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Exhibit 10.30    
    

 
 

WAKE FOREST UNIVERSITY
  
    LICENSE AGREEMENT    
    

        THIS AGREEMENT (the "Agreement"), effective October 6th, 1993, is made between WAKE FOREST UNIVERSITY, an educational institution organized under the laws
of the State of North Carolina having its principal offices at Winston-Salem, North Carolina 27109 ("Wake Forest"), and KINETIC CONCEPTS, INC., a Texas corporation with principal offices at
8023 Vantage Drive, San Antonio, Texas 78216 ("KCI"): 

        The
parties hereto agree as follows: 

	1.
	Definitions

        For
all purposes of this Agreement the following terms will have the meanings specified below: 

        1.1   KCI
will mean Kinetics Concepts, Inc. ("KCI"), and any Affiliate of Kinetic Concepts, Inc. 

        1.2   "Affiliate"
will mean an entity that directly or indirectly controls, is controlled by, or is under common control with, the specified entity. For purposes of this
Agreement, the direct or indirect ownership of more than 50% of the outstanding voting shares of an entity, the right to receive 50% or more of the profits or earnings of an entity, or the right to
control policy decisions of an entity, will be deemed to constitute control. 

        1.3   "The
Inventors" will mean Drs. Louis Argenta and Michael Morykwas, presently employees of Wake Forest. 

        1.4   "The
Invention" will mean a wound treatment technology described in the patent applications in Appendix A discovered and reduced to practice by The Inventors and
known by Wake Forest as Method and Apparatus to Enhance Closure and Health of Open Wounds. The Invention will also include all transferable technical
data, practices, plans, specifications, and other information or assistance with respect to the use of the invention. 

        1.5   The
term "Improvement" will mean any improved process, composition or product, as the case may be, for wound treatment by maintaining reduced pressure on a wound to
promote healing of the wound, made by either or both of The Inventors or other employees of Wake Forest working under the direction of The Inventors. 

        1.6   "Patent
Rights" will mean the pending United States and PCT patent applications filed on The Invention, and which are set forth in Appendix A attached hereto and
made a part hereof (hereinafter referred to as the "Patent Application(s)"), and United States and foreign patents issuing from said pending United States and PCT patent applications, and any patents
based upon any of said United States and PCT patents and applications (hereinafter referred to as the "Patent(s)"), and any applications claiming or entitled to claim foreign or domestic priority
including any continuations, continuations-in-part, divisions, reissues or extensions of any of the foregoing, together with any additional patents or applications which may be
subsequently added to Appendix A. 

        1.7   "Licensed
Products" will mean any products made or sold by KCI which: 

	a.
	are
covered by an Issued Claim; or

	b.
	are
manufactured by using a process which is covered by an Issued Claim; or

	c.
	the
use of which is covered by an Issued Claim. 

        1.8   "Licensed
Processes" will mean a method which is covered by an Issued Claim. 

        1.9   [***].

 

        1.10 "Zamierowski
Rights" will mean those U.S., PCT and/or foreign patent applications and patents listed in Appendix B, and any patents issuing from the pending
patent applications, or any related or corresponding U.S. or foreign applications or patents, as well as any continuations, continuations-in-part, divisions, reexaminations,
reissues, substitutes, renewals or extension of any of the foregoing patent applications or patents. 

        1.11 "FDA
Clearance" will mean the first date on which KCI receives FDA clearance to market in the U.S. Preissuance Products or Processes or Licensed Product or Process. 

        1.12 "Commercial
Launch" will mean the date on which KCI completes its first commercial (i.e., excluding market test sales) sale or lease in the U.S. of Preissuance Products
or Processes or Licensed Products or Processes. 

        1.13 "Market
Test" will mean a reasonably reliable market test conducted by KCI, or for KCI pursuant to KCI procedures, prior to Commercial Launch. 

        1.14 An
"Issued Claim" will mean either of the following: 

        A.    In
a country in which no patent coverage exists because (a) no patent application was yet or ever filed in such country, (b) no patent was yet or ever
issued in such country, or (c) any patent that has issued in such country does not have at least one unexpired claim under which the manufacture, sale or use of products or processes
(i) are covered by, (ii) are manufactured by using a process covered by, or (iii) the use of which is covered by at least one unexpired claim in such patent in such country, then
Issued Claim for such country will mean at least one unexpired claim in any U.S. patent within the Patent Rights. 

        B.    In
a country in which patent coverage exists and the manufacture, sale or use of products or processes in such country (i) are covered by, (ii) are
manufactured by using a process covered by, or (iii) the use of which is covered by at least one unexpired claim in a patent in such country within the Patent Rights, then Issued Claim for such
country will mean at least one unexpired claim in any patent within the Patent Rights in such country. 

        1.15 "Preissuance
Products or Processes" will mean products or processes (i) covered by, (ii) manufactured by using a process covered by, or (iii) the
use of which is covered by at least one pending claim contained in any patent application within the Patent Rights regardless of whether the patent application exists in the country of manufacture,
sale, or use. 

	2.
	Grant
of License 

        2.1   Wake
Forest hereby grants to KCI a worldwide right and license to make, have made, use, lease, sell, and sublicense the Preissuance Products and Licensed Products under
the Patent Rights, and to practice and sublicense the Preissuance Processes and Licensed Processes to the full end of the term(s) for which Patent Rights are granted unless sooner terminated as
hereinafter provided. 

        2.2   Wake
Forest hereby agrees that it has not granted and will not grant any other license under the Patent Rights anywhere in the world during the period of time commencing
with the effective date of this Agreement and terminating with the expiration of Patent Rights unless the License under this Agreement is sooner terminated as hereinafter provided. 

        2.3   Wake
Forest reserves the right to make, have made, and use the Licensed Products and to practice and use the Licensed Processes for Wake Forest's own clinical, research,
and educational purposes. Under no circumstances will Wake Forest have the right to commercialize or to assist any other party to commercialize or exploit any portion of the Patent Rights during the
term of this Agreement. 

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	3.
	Due
Diligence 

        3.1   KCI
will use reasonable best efforts consistent with industry practices for like products and processes to bring the commercial embodiment of the Invention to market
within a reasonable time after the effective date of this Agreement. To that end, KCI will develop and test a commercially viable prototype within one year of the effective date of this Agreement.
Within four months of FDA Clearance, KCI will use its reasonable best efforts to complete a Market Test. Within two months thereafter, KCI will use its reasonable best effort to complete Commercial
Launch. 

        3.2   If
Wake Forest believes that KCI has materially failed to meet the time schedule set forth in Section 3.1, and is not exercising reasonable best efforts as
provided herein, Wake Forest will serve KCI with notice of the same, specifying in reasonable detail the basis for its belief. KCI will have 90 days in which to respond. If the parties are
unable to resolve that dispute, it will be submitted to binding arbitration before a single arbitrator pursuant to the Commercial Arbitration Rules then in effect of the American Arbitration
Association. Evidentiary questions will be governed by the Federal Rules of Evidence. The arbitrator's judgment will be based on custom and practices in the industry and the monies, time and effort
devoted to the project among other pertinent factors. The arbitrator's award will be in writing and will set forth the findings and conclusions upon which the arbitrator based the award. The
arbitration will be held in Atlanta. KCI will reimburse Wake Forest for reasonable fees and expenses Wake Forest incurs in excess of $10,000 except that if the arbitrator finds that the position of
one party is unreasonable position, that party will reimburse all reasonable fees and costs of the other party. 

	4.
	Compensation

        4.1   KCI
will pay Wake Forest a one-time, nonrefundable license issue fee of $[***] upon execution of this Agreement. Wake Forest will
credit one-half of the license fee against future royalties due to Wake Forest under Sections 4.2 or 4.3, provided however that such credit to KCI will be applied only up to
one-half of the amount due to Wake Forest in any single reporting period with any balance of such credit as well as any new credits being applied in successive reporting periods. The
credit for any single reporting period, however, will not exceed one-half of the amount due to Wake Forest in any single reporting period. 

        4.2.1 KCI
agrees to pay to Wake Forest as consideration for the rights, privileges, and license granted under this Agreement, an earned royalty of
[***]. 

        4.2.2 Sales
or leases of any Licensed Products or Processes will not be subject to more than one royalty, regardless of the number of patents included with the Patents
Rights applicable to such Licensed Products or Licensed Processes and Preissuance Products or Processes. 

        4.3.1 Upon
first sale or lease of Preissuance Products or Processes or Licensed Products or Licensed Processes in the U.S. and for 5 years thereafter (the minimum
royalty period) KCI will pay Wake Forest a minimum royalty to maintain the exclusive License granted hereunder ("minimum royalty"), the amount of which will be established based on the Market Test.
KCI will [***] calculate projected earned royalties for each year of the minimum royalty period. The minimum royalty due each year of the minimum royalty period will be
[***]% of the projected earned loyalties for each such year of the minimum royalty period. The minimum annual royalty will be non-refundable, but will be creditable
against royalties otherwise due under this Agreement. If earned royalties do not equal or exceed the minimum royalty and if KCI elects not to pay the minimum royalty during the minimum royalty period,
the License will automatically convert to a nonexclusive License and the royalty reduction provisions of Section 4.4 will no longer have any force or effect. 

        4.3.2 Upon
first sale or lease of Licensed Products or Licensed Processes or Preissuance Products or Processes in the U.S., a floor royalty of $[***]
semi-annually ("floor royalty") is required to maintain the License in effect during the entire term of the License, and if KCI elects not to pay the floor 

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royalty,
Wake Forest will have the option to terminate the License under this Agreement by providing written notice of termination to KCI. Payments of earned or minimum royalties will be credited
against the floor royalty. 

        4.4.1 If
KCI is required to pay royalties or the like to a third party to acquire rights under additional patents of third parties and Wake Forest in good faith agrees that
such acquired rights are necessary in order to best commercialize The Invention, the parties will negotiate in good faith a royalty reduction in the earned royalty rate and minimum royalties, but not
floor royalties, set forth in Sections 4.2 and 4.3 of this Agreement. 

        4.4.2 KCI
secures an exclusive license or assignment of the Zamierowski Rights, the parties agree that the earned royalty set forth in Section 4.2 of this Agreement
will be reduced by [***] the amount of royalty payments actually paid to Zamierowski or by [***], whichever is less, or, as the case may be, the minimum
royalties as set forth in Section 4.3, but not floor royalties, will be reduced by [***] of royalty payments actually paid to Zamierowski or by
[***]% of the minimum royalty otherwise payable, whichever is less, during the period of the assignment or exclusive license of the Zamierowski Rights to KCI. This royalty
reduction is also subject to KCI supplying a copy to Wake Forest of all transfers, assignments or licenses of any of the Zamierowski Rights to KCI and any agreements with KCI relating to the
Zamierowski Rights, providing Wake Forest with proof of actual payments made to Zamierowski relating to the Zamierowski Rights, and permitting Wake Forest to audit KCI's records and books relating to
payments made by KCI to Zamierowski relative to the Zamierowski Rights. 

        4.4.3 Notwithstanding
any other provision of this Agreement, in no event will the earned royalty rate payable by KCI to Wake Forest under Section 4.2 of this
Agreement be less than [***]. 

        4.4.4 The
earned royalty rates provided herein are based on the assumption that KCI will have actual exclusivity in the market of wound treatment by maintaining reduced
pressure on a wound to promote healing of the wound. In the event that at least one other company is producing and selling, on a commercial basis, products or processes that are not covered by or do
not infringe the Patent Rights but are competitive to the Licensed Products and/or Licensed Processes, and are sufficient to account for at least a [***]% market share in the
market of wound treatment by maintaining reduced pressure on a wound to promote healing of the wound, the parties will negotiate in good faith to establish a revised earned royalty rate and minimum
royalty, but not floor royalty, given the actual market conditions then existing. Thereafter, if KCI regains actual exclusivity in the market of wound treatment by maintaining reduced pressure on a
wound to promote healing of the wound, the earned royalty rates and minimum royalty rates provided herein will return to their original levels. 

        4.5.1 KCI
agrees to provide to Wake Forest research support in the total amount of $[***], inclusive of all direct and indirect costs, over the first
three years from the execution of this Agreement for research at Wake Forest. The specific research to be supported will be established annually and will include projects of mutual interest negotiated
in good faith by the parties. The research program for the first year is attached as Appendix C. In the event the parties are unable to reach agreement on the research plan for the subsequent
years within 60 days of the second and third anniversaries of this Agreement, KCI will pay Wake Forest two-thirds of the amount remaining unpaid. 

        4.5.2 In
the event any developments or inventions that are not Improvements and are not within the Patent Rights arise during the course of the research performed under
Section 4.1.9, KCI will have an exclusive option to obtain a worldwide exclusive license to such developments and inventions on terms and conditions to be negotiated in good faith and that are
commercially reasonable under the circumstances provided, however, that KCI exercises its option within one year of the date that such development or invention is first disclosed to KCI. 

        4.5.3 The
provisions of Section 7 will apply to research performed under section 4.5.1. The principal investigator of such research projects will make periodic
written reports to KCI no less frequently than 

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every
six months describing the status, data and results of the research, as well as any developments or inventions. Unpatentable data and information resulting from such research maybe used by KCI
without restriction. 

        4.6   Royalties
will be reported to and paid to Wake Forest each 6 months as provided in Section 9. 

        4.7   KCI
will reimburse Wake Forest for all reasonable fees and costs incurred after the effective date of this Agreement to prepare, file, prosecute and maintain U.S., PCT
and foreign patent applications. Wake Forest will credit [***] of such reimbursement actually paid by KCI against future royalties due to Wake Forest under Sections 4.2 or 4.3,
provided however that any such credit to KCI will be applied only up to one-half of the amount due to Wake Forest in any single reporting period with any balance of such credit as well as
any new credits being applied in successive reporting periods. The credit for any single reporting period, however, will not exceed [***] of the amount due to Wake Forest in
any single reporting period. 

        4.8.1 KCI
will escrow earned or minimum royalties for sales or leases of Preissuance Products and Processes until one or more of the events of Section 4.8.2 occurs. 

        4.8.2 If
a U.S. patent under which the manufacture, sale or use of products or processes which (i) are covered by, (ii) are manufactured by using a process
covered by, or (iii) the use of which is covered by at least one claim within the Patent Rights issues within the time period of Section 10.1, KCI will immediately pay the escrowed
royalties for such products or processes to Wake Forest upon issuance of such patent. If no such U.S. patent within the Patent Rights issues within that time period then the escrowed royalties will be
returned to KCI after the expiration of such time period, provided that KCI gives written notice to Wake Forest of KCI's election to terminate the License under this Agreement, and such time period is
extended until written notice is provided to Wake Forest. If no U.S. patent within the Patent Rights has issued but in another country a patent has issued within the Patent Rights under which the
manufacture, sale or use of products or processes in such country (i) are covered by, (ii) are manufactured by using a process covered by, or (iii) the use of which is covered by
at least one claim, then the escrowed royalties attributable to sales in that country will be immediately paid to Wake Forest and future royalties from Net Sales in that country will be paid to Wake
Forest and will not be escrowed. 

        4.8.3 If
a U.S. patent under which the manufacture, sale or use of products or processes which (i) are covered by, (ii) are manufactured by using a process
covered by, or (iii) the use of which is covered by at least one claim within the Patent Rights issues within the time period of Section 10.1, royalties hereunder will be based solely on
Licensed Products and/or Licensed Processes. 

	5.
	Warranty

        5.1   Wake
Forest warrants to its best knowledge and belief that it is the owner of all rights, title, and interest in the Patent Rights, free of any liens, encumbrances,
restrictions and other legal or equitable claims. Wake Forest warrants that it is not aware that the Patent Rights infringe the patent rights of any third party and that it is not aware that the
Invention is unpatentable. 

        5.2   All
property, whether tangible or intangible, which may be delivered hereunder, will be delivered on an "as is, where is" basis without any express or implied warranty.
Wake Forest makes no warranty of merchantability or fitness for any particular purpose. Other than the obligations of Wake Forest set forth in this Agreement, WAKE FOREST MAKES NO OTHER WARRANTIES
WHATSOEVER. WAKE FOREST HEREBY DISCLAIMS ALL WARRANTIES WHETHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR ANY
IMPLIED WARRANTIES ARISING FROM ANY COURSE OF DEALING, USAGE, OR TRADE PRACTICE. WAKE FOREST ASSUMES NO RESPONSIBILITY WITH RESPECT TO THE EXPLOITATION OR COMMERCIALIZATION OF THE PATENT RIGHTS OR THE 

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MANUFACTURE,
USE, SALE, LEASE OR DISTRIBUTION OF ANY METHODS, PROCESSES, APPARATUS, DEVICES, SYSTEMS, PRODUCTS, ARTICLES, AND/OR APPLIANCES DERIVED FROM OR USING THE LICENSED PRODUCTS OR LICENSED
PROCESSES BY KCI. WAKE FOREST WILL NOT BE LIABLE FOR LOSS OF PROFITS, LOSS OF USE, OR ANY OTHER DIRECT, INCIDENTAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES. 

        5.3   Wake
Forest represents that it does not own or control any patents or other intellectual property rights that would dominate, interfere, or limit the rights granted
herein. In the event that, during the term of this Agreement, Wake Forest acquires such rights from the Inventor or other employees of Wake Forest working under the direction of The Inventors, KCI
will have an exclusive option to add such rights to the Patent Rights hereunder. 

	6.
	Future
Improvements 

        6.1   Until
the termination of the Agreement, Wake Forest will promptly provide KCI with information originated or acquired by Wake Forest relative to Improvements. Wake
Forest hereby grants to KCI the exclusive option to add to the Patent Rights any Improvement, subject to the terms and conditions of this Agreement. 

        6.2   In
the event that KCI makes or acquires any enhancement in or to The Invention or the Patent Rights, it will promptly disclose the same to Wake Forest, and at the option
of Wake Forest, KCI will grant Wake Forest a royalty-free non-exclusive right to practice said enhancement for Wake Forest's own clinical, research, and educational purposes.
Under no circumstances will Wake Forest have the right to commercialize or to assist any other party to commercialize or exploit any portion of the enhancement during the term of this Agreement. 

	7.
	Disclosure
Requirements 

        7.1   Wake
Forest and KCI will each select an employee who will act as its technical correspondent in transmitting technical information and in arranging for other assistance
necessary to fully exploit the Patent Rights. Each party will indicate promptly to the other in writing the name of its technical correspondent. The technical correspondents of Wake Forest and KCI
will cooperatively work out a practicable plan to keep each party informed about the other's current and planned activities relating to, the use, production, lease and sale of Licensed Products and
Licensed Processes. KCI will promptly provide Wake Forest with samples, drawings and related information for all prototype, test and/or commercial devices or products of KCI under the Patent Rights
and copies of all information, documents and data and samples and drawings of all devices under the Patent Rights prepared for or submitted to the FDA. 

        7.2   Wake
Forest's technical correspondent will be responsible for answering all reasonable technical inquiries received from KCI's technical correspondent relating to the
Invention, and will provide, to the extent requested, copies of pertinent technical information to KCI, including, to the extent applicable, test reports and other technical reports and manuals, lists
of ingredients and their proportions in compositions of matter and quality control procedures. 

        7.3   Wake
Forest will, on written notice, give to duly accredited representatives of KCI access to the inventor's laboratories, and other facilities, at reasonable times and
under reasonable conditions, for the purpose of acquiring technical information. 

        7.4   All
information exchanged by the technical correspondents will be subject to the provisions of Section 8 of this Agreement. 

	8.
	Confidentiality

        8.1   All
confidential information of either Wake Forest or KCI transmitted to the other party in conjunction with this Agreement, whether prior to or subsequent to the
execution of this Agreement, will be considered to be information which is confidential and proprietary when it is marked in writing 

6

 

as
confidential. Such information will hereinafter be referred to as "Confidential and Proprietary Information," and will be held in confidence, and will not be disclosed to third parties or used for
any purpose other than to fulfill the obligations of this Agreement without prior written consent of the providing party. Confidential and Proprietary information will not include information that: 

	(a)
	is
or becomes publicly available through no act or fault of the receiving party;

	(b)
	is
disclosed to the receiving party by a third party having the right to disclose it;

	(c)
	is
already known by the receiving party as shown by its prior written records provided the receiving party provides written notice to the providing party thereof promptly after
receiving the Confidential and Proprietary Information; or

	(d)
	is
required by law to be disclosed. 

        8.2   Except
as provided in Section 11.12, upon early termination of this License, each party will make no further use of the Confidential and Proprietary Information
and will promptly return to the other all written material which incorporates, or which is based on, or which derives from, or grows out of in whole or in part, any Confidential and Proprietary
Information provided by the other party except that each party may retain one copy of such information if required to do so by applicable governmental regulations. 

        8.3   All
obligations of confidentiality and non-disclosure set forth in this License will expire 5 years from the date of termination of the License under
this Agreement. 

	9.
	Records,
Reports, and Payments 

        9.1.1 KCI
will maintain and will require its sublicensees to maintain accurate records relating to the sale of the Licensed Products or Processes for 5 years
following the end of the calendar year to which they pertain. 

        9.1.2 The
books and records of KCI and its sublicensees relating to this Agreement, and the associated premises, will be open to inspection by Wake Forest at reasonable
intervals, and Wake Forest will be entitled, at its own expense, to request a firm of certified public accountants to inspect the books and records of KCI and its sublicensees and supply a certificate
with respect to the correctness of reports and payments due Wake Forest hereunder, and KCI and its sublicensees will grant such firm of certified public accountants all reasonable assistance necessary
thereto. The information obtained during such inspections will be considered Confidential and Proprietary Information and will be subject to Section 8 of this Agreement whether or not marked as
confidential. 

        9.2.1 KCI
will render to Wake Forest semi-annual reports for the six month periods ending the last days of June and December each year. Reports will be submitted
before [***] of each year, and will show for the period: 

	(a)
	All
Licensed Products and/or Preissuance Products distributed, leased and/or sold.

	(b)
	Accounting
for all the Licensed Processes and/or Preissuance Processes distributed, leased, used or sold.

	(c)
	Deductions
applicable as provided in Section 1.9 or other credits provided in this Agreement.

	(d)
	Total
royalties due. 

KCI
will remit to Wake Forest with each such report the amount of royalty payments shown thereby to be due. If no sales or leases of the Licensed Products or Licensed Processes and/or Preissuance
Products or Processes were made during any calendar half year, KCI will provide to Wake Forest a statement to that effect. 

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        9.2.2 KCI
will render to Wake Forest a similar report within 30 days after the termination of the License under this Agreement, covering the period from the last date
covered by the last preceding report to the date of termination. 

        9.3   Payments 

        9.3.1 The
initial minimum royalty payment will be made in accordance with Section 4.3 and will be due [***] from the last day of the reporting
period in which initial sales or leases of Licensed Products or licensed Processes and/or Preissuance Products or Processes begin. The initial and final minimum royalties due will be prorated based on
the period of sales within the reporting period. Minimum or earned royalties, as the case may be, will be paid semiannually with the [***] reports required in
Section 9.2. 

        9.3.2 During
the minimum royalty period, KCI will pay the earned royalty or the minimum royalty due, whichever is greater. If the earned royalty is greater than the minimum
royalty due, KCI may credit the difference between the amount actually paid in earned royalties and the minimum royalty due against future minimum royalty payments. 

        9.3.3 Within
30 days following the termination of this Agreement, KCI will pay to Wake Forest the amount due to Wake Forest for the period from the last reporting
period covered by the last preceding payment to the date of termination. 

        9.3.4 Royalty
payments will be paid in United States dollars in Winston-Salem, North Carolina, or at such other place as Wake Forest may reasonably designate consistent with
the laws and regulations controlling in any foreign country. Any withholding taxes which KCI will be required by law to withhold on remittance of the royalty payments will be deducted from royalty
paid. KCI will furnish Wake Forest the original copies of all official receipts for such taxes. If any royalties hereunder are based on Net Sales converted from foreign currency, such conversion will
be made by using the exchange rate prevailing at a first-class foreign exchange bank on the last business day of the semiannual reporting period to which such royalty payments relate. 

	10.
	Patent
Prosecution 

        10.1 Wake
Forest and KCI agree to allow a 5-year period from the date of this Agreement for the issuance of a United States patent. This period may be extended
by KCI. 

        10.2 The
prosecution of the U.S., PCT and foreign patent applications and maintenance of all Patent Rights, if any, will be the primary responsibility of Wake Forest;
provided, however, that KCI will have reasonable opportunities to advise and will cooperate with Wake Forest in such prosecution and/or maintenance. Wake Forest will provide KCI's outside patent
counsel with copies of all official correspondence when received and copies of all proposed amendments or responses no less than 3 weeks prior to filing to permit KCI to comment thereon. 

        10.3 KCI
will designate those foreign countries, if any, in which KCI desires foreign patent coverage corresponding to U.S. patent coverage. KCI will pay all reasonable
costs and legal fees associated with the preparation and filing of such foreign patent applications, and such applications will be in Wake Forest's name. KCI will pay earned royalties to Wake Forest
in accordance with Section 4.2 on Licensed Products and/or Licensed Processes and/or Preissuance Products or Processes regardless of whether patent coverage exists in the country of sale,
manufacture or use. In the event KCI elects not to pursue foreign patent coverage in Canada, the European Patent Office (designating France, Germany, U.K., Austria, and Switzerland), Japan, Taiwan,
and Australia, then Wake Forest will be free to License a third party in any country in which patent coverage is not sought. 

        10.4 In
accordance with Section 4.7, KCI will reimburse Wake Forest upon presentation of itemized statements for all reasonable fees and costs incurred after the
effective date of this Agreement relating 

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to
the preparation, prosecution, and maintenance of U.S., PCT and foreign patent filings under the Patent Rights which are initiated by mutual agreement of the parties. 

        10.5 Upon
any claim of any application of the licensed Patent Rights being canceled, abandoned, or disallowed by a final non-appealable or non appealed action of
the Patent Office having jurisdiction, or upon any claim of any patent of the Patent Rights being held invalid or unenforceable by a final non-appealable or a non-appealed
decision of any court or tribunal of competent judgment, such claim will be deemed to have expired, as of the date of final disallowance or holding of invalidity or non-enforceability. 

	11.
	Termination

        11.1 If
no United States patent is issued during the period provided in Section 10.1, this Agreement may be terminated by KCI. 

        11.2 Unless
sooner canceled or terminated as herein provided, the License under this Agreement will continue for the full term of the last expiring Patent Rights. 

        11.3 If
KCI becomes bankrupt or insolvent, or files a petition in bankruptcy, or if the business of KCI is placed in the hands of a receiver, assignee or trustee for the
benefit of creditors, whether by the voluntary act of KCI or otherwise, the License under this Agreement will automatically terminate. 

        11.4 Should
KCI fail in its payment of any license fee, royalties or other payment to Wake Forest due in accordance with the terms of this Agreement, Wake Forest will have
the right to serve upon KCI, by certified mail at the address designated in Section 18, notice of its intention to terminate the License under this Agreement within 30 days after receipt
of said notice of termination Unless KCI will pay to Wake Forest, within the 30 day period, all such amounts due and payable. Upon the expiration of the 30 day period, if KCI will not
have paid all such royalties due and payable, the rights, privileges and license granted hereunder will thereupon immediately terminate. KCI will continue to be obligated to pay Wake Forest all
license fees, royalties and other payments due to Wake Forest at the time of termination. 

        11.5 Upon
any material breach or default of this Agreement by KCI, other than those occurrences set out in Sections 11.3 and 11.4, which will always take precedence in that
order over any material breach or default referred to in this paragraph, Wake Forest will have the right to terminate the License under this Agreement and the rights, privileges and license granted
hereunder by 90 days' notice by certified mail to KCI. Such termination will become effective unless KCI will have cured any such breach or default prior to the expiration of the 90 day
period from receipt of Wake Forest's notice of termination. 

        11.6 Alternatively,
should KCI be in breach or default as set forth above, and should Wake Forest be in a position where it could rightfully terminate the License under this
Agreement, then in its sole discretion, Wake Forest may convert this exclusive license to a non-exclusive license upon giving notice of such decision to KCI. 

        11.7 KCI
will have the right to terminate the License under this Agreement with or without cause at any time on 6 months' notice by certified mail to Wake Forest. 

        11.8 Upon
termination of the license under this Agreement, in whole or part, for any reason or cause, the continuation of all existing sublicenses hereunder will become
subject to the election of Wake Forest as follows: Wake Forest may elect to succeed to all of the rights and obligations of KCI with respect to any or all such sublicenses or may elect to allow any or
all such sublicenses to terminate with the license to KCI under this Agreement. Any sublicense granted by KCI must contain provisions corresponding to this Section relative to termination and the
conditions of continuance of any sublicenses. 

9

 

        11.9 Upon
termination of the License under this Agreement for any reason, nothing herein will be construed to release either party from any obligation accrued prior to the
effective date of such termination. KCI may, however, after the effective date of such termination, sell all Licensed Products, and complete Licensed Products in the process of manufacture at the time
of such termination and sell or lease the same, provided that KCI will pay to Wake Forest the royalties thereon as required by Section 4 and will submit the reports required by Section 9
on the sales of Licensed Products. 

        11.10 Upon
termination of this License for any reason, the rights granted herein will immediately revert to Wake Forest. 

        11.11 If,
at any time during this Agreement, KCI directly or indirectly opposes or assists any third party to oppose the grant of any Letters Patent on any patent
application within the Patent Rights or disputes or directly or indirectly assists any third party to dispute the validity of any patent within the Patent Rights, or any of the claims thereof, Wake
forest will be entitled thereafter to terminate immediately all or any portion of the License granted hereunder by notice thereof to KCI. 

        11.12 If
KCI elects not to pay the floor royalty of $[***] semi-annually as provided in Section 4.3 and Wake Forest exercises its
option to terminate, or upon termination of the License under this Agreement for any reason other than the expiration of the last expiring patent within the Patent Rights, KCI will give Wake Forest
KCI's studies, assessments, marketing information, manufacturing drawings, and molds (unless such molds will be retooled for other products) relating to the Licensed Products and/or the Licensed
Processes and Wake Forest can make whatever use of such materials and information that Wake Forest deems appropriate, including providing such materials and information to a third party for commercial
purposes. 

	12.
	Infringement

        12.1 Each
party will promptly inform the other in writing of any alleged infringement of the Patent Rights by a third party, or the assertion of a declaratory judgment
action alleging invalidity or noninfringement, and provide such other party with any available information about the infringement or declaratory action, as the case might be. Following such notice,
KCI may place [***] first accruing to Wake Forest following the expiration of a thirty day period after such notice into an escrow account as escrowed litigation royalties. KCI
will not settle or compromise any claim or action in a manner that imposes any restrictions or obligations on Wake Forest without Wake Forest's written consent, which consent will not be unreasonably
withheld. 

        12.2.1 During
the term of this Agreement, KCI will prosecute [***] any infringements of the Patent Rights, and, in furtherance of such right, KCM may
join Wake Forest as a party in any such suit, [***] to Wake Forest. As between wake Forest and KCI, KCI will be liable for [***] in such action and KCI
will be responsible, except as provided in Section 12.2.3, for the [***] in such an action. 

        12.2.2 As
a first option for KCI, [***]. Upon settlement or final termination of such action, KCI will immediately pay all escrowed litigation
royalties to Wake Forest. 

        12.2.3 As
an alternative option, [***]. All remaining escrowed litigation royalties will be immediately returned to Wake Forest. Wake Forest will
not, under any circumstances, be liable for any amounts in excess of the escrowed litigation royalties. 

        12.2.4 If,
within 6 months after having been notified of any alleged infringement of the Patent Rights, KCI will have been unsuccessful in persuading the alleged
infringer to desist and will not have brought and will not be diligently prosecuting an infringement action, or if KCI notifies Wake Forest at any time prior thereto of its intention not to bring suit
against any such alleged infringer, then (a) [***] and, (b) [***]. No settlement, consent judgment, or other voluntary fiscal disposition
of the suit may be entered into without the consent of KCI, which consent will not unreasonably be withheld. 

10

 

        12.3.1 In
the event that a Declaratory Judgment Action alleging invalidity or non-infringement of any of the Patent Rights will be brought against KCI or Wake
Forest, [***]. 

        12.3.2 As
a first option for KCI, [***]. Upon settlement or final termination of such action, provided such action does not result in a final
non-appealable or non-appealed decision that the subject patent(s) are invalid or unenforceable, [***]. If the subject patents are found to be invalid
or unenforceable in a final non-appealable or non-appealed decision, [***] if valid patents covering such products or processes still remain within the
Patent Rights. 

        12.3.3 As
an alternative option, [***]. All remaining escrowed litigation royalties will be immediately returned to Wake Forest. Wake Forest will
not, under any circumstances, be liable for any amounts in excess of the escrowed litigation royalties. 

        12.3.5 If
KCI is not diligently prosecuting or defending any Declaratory Judgment Action, then (a) [***] and
(b) [***]. No settlement, consent judgment or other voluntary fiscal disposition of the suit may be entered into without the consent of KCI, which consent will not
unreasonably be withheld. 

        12.4.1 KCI
will have a duty to defend any suit or counterclaim brought against Wake Forest or KCI for alleged infringement of any patent of any third party, to the extent
such suit is based upon a claim that the infringement arises from the manufacture, use or sale by KCI of products and/or processes within the Patent Rights pursuant to this Agreement. As between Wake
Forest and KCI, [***]. 

        12.4.2 Each
party will promptly inform the other in writing of the commencement of any such infringement action by a third party. Following such notice, KCI may place up to
a maximum of [***] into an escrow account as escrowed litigation royalties. KCI will not settle or compromise any such action in a manner that imposes any restrictions or
obligations on Wake Forest without Wake Forest's written consent, which consent will not be unreasonably withheld. 

        12.4.3 [***]
any such infringement action by any third party [***]. All remaining escrowed litigation royalties will be
promptly returned to Wake Forest. [***]. 

        12.4.4 Any
recovery of damages by KCI in any such infringement action by any third party in which escrowed litigation royalties of Wake Forest were used by KCI
[***]. 

        12.4.5 If
the exercise of the rights granted KCI herein infringe the rights of a third party, Wake Forest may elect to pursue a license from such third party that would
permit KCI to exercise the rights granted herein without limitation or interruption and without payments by KCI, or Wake Forest may authorize KCI to pursue such a license. In the event Wake Forest
authorizes KCI to secure such a license, and the terms of such a license provide for royalties or other payments by KCI to such third party, then the parties will negotiate in good faith, a royalty
reduction in the earned royalty rate set forth in Section 4.2 and the minimum royalty, but not the floor royalty, set forth in Section 4.3 such that the total royalties payable are
commercially reasonable. 

        12.4.6 If
the exercise of the rights granted KCI herein are found to infringe the rights of a third party in a decision that is final and non-appealable or
non-appealed, and neither Wake Forest nor KCI are able to secure a license from such third party, all remaining escrowed litigation royalties will be given to KCI, provided that KCI
provides written notice to Wake Forest of KCI's election to terminate the License under this Agreement. 

	13.
	Product
Liability 

        13.1 Except
as specifically provided otherwise under Section 12 of this Agreement, KCI and its sublicensees will, at all times during the term of this Agreement and
thereafter, indemnify, hold harmless and defend Wake Forest, its trustees, officers, employees and affiliates against all claims and expenses, including legal expenses and reasonable attorneys' fees,
arising out of any loss, claim, damage, or liability of whatsoever kind or nature which may arise at any time out of or in connection 

11

 

with
any activity of KCI involving the Licensed Products or Licensed Processes or Preissuance Products or Processes or the Patent Rights, including without limitation the use, sale, or distribution of
any product derived from or using the Licensed Products or Licensed Processes or Preissuance Products or Processes or the Patent Rights. 

        13.2 KCI
and its sublicensees will carry liability insurance at its expense, adequate to assure its obligations to Wake Forest under this section. KCI will include
satisfactory evidence of adequate insurance coverage with each semi-annual report required by Section 9. 

	14.
	Assignment

        KCI
may assign or otherwise transfer this Agreement and the License granted hereby and the rights acquired by it hereunder so long as such assignment or transfer will be accompanied by a
sale or other transfer of KCI's entire business or of that part of KCI's business to which the License granted hereby relates. KCI will give Wake Forest 30 days prior notice of such assignment
and transfer and if Wake Forest raises no reasonable objection to such assignment or transfer in writing within 30 days after the giving of such notice and stating the reasons for such
objection, then Wake Forest will be deemed to have approved such assignment or transfer; provided, however, Wake Forest will not be deemed to have approved such assignment and transfer unless such
assignee or transferee will have agreed in writing to be bound by the terms and conditions of this Agreement. Upon such assignment or transfer and agreement by such assignee or transferee, the term
KCI as used herein will include such assignee or transferee. If KCI sells or otherwise transfers its entire business or that part of its business to which the License granted hereby relates and the
transferee will not have agreed in writing to be bound by the terms and conditions of this Agreement, or new terms and conditions will not have been agreed upon within 60 days of such sale or
transfer, Wake Forest will have the right to terminate the License under this Agreement. 

	15.
	Non-Use
of Names 

        KCI
will not use the names of Wake Forest or of The Inventors, nor any adaptation thereof in any advertising, promotional or sales literature without prior written consent obtained from
Wake Forest in each case, except that KCI may state that it is licensed by Wake Forest under one or more of the patents and/or applications comprising the Patent Rights. 

	16.
	Export
Controls 

        It
is understood that Wake Forest is subject to United States laws and regulations controlling the export of technical data, computer software, laboratory prototypes and other
commodities and that the activities of KCI may require a license from the relevant agency of the United States Government and/or written assurances by KCI that KCI will not export data or commodities
to certain foreign countries without prior approval of such agency. Wake Forest neither represents that a license will not be required nor that, if required, it will be issued. 

12

 

	17.
	Payments,
Notices and Other Communications 

        Any
payment, notice, or other communication pursuant to this Agreement will be sufficiently made or given an the date of mailing if sent to such party by certified first class mail,
postage prepaid, addressed to it at its address below or as it will designate by written notice given to the other party: 

	Wake Forest:	Julie M. Watson

Technology Transfer Service

Wake Forest University

The Bowman Gray School of Medicine

Medical Center Boulevard

Winston-Salem, North Carolina 27157
	

KCI:	

Peter A. Leininger, M.D.

Director and Senior Vice President

Kinetic Concepts, Inc.

8023 Vantage Drive

San Antonio, Texas 78216

	18.
	Miscellaneous
Provisions 

        18.1 This
Agreement will be construed, governed, interpreted, and applied in accordance with the laws of the State of North Carolina, U.S.A., except that questions affecting
the construction and effect of any patent will be determined by the law of the country in which the patent was granted. 

        18.2 The
parties hereto acknowledge that this Agreement sets forth the entire agreement and understanding of the parties hereto as to the subject matter hereof, and will not
be subject to any change or modification except by the execution of a written instrument subscribed to by the parties hereto. 

        18.3 The
provisions of this Agreement are severable, and in the event that any provision of this Agreement will be determined to be invalid or unenforceable under any
controlling body of law such invalidity or unenforceability will not in any way affect the validity or enforceability of the remaining provisions hereof. 

        18.4 KCI
agrees to mark the Licensed Products sold in the United States with all applicable United States patent numbers. All Licensed Products shipped to or sold in other
countries will be marked in such a manner as to conform with the patent laws and practice of the country of manufacture or sale. 

        18.5 The
failure of either party to assert a right hereunder or to insist upon compliance with any term or condition of this Agreement will not constitute a waiver of that
right or excuse a similar subsequent failure to perform any such term or condition by the other party. 

        18.6 In
any litigation arising under or relating to this Agreement between the parties hereto, the prevailing party or parties will be entitled to recover its reasonable
attorneys fees and litigation costs. 

        18.7 Except
as otherwise specifically provided in Section 14 of this Agreement, neither this Agreement nor any of the licenses or rights herein granted will be
assignable or otherwise transferable by KCI without the prior written permission of Wake Forest. 

        18.8 This
Agreement will be binding and inure to the benefit of the parties hereto and their respective Affiliates, and permitted successors and assigns. 

        18.9 The
representations, warranties, covenants, and undertakings contained in this Agreement are for the sole benefit of the parties hereto and their permitted successors
and assigns and such 

13

 

representations,
warranties, covenants, and undertakings will not be construed as conferring any rights on any other party. 

        18.10 Nothing
contained in this Agreement will be deemed to place the parties hereto in a partnership, joint venture or agency relationship and neither party will have the
right or authority to obligate or bind the other party in any manner. 

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

        18.12 A
party to this Agreement will be excused from any performance required hereunder if such performance is rendered impossible or commercially impracticable due to a
catastrophe or other event, including without limitation, war, riot and insurrection, laws, proclamations, edicts, ordinances or regulations, including a health emergency; strikes, lockouts or other
serious labor disputes; and floods, fires, explosions or other natural disasters. 

IN
WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals and duly executed this License Agreement the day and year first set forth below. 

	WAKE FOREST UNIVERSITY	 	KINETIC CONCEPTS, INC.
	

By:	

/s/  J. KIFFIN PENRY      	
 	

By:	

/s/  JAMES R. LEININGER, M.D.      
	 	
	 	 	

	Name:	J. Kiffin Penry, M.D.	 	Name:	James R. Leininger, M.D.
	Title:	Senior Associate Dean	 	Title:	CEO and President
	

Date:	

10/5/93	
 	

Date:	

10/6/93
	 	
	 	 	

14

 
 
 

APPENDIX A    
    

[***] 

15

 
 
 

APPENDIX B    
    

Wound Dressing and Treatment Method

David S. Zamierowski

Patent No: 4,969,880

Issued: November 13, 1990 

Fluidic Connection System and Method

David S. Zamierowski

Patent No: 5,100,396 (CIP of 4,969,880)

Issued: March 31, 1992 

Fastening System and Method

David S. Zamierowski

Serial No: 07/699,936

Filed: May 14, 1991 

Fastening System and Method

David S. Zamierowski

Serial No: PCT/US92/04019

Filed: May 14, 1992 

16

 
 
 

APPENDIX C    
    

YEAR
ONE RESEARCH

TOTAL [***] 

	1.
	Determination
of optimal vacuum levels (inches Hg) to maximize superficial and deep tissue perfusion levels as determined by laser doppler needle probes and superficial tissue
O2 and CO2 levels with transcutaneous probes. Studies are needed to determine the maximum and minimum boundaries of applied vacuum and also the optimal vacuum level to maximize
perfusion in sensate and cord injured patients. (The lack of vascular tone in cord injured patients may result in different responses to applied vacuum than sensate patients.)
$[***]

	2.
	Effects
of intermittent vacuum timing on superficial and deep tissue perfusion as determined by laser doppler needle probes. Studies are needed to determine the optimal cycle
conditions; whether symmetrical or asymmetrical. If asymmetrical, then duration of on and off periods needs to be determined for both sensate and cord injured patients. $[***] 

Major
Equipment 

MBF3D—Dual
Channel Microvascular Laser Doppler Blood Flow

                Monitor with 4 needle probes

                Moor Instruments Ltd. Devon England

                Can be used for both human (1&2) studies $[***] 

17

        22 December, 2000 

        Confidential

Kinetic
Concepts, Inc. ("KCI"),

a Texas corporation

8023 Vantage Drive

San Antonio, Texas 78230-4726 

Wake
Forest University ("Wake Forest"),

a North Carolina educational institution

through its Wake Forest University School of Medicine

Medical Center Boulevard

Winston-Salem, North Carolina 27157

Attention: Office of Technology Asset Management 

	Re:
	Amendment to License Agreement dated October 6, 1993 (the "Agreement")

Gentlemen:

        We
have been discussing amendments to our License Agreement dated October 6, 1993 (herein, the "Agreement"). This letter (hereinafter, this "Amendment") documents such amendments,
which are made principally for relieving KCI of certain near term obligations in hopes of enabling longer term market penetration, for our mutual benefit. 

Adjusted Royalty Calculations  

        Section 4.4.2 of the Agreement is hereby amended by adding the following sentence at the end thereof: The royalty reduction to the amount of earned royalty
to be paid by KCI to Wake Forest as a result of royalty payments to be made by KCI to Zamierowski as provided under Section 4.4.2 shall not be affected by any temporary relief of the actual
payment by KCI of any royalty obligations due to Dr. Zamierowski for the period ("Time Period of Relief") beginning on July 1, 2000 and ending on December 31, 2002. As such, for
the Time Period of Relief, the term "royalty payments actually paid to Zamierowski" as used in the first sentence of 4.4.2 of the Agreement shall be deemed to include both royalty payments actually
made by KCI to Zamierowski as well as any royalty payments that would have accrued to Zamierowski but not actually paid by KCI due to temporary relief during the Time Period of Relief. 

        In
addition, Article 4, "Compensation," of the Agreement is hereby amended by adding the following additional paragraphs: 

        4.9.1 For
purposes of this Agreement, "Domestic Royalties" means that portion of the earned royalty due for Net Sales of Licensed Products or Licensed Processes in the
United States. "International Royalties" means that portion of the earned royalty due for Net Sales of Licensed Products or Licensed Processes outside of the United States. 

        4.9.2 For
the six-month period ending the last day of December, 2000 and for such period only, after all other calculations of earned royalty under this
Agreement, the amount of Domestic Royalties due for that period shall be reduced by [***] dollars $[***]. Any minimum royalty obligations far such
six-month period ending on December 31, 2000 shall not apply. 

        4.9.3 As
partial consideration for the royalty reduction provided in Section 4.9.2, and beginning with the semi-annual royalty report and corresponding
payment (the "Report") due to be submitted [***], 2001, and ending with the Report due to be submitted [***], 2002, KCI shall advance payment for
Domestic Royalties prospectively ("Prospective Payments") for the then-current semi-annual periods ("Halves" or "Half Years"). Payments for International Royalties are not
affected by this Amendment and are due and payable as provided for in the Agreement. 

 

Prospective
Payments shall be based on the following projections for the corresponding Halves of calendar years 2001 and 2002, unless otherwise mutually agreed to in writing: 

	YEAR
 
	 	Projected Domestic

Net Sales For

First Half
	 	Projected Domestic

Net Sales for

Second Half

	2001	 	$	[***]	 	$	[***]
	2002	 	$	[***]	 	$	[***]

        For
any Half Year in which Prospective Royalties have been paid, any difference between the Prospective Payments actually made by KCI to Wake Forest for such Half Year and the amount of
Domestic Royalties actually earned for such Half Year ("Corrections") will be accounted for in the next succeeding Report following such Half Year. Notwithstanding the foregoing, the Report due to be
submitted the last day of [***], shall also include accounting for Domestic Royalties earned for the second Half Year of 2000; whereas the Domestic Royalties of all other
Reports due to Wake Forest in years 2001 and 2002 shall be limited to the Prospective Payments, the Added Domestic Royalty as described in Paragraph 4.9.4 of this Agreement (to the extent
applicable), and any Corrections. After the [***] Report for the prospective period ending on December 31, 2002, the Prospective Payment provisions of this
Paragraph 4.9.3 shall no longer apply and royalties shall again be paid retrospectively, as set forth elsewhere in this Agreement, provided, however, that KCI shall make any applicable
Correction in the Report of [***] for the Half Year ending on December 31, 2002. 

        4.9.4 As
partial consideration for the royalty reduction provided in Section 4.9.2 and in addition to the other payment obligations set forth in this Agreement,
beginning January 1, 2000, KCI shall owe an Added Domestic Royalty (defined below) to Wake Forest until the date on which the cumulative total of such Added Domestic Royalty actually paid to
Wake Forest equals [***] ($[***]). The "Added Domestic Royalty" shall be calculated retrospectively as [***]% of Net Sales of
Licensed Products or Licensed Processes in the United States during each Half Year commencing with
the Half Year of January 1, 2001 through June 30, 2001. The Added Domestic Royalty shall be paid by KCI to Wake Forest with the Report for each Half Year. The first payment for the Added
Domestic Royalty is not due until the Report of [***] for the Half Year ending on June 30, 2001. 

        4.9.5 In
partial consideration for the royalty reduction provided in Section 4.9.2, KCI will also pay to Wake Forest a minimum U.S. royalty of
[***] ($[***]) (the "Transition Minimum"), in addition to any International Royalties due and payable, with the Report due on the last day of
[***] (the "Transition Report"). Any Domestic Royalties (including Added Domestic Royalties) paid with the Transition Report will be credited against said Transition Minimum,
and the amount of the Transition Minimum which exceeds such Domestic Royalties shall be credited to KCI as a royalty credit ("Royalty Credit"). KCI shall have the right to apply its unused Royalty
Credit with subsequent Reports in amounts not to exceed [***] ($[***]) per Report. 

        4.9.6 If
KCI terminates this Agreement prior to January 1, 2004 for any reason other than material breach by Wake Forest resulting in damages awarded to KCI of at
least $[***] or if Wake Forest terminates this Agreement prior to January 1, 2004 due to an uncured material breach by KCI, then KCI will pay a termination fee of
[***] ($[***]) to Wake Forest within thirty (30) days following such termination. 

Escrow Provisions  

        Section 12.1 of the Agreement is hereby amended by deleting the second sentence of Section 12.1 in its entirety and replacing the deleted sentence
with the following sentence: "Thirty (30) days following such notice, KCI may escrow a portion of the royalties payable to Wake Forest in any one 

2

 

payment
period, the aggregate of said-escrowed royalties not to exceed [***] KCI's direct, out-of-pocket expenses paid by KCI during that
same and prior periods in direct relation to (i) prosecuting a defense against a declaratory judgment action by a bona fide third party alleging invalidity or non-infringement of
the Patent Rights, or (ii) filing and prosecuting an infringement action against a bona fide third party for infringement of the Patent Rights; provided that said escrowed royalties are no
greater than [***]% the total royalties payable to Wake Forest in that same payment period." 

Controlling Terms  

        The terms of this Amendment shall control over the terms of the original Agreement which are inconsistent with this Amendment. Any and all other terms of the
Agreement remain in full force and effect. 

        Now
therefore, in consideration of the foregoing mutual covenants and for other good and valuable consideration, the sufficiency of which is hereby acknowledged and agreed, the Parties
hereby agree that the terms of this Amendment amend the Agreement. In witness whereof, each Party has caused this Amendment to be executed by its duly authorized representative, to be effective as of
July 1, 2000. 

ACKNOWLEDGED AND AGREED:  

	Kinetic Concepts, Inc.	 	Wake Forest University

through its Wake Forest University of

School of Medicine
	

By:	

/s/  FRANK DILAZZARO      	
 	

By:	

/s/  RICHARD H. DEAN      
	 	
	 	 	

	 	Frank DiLazzaro

Senior Vice President	 	 	Richard H. Dean, M.D.

Senior Vice President for Health Affairs
	

Date:	

12-22-2000	
 	

Date:	

12-22-2000
	 	
	 	 	

3

QuickLinks

Exhibit 10.30

WAKE FOREST UNIVERSITY LICENSE AGREEMENT

APPENDIX A

APPENDIX B

APPENDIX C<Page>

                                                                    EXHIBIT 10.1

                            INDUSTRIAL BUILDING LEASE

1.     BASIC TERMS. This SECTION 1 contains the Basic Terms of this Lease
between Landlord and Tenant, named below. Other Sections of the Lease referred
to in this SECTION 1 explain and define the Basic Terms and are to be read in
conjunction with the Basic Terms.

1.1.   Date of Lease: June 29, 2001

1.2.   Landlord: First Industrial, L.P., a Delaware limited partnership

1.3.   Tenant: Natural Golf, Inc., an Illinois corporation

1.4.   Premises: Approximately 25,395 rentable square feet in the building
       commonly known as 1200 Business Center Drive, Mount Prospect, Illinois
       (the "BUILDING").

1.5.   Property: See EXHIBIT A.

1.6.   Lease Term: Three (3) years ("INITIAL TERM"), commencing December 1, 2001
("COMMENCEMENT DATE") and ending November 30, 2004 ("EXPIRATION DATE"), subject
to extension pursuant to SECTION 2.2 below.

1.7.   Permitted Uses: (See SECTION 4) General office, telemarketing, warehouse
and light assembly.

1.8.   Tenant's Guarantor: None.

1.9.   Brokers: (See Section 23; if none, so state)
       (A) Tenant's Broker: The Levy Organization
       (B) Landlord's Broker: Insignia ESG

1.10.  Security Deposit: (See SECTION 4) $55,000, subject to reduction pursuant
to SECTION 4.

1.11.  Base Rent Payable by Tenant is as follows:

<Table>
       <S>                                             <C>
       December 1,2001 through November 30,2002. . . . $11,321.94 per month

       December 1,2002 through November 30,2003. . . . $11,661.60 per month

       December 1,2003 through November 30,2004. . . . $12,011.44 per month
</Table>

1.12.  Tenant's Proportionate Share: 23.96%

1.13.  Riders to Lease: The following riders are attached to arid made a part of
this Lease: None.

2. LEASE OF PREMISES: RENT .

2.1.   LEASE OF PREMISES FOR LEASE TERM. Landlord hereby leases the Premises to
Tenant, and Tenant hereby rents the Premises from Landlord, for the Term and
subject to the conditions of this Lease.

2.2.   RENEWAL OPTION. Provided that this Lease is in full force and effect and
Tenant is not in default under the terms hereof beyond applicable cure period,
Landlord hereby grants to Tenant

<Page>

the option to extend the Initial Term (the "RENEWAL OPTION ") for one (1)
additional period of three (3) years (the "RENEWAL TERM ") on the same terms and
conditions of this Lease, except as otherwise provided in this SECTION 2.2. For
purposes of this Lease, the Initial Term as extended by any Renewal Term is
hereinafter referred to as the "TERM." Tenant may exercise the Renewal Option by
delivery of written notice (a "Renewal Notice") to Landlord on or prior to the
date which is 180 days prior to the expiration of the Initial Term. The monthly
Base Rent for the Premises during the Renewal Term shall be:

<Table>
<S>                                        <C>
December 1,2004 to November 30,2005. . . . $12,371.78 per month

December 1,2005 to November 30,2006. . . . $12~742.94 per month

December 1,2006 to November 30,2007. . . . $13,125.22 per month
</Table>

2.3.   TYPES OF RENTAL PAYMENTS. Tenant shall pay rents of (a) net base rent
payable in monthly installments as set forth in SECTION 1.11 hereof, in advance,
on the first day of each and every calendar month during the Term of this Lease
(the "BASE RENT"); and (b) Tenant's Proportionate Share of Operating Expenses
(defined below) and any other amounts owed by Tenant hereunder (collectively,
"ADDITIONAL RENT"); and (c) in the event any monthly installment of Base Rent or
Additional Rent, or both, is not paid within 10 days of the date when due, a
late charge in an amount equal to 5% of the then delinquent installment of Base
Rent and/or Additional Rent (the "LATE CHARGE"; the Late Charge, Base Rent and
Additional Rent shall collectively be referred to as "RENT"), to First
Industrial, L.P ., 75 Remittance Drive, Suite 1449, Chicago, Illinois
60675-1449, or if sent by overnight courier, The Northern Trust Company, 350
North Orleans Street, Receipt and Dispatch, 8th Floor, Chicago, Illinois 60654,
Attention: First industrial, L.P ., Suite 1449 ( or such other entity designated
as Landlord' s management agent, if any, and if Landlord so appoints such a
management agent, the "AGENT"), or pursuant to such other directions as Landlord
shall designate in this Lease or otherwise in writing.

2.4.   COVENANTS CONCERNING RENTAL PAVMENTS. Tenant shall pay the Rent promptly
       when due, without notice or demand, and without any abatement, deduction
       or setoff, except as may otherwise be expressly and specifically provided
       in this Lease. No payment by Tenant, or receipt or acceptance by Agent or
       Landlord, of a lesser amount than the correct Rent shall be deemed to be
       other than a payment on account, nor shall any endorsement or statement
       on any check or letter accompanying any payment be deemed an accord or
       satisfaction, and Agent or Landlord may accept such payment without
       prejudice to its right to recover the balance due or to pursue any other
       remedy available to Landlord. If the Commencement Date occurs on a day
       other than the first day of a calendar month, the Rent due for the first
       calendar month of the Term shall be prorated on a per diem basis and paid
       to Landlord on the Commencement Date, and the Term will be extended to
       terminate on the last day of the calendar month in which the Expiration
       Date stated in Section 1.6 occurs.

3.     OPERATING EXPENSES.

       3.1.     DEFINITIONAL TERMS RELATING TO ADDITIONAL RENT. For purposes of
this Section and other relevant provisions of the Lease:

       3.1.1.   OPERATING EXPENSES. The term "OPERATING EXPENSES" shall mean all
costs and expenses paid or incurred with respect to the ownership, repair,
replacement, restoration, maintenance and operation of the Property, including,
without limitation, the following: (i) all costs, wages and benefits of
employees or other agents of Landlord or Agent engaged in the operation,
maintenance or rendition of other services to or for the Property; (ii) to the
extent not separately metered, billed, or furnished, all charges for utilities
and services furnished to either or

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both of the Property and the Premises (including, without limitation, the Common
Areas [ as hereinafter defined]), together with any taxes on such utilities;
(iii) all premiums for casualty, workers' compensation, liability, boiler, flood
and all other types of insurance provided by Landlord and relating to the
Property , all third party administrative costs incurred in connection with the
procurement and implementation of such insurance policies, and all deductibles
paid by Landlord pursuant to insurance policies required to be maintained by
Landlord under this Lease; (iv) the cost of all supplies, tools, materials and
equipment utilized in the ownership arid operation of the Property, and sales
and other taxes thereon; (v) amounts charged (including, without limitation,
those costs and expenses set forth in Section 13.2(i) below) by any or all of
contractors, materialmen and suppliers for services, materials and supplies
furnished in connection with any or all of the operation, repair and maintenance
of any part of the Property , including, without limitation, the structural
elements of the Property and the Common Areas; (vi) management fees to Agent or
other persons or management entities actually involved in the management and
operation of the Property (which persons or management entities may be
affiliates of Landlord); (vii) any capital improvements made by, or on behalf
of, Landlord to the Property that are either or both (a) designed to reduce
Operating Expenses and (b) required to keep the Property in compliance with all
governmental laws, rules and regulations (enacted from and after the date of
this Lease) applicable thereto, from time to time, the cost of which capital
improvements shall be reasonably amortized by Landlord over the useful life of
the improvement, in accordance with generally accepted accounting principles;
(viii) all professional fees incurred in connection with the operation,
management and maintenance of the Property; and (ix) Taxes, as hereinafter
defined.

       3.1.2.        TAXES. The term "TAXES," as referred to in SECTION
                     3.1.1(ix) above shall mean (i) all governmental taxes,
                     assessments, fees and charges of every kind or nature
                     (other than Landlord's income taxes), whether general,
                     special, ordinary or extraordinary, due at any time or from
                     time to time, during the Term and any extensions thereof,
                     in connection with the ownership, leasing, or operation of
                     the Property, or of the personal property and equipment
                     located therein or used in connection therewith; and (ii)
                     any reasonable expenses incurred by Landlord in contesting
                     such taxes or assessments and/or the assessed value of the
                     Property. For purposes hereof, Taxes for any year shall be
                     Taxes that are due for payment or paid in that year rather
                     than Taxes that are assessed, become a lien, or accrue
                     during such year.

       3.1.3.        OPERATING YEAR. The term "OPERATING YEAR" shall mean the
       calendar year commencing January lst of each year (including the calendar
       year within which the Commencement Date occurs) during the Term.

       3.2.     PAYMENT OF OPERATING: EXPENSES. Tenant shall pay, as Additional
Rent and in accordance with the requirements of Section 3.3, its Proportionate
Share of the Operating Expenses as set forth in SECTION 3.3. Additional Rent
commences to accrue upon the Commencement Date. The Tenant's Proportionate Share
of Operating Expenses payable hereunder for the Operating Years in which the
Term begins and ends shall be prorated to correspond to that portion of said
Operating Years occurring within the Term. Tenant's Proportionate Share of
Operating Expenses and any other sums due and payable under this Lease shall be
adjusted upon receipt of the actual bills therefor, and the obligations of this
SECTION 3 shall survive the termination or expiration of the Lease.

       3.3.     PAYMENT OF ADDITIONAL RENT. Landlord shall have the right to
reasonably estimate the Operating Expenses for each Operating Year. Upon
Landlord's or Agent's notice to Tenant of such estimated amount, Tenant shall
pay, on the first day of each month during that Operating Year, an amount (the
"ESTIMATED ADDITIONAL RENT") equal to the estimate of the Tenant's Proportionate
Share of Operating Expenses divided by 12 (or the fractional portion of the
Operating Year remaining at the time Landlord delivers its notice of estimated
Operating Expenses

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due from Tenant for that Operating Year). If the aggregate amount of Estimated
Additional Rent actually paid by Tenant during any Operating Year is less than
Tenant's actual ultimate liability for Operating Expenses for that particular
Operating Year, Tenant shall pay the deficiency within 30 days of Landlord's
written demand therefor. If the aggregate amount of Estimated Additional Rent
actually paid by Tenant during a given Operating Year exceeds Tenant's actual
liability for such Operating Year, the excess shall be credited against the
Estimated Additional Rent next due from Tenant during the immediately subsequent
Operating Year, except that in the event that such excess is paid by Tenant
d1iri11g the final Lease Year, then upon the expiration of the Term, Landlord or
Agent shall pay Tenant the then-applicable excess within 30 days after
determination thereof No interest shall be payable to Tenant on account of such
payments of Estimated Additional Rent and such payments may be commingled.

       4.       USE OF PREMISES AND COMMON AREAS: SECURITY DEPOSIT.

       4.1.     USE OF PREMISES AND PROPERTY. The Premises shall be used by the
Tenant for the purpose(s} set forth in SECTION 1.7 above and for no other
purpose whatsoever. Tenant shall not, at any time, use or occupy, or suffer or
permit anyone to use or occupy, the Premises, or do or permit anything to be
done in the Premises or the Property , in any manner that may (a) violate any
Certificate of Occupancy for the Premises or the Property; (b ) cause, or be
liable to cause, injury to, or in any way impair the proper utilization of, all
or any portion of the Property (including, but not limited to, the structural
elements of the Property) or any equipment, facilities or systems therein; ( c )
constitute a violation of the laws and requirements of any public authority or
the requirements of insurance bodies or the rules and regulations of the
Property , including any covenant, condition or restriction affecting the
Property; (d) exceed the load bearing capacity of the floor of the Premises; (e)
impair or tend to impair the character, reputation or appearance of the
Property; or ( e) unreasonably annoy, inconvenience or disrupt the operations or
tenancies of other tenants or users of the Property.

       4.2.     USE OF COMMON AREAS. As used herein, "COMMON AREAS" shall mean
all areas within the Property that are available for the common use of tenants
of the Property and that are not leased or held for the exclusive use of Tenant
or other tenants or licensees, including, but not limited to, parking areas,
driveways, sidewalks, loading areas, access roads, corridors, landscaping and
planted areas. Tenant shall have the nonexclusive right to use the Common Areas
for the purposes intended, subject to such reasonable rules and regulations as
Landlord may uniformly establish from time to time. Tenant shall not interfere
with the rights of any or all of Landlord, other tenants or licensees, or any
other person entitled to use the Common Areas. Landlord, from time to time, may
change any or all of the size, location, nature and use of any of the Common
Areas although such changes may result in inconvenience to Tenant, so long as
such changes do not materially and adversely affect Tenant's use of the
Premises. In addition to the foregoing, Landlord may, at any time, close or
suspend access to any Common Areas to perform any acts in the Common Areas as,
in Landlord's reasonable judgment, are desirable to improve or maintain either
or both of the Premises and the Property, or are required in order to satisfy
Landlord's obligations under either or both of SECTIONS 13.2 AND 18; provided,
however, that Landlord shall use reasonable efforts not to disrupt Tenant's use
and operation of the Premises in connection therewith.

       4.3.     SIGNAGE. Tenant shall not affix any sign of any size or
character to any portion of the Property, without prior written approval of
Landlord, which approval shall not be unreasonably withheld or delayed. Tenant
shall remove all signs of Tenant upon the expiration or earlier termination of
this Lease and immediately repair any damage to either or both of the Property
and the Premises caused by, or resulting from, such removal.

       4.4.     SECURITY DEPOSIT. Simultaneously with the execution and delivery
of this Lease, Tenant shall deposit with Landlord or Agent the sum set forth in
Section 1.10 above, in cash (the

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"SECURITY"), representing security for the performance by Tenant of the
covenants and obligations hereunder. The Security shall be held by Landlord or
Agent, without interest, in favor of Tenant; provided, however, that no trust
relationship shall be deemed created thereby and the Security may be commingled
with other assets of Landlord. If Tenant defaults in the performance of any of
its covenants hereunder, Landlord or Agent may, without notice to Tenant, apply
all or any part of the Security, to the extent required for the payment of any
Rent or other sums due from Tenant hereunder, in addition to any other remedies
available to Landlord. If such application occurs, Landlord shall so advise
Tenant, in writing, promptly following such application. In the event the
Security is so applied, Tenant shall, upon demand, immediately deposit with
Landlord or Agent a sum equal to the amount so used. If Tenant fully and
faithfully complies with all the covenants hereunder, the Security (or any
balance thereof) shall be returned to Tenant within 30 days after the last to
occur of (i) the date the Term expires or terminates or (ii) delivery to
Landlord of possession of the Premises. Landlord may deliver the Security to any
purchaser of Landlord' s interest in the Premises [or any Successor Landlord (
defined below), if applicable], and thereupon Landlord and Agent shall be
discharged from any further liability with respect to the Security.
Notwithstanding the foregoing, in the event that Tenant does not default on any
of its obligations hereunder between the date of this Lease and May 31, 2002,
then on May 31,2002 the Security shall reduce to an amount equal to the product
of (x) two (2) and (y) the then current monthly amount of Base Rent and
Additional Rent payable hereunder.

5.     CONDIT1ON AND DELIVERY OF PREMISES.

       5.1.     CONDITION OF PREMISES. Tenant agrees that Tenant is familiar
with the condition of both the Premises and the Property, and Tenant hereby
accepts the foregoing on an "AS-IS," "WHERE-IS" basis. Tenant acknowledges that
neither Landlord nor Agent, nor any representative of Landlord, has made any
representation as to the condition of the foregoing or the suitability of the
foregoing for Tenant's intended use. Tenant represents and warrants that Tenant
has made its own inspection of the foregoing. Neither Landlord nor Agent shall
be obligated to make any repairs, replacements or improvements (whether
structural or otherwise) of any kind or nature to the foregoing in connection
with, or in consideration of, this Lease, except (a) as set forth in Sections
13.2 and 18 and (b) with respect to all (if any) repairs and improvements
expressly and specifically described in EXHIBIT B attached hereto ("WORK
ITEMS"). Landlord agrees to make reasonable efforts to enforce, or cause Agent
to enforce, upon Tenant ' s request, all manufacturer's or contractor's
warranties, if any, issued in connection with any of the Work Items.

       5.2.     EARLY OCCUPANCY. Notwithstanding anything to the contrary
contained herein, Tenant shall be permitted to take possession of and occupy the
Premises at any time after the date of this Lease and prior to the Commencement
Date (the "EARLY OCCUPANCY PERIOD"); provided, however, that Tenant's occupancy
of the Premises during the Early Occupancy Period shall be on all of the terms
and conditions of this Lease except that Tenant shall not be obligated to pay
Rent during the Early Occupancy Period.

6.              SUBORDINATION:  NOTICES TO SUPERIOR LESSORS AND MORTGAGEES:
ATTORNMENT .

       6.1.     SUBORDINATION. Provided that Tenant is provided with a
reasonable and customary subordination, nondisturbance and attornment agreement
duly executed by the holder of any mortgage or deed of trust or the landlord
pursuant to any ground lease, this Lease shall be subject and subordinate at all
times to (a) all ground leases or underlying leases that may now exist or
hereafter be executed affecting either or both of the Premises and the Property
and (b) any mortgage or deed of trust that may now exist or hereafter be placed
upon, and encumber, any or all of (x) the Property; (y) any ground leases or
underlying leases for the benefit of the Property; and (z) all or any portion of
Landlord's interest or estate in any of said items. Notwithstanding the
foregoing, Landlord shall have the right to subordinate or cause to be
subordinated any such

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ground leases or underlying leases that benefit the Property or any such
mortgage or deed of trust liens to this Lease. Tenant shall execute and deliver,
upon demand by Landlord and in the form reasonably requested by Landlord, any
additional documents evidencing the priority of subordination of this Lease with
respect to any such ground leases or underlying leases for the benefit of the
Property or any such mortgage or deed of trust. .

       6.2.     ESTOPPEL CERTIFICATES. Tenant agrees, from time to time and
within 10 days after request by Landlord, to deliver to Landlord, or Landlord' s
designee, an estoppel certificate stating such matters pertaining to this Lease
as may be reasonably requested by Landlord. Failure by Tenant to timely execute
and deliver such certificate shall constitute an acceptance of the Premises and
acknowledgment by Tenant that the statements included therein are true and
correct without exception. Landlord and Tenant intend that any statement
delivered pursuant to this section may be relied upon by any prospective
purchaser or mortgagee of the Property or of any interest therein or any other
Landlord designee.

       6.3.     TRANSFER FOR LANDLORD. In the event of a sale or conveyance by
Landlord of the Property, the same shall operate to release Landlord from any
future liability for any of the covenants or conditions, express or implied,
herein contained in favor of Tenant, and in such event Tenant agrees to look
solely to Landlord's successor in interest with respect thereto and agrees to
attorn to such successor.

       7.       QUIET ENJOYMENT. Subject to the provisions of this Lease, so
long as Tenant pays all of the Rent and performs all of its other obligations
hereunder, Tenant shall not be disturbed in its possession of the Premises by
Landlord, Agent or any other person lawfully claiming through or under Landlord.
This covenant shall be construed as a covenant running with the Property and is
not a personal covenant of Landlord. Notwithstanding the foregoing, however,
Tenant acknowledges and agrees that Landlord shall have the unfettered and
unilateral right to use portions of the Common Areas (inclusive of the roof of
the Building) for such purposes and uses as Landlord may desire; provided,
however, that in all events and under all circumstances, Landlord's use of any
portion of the Common Areas shall not interfere, in any material respect, with
any or all of (a) Tenant's rights to occupy and use the Common Areas (in the
manner and for the purposes contemplated hereunder); (b) Tenant's right to
utilize the vehicular parking areas located on the Common Areas; and (c)
Tenant's right of access, ingress and egress to and from the Common Areas.

       8.       ASSIGNMENT. SUBLETTING AND MORTGAGING.

                8.1.    PROHIBITION. Tenant acknowledges that this Lease and the
       Rent due under this Lease have been agreed to by Landlord in reliance
       upon Tenant's reputation and creditworthiness and upon the continued
       operation of the Premises by Tenant for the particular use. described in
       SECTION 4 above; therefore, Tenant shall not, whether voluntarily, or by
       operation of law, or otherwise: (a) assign or otherwise transfer this
       Lease; (b) sublet the Premises or any part thereof, or allow the same to
       be used or occupied by anyone other than Tenant; or (c) mortgage, pledge,
       encumber, or otherwise hypothecate this Lease or the Premises, or any
       part thereof, in any manner whatsoever, without in each instance
       obtaining the prior written consent of Landlord, which consent may be
       given or withheld in Landlord's sole, but reasonable, discretion. Any
       purported assignment, mortgage, transfer, pledge or sublease made without
       the prior written consent of Landlord shall be absolutely null and void.
       No assignment of this Lease shall be effective and valid unless and until
       the assignee executes and delivers to Landlord any and all documentation
       reasonably required by Landlord in order to evidence assignee's
       assumption of all obligations of Tenant hereunder. Any consent by
       Landlord to a particular assignment, sublease or mortgage shall not
       constitute consent or approval of any subsequent assignment, sublease or
       mortgage, and Landlord' s written approval shall be required in all

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       such instances. No. consent by Landlord to any assignment or sublease
       shall be deemed to release Tenant from its obligations hereunder and
       Tenant shall remain fully liable for performance of all obligations under
       this Lease.

       8.2.     RIGHTS OF LANDLORD. If this Lease is assigned, or if the
Premises (or any part thereof) are sublet or used or occupied by anyone other
than Tenant, whether or not in violation of this Lease, Landlord or Agent may
(without prejudice to, or waiver of its rights), collect Rent from the assignee,
subtenant or occupant. Landlord or Agent may apply the net amount collecte4 to
the Rent herein reserved, but no such assignment, subletting, occupancy or
collection shall be deemed a waiver of any of the provisions of this SECTION 8.
With respect to the allocable portion of the Premises sublet, in the event that
the total rent and any other considerations received under any sublease by
Tenant is greater than the total Rent required to be paid, from time to time,
under this Lease. Tenant shall pay to Landlord fifty percent (50%) of such
excess as received from any subtenant and such amount shall be deemed a
component of the Additional Rent.

       8.3.     PERMITTED TRANSFERS. The provisions of SECTION 8.1(a) shall
apply to a transfer of a majority (I.E. greater than 50% interest) of the voting
stock of Tenant or to any other change in voting control of Tenant (if Tenant is
a corporation), or to a transfer of a majority of the general partnership or
membership interests in Tenant (if Tenant is a partnership or a limited
liability company) or to a change in the managerial control of Tenant, or to any
comparable transaction involving any other form of business entity, whether
effectuated in one or more transactions, as if such transfer were an assignment
of this Lease; but said provisions shall not apply to such a transfer, provided,
in any of such events, the successor to Tenant (or any party remaining liable
for the obligations of Tenant hereunder): (i) has a net worth at least equal to
the net worth of Tenant as of the Commencement Date or (ii) is capable of
satisfying Tenant's obligations hereunder. in Landlord's reasonable judgment.
Any such permitted transferee shall execute and deliver to Landlord any and all
documentation reasonably required by Landlord in order to evidence assignee's
assumption of all obligations of Tenant hereunder. Notwithstanding anything to
the contrary contained in this Section 8.3, in no event may Tenant assign,
mortgage, transfer, pledge or sublease this Lease to any entity whatsoever if,
at the time of such assignment, mortgage, transfer, pledge or sublease, Tenant
is in default under this Lease.

       9.       COMPLIANCE WITH LAWS.

       9.1.     COMPLIANCE WITH LAWS. Tenant shall, at its sole expense
(regardless of the cost thereof), comply with all local, state and federal laws,
rules, regulations and requirements now or hereafter in force and all judicial
and administrative decisions pertaining thereto (collectively, "LAWS"),
pertaining to either or both of the Premises and Tenant's use and occupancy
thereof. If any license or permit is required for the conduct of Tenant's
business in the Premises, Tenant, at its expense, shall procure such license
prior to the Commencement Date, and shall maintain such license or permit in
good standing throughout the Term. Tenant shall give prompt notice to Landlord
of any written notice it receives of the alleged violation of any law or
requirement of any governmental or administrative authority with respect to
either or both of the Premises and the use or occupation thereof. The judgment
of any court of competent jurisdiction or the admission of Tenant in any action
or proceeding against Tenant, whether Landlord is a party thereto or not, that
any such Law pertaining to the Premises has been violated, shall be conclusive
of that fact as between Landlord and Tenant.

       9.2.     HAZARDOUS MATERIALS. If, at any time or from time to time during
the Term (or any extension thereof), any Hazardous Material (defined below) is
generated, transported, stored, used, treated or disposed of at, to, from, on or
in either or both of the Premises and the Property by, or as a result of any act
or omission of, any or all of Tenant and any or all of Tenant's Parties (defined
below): (i) Tenant shall, at its own cost, at all times comply (and cause all
others to comply) with all laws (federal, state or local) relating to Hazardous
Materials, including, but not limited to, all Environmental Laws (defined
below), and

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Tenant shall further, at its own cost, obtain and maintain in full force and
effect at all times all permits and other approvals required in connection
therewith; (ii) Tenant shall promptly provide Landlord or Agent with complete
copies of all communications, permits or agreements with, from or issued by any
governmental authority or agency (federal, state or local) or any private entity
relating i~ any way to the presence, release, threat of release, or placement of
Hazardous Materials on or in the Premises or any portion of the Property , or
the generation, transportation, storage, use, treatment, or disposal at, on, in
or from the Premises, of any Hazardous Materials; (iii) Landlord, Agent and
their respective agents and employees shall have the right to either or both (x)
enter the "Premises and (y) conduct appropriate tests for the purposes of
ascertaining Tenant's compliance with all applicable laws (including
Environmental Laws), rules or permits relating in any way to the generation,
transport, storage, use, treatment, disposal or presence of Hazardous Materials
on, at, in or from all or any portion of either or both of the Premises and the
Property; and (iy) upon written request by Landlord or Agent, Tenant shall
provide Landlord with the results of reasonably appropriate tests of air, water
or soil to demonstrate that Tenant complies with all applicable laws, rules or
permits relating in any way to the generation, transport, storage, use,
treatment, disposal or presence of Hazardous Materials on, at, in or from all or
any portion of either or both of the Premises and the Property .This SECTION 9.2
does not authorize the generation, transportation, storage, use, treatment or
disposal of any Hazardous Materials at, to, from, on or in the Premises in
contravention of this SECTION 9. Tenant covenants to investigate, clean up and
otherwise remediate, at Tenant's sole expense, any release of Hazardous
Materials caused, contributed to, or created by any or all of (A) Tenant and (B)
any or all of Tenant's officers, directors, members, managers, partners,
invitees, agents, employees, contractors or representatives ("TENANT PARTIES")
during the Term. Such investigation and remediation shall be performed only
after Tenant has obtained Landlord's prior written consent; provided, however,
that Tenant shall be entitled to respond immediately to an emergency without
first obtaining such consent. All remediation shall be performed in strict
compliance with Environmental Laws and to the reasonable satisfaction of
Landlord. Tenant shall be liable for any and all conditions covered hereby, and
for all costs relating thereto, that are caused or created by any or all of
Tenant and any or all of Tenant's Parties. Tenant shall not enter into any
settlement agreement, consent decree or other compromise with respect to any
claims relating to any Hazardous Materials in any way connected to the Premises
without first obtaining Landlord's written consent (which consent may be given
or withheld in Landlord's sole, but reasonable, discretion) and affording
Landlord the reasonable opportunity to participate in any such proceedings. As
used herein, the term (x) "ENVIRONMENTAL LAWS" shall mean any and all laws
pertaining to Hazardous Materials or that otherwise deal with, or relate to, air
or water quality, air emissions, soil or ground conditions or other
environmental matters of any kind; and (y) "HAZARDOUS MATERIALS" shall mean any
waste, material or substance (whether in the form of liquids, solids or gases,
and whether or not airborne) that is or may be deemed to be or include a
pesticide, petroleum, asbestos, polychlorinated biphenyl, radioactive material,
urea formaldehyde or any other pollutant or contaminant that is or may be deemed
to be hazardous, toxic, ignitable, reactive, corrosive, dangerous, harmful or
injurious, or that presents a risk to public health or to the environment, and
that is or becomes regulated by any Environmental Law. The undertakings,
covenants and obligations imposed on Tenant under this SECTION 9.2 shall survive
the termination or expiration of this Lease.

       10.      INSURANCE.

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       10.1.    INSURANCE TO BE MAINTAINED BY LANDLORD. Landlord shall maintain
(a) "all-risk" property insurance covering the Property (at its full replacement
cost), but excluding Tenant's Property (defined below), and (b) commercial
general public liability insurance covering Landlord for claims arising out of
liability for bodily injury, death, personal injury, advertising injury and
property damage occurring in and about the Property and otherwise resulting from
any acts and operations of Landlord, its agents and employees, and ( c ) rent
loss insurance (collectively; "LANDLORD'S POLICIES"), all of the above with
limits that are required by any lender(s) of Landlord, or as are otherwise
reasonably determined by Landlord, but in any event, without prejudice to the
foregoing, shall be no less than $2,000,000.00 per occurrence and $5,000,000 or
general aggregate for general liability exposure.

       10.2.    INSURANCE TO BE MAINTAINED BY TENANT. Tenant shall purchase, at
its own expense, and keep in force at all times during this Lease the policies
of insurance set forth below in SECTIONS 10.2.1 and 10.2.2 (collectively
"TENANT'S POLICIES"). All Tenant's Policies shall (a) be issued by an insurance
company with a Best rating of A-X or better and otherwise reasonably acceptable
to Landlord and shall be licensed to do business in the state in which the
Property is located; (b) provide that said insurance shall not be canceled or
materially modified unless 30 days' prior written notice shall have been given
to Landlord; and (c) otherwise be in such form, and include such coverages, as
Landlord may reasonably require. All Tenant's Policies (or, at Landlord's
option, Certificates of Insurance, in a form reasonably acceptable to, Landlord,
evidencing said Tenant's Policies), shall be delivered to Landlord by Tenant
upon commencement of the Lease and renewals thereof shall be delivered at least
30 days prior to the expiration of each Tenant's Policy. Tenant shall give
prompt notice to Landlord and Agent of any bodily injury, death, personal
injury, advertising injury or property damage occurring in and about the
Property.

       10.2.1.  GENERAL LIABILITY AND AUTO INSURANCE. Tenant shall purchase and
maintain, throughout the Term, a Tenant's Policy(ies) of (i) commercial general
liability insurance, including personal injury and property damage, in the
amount of not less than $2,000,.000.00 per occurrence, and $5,000,000.00 annual
general aggregate, per location; (ii) comprehensive automobile liability
insurance covering Tenant against any losses arising out of liability for
personal injuries or deaths of persons and property damage occurring in or about
the Premises in the amount of not less than $1,000,000, combined single limit.
The Tenant's Policies required by this SECTION 10.2.1 shall (a) name Landlord,
Agent, and any party holding an interest to which this Lease may be subordinated
as additional insureds; (b) provide coverage on an occurrence basis; (c) provide
coverage for the indemnity obligations of Tenant under this Lease; (d) contain a
severability of insured parties provision and/or a cross liability endorsement;
( e) be primary , not contributing with, and not in excess of, coverage that
Landlord may carry; and (f) provide coverage with no exclusion for a pollution
incident arising from a hostile fire.

       10.2.2.  PROPERTY AND WORKERS' COMPENSATION INSURANCE. Tenant shall
purchase and maintain, throughout the Term, a Tenant's Policy or Policies of (i)
"all-risk" property insurance covering Tenant's Property (at its full
replacement cost), and damage to other property resulting from any acts or
operations of Tenant, and (ii) workers' compensation insurance per the
applicable state statutes covering all employees of Tenant.

       10.3.    WAIVER OF SUBROGATION. To the extent permitted by law, and
without affecting the coverage provided by insurance required to be maintained
hereunder, Landlord and Tenant each waive any right to recover against the other
for (a) damages to property, (b) damages to all or any portion of either or both
of the Premises and the Property,( c) claims arising by reason of the foregoing,
to the extent such damages and claims are insured against, or required to be
insured against, by Landlord or Tenant under this Lease, or (d) claims paid by
Tenant's workers'

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compensation carrier. This provision is intended to waive, fully and for the
benefit of each party, any rights and/or claims which might give rise to a right
of subrogation by any insurance carrier. The coverage obtained by each party
pursuant to this Lease shall include, without limitation, a waiver of
subrogation by the carrier which conforms to the provisions of this section.

       11.      ALTERATIONS.

       11.1.    PROCEDURAL REQUIREMENTS. Tenant may, from time to time, at its
expense, make alterations or improvements in and to the Premises (hereinafter
collectively referred to as "ALTERATIONS"), provided that Tenant first obtains
the written consent of Landlord in each instance. Landlord's consent to
Alterations shall not be unreasonably withheld, provided that: (a) the
Alterations are non-structural and the structural integrity of the Property
shall not be affected; (b) the Alterations are to the interior of the Premises;
( c) the proper functioning of the mechanical, electrical, heating, ventilating,
air-conditioning ("HVAC"), sanitary and other service systems of the Property
shall not be affected and the usage of such systems by Tenant shall not be
increased; (d) the Alterations have no adverse effect on other leased premises
in the Property; (e) Tenant shall have appropriate insurance coverage,
reasonably satisfactory to Landlord, regarding the performance and installation
of the Alterations; (f) the Alterations shall conform with all other
requirements of this Lease; and (g) Tenant shall have provided Landlord with
reasonably detailed plans for such Alterations in advance of requesting
Landlord's consent. Additionally, before proceeding with any Alterations, Tenant
shall (i) at Tenant's expense, obtain all necessary governmental permits and
certificates for the commencement and prosecution of Alterations; (ii) submit to
Agent, for Landlord's written approval, working drawings, plans and
specifications and all permits for the work to be done and Tenant shall not
proceed with such Alterations until it has received said approval; and (iii)
cause those contractors, materialmen and suppliers engaged to perform the
Alterations to deliver to Landlord certificates of insurance (in a form
reasonably acceptable to Landlord) evidencing policies of commercial general
liability insurance (providing the same coverages as required in SECTION 10.2(i)
above) and workers' compensation insurance. Such insurance policies shall
satisfy the obligations imposed under SECTION 10.2(a) through (d) and (f)
through (i). After obtaining Landlord's approval to the Alterations, Tenant
shall give Landlord at least five days' prior written notice of the commencement
of any Alterations at the Premises, and Landlord may elect to record and post
notices of non-responsibility at the Premises~

       11.2.    PERFORMANCE OF ALTERATIONS. Tenant shall cause the Alterations
to be performed in compliance with all applicable permits, laws and requirements
of public authorities, and with Landlord's reasonable rules and regulations or
any other restrictions that Landlord or Agent may impose on the Alterations.
Tenant shall cause the Alterations to be diligently performed in a good and
workmanlike manner, using new materials and equipment at least equal in quality
and class to the standards for the Property established by Landlord or Agent.
Tenant shall obtain all necessary pem1its and certificates for final
governmental approval of the Alterations and shall provide Landlord with "as
built" plans, copies of all construction contracts, governmental permits and
certificates and proof of payment for all labor and materials, including,
without limitation, copies of paid invoices and final lien waivers.

       11.3.    LIEN PROHIBITION. Tenant shall pay when due all claims for labor
and material furnished to the Premises in connection with the Alterations.
Tenant shall not pemit any mechanics or materialmen's liens to attach to the
Premises or the Property. Tenant, at its expense, shall procure the satisfaction
or discharge of record of all such liens and encumbrances within 30 days after
the filing thereof; or, within such thirty (30) day period, Tenant shall provide
Landlord, at Tenant's sole expense, with endorsements (satisfactory, both in
form and substance, to Landlord and the holder of any mortgage or deed of trust)
to the existing title insurance policies of Landlord and the holder of any
mortgage or deed of trust, insuring against the existence of, and any attempted
enforcement of, such lien. In the event Tenant has not so performed, Landlord
may, at its option; pay and discharge such liens and Tenant shall be responsible
to reimburse Landlord, on demand and as

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Additional Rent under this Lease, for all costs and expenses incurred in
connection therewith, together with interest thereon at the rate set forth in
Section 22.3, which expenses shall include reasonable fees of attorneys of
Landlord's choosing, and any costs in posting bond to effect discharge or
release of the lien as an encumbrance against the Premises or the Property .

       12.      LANDLORD'S AND TENANT'S PROPERTY.

       12.1.    LANDLORD'S PROPERTV. Subject to Section 12.2, all fixtures,
machinery, equipment, improvements and appurtenances attached to, or built into,
the Premises at the commencement of, or during the Term, whether or not placed
there by or at the expense of Tenant, shall become and remain a part of the
Premises; shall be deemed the property of Landlord (the "Landlord's Property"),
without compensation or credit to Tenant; and shall not be removed by Tenant at
the Expiration Date unless Landlord requests their removal. Further, any
personal property in the Premises on the Commencement Date, movable or
otherwise, unless installed and paid for by Tenant, shall be and shall remain
the property of Landlord and shall not be removed by Tenant. In no event shall
Tenant remove any of the following materials or equipment without Landlord's
prior written consent (which consent may be given or withheld in Landlord's sole
discretion): any power wiring or power panels, lighting or lighting fixtures,
wall or window coverings, carpets or other floor coverings, heaters, air
conditioners or any other HV AC equipment, fencing or security gates, or other
similar building operating equipment and decorations.

       12.2.    TENANT'S PROPERTV. All movable non-structural partitions,
business and trade fixtures, machinery and equipment, communications equipment
and office equipment that are installed in the Premises by, or for the account
of, Tenant and without expense to Landlord and that can be removed without
structural damage to the Property, and all furniture, furnishings and other
articles of movable personal property owned by Tenant and located in the
Premises (collectively, the "Tenant's Property") shall be and shall remain the
property of Tenant and may be removed by Tenant at any time during the Term,
provided Tenant repairs or pays the cost of repairing any damage to the Premises
or to the Property resulting from the installation and/or removal thereof. At or
before the Expiration Date, or the date of any earlier termination, Tenant, at
its expense, shall remove from the Premises all of Tenant's Property and any
Alterations (except such items thereof as constitute Landlord's Property; or as
Landlord shall have expressly permitted, in writing, to remain, which property
shall become the property of Landlord), and Tenant shall repair (to Landlord's
reasonable satisfaction) any damage to the Premises or the Property resulting
from any installation and/or removal of Tenant's Property. Any other items of
Tenant's Property that shall remain in the Premises after the Expiration Date,
or following an earlier termination date, may, at the option of Landlord, be
deemed to have been abandoned, and in such case, such items may be retained by
Landlord as its property or be disposed of by Landlord, in Landlord's sole and
absolute discretion and without accountability, at Tenant's expense.
Notwithstanding the foregoing, if Tenant is in default under the terms of this
Lease, it may remove Tenant's Property from the Premises only upon the express
written direction of Landlord.

       13.      REPAIRS AND MAINTENANCE.

       13.1.    TENANT REPAIRS AND MAINTENANCE. Tenant shall, at its expense,
throughout the Term, (i) maintain and preserve, in first-class condition
(subject to normal and customary wear and tear), the Premises and the fixtures
and appurtenances therein (including, but not limited to, the Premises' plumbing
and HV AC systems, all doors, overhead or otherwise, glass and levelers located
in the Premises or otherwise available in the Property for Tenant's sole use;
and excluding, however, those components of the Premises for which Landlord is
expressly responsible under Section 13.2); and (ii) maintain, in full force and
effect, a preventative maintenance and service contract with a reputable
'service provider for maintenance of the HV AC systems of the Premises. Tenant
shall also be responsible for all cost and expenses incurred to perform any and
all repairs and replacements (whether structural or non-structural; interior or
exterior; and ordinary or extraordinary), in and to the Premises and the
Property and the facilities and systems thereof, if and

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to the extent that the need for such repairs or replacements arises directly or
indirectly from any or all of: (a) the performance or existence of any
Alterations, (b) the installation, use or operation of Tenant's Property in the
Premises, (c) the moving of Tenant's Property in or out of the Property, and (d)
any act, omission, misuse, or neglect of Tenant, any of its subtenants, or
others entering into the Premises by act or omission of Tenant or any subtenant.
Any repairs or replacements required to be made by Tenant to any or all of the
structural components of the property and the :mechanical, electrical, sanitary;
HVAC, or other systems of the Property or Premises shall be performed by
appropriately licensed contractors approved by Landlord, which approval shall
not be unreasonably withheld. All such repairs or replacements shall be subject
to the supervision and control of Landlord, and all repairs and replacements
shall be made with materials of equal or better quality than the items being
repaired or replaced.

       13.2.    LANDLORD REPAIRS. Notwithstanding anything contrary herein,
Landlord shall repair, replace and restore the foundation, exterior and interior
load-bearing walls, roof structure and roof covering and tuckpointing of the
Property; provided, however, that (i) all costs and expenses so incurred by
Landlord to repair, replace and restore the above items shall constitute
Operating Expenses; provided, however, that with respect to any costs incurred
in the replacement context, those costs shall not constitute an Operating
Expense except to the extent that such costs so qualify under SECTION
3.1.1(vii); and (ii) notwithstanding (i) above, in the event that any such
repair, replacement or restoration is necessitated by any or all of the matters
set forth in Sections 13.1(a) through (d) above (collectively, "TENANT
NECESSITATED REPAIRS"), then Tenant shall be required to reimburse Landlord for
all costs and expenses that Landlord incurs in order to perform such Tenant
Necessitated Repairs, and such reimbursement shall be paid, in full, within 10
days after Landlord's delivery of demand therefor. Landlord agrees to commence
the repairs, replacements or restoration described in this SECTION 13.2 within a
reasonable period of time after receiving from Tenant written notice of the need
for such repairs.

       14.      UTILITIES. Tenant shall purchase all utility services from the
utility or municipality providing such service; shall provide for scavenger,
cleaning and extermination services; and shall pay for such services when
payments are due. Tenant shall be solely responsible for the repair arid
maintenance of any meters necessary in connection with such services. Tenant's
use of' electrical energy in the Premises shall not, at any time, exceed the
capacity of either or both of (i) any of the electrical conductors and equipment
in or otherwise servicing the Premises; and (ii) the HVAC systems of either or
both of the Premises and the Property.

       15.      INVOLUNTARY CESSATION OF SERVICES. Landlord reserves the right,
without any liability to Tenant and without affecting Tenant's covenants and
obligations hereunder, to stop service of any or all of the HV AC, electric,
sanitary, elevator (if any), and other systems serving the Premises, or to stop
any other services required by Landlord under this Lease, whenever and for so
long as may be necessary by reason of (i) accidents, emergencies, strikes, or
the making of repairs or changes which Landlord or Agent, in good faith, deems
necessary or (ii) any other cause beyond Landlord's reasonable control;
provided, however, except in the case of energy or other event beyond Landlord's
reasonable control, Landlord shall not stop any services required by Landlord
under this Lease without providing Tenant reasonable prior notice. Further, it
is also understood and agreed that Landlord or Agent shall have no liability or
responsibility for a cessation of services to the Premises or to the Property
that occurs as a result of causes beyond Landlord's or Agent's reasonable
control. No such interruption of service shall be deemed an eviction or
disturbance of Tenant's use and possession of the Premises or any part thereof,
or render Landlord or Agent liable to Tenant for damages, or relieve Tenant from
performance of Tenant's obligations under this Lease, including, but not limited
to, the obligation to. pay Rent; provided, however, that if any interruption of
services persists for a period in excess of five consecutive business days
Tenant shall, as Tenant's sole remedy, be entitled to a proportionate abatement
of Rent to the extent, if any, of any actual loss of use of the Premises by
Tenant.

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       16.      LANDLORD'S RIGHTS. Landlord, Agent and their respective agents,
employees and representatives shall have the right to enter and/or pass through
the Premises at any time or times upon reasonable prior notice (except in the
event of emergency): (a) to examine and inspect the Premises and to show them to
actual and prospective lenders, prospective purchasers or mortgagees of the
Property or providers of capital to Landlord and its affiliates; and (b ) to
make such repairs, alterations, additions and improvements in or to all or any
portion of either or both of the Premises and the Property, or the Property's
facilities and equipment as Landlord is required or desires to make. Landlord
and Agent shall be allowed to take all materials into and upon the Premises that
may be required in connection with any repairs, alterations, additions or
improvements, without any liability to Tenant and without any reduction or
modification of Tenant's covenants and obligations hereunder; provided, however,
that Landlord shall use reasonable efforts to avoid interference with Tenant's
business operations and Tenant's occupancy and use of the Premises. During the
period of six months prior to the Expiration Date (or at any time, if Tenant has
vacated or abandoned the Premises or is otherwise in default under this Lease),
Landlord and its agents may exhibit the Premises to prospective tenants.
Additionally, Landlord and Agent shall have the following rights with respect to
the Premises, exercisable without notice to Tenant, without liability to Tenant,
and without being deemed an eviction or disturbance of Tenant's use or
possession of the Premises or giving rise to any claim for setoff or abatement
of Rent: (i) to designate and approve, prior to installation, all types of
signs; (ii) to have pass keys, access cards, or both, to the Premises; and (iii)
to decorate, remodel, repair, alter or otherwise prepare the Premises for
reoccupancy at any time after Tenant vacates or abandons the Premises for more
than 30 consecutive days or with no intention of reoccupying the Premises.

       17.      NON-LIABILITY AND INDEMNIFICATION

       17 .1.   NON-LIABILITY. Except as provided in SECTION 17.2.2, none of
Landlord, Agent, any other managing agent, or their respective affiliates,
owners, partners, directors, officers, agents and employees shall be liable to
Tenant for any loss, injury, or damage, to Tenant - or to any other person, of
to its or their property, irrespective of the cause of such injury, damage or
loss. Further, except as provided in SECTION 17.2.2, none of Landlord, Agent,
any other managing agent, or their respective partners, directors, officers,
agents and employees shall be liable to Tenant (a) for any damage caused by
other tenants or persons in; upon or about the Property, or caused by operations
in construction of any public or quasi-public work; (b) with respect to matters
for which Landlord is liable, for consequential or indirect damages purportedly
arising out of any loss of use of the Premises or any equipment or facilities
therein by Tenant or any person claiming through or under Tenant; (c) any latent
defect in the Premises or the Property; ( d) injury or damage to person or
property caused by fire, or theft, or resulting from the operation of heating'
or air conditioning or lighting apparatus, or from falling plaster, or from
steam, gas, electricity, water, rain, snow, ice, or dampness, that may leak or
flow from any part of the Property, or from the pipes, appliances or plumbing
work of the same.

       17 .2.   INDEMNIFICATION.

       17 .2.1. TENANT INDEMNIFICATION. Tenant hereby indemnifies, defends, and
holds Landlord, Agent and their respective affiliates, owners, partners,
directors, officers, agents and employees (collectively, "LANDLORD INDEMNIFIED
PARTIES") harmless from and against any and all Losses (defined below) arising
from or in connection with any or all of: (a) the conduct or management of
either or both the Property and the Premises or any business therein, or any
work or Alterations done, or any condition created by any or all of Tenant and
Tenant's Parties in or about the Premises during the Term or during the period
of time, if any, prior to the Commencement Date that Tenant is given access to
the Premises; (b ) any act, omission or negligence of any or all of Tenant and
Tenant's Parties; (c) any accident, injury or damage whatsoever (unless caused
by Landlord's negligence) occurring in, at or upon either or both of the
Property and the Premises and caused by any or ail of Tenant and Tenant's
Parties; (d) any breach by Tenant of any of its warranties and representations
under this Lease; (e) any lawful actions necessary to protect

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Landlord' s interest under this Lease in a bankruptcy proceeding or other
proceeding under the Bankruptcy Code; (f) any violation or alleged violation by
any or all of Tenant and Tenant's Parties of any Law including, without
limitation, any Environmental Law; (g) any breach of the provisions of SECTION 9
by any or all of Tenant and Tenant's Parties; (h) claims for work or labor
performed or materials supplies furnished to or at the request of any or all of
Tenant and Tenant's Parties; (i) claims arising from any breach or default on
the part of Tenant in the performance of any covenant contained in this Lease;
G) any Hazardous Materials used, exposed, emitted, released, discharged,
generated, manufactured, sold, transported, handled, stored, treated, reused,
presented, disposed of or recycled in, at, near or under all or any portion of
the Premises as a result of the acts or omissions of any or all of Tenant and
Tenant's Parties; and (k) the violation of any Environmental Law or any permit,
application or consent required in connection with any Environmental Law by any
or all of Tenant and Tenant's Parties with respect to the Premises during the
Term, excluding, however, any violation of any Environmental Law resulting
directly from the acts or omissions of Landlord and Landlord's employees, agents
and contractors (collectively, "TENANT'S INDEMNIFIED MATTERS"). In case any
action or proceeding is brought against any or all of Landlord and the Landlord
Indemnified Parties by reason of any of Tenant's Indemnified Matters, Tenant,
upon notice from any or all of Landlord, Agent or any Superior party (defined
below), shall resist and defend such action or proceeding by counsel reasonably
satisfactory to, or selected by, Landlord. The term "LOSSES" shall mean all
claims, demands, expenses, actions, judgments, damages (actual, but not
consequential), penalties, fines, liabilities, losses of every kind and nature
(including, without limitation, property damage, diminution in value of
Landlord's interest in the premises or the Property, damages for the loss or
restriction on use of any space or amenity within the Premises or the Property ,
damages arising from any adverse impact on marketing space in the Property, sums
paid in settlement of claims and any costs and expenses associated with injury,
illness or death to or of any person), suits, administrative proceedings, costs
and fees, including, without limitation, attorneys' and consultants' reasonable
fees and expenses, and the costs of cleanup, remediation, removal and
restoration, that are in any way related to any matter covered by the foregoing
indemnity .The provisions of this SECTION 17.2.1 shall survive the expiration or
termination of this Lease.

       17.2.2.  LANDLORD INDEMNIFICATION. Landlord hereby indemnifies, defends
and holds Tenant harmless from and against any and all Losses actually suffered
or incurred by Tenant as the sole and direct result of any negligent, willful or
intentional acts or omissions of any or all of Landlord, Agent and any parties
within the direct and sole control of either or both of Landlord and Agent. In
the event that any action or proceeding is brought against Tenant, and the
foregoing indemnity is applicable to such action or proceeding, then Landlord,
upon notice from Tenant, shall resist and defend such action or proceeding by
counsel reasonably satisfactory to Tenant. Notwithstanding anything to the
contrary set forth in this Lease, however, in all events and under all
circumstances, the liability of Landlord .to Tenant shall be limited to the
interest of Landlord in the Property, and Tenant agrees to look solely to
Landlord's interest in the Property for the recovery of any judgment or award
against Landlord, it being intended that Landlord shall not be personally liable
for any judgment or deficiency. The provisions of this Section 17.2.2 shall
survive the expiration or termination of this Lease.

       17.3.    FORCE MAJEURE. The obligations of Tenant hereunder shall not be
affected, impaired or excused, and Landlord shall have no liability whatsoever
to Tenant, with respect to any act, event or circumstance arising out of (a)
Landlord' s failure to fulfill, or delay in fulfilling any of its obligations
under this Lease by reason of labor dispute, governmental preemption of property
in connection with a public emergency or shortages of fuel, supplies, or labor,
or any other cause, whether similar or dissimilar, beyond Landlord's reasonable
control; or (b ) any failure or defect in the supply, quantity or character of
utilities furnished to the Premises, or by reason of any requirement, act or
omission of any public utility or others serving the Property, beyond Landlord's
reasonable control.

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       17 .4.   LIMITATION. Notwithstanding anything to the contrary herein,
nothing in this Section 17 shall be deemed to exculpate Landlord from, or
indemnify Landlord for, Landlord' s negligent or willful acts or omissions.

       18.      DAMAGE OR DESTRUCTION.

       18.1.    NOTIFICATION AND REPAIR. Tenant shall give prompt notice to
Landlord and Agent of (a) any fire or other casualty to the Premises or the
Property, and (b) any damage to, or defect in, any part or appurtenance of the
Property's sanitary, electrical, HV AC, elevator or other systems located in or
passing through the Premises or any part thereof. Tenant shall be liable for any
claim, loss, damage, cost or expense resulting from Tenant's failure to give
Landlord the foregoing notice in a timely manner. Subject to the provisions of
SECTION 18.3 below, if either or both of the Property and the Premises is
damaged by fire or other insured casualty, Landlord shall repair (or cause Agent
to repair) the damage and restore and rebuild the Property and/or the Premises
(except for Tenant's Property) with reasonable dispatch after (x) notice to it
of the damage or destruction and (y) the adjustment of the insurance proceeds
attributable to such damage. Subject to the provisions of SECTION 18.3 below,
Tenant shall not be entitled to terminate this Lease and no damages,
compensation or claim shall be payable by Landlord for purported inconvenience,
loss of business or annoyance arising from any repair or restoration of any
portion of the Premises or of the Property pursuant to this Section. Landlord
(or Agent, as the case may be) shall use its diligent, good faith efforts to
make such repair or restoration promptly and in such manner as not to
unreasonably interfere with Tenant's use and occupancy of the Premises, but
Landlord or Agent shall not be required to do such repair or restoration work
except during normal business hours of business days.

       18.2.    RENTAL ABATEMENT. Provided that any damage to either or both -of
the Property and the Premises is not caused by, or the result of acts or
omissions by, any or all of Tenant and Tenant's Parties, if (a) the Property is
damaged by fire or other casualty thereby causing the Premises to be
inaccessible or (b) the Premises are partially damaged by fire or other
casualty, the Rent shall be proportionally abated to the extent of any actual
loss of use of the Premises by Tenant.

       18.3.    TOTAL DESTRUCTION. If the Property or the Premises shall be
totally destroyed by fire or other casualty, or if the Property shall be so
damaged by fire or other casualty that (in. the reasonable opinion of a
reputable contractor or architect designated by Landlord within 14 days after
such loss occurrence): (i) its repair or restoration requires more than 180 days
or (ii) such repair or restoration requires the expenditure of more than 50% of
the full insurable value of the Property immediately prior to the casualty or
(iii) the damage (x) is less than the amount stated in (ii) above, but more than
10% of the full insurable value of the Property; and (y) occurs during the last
two years of Lease Term, Landlord and Tenant shall each have the option to
terminate this Lease (by so advising the other, in writing) within 10 days after
said contractor or architect delivers written notice of its opinion to Landlord
and Tenant, but in all events prior to the commencement of any restoration of
the Premises or the Property by Landlord. In such event, the termination shall
be effective as of the date upon which either Landlord or Tenant, as the case
may be, receives timely written notice from the other terminating this Lease
pursuant to the preceding sentence. If neither Landlord nor Tenant timely
delivers a termination notice, this Lease shall remain in full force and effect.
Notwithstanding the foregoing, if (A) any holder of a mortgage or deed of trust
encumbering the Property or landlord pursuant to a ground lease encumbering the
Property (collectively, "SUPERIOR PARTIES") or other party entitled to the
insurance proceeds fails to make such proceeds available to Landlord in an
amount sufficient for restoration of the Premises or the Property, or (B) the
issuer of any casualty insurance policies on the Property fails to make
available to Landlord sufficient proceeds for restoration of the Premises or the
Property , then Landlord may, at Landlord' s sole option, terminate this Lease
by giving Tenant written notice to such effect within 30 days after Landlord
receives notice from the Superior Party or insurance company, as the case may
be, that such proceeds shall not be made available, in which event the
termination of this Lease shall be effective as of ~e date Tenant receives
written notice from Landlord of Landlord's

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election to terminate this Lease. Landlord shall have no liability to Tenant,
and Tenant shall not be entitled to terminate this Lease by virtue of any delays
in completion of repairs and restoration. For purposes of this SECTION 18.3
only, "FULL INSURABLE VALUE" shall mean replacement cost, less the cost of
footings, foundations and other structures below grade.

       18.4.    INSURANCE PROCEEDS. Landlord shall not be obligated to expend in
repairs and restoration an amount in excess of the proceeds of insurance
recovered with respect to any casualty. Tenant acknowledges that Landlord shall
be entitled to the full proceeds of any insurance coverage, whether carried by
Landlord or Tenant, for damage to either or both of the Premises and the
Property (excluding any proceeds for damage to Tenant's Property), but not for
any proceeds specifically designated for the interruption of Tenant's business.
In the event that either 9r both of the Premises and the Property are not
repaired or reconstructed, all proceeds of insurance (excluding any proceeds
covering Tenant's Property), whether carried by Landlord or Tenant, shall be
payable to Landlord. Landlord's duty to repair the Premises and the Property
(excluding Tenant's Property) is limited to repairing the Premises to the
condition existing immediately prior to such fire or other casualty.

       19.      EMINENT DOMAIN. If the whole, or any substantial (as reasonably
determined by Landlord) portion, of the Property is taken or condemned for any
public use under any Law or by right of eminent domain, or by private purchase
in lieu thereof, and such taking would prevent or materially interfere with the
Permitted Use of the Premises, this Lease shall terminate effective when the
physical taking of said Premises occurs. If less than a substantial portion of
the Property is so taken or condemned, or if the taking or condemnation is
temporary (regardless of the portion of the Property affected), this Lease shall
not terminate, but the Rent payable hereunder shall be proportionally abated to
the extent of any actual loss of use of the 'Premises by Tenant. Landlord shall
be entitled to any and all payment, income, rent or award, or any interest
therein whatsoever, which may be paid or made in connection with such a taking
or, conveyance, and Tenant shall have no claim against Landlord for the value of
any unexpired portion of this Lease. Notwithstanding the foregoing, any
compensation specifically and independently awarded to Tenant for loss of
business or goodwill, or for its personal property, shall be the property of
Tenant.

       20.      SURRENDER AND HOLDOVER. On the last day of the Term, or upon any
earlier termination of this Lease, or upon any re-entry by Landlord upon the
Premises, (a) Tenant shall quit and surrender the Premises to Landlord
"broom-clean" and in good order, condition and repair (as defined by EXHIBIT C,
attached hereto and incorporated herein by reference), except for ordinary wear
and tear and such damage or destruction as Landlord is required to repair or
restore under this Lease, (b) Tenant shall remove all of Tenant's Property
therefrom, except as otherwise expressly provided in this Lease, and (c) Tenant
shall surrender to Landlord any and all keys, access cards, computer codes or
any other items used to access the Premises. Pursuant to SECTIONS 16(a) and (b),
Landlord shall be permitted to inspect the Premises in order to verify
compliance with this SECTION 20 at any time prior to (x) the Expiration Date,
(y) the effective date of any earlier termination of this Lease, or (z) the
surrender date otherwise agreed to in writing by Landlord and Tenant. The
obligations imposed under the first sentence of this SECTION 20 shall survive
the termination or expiration of this Lease. If any repairs are required to be
performed in, to or at the Premises (pursuant to the first sentence of this
SECTION 20 or any other applicable provision of this Lease) upon the expiration
or termination of the Term, Tenant shall cause such repairs to be performed, to
Landlord's reasonable satisfaction, within 10 business days after the date on
which this Lease is terminated or expired. If Tenant fails to timely comply with
the preceding sentence, then Landlord shall have the right to cause the repairs
to be performed, at Tenant's expense, and all such expenses so incurred by
Landlord shall bear interest (at the rate specified in the second sentence of
SECTION 22.3) from the date the expense is incurred until the date paid, in
full, by Tenant (inclusive of interest). If Tenant remains in possession after
the Expiration Date hereof or after any earlier termination date of this Lease
or of Tenant's right to possession: (i) Tenant shall be deemed a tenant-at-will;
(ii) Tenant shall pay 150% of the aggregate of the Base Rent and

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Additional Rent last prevailing hereunder, and also shall pay all actual damages
sustained by Landlord, directly by reason of Tenant's remaining in possession
after the expiration or termination of this Lease; (iii) there shall be no
renewal or extension of this Lease by operation of law; and (iv) the
tenancy-at-will may be terminated by either party hereto upon 30 days' prior
written notice given by the terminating party to the non-terminating party .The
provisions of this SECTION 20 shall not constitute a waiver by Landlord of any
re-entry rights of Landlord provided hereunder or by law.

       21.      EVENTS OF DEFAULT.

       21.1.    BANKRUPTCY OF TENANT. It shall be a default by Tenant under this
Lease if Tenant makes an assignment for the benefit of creditors, or files a
voluntary petition under any state or federal bankruptcy or insolvency law, or
an involuntary petition alleging an act of bankruptcy or insolvency is filed
against Tenant under any state or federal bankruptcy or insolvency law that is
not dismissed within 90 days, or whenever a petition is filed by or against (to
the extent not dismissed within 90 days) Tenant under the reorganization
provisions of the United States Bankruptcy Code or under the provisions of any
law or like import, or whenever a petition shall be filed by Tenant under the
arrangement provisions of the United States Bankruptcy Code or similar law, or
whenever a receiver of Tenant, or of, or for, the property of Tenant shall be
appointed, or Tenant admits it is insolvent or is not able to pay its debts as
they mature.

       21.2.    DEFAULT PROVISIONS. Each of the following shall constitute a
default by Tenant under this Lease: (a) if Tenant fails to pay Rent or any other
payment when due hereunder within five days after written notice from Landlord
of such failure to pay on the due date; provided, however, that if in any
consecutive 12 month period, Tenant shall, on two (2) separate occasions, fail
to pay any installment of Rent on the date such installment of Rent is due,
then, on the third such occasion and on each occasion thereafter on which Tenant
shall fail to pay an installment of Relit on the date such installment of Rent
is due, Landlord shall be relieved from any obligation to provide notice to
Tenant, and Tenant shall then no longer have a five day period in which to cure
any such failure; or (b) if Tenant fails, whether by action or inaction, to
timely comply with, or satisfy, any or all of the obligations imposed on Tenant
under this Lease (other than the obligation to pay Rent) for a period of30 days
after Landlord's delivery to Tenant of written notice of such default under this
Section 21.2(b ); provided, however, that if the default cannot, by its nature,
be cured within such 30 day period, but Tenant commences and diligently pursues
a cure of such default promptly within the initial 30 day cure period, then
Landlord shall not exercise its remedies under Section 22 unless such default
remains uncured for more than 60 days after the initial delivery of Landlord's
original default notice.

       22.      RIGHTS AND REMEDIES.

       22.1.    LANDLORD'S CURE RIGHTS UPON DEFAULT OF TENANT. If Tenant
       defaults in the performance of any of its obligations under this Lease,
       Landlord, without thereby waiving such default, may (but shall not be
       obligated to) perform the same for the account, and at the expense of,
       Tenant upon compliance with any notice requirements and cure periods set
       forth in SECTION 21.2.

       22.2.    LANDLORD'S REMEDIES. In the event of any default by Tenant under
this Lease, Landlord, at its option, and after any applicable notice and cure
period (as required pursuant to SECTION 21.2), but without additional notice or
demand from Landlord, if any, as provided in SECTION 21.2 has expired, may, in
addition to all other rights and remedies provided in this Lease, or otherwise
at law or in equity: (a) terminate this Lease and Tenant's right of possession
of the Premises; or (b) terminate Tenant's right of possession of the Premises
without terminating this Lease; provided, however, that Landlord may, whether
Landlord elects to proceed under Subsections (a) or (b) above, relet the
Premises, or any part thereof for the account of Tenant, for such rent and term
and upon such terms and conditions as are acceptable to Landlord. In addition,

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for purposes of any reletting, Landlord is authorized to decorate, repair, alter
and improve the Premises to the extent deemed necessary by Landlord, in its
sole, but - reasonable, discretion. In the event of the termination of this
Lease by Landlord pursuant to (a) above, Landlord shall be entitled to recover
from Tenant (i) all damages and other sums that Landlord is entitled to recover
under any provision of this Lease or at law or in equity, including, but not
limited to, all fixed dollar amounts of Base Rent and Additional Rent accrued
and unpaid for the period up to and including such termination date; (ii) all
other additional sums payable by Tenant, or for which Tenant is liable, or in
respect of which Tenant has agreed to indemnify Landlord, under any of the
provisions of this Lease, that may be then owing and unpaid; (iii) all costs and
expenses (including, without limitation, court costs and attorneys' reasonable
fees) incurred by Landlord in the enforcement of its rights and remedies under
this Lease; and (iv) any damages provable by Landlord as a matter of law
including, without limitation, an amount equal to the positive difference, if
any, between (x) the DISCOUNTED PRESENT VALUE (AT 6% PER ANNUM) of the Base Rent
provided to be paid for the remainder of the Term (measured from the effective
termination date of this Lease) and (y) the fair market rental value of the
Leased Premises (determined at the date of termination of this Lease) after
deduction (from such fair market rental value) of the projected costs and
expenses of reletting the Premises (including the anticipated costs of repairs,
alterations, improvements, additions, legal fees and brokerage commissions) as
reasonably estimated by Landlord. If Landlord elects to pursue its rights and
remedies under Subsection (b) above, and the Premises are relet and a sufficient
sum is not realized therefrom, then to satisfy the payment, when due, of Base
Rent and Additional Rent reserved under the Lease for any monthly period (after
payment of all Landlord' s reasonable expenses of reletting), Tenant shall, in
Landlord's sole judgment, either (i) pay any such deficiency monthly or (ii) pay
such deficiency on an accelerated basis, which accelerated deficiency shall be
discounted at a rate of 6% per annum. If Landlord elects to pursue its rights
and remedies under Subsection (b) above, and Landlord fails to relet the
Premises, then Tenant shall pay to Landlord the sum of (x) the projected costs
of Landlord's expenses of reletting (including the anticipated costs of repairs,
alterations, improvements, additions, legal fees and brokerage commissions) as
reasonably estimated by Landlord and (y) the accelerated amount of Base Rent and
Additional Rent due under the Lease for the balance of the Term, discounted to
present value at a rate of 6% per annum. Tenant agrees that Landlord may file
suit to recover any sums due to Landlord hereunder from time to time and that
such suit or recovery of any amount due Landlord hereunder shall not be any
defense to any subsequent action brought for any amount not theretofore reduced
to judgment in favor of Landlord. If Landlord elects to pursue its rights and
remedies under Subsection (b), then Landlord shall at any time have the further
right and remedy to rescind such election and pursue its rights and remedies
under Subsection (a). In the event Landlord elects, pursuant to clause (b) of
this Section 22.2, to terminate Tenant's right of possession -only, without
terminating this Lease, Landlord may, at Landlord' s option, enter into the
Premises, remove Tenant's Property, Tenant's signs and other evidences of
tenancy, and take and hold possession thereof, as provided in Section 20 hereof;
provided, however, that such entry and possession shall not terminate this Lease
or release Tenant, in whole or in part, from Tenant's obligation to pay the Base
Rent and Additional Rent reserved hereunder for the full Term, or from any other
obligation of Tenant under this Lease. Any and all property that may be removed
from the Premises by Landlord pursuant to the authority of the Lease or of law,
to which Tenant is or may be entitled, may be handled, removed or stored by
Landlord at the risk, cost and expense of Tenant, and in no event or
circumstance shall Landlord be responsible for the- value, preservation or
safekeeping thereof. Tenant shall pay to Landlord, upon demand, any and all
expenses incurred in such removal and all storage charges against such property
so long as the same shall be in Landlord's possession or under Landlord's
control. Any such property of Tenant not retaken from storage by Tenant within
30 days after the end of the Term, however terminated, shall be conclusively
presumed to have been conveyed by Tenant to Landlord under this Lease as in a
bill of sale, without further payment or credit by Landlord to Tenant. However,
the foregoing shall not release or absolve Landlord of its obligation to
reasonably mitigate damages.

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       22.3.    ADDITIONAL RIGHTS OF LANDLORD. Any and all costs, expenses and
disbursements, of any kind or nature, incurred by Landlord or Agent in
connection with the enforcement of any and all of the terms and provisions of
this Lease, including attorneys, reasonable fees (through all appellate
proceedings), shall be due and payable (as Additional Rent) upon Landlord's
submission of an invoice therefor. All sums advanced by Landlord or Agent on
account of Tenant under this Section, or pursuant to any other provision of this
Lease, and all Base Rent and Additional Rent, if delinquent or not paid by
Tenant and received by Landlord when due hereunder, shall bear interest at the
rate of 5% per annum above the "prime" or "reference" or "base" rate (on a per
annum basis) of interest publicly announced as such, from time to time, by the
Bank One, from the due date thereof until paid, and such interest shall be and
constitute Additional Rent and be due and payable upon Landlord's or Agent's
submission of an invoice therefor. The various rights, remedies and elections of
Landlord reserved, expressed or .contained herein are cumulative and no one of
them shall be deemed to be exclusive of the others or of such other rights,
remedies, options or elections as are now or may hereafter be conferred upon
Landlord by law.

       22.4.    EVENT OF BANKRUPTCY. In addition to, and in no way limiting the
other remedies set forth herein, Landlord and Tenant agree that if Tenant ever
becomes the subject of a voluntary or involuntary bankruptcy, reorganization,
composition, or other similar type proceeding under the federal bankruptcy laws,
as now enacted or hereinafter amended, then: (a) "adequate assurance of future
performance" by Tenant and/or any assignee of Tenant pursuant to Bankruptcy Code
Section 365 will include (but not be limited to) payment of an additional/new
security deposit in the amount of three times the then current Base Rent payable
hereunder; (b ) any person or entity to which this Lease is assigned, pursuant
to the provisions of the Bankruptcy Code, shall be deemed, without further act
or deed, to have assumed all of the obligations of Tenant arising under this
Lease on and after the effective date of such assignment, and any such assignee
shall, upon demand by Landlord, execute and deliver to Landlord an instrument
confirming such assumption of liability; ( c) notwithstanding anything in this
Lease to the contrary, all amounts payable by Tenant to or on behalf of Landlord
under this Lease, whether or not expressly denominated as "Rent", shall
constitute "rent" for the purposes of Section 502(b)(6) of the Bankruptcy Code;
and (d) if this Lease is assigned to any person or entity pursuant to the
provisions of the Bankruptcy Code, any and all monies or other considerations
payable of otherwise to be delivered to Landlord or Agent (including Base Rent,
Additional Rent and other amounts hereunder), shall be and remain the exclusive
property of Landlord and shall not constitute property of Tenant or of the
bankruptcy estate of Tenant. Any and all monies or other considerations
constituting Landlord's property under the preceding sentence not paid or
delivered to Landlord or Agent shall be held in trust by Tenant or Tenant's
bankruptcy estate for the benefit of Landlord and shall be promptly paid to or
turned over to Landlord.

       23.      BROKER. Tenant covenants, warrants and represents that the
broker set forth in SECTION 1.9(A) was the only broker to represent Tenant in
the negotiation of this Lease ("TENANT'S BROKER"). Landlord covenants, warrants
and represents that the broker set forth in SECTION 1.9(B) was the only broker
to represent Landlord in the negotiation of this Lease ("LANDLORD'S BROKER").
Landlord shall be solely responsible for paying the commission of Landlord's
Broker and Tenant's Broker. Each party agrees to and hereby does defend,
indemnify and hold the other harmless against and from any brokerage commissions
or finder's fees or claims therefor by a party claiming to have dealt with the
indemnifying party and all costs, expenses and liabilities in connection
therewith, including, without limitation, reasonable, attorneys' fees and
expenses, for any breach of the foregoing. The foregoing indemnification shall
survive the termination of this Lease for any reason.

       24.      MISCELLANEOUS.

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       24.1.    MERGER. All prior understandings and agreements between the
parties are .merged in this Lease, which alone fully and completely expresses
the agreement of the parties. No agreement shall be effective to modify this
Lease, in whole or in part, unless such agreement is in Writing, and is signed
by the party against whom enforcement of said change or modification is sought.

       24.2.    NOTICES. Any notice required to be given by either party
pursuant to this Lease, shall be in Writing and shall be deemed to have been
properly given, rendered or made only if personally delivered, or if sent by
Federal Express or other comparable commercial overnight delivery service,
addressed to the other party at the addresses set forth below ( or to such other
address as Landlord or Tenant may designate to each other from time to time by
Written notice), and shall be deemed to have been given, rendered or made on the
day so delivered or on the first business day after having been deposited with
the courier service:

       If to Landlord:       First Industrial, L.P .
                             311 South Wacker Drive, Suite 4000
                             Chicago, Illinois 60606
                             Attn: Senior Vice President -Portfolio Management

       With a copy to:       First Industrial Realty Trust, Inc.

                             9450 W. Bryn Mawr, Suite 150

                             Rosemont, Illinois 60018 , Attn: Regional Director

With a copy to:              Barack Ferrazzano Kirschbaum Perlman & Nagelberg

                             333 West Wacker Drive Suite 2700
                             Chicago, Illinois 60600
                             Attn: Suzanne Bessette-Smith

If to Tenant:                Natural Golf, Inc.
                             1200 Business Center Drive
                             Mount Prospect, Illinois 60056-6041
                             Attn: Andrew Wyant

                24.3.   NON-WAIVER. The failure of either party to insist, in
       anyone or more instances, upon the strict performance of anyone or more
       of the obligations of this Lease, or to exercise any election herein
       contained, shall not be construed as a waiver or relinquishment for the
       future of the performance of such one or more obligations of this Lease
       or of the right to exercise such election, but the Lease shall continue
       and remain in full force and effect with respect to any subsequent
       breach, act or omission. The receipt and acceptance by Landlord or Agent
       of Base Rent or Additional Rent with knowledge of breach by Tenant of any
       obligation of this Lease shall not be deemed a waiver of such breach.

                24.4.   LEGAL COSTS. Any party in breach or default under this
       Lease (the "Defaulting Party") shall reimburse the other party (the
       "NONDEFAULTING PARTY") upon demand for any reasonable legal fees and
       court (or other administrative proceeding) costs or expenses that the
       Nondefaulting party incurs in connection with the breach or default,
       regardless whether suit is commenced or judgment entered. Such costs
       shall include legal fees and costs incurred for the negotiation of a
       settlement, enforcement of rights or otherwise. Furthermore, in the event
       of litigation, the court in such action shall award to the party in whose
       favor a judgment is entered a reasonable sum as attorneys' fees and
       costs, which sum shall be paid by the losing party. Tenant shall pay
       Landlord's attorneys'

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       reasonable fees incurred in connection with Tenant's request for
       Landlord's consent under provisions of this Lease governing assignment
       and subletting, or in connection with any other act which Tenant proposes
       to do and which requires Landlord's consent.

       24.5.    PARTIES BOUND. Except as otherwise expressly provided for in
this Lease, this Lease shall be binding upon, and inure to the benefit of, the
successors and assignees of the parties hereto. Tenant hereby releases Landlord
named herein from any obligations of Landlord for any period subsequent to the
conveyance and transfer of Landlord's ownership interest in the Property. In the
event of such conveyance and transfer, Landlord's obligations shall thereafter
be binding upon each transferee (whether Successor Landlord or otherwise). No
obligation of Landlord shall arise under this Lease until the instrument is
signed by, and delivered to, both Landlord and Tenant.

       24.6.    RECORDATION OF LEASE. Tenant shall not record or file this Lease
(or any memorandum hereof) in the public records of any county or state.

       24.7.    SURVIVAL OF OBLIGATIONS. Upon the expiration or other
termination of this Lease, neither party shall have any further obligation nor
liability to the other except as otherwise expressly provided in this Lease and
except for such obligations as; by their nature or under the circumstances, can
only be, or by the provisions of this Lease, may be performed after such
expiration or other termination.

-

       24.8     GOVERNING LAW; CONSTRUCTION. This lease shall be governed by and
construed in accordance with the laws of the state in which the Property is
located. If any provision of this Lease shall be invalid or unenforceable, the
remainder of this Lease shall not be affected but shall be enforced to the
extent permitted by law. The captions, headings and titles in this Lease are
solely for convenience of reference and shall not affect its interpretation.
This Lease shall be construed without regard to any presumption or other rule
requiring construction against the party causing this Lease to be drafted. Each
covenant, agreement, obligation, or other provision of this Lease to be
performed by Tenant, shall be construed as a separate and independent covenant
of Tenant, not dependent on any other provision of this Lease. All terms and
words used in this Lease, regardless of the number or gender in which they are
used, shall be deemed to include any other number and any other gender as the
context may require. This Lease may be executed in counterpart and, when all
counterpart documents are executed, the counterparts shall constitute a single
binding instrument.

       24.9.    TIME. Time is of the essence of this Lease. If the time for
performance hereunder falls on a Saturday, Sunday or a day that is recognized as
a holiday in the state in which the Property is located, then such time shall be
deemed extended to the next day that is not a Saturday, Sunday or holiday in
said state.

       24.10.   AUTHORITV OF TENANT. If Tenant is a corporation, partnership,
limited liability company, association or any other entity, it shall deliver to
Landlord, concurrently with the delivery to Landlord of an executed Lease,
certified resolutions of Tenant's directors or other governing person 0! body
(i) authorizing execution and delivery of this Lease and the performance by
Tenant of its obligations hereunder and (ii) certifying the authority of the
party executing the Lease as having been duly authorized to do so.

       24.11.   WAIVER OF TRIAL BY JURY. THE LANDLORD AND THE TENANT, TO THE
FULLEST EXTENT THAT THEY MAY LAWFULLY DO SO, HEREBY WAIVE TRIAL BY JURY IN ANY
ACTION OR PROCEEDING BROUGHT BY ANY PARTY TO THIS LEASE WITH RESPECT TO THIS
LEASE, THE PREMISES, OR ANY OTHER MATTER RELATED TO THIS LEASE OR THE PREMISES.

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       24.12.   TENANT IMPROVEMENT ALLOWANCE. Landlord hereby agrees to pay to
Tenant a tenant improvement allowance of $55,000.00 (the "Tenant Improvement
Allowance"), for the construction and installation of certain tenant
improvements to the Premises (the "Tenant Improvements") on and subject to the
terms and conditions set forth on Exhibit D attached hereto .

       24.13.   FINANCIAL INFORMATION. From time to time during the Term,.
Tenant shall deliver to Landlord information and documentation describing and
concerning Tenant's financial condition, and in form and substance reasonably
acceptable to Landlord, within ten (10) days following Landlord' s written
request therefor.

       24.14.   CONFIDENTIAL INFORMATION. Tenant agrees to maintain in strict
confidence the economic terms of this Lease and any or all other materials, data
and information delivered to or received by any or all of Tenant and Tenants'
Parties either prior to or during the Term in connection with the negotiation
and execution hereof. The provisions of this Section 24.14 shall survive the
termination of this Lease.

       24.15.   SUBMISSION OF LEASE. Submission of this Lease to Tenant for
signature does not constitute a reservation of space or an option to lease. This
Lease is not effective until execution by and delivery to both Landlord and
Tenant.

       24.16.   JOINT AND SEVERAL LIABILITY. All parties signing this Lease as
Tenant shall be jointly and severally liable for all obligations of Tenant
hereunder.

       24.17.   RIDERS. All Riders and Exhibits attached hereto and executed (or
initialed) both by Landlord and Tenant shall be deemed to be a part hereof and
hereby incorporated herein.

[Signature Page to Follow]

IN WITNESS WHEREOF, LANDLORD AND TENANT HAVE DULY EXECUTED THIS LEASE as OF THE
DAY and year FIRST ABOVE WRITTEN.

LANDLORD:

FIRST INDUSTRIAL, L.P ., a DELAWARE LIMITED PARTNERSHIP

BY: FIRST INDUSTRIAL REALTY TRUST, INC., a
MARYLAND CORPORATION, ITS GENERAL PARTNER

By: /s/ Mark Saturno
    ----------------------------------------

TENANT:

NATURAL GOLF, INC., an ILLINOIS CORPORATION

By:  /s/ Andrew S. Wyant
     ---------------------------------------

Its: President and Chief Operating Officer

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EXHIBIT A PROPERTY

ATTACH APPROPRIATE LEGAL DESCRIPTION
85021-2 A-L

<Page>

LOT 407 IN KENSINGTON CENTER RESUBDIVISION ,TWENTY FOUR BEING a RESUBDIVISION OF
LOTS 401 AND 402 IN KENSINGTON CENTER-RESUBDIVISION, FOURTEEN-AND LOT 403 IN
'KENSINGTON CENTER-PHASE. FOUR IN PART OF THE NORTHEAST QUARTER OF SECTION 35,
TOWNSHIP"42 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL' MERIDIAN, ACCORDING TO
PLAT ~HEREOF RECORDED MARCH 30, 1989 AS DOCUMENT NUMBER T3782920, IN COOK
COUNTY, ILLINOIS.

PIN # 03-35-201-012-0000

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EXHIBIT B

LANDLORD'S REPAIRS AND IMPROVEMENTS II!

..LANDLORD SHALL PLACE ALL BUILDING SYSTEMS in GOOD WORKING ORDER.

<Page>

                                    EXHIBIT C

                  BROOM CLEAN CONDITION AND REPAIR REQUIREMENTS

All walls must be clean and free of holes.

..Overhead door must be free of any broken panels, cracked lumber or dented
panels. The overhead door springs, rollers, tracks, motorized door operator, and
all other items pertaining to the overhead door must also be in good working
condition.

..HV AC system must be in good working order, subject to ordinary wear and tear.
Filters must be changed, and all thermostats must be in working order. Tenant
must supply Landlord with maintenance records.
I
All floors (warehouse and office) must be clean and free of excessive dust,
dirt, grease, and oil.

..Drop grid ceiling must be free of excessive dust from lack of changing filters.
(No ceiling tiles may be missing or damaged. )

..All trash must be removed from both inside and outside of the Building. .All
lightbulbs and ballasts must be worpng.

..All signs in front of Building and on glass entry door and rear door must be
removed. .Hot water heater must work.

..All plumbing fixtures, equipment and drains must be clean and in working order.
..

Windows must be clean-

..All mechanical and electrical systems must be in good working condition.

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EXHIBIT D

Tenant Improvements

This Exhibit D sets forth the rights and obligations of Landlord and Tenant with
respect to the construction of the Tenant Improvements. Capitalized terms used
herein, unless otherwise defined in this Exhibit D, shall have the respective
meanings ascribed to them in the Amendment. Notwithstanding anything to the
contrary contained herein, in the event that the Tenant Improvements consist
only of painting and re carpeting the Premises, the provisions of Paragraphs 2,
3 and 4 of this Exhibit D shall not apply.

I. Tenant Improvements. I

Tenant shall engage a duly licensed and reputable contractor (the "Contractor")
to construct and install the Tenant Improvements in the Premises provided for in
the Approved Plans (defined below). Subject to Tenant's satisfaction of the
conditions specified in this Exhibit D, Tenant shall be entitled to the Tenant
Improvement Allowance.

2. Pre-Construction Activities.

(a) On or before Tenant commences any work in the Premises, Tenant shall submit
the following information and items to Landlord for Landlord's review and
approval:

(i) Certified copies of insurance policies or certificates Qf insurance as
hereinafter described. Tenant shall not permit the Contractor or any of Tenant's
Contractors to commence work until the required insurance has been obtained and
certified copies of policies of insurance or certificates thereof have been
delivered to Landlord. I

(ii) The Plans (defined below) for the Tenant Improvements, which Plans shall be
subject to Landlord's approval in accordance with Paragraph 2(b) below.

(iii) All necessary building permits have been applied for and obtained by
Tenant.

(iv) Proper provision has been made by Tenant for payment in full of the total
cost of the Tenant Improvements, which is satisfactory to Landlord.

Tenant will update such information and items by written notice to Landlord of
any changes.

(b) As used herein the term "Approved Plans" shall mean the Plans (defined
below), as and when approved in writing by Landlord. As used herein, the term
"Plans" shall mean the full and detailed architectural and engineering plans and
specifications covering the Tenant Improvements (including, without limitation,
architectural, mechanical and electrical working drawings for the Tenant
Improvements). The Plans shall be subject to Landlord's approval and the
approval of all loc governmental authorities requiring approval of the Tenant
Improvements and the Approved Plans. Landlord agrees not to unreasonably
withhold its approval of said Plans. If Landlord notifies Tenant that changes
are required to the final Plans submitted by Tenant, Tenant should submit to
Landlord, for its approval, the Plans amended in accordance with the change so
required. The Plans shall also be revised, and the Tenant Improvements shall be
changed, all at Tenant's cost and expense, to incorporate any work required in
the Premises by any local governmental field inspector. Landlord's approval of
the Plans shall in no way be deemed to be (x) an acceptance or

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approval of any element therein contained which is in violation of any
applicable laws, ordinances, regulations or other governmental requirements, or
(y) an assurance that work done pursuant to the Approved Plans will comply with
all applicable law (or with the interpretations thereof) or satisfy Tenant's
objectives and needs.

3. CHANGE ORDERS.

All changes to the Approved Plans requested by Tenant must be approved by
Landlord in advanc of the implementation of such changes as part of the Tenant
Improvements.

4. STANDARDS OF DESIGN AND CONSTRUCTION AND CONDITIONS OF TENANT'S PERFORMANCE.

All Tenant Improvements done or upon the Premises by Tenant shall be done
according to the standards set forth in s Exhibit D, except as the same may be
modified in the Approved Plans.

       (a) Tenant's Approved Plans and all design and construction of the Tenant
Improvements shall comply with all legal requirements and industry standards,
including, but not limited to, requirements of Landlord's fire insurance
underwriters.

       (b) Tenant shall use only new, first-class materials in the Tenant
Improvements, except where explicitly shown in the Approved Plans. All Tenant
Improvements shall be constructed and installed in a good and workmanlike
manner.

       (c) Tenant shall permit Landlord to have access to the Premises, and the
Tenant Improvements shall be subject to inspection by landlord and Landlord's
architects, engineers, contractors and other representatives, at all times
during the period in which the Tenant Improvements is being constructed and
installed and following completion of the Tenant Improvements .

       Tenant shall impose on and enforce all applicable terms of this Exhibit D
against Tenant's architect and the Contractor .

5.     INSURANCE AND INDEMNIFICATION.

(a) In addition to any insurance which may be required under the Lease, Tenant
shall secure, pay for and maintain or cause the Contractor and all
subcontractors and materialmen (collectively, "Tenant's Contractors") to secure,
pay for and maintain during the continuance of construction and fixturing work
within the Premises, insurance in the following minimum coverages and the
following minimum limits of liability:

(i) Worker's Compensation and Employer's Liability Insurance with limits of not
less than $500,000.00, or such higher amounts as may be required from time to
time by any Employee Benefits Act or other statutes applicable where the work is
to be performed, and in any event sufficient to protect Tenant's Contractors
from liability under the aforementioned acts.

(ii) Comprehensive General Liability Insurance (including Contractor's
Protective Liability) in commercially reasonable amounts given the scope of the
work to be performed by each of Tenant's Contractors. Such insurance shall
provide for explosion and collapse, completed operations coverage and broad form
blanket contractual liability coverage and shall insure Tenant's Contractors
against any and all claims for bodily injury, including death resulting
therefrom, and damage to the property of others and arising from its operations
under the contracts whether such

<Page>

operations are performed by Tenant's Contractors or by anyone directly or
indirectly employed by any of them.

(iii) Comprehensive Automobile Liability Insurance, including the ownership,
maintenance and operation of any automotive equipment, owned, hired, or
non-owned in an amount not less than $500,000.00 for each person in one
accident, and $1,000,000.00 for injuries sustained by two or more persons in
anyone accident and property damage liability in an amount not less than
$1,000,000.00 for each accident. Such insurance shall insure Tenant's
Contractors against any and all claims for bodily injury, including death
resulting, therefrom, and damage to the property of others arising from its
operations under the contracts, whether such operations are performed by Tenant'
s Contractors, or anyone directly or indirectly employed by any of them.

(IV) " All-risk" builder's risk insurance covering the Tenant Improvements to
the full insurable value thereof. This insurance shall include the interests of
Landlord and Tenant (and their respective contractors and subcontractors to the
extent of any insurable interest therein) in the Tenant Improvements and shall
insure against the perils of fire and extended coverage and shall include
"all-risk" builder's risk insurance for physical loss or damage including,
without duplication of coverage, theft vandalism and malicious mischief. -Any
loss insured under said "all-risk" builder's risk insurance is to be adjusted
with Landlord and tenant and made payable to Landlord, as trustee for the
insureds, as their interests may appear.

All policies (except the worker's compensation policy) shall be endorsed to
include Landlord as an additional insured. The waiver of subrogation provisions
contained in the Lease shall apply to all insurance policies (except the
workmen's compensation policy) to be obtained by Tenant pursuant to this
paragraph. The insurance policy endorsements shall also provide that all
additional insured parties shall be given thirty (30) days' prior written notice
of any reduction, cancellation or non-renewal of coverage (except that ten (10)
days' notice shall be sufficient in the case of cancellation for non-payment of
premium) and shall provide that the insurance coverage afforded to the
additional insured parties thereunder shall be primary to any insurance carried
independently by said additional insured parties. Additionally, where applicable
each policy shall contain a cross-liability and severability of interest clause.

(b) Without limiting of the indemnification provisions in the Lease, to the
fullest extent permitted by law, Tenant agrees to indemnify , protect, defend
and hold harmless Landlord, the parties listed, or required by, the Lease to be
named as additional insureds, and their respective beneficiaries, partners,
directors, officers, employees and agents, from and against all claims,
liabilities, losses, damages and expenses of whatever nature arising out of or
in connection with the Tenant Improvements or the entry of Tenant or Tenant's
Contractors into the Building and the Premises, including, without limitation,
mechanic's liens, the cost of any repairs to the Premises or Building
necessitated by activities of Tenant or Tenant's Contractors, bodily injury to
persons or damage to the property of Tenant, its employees, agents, invitees.
licensees or others. It is understood and agreed that the foregoing indemnity
shall be in addition to the insurance requirements set forth above and shall not
be in discharge of or in substitution for same or any other indemnity or
insurance provision of the Lease.

6. Tenant Improvement Allowance

    (a) Landlord shall make the Tenant Improvement Allowance available to Tenant
        as set forth in this Paragraph 6 for application to the cost of the
        Tenant Improvements. The Tenant Improvement Allowance shall be paid by
        Landlord from time to time as the construction and installment of the
        Tenant Improvements progresses (but not more frequently than monthly)
        directly to the Contractor.

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    (b) Tenant shall cause the Contractor and Tenant's Contractors to provide
such contractor's affidavits, tenant statements, partial and final waivers of
lien, architect's certificates and any additional documentation (including,
without limitation, Contractor's or Tenant's Contractor's personal undertakings)
Which may be requested by Landlord. Upon completion of the Tenant Improvements,1
Tenant shall furnish Landlord with full and final waivers of liens and
contractor's affidavits and statements, in such form as may be required by
Landlord, Landlord's title insurance company and Landlord's construction or
permanent lender, if any, from all parties performing labor or supplying
materials or services in connection with the Tenant Improvements showing that
all of said parties have been compensated in full and waiving all liens in
connection with the Premises and Building. Tenant shall submit to Landlord a
detailed breakdown of Tenant's total construction costs, together with such
evidence of payment as is reasonably satisfactory to Landlord.

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