Property” include Lessee’s Equipment and Personalty. 
  

 A-12 

 “Qualified Appraiser” means an independent nationally recognized appraiser who shall be
a member of The Appraisal Institute (or its successor organization) with not less than five (5) years experience appraising properties similar to the Property in the market in which the Property is located. 
 “Rating Agencies” shall mean Moody’s and Standard & Poor’s. 
 “Reference Rate” shall mean on any day, the rate at which prepayments would be discounted under any note secured by a Mortgage (or if no
Mortgage is in effect, the rate at which prepayments would by discounted under the note secured by the Mortgage in effect on or promptly following the Closing Date). 
 “Release” shall mean the release or threatened release of any Hazardous Material into or upon or under any land or water or air, or otherwise into the environment, including, without limitation, by
means of burial, disposal, discharge, emission, injection, spillage, leakage, seepage, leaching, dumping, pumping, pouring, escaping, emptying, placement and the like. 
 “Remedial Action” means the investigation, response, clean-up, remediation, prevention, mitigation or removal of contamination, environmental degradation or damage caused by, related to or arising
from the existence, generation, use, handling, treatment, storage, transportation, disposal, discharge, Release (including a continuous Release), or emission of Hazardous Materials, including, without limitation, investigations, response, removal,
monitoring and remedial actions under CERCLA; corrective action under the Resource Conservation and Recovery Act of 1976, as amended, the investigation, removal or closure of any underground storage tanks, and any related soil or groundwater
investigation, remediation or other action, and investigation, clean-up or other actions required under or necessary to comply with any Environmental Laws. 
 “Renewal Term” shall have the meaning specified in Section 5.1 of the Lease. 
 “Rent” shall mean Base Rent and Supplemental Rent, collectively. 
 “Rent Collection Account”
shall mean the account established by the Lender from time to time, and to which Lessee is directed to make all payments of Rent due to the Lender. 
 “Rent Payment Dates” shall mean the 1st day of each month during the Lease Term, commencing May 1, 2006, provided, however, in the event such date is not a Business Day, the Rent Payment Date shall be the immediately
following Business Day; provided further, however that Base Rent for the period commencing on the Closing Date and terminating on April 30, 2006 shall be payable in advance on the Closing Date. 
 “Required Rating” shall mean a rating of the Lessee at the level set forth in the Lease as required for Lessee to have the benefit
conferred, issued by Standard & Poors and Moody’s (or any replacement of either of them made by the Lender (in which case the rating shall be the equivalent)). 
  

 A-13 

 “Restoration Fund” shall have the meaning specified in Section 12.4(a) of the
Lease. 
 “Sale and Purchase Agreement” shall mean the Purchase and Sale Agreement dated as of April 7, 2006 between
Lessee’s as Seller and Inland Real Estate Acquisitions, Inc. as Purchaser. 
 “Standard & Poor’s” shall
mean Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and its successors. 
 “Stipulated Loss Value” shall mean $36,025,000 (110% of the purchase price set forth in the Sale and Purchase Agreement). 
 “Stipulated Loss Value Date” shall have the meaning specified in Section 12.1(i) of the Lease, and after expiration of the Base Term shall mean the first day of each month during a Renewal Term.

 “Sublease” shall have the meaning given such term in Section 14.1 of the Lease. 
 “Subsidiary” shall mean any corporation whose assets and liabilities are consolidated with that of Lessee. 
 “Supplemental Rent” shall mean any and all amounts, fees, expenses, liabilities, obligations, late charges, Taxes and Impositions other
than Base Rent which Lessee assumes or agrees or is otherwise obligated to pay under the Lease, including, without limitation, to the Lessor, the Lender or any other party, including Fair Market Sales Value payments, Stipulated Loss value payments,
and indemnities and damages for breach of any covenants, representations, warranties or agreements; provided that, when Supplemental Rent is used with respect to the Property, then Supplemental Rent shall be such amounts determined in respect of the
Property. 
 “Term” shall mean the Base Term and Renewal Term (if any). 
 “Terms” shall have the meaning specified in Section 4.1 of the Lease. 
 “Threshold Amount” shall mean $2,000,000.00, but if the Lessee does not have a credit rating (as calculated under the definition of
Trigger Rating) at least equal to the Trigger Rating, Threshold Amount shall mean $500,000. 
 “Title Insurance Company”
shall mean Chicago Title Insurance Company. 
 “Trigger Rating”, with respect to any Person, shall mean that the senior
unsecured obligations of such Person shall have a rating, (or if the senior unsecured obligations of such Person shall not be rated, such Person shall have a confidential debt rating) of BBB by Standard & Poor’s, and by Baa2 by
Moody’s. 
  

 A-14 

 SCHEDULE 3.1 
 Rental Payments 
  

			
	 Years
	  	 Rent Per Annum

	 1-5
	  	$1,846,110.00
	 6-10
	  	$1,938,415.50
	 11-15
	  	$2,035,336.28
	 16-20
	  	$2,137,103.09
	 Renewal Terms
	  	The Base Rent for each Renewal Term shall be increased to an amount which is 105% of the immediate preceding Base Rent.

  

 - 1 - 

 SCHEDULE 9.1 
 Insurance Requirements 
 (a) Lessee covenants and agrees that it will at all times keep in full force and
effect the following insurance coverage: 
 (i) A broad form commercial general liability insurance policy or its then current
industry acceptable equivalent (unamended except for amendments increasing coverages or adding additional insured parties)), including but not limited to premises, operations, automobile liability (which may be carried by separate policy) and
products liability, personal injury liability, contractual liability, and property damage liability coverage at the Property and the business conducted by Lessee thereon. The policy shall provide coverage limits of not less than One Million Dollars
($1,000,000) per occurrence Two Million Dollars ($2,000,000) aggregate. Lessee shall also provide a commercial excess or umbrella liability of Ten Million Dollars ($10,000,000) insuring Lessor and the Lender and its successors and assigns as
additional insureds, as their interest may appear. Lessor may reasonably require other types of general liability insurance, based upon (A) the loss history at the Property, and (B) industry standards, and taking into account Lessee’s
(or its parent’s, if applicable) insurance program, and other types of coverage being obtained in similar transactions. To the extent commercially available, such policy shall contain a deductible of not more than Twenty-Five Thousand Dollars
($25,000.00) per occurrence, (One Hundred Thousand Dollars ($100,000.00) per occurrence so long as Lessee maintains a net worth of, at least, One Hundred Million Dollars ($100,000,000.00)). In the event Lessee maintains a deductible in excess of
$25,000 or $100,000 as required above (but not more than $250,000) Lessee may provide a letter of credit in form approved by Lessor which approval shall not unreasonably be withheld in the amount of the difference between the actual deductible and
the applicable limits to the deductible as described above. 
 (ii) A comprehensive all risk “special form” policy
of standard 100% replacement cost insurance with agreed amount endorsements and no coinsurance against physical loss or damage by fire, lightning and other risks and supplementary perils from time to time included under all risk policies, with
standard and extended coverage or all risk endorsement, including without limitation, vandalism and malicious mischief and also including against terrorist acts based upon the relevant provisions of the Terrorist Risk Insurance Act of 2002
(“TRIA”) or if TRIA is no longer applicable against foreign terrorist acts (to the extent commercially available) of all building and other facilities and improvements constructed on the Property and all tenant finish and leasehold
improvements and fixtures and loss of rents for actual loss sustained for a period of at last twenty-four (24) months. This policy shall name Lessor and the Lender its successors and assigns as loss payees and mortgagee as their interest may
appear. To the extent commercially available, such policy shall contain a deductible of not more than Twenty Five Thousand Dollars ($25,000.00) per occurrence (One Hundred Thousand Dollars ($100,000.00) per occurrence if Lessee maintains a net worth
of at least, One Hundred Millions Dollars ($100,000,000.00) unless Lessee has a Required Rating at least equal to 
  

 1 

 the Trigger Rating, in which case the deductible may be no more than five percent (5%) of the
replacement cost of the Improvements, excluding footings and foundation, as reasonably evidenced to Lessor and Lender upon request of Lessor on behalf of the Lender. Lessee shall be responsible for all deductibles. 
 (iii) Workers’ compensation or other such insurance in accordance with applicable state law requirements covering all of
Lessee’s employees. 
 If Lessee is self-insuring, its obligations shall be that of an insurer under the form of policy delivered to
Lessor as of the Closing. 
 (iv) To the extent the use of the Property is legal, but nonconforming to existing zoning laws
from time to time, Lessee shall also provide law and ordinance insurance. 
 (b) If the Lessee fails to satisfy the condition necessary to
maintain a program of self-insurance adequate to satisfy the requirements set forth herein, Lessee shall have a period of five (5) days in which to obtain the necessary insurance coverage and deliver to Lessor and the Lender a certificate of
insurance evidencing compliance with the requirements set forth in Section 9.1. 
 (c) All policies of insurance described in this
Schedule which Lessee is required to procure and maintain shall be issued by one or more primary insurers having a Standard & Poor’s rating equal to A- or better. 
 (d) Unless Lessee elects (and is permitted) to self-insure as provided in Section 9.1(b), certificates of such insurance will be delivered to Lessor
and the Lender, and any additional insureds upon execution of this Lease and any renewals or extensions of said policies or certificates of insurance shall be delivered to Lessor and the Lender at least ten (10) days prior to the expiration or
termination of such policies. Upon request of Lessor or Lender, Lessee shall provide certified copies of those portions of any policy requested covering all aspects of how a claim can or may be made under such policy, within thirty (30) days of
request. In the alternative, Lessee may provide a certificate from its insurance broker setting forth all of the foregoing, in form and substance reasonably satisfactory to Lessor and the Lender. Unless Lessee elects (and is permitted) to
self-insure as provided in Section 9.1(b), all liability and property damage policies will contain the following provisions: 
 (i) The company writing such policy will agree to give the insured and additionally named insured parties or loss payees not less than thirty (30) days (ten (10) days for nonpayment of premium) notice in writing prior to any
cancellation, reduction, or material modification of such insurance; 
 (ii) Lessor and the Lender shall be named as
additional insured or loss payees, as their interests may appear, for each insurance policy required to be maintained by Lessee (except (a)(iv) above), with all proceeds under any policy under (a)(ii) and (iii) to be paid in accordance with the
provisions of the Lease. 
 (e) Any insurance required by the Lease (excluding, however, the coverage identified in Section (a)(ii) above)
may be brought within the coverage of a so-called blanket policy or 
  

 1 

 policies of insurance carried by and maintained by the insuring party insuring the combined operations at the Property
with other premises leased or owned by Lessee, so long as the insured party and the additional insureds required hereunder are named under such policies as their interest may appear with coverage at least as good as required herein. 
 (f) If Lessee fails to acquire or maintain the insurance required pursuant to this Schedule and Article 9 or to pay the premiums for such insurance and
deliver the required certificates, Lessor may, in addition to other rights and remedies available to Lessor, acquire such insurance and/or pay the requisite premiums therefor. Such premiums so paid by Lessor will be reimbursable and payable by
Lessee immediately upon written demand therefor made to Lessee by Lessor, plus interest at the Default Rate from the date paid by Lessor until reimbursement by Lessee. 
 (g) Except to the extent otherwise provided in the Lease, the parties hereto release each other, and their respective representatives, agents, contractors and employees from any claims for damage to the Property and
all improvements located in the Property, and to the fixtures, personal property, improvements, and alteration of either Lessor or Lessee in or upon the Property, that are caused by or result from risks insured against under any property insurance
policies carried by the parties (or which should have been carried by the parties pursuant to the terms hereof) or, in the case of Lessee’s self-insurance, all risks that would otherwise be insured against under the property policies identified
herein; provided, however, the foregoing shall not impair any claim against Lessee in its capacity as self insurer. Each party shall cause each property insurance policy obtained by it (recognizing that Lessor may not in fact obtain any insurance)
to provide that the insurance company waives in writing all right of recovery by way of subrogation against the other party in connection with any damage covered by such policy. Neither party shall be liable to the other for any damage caused by
fire or any of the risks insured against (or to be insured against) under any property insurance policy required by the Lease or self-insurance maintained in lieu of any such required insurance. 
  

 1 

 SCHEDULE 12.2 
 The first $500,000.00 of any excess Condemnation shall be divided between the Lessor and Lessee as follows: 
  

							
	 If the taking takes place in:
	  	The Lessor receives:	 	 	The Lessee receives:	 
	 2006
	  	8.3	%	 	91.7	%
	 2007
	  	16.7	%	 	83.3	%
	 2008
	  	25	%	 	75	%
	 2009
	  	33.3	%	 	66.7	%
	 2010
	  	41.7	%	 	58.3	%
	 2011
	  	50	%	 	50	%
	 2012
	  	58.3	%	 	41.7	%
	 2013
	  	66.7	%	 	33.3	%
	 2014
	  	75	%	 	25	%
	 2015
	  	83.3	%	 	16.7	%
	 2016
	  	91.7	%	 	8.3	%
	 2017
	  	100	%	 	0	%
	 [    ]
	  			 		

 During any Renewal Term the proceeds shall be allocated 100% to the Lessor. 
  

 1 

 EXHIBIT A 
 LEGAL DESCRIPTION OF PROPERTY 
 ALL THAT CERTAIN REAL PROPERTY SITUATE IN THE CITY OF STOCKTON, COUNTY OF SAN
JOAQUIN, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: 
 BEING A PORTION OF PARCEL 1 AS SAID PARCEL IS SHOWN ON THAT CERTAIN PARCEL MAP FILED APRIL 8,
2003 IN BOOK 22 OF PARCEL MAPS AT PAGE 145, SAN JOAQUIN COUNTY RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: 
 BEGINNING AT THE WESTERLY CORNER OF
SAID PARCEL 1; 
 THENCE ALONG THE NORTHWESTERLY LINE OF SAID PARCEL 1, NORTH 72°45’44 EAST 928.85 FEET; 
 THENCE LEAVING SAID NORTHERLY LINE, SOUTH 17° 39’ 25” EAST, 1065.16 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID PARCEL 1; 
 THENCE ALONG THE EXTERIOR BOUNDARY OF SAID PARCEL ONE, SOUTH 72° 20’ 35” WEST, 902.67 FEET; 
 THENCE, CONTINUING ALONG SAID EXTERIOR BOUNDARY, NORTH 62° 35’ 40” WEST, 40.26 FEET; 
 THENCE CONTINUING ALONG SAID EXTERIOR BOUNDARY, NORTH 17° 31’ 55” WEST, 1043.45 FEET TO THE POINT OF BEGINNING. 
 CONTAINING 993,348 SQUARE FEET OR 22.8041 ACRES, MORE OR LESS. 
 KIER AND WRIGHT CIVIL ENGINEERS &
SURVEYORS, INC. 
  

 1 

 EXHIBIT B 
 Form of Estoppel Agreement 
                     , the
                     of [Lessee][Lessor] hereby certifies that as of
                         (the “Certification Date”), the following is true and correct: 
 (a) the Lease dated as of                     
    , 2006 is unmodified and in force and effect [(or if there have been modifications, that the Lease is in force and effect as modified, and identifying the modification agreements]; 
 (b) the date to which Base Rent has been paid is
                         ,             ;

 (c) to the best of Lessee’s knowledge there is no default by Lessee in the payment of Base Rent or any other Rent payable to Lessor
hereunder, and there is no other existing default by either party with respect to which a notice of default or notice of termination (by Lessor) has been served, [and, if there is any such default, specifying the nature and extent thereof], and, to
the actual knowledge of the property or asset manager of Lessee having responsibility for the Lease and Property, and the officer to which he or she reports, there are no acts under the Lease that have occurred that would constitute a Lease Event of
Default with notice, and the passage of time; 
 (d) to the knowledge of the signer, there are no setoffs, defenses or counterclaims against
enforcement of the obligations to be performed hereunder existing in favor of the party executing such certificate. 
 (e) the term of the
Lease and the payment of rent commenced on                     , 2006, and is scheduled to expire on
                            , 20    , unless renewed or terminated in
accordance with the terms of the Lease. Pursuant to the Lease, Lessee is entitled to renew the Lease for two (2) terms of five (5) years each and a third (3rd) term of four (4) years. 
 [(f) Lessee
is not the subject of any filing for bankruptcy or reorganization under any applicable law.]1 
 [LESSOR/LESSEE] 

	1	Only if Lessee is delivering estoppel certificate. 

 EXHIBIT C 
 SUBORDINATION, NONDISTURBANCE AND ATTORNMENT AGREEMENT 
 THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT
AGREEMENT (the “Agreement”) is made as of the          day December 2005 by and between BEAR STEARNS COMMERICAL MORTGAGE, INC., having an address at 383 Madison Avenue, New York, New York
10179 (“Lender”) and Cost Plus, Inc., a California corporation (“Tenant”). 
 RECITALS: 
 A. Tenant is the holder of a leasehold estate in a portion of the property known as Cost Plus Facility located at 3610 South Airport Way, Stockton,
California as more particularly described on Schedule A (the “Property”) under and pursuant to the provisions of a certain lease dated
                            , 200   between
                        , as landlord (“Landlord”) and Tenant or its predecessor in interest, as tenant (as
amended through the date hereof, the “Lease”); 
 B. The Property is or is to be encumbered by one or more mortgages, deeds of
trust, deeds to secure debt or similar security agreements (collectively, the “Security Instrument”) from Landlord, or its successor in interest, in favor of Lender; and 
 C. Tenant has agreed to subordinate the Lease to the Security Instrument and to the lien thereof and Lender has agreed to grant non-disturbance to Tenant
under the Lease on the terms and conditions hereinafter set forth. 
 AGREEMENT: 
 NOW, THEREFORE, the parties hereto mutually agree as follows: 
 1. Subordination. The Lease shall be subject and subordinate in all respects to the lien and terms of the Security Instrument, to any and all advances to be made thereunder and to all renewals, modifications,
consolidations, replacements and extensions thereof. 
 2. Nondisturbance. So long as Tenant is not in default (beyond applicable
notice and cure periods) of any of its obligations and covenants pursuant to the Lease, Lender agrees for itself and its successors in interest and for any other person acquiring title to the Property through a foreclosure (an “Acquiring
Party”), that Tenant’s possession of the premises as described in the Lease will not be disturbed during the term of the Lease, as said term may be extended pursuant to the terms of the Lease or as said premises may be expanded as
specified in the Lease, by reason of a foreclosure. For purposes of this agreement, a “foreclosure” shall include (but not be limited to) a sheriff’s or trustee’s sale under the power of sale contained in the Security Instrument,
the termination of any superior lease of the Property and any other transfer of the Landlord’s interest in the Property under peril of foreclosure, including, without limitation to the generality of the foregoing, an assignment or sale in lieu
of foreclosure. 
 3. Attornment. Tenant agrees to attorn to, accept and recognize any Acquiring Party as the landlord under the Lease
pursuant to the provisions expressly set forth therein for the then remaining balance of the term of the Lease, and any extensions thereof as made pursuant to the Lease. The foregoing provision shall be self-operative and shall not require the
execution of any further instrument or agreement by Tenant as a condition to its effectiveness. Tenant agrees, however, to execute and deliver, at any time and from time to time, upon the request of the Lender or any Acquiring Party any reasonable
instrument which may be necessary or appropriate to evidence such attornment. 

 4. No Liability. Notwithstanding anything to the contrary contained herein or in the Lease, it is
specifically understood and agreed that neither the Lender, any receiver nor any Acquiring Party shall be: 
 (a) liable for any act,
omission, negligence or default of any prior landlord (other than to cure defaults of a continuing nature with respect to the maintenance or repair of the demised premises or the Property); provided, however, that any Acquiring Party shall be liable
and responsible for the performance of all covenants and obligations of landlord under the Lease accruing from and after the date that it takes title to the Property; or 
 (b) except as set forth in (a), above, liable for any failure of any prior landlord to construct any improvements; 
 (c) subject to any offsets, credits, claims or defenses which Tenant might have against any prior landlord; or 
 (d) bound by any
rent or additional rent which is payable on a monthly basis and which Tenant might have paid for more than one (1) month in advance to any prior landlord; or 
 (e) liable to Tenant hereunder or under the terms of the Lease beyond its interest in the Property or 
 (f)
liable or responsible for or with respect to the retention, application and or/return to the Tenant of any security deposit paid to Landlord or any prior landlord, unless and until Lender or such Acquiring Party has actually received for its own
account as landlord the full amount of such security deposit. 
 Notwithstanding the foregoing, Tenant reserves its rights to any and all
claims or causes of action against such prior landlord for prior losses or damages and against the successor landlord for all losses or damages arising from and after the date that such successor landlord takes title to the Property. 
 5. Rent. Tenant has notice that the Lease and the rents and all other sums due thereunder have been assigned to Lender as security for the loan
secured by the Security Instrument. In the event Lender notifies Tenant of the occurrence of a default under the Security Instrument and demands that Tenant pay its rents and all other sums due or to become due under the Lease directly to Lender,
Tenant shall honor such demand and pay its rent and all other sums due under the Lease directly to Lender or as otherwise authorized in writing by Lender. Landlord hereby irrevocably authorizes Tenant to make the foregoing payments to Lender upon
such notice and demand. 
 6. Lender to Receive Notices. Tenant shall notify Lender of any default by Landlord under the Lease which
would entitle Tenant to cancel the Lease, and agrees that, notwithstanding any provisions of the Lease to the contrary, no notice of cancellation thereof shall be effective unless Lender shall have received notice of default giving rise to such
cancellation and shall have failed within thirty (30) days after receipt of such notice to cure such default, or if such default cannot be cured within thirty (30) days, shall have failed within thirty (30) days after receipt of such
notice to commence and thereafter diligently pursue any action necessary to cure such default. 
 7. Notices. All notices or other
written communications hereunder shall be deemed to have been properly given (i) upon delivery, if delivered in person with receipt acknowledged by the recipient 
  

 2 

 thereof, (ii) one (1) Business Day (hereinafter defined) after having been deposited for overnight delivery
with any reputable overnight courier service, or (iii) three (3) Business Days after having been deposited in any post office or mail depository regularly maintained by the U.S. Postal Service and sent by registered or certified mail,
postage prepaid, return receipt requested, addressed to the receiving party at its address set forth above, and: 
  

			
	if to Tenant, to	 	
	the attention of:	 	Cost Plus, Inc.
		 	200 4th Street
		 	Oakland, California 94607
		 	Attn: Lease Administrator
		
	 and
  
 if to Lender:
	 	

Bear Stearns Commercial Mortgage, Inc.
		 	its successors and/or assigns
		 	383 Madison Avenue
		 	New York, New York 10179
		 	Attention: J. Christopher Hoeffel

 or addressed as such party may from time to time designate by written notice to the other parties. For purposes of
this Paragraph 7, the term “Business Day” shall mean any day other than Saturday, Sunday or any other day on which banks are required or authorized to close in New York, New York. 
 Either party by notice to the other may designate additional or different addresses for subsequent notices or communications. 
 8. Successors. The obligations and rights of the parties pursuant to this Agreement shall bind and inure to the benefit of the successors,
assigns, heirs and legal representatives of the respective parties. In addition, Tenant acknowledges that all references herein to Landlord shall mean the owner of the landlord’s interest in the Lease, even if said owner shall be different than
the Landlord named in the Recitals. 
 9. Duplicate Originals; Counterparts. This Agreement may be executed in any number of duplicate
originals and each duplicate original shall be deemed to be an original. This Agreement may be executed in several counterparts, each of which counterparts shall be deemed an original instrument and all of which together shall constitute a single
Agreement. The failure of any party hereto to execute this Agreement, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder. 
  

 3 

 IN WITNESS WHEREOF, Lender and Tenant have duly executed this Agreement as of the date first above
written. 
  

			
	LENDER:
	
	BEAR STEARNS COMMERCIAL MORTGAGE, INC., a New York corporation
		
	By:	 	  

	Name:	 	
	Authorized Signatory
	
	TENANT:
	
	COST PLUS, INC.
	A California corporation
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	The undersigned as the Landlord named in the Recitals or as successor thereto hereby accepts and agrees to be bound by the provisions of Paragraph 5 hereof.
	
	INLAND WESTERN STOCKTON AIRPORT WAY, L.L.C., a Delaware limited liability company
	
	By: Inland Western Retail Real Estate Trust, Inc. a Maryland corporation
		
	        By:	 	  

	        Name:	 	
	        Title:	 	

  

 4 

			
	STATE OF                     	 	)
		 	)
	COUNTY OF                 	 	)

 I, the undersigned, a Notary Public of the County and State aforesaid, certify that
                                     personally came before me
this day and acknowledged that he/she is the                              of BEAR STEARNS COMMERCIAL
MORTGAGE, INC., a New York corporation and that he/she as its                             ,
being duly authorized to do so, executed the foregoing instrument on behalf of the corporation. 
 WITNESS my hand and official seal, this
         day of                     , 200  . 
  

	
	  

	Notary Public
	My commission expires:                         

 [NOTARIAL SEAL] 
  

 5 

			
	STATE OF                     	 	)
		 	)
	COUNTY OF                 	 	)

 I, the undersigned, a Notary Public of the County and State aforesaid, certify that
                                        
personally came before me this day and acknowledged that he/she is the                      of
                            , a
                             and that he/she as its
                            , being duly authorized to do so, executed the foregoing instrument on
behalf of the corporation. 
 WITNESS my hand and official seal, this      day of
                    , 200  . 
  

	
	  

	Notary Public
	My commission expires:                         

 [NOTARIAL SEAL] 
  

 6 

	
	STATE OF                         
	
	COUNTY OF                     

 I, the undersigned, a Notary Public of the County and State aforesaid, certify that
                             personally came before me this day and acknowledged that he/she is the
                             of INLAND RETAIL REAL ESTATE TRUST, INC., a Maryland corporation, which
is the general partner of INLAND RETAIL REAL ESTATE LIMITED PARTNERSHIP, an Illinois limited partnership, which is the sole member and manager of INLAND SOUTHEAST
                            , L.L.C., a Delaware limited liability company and that he/she as its
                            , being duly authorized to do so, executed the foregoing instrument on
behalf of the corporation. 
 WITNESS my hand and official seal, this      day of
                    , 200  . 
  

	
	  

	Notary Public
	My commission expires:                         

 [NOTARIAL SEAL] 
  

 7 

 EXHIBIT “A” 
 (Attach Legal Description) 
  

 8

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