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EXHIBIT 10.19    
    

LEASE AGREEMENT
  by and between

  ADVA 15 (GA) LLC,
  a Delaware limited liability company

as LANDLORD

and

ADVANTIS TECHNOLOGIES, INC.,

a Delaware corporation,

as TENANT

Premises: 1400 Bluegrass Lakes Parkway

Alpharetta, GA

Dated as of: June 25, 2002 

  

 
  Table of Contents    
    

	 
	 	 
	 	Page

	1.	 	Demise of Premises	 	1
	2.	 	Certain Definitions	 	1
	3.	 	Title and Condition	 	6
	4.	 	Use of Leased Premises; Quiet Enjoyment	 	8
	5.	 	Term	 	8
	6.	 	Basic Rent	 	8
	7.	 	Additional Rent	 	9
	8.	 	Net Lease; Non-Terminability	 	10
	9.	 	Payment of Impositions	 	10
	10.	 	Compliance with Laws and Easement Agreements, Environmental Matters	 	11
	11.	 	Liens; Recording	 	12
	12.	 	Maintenance and Repair	 	13
	13.	 	Alterations and Improvements	 	14
	14.	 	Permitted Contests	 	14
	15.	 	Indemnification	 	15
	16.	 	Insurance	 	16
	17.	 	Casualty and Condemnation	 	17
	18.	 	Termination Events	 	18
	19.	 	Restoration	 	19
	20.	 	Procedures Upon Purchase	 	22
	21.	 	Assignment and Subletting, Prohibition Against Leasehold Financing	 	22
	22.	 	Events of Default	 	24
	23.	 	Remedies and Damages upon Default	 	29
	24.	 	Notices	 	29
	25.	 	Estoppel Certificate	 	29
	26.	 	Surrender	 	30
	27.	 	No Merger of Title	 	30
	28.	 	Books and Records	 	30
	29.	 	INTENTIONALLY DELETED	 	31
	30.	 	Non-Recourse as to Landlord	 	31
	31.	 	Financing	 	32
	32.	 	Subordination, Non-Disturbance and Attornment	 	32
	33.	 	Tax Treatment; Reporting	 	32
	34.	 	Security Deposit	 	33
	35.	 	Restriction on Landlord's Loan	 	34
	36.	 	Miscellaneous	 	34

EXHIBITS  

	Exhibit "A"	 	—Premises
	Exhibit "B"	 	—Machinery and Equipment
	Exhibit "C"	 	—Schedule of Permitted Encumbrances
	Exhibit "D"	 	—Rent Schedule
	Exhibit "E"	 	—Termination Amount Schedule
	Exhibit "F"	 	—Form Letter of Credit

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        LEASE AGREEMENT, made as of this 25th day of June, 2002, between ADVA 15 (GA) LLC, a Delaware limited liability company
("Landlord"), with an address c/o W.P. Carey & Co. LLC, 50 Rockefeller Plaza, 2nd Floor, New York, New York 10020, and  ADVANTIS TECHNOLOGIES,
 INC., a Delaware corporation ("Tenant"), with an address at 1400 Bluegrass
Lakes Parkway, Alpharetta, Georgia 30004. 

        In
consideration of the rents and provisions herein stipulated to be paid and performed, Landlord and Tenant hereby covenant and agree as follows: 

        1.    Demise of Premises.    Landlord hereby demises and lets to Tenant, and Tenant hereby takes and leases from
Landlord, for the term and upon the provisions hereinafter specified, the following described property (collectively, the "Leased Premises"): (a) the land described in Exhibit "A" hereto
together with the Appurtenances (collectively, the "Land"); (b) the building containing approximately 191,975 square feet, structures and other improvements now or hereafter constructed on the
Land (collectively, the "Improvements"); and (c) the fixtures, machinery, equipment and other property described in Exhibit "B" hereto (collectively, the "Equipment"). 

        2.    Certain Definitions.    

        "Additional
Rent" shall mean Additional Rent as defined in Paragraph 7. 

        "Adjoining
Property" shall mean all sidewalks, driveways, curbs, gores and vault spaces which adjoin any of the Leased Premises and for which Landlord under any (a) contract that
was binding on Tenant when it conveyed the Land to Landlord or that was entered into by Landlord with the written consent of Tenant, (b) Permitted Encumbrance or (c) Legal Requirement
has any obligation to maintain, repair, restore or insure. 

        "Adjustment
Beginning CPI" shall mean the average CPI for the three (3) calendar months corresponding to the Prior Months but occurring five (5) years earlier. 

        "Alterations"
shall mean all changes, additions, improvements or repairs to, all alterations, reconstructions, renewals, replacements or removals of and all substitutions or replacements
for any of the Improvements or Equipment, both interior and exterior, structural and non-structural, and ordinary and extraordinary. 

        "Appurtenances"
shall mean all tenements, hereditaments, easements, rights-of-way, rights, privileges in and to the Land, including (a) easements over
other lands granted by any Easement Agreement and (b) any streets, ways, alleys, vaults, gores or strips of land adjoining the Land. 

        "Assignment"
shall mean any assignment of rents and leases from Landlord to a Lender which (a) encumbers any of the Leased Premises and (b) secures Landlord's obligation to
repay a Loan, as the same may be amended, supplemented or modified from time to time. 

        "Assignment
Security Deposit" shall mean a Security Deposit in an amount equal to twelve (12) months of Basic Rent in effect at the time the Assignment Security Deposit is
required to be posted pursuant to Paragraph 21 (a) hereof. 

        "Basic
Rent" shall mean Basic Rent as defined in Paragraph 6. 

        "Basic
Rent Payment Dates" shall mean the Basic Rent Payment Dates as defined in Paragraph 6. 

        "Casualty"
shall mean any damage to or destruction of or which affects the Leased Premises or Adjoining Property or which arises from the Adjoining Property. 

        "Commencement
Date" shall mean Commencement Date as defined in Paragraph 5. 

        "Condemnation"
shall mean a Taking. 

        "Condemnation
Notice" shall mean notice or knowledge of the institution of any proceeding for Condemnation. 

 

        "Costs"
of a Person or associated with a specified transaction shall mean all reasonable costs and expenses incurred by such Person or associated with such transaction, including without
limitation, attorneys' fees and expenses not to exceed the sum actually and reasonably incurred, court costs, brokerage fees, escrow fees, title insurance premiums, recording fees and transfer taxes,
as the circumstances require. 

        "CPI"
shall mean CPI as defined in Exhibit "D" hereto. 

        "Default
Rate" shall mean the Default Rate as defined in Paragraph 7(a)(iv). 

        "Easement
Agreement" shall mean any conditions, covenants, restrictions, easements, declarations, licenses and other agreements listed as Permitted Encumbrances or, at the request of or
with the consent of Tenant, as may hereafter affect the Leased Premises. 

        "Environmental
Law" shall mean (i) whenever enacted or promulgated, any applicable federal, state and local law, statute, ordinance, rule, regulation, license, permit,
authorization, approval, consent, court order, judgment, decree, injunction, code, requirement or agreement of or with any governmental entity, (x) relating to pollution (or the cleanup
thereof), or the protection of air, water vapor, surface water, groundwater, drinking water supply, land (including land surface or subsurface), plant, aquatic and animal life from injury caused by a
Hazardous Substance or (y) concerning exposure to, or the use, containment, storage, recycling, reclamation, reuse, treatment, generation, discharge, transportation, processing, handling,
labeling, production, disposal or remediation of Hazardous Substances, Hazardous Conditions or Hazardous Activities, in each case as amended and as now or hereafter in effect, and (ii) any
common law or equitable doctrine (including, without limitation, injunctive relief and tort doctrines such as negligence, nuisance, trespass and strict liability) that may impose liability or
obligations or injuries or damages due to or threatened as a result of the presence of, exposure to, or ingestion of, any Hazardous Substance. The term Environmental Law includes, without limitation,
the federal Comprehensive Environmental Response Compensation and Liability Act of 1980, the Superfund Amendments and Reauthorization Act, the federal Water Pollution Control Act, the federal Clean
Air Act, the federal Clean Water Act, the federal Resources Conservation and Recovery Act of 1976 (including the Hazardous and Solid Waste Amendments to RCRA), the federal Solid Waste Disposal Act,
the federal Toxic Substance Control Act, the federal Insecticide, Fungicide and Rodenticide Act, the federal Occupational Safety and Health Act of 1970, the federal National Environmental Policy Act
and the federal Hazardous Materials Transportation Act, each as amended and as now or hereafter in effect and any similar state or local Law. 

        "Environmental
Violation" shall mean (a) any direct or indirect discharge, disposal, spillage, emission, escape, pumping, pouring, injection, leaching, release, seepage,
filtration or transporting of any Hazardous Substance at, upon, under, onto or within the Leased Premises, or from the Leased Premises to the environment, in violation of any Environmental Law or
which is reasonably likely to result in any liability to Landlord, Tenant or Lender, any Federal, state or local government or any other Person for the costs of any removal or remedial action or
natural resources damage or for bodily injury or property damage, (b) any deposit, storage, dumping, placement or use of any Hazardous Substance at, upon, under or within the Leased Premises or
which extends to any Adjoining Property in violation of any Environmental Law or which is reasonably likely to result in any liability to any Federal, state or local government or to any other Person
for the costs of any removal or remedial action or natural resources damage or for bodily injury or property damage, (c) the abandonment or discarding on the Leased Premises of any barrels,
containers or other receptacles containing any Hazardous Substances in violation of any Environmental Laws, (d) any activity, occurrence or condition relating to the Leased Premises which is
reasonably likely to result in any liability, cost or expense to Landlord or Lender or any other owner or occupier of the Leased Premises, or which is reasonably likely to result in a creation of a
lien on the Leased Premises under any Environmental Law, or (e) any violation of or noncompliance with any Environmental Law as it relates to the Leased Premises. 

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        "Equipment"
shall mean the Equipment as defined in Paragraph 1. 

        "Escrow
Payment" shall mean Escrow Payment as defined in Paragraph 9(b). 

        "Event
of Default" shall mean an Event of Default as defined in Paragraph 22(a). 

        "Federal
Funds" shall mean federal or other immediately available funds which at the time of payment are legal tender for the payment of public and private debts in the United States of
America. 

        "Guarantor"
shall mean Rockwood Specialties Group, Inc., a Delaware corporation or any Replacement Guarantor. 

        "Guaranty"
shall mean the Guaranty and Suretyship Agreement dated as of the date hereof from Guarantor to Landlord guaranteeing the payment and performance by Tenant of all of Tenant's
obligations under the Lease or any Replacement Guaranty. 

        "Hazardous
Activity" means any activity, process, procedure or undertaking which directly or indirectly (i) procures, generates or creates any Hazardous Substance;
(ii) causes or results in (or threatens in any material respect to cause or result in) the release, seepage, spill, leak, flow, discharge or emission of any Hazardous Substance into the
environment (including the air, ground water, watercourses or water systems), (iii) involves the containment or storage of any Hazardous Substance; or (iv) would cause the Leased
Premises or any portion thereof to become a hazardous waste treatment, recycling, reclamation, processing, storage or disposal facility within the meaning of any Environmental Law. 

        "Hazardous
Condition" means any condition which would support any claim or liability under any Environmental Law, including the presence of underground storage tanks. 

        "Hazardous
Substance" means (i) any substance, material, product, petroleum, petroleum product, derivative, compound or mixture, mineral (including asbestos), chemical, gas,
medical waste, or other pollutant, in each case whether naturally occurring, man-made or the by-product of any process, that is toxic, harmful or hazardous or acutely hazardous
to the environment or public health or safety or (ii) any substance supporting a claim under any Environmental Law, whether or not defined as hazardous as such under any Environmental Law.
Hazardous Substances include, without limitation, any toxic or hazardous waste, pollutant, contaminant, industrial waste, petroleum or petroleum-derived substances or waste, radon, radioactive
materials, asbestos, asbestos-containing materials, urea formaldehyde foam insulation, lead and polychlorinated biphenyls. 

        "Impositions"
shall mean the Impositions as defined in Paragraph 9(a). 

        "Improvements"
shall mean the Improvements as defined in Paragraph 1. 

        "Indemnitee"
shall mean an Indemnitee as defined in Paragraph 15. 

        "Institutional
Lender" shall mean a national bank, life insurance company, servicer of securitized mortgage loans, investment bank, foreign bank licensed to do business in the United
States, state-chartered bank, real estate investment trust not affiliated with Landlord, pension plan, credit union, savings and loan association or a similar type institution that makes mortgage
loans in the normal course of its business. 

        "Insurance
Requirements" shall mean the requirements of all insurance policies required to be maintained in accordance with this Lease. 

        "Land"
shall mean the Land as defined in Paragraph 1. 

        "Law"
shall mean any applicable constitution, statute, rule of law, code, ordinance, order, judgment, decree, injunction, rule, regulation, policy, requirement or administrative or
judicial 

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determination,
even if unforeseen or extraordinary, of every duly constituted governmental authority, court or agency, now or hereafter enacted or in effect. 

        "Lease"
shall mean this Lease Agreement. 

        "Lease
Year" shall mean, with respect to the first Lease Year, the period commencing on the Commencement Date and ending at midnight on the last day of the twelfth (12th) consecutive
calendar month following the month in which the Commencement Date occurred, and each succeeding twelve (12) month period during the Term. 

        "Leased
Premises" shall mean the Leased Premises as defined in Paragraph 1. 

        "Legal
Requirements" shall mean the requirements of all present and future Laws (including but not limited to Environmental Laws and Laws relating to accessibility to, usability by, and
discrimination against, disabled individuals) and all covenants, restrictions and conditions now or, at the request or with the consent of Tenant, hereafter of record which may be applicable to Tenant
or to any of the Leased Premises, or to the use, manner of use, occupancy, possession, operation, maintenance, alteration, repair or restoration of any of the Leased Premises, even if compliance
therewith necessitates structural changes or improvements or results in interference with the use or enjoyment of any of the Leased Premises or requires Tenant to carry insurance other than as
required by this Lease. 

        "Lender"
shall mean any person or entity (and its respective successors and assigns) which may, on or after the date hereof, make a Loan to Landlord or be the holder of a Note. 

        "Loan"
shall mean any loan made by one or more Lenders to Landlord, which loan is secured by a Mortgage and an Assignment and evidenced by a Note. 

        "Major
Alterations Amount" shall mean $250,000 for the first five (5) Lease Years, increased for each succeeding five (5) Lease Years as follows: (A) multiply the
relevant amount then in effect (i.e., $250,000) by a fraction, the numerator of which shall be the difference between the average CPI for the Prior Months ending prior to the applicable adjustment
date and the Adjustment Beginning CPI
and the denominator of which shall be the Adjustment Beginning CPI, and (B) add the product of such multiplication to the then applicable Major Alterations Amount. 

        "Monetary
Obligations" shall mean Rent and all other sums payable by Tenant under this Lease to Landlord, to any third party on behalf of Landlord or to any Indemnitee. 

        "Mortgage"
shall mean any first lien mortgage, deed to secure debt or deed of trust from Landlord to a Lender which (a) encumbers any of the Leased Premises and (b) secures
Landlord's obligation to repay a Loan, as the same may be amended, supplemented or modified. 

        "Net
Award" shall mean (a) the entire award payable to Landlord or Lender by reason of a Condemnation whether pursuant to a judgment or by agreement or otherwise, or
(b) the entire proceeds of any insurance required under clauses (i), (ii) (to the extent payable to Landlord or Lender), (iv), (v) or (vi) of Paragraph 16(a), as the
case may be, less any reasonable expenses incurred by Landlord in collecting such award or proceeds. 

        "Non-Preapproved
Sublet" shall mean Non-Preapproved Sublet as defined in Paragraph 21. 

        "Non-Structural
Approval Amount" shall mean $100,000 for the first five (5) Lease Years, increased for each succeeding five (5) Lease Years as follows:
(A) multiply the relevant amount then in effect (i.e., $100,000) by a fraction, the numerator of which shall be the difference between the
average CPI for the Prior Months ending prior to the applicable adjustment date and the Adjustment Beginning CPI and the denominator of which shall be the Adjustment Beginning CPI and (B) add
the product of such multiplication to the then applicable Non-Structural Approval Amount. 

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        "Note"
shall mean any promissory note evidencing Landlord's obligation to repay a Loan, as the same may be amended, supplemented or modified. 

        "Partial
Casualty" shall mean any Casualty which does not constitute a Termination Event. 

        "Partial
Condemnation" shall mean any Condemnation which does not constitute a Termination Event. 

        "Permitted
Encumbrances" shall mean those covenants, restrictions, reservations, liens, conditions and easements and other encumbrances, other than any Mortgage or Assignment, listed on  Exhibit "C" hereto (but
such listing shall not be deemed to revive any such encumbrances that have expired or terminated or are otherwise invalid or
unenforceable). 

        "Person"
shall mean an individual, partnership, association, corporation or other entity. 

        "Preapproved
Assignee" shall mean Preapproved Assignee as defined in Paragraph 21(a)(i). 

        "Prepayment
Premium" shall mean any payment required to be made by Landlord to a Lender under a Note or any other document evidencing or securing a Loan (other than payments of principal
and/or interest which Landlord is required to make under a Loan, a Note or a Mortgage) solely by reason of any prepayment or defeasance by Landlord of any principal due under a Note or Mortgage, and
which may without limitation take the form of (i) a "make whole" or yield maintenance clause requiring a prepayment premium or (ii) a defeasance payment (such defeasance payment to be an
amount equal to the positive difference between (a) the total amount required to defease a Loan and (b) the outstanding principal balance of the Loan as of the date of such defeasance
plus reasonable Costs of Landlord and Lender. 

        "Present
Value" of any amount shall mean such amount discounted by a rate per annum which is the lower of (a) the Prime Rate at the time such present value is determined or
(b) eight percent (8%) per annum. 

        "Prime
Rate" shall mean the annual interest rate as published, from time to time, in The Wall Street Journal as the "Prime Rate" in its
column entitled "Money Rate". The Prime Rate may not be the lowest rate of interest charged by any "large U.S. money center commercial banks" and Landlord makes no representations or warranties to
that effect. In the event The Wall Street Journal ceases publication or ceases to publish the "Prime Rate" as described above, the Prime Rate shall be
the average per annum discount rate (the "Discount Rate") on ninety-one (91) day bills ("Treasury
Bills") issued from time to time by the United States Treasury at its most recent auction, plus three hundred (300) basis points. If no such 91-day Treasury
Bills are then being issued, the Discount Rate shall be the discount rate on Treasury Bills then being issued for the period of time closest to ninety-one (91) days. 

        "Prior
Months" shall mean the three (3) most recent calendar months ending prior to each date for which the Major Alterations Amount and Non-Structural Approval Amount
is determined and for which the CPI has been published on or before the forty-fifth (45th) day preceding the date on which each such calculation is to be made. 

        "Proceeds
Trustee" shall mean (a) Landlord if the Leased Premises are not encumbered by a Mortgage and Landlord is controlled by or under common control with any Person whose
exclusive real estate advisor is W.P. Carey & Co. LLC or its successor (a "WPC Landlord"), or (b) if the Leased Premises are encumbered by
a Mortgage, Lender, provided however, if Landlord is not a WPC Landlord or if Lender is not an Institutional Lender, then an Institutional Lender reasonably satisfactory to Landlord and Tenant and
which is experienced in providing escrow and fund disbursement services for a fee and who agrees to disburse funds received by it in the manner provided herein. 

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        "Relevant
Amount" shall mean the Termination Amount. 

        "Relevant
Date" shall mean (a) the date immediately prior to the date on which the applicable Condemnation Notice is received, in the event of a Termination Notice under
Paragraph 18 which is occasioned by a Taking or (b) the date immediately prior to the date on which the applicable Casualty occurs, in the event of a Termination Notice under
Paragraph 18 which is occasioned by a Casualty. 

        "Renewal
Term" shall mean Renewal Term as defined in Paragraph 5. 

        "Rent"
shall mean, collectively, Basic Rent and Additional Rent. 

        "Replacement
Guarantor" shall mean Replacement Guarantor as defined in Paragraph 21(a)(i). 

        "Replacement
Guaranty" shall mean any Guaranty and Suretyship Agreement from a Replacement Guarantor to Landlord which is substantially in the form of the Guaranty. 

        "Security
Deposit" shall mean Security Deposit as defined in Paragraph 34. 

        "Site
Assessment" shall mean a Site Assessment as defined in Paragraph 10(c). 

        "Six
Month Sublease Security Deposit" shall mean a Security Deposit in an amount equal to the product of (a) six (6) months of Basic Rent in effect at the time a Six Month
Sublease Security Deposit
is required to be posted pursuant to Paragraph 21(b) hereof and (b) the percentage of the building(s) on the Leased Premises being sublet pursuant to a Non-Preapproved
Sublet. 

        "State"
shall mean the State of Georgia. 

        "Surviving
Obligations" shall mean any obligations of Tenant under this Lease, actual or contingent, which arise on or prior to the expiration or prior termination of this Lease or which
survive such expiration or termination by their own terms. 

        "Taking"
shall mean (a) any taking or damaging of all or a portion of the Leased Premises (i) in or by condemnation or other eminent domain proceedings pursuant to any Law,
general or special, or (ii) by reason of any agreement with any condemnor in settlement of or under threat of any such condemnation or other eminent domain proceeding, or (b) any de
facto condemnation. The Taking shall be considered to have taken place as of the date Tenant is required by Law or contract to vacate the Leased Premises. 

        "Term"
shall mean the Term as defined in Paragraph 5. 

        "Termination
Amount" shall mean the amount for the applicable Lease Year set forth in Exhibit "E" plus, in the event of a Casualty that is
a Termination Event, the applicable Prepayment Premium which Landlord will be required to pay in prepaying or defeasing, as applicable, any Loan with proceeds of the Termination Amount. 

        "Termination
Date" shall mean Termination Date as defined in Paragraph 18. 

        "Termination
Event" shall mean a Termination Event as defined in Paragraph 18. 

        "Termination
Notice" shall mean Termination Notice as defined in Paragraph 18(a). 

        "Warranties"
shall mean Warranties as defined in Paragraph 3(d). 

        3.    Title and Condition.    

        (a)   The
Leased Premises are demised and let subject to (i) the rights of any Persons in possession of the Leased Premises, (ii) the existing state of title of
any of the Leased Premises, including any Permitted Encumbrances, (iii) any state of facts which an accurate survey or physical inspection of the Leased Premises might show, (iv) all
Legal Requirements, including any existing violation of any 

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thereof,
and (v) the condition of the Leased Premises as of the commencement of the Term, without representation or warranty by Landlord. 

        (b)   Tenant
acknowledges that the Leased Premises is in good condition and repair at the inception of this Lease. LANDLORD LEASES AND WILL LEASE AND TENANT TAKES AND WILL
TAKE THE LEASED PREMISES AS IS. TENANT ACKNOWLEDGES THAT LANDLORD (WHETHER ACTING AS LANDLORD HEREUNDER OR IN ANY OTHER CAPACITY) HAS NOT MADE AND WILL
NOT MAKE, NOR SHALL LANDLORD BE DEEMED TO HAVE MADE, ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF THE LEASED PREMISES, INCLUDING ANY WARRANTY OR REPRESENTATION AS TO
(i) ITS FITNESS, DESIGN OR CONDITION FOR ANY PARTICULAR USE OR PURPOSE, (ii) THE QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, (iii) THE EXISTENCE OF ANY DEFECT, LATENT OR
PATENT, (iv) LANDLORD'S TITLE THERETO, (v) VALUE, (vi) COMPLIANCE WITH SPECIFICATIONS, (vii) LOCATION, (viii) USE, (ix) CONDITION, (x) MERCHANTABILITY,
(xi) QUALITY, (xii) DESCRIPTION, (xiii) DURABILITY, (xiv) OPERATION, (xv) THE EXISTENCE OF ANY HAZARDOUS SUBSTANCE, HAZARDOUS CONDITION OR HAZARDOUS ACTIVITY OR
(xvi) COMPLIANCE OF THE LEASED PREMISES WITH ANY LAW OR LEGAL REQUIREMENT; AND ALL RISKS INCIDENT THERETO ARE TO BE BORNE BY TENANT. TENANT ACKNOWLEDGES THAT THE LEASED PREMISES IS OF ITS
SELECTION AND TO ITS SPECIFICATIONS AND THAT THE LEASED PREMISES HAS BEEN INSPECTED BY TENANT AND IS SATISFACTORY TO IT. IN THE EVENT OF ANY DEFECT OR DEFICIENCY IN ANY OF THE LEASED PREMISES OF ANY
NATURE, WHETHER LATENT OR PATENT, LANDLORD SHALL NOT HAVE ANY RESPONSIBILITY OR LIABILITY WITH RESPECT THERETO OR FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING STRICT LIABILITY IN TORT). THE
PROVISIONS OF THIS PARAGRAPH 3(b) HAVE BEEN NEGOTIATED, AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY WARRANTIES BY LANDLORD, EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF THE LEASED
PREMISES, ARISING PURSUANT TO THE UNIFORM COMMERCIAL CODE OR ANY OTHER LAW NOW OR HEREAFTER IN EFFECT OR ARISING OTHERWISE. 

        (c)   Tenant
represents to Landlord that Tenant has examined the title to the Leased Premises prior to the execution and delivery of this Lease and has found the same to be
satisfactory for the purposes contemplated hereby. Tenant acknowledges that (i) fee simple title (both legal and equitable) is in Landlord and that Tenant has only the leasehold right of
possession and use of the Leased Premises as provided herein, (ii) the Improvements conform to all material Legal Requirements and all Insurance Requirements, (iii) all easements
necessary or appropriate for the use or operation of the Leased Premises have been obtained, (iv) all contractors and subcontractors who have performed work on or supplied materials to the
Leased Premises have been fully paid, and all materials and supplies have been fully paid for, (v) the Improvements have been fully completed in all material respects in a workmanlike manner of
first class quality, and (vi) all Equipment necessary or appropriate for the use or operation of the Leased Premises has been installed and is presently fully operative in all material
respects. 

        (d)   Landlord
hereby assigns to Tenant, without recourse or warranty whatsoever, all assignable warranties, guaranties, indemnities and similar rights (collectively,
"Warranties") which Landlord may have against any manufacturer, seller, engineer, contractor or builder in respect of any of the Leased Premises. Such
assignment shall remain in effect until the expiration or earlier termination of this Lease, whereupon such assignment shall cease and all of Warranties, guaranties, indemnities and other rights shall
automatically revert to Landlord. In confirmation of such reversion Tenant shall execute and deliver promptly any certificate or other document reasonably required by Landlord. Landlord shall also
retain the right to enforce any guaranties upon the occurrence of an Event of Default. Tenant shall enforce the material Warranties in accordance with their respective terms. 

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        4.    Use of Leased Premises; Quiet Enjoyment.    

        (a)   Tenant
may occupy and use the Leased Premises for office, manufacturing, warehouse, distribution and related ancillary use and for no other purpose, without the prior
written consent of Landlord. Tenant shall not use or occupy or permit any of the Leased Premises to be used or occupied, nor do or permit anything to be done in or on any of the Leased Premises, in a
manner which would (i) violate any Law, Legal Requirement or Permitted Encumbrance, (ii) make void or voidable or cause any insurer to cancel any insurance required by this Lease, or
make it difficult or impossible to obtain any such insurance at commercially reasonable rates, (iii) make void or voidable, cancel or cause to be cancelled or release any of the Warranties,
except to the extent that making such Warranty void or canceling such Warranty does not have a material adverse effect on Landlord or the Leased Premises, (iv) cause structural injury to any of
the Improvements or (v) constitute a public or private nuisance or waste. 

        (b)   Subject
to the provisions hereof, so long as no Event of Default has occurred and is continuing, Tenant shall quietly hold, occupy and enjoy the Leased Premises
throughout the Term, without any hindrance, ejection or molestation by Landlord with respect to matters that arise after the date hereof, provided that Landlord or its agents may enter upon and
examine any of the Leased Premises at such reasonable times during Tenant's normal business hours as Landlord may select and upon reasonable notice to Tenant (except in the case of an emergency, in
which no notice shall be required) for the purpose of inspecting the Leased Premises, verifying compliance or non-compliance by Tenant with its obligations hereunder and the existence or
non-existence of an Event of Default or event which with the passage of time and/or notice would constitute an Event of Default, showing the Leased Premises to prospective Lenders and
purchasers and taking such other action with respect to the Leased Premises as is permitted by any provision hereof. 

        5.    Term.    

        (a)   Subject
to the provisions hereof, Tenant shall have and hold the Leased Premises for an initial term (such term, as extended or renewed in accordance with the provisions
hereof, being called the "Term") commencing on June 27, 2002 (the "Commencement Date") and ending
on the last day of the one hundred eightieth (I 80th) calendar month next following the date hereof (the "Expiration Date"). If all Rent
and all other sums due hereunder shall not have been fully paid by the end of the Term, Landlord may, at its option, extend the Term until all said sums shall have been fully paid. 

        (b)   Provided
that if, on or prior to the Expiration Date or any other Renewal Date (as hereinafter defined) this Lease shall not have been terminated pursuant to any
provision hereof, then Tenant shall have the right upon not less than eighteen (18) months prior written notice to Landlord to extend the Term on the Expiration Date and on the tenth
(10th) anniversary of the Expiration Date (the Expiration Date and such anniversary being referred to herein as a "Renewal Date"), for an
additional period of ten (10) years (each such extension, a "Renewal Term"). Any such extension of the Term shall be subject to all of the
provisions of this Lease, as the same may be amended, supplemented or modified (except that Tenant shall not have the right to any further Renewal Terms). 

        (c)   If
Tenant does not exercise its option to extend or further extend the Term, or if an Event of Default occurs, then Landlord shall have the right during the remainder of
the Term then in effect and, in any event, Landlord shall have the right during the last year of the Term, to (i) advertise the availability of the Leased Premises for sale or reletting and to
erect upon the Leased Premises signs (which shall be attractive and in compliance with Law) indicating such availability and (ii) show the Leased Premises to prospective purchasers or tenants
or their agents at such reasonable times during Tenant's normal business hours as Landlord may select. 

        6.    Basic Rent.    Tenant shall pay to Landlord, as annual rent for the Leased Premises during the Term, the amounts
determined in accordance with Exhibit "D" hereto ("Basic Rent"), commencing on 

8

 

the
twenty-fifth day of July, 2002, and thereafter on the same day of each October, January, April and July during the Term (each such day being a "Basic Rent Payment Date"). Each such rental payment
shall be made, at Landlord's sole discretion, (a) to or for the account of Landlord as directed in writing by Landlord and/or to such one or more other Persons, as directed in writing by
Landlord and in such proportions as Landlord may direct by fifteen (15) days' prior written notice to Tenant and (b) by wire transfer in Federal Funds to a United States bank account no
later than the applicable Basic Rent Payment Date (unless Landlord has not provided wire instructions to Tenant in which event Tenant shall make payment by check to Landlord at the address set forth
above or at such other address in the United States as Landlord may direct by fifteen (15) days prior written notice to Tenant). 

        7.    Additional Rent.    

        (a)   Tenant
shall pay and discharge, as additional rent (collectively, "Additional Rent"): 

        (i)    except
as otherwise specifically provided herein, all costs and expenses of Tenant, Landlord and any other Persons specifically referenced herein which are incurred in
connection or associated with (A) the use, non-use, occupancy, monitoring, possession, operation, condition, design, construction, maintenance, alteration, repair or restoration of
any of the Leased Premises, (B) the performance of any of Tenant's obligations under this Lease, (C) any sale or other transfer of any of the Leased Premises to Tenant under this Lease,
(D) any Condemnation proceedings, (E) the adjustment, settlement or compromise of any insurance claims involving or arising from any of the Leased Premises, (F) the prosecution,
defense or settlement of any litigation involving or arising from any of the Leased Premises, this Lease, or the sale of the Leased Premises to Landlord, (G) the exercise or enforcement by
Landlord, its successors and assigns, of any of its rights under this Lease, (H) any amendment to or modification or termination of this Lease made at the request of Tenant,
(I) attorneys fees of Landlord's counsel not to exceed the sum actually and reasonably incurred and reasonable internal Costs of Landlord incurred in connection with any act undertaken by
Landlord (or its counsel) at the request of Tenant, or incurred in connection with any act of Landlord performed to the extent permitted herein on behalf of Tenant, (J) the reasonable internal
Costs of Landlord incurred in connection with any act undertaken by Landlord at the request of Tenant or Tenant's failure to act promptly in an emergency situation and (K) any other items
specifically required to be paid by Tenant under this Lease; 

        (ii)   after
the date all or any portion of any installment of Basic Rent is due and not paid by the applicable Basic Rent Payment Date, an amount (the
"Late Charge") equal to five percent (5%) of the amount of such unpaid installment or portion thereof, provided, however, that with respect to the first
late payment of all or any portion of any installment of Basic Rent in any Lease Year, the Late Charge shall not be due and payable unless the Basic Rent has not been paid within five (5) days'
following the due date thereof; 

        (iii)  a
sum equal to the positive difference between (A) any additional sums (including any late charge, default penalties, interest and attorneys' fees of Lender's
counsel not to exceed the sum actually and reasonably incurred) which are payable by Landlord to any Lender under any Note solely by reason of Tenant's late payment or non-payment of Basic
Rent or by reason of an Event of Default and (B) the amount paid pursuant to Paragraph 7(a)(ii) on the portion of Basic Rent attributable to three (3) months of principal
and interest payments on the Note then outstanding; and 

        (iv)  interest
at the rate (the "Default Rate") of five percent (5%) over the Prime Rate per annum on the following sums until
paid in full: (A) all overdue installments of Basic Rent from the respective due dates thereof, (B) all overdue amounts of Additional Rent relating to obligations which Landlord shall
have paid on behalf of Tenant to the extent permitted herein, from the date of payment thereof by Landlord, provided Landlord gives Tenant notice thereof within fifteen (15) days after said
payment and (C) all other overdue amounts of Additional Rent that are payable to Landlord hereunder, from the date when any such amount becomes overdue. 

9

   
        (b)   Tenant shall pay and discharge (i) any Additional Rent referred to in Paragraph 7(a)(i) when the same shall become due, provided that amounts which
are billed to Landlord or any third party, but not to Tenant, shall be paid within fifteen (15) days after Landlord's demand for payment thereof, and (ii) any other Additional Rent,
within fifteen (15) days after Landlord's demand for payment thereof. 

        (c)   In
no event shall amounts payable under Paragraph 7(a)(ii), (iii) and (iv) exceed the maximum amount permitted by applicable Law. 

        8.    Net Lease; Non-Terminability.    

        (a)   This
is a net lease and all Monetary Obligations shall, unless otherwise specifically provided herein, be paid without notice or demand and without set-off,
counterclaim, recoupment, abatement, suspension, deferment, diminution, deduction, reduction or defense (collectively, a "Set-Off"). 

        (b)   This
Lease and the rights of Landlord and the obligations of Tenant hereunder shall not be affected by any event or for any reason or cause whatsoever foreseen or
unforeseen. 

        (c)   The
obligations of Tenant hereunder shall be separate and independent covenants and agreements, all Monetary Obligations shall continue to be payable in all events (or,
in lieu thereof, Tenant shall pay amounts equal thereto), and the obligations of Tenant hereunder shall continue unaffected unless the requirement to pay or perform the same shall have been terminated
pursuant to an express provision of this Lease. All Rent payable by Tenant hereunder shall constitute "rent" for all purposes (including Section 502(b)(6) of the Federal Bankruptcy Code). 

        (d)   Except
as otherwise expressly provided herein, Tenant shall have no right and hereby waives all rights which it may have under any Law (i) to quit, terminate or
surrender this Lease or any of the Leased Premises, or (ii) to any Set-Off of any Monetary Obligations. 

        9.    Payment of Impositions.    

        (a)   Tenant
shall, before interest or penalties are due thereon, pay and discharge all taxes (including real and personal property, franchise, sales, use, gross receipts and
rent taxes), all charges for any easement or agreement maintained for the benefit of any of the Leased Premises, all assessments and levies, all permit, inspection and license fees, all rents and
charges for water, sewer, utility and communication services relating to any of the Leased Premises, all ground rents and all other public charges whether of a like or different nature, even if
unforeseen or extraordinary, imposed upon or assessed against (i) Tenant, (ii) Tenant's leasehold interest in the Leased Premises, (iii) any of the Leased Premises, or
(iv) Landlord as a result of or arising in respect of the acquisition, ownership, occupancy, leasing, use, possession or sale of any of the Leased Premises, any activity conducted on any of the
Leased Premises, or the Rent (collectively, the "Impositions"); provided, that nothing herein shall obligate Tenant to pay (A) income (except
gross receipts or other gross tax imposed on rental income), excess profits, franchise, excise, corporate, withholding or other similar taxes (unless such taxes are in lieu of or a substitute for any
other tax, assessment or other charge upon or with respect to the Leased Premises which, if it were in effect, would be payable by Tenant under the provisions hereof or by the terms of such tax,
assessment or other charge), (B) any estate, inheritance, succession, gift or similar tax imposed on Landlord or (C) any capital gains, transfer, recording or other similar tax imposed
on Landlord in connection with the sale of the Leased Premises to any Person except for transfer, recording or similar taxes payable by Landlord in connection with any transfer of the Leased Premises
to Tenant or its designee. If any Imposition may be paid in installments with or without interest but without penalty, Tenant shall have the option to pay such Imposition in installments; in such
event, Tenant shall be liable only for those installments which accrue or become due and payable during the Term. Tenant shall prepare and file all tax reports required by governmental authorities
which relate to the Impositions. Tenant shall deliver to Landlord (1) copies of all settlements and notices pertaining to the Impositions which may be issued by any governmental authority
within ten (10) days after Tenant's receipt thereof, (2) receipts or other evidence of payment satisfactory to Landlord for payment of real 

10

 

estate
taxes and assessments required to be paid by Tenant hereunder within thirty (30) days after the due date thereof, (3) to the extent available from the applicable taxing authority,
receipts for payment of all taxes required to be paid by Tenant hereunder within fifteen (15) days after Landlord's request therefor, and (4) to the extent available from the applicable
taxing authority, receipts for payment of all other Impositions within fifteen (15) days after Landlord's request therefor. 

        (b)   Following
the occurrence of an Event of Default, Tenant shall, if required by Lender, establish an escrow account with an Institutional Lender selected by Landlord, as
trustee, and shall deposit such amounts in escrow to equal amounts required to be on deposit with Lender (each an "Escrow Payment") so that there shall
be in an escrow account an amount sufficient to pay the Escrow Charges (as hereinafter defined) as they become due. As used herein, "Escrow Charges"
shall mean real estate taxes and assessments on or with respect to the Leased Premises or payments in lieu thereof and premiums on any insurance required by this lease. Institutional Lender may only
make disbursements from the escrow account to make payments of Escrow Charges as they become due. An escrow account shall be required only as long as an Event of Default does exist or Lender requires
Landlord to maintain similar escrow accounts. As long as the Escrow Payments are being held by Institutional Lender, the Escrow Payments shall not be commingled with any other funds, shall be held in
escrow, shall be held in an interest bearing account and interest thereon shall accrue for the benefit of Tenant from the date such monies are received and invested until the date such monies are
disbursed to pay Escrow Charges. Institutional Lender shall apply or cause to be applied the Escrow Payments to the timely payment of the Escrow Charges in such order or priority as Landlord
reasonably shall determine or as required by law. If at any time the Escrow Payments theretofore paid to Institutional Lender shall be insufficient for the payment of the Escrow Charges, Tenant,
within ten (10) days after Institutional Lender's demand notice therefor, shall pay the amount of the deficiency to Institutional Lender. 

        (c)   Following
the failure of Tenant to repair and/or maintain the Leased Premises as required hereby and notice thereof, and provided Landlord is required by a Lender that
is an Institutional Lender to pay into escrow funds necessary to pay for the correction of such deferred maintenance and/or deferred repairs ("Repair Escrow Charges") and Tenant has not commenced to
correct same within fifteen (15) days following said written notice from Landlord, Tenant shall pay to Landlord such amount ("Repair Escrow Payment") as said Lender reasonably shall determine
is necessary to pay the Repair Escrow Charges. Institutional Lender shall apply or cause to be applied the Repair Escrow Payment to reimburse Tenant for Repair Escrow Charges and any excess shall be
paid to Tenant upon substantial completion of said work or, following an Event of Default, to reimburse Landlord for Repairs Escrow Charges and any excess shall be used as permitted herein. 

        10.    Compliance with Laws and Easement Agreements, Environmental Matters.    

        (a)   Tenant
shall, at its expense, comply with and conform to, and cause the Leased Premises and any other Person occupying any part of the Leased Premises to comply with and
conform to, all Insurance Requirements and Legal Requirements (including all applicable Environmental Laws). Tenant shall not at any time (i) cause, permit or suffer to occur any Environmental
Violation or (ii) permit any sublessee, assignee or other Person occupying the Leased Premises under or through Tenant to cause, permit or suffer to occur any Environmental Violation and, at
the request of Landlord, Tenant shall promptly undertake any appropriate response action to correct any existing Environmental Violation, however immaterial. 

        (b)   Tenant,
at its sole cost and expense, will at all times promptly and faithfully abide by, discharge and perform all of the covenants, conditions and agreements contained
in any Easement Agreement on the part of Landlord or the occupier to be kept and performed thereunder that is a Permitted Encumbrance. Tenant will not alter, modify, amend or terminate any Easement
Agreement, give any consent or approval thereunder, or enter into any new Easement Agreement without, in each case, the prior written consent of Landlord. As long as no Event of Default exists
Landlord will not 

11

 

alter,
modify, amend or terminate any Easement Agreement, give any consent or approval thereunder or enter into any new Easement Agreement without, in each case, the prior written consent of Tenant. 

        (c)   Upon
prior written notice from Landlord, Tenant shall permit such qualified persons as Landlord may designate ("Site
Reviewers") to visit the Leased Premises and perform environmental site investigations and assessments ("Site Assessments") on
the Leased Premises (i) in connection with any sale, financing or refinancing of the Leased Premises, (ii) within the six month period prior to the expiration of the Term,
(iii) if required by Lender that is an Institutional Lender or if required by the terms of any credit facility from an Institutional Lender to which Landlord is bound, (iv) if an Event
of Default exists, or (v) at any other time that, in the opinion of Landlord or Lender, a reasonable basis exists to believe that an Environmental Violation or any condition that could
reasonably be expected to result in any Environmental Violation exists. Such Site Assessments may include both above and below the ground testing for Environmental Violations and such other tests as
may be necessary, in the opinion of the Site Reviewers, to conduct the Site Assessments. Tenant shall supply to the Site Reviewers such historical and operational information regarding the Leased
Premises as may be in Tenant's possession and reasonably requested by the Site Reviewers to facilitate the Site Assessments, and shall make available for meetings with the Site Reviewers appropriate
personnel having knowledge of such matters. All Site Reviewers shall be required to provide evidence of liability insurance for the benefit of, and reasonably adequate to, Landlord and Tenant. The
cost of performing and reporting Site Assessments shall be paid by Landlord unless a material Environmental Violation is found, in which event it shall be paid by Tenant. 

        (d)   If
an Environmental Violation occurs or is found to exist and, in Landlord's reasonable judgment, the cost of remediation of, or other response action with respect to,
the same is likely to exceed $1,000,000 and if Tenant does not act promptly to commence remediation of such other action as is required by the applicable governmental authorities, Tenant shall provide
to Landlord, within ten (10) days after Landlord's request therefor, adequate financial assurances that Tenant will effect such remediation in accordance with applicable Environmental Laws.
Such financial assurances shall be, at the option of Tenant, (i) a bond reasonably satisfactory to Landlord in form and substance, or (ii) an irrevocable letter of credit from an
Institutional Lender satisfactory to Landlord and in substantially the form attached hereto as Exhibit "F", and, in either case, in an amount equal to or greater than Landlord's reasonable estimate,
based upon a Site Assessment performed pursuant to Paragraph 10(c), of the anticipated cost of such remedial action. 

        (e)   Tenant
shall notify Landlord immediately after becoming aware of any Environmental Violation (or alleged Environmental Violation) or noncompliance with any of the
covenants contained in this Paragraph 10 and shall forward to Landlord immediately upon receipt thereof copies of all orders, reports, notices, permits, applications or other communications
relating to any such violation or noncompliance. 

        (f)    All
future leases, subleases or concession agreements relating to the Leased Premises entered into by Tenant shall contain covenants of the other party not to at any
time (i) cause any Environmental Violation to occur or (ii) permit any Person occupying the Leased Premises through said subtenant or concessionaire to cause any Environmental Violation
to occur. 

        11.    Liens; Recording.    

        (a)   Tenant
shall not, directly or indirectly, create or permit to be created or to remain and shall promptly discharge, remove or bond over any lien, levy or encumbrance on
any of the Leased Premises or on any Rent or any other sums payable by Tenant under this Lease, other than any Mortgage or Assignment, the Permitted Encumbrances, Easement Agreement and any mortgage,
lien, encumbrance or other charge created by or resulting solely from any act or omission of Landlord. NOTICE IS HEREBY GIVEN THAT LANDLORD SHALL NOT BE LIABLE FOR ANY LABOR, SERVICES OR MATERIALS
FURNISHED OR TO BE FURNISHED TO TENANT OR TO ANYONE 

12

 

HOLDING
OR OCCUPYING ANY OF THE LEASED PREMISES THROUGH OR UNDER TENANT, AND THAT NO MECHANICS' OR OTHER LIENS FOR ANY SUCH LABOR, SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT THE INTEREST OF
LANDLORD IN AND TO ANY OF THE LEASED PREMISES. LANDLORD MAY AT ANY TIME, AND AT LANDLORD'S REQUEST TENANT SHALL PROMPTLY, POST ANY REASONABLE NOTICES ON THE LEASED PREMISES REGARDING SUCH
NON-LIABILITY OF LANDLORD. 

        (b)   Tenant
shall execute, deliver and record, file or register (collectively, "record") all such instruments as may be
required or permitted by any present or future Law in order to evidence the respective interests of Landlord and Tenant in the Leased Premises, and shall cause a memorandum of this Lease (or, if such
a memorandum cannot be recorded, this Lease), and any supplement hereto or thereto, to be recorded in such manner and in such places as may be required or permitted by any present or future Law in
order to protect the validity and priority of this Lease. 

        12.    Maintenance and Repair.    

        (a)   Tenant
shall at all times maintain the Leased Premises and the Adjoining Property in as good repair and appearance as they are in on the date hereof (subject to ordinary
wear and tear), and, in the case of the Equipment, in as good mechanical condition as it was on the date hereof, except for ordinary wear and tear. Tenant shall take every other action necessary or
appropriate for the preservation and safety of the Leased Premises. Tenant shall promptly make all Alterations of every kind and nature, whether foreseen or unforeseen, which may be required to comply
with the foregoing requirements of this Paragraph 12(a). Landlord shall not be required to make any Alteration, whether foreseen or unforeseen, or to maintain any of the Leased Premises or
Adjoining Property in any way, and Tenant hereby expressly waives any right which may be provided for in any Law now or hereafter in effect to make Alterations at the expense of Landlord or to require
Landlord to make Alterations. Any Alteration made by Tenant pursuant to this Paragraph 12 shall be made in conformity with the provisions of Paragraph 13. 

        (b)   If
any Improvement, now or hereafter constructed, shall (i) encroach upon any setback or any property, street or right-of-way adjoining
the Leased Premises, (ii) violate the provisions of any restrictive covenant affecting the Leased Premises that is a Permitted Encumbrance or (iii) hinder or obstruct any easement or
right-of-way to which any of the Leased Premises is subject, Tenant shall, promptly after receiving notice or otherwise acquiring knowledge thereof, either (A) obtain
from all necessary parties waivers or settlements of all claims, liabilities and damages resulting from each such encroachment, violation, hindrance, obstruction or impairment, whether the same shall
affect Landlord, Tenant or both, or (B) take such action as shall be necessary to remove all such encroachments, hindrances or obstructions and to end all such violations or impairments,
including, if necessary, making Alterations. 

        (c)   No
later than September 30, 2002 (i) Tenant shall either (A) obtain a permanent, irrevocable variance from the applicable governmental authority
which permits Tenant to legally occupy the Leased Premises with the 115 parking spaces currently located on the Land or (B) construct or otherwise provide on the Leased Premises the additional
twenty-four (24) parking spaces which are required by Law and (ii) Tenant shall cause the portion of the Sewer Line Easement dated April 24, 1989 and recorded in Deed
Book 447, Page 320, Forsyth County, Georgia, as affected by that certain Agreement Regarding Sewer Line Easement, dated December 23, 1994, filed for record in Deed Book 816, Page 142, aforesaid
records which is underneath the Improvements to be abandoned or otherwise removed of record. 

13

 

        13.    Alterations and Improvements.    

        (a)   Tenant
shall have the right, without having obtained the prior written consent of Landlord and Lender and provided that no Event of Default then exists, (i) to
make non-structural Alterations or a series of related non-structural Alterations that, as to any such Alterations or series of related Alterations, do not cost in excess of
Major Alterations Amount and (ii) to install Equipment in the Improvements or accessions to the Equipment that, as to such Equipment or accessions, do not cost in excess of Major Alterations
Amount, so long as at the time of construction or installation of any such Equipment or Alterations no Event of Default exists. If the cost of any non-structural Alterations, series of
related non-structural Alterations, Equipment or accessions thereto is in excess of Major Alterations Amount, the prior written approval of Landlord and Lender that is an Institutional
Lender which shall not be unreasonably withheld shall be required or if Tenant desires to make structural Alterations to the Leased Premises. Tenant shall not construct upon the Land any additional
buildings without having first obtained the prior written consent of Landlord and any Lender that is an Institutional Lender which shall not be unreasonably withheld. Landlord shall have the right to
require Tenant to remove any Alterations except for those Alterations required by Law, non-structural Alterations made in the ordinary course of property maintenance, Alterations that do
not in the aggregate over the Term exceed the Non-Structural Approval Amount or Alterations for which Landlord has consented in writing that removal will not be required. Landlord agrees
that it will respond promptly to any request from Tenant to permit Alterations to remain at the expiration of the Term. 

        (b)   If
Tenant makes any Alterations pursuant to this Paragraph 13 or as required by Paragraph 12 or 17 (such Alterations and actions being hereinafter
collectively referred to as "Work") whether or not Landlord's consent is required, then (i) the market value of the Leased Premises shall not be
lessened by any such Work or its usefulness impaired, (ii) all such Work shall be performed by Tenant in a good and workmanlike manner, (iii) all such Work shall be expeditiously
completed in compliance with all Legal Requirements, (iv) all such Work shall comply with the Insurance Requirements, (v) if any such Work involves the replacement of Equipment or parts
thereto, all replacement Equipment or parts shall be in the condition required by Paragraph 12(a), (vi) Tenant shall promptly discharge or remove all liens filed against any of the
Leased Premises arising out of such Work, (vii) Tenant shall procure and pay for all permits and licenses required in connection with any such Work, (viii) all such Work shall be the
property of Landlord and shall be subject to this Lease, and Tenant shall execute and deliver to Landlord any reasonable document requested by Landlord evidencing the assignment to Landlord of all
estate, right, title and interest (other than the leasehold estate created hereby) of Tenant or any other Person thereto or therein, and (ix) Tenant shall comply, to the extent requested by
Landlord or required by this Lease, with the provisions of Paragraphs 12(a) and, if the work is in excess of the Major Alterations Amount, with the provisions of 19(a)(i), whether or not such Work
involves restoration of the Leased Premises. 

        14.    Permitted Contests.    Notwithstanding any other provision of this Lease, Tenant shall not be required to
(a) pay any Imposition, (b) discharge or remove any lien referred to in Paragraph 11 or 13 or (c) take any action with respect to any encroachment, violation, hindrance,
obstruction, impairment or other matter referred to in Paragraph 12(b) (such non-compliance with the terms hereof being hereinafter referred to collectively as "Permitted
Violations") and may dispute or contest the same, so long as at the time of such contest no Event of Default exists and so long as Tenant shall contest, in good faith, the existence, amount or
validity thereof, the amount of the damages caused thereby, or the extent of its or Landlord's liability therefor by appropriate proceedings which shall operate during the pendency thereof to prevent
or stay (i) the collection of, or other realization upon, the Permitted Violation so contested, (ii) the sale, forfeiture or loss of any of the Leased Premises or any Rent to satisfy or
to pay any damages caused by any Permitted Violation, (iii) any interference with the use or occupancy of any of the Leased Premises, (iv) any interference with the payment of any Rent,
or 

14

 

(v) the
cancellation or increase in the rate of any insurance policy or a statement by the carrier that coverage will be denied. Tenant shall provide Landlord security which is satisfactory, in
Landlord's reasonable judgment, to assure that such Permitted Violation is corrected, including all Costs, interest and penalties that may be incurred or become due in connection therewith. While any
proceedings which comply with the requirements of this Paragraph 14 are pending and the required security is held by Landlord, Landlord shall not have the right to correct any Permitted
Violation thereby being contested unless Landlord is required by law to correct such Permitted Violation and Tenant's contest does not prevent or stay such requirement as to Landlord. Each such
contest shall be promptly and diligently prosecuted by Tenant to a final conclusion, except that Tenant, so long as the conditions of this Paragraph 14 are at all times complied with, has the
right to attempt to settle or compromise such contest through negotiations. Tenant shall pay any and all losses, judgments, decrees and Costs in connection with any such contest and shall, promptly
after the final determination of such contest, fully pay and discharge the amounts which shall be levied, assessed, charged or imposed or be determined to be payable therein or in connection
therewith, together with all penalties, fines, interest and Costs thereof or in connection therewith, and perform all acts the performance of which shall be ordered or decreed as a result thereof. No
such contest shall subject Landlord to the risk of any civil or criminal liability. 

        15.    Indemnification.    

        (a)   Tenant
shall pay, protect, indemnify, defend, save and hold harmless Landlord, Lender and all other Persons described in Paragraph 30 (each an
"Indemnitee") from and against any and all liabilities, losses, damages (including punitive damages), penalties, Costs (including attorneys' fees and
costs not to exceed the sum actually and reasonably incurred), causes of action, suits, claims, demands or judgments of any nature whatsoever, howsoever caused, without regard to the form of action
and whether based on strict liability, negligence or any other theory of recovery at law or in equity, except for the gross negligence or willful misconduct of Landlord or the Indemnitee seeking
indemnification, arising from (i) any matter pertaining to the use, non-use, occupancy, operation, condition, design, construction, maintenance, repair or restoration of the Leased
Premises or Adjoining Property, (ii) any casualty in any manner arising from the Leased Premises or Adjoining Property, whether or not Indemnitee has or should have knowledge or notice of any
defect or condition causing or contributing to said casualty, (iii) any violation by Tenant of any provision of this Lease, any contract or agreement to which Tenant is a party, any Legal
Requirement or any Permitted Encumbrance or any encumbrance Tenant consented to or (iv) any alleged, threatened or actual Environmental Violation, including (A) liability for response
costs and for costs of removal and remedial action incurred by the United States Government, any state or local governmental unit or any other Person, or damages from injury to or destruction or loss
of natural resources, including the reasonable costs of assessing such injury, destruction or loss, incurred pursuant to Section 107 of CERCLA, or any successor section or act or provision of
any similar state or local Law, (B) liability for costs and expenses of abatement, correction or clean-up, fines, damages, response costs or penalties which arise from the
provisions of any of the other Environmental Laws and (C) liability for personal injury or property damage arising under any statutory or common-law tort theory, including damages
assessed for the maintenance of a public or private nuisance or for carrying on of a dangerous activity. 

        (b)   In
case any action or proceeding is brought against any Indemnitee by reason of any such claim, (i) Tenant may, except in the event of a conflict of interest or a
dispute between Tenant and any such Indemnitee or during the continuance of an Event of Default, retain its own counsel and defend such action (it being understood that Landlord may employ counsel of
its choice to monitor the defense of any such action, the cost of which shall not be paid by Tenant) and (ii) such Indemnitee shall notify Tenant to resist or defend such action or proceeding
by retaining counsel reasonably satisfactory to such Indemnitee (and any counsel selected by Tenant's insurance company shall be acceptable), and such Indemnitee will cooperate and assist in the
defense of such action or proceeding 

15

 

if
reasonably requested so to do by Tenant. In the event of a conflict of interest or dispute or during the continuance of an Event of Default, Landlord shall have the right to select counsel and
shall by paid by Tenant. Counsel fees shall not exceed the sum actually and reasonably incurred. 

        (c)   The
obligations of Tenant under this Paragraph 15 shall survive any termination, expiration or rejection in bankruptcy of this Lease. 

        16.    Insurance.    

        (a)   Tenant
shall maintain the following insurance on or in connection with the Leased Premises: 

        (i)    Insurance
against risk of physical loss or damage to the Improvements and Equipment as provided under "Special Form" coverage, and including customarily excluded perils
of hail, windstorm, flood coverage (if the Leased Premises is in a flood zone), earthquake, in amounts no less than the actual replacement cost of the Improvements and Equipment; provided that, if
Tenant's insurance company is unable or unwilling to include any of all of such excluded perils, Tenant shall have the option of purchasing coverage against such perils from another insurer on a
"Difference in Conditions" form or through a stand-alone policy. Such policies shall contain Replacement Cost and Agreed Amount Endorsements and shall contain deductibles not more than $250,000 (which
may be increased based on market availability as acceptable to Lender). 

        (ii)   Commercial
General Liability Insurance (including but not limited to Incidental Medical Malpractice and Host Liquor Liability) and Business Automobile Liability
Insurance (including Non-Owned and Hired Automobile Liability) against claims for personal and bodily injury, death or property damage occurring on, in or as a result of the use of the
Leased Premises, in an amount not less than $10,000,000 per occurrence/annual aggregate and all other coverage extensions that are usual and customary for properties of this size, type, location and
use and shall contain deductibles not more than $250,000 (which may be increased based on market availability as acceptable to Lender). 

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

        (iv)  Comprehensive
Boiler and Machinery Insurance on any of the Equipment or any other equipment on or in the Leased Premises, in an amount not less than $5,000,000 per
accident for damage to property. Either such Boiler and Machinery policy or the All-Risk policy required in (i) above shall include at least $3,000,000 per incidence for
Off-Premises Service Interruption, Expediting Expenses, Ammonia Contamination if ammonia is used by Tenant in the operation of its business, and Hazardous Materials Clean-Up
Expense and may contain a deductible not to exceed $250,000 (which may be increased based on market availability as acceptable to Lender). 

        (v)   Business
Income/Extra Expense Insurance at limits sufficient to cover 100% of the period of indemnity not less than eighteen (18) months from time of loss. Such
insurance shall name Proceeds Trustee as loss payee solely with respect to Rent payable to or for the benefit of Landlord as its interest appears under this Lease. 

        (vi)  During
any period in which substantial Alterations at the Leased Premises are being undertaken, builder's risk insurance covering the total completed value including
any "soft costs" with respect to the Improvements being altered or repaired (on a completed value, non-reporting basis), replacement cost of work performed and equipment, supplies and
materials furnished in connection with such construction or repair of Improvements or Equipment, together with such "soft cost" endorsements and such other endorsements as Landlord may reasonably
require and 

16

 

general
liability, worker's compensation and automobile liability insurance with respect to the Improvements being constructed, altered or repaired. 

        (vii) Such
other insurance (or other terms with respect to any insurance required pursuant to this Paragraph 16, including without limitation amounts of coverage,
deductibles, form of mortgagee clause) on or in connection with any of the Leased Premises as Landlord or Lender may reasonably require as is usual and customary for properties of the use, size, type
and location of the Leased Premises. 

        (b)   The
insurance required by Paragraph 16(a) shall be written by companies which have a Best's rating of—A-:VII or above and a claims paying
ability rating of A- or better by Standard & Poor's Rating Services, a division of the McGraw Hill Companies, Inc. or equivalent rating agency approved by Landlord in its
reasonable discretion except that prior to November 20, 2002 the insurance required under Paragraph 16(a)(ii) may be written by a company that has a Best's rating of at
least—A-:VII but is not rated by Standard & Poor's Rating Services or any equivalent rating agency approved by Landlord in its reasonable discretion. All such insurance
companies shall be admitted in, and approved to write insurance policies by, the State Insurance Department for the State. The insurance policies (i) shall be for such terms (not to exceed
three years) as Landlord may reasonably approve and (ii) shall be in amounts sufficient at all times to satisfy any coinsurance requirements thereof. The insurance referred to in Paragraphs
16(a)(i), 16(a)(iv) and 16(a)(vi) shall name Landlord as additional insured and Proceeds Trustee as loss payee and Tenant as its interest may appear. The insurance referred to in
Paragraph 16(a)(ii) shall name Landlord and Lender as additional insureds, and the insurance referred to in Paragraph 16(a)(v) shall name Landlord as additional insured and
Proceeds Trustee as loss payee with respect to the Rent. If said insurance or any part thereof shall expire, be withdrawn, become void, voidable, unreliable or unsafe for any reason, including a
breach of any condition thereof by Tenant or the failure or impairment of the capital of any insurer, or if for any other reason whatsoever said insurance shall become reasonably unsatisfactory to
Landlord, Tenant shall immediately obtain new or additional insurance reasonably satisfactory to Landlord in compliance with the provisions hereof. 

        (c)   Each
insurance policy referred to in clauses (i), (iv), (v) and (vi) of Paragraph 16(a) shall contain the standard New York mortgagee clauses in
favor of Lender. Each policy required by any provision of Paragraph 16(a), except clause (iii) thereof, shall provide that it may not be cancelled, substantially modified or allowed to
lapse on any renewal date except after thirty (30) days' prior notice to Landlord and Lender. Each such policy shall also provide that any loss otherwise payable thereunder shall be payable
notwithstanding (i) any act or omission of Landlord or Tenant which might, absent such provision, result in a forfeiture of all or a part of such insurance payment, (ii) the occupation
or use of any of the Leased Premises for purposes more hazardous than those permitted by the provisions of such policy, (iii) any foreclosure or other action or proceeding taken by Lender
pursuant to any provision of the Mortgage, Note, Assignment or other document evidencing or securing the Loan upon the happening of an event of default therein or (iv) any change in title to or
ownership of any of the Leased Premises. 

        (d)   Unless
insurance premiums are being deposited by Tenant pursuant to Paragraph 9(b), Tenant shall pay as they become due all premiums for the insurance required by
Paragraph 16(a), shall renew or replace each policy and deliver to Landlord evidence of the payment of the full premium therefor or installment then due at least thirty (30) days prior
to the expiration date of such policy. Tenant shall promptly after notice deliver to Landlord all original certificates of insurance or, if required by Lender, original or certified policies. 

        (e)   Anything
in this Paragraph 16 to the contrary notwithstanding, any insurance which Tenant is required to obtain pursuant to Paragraph 16(a) may be carried
under a "blanket" or umbrella policy or policies covering other properties or liabilities of Tenant and if desired by Tenant, affiliates of Tenant, 

17

 

provided
that such "blanket" or umbrella policy or policies otherwise comply with the provisions of this Paragraph 16 and provided further that Tenant shall provide to Landlord a Statement of
Values which shall be reviewed annually and amended as necessary based on Replacement Cost Valuations. The original or a certified copy of the relevant portions of each such "blanket" or umbrella
policy shall promptly after notice be delivered to Landlord. 

        (f)    Tenant
shall promptly comply with and conform to (i) all provisions of each insurance policy required by this Paragraph 16 and (ii) all requirements
of the insurers thereunder applicable to Landlord, Tenant or any of the Leased Premises or to the use, manner of use, occupancy, possession, operation, maintenance, alteration or repair of any of the
Leased Premises, even if such compliance necessitates Alterations or results in interference with the use or enjoyment of any of the Leased Premises. 

        (g)   Tenant
shall not carry separate insurance concurrent in form or contributing in the event of a Casualty with that required in this Paragraph 16 unless
(i) Landlord and Lender are included therein as additional insureds, with loss payable as provided herein, and (h) such separate insurance complies with the other provisions of this
Paragraph 16. Tenant shall immediately notify Landlord of such separate insurance and shall deliver to Landlord the original policies or certified copies thereof. 

        (h)   All
policies shall contain effective waivers by the carrier against all claims for insurance premiums against Landlord and shall contain full waivers of subrogation
against the Landlord. 

        (i)    All
proceeds of any insurance required under Paragraph 16(a) shall be payable as follows: 

        (i)    Proceeds
payable under clauses (ii), (iii) and (iv) of Paragraph 16(a) and proceeds attributable to the general liability coverage of Builder's Risk
insurance under clause (vi) of Paragraph 16(a) shall be payable to the Person entitled to receive such proceeds. 

        (ii)   Proceeds
of insurance required under clause (i) of Paragraph 16(a) and proceeds attributable to Builder's Risk insurance (other than its general liability
coverage provisions) under clause (vi) of Paragraph 16(a) shall be payable to Proceeds Trustee and applied as set forth in Paragraph 17 or, if applicable, Paragraph 18.
Tenant shall apply the Net Award received by Tenant to restoration of the Leased Premises in accordance with the applicable provisions of this Lease unless a Termination Event shall have occurred and
Tenant has given a Termination Notice. 

18

   
        17.    Casualty and Condemnation.    

        (a)    If
any Casualty to the Leased Premises occurs Tenant shall give Landlord and Lender immediate notice thereof. So long as no Event of Default exists Tenant is hereby
authorized to adjust, collect and compromise all claims under any of the insurance policies required by Paragraph 16(a) (except public liability insurance claims payable to a Person other than
Tenant, Landlord or Lender) and to execute and deliver on behalf of Landlord and Lender all necessary proofs of loss, receipts, vouchers and releases required by the insurers and Landlord shall have
the right, if Tenant shall fail to do so, to join with Tenant therein. Any final adjustment, settlement or compromise of any such claim shall be subject to the prior written approval of Landlord, and
Landlord shall have the right, if Tenant shall fail to do so, to prosecute or contest, or to require Tenant to prosecute or contest, any such claim, adjustment, settlement or compromise. If an Event
of Default exists, Tenant shall not be entitled to adjust, collect or compromise any such claim or to participate with Landlord in any adjustment, collection and compromise of the Net Award payable in
connection with a Casualty. Tenant agrees to sign, upon the request of Landlord, all such proofs of loss, receipts, vouchers and releases. Each insurer is hereby authorized and directed to make
payment under said policies directly to Proceeds Trustee instead of to Landlord and Tenant jointly, and Tenant hereby appoints Proceeds Trustee as Tenant's attorneys-in-fact to
endorse any draft therefor. The rights of Landlord under this Paragraph 17(a) with respect to the rights of Landlord under the second and third sentences of this Paragraph 17(a) shall be
extended to a Lender that is an Institutional Lender if and to the extent that any Mortgage so provides, and Tenant is notified in writing thereof. 

        (b)    Tenant,
immediately upon receiving a Condemnation Notice, shall notify Landlord and Lender thereof. So long as no Event of Default exists, Tenant is authorized to
collect, settle and compromise the amount of any Net Award and Landlord shall have the right to join with Tenant herein. If an Event of Default exists, Landlord shall be authorized to collect, settle
and compromise the amount of any Net Award and Tenant shall not be entitled to participate with Landlord in any Condemnation proceeding or negotiations under threat thereof or to contest the
Condemnation or the amount of the Net Award therefor. No agreement with any condemnor in settlement or under threat of any Condemnation shall be made by Tenant without the written consent of Landlord.
Subject to the provisions of this Paragraph 17(b), Tenant hereby irrevocably assigns to Proceeds Trustee any award or payment to which Tenant is or may be entitled by reason of any
Condemnation, whether the same shall be paid or payable for Tenant's leasehold interest hereunder or otherwise; but nothing in this Lease shall impair Tenant's right to any award or payment on account
of Tenant's trade fixtures, equipment or other tangible property which is not part of the Equipment, moving expenses or loss of business, if available, to the extent that and so long as (i) if
permitted by Law Tenant shall have the right to make, and does make, a separate claim therefor against the condemnor and (ii) such claim does not in any way reduce either the amount of the
award otherwise payable to Landlord for the Condemnation of Landlord's fee interest in the Leased Premises or the amount of the award (if any) otherwise payable for the Condemnation of Tenant's
leasehold interest hereunder. The rights of Landlord under this Paragraph 17(b) shall also be extended to a Lender that is an Institutional Lender if and to the extent that any Mortgage so
provides and Tenant is notified in writing thereof. 

        (c)    If
any Partial Casualty (whether or not insured against) or Partial Condemnation shall occur, this Lease shall continue, notwithstanding such event, and there shall be
no abatement or reduction of any Monetary Obligations except that each quarterly installment of Basic Rent shall be reduced by the amount of insurance proceeds paid to Proceeds Trustee pursuant to
Paragraph I6(a)(v) for such quarter. Promptly after such Partial Casualty or Partial Condemnation, Tenant, as required in Paragraph 12(a) and 13(b), shall commence and diligently
continue to restore the Leased Premises as nearly as possible to their value, condition and character immediately prior to such event (assuming the Leased Premises to have been in condition required
by this Lease). So long as no Event of Default exists, any Net Award up to and including Major Alterations Amount shall be paid to Tenant and 

19

 

Tenant
shall restore the Leased Premises in accordance with the requirements of Paragraphs 12(a) and 13(b) of this Lease. Any Net Award in excess of Major Alterations Amount shall (unless such
Casualty resulting in the Net Award is a Termination Event) timely be made available by Proceeds Trustee, if required by the terms of any Mortgage, to Tenant for the restoration of any of the Leased
Premises pursuant to and in accordance with the provisions of Paragraph 19 hereof. If any Casualty or Condemnation which is not a Partial Casualty or Partial Condemnation shall occur, Tenant
shall comply with the terms and conditions of Paragraph 18. 

        18.    Termination Events.    

        (a)    If
either (i) the entire Leased Premises shall be taken by a Taking or (ii) any substantial portion (Casualty on a replacement cost basis is greater than
90% of value) of the Leased Premises shall be taken by a Taking or all or substantially all of the Leased Premises shall be damaged or destroyed by a Casualty and, in such case, Tenant certifies and
covenants to Landlord that it will forever abandon operations at the Leased Premises (each of the events described in the above clauses (i) and (ii) shall hereinafter be referred to as a
"Termination Event"), then (x) in the case of (i) above, Tenant shall be obligated, within ninety (90) days after Tenant receives a
Condemnation Notice and (y) in the case of (ii) above, Tenant shall have the option, within ninety (90) days after Tenant receives a Condemnation Notice or ninety (90) days
after the Casualty, as the case may be, to give to Landlord written notice in the form described in Paragraph 18(b) of the Tenant's election to terminate this Lease (a
"Termination Notice"). If Tenant elects under clause (y) above not to give Landlord a Termination Notice, then Tenant shall rebuild or repair the
Leased Premises in accordance with Paragraphs 17 and 19. 

        (b)    A
Termination Notice shall contain (i) notice of Tenant's intention to terminate this Lease on the first Basic Rent Payment Date which occurs at least sixty
(60) days after the date of the Termination Notice (the "Termination Date"), (ii) a binding and irrevocable offer of Tenant to pay to
Landlord the Termination Amount and (iii) if the Termination Event is an event described in Paragraph 18(a)(ii), the certification and covenants described therein and a certified
resolution of the Board of Directors of Tenant authorizing the same. 

        (c)    If
Landlord shall not later than thirty (30) days following the receipt of a Termination Notice reject such offer by Tenant to pay to Landlord the Termination
Amount pursuant to Paragraph 18(b) above by written notice to Tenant (a "Rejection"), and said Rejection shall contain the written consent of
Lender to Landlord's rejection of Tenant's offer to pay the Termination Amount then this Lease shall terminate on the Termination Date; provided that, if Tenant has not satisfied all Monetary
Obligations and all other obligations and liabilities under this Lease which have arisen on or prior to the Termination Date (collectively, "Remaining
Obligations") on the Termination Date, then Landlord may, at its option, extend the date on which this Lease may terminate to a date which is no later than the first Basic Rent
Payment Date after the Termination Date on which Tenant has satisfied all Remaining Obligations. Upon such termination (i) all obligations of Tenant hereunder shall terminate except for any
Surviving Obligations, (ii) Tenant shall immediately vacate and shall have no further right, title or interest in or to any of the Leased Premises and (iii) the Net Award shall be
retained by Landlord. 

        (d)    Unless
Tenant shall have received a Rejection not later than the thirtieth (30th) day following receipt of a Termination Notice, Landlord shall be conclusively presumed
to have accepted such offer from Tenant to pay the Termination Amount. If such offer from Tenant to pay the Termination Amount is accepted by Landlord then, on the Termination Date, Tenant shall pay
to Landlord the Termination Amount and all Remaining Obligations and, if requested by Tenant, Landlord shall (i) convey to Tenant the Leased Premises or the remaining portion thereof, if any,
and (ii) pay to or assign to Tenant Landlord's entire interest in and to the Net Award, all in accordance with Paragraph 20. 

20

 

        19.    Restoration.    

        (a)    If
any Net Award is in excess of the Major Alterations Amount, Proceeds Trustee shall hold the Net Award in a separate interest-bearing fund in trust (the
"Restoration Fund") and disburse amounts from the Restoration Fund only in accordance with the following conditions: 

        (i)    prior
to commencement of restoration, the architects, contracts, contractors, plans and specifications and a budget for the restoration shall have been approved by
Landlord; 

        (ii)    at
the time of any disbursement, no Event of Default shall exist and no mechanics' or materialmen's liens shall have been filed against any of the Leased Premises and
remain undischarged; 

        (iii)    disbursements
shall be made from time to time in an amount not exceeding the cost of the work completed since the last disbursement, upon receipt of
(A) satisfactory evidence, including architects' certificates, of the stage of completion, the estimated total cost of completion and performance of the work to date in a good and workmanlike
manner in accordance with the contracts, plans and
specifications, (B) waivers of liens, (C) contractors' and subcontractors' sworn statements as to completed work and the cost thereof for which payment is requested, (D) a
satisfactory bringdown of title insurance and (E) other evidence of cost and payment so that Landlord can verify that the amounts disbursed from time to time are represented by work that is
completed, in place and free and clear of mechanics' and materialmen's lien claims; 

        (iv)    each
request for disbursement shall be accompanied by a certificate of Tenant, signed by the president or a vice president of Tenant, describing the work for which
payment is requested, stating the cost incurred in connection therewith, stating that Tenant has not previously received payment for such work and, upon completion of the work, also stating that the
work has been fully completed and complies with the applicable requirements of this Lease; 

        (v)    Landlord
may require Proceeds Trustee to retain ten percent (10%) of the restoration fund until the restoration is completed except for "punch list" items, but no
retainage shall be held if ten percent (10%) is withheld until only "punch list" items remain pursuant to the applicable construction contract; and 

        (vi)    such
other reasonable conditions as Landlord or Lender, if it is an Institutional Lender, may impose. 

        (b)    Prior
to commencement of restoration and at any time during restoration, if the estimated cost of completing the restoration work free and clear of all liens, as
reasonably determined by Landlord's construction consultant, exceeds the amount of the Net Award available for such restoration, the amount of such excess shall, within ten (10) days following
written request from Landlord, be paid in cash by Tenant to an escrow account established with an Institutional Lender ("Excess Restoration Escrow Account") or an irrevocable letter of credit shall be
delivered to Proceeds Trustee for the amount of such excess. Any letter of credit shall be in substantially the form attached hereto as Exhibit "F",
shall be issued by an Institutional Lender reasonably satisfactory to Landlord, shall be in favor of Proceeds Trustee and shall permit partial draws. Amounts in the Excess Restoration Escrow Account
shall be used solely to pay the cost of restoration, and any sum so added by Tenant which remains in the Excess Restoration Escrow Account upon completion of restoration shall be paid to Tenant. The
Net Award shall be deemed to be disbursed prior to any amount deposited into the Excess Restoration Escrow Account by Tenant. 

        (c)    If
any sum remains in the Restoration Fund after completion of the restoration and any refund to Tenant pursuant to Paragraph 19(b), such sum shall be retained by
Landlord or, if required by a Note or Mortgage, paid by Landlord to a Lender. 

21

 

        20.    Procedures Upon Purchase.    

        (a)    If
the Leased Premises is purchased by Tenant pursuant to any provision of this Lease, Landlord need not convey any better title thereto than that which was conveyed to
Landlord, and Tenant shall accept such title, subject, however, to the Permitted Encumbrances and to all other liens, exceptions and restrictions on, against or relating to any of the Leased Premises
that are requested by, consented to or the result of acts of Tenant and to all applicable Laws, but free of the lien of and security interest created by or in connection with any Mortgage or
Assignment and liens, exceptions and restrictions on, against or relating to the Leased Premises which have been created by or resulted from acts of Landlord after the date of this Lease, unless the
same are Permitted Encumbrances or customary utility easements benefiting the Leased Premises or were created with the concurrence of Tenant or as a result of a default by Tenant under this Lease. 

        (b)    Upon
the date fixed for any such purchase of the Leased Premises pursuant to any provision of this Lease (any such date the "Purchase
Date"), Tenant shall pay to Landlord, or to any Person to whom Landlord directs payment, the Relevant Amount therefor specified herein, in Federal Funds, less any credit of the
Net Award received and retained by Landlord or a Lender allowed against the Relevant Amount and less the balance of any Escrow Payments and deposits made by Tenant and then held by or on behalf of
Landlord which are not required to pay Monetary Obligations of Tenant, and Landlord shall deliver to Tenant (i) a limited warranty deed which describes the premises being conveyed and conveys
the title thereto as provided in Paragraph 20(a), (ii) such other instruments as shall be necessary to transfer to Tenant or its designee any other property (or rights to any Net Award
not yet received by Landlord or a Lender) then required to be sold by Landlord to Tenant pursuant to this Lease and (iii) any Net Award received by Landlord, not credited to Tenant against the
Relevant Amount; provided, that if any Monetary Obligations remain outstanding on such date, then Landlord may deduct from the Net Award the amount of such Monetary Obligations; and further provided,
that if any event has occurred which, in Landlord's reasonable judgment, is likely to subject any Indemnitee to any liability which Tenant is required to indemnify against pursuant to
Paragraph 15, then an amount shall be deducted from the Net Award which, in Landlord's reasonable judgment, is sufficient to satisfy such liability, which amount shall be deposited in an escrow
account with a financial institution reasonably satisfactory to Landlord and Tenant pending resolution of such matter. If on the Purchase Date any Monetary Obligations remain outstanding and no Net
Award is payable to Tenant by Landlord or the amount of such Net Award is less than the amount of the Monetary Obligations, then Tenant shall pay to Landlord on the Purchase Date the amount of such
Monetary Obligations. Upon the completion of such purchase, this Lease and all obligations and liabilities of Tenant hereunder shall terminate, except any Surviving Obligations. 

        (c)    If
the completion of such purchase shall be delayed after (i) the Termination Date, in the event of a purchase pursuant to Paragraph 18 or, (ii) the
date scheduled for such purchase, in the event of a purchase under any other provision of this Lease then Rent shall continue to be due and payable until completion of such purchase. 

        (d)    Any
prepaid Monetary Obligations paid to Landlord or Proceeds Trustee shall be prorated as of the Purchase Date, and the prorated unapplied balance shall be deducted
from the Relevant Amount due
to Landlord; provided, that no apportionment of any Impositions shall be made upon any such purchase. 

        21.    Assignment and Subletting, Prohibition Against Leasehold Financing.    

        (a)

        (i)    Tenant
shall have the right, upon ten (10) days prior written notice to Landlord and Lender, with no consent of Landlord or Lender being required or necessary
("Preapproved Assignment") to assign this Lease by operation of law or otherwise to any Person ("Preapproved  

22

 

 Assignee") that, or whose obligations under this Lease are guaranteed by a Person ("Replacement Guarantor") that, immediately
following such assignment, will have a publicly traded unsecured senior debt rating of "Baa3" or better from Moody's Investors Services, Inc. or a rating of "BBB-" or better from
Standard & Poor's Corporation, and in the event both such rating agencies cease to furnish such ratings, then a comparable rating by any rating agency reasonably acceptable to Landlord and
Lender. 

        (ii)    Tenant
shall have the right with no consent of Landlord or Lender being required or necessary to assign this Lease, whether by operation of law or otherwise, to a
Person ("Non-Preapproved Assignee") who would not be a Preapproved Assignee ("Non-Preapproved
Assignment") so long as Tenant provides to Proceeds Trustee the Assignment Security Deposit no later than the date upon which such assignment shall become effective. 

        (iii)    Tenant
shall not cause or permit all or substantially all of Tenant's assets to be conveyed, transferred, assigned, sold, leased or otherwise disposed of in a single
transaction or series of related transactions (a "Transfer") unless the Person to whom the Transfer is proposed to be made is a Preapproved Assignee or,
if such Person is not a Preapproved Assignee, Proceeds Trustee receives, concurrently with such Transfer, the Assignment Security Deposit which shall be issued in accordance with and shall be subject
to the terms of Paragraph 34 of this Lease and, in any case, this Lease is assigned to the Person to whom the Transfer is made. 

        (b)    Tenant
shall have the right, upon ten (10) days prior written notice to Landlord and Lender with no consent or approval of Landlord being required or necessary,
(i) to sublease all or any part of the Leased Premises to any Person that is controlled by, in control of, or under common control with Tenant (control being defined as the ability to direct
the management and policies of Tenant), and (ii) to enter into one or more subleases that demise, in the aggregate, up to but not in excess of seventy-five percent (75%) of the
gross space in the building(s) of the Leased Premises
with no consent or approval of Landlord being required or necessary ("Preapproved Sublet"). At any time that Tenant desires to enter into one or more
subleases which result in more than seventy-five (75%) percent of the gross square footage in the building(s) of the Leased Premises being under sublease (a
"Non-Preapproved Sublet") then no consent or approval of Landlord shall be required or necessary if, concurrently with the execution by
Tenant of any such sublease, Tenant shall provide to Landlord with a Six Month Sublease Security Deposit. 

        (c)    If
Tenant assigns all its rights and interest under this Lease, the assignee under such assignment shall expressly assume all the obligations of Tenant hereunder, actual
or contingent, including obligations of Tenant which may have arisen on or prior to the date of such assignment, by a written instrument delivered to Landlord at the time of such assignment. Any
approved sublease of the Leased Premises shall (A) be expressly subject and subordinate to this Lease and any Mortgage encumbering the Leased Premises; (B) not extend beyond the then
current Term minus one day (but may contain extension and renewal rights dependent upon extension of the Term); (C) terminate upon any termination of this Lease, unless Landlord elects in
writing, to cause the sublessee to attorn to and recognize Landlord as the lessor under such sublease, whereupon such sublease shall continue as a direct lease between the sublessee and Landlord upon
all the terms and conditions of such sublease; and (D) bind the sublessee to all covenants contained in Paragraphs 4(a), 10(f) and, with respect to each sublease of more than 75% of the gross
square footage in the building(s) of the Leased Premises, 12(a) with respect to subleased premises for the sublease term to the same extent as if the sublessee were the Tenant. No sublease shall
affect or reduce any of the obligations of Tenant hereunder or the Guarantor under the Guaranty, and all such obligations of Tenant and Guarantor shall continue in full force and effect as obligations
of a principal and not as obligations of a guarantor, as if no sublease had been made. Upon the assignment of Tenant's interest in this Lease in accordance with the requirements of subparagraph
(a) of this Paragraph 21, Tenant and Guarantor shall be released from all obligations and liabilities under this Lease and the Guaranty which arise from or relate to events 

23

 

that
occur after the date of such assignment. No assignment or sublease shall impose any additional obligations on Landlord under this Lease. 

        (d)    Tenant
shall, within ten (10) days after the execution and delivery of any assignment or sublease, deliver a duplicate original copy thereof to Landlord which, in
the event of an assignment, shall be in recordable form. 

        (e)    As
security for performance of its obligations under this Lease, Tenant hereby grants, conveys and assigns to Landlord all right, title and interest of Tenant in and to
all subleases now in existence or hereafter entered into for any or all of the Leased Premises, any and all extensions, modifications and renewals thereof and all rents, issues and profits therefrom.
Landlord hereby grants to Tenant a license to collect and enjoy all rents and other sums of money payable under any sublease of any of the Leased Premises, provided, however, that Landlord shall have
the absolute right at any time upon notice to Tenant and any subtenants to revoke said license and to collect such rents and sums of money and to retain the same, provided that any such rents and sums
of money retained by Landlord shall be applied to scheduled payments of Basic Rent due under this Lease, and on each Basic Rent Payment Date any excess then held by Landlord or Lender shall be paid to
Tenant so long as no Event of
Default then exists. Tenant shall not accept any rents more than thirty (30) days in advance of the accrual thereof nor do nor permit anything to be done, the doing of which, nor omit or
refrain from doing anything, the omission of which, will be a material breach of or default in the terms of any of the subleases. 

        (f)    Tenant
shall not have the power to mortgage, pledge or otherwise encumber its interest under this Lease or any sublease of the Leased Premises, and any such mortgage,
pledge or encumbrance made in violation of this Paragraph 21 shall be void and of no force and effect. Notwithstanding the foregoing, Landlord shall execute such documents as may be reasonably
requested by Tenant and are reasonably acceptable to Landlord in order to waive Landlord's statutory lien and other rights in Tenant's equipment, machinery and other personal property. 

        (g)    Landlord
may sell or transfer the Leased Premises at any time without Tenant's consent to any third party except a Competitor (each a "Third
Party Purchaser"). In the event of any such transfer, Tenant shall attorn to any Third Party Purchaser as Landlord so long as such Third Party Purchaser and Landlord notify
Tenant in writing of such transfer. At the request of Landlord, Tenant will execute such documents confirming the agreement referred to above and such other agreements as Landlord may reasonably
request, provided that such agreements do not increase the costs, liabilities and obligations of Tenant hereunder. For purposes of this Paragraph 21(g),
"Competitor" shall mean any specialty inorganic chemical producer engaged in chemical businesses that compete with Guarantor or any of its subsidiaries
whose current businesses include: Pigments, Clay-based Additives, Wood Preservation, Water Treatments, Thermoplastic Compounds, Electronic Chemicals, Water Reclaim, and Photomasking. This
restriction on a sale of the Leased Premises to a Competitor shall not apply to any purchaser of the Leased Premises, its successors and assigns at a foreclosure sale or by acceptance of a deed in
lieu of foreclosure. 

        22.    Events of Default.    

        (a)    The
occurrence of any one or more of the following (after expiration of any applicable cure period as provided in Paragraph 22(b)) shall, at the sole option of
Landlord, constitute an "Event of Default" under this Lease: 

        (i)    a
failure by Tenant to make any payment of any Monetary Obligation on or prior to its due date, regardless of the reason for such failure; 

        (ii)    a
failure by Tenant duly to perform and observe, or a violation or breach of, any other provision hereof not otherwise specifically mentioned in this
Paragraph 22(a); 

24

 

        (iii)    any
representation or warranty made by Tenant herein or in any certificate, demand or request made pursuant hereto proves to be incorrect, as of the date made, except
to the extent that such incorrect representation or warranty does not have an adverse effect in any material respect on Landlord or the Leased Premises; 

        (iv)    a
default beyond any applicable cure period or at maturity by Tenant in any payment of principal or interest on any obligations for borrowed money having an outstanding
principal balance of $5,000,000 or more in the aggregate, or in the performance of any other provision contained in any instrument under which any such obligation is created or secured (including the
breach of any covenant thereunder), (x) if such payment is a payment at maturity or a final payment, or (y) if an effect of such default is to cause such obligation to become due prior
to its stated maturity; 

        (v)    Tenant
shall (A) voluntarily be adjudicated a bankrupt or insolvent, (B) seek or consent to the appointment of a receiver or trustee for itself or for the
Leased Premises, (C) file a petition seeking relief under the bankruptcy or other similar laws of the United States, any state or any jurisdiction, (D) make a general assignment
for the benefit of creditors, or (E) be unable to pay its debts as they mature; 

        (vi)    a
court shall enter an order, judgment or decree appointing, without the consent of Tenant, a receiver or trustee for it or for any of the Leased Premises or approving
a petition filed against Tenant which seeks relief under the bankruptcy or other similar laws of the United States, any state or any jurisdiction, and such order, judgment or decree shall remain
undischarged or unstayed sixty (60) days after it is entered; 

        (vii)    the
Leased Premises shall have been (A) abandoned or (B) vacated for a period in excess of thirty (30) consecutive days, other than
(1) during any period of repair or restoration following a Casualty or Condemnation or (2) during the period that Tenant is actively marketing the Leased Premises with an experienced
third-party broker for assignment or subletting and provided that during such period Tenant is maintaining and insuring the Leased Premises as required by the terms of this Lease; 

        (viii)    Tenant
shall be liquidated or dissolved or shall begin proceedings towards its liquidation or dissolution; 

        (ix)    the
estate or interest of Tenant in any of the Leased Premises shall be levied upon or attached in any proceeding and such estate or interest is about to be sold or
transferred or such process shall not be vacated or discharged within sixty (60) days after it is made; 

        (x)    a
failure by Tenant to perform or observe, or a violation or breach of, or a misrepresentation by Tenant under any document between Tenant and Lender or from Tenant to
Lender, if such failure, violation, breach or misrepresentation gives rise to a default beyond any applicable cure period with respect and an acceleration of the payment due on maturity of any Loan; 

        (xi)    a
failure by Tenant to maintain in effect all licenses or permits necessary for the use, occupancy or operation of the Leased Premises, except where instances of not
maintaining such licenses or permits does not have a material adverse effect on Landlord or the Leased Premises; 

        (xii)    Tenant
shall fail to deliver the estoppel described in Paragraph 25 within the time period specified therein; 

        (xiii)    an
Event of Default (as defined in the Guaranty) beyond any applicable cure period shall occur under the Guaranty; 

25

 

        (xiv)    Tenant
shall fail to renew the Letter of Credit or replenish the Security Deposit in accordance with the requirements of Paragraph 34; or 

        (xv)    Tenant
shall fail to comply with Paragraph 12(c). 

        (b)    No
notice or cure period shall be required in any one or more of the following events: (A) the occurrence of an Event of Default under clause (i) (except
as otherwise set forth below), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x), (xiii) or (xv) of Paragraph 22(a); (B) the default consists of a failure to maintain any
insurance required by Paragraph 16 or an assignment or sublease entered into in violation of Paragraph 21; or (C) the default is such that any delay in the exercise of a remedy by
Landlord could reasonably be expected to cause irreparable harm to Landlord. If the default consists of the failure to pay any Monetary Obligation under clause (i) of Paragraph 22(a),
the applicable cure period shall be five (5) days from the date on which notice is given, but Landlord shall not be obligated to give notice of, or allow any cure period for, any such default
more than two (2) times within any Lease Year. If the default consists of a default under clause (ii) or clause (xi) of Paragraph 22(a), other than the events specified in
clauses (B) and (C) of the first sentence of this Paragraph 22(b), the applicable cure period shall be thirty (30) days from the date on which notice is given or, if the
default cannot be cured within such thirty (30) day period and delay in the exercise of a remedy would not cause any material adverse harm to Landlord or any of the Leased Premises, the cure
period shall be extended for the period required to cure the default (but such cure period, including any extension, shall not in the aggregate exceed the greater of ninety (90) days or the
cure period permitted by the terms of any Mortgage, except that, for any default the curing of which requires the approval of any local, state or federal
governmental agency, the extension shall not be limited for so long as Tenant is diligently and actively pursuing such approval and incurring costs in the implementation of a remediation plan and is
otherwise in compliance with all other requirements of any such governmental agency), provided that (i) Tenant shall commence to cure the default within the said thirty-day period
and shall actively, diligently and in good faith proceed with and continue the curing of the default until it shall be fully cured, (ii) the failure to cure the default within such ninety
(90) day period or longer period as permitted by the terms of any Mortgage does not diminish the value of the Leased Premises in any material respect or put human health or life safety at risk
and (iii) during the last year of the term of the initial Loan the extension shall not exceed the ninety (90) day cure period. If the default consists of a default under
clause (xii) or clause (xiv) of Paragraph 22(a) the applicable cure period shall be five (5) days from the date on which notice is given to Tenant. 

26

   
        23.    Remedies and Damages upon Default.    

        (a)   If
an Event of Default shall have occurred and is continuing, Landlord shall have the right, at its sole option, then or at any time thereafter, to exercise its remedies
and to collect damages from Tenant in accordance with this Paragraph 23, subject in all events to applicable Law, without demand upon or notice to Tenant except as otherwise provided in
Paragraph 22(b) and this Paragraph 23 and as required by applicable Law. 

        (i)    (A)
If an Event of Default shall have occurred and be continuing Landlord may give Tenant notice of Landlord's intention to terminate this Lease on a date specified in
such notice. Upon such date, this Lease, the estate hereby granted and all rights of Tenant hereunder shall expire and terminate. Upon such termination, Tenant shall immediately surrender and deliver
possession of the Leased Premises to Landlord in accordance with Paragraph 26. If Tenant does not so surrender and deliver possession of the Leased Premises, Landlord may re-enter
and repossess the Leased Premises, with or without legal process, by peaceably entering the Leased Premises and changing locks or by summary proceedings, ejectment or any other lawful means or
procedure. Upon or at any time after taking possession of the Leased Premises, Landlord may, by peaceable means or legal process, remove any Persons or property therefrom. Landlord shall be under no
liability for or by reason of any such entry, repossession or removal. Notwithstanding such entry or repossession, Landlord may collect the damages set forth in Paragraph 23(b)(i) or
23(b)(ii). 

        (B)  If
an Event of Default shall have occurred and be continuing Landlord may give Tenant notice of Landlord's intention to terminate Tenant's possession of the Leased
Premises but without terminating this Lease on a dated specified in such notice. Upon such date, Tenant's right of possession hereunder shall expire and terminate. Upon such termination, Tenant shall
immediately surrender and deliver possession of the Leased Premises to Landlord in accordance with Paragraph 26. If Tenant does not so surrender and deliver possession of the Leased Premises,
Landlord may re-enter and repossess the Leased Premises, with or without legal process, by peaceably entering the Leased Premises and changing locks or by summary proceedings, ejectment or
any other lawful means or procedure. Upon or at any time after taking possession of the Leased Premises, Landlord may, by peaceable means or legal process, remove any Persons or property therefrom.
Landlord shall be under no liability for or by reason of any such entry, repossession or removal. Notwithstanding such entry or repossession, Landlord may collect the damages set forth in
Paragraph 23(b)(ii). 

        (ii)   After
repossession of the Leased Premises pursuant to clause (i) above, Landlord shall have the right to relet any of the Leased Premises to such tenant or
tenants, for such term or terms, for such rent, on such conditions and for such uses as Landlord in its sole discretion may determine, and collect and receive any rents payable by reason of such
reletting. Landlord may make such Alterations in
connection with such reletting as it may deem advisable in its sole discretion. Notwithstanding any such reletting, Landlord may collect the damages set forth in Paragraph 23(b)(ii). 

        (iii)  Without
any termination of the Lease or of Tenant's right of possession, Landlord may declare by notice to Tenant the entire Basic Rent (in the amount of Basic Rent
then in effect) for the remainder of the then current Term to be immediately due and payable. Tenant shall immediately pay to Landlord all such Basic Rent discounted to its Present Value, all accrued
Rent then due and unpaid, all other Monetary Obligations which are then due and unpaid and all Monetary Obligations which arise or become due by reason of such Event of Default (including any Costs of
Landlord). Upon receipt by Landlord of all such accelerated Basic Rent and Monetary Obligations, this Lease shall remain in full force and effect and Tenant shall have the right to possession of the
Leased Premises from the date of such receipt by Landlord to the end of 

27

 

the
Term, and subject to all the provisions of this Lease, including the obligation to pay all increases in Basic Rent and all Monetary Obligations that subsequently become due, except that
(A) no Basic Rent which has been prepaid hereunder shall be due thereafter during the said Term and (B) Tenant shall have no option to extend or renew the Term. 

        (b)   The
following subparagraph (i) constitute liquidated damages to which Landlord shall be entitled if Landlord exercises its remedies under
Paragraph 23(a)(i)(A) or 23(a)(ii), and the following subparagraph (ii) constitutes actual damages to which Landlord shall be entitled if Landlord exercises its remedies under
Paragraph 23(a)(i)(B): 

        (i)    If
Landlord exercises its remedy under Paragraph 23(a)(i)(A) but not its remedy under Paragraph 23(a)(i)(B) or (a)(ii) (or attempts to exercise such
remedy and is unsuccessful in reletting the Leased Premises) then, upon written demand from Landlord, Tenant shall pay to Landlord, as liquidated and agreed final damages for Tenant's default and in
lieu of all current damages beyond the date of such demand (it being agreed that it would be impracticable or extremely difficult to fix the actual damages), an amount equal to the Present Value of
the excess, if any, of (A) all Basic Rent from the date of such demand to the date on which the Term is scheduled to expire hereunder in the absence of any earlier termination,
re-entry or repossession over (B) the then fair market rental value of the Leased Premises for the same period. Tenant shall also pay to Landlord all of Landlord's Costs in
connection with the repossession of the Leased Premises and any attempted reletting thereof, including all reasonable brokerage commissions, legal expenses, attorneys' fees actually incurred and
reasonably incurred, employees' expenses, costs of Alterations and expenses and preparation for reletting. The parties agree that the injury to Landlord caused by Tenant's default is difficult or
impossible of accurate estimation, the parties intend to provide for damages and not a penalty and the stipulated amount represents a reasonable pre-estimate of the probable loss of
Landlord. 

        (ii)   If
Landlord exercises its remedy under Paragraph 23(a)(i) or its remedies under Paragraph 23(a)(i) and 23(a)(ii), then Tenant shall, until
the end of what would have been the Term in the absence of the
termination of the Lease, and whether or not any of the Leased Premises shall have been relet, be liable to Landlord for, and shall pay to Landlord, as actual agreed current damages all Monetary
Obligations which would be payable under this Lease by Tenant in the absence of such termination less the net proceeds, if any, of any reletting pursuant to Paragraph 23(a)(ii), after deducting
from such proceeds all of Landlord's Costs (including the items listed in the last sentence of Paragraph 23(b)(i) hereof) incurred in connection with such repossessing and reletting;
provided, that if Landlord has not relet the Leased Premises, such Costs of Landlord shall be considered to be Monetary Obligations payable by Tenant. Tenant shall be and remain liable for all sums
aforesaid, and Landlord may recover such damages from Tenant and institute and maintain successive actions or legal proceedings against Tenant for the recovery of such damages. Nothing herein
contained shall be deemed to require Landlord to wait to begin such action or other legal proceedings until the date when the Term would have expired by its own terms had there been no such Event of
Default. 

        (c)   Notwithstanding
anything to the contrary herein contained, in lieu of or in addition to any of the foregoing remedies and damages, Landlord may exercise any remedies and
collect any damages available to it at law or in equity. If Landlord is unable to obtain full satisfaction pursuant to the exercise of any remedy, it may pursue any other remedy which it has hereunder
or at law or in equity. 

        (d)   Landlord
shall not be required to mitigate any of its damages hereunder unless required to by applicable Law. If any Law shall validly limit the amount of any damages
provided for herein to an amount which is less than the amount agreed to herein, Landlord shall be entitled to the maximum amount available under such Law. 

28

 

        (e)   No
termination of this Lease, repossession or reletting of the Leased Premises, exercise of any remedy or collection of any damages pursuant to this Paragraph 23
shall relieve Tenant of any Surviving Obligations. 

        (f)    Upon
the occurrence and during the continuance of any Event of Default, Landlord shall have the right (but no obligation) to perform any act required of Tenant hereunder
and, if performance of such act requires that Landlord enter the Leased Premises, Landlord may enter the Leased Premises for such purpose. 

        (g)   No
failure of Landlord (i) to insist at any time upon the strict performance of any provision of this Lease or (ii) to exercise any option, right, power or
remedy contained in this Lease shall be construed as a waiver, modification or relinquishment thereof. A receipt by Landlord of any sum in satisfaction of any Monetary Obligation with knowledge of the
breach of any provision hereof shall not be deemed a waiver of such breach, and no waiver by Landlord of any provision hereof shall be deemed to have been made unless expressed in a writing signed by
Landlord. 

        (h)   Tenant
hereby waives and surrenders, for itself and all those claiming under it, including creditors of all kinds, (i) any right and privilege which it or any of
them may have under any present or future Law to redeem any of the Leased Premises or to have a continuance of this Lease after termination of this Lease or of Tenant's right of occupancy or
possession pursuant to any court order or any provision hereof, and (ii) the benefits of any present or future Law which exempts property from liability for debt or for distress for rent. 

        (i)    Except
as otherwise provided herein, all remedies are cumulative and concurrent and no remedy is exclusive of any other remedy. Each remedy may be exercised at any time
an Event of Default has occurred and is continuing and may be exercised from time to time. No remedy shall be exhausted by any exercise thereof. 

        24.    Notices.    All notices, demands, requests, consents, approvals, offers, statements and other instruments or
communications required or permitted to be given pursuant to the provisions of this Lease shall be in writing and shall be deemed to have been given and received for all purposes when delivered in
person or by Federal Express or other reliable 24-hour delivery service or five (5) business days after being deposited in the United States mail, by registered or certified mail,
return receipt requested, postage prepaid, addressed to the other party at its address stated on page one of this Lease or when delivery is refused. Notices sent to Landlord shall be to the attention
of Director, Asset Management, and notices to Tenant shall be to the attention of Treasurer. A copy of any notice given by Tenant to Landlord shall simultaneously be given by Tenant to Reed Smith LLP,
2500 One Liberty Place, Philadelphia, PA 19103, Attention: Chairman, Real Estate Department. A copy of any notice given by Landlord to Tenant shall simultaneously be given to Guarantor in care of
Rockwood Specialties, Inc., 100 Overlook Center, Princeton, New Jersey 08540, Attention: Treasurer, and Attention: Vice President and Secretary—Law and Administration. For the
purposes of this Paragraph, any party may substitute another address stated above (or substituted by a previous notice) for its address by giving fifteen (15) days' notice of the new address to
the other party, in the manner provided above. 

        25.    Estoppel Certificate.    At any time upon not less than fifteen (15) days' prior written request by
either Landlord or Tenant (the "Requesting Party") to the other party (the "Responding Party"), the Responding Party shall deliver to the Requesting Party a statement in writing, executed by an
authorized officer of the Responding Party, certifying (a) that, except as otherwise specified, this Lease is unmodified and in full force and effect, (b) the dates to which Basic Rent,
Additional Rent and all other Monetary Obligations have been paid, (c) that, to the knowledge of the signer of such certificate and except as otherwise specified, no default by either Landlord
or Tenant exists hereunder, (d) such other matters as the Requesting Party may reasonably request, and (e) if Tenant is the Responding Party that, except as otherwise specified, to the
knowledge of the signer there are no proceedings 

29

 

pending
or threatened, against Tenant before or by any court or administrative agency which, if adversely decided, would materially and adversely affect the financial condition and operations of
Tenant. Any such statements by the Responding Party may be relied upon by the Requesting Party, any Person whom the Requesting Party notifies the Responding Party in its request for the Certificate is
an intended recipient or beneficiary of the Certificate, any Lender or their assignees and by any prospective purchaser or mortgagee of any of the Leased Premises. 

        26.    Surrender.    Upon the expiration or earlier termination of this Lease, Tenant shall peaceably leave and
surrender the Leased Premises to Landlord in the same condition in which the Leased Premises was at the commencement of this Lease, except as repaired, rebuilt, restored, altered, replaced or added to
as permitted or required by any provision of this Lease, and except for ordinary wear and tear. Upon such surrender, Tenant shall (a) remove from the Leased Premises all property which is owned
by Tenant or third parties other than Landlord and (b) repair any damage caused by such removal. Property not so removed shall become the property of Landlord, and Landlord may thereafter cause
such property to be removed from the Leased Premises. The cost of removing and disposing of such property and repairing any damage to any of the Leased Premises caused by such removal shall be paid by
Tenant to Landlord upon demand. Landlord shall not in any manner or to any extent be obligated to reimburse Tenant for any such property which becomes the property of Landlord pursuant to this
Paragraph 26. 

        27.    No Merger of Title.    There shall be no merger of the leasehold estate created by this Lease with the fee
estate in any of the Leased Premises by reason of the fact that the same Person may acquire or hold or own, directly or indirectly, (a) the leasehold estate created hereby or any part thereof
or interest therein and (b) the fee estate in any of the Leased Premises or any part thereof or interest therein, unless and until all Persons having any interest in the interests described in
(a) and (b) above which are sought to be merged shall join in a written instrument effecting such merger and shall duly record the same. 

        28.    Books and Records.    

        (a)   Tenant
shall keep adequate records and books of account with respect to the finances and business of Tenant generally and with respect to the Leased Premises, in
accordance with generally accepted accounting principles ("GAAP") consistently applied, and shall permit Landlord and Lender by their respective agents,
accountants and attorneys, upon reasonable notice to Tenant, to examine (and make copies of) the records and books of account and to discuss the finances and business with the officers of Tenant, at
such reasonable times as may be requested by Landlord. 

        (b)   If
at any time Tenant is not a direct or indirect majority-owned subsidiary of Guarantor or annual audited and quarterly unaudited financial statements of Tenant are
produced, Tenant shall deliver to Landlord and to Lender within ninety (90) days of the close of each fiscal year of Tenant, annual audited financial statements of Tenant certified by a
nationally recognized firm of independent certified public accountants or other accountants reasonably acceptable to Landlord. Tenant shall also furnish to Landlord within forty-five
(45) days after the end of each of the three remaining quarters unaudited financial statements and all other quarterly reports of Tenant, certified by Tenant's chief financial officer, and all
filings, if any, of Form 10-K, Form 10-Q and other required filings with the Securities and Exchange Commission pursuant to the provisions of the Securities
Exchange Act of 1934, as amended, or any other Law that requires same to be publicly disclosed. All annual financial statements shall be prepared in accordance with GAAP consistently applied. All
annual financial statements shall be accompanied (i) by an opinion of said accountants stating that (A) there are no qualifications as to the scope of the audit and (B) the audit
was performed in accordance with GAAP and (ii) by the affidavit of the president or a vice president of Tenant, dated within five (5) days of the delivery of such statement, stating that
(C) the affiant knows of no Event of Default, or event which, upon notice or the passage of time or both, would become an Event of Default which has occurred and 

30

 

is
continuing hereunder or, if affiant knows any such event has occurred and is continuing, specifying the nature and period of existence thereof and what action Tenant has taken or proposes to take
with respect thereto and (D) except as otherwise specified in such affidavit, to affiant's knowledge that Tenant has fulfilled all of its obligations under this Lease which are required to be
fulfilled on or prior to the date of such affidavit. 

        (c)   Landlord,
Lender and their respective agents, accountants, consultants and attorneys, shall consider and treat on a strictly confidential basis (i) any
information contained in the books and records of Tenant, (ii) any copies of any books and records of Tenant, and any financial statements of Tenant pursuant to Paragraph 28(b) which are
delivered to or received by them and which are conspicuously stamped or marked "CONFIDENTIAL". 

        The
restrictions contained in this Paragraph 28(c) shall not prevent disclosure by Landlord or Lender of any information in any of the following circumstances: 

        (i)    Upon
the order of any court or administrative agency to the extent required by such order and not effectively stayed or by appeal or otherwise; 

        (ii)   Upon
the request, demand or requirement of any regulatory agency or authority having jurisdiction over such party, including the Securities and Exchange Commission
(whether or not such request or demand has the force of law), to such authority; 

        (iii)  That
has been publicly disclosed other than by breach of this Paragraph 28(c) by Lender or Landlord or by any other Person who has agreed with Landlord or
Lender and for the benefit of Tenant to abide by the provisions of this Paragraph 28(c); 

        (iv)  To
counsel, accountants or consultants for such other Person who has agreed to abide by the provisions of this Paragraph 28(c) or counsel, accountants or
consultants for Lender or Landlord; 

        (v)   While
an Event of Default exists, in connection with the exercise of any right or remedy under this Lease or any other related document; 

        (vi)  Independently
developed by Landlord or Lender to the extent that confidential information provided by Tenant is not used to develop such information; 

        (vii) To
any third party who enters into a confidentiality agreement substantially similar hereto with Landlord for the benefit of Tenant; 

        (viii) With
respect to financial information and information that Landlord or its attorneys deem to be material in any reporting to the shareholders of Landlord or the
shareholders or prospective shareholders (whether through a registered public offering or otherwise) of Landlord's parent company; 

        (ix)  In
connection with any sale or financing of the Leased Premises, provided that any recipient of such information who is a prospective purchaser of the Leased Premises
(except for a purchaser that purchases all or substantially all of the assets of Landlord's parent company) shall agree to be bound by the terms of this Paragraph 28(d); 

        (x)   In
connection with the securitization and/or sale of a Loan or interests therein by a Lender; 

        (xi)  As
otherwise required by Law. 

        29.    INTENTIONALLY DELETED.    

        30.    Non-Recourse as to Landlord.    ANYTHING CONTAINED HEREIN TO THE CONTRARY
NOTWITHSTANDING, ANY CLAIM BASED ON OR IN RESPECT OF ANY LIABILITY OF  

31

 

 LANDLORD UNDER THIS LEASE SHALL BE LIMITED TO ACTUAL DAMAGES AND SHALL BE ENFORCED ONLY AGAINST THE LEASED PREMISES AND NOT AGAINST ANY OTHER ASSETS, PROPERTIES OR FUNDS OF (I) LANDLORD,
(II) ANY DIRECTOR, OFFICER, MEMBER, GENERAL PARTNER, SHAREHOLDER, LIMITED PARTNER, BENEFICIARY, EMPLOYEE OR AGENT OF LANDLORD OR ANY GENERAL PARTNER OF LANDLORD OR ANY OF ITS MEMBERS OR GENERAL
PARTNERS (OR ANY LEGAL REPRESENTATIVE, HEIR, ESTATE, SUCCESSOR OR ASSIGN OF ANY THEREOF), EACH IN SUCH CAPACITY, (III) ANY PREDECESSOR OR SUCCESSOR PARTNERSHIP OR CORPORATION (OR OTHER ENTITY)
OF LANDLORD OR ANY OF ITS GENERAL PARTNERS, SHAREHOLDERS, OFFICERS, DIRECTORS, MEMBERS, EMPLOYEES OR AGENTS, EITHER DIRECTLY OR THROUGH LANDLORD OR ITS GENERAL PARTNERS, SHAREHOLDERS, OFFICERS,
DIRECTORS, EMPLOYEES OR AGENTS OR ANY PREDECESSOR OR SUCCESSOR PARTNERSHIP OR CORPORATION (OR OTHER ENTITY), EACH IN SUCH CAPACITY, OR (IV) ANY PERSON AFFILIATED WITH ANY OF THE FOREGOING, OR
ANY DIRECTOR, OFFICER, EMPLOYEE OR AGENT OF ANY THEREOF, EACH IN SUCH CAPACITY. 

Initials

        31.    Financing.    

        (a)   Tenant
agrees to pay all reasonable costs and expenses incurred by Landlord in connection with the purchase and leasing of the Leased Premises; including, without
limitation, the cost of appraisals, environmental reports, title insurance, surveys, legal fees and expenses. Tenant shall not be required to pay any financing costs of Landlord other than
one-half up to $15,000 with respect to reasonable fees and costs of counsel to Landlord and Lender actually incurred in connection with the initial financing of the Leased Premises. 

        (b)   If
Landlord desires to obtain or refinance any Loan, Tenant shall agree, upon request of Landlord, to supply any such Lender with such notices and information as Tenant
is required to give to Landlord hereunder and to consent to such financing if such consent is requested by such Lender. Tenant shall have no obligation to or with respect to any Lender until Tenant
receives notice of such Lender's address for notices and copies of relevant documents. 

        32.    Subordination, Non-Disturbance and Attornment.    This Lease and Tenant's interest hereunder shall
be subordinate to any Mortgage or other security instrument hereafter placed upon the Leased Premises by Landlord, and to any and all advances made or to be made thereunder, to the interest thereon,
and all renewals, replacements and extensions thereof, provided that any such Mortgage or other security instrument (or a separate instrument in recordable form duly executed by the holder of any such
Mortgage or other security instrument and delivered to Tenant) shall provide for the recognition of this Lease and all Tenant's rights hereunder unless and until an Event of Default exists or Landlord
shall have the right to terminate this Lease pursuant to any applicable provision hereof. Any subordination, nondisturbance and attornment agreement may require Tenant to confirm that
(a) Lender and its assigns will not be liable for any misrepresentation, act or omission of Landlord and (b) Lender and its assigns will not be subject to any counterclaim, demand or
offset which Tenant may have against Landlord. 

        33.    Tax Treatment; Reporting.    Landlord and Tenant each acknowledge that each shall treat this transaction as a
true lease for state law purposes and shall report this transaction as a Lease for Federal income tax purposes. For Federal income tax purposes each shall report this Lease as a true lease with
Landlord as the owner of the Leased Premises and Equipment and Tenant as the lessee of such Leased Premises and Equipment including: (1) treating Landlord as the owner of the property eligible
to claim depreciation deductions under Section 167 or 168 of the Internal Revenue Code of 1986 (the "Code") with respect to the Leased Premises and Equipment, (2) Tenant reporting its
Rent 

32

 

payments
as rent expense under Section 162 of the Code, and (3) Landlord reporting the Rent payments as rental income. 

        34.    Security Deposit.    

        (a)   Tenant
shall deliver to Proceeds Trustee (i) on the date hereof a security deposit (the "Initial Security
Deposit") in the amount of $637,500 (ii) if required under Paragraph 21(a), the Assignment Security Deposit, and (iii) if required under
Paragraph 21(b), a Six Month Sublease Security Deposit (collectively, the Initial Security Deposit, the Assignment Security Deposit and a Six Month Sublease Security Deposit shall be referred
to herein as the "Security Deposit"). Each Security Deposit shall be, at the election of Tenant, either cash ("Cash Security
Deposit") or an irrevocable letter of credit (the "Letter of Credit") substantially in the form attached hereto as  Exhibit "F" and
shall be issued by a bank reasonably acceptable to Landlord and in form and substance reasonably satisfactory to Landlord, and Tenant
shall have the right, upon not less than fifteen (15) days prior written notice to Landlord, to substitute any Letter of Credit then held by Landlord or Lender for another letter of credit
which complies with the requirements of this Paragraph 34(a) or a Cash Security Deposit for any Letter of Credit. The Security Deposit shall remain in full force and effect for the balance of
the Term as security for the payment by Tenant of the Rent and all other charges or payments to be paid hereunder and the performance of the covenants and obligations contained herein, and the Letter
of Credit shall be renewed at least thirty (30) days prior to any expiration thereof. If Tenant fails to renew any Letter of Credit by such date, time being of the essence, Proceeds Trustee
shall have the right at any time after the thirtieth (30th) day before such expiration date to draw on such Letter of Credit and to deposit the proceeds of such the Letter of Credit as a Cash Security
Deposit in any account for the benefit of Proceeds Trustee. The Cash Security Deposit shall not be commingled with other funds of Proceeds Trustee or other Persons and, as long as no Event of Default
exists, interest at day-in day-out passbook rate thereon shall be due and payable to Tenant on a quarterly basis. 

        (b)   If
at any time an Event of Default shall have occurred and be continuing, Landlord shall be entitled, at its sole discretion, to draw on the Letter of Credit or to
withdraw the Cash Security Deposit from the above-described account and to apply the proceeds in payment of (i) any Rent or other charges for the payment of which Tenant shall be in default,
(ii) prepaid Basic Rent, (iii) any expense incurred by Landlord in curing any default of Tenant as permitted herein, and/or (iv) any other sums due to Landlord in connection with
any default or the curing thereof, including, without limitation, any damages incurred by Landlord by reason of such default as permitted herein, including any rights of Landlord under
Paragraph 23 or to do any combination of the foregoing, all in such order or priority as Landlord shall so determine in its sole discretion and Tenant acknowledges and agrees that such proceeds
shall not constitute assets or funds of Tenant or its estate, or be deemed to be held in trust for Tenant, but shall be, for all purposes, the property of Landlord (or Lender, to the extent assigned).
Tenant further acknowledges and agrees that (1) Landlord's application of the proceeds of the Letter of Credit or Cash Security Deposit towards the payment of Basic Rent, Additional Rent or the
reduction of any damages due Landlord in accordance with Paragraph 23 of this Lease, constitutes a fair and reasonable use of such proceeds, and (2) the application of such proceeds by
Landlord towards the payment of Basic Rent, Additional Rent or any other sums due under this Lease shall not constitute a cure by Tenant of the applicable default provided that an Event of Default
shall not exist if Tenant restores the Security Deposit to its full amount within five (5) days and in accordance with the requirements of this Paragraph 34, so that the original amount
of the Security Deposit shall be again on deposit with Landlord. 

        (c)   At
the expiration of the Term and so long as no Event of Default exists any Letter of Credit or the Cash Security Deposit, as the case may be, shall be returned to
Tenant. 

        (d)   Landlord
shall have the right to designate a Proceeds Trustee as the beneficiary of the Letter of Credit or the Cash Security Deposit during the term of the applicable
Loan, and such Proceeds 

33

 

Trustee
shall have all of the rights and obligations of Landlord under this Paragraph 34. Tenant covenants and agrees to execute such agreements, consents and acknowledgments as may be
reasonably requested by Landlord from time to time to change the holder of the Security Deposit as hereinabove provided. 

        35.    Restriction on Landlord's Loan.    Landlord shall not encumber the Leased Premises with a Loan the principal
amount of which is greater than 90% of the purchase price paid by such Landlord for the Leased Premises, provided that this limitation is not intended to and shall not restrict the right of Landlord
to grant a Mortgage as security for a credit facility to Landlord's parent. 

        36.    Miscellaneous.    

        (a)   The
paragraph headings in this Lease are used only for convenience in finding the subject matters and are not part of this Lease or to be used in determining the intent
of the parties or otherwise interpreting this Lease. 

        (b)   As
used in this Lease, the singular shall include the plural and any gender shall include all genders as the context requires and the following words and phrases shall
have the following meanings: (i) "including" shall mean "including without limitation"; (ii) "provisions" shall mean "provisions, terms, agreements, covenants and/or conditions";
(iii) "lien" shall mean "lien, charge, encumbrance, title retention agreement, pledge, security interest, mortgage and/or deed of trust"; (iv) "obligation" shall mean "obligation, duty,
agreement, liability, covenant and/or condition"; (v) "any of the Leased Premises" shall mean "the Leased Premises or any part thereof or interest therein"; (vi) "any of the Land" shall
mean "the Land or any part thereof or interest therein"; (vii) "any of the Improvements" shall mean "the Improvements or any part thereof or interest therein"; (viii) "any of the
Equipment" shall mean "the Equipment or any part thereof or interest therein"; (ix) "any of the Adjoining Property" shall mean "the Adjoining Property or any part thereof or interest therein";
and (x) "material," "materially" and words of similar effect shall mean such term based upon commercially reasonable standards. 

        (c)   Landlord
shall not unreasonably withhold or delay its consent, whenever its consent, approval or acceptance (or words of similar import) is required under this Lease.
Time is of the essence with respect to the performance by Tenant of its obligations under this Lease. 

        (d)   Landlord
shall in no event be construed for any purpose to be a partner, joint venturer or associate of Tenant or of any subtenant, operator, concessionaire or licensee
of Tenant with respect to any of the Leased Premises or otherwise in the conduct of their respective businesses. 

        (e)   This
Lease and any documents which may be executed by Tenant on or about the effective date hereof at Landlord's request constitute the entire agreement between the
parties and supersede all prior understandings and agreements, whether written or oral, between the parties hereto relating to the Leased Premises and the transactions provided for herein. Landlord
and Tenant are business entities having substantial experience with the subject matter of this Lease and have each fully participated in the negotiation and drafting of this Lease. Accordingly, this
Lease shall be construed without regard to the rule that ambiguities in a document are to be construed against the drafter. 

        (f)    This
Lease may be modified, amended, discharged or waived only by an agreement in writing signed by the party against whom enforcement of any such modification,
amendment, discharge or waiver is sought. 

        (g)   The
covenants of this Lease shall run with the land and bind Tenant, its successors and assigns and all present and subsequent encumbrancers and subtenants of any of the
Leased Premises, and shall inure to the benefit of Landlord, its successors and assigns. If there is more than one Tenant, the obligations of each shall be joint and several. 

34

 

        (h)   If
any one or more of the provisions contained in this Lease shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision of this Lease, but this Lease shall be construed as if such invalid, illegal or unenforceable provision had never been contained
herein. 

        (i)    All
exhibits attached hereto are incorporated herein as if fully set forth. 

        (j)    This
Lease shall be governed by and construed and enforced in accordance with the laws of the State. 

        (k)   WITH
RESPECT TO ANY REMEDY OR PROCEEDING OF LANDLORD OR TENANT HEREUNDER, LANDLORD AND TENANT HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY. 

        IN
WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly executed under seal as of the day and year first above written. 

	 	 	LANDLORD:
	

 	
 	

ADV 15 (GA) LLC,

a Delaware limited liability company
	

 	
 	

 	

By:	

ADV QRS 15(GA) QRS 15-4, INC.,

managing member
	

 	
 	

 	

 	

 	

 
	

 	
 	

 	

 	

By:	

/s/  GORDON J. WHITING      

	

 	
 	

 	

 	

Title:	

Executive Director

	

 	
 	

 	

 	

 	

 
	

 	
 	

TENANT:
	

 	
 	

ADVANTIS TECHNOLOGIES, INC.,

a Delaware corporation
	

 	
 	

 	

 	

 	

 
	

 	
 	

By:	

/s/  SCOTT G. SMITH      

	

 	
 	

Title:	

Treasurer

35

  

 
 

EXHIBIT A    
    

 
 

PREMISES    
    
    TRACT ONE    
    

        All that tract or parcel of land lying in and being in Land Lots 894 and 907, 2nd District, 1st Section, Forsyth County, Georgia and
being more particularly described as follows: 

Commence
at the intersection of the western right of way of McFarland Road and southern right of way of Blue Grass Lakes Parkway, then proceed along the southern right of way of Blue Grass Lakes
Parkway a distance of 2,081.60' to an iron pin, said iron pin being the POINT OF BEGINNING. 

From
the POINT OF BEGINNING, proceed in the direction S02°03' 06"E a distance of 165.94' to an iron pin; then proceed in the direction S26°09'07"E a distance of 659.00' to an
iron pin lying on the northern right of way of Georgia Highway 400; then proceed along the northern right of way of Georgia Highway 400 in the direction of S63°50'53"W a distance of
573.20' to a concrete right of way monument; then continue along the northern right of way of Georgia Highway 400 in the direction S27°12'41"W a distance of 121.61' to a point; then
proceed in the direction N35°24'40"W a distance of 767.48' to an iron pin lying on the southern right of way of Blue Grass Lakes Parkway; then proceed along the southern right of way of
Blue Grass Lakes Parkway in the direction N34°36'55"E a distance of 263.97' to a point; then continue along the southern right of way of Blue Grass Lakes Parkway along a curve to the right
an arc distance of 584.62' to a point, said curve has a radius of 627.74' and is subtended by a 563.72' chord having a bearing of N61'17'43"E; then continue along the southern right of way of Blue
Grass Lakes Parkway in the direction N02°03'06"W a distance of 2.00' to a point; then continue along the southern right of way of Blue Grass Lakes Parkway in the direction
N87°56'54"E a distance of 74.17" to a point, said point being the POINT OF BEGINNING. 

 
 

TRACT TWO    
    

        Together with non-exclusive, perpetual easements for grading, contouring, stabilization and planting of slopes within the "Slope Easement Area", all
is provided in and subject to the terms of that certain Easement Agreement dated 14th day of July, 1995, recorded July 25, 1995, in Deed Book 874, Page 163 of the records of the
Clerk of the Superior Court of Forsyth County, Georgia. 

EXHIBIT A-1

  

 
 

EXHIBIT B    
    

 
 

MACHINERY AND EQUIPMENT    
    

        All fixtures, machinery, apparatus, equipment, fittings and appliances of every kind and nature whatsoever now or hereafter affixed or attached to or installed in
any of the Leased Premises (except as hereafter provided), including all electrical, anti-pollution, heating, lighting (including hanging fluorescent lighting), incinerating, power, air
cooling, air conditioning, humidification, sprinkling, plumbing, lifting, cleaning, fire prevention, fire extinguishing and ventilating systems, devices and machinery and all engines, pipes, pumps,
tanks (including exchange tanks and fuel storage tanks), motors, conduits, ducts, steam circulation coils, blowers, steam lines, compressors, oil burners, boilers, doors, windows, loading platforms,
lavatory facilities, stairwells, fencing (including cyclone fencing), passenger and freight elevators, overhead cranes and garage units, together with all additions thereto, substitutions therefor and
replacements thereof required or permitted by this Lease, but excluding all personal property and all trade fixtures, machinery, office, manufacturing and warehouse equipment which are used by Tenant
solely for the conduct of its business. 

EXHIBIT B-1

  

 
 

EXHIBIT C    
    

 
 

PERMITTED ENCUMBRANCES    
    

	1.
	Taxes
and assessments for the year 2002 and subsequent years which are liens not yet due and payable and, with respect only to our
Owner's Policy, liens or claims for prior years, resulting from reassessments or digest disputes.

	2.
	Right-of-Way
Easement in favor of Sawnee Electric Membership Corporation, dated September 29, 1959, filed to record October 15, 1959 and recorded
in Promiscuous Book E, Page 95, Forsyth County, Georgia records.

	3.
	Right-of-Way
Easement in favor of the Sawnee Electric Membership Corporation, dated May 5, 1962, filed for record May 9, 1962 and recorded in
Promiscuous Book E, page 508, Forsyth County, Georgia records.

	4.
	Right-of-Way
Easement in favor of Forsyth County Rural Electric Membership Corporation, dated July 16, 1938, filed for record March 30, 1940 and
recorded in Deed Book 17, Page 6, aforesaid records.

	5.
	Right-of-Way
Easement in favor of the Sawnee Electric Membership Corporation, dated September 3, 1963, filed for record September 12, 1963 and
recorded in Deed Book 46, Page 542, aforesaid records.

	6.
	Sewer
Line Easement by and between Bluegrass, Ltd. and Forsyth County, dated April 24, 1989, filed for record May 1, 1989 and recorded in Deed Book 447, Page 320,
aforesaid records; as affected by that certain Agreement Regarding Sewer Line Easement, dated December 23, 1994, filed for record in Deed Book 816, Page 142, aforesaid records.

	7.
	Easement
in favor of Southern Bell and Telegraphic recorded in Deed Book 523, Page 720, aforesaid records.

	8.
	Easement
Agreement by and between R & A Land Holdings and the Insured, dated July 14, 1995, filed for record July 25, 1995 and recorded in Deed Book 874, Page 152,
aforesaid records.

	9.
	Sewer
Line Easement by and between LaPorte Water Technologies & Biochem, Inc. and Forsyth County, dated March 19, 1997, filed for record June 2, 1997 and
recorded in Deed Book 1121, Page 255, aforesaid records.

	10.
	Declaration
of Easements, Covenants, Conditions and Restrictions for Bluegrass Lakes at Bluegrass Business Center, dated May 9, 1989, filed May 10, 1989 and recorded in
Deed Book 448, Page 403, aforesaid records; (the "Original Declaration") and all modification and amendments thereof through and including the date June 20, 2002, and thereafter; and any
litigation by or against the Insured Owner or Tenant which arise in connection therewith; as modified by that certain Modification to Bluegrass Lakes at Bluegrass Business Center Declaration of
Easements, Covenants, Conditions and Restrictions by R & A Land Holdings, a Georgia joint venture, dated January 30, 1995 filed for record January 30, 1995 and recorded in Deed
Book 825, Page 546, aforesaid records; as modified by Second Modification to Bluegrass Lakes at Bluegrass Business Center Declaration of Easements, Covenants, Conditions and Restrictions by R&A Land
Holdings, a Georgia joint venture, dated July 21, 1995, filed for record August 31, 1995 and recorded in Deed Book 887, Page 407, aforesaid records.

	11.
	Terms,
conditions of reservation of right to utilize existing sanitary and storm sewer facilities as contained in that certain Limited Warranty Deed from R & A Land Holdings, a
Georgia general partnership to Laporte Water Technologies & Biochem, Inc., dated July 14, 1995, filed for record July 19, 1995 and recorded in Deed Book 872, Page 456,
aforesaid records. 

EXHIBIT C-1

 
	12.
	Terms
and conditions of Lease between ADVA 15 (GA) LLC, a Delaware limited liability company, as Landlord and Advantis Technologies, Inc., a Delaware corporation, as Tenant
evidenced by Short Form Lease filed for record                        , 2002 and recorded in Deed
Book                        ,
Page                        , aforesaid records.

	13.
	Survey Matters: 

ALTA/ACSM
Land Title Survey for the Insured, the company and others prepared by GeoSurvey, Ltd., bearing seal and stamp of Jamey R. Coleman, Georgia Registered Land Surveyor No. 2798,
dated June 6, 2002, last revised June 24, 2002 (the "Survey") reveals the following: 

	1.
	curb
and gutter encroaching into right-of-way of Bluegrass Lakes Parkway at two entrance posts on northern boundary;

	2.
	20-foot
drainage easement area entering the land on the northwest traversing south and east and exiting onto adjoining property to the east (see Plat Book 29, Page 299 and
Plat Book 31, page 113—easements created by Plat—not instrument); and

	3.
	Woven
wire fence coincident with entirety of southeast boundary line 

EXHIBIT C-2

  

 
 

EXHIBIT D    
    

 
  BASIC RENT PAYMENTS    
    

        1.    Basic Rent.    Subject to the adjustments provided for in Paragraphs 2, 3 and 4 below, Basic Rent payable in
respect of the Term shall be $1,275,000 per annum, payable quarterly in advance on each Basic Rent Payment Date, in equal installments of $318,750 each. Pro rata Basic Rent for the period from
June 27, 2002 through the twenty-fourth day of July, 2002 shall be paid on the date hereof, and pro rata Basic Rent for the period from the twenty-fifth day of the last month of the Term
through the last day of the last month of the Term shall be paid with the final quarterly installment of Basic Rent. 

        2.    CPI Adjustments to Basic Rent.    The Basic Rent shall be subject to adjustment, in the manner hereinafter set
forth, for increases in the index known as United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index, All Urban Consumers, United States City Average, All Items,
(1982-84=100) ("CPI") or the successor index that most closely approximates the CPI. If the CPI shall be discontinued with no successor or comparable successor index, Landlord and Tenant
shall attempt to agree upon a substitute index or formula, but if they are unable to so agree, then the matter shall be determined by arbitration in accordance with the rules of the American
Arbitration Association then prevailing in New York City. Any decision or award resulting from such arbitration shall be final and binding upon Landlord and Tenant and judgment thereon may be entered
in any court of competent jurisdiction. In no event will the Basic Rent as adjusted by the CPI adjustment be less than the Basic Rent in effect for the year period immediately preceding such
adjustment. 

        3.    Effective Dates of CPI Adjustments.    Basic Rent shall not be adjusted to reflect changes in the CPI until the
third (3rd) anniversary of the Basic Rent Payment Date on which the first full quarterly installment of Basic Rent shall be due and payable (the "First Full Basic
Rent Payment Date"). As of the third (3rd) anniversary of the First Full Basic Rent Payment Date and on each anniversary of the First Full Basic Rent Payment Date
thereafter for the balance of the Term (including any exercised Renewal Term)
(each such date a "Basic Rent Adjustment Date"), Basic Rent shall be adjusted to reflect increases in the CPI (but limited as provided in
Paragraph 4 below) during the most recent one (1) year period immediately preceding each Basic Rent Adjustment Date. 

        4.    Method of Adjustment for CPI Adjustment.    

        (a)
As of each Basic Rent Adjustment Date when the average CPI determined in clause (i) below exceeds the Beginning CPI (as defined in this Paragraph 4(a)), the Basic Rent
in effect immediately prior to the applicable Basic Rent Adjustment Date shall be multiplied by a fraction, the numerator of which shall be the difference between (i) the average CPI for the
three (3) most recent calendar months (the "Rent CIP Prior Months") ending prior to such Basic Rent Adjustment Date for which the CPI has been
published on or before the forty-fifth (45th) day preceding such Basic Rent Adjustment Date and (ii) the Beginning CPI, and the denominator of which shall be the Beginning CPI. An amount equal
to the lesser of the product of such multiplication or three percent (3%) of the Basic Rent in effect immediately prior to each Basic Rent Adjustment Date shall be added to the Basic Rent in effect
immediately prior to the applicable Basic Rent Adjustment Date. As used herein, "Beginning CPI" shall mean the average CPI for the three
(3) calendar months corresponding to the Rent CPI Prior Months, but occurring one (1) year earlier with respect to each Basic Rent Adjustment. If the average CPI determined in
clause (i) is the same or less than the Beginning CPI, the Basic Rent will remain the same for the ensuing one (1) year period. 

        (b)
Effective as of a given Basic Rent Adjustment Date, Basic Rent payable under this Lease until the next succeeding Basic Rent Adjustment Date shall be the Basic Rent in effect after
the adjustment provided for as of such Basic Rent Adjustment Date. 

EXHIBIT D-1

 

        (c)
Notice of the new annual Basic Rent shall be delivered to Tenant on or before the twentieth (20th) day preceding each Basic Rent Adjustment Date, but any failure to do
so by Landlord shall not be or be deemed to be a waiver by Landlord of Landlord's rights to collect such sums. Tenant shall pay to Landlord, within twenty (20) days after a notice of the new
annual Basic Rent is delivered to Tenant, all amounts due from Tenant, but unpaid, because the stated amount as set forth above was not delivered to Tenant at least twenty (20) days preceding
the Basic Rent Adjustment Date in question. 

EXHIBIT D-2

  

 
 

EXHIBIT E    
    

 
 

TERMINATION AMOUNT SCHEDULE    
    

	Lease Year
 
	 	Termination Amount

	1-3	 	$	13,089,000
	4-6	 	$	12,734,549
	7-9	 	$	12,080,099
	10-12	 	$	11,325,649
	13-15	 	$	10,771,198
	For 1st renewal option	 	$	10,216,748
	For 2nd renewal option	 	$	9,607,848

EXHIBIT E-1

  

 
 

EXHIBIT F    
    

 
 

FORM OF LETTER OF CREDIT    
    
    IRREVOCABLE LETTER OF CREDIT    
    

[NAME
OF BENEFICIARY] 

Ladies
and Gentlemen: 

        At
the request and on the instructions of our customer, [TENANT] (the "Applicant"), we hereby establish this Irrevocable Letter of Credit No. 
            (the "Letter of Credit") in the amount of $(US)            in your favor. This Letter of Credit is effective
immediately and shall have a minimum term of one year from the date
hereof (the "Initial Term"). This Letter of Credit shall automatically renew for successive one year periods (each, a "Successive Term") unless we notify you in writing at least thirty
(30) days prior to the expiration of the applicable Successive Term that the Letter of Credit will not be renewed by us. 

        Funds
under this Letter of Credit will be made available to you against receipt by us of (1) a sight draft in the form of Annex A attached hereto and (2) your drawing
certificate in the form of Annex B attached hereto, in each case appropriately completed and purportedly signed by one of your authorized officers. 

        Presentation
of any such sight draft and drawing certificate shall be made at our office located at [PRESENTATION OFFICE ADDRESS], Attention:                  ,
telecopy number (      )                        , during our banking hours
of                         a.m. Eastern Standard Time
to                         p.m. Eastern Standard Time.
Presentation hereunder may also be made in the form of facsimile transmission of the appropriate sight draft and drawing certificate to the preceding address and telecopy number. 

        If
a sight draft and drawing certificate are presented hereunder by sight or by facsimile transmission as permitted hereunder, by 11:00 a.m., Eastern Standard Time, and provided
that such sight draft and drawing certificate conform to the terms and conditions of this Letter of Credit, payment shall be made to you, or to your designee, of the amount specified, in immediately
available funds, not later than 5:00 p.m., Eastern Standard Time, on the same day. If a sight draft and a drawing certificate are presented by you hereunder after the time specified above, and
provided that such sight draft and drawing certificate conform to the terms and conditions of this Letter of Credit, payment shall be made to you, or to your designee, of the amount specified, in
immediately available funds, not later than 5:00 p.m., Eastern Standard Time, on the next business day. If a demand for payment made by you hereunder does not, in any instance, conform to the
terms and conditions of this Letter of Credit, we shall give you notice within one business day that the demand for payment was not effected in accordance with the terms and conditions of this Letter
of Credit, stating the reasons therefor and that we will upon your instructions hold any documents at your disposal or return the same to you. Upon being notified that the demand for payment was not
effected in conformity with this Letter of Credit, you may attempt to correct any such non-conforming demand for payment to the extent that you are entitled to do so and within the
validity of this Letter of Credit. 

        Partial
drawings are allowed under this Letter of Credit. Any drawing under this Letter of Credit will be paid from our general funds and not directly or indirectly from funds or
collateral deposited with or for our account by the Applicant, or pledged with or for our account by the Applicant. 

        This
Letter of Credit is transferable and notwithstanding Article 48 of the Uniform Customs (as defined below), this Letter of Credit may be successively transferred. Transfer of
this Letter of Credit to a transferee shall be effected only upon the presentation to us of the original of this Letter of Credit accompanied by a certificate in the form of Annex C. Upon such
presentation we shall transfer the 

EXHIBIT F-1

 

same
to your transferee or, if so requested by your transferee, issue a letter of credit to your transferee with provisions consistent with, and substantially the same as, this Letter of Credit. Our
transfer charges, if any, are for the account of Applicant. 

        This
Letter of Credit shall be subject to the Uniform Customs and Practice for Documentary Credits (1993 Revision), International Chamber of Commerce Publication No. 500 (the
"Uniform Customs"), which is incorporated into the text of this Letter of Credit by this reference. This Letter of Credit shall be deemed to be issued under the laws of the State of New York and shall
be governed by and construed in accordance with the laws of the State of New York with respect to matters not governed
by the Uniform Customs and matters on which the Uniform Customs and the laws of the State of New York are inconsistent. 

	 	 	Very truly yours,
	

 	
 	

[ISSUING BANK]
	 	 	 	 
	

 	
 	

By:	

	 	 	 	 
	 	 	Name:	

	 	 	 	 
	 	 	Title:	

EXHIBIT F-2

 
 

ANNEX A
  
    SIGHT DRAFT
  
    [Date]
  
    At Sight    
    

        Pay to the order of [BENEFICIARY] the sum
of                  and            /100 Dollars
($            ) drawn on
[ISSUING BANK], as issuer of its Irrevocable Letter of Credit No.             dated            , 200    .

	 	 	[BENEFICIARY]
	 	 	 	 
	

 	
 	

By:	

	 	 	 	 
	 	 	Name:	

	 	 	 	 
	 	 	Title:	

ANNEX A TO EXHIBIT F

  

 
 

ANNEX B    
    
    DRAWING CERTIFICATE    
    
    [Date]    
    

[ISSUING
BANK]

[Address]

Attention: 

	Re:	 	Irrevocable Letter of Credit No.             (the "Letter of Credit")

For the Account of [TENANT] (the "Applicant")

Ladies and Gentlemen: 

        The
undersigned,            (the "Beneficiary") hereby certifies that: 

        1.
The Beneficiary is entitled to draw the Letter of Credit by reason of the following condition (mark only one): 

	—
	An
Event of Default, as defined in under the [DESCRIBE LEASE] has occurred and is continuing.

	—
	We
have received notice that the Letter of Credit will not be renewed for an additional one year term. 

        2.
Please direct payment under the Letter of Credit by wire transfer to: 

[Depository
Bank]

[Depository Bank Address]

ABA No.

Acct. No. 

        IN
WITNESS WHEREOF, the undersigned has duly executed and delivered this Certificate. 

	 	 	[BENEFICIARY]
	

 	
 	

By:	

	 	 	 	 
	 	 	Name:	

	 	 	 	 
	 	 	Title:	

	cc:
	[TENANT—at
Tenant's notice address in Lease]

[LANDLORD—at Landlord's notice address in Lease if Landlord is not beneficiary] 

ANNEX B TO EXHIBIT F-2

  

 
 

ANNEX C    
    
    NOTICE OF TRANSFER    
    
    [Date]    
    

[ISSUING
BANK]

[ADDRESS]

Attention: 

	Re:	 	Irrevocable Letter of Credit No.            (the "Letter of Credit")

For the Account of [TENANT] (the "Applicant")

Ladies and Gentlemen: 

        You
are hereby directed to transfer and endorse the Letter of Credit to                        (the "Transferee") or to issue in
accordance with the terms of the Letter of Credit, a new letter
of credit to the Transferee having the same terms as the Letter of Credit. 

        We
submit herewith for endorsement or cancellation the original of the Letter of Credit. 

	 	 	Very truly yours,

[BENEFICIARY]
	

 	
 	

 	

 
	

 	
 	

By:	

	 	 	 	 
	 	 	Name:	

	 	 	 	 
	 	 	Title:	

ANNEX C TO EXHIBIT F-3

QuickLinks

EXHIBIT 10.19

Table of Contents

EXHIBIT A

PREMISES TRACT ONE

TRACT TWO

EXHIBIT B

MACHINERY AND EQUIPMENT

EXHIBIT C

PERMITTED ENCUMBRANCES

EXHIBIT D

BASIC RENT PAYMENTS

EXHIBIT E

TERMINATION AMOUNT SCHEDULE

EXHIBIT F

FORM OF LETTER OF CREDIT IRREVOCABLE LETTER OF CREDIT

ANNEX A SIGHT DRAFT [Date] At Sight

ANNEX B DRAWING CERTIFICATE [Date]

ANNEX C NOTICE OF TRANSFER [Date]QuickLinks
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EXHIBIT 10.20    
    

 
 

DATED AUGUST 9, 2000
  
    THE SECOND INDUSTRIAL PARTNERSHIP LIMITED
  
    —and—
  
    MICRO IMAGE TECHNOLOGY LIMITED    
    

 
 

L E A S E
  
    Relating to Unit 16/12
  The Amber Business Centre
  Riddings
  in the County of Derbyshire    
    

Higby Hargreaves

43 Queen Anne Street

London W1M 9FA

(Ref: MJW)  

  

 
 

PARTICULARS    
    

	1.	 	DATE OF THIS DEED	 	9th August 2000
	

2.	
 	

LANDLORD	
 	

THE SECOND INDUSTRIAL PARTNERSHIP LIMITED (Company Number 3673416) whose registered office is at St Paul's House Warwick Lane London EC4P 4BN
	

3.	
 	

TENANT	
 	

MICRO IMAGE TECHNOLOGY LIMITED (Company number 1050948) whose registered office is at Nations House, 103 Wigmore Street, London W1H 9AB ("the Tenant")
	

4.	
 	

DEMISED PREMISES	
 	

ALL THAT piece or pieces of land and buildings thereon known as Unit 16/12 The Amber Business Centre Riddings in the County of Derbyshire all of which said property is for the purpose of identification only more particularly delineated on Plan 1
annexed hereto and thereon edged red SUBJECT TO the covenants and other matters affecting the Demised Premises mentioned in the deeds and documents mentioned in the Second Schedule hereto insofar as the same are still subsisting and capable of being
enforced and affect the Demised Premises
	

5.	
 	

ESTATE	
 	

The Amber Business Centre aforesaid shown on Plan 1 and thereon edged blue
	

6.	
 	

DATE OF COMMENCEMENT OF TERM	
 	

9th August 2000
	

7.	
 	

LENGTH OF TERM	
 	

25 YEARS
	

8.	
 	

RENT COMMENCEMENT DATE	
 	

The Date of Commencement of Term
	

9.	
 	

THE INITIAL RENT	
 	

ONE HUNDRED AND SIXTEEN THOUSAND POUNDS (£116,000.00) per annum exclusive of Value Added Tax subject to review
	

10.	
 	

REVIEW DATES	
 	

The 9th day of August 2005

The 9th day of August 2010

The 9th day of August 2015

The 9th day of August 2020
	

11.	
 	

PERMITTED USE	
 	

Use for the purposes of warehouses and industrial buildings with ancillary offices
	

12.	
 	

EARLY DETERMINATION DATE	
 	

The 9th day of August 2008

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9

   THIS LEASE is made on the date stated in the Particulars BETWEEN

	(1)
	the
Landlord specified in the Particulars ("the Landlord")

	(2)
	the
Tenant specified in the Particulars ("the Tenant") 

W I T N E S S E S:  

	1.
	Definitions

        IN
this Lease the following expressions (where context so admits) shall have the following meanings: 

"the Particulars"  

        The details of the preceding pages headed "Particulars" 

"Plan 1"  

        The plan mentioned in the Particulars hereto and marked Plan 1 

"Plan 2"  

        The plans annexed hereto and marked Plan 2 

"Plan 3"  

        The plan annexed hereto and marked Plan 3 

"the Term"  

        The term mentioned in the Particulars commencing with the Date of Commencement of Term and which shall include any extension or continuation whether by statute or
common law 

"the Termination Date"  

        The date of expiration or sooner determination of the Term 

"Common Parts"  

        means those parts of the Estate shown coloured green on the plan annexed hereto marked "Common Parts Plan" 

"Conducting Media"  

        means drains sewers conduits flues gutters gullies channels ducts shafts watercourses pipes cables wires and mains or any of them 

"the Demised Premises"  

        The land and premises described in the Particulars and thereto and any building now or hereafter erected thereon or on any part thereof including all additions
alterations and improvements thereto and all Landlord's fixtures and fittings and plant machinery and equipment now or hereafter in or about the same and all Conducting Media situate within and
exclusively serving the Demised Premises excluding any Conducting Media within but not exclusively serving the Demised Premises 

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"the Early Determination Date"  

        means the date for early determination of the lease as specified in paragraph 12 of the Particulars 

"the Estate"  

        The Landlords property described as the Estate in the Particulars PROVIDED THAT the Landlord may at its discretion
extend lessen divide or vary the extent of the land comprised in the Estate from time to time but not so as to materially affect the Tenant's proper use and enjoyment of the Demised Premises 

"Planning Acts"  

        Shall mean the Town and Country Planning Act 1990 the Planning (Hazardous Substances) Act 1990 the Planning (Listed Buildings Conservation Areas) Act 1990 the
Planning (Consequential Provisions) Act 1990 and the Planning and Compensation Act 1991 and any subsequent legislation of a similar nature 

"Environment Acts"  

        The Water Act 1989 the Environmental Protection Act 1990 the Environment Act 1995 and any subsequent legislation of a similar nature 

"the Landlord"  

        Shall include the person for the time being entitled to the reversion immediately expectant upon the determination of the Term hereby granted 

"the Tenant"  

        Shall include the Tenants successors in title and assigns 

"the Insured Risks"  

        Shall mean fire explosion aircraft damage riot and malicious damage civil commotion earthquake including architects and surveyors fees loss of rent and public and
third party liabilities and such other risks as the Landlord may from time to time in its reasonable discretion think fit to insure against subject to such exclusions and limitations as are imposed by
the Insurers 

"the Service Charge"  

        Shall mean the reasonably incurred cost to the Landlord of providing the services and other matters mentioned in the Third Schedule hereto 

"the Initial Rent"  

        Shall mean the annual sum described as such in the Particulars 

"the Reviewed Rent"  

        Shall mean the rent determined and described in accordance with the provisions of the Fourth Schedule hereto 

"the Rent Days"  

        Shall mean the usual English Quarter Days in each and every year of the Term 

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"the Rent Commencement Date"  

        Shall mean the date mentioned as such in the Particulars 

"the Permitted Use"  

        Shall mean the use mentioned in the Particulars 

	2.
	Interpretation

        IN
these presents unless there be something in subject or context inconsistent therewith 

        (i)
Words importing the masculine gender only shall include the feminine and vice versa and words importing persons shall include companies and corporations and vice versa 

        (ii)
Words importing the singular number only shall include the plural and vice versa and where there are two or more persons included in the expression "the Tenant" then covenants
herein expressed to be made by the Tenant shall respectively be covenants by such persons jointly and severally 

        (iii)
Any reference to any Act or any section of any Act shall be deemed to include any amendment modification or re-enactment thereof and any statutory instrument
bye-law rule directive order or regulation made thereunder for the time being in force 

        (iv)
In any case where the Tenant is placed under a restriction by reason of the covenants and conditions contained in this Lease the restriction shall be deemed to include the
obligation on the Tenant not to permit or allow the infringement of the restriction by any person claiming rights to use enjoy or visit the Demised Premises through under or in trust for the Tenant 

        (v)
any covenant by the Tenant not to do any act or thing shall be deemed to include a covenant on behalf of the Tenant to use its reasonable endeavours not to suffer or permit the doing
of that act or thing 

        (vi)
in the event that the freehold interest in the Demised Premises is or becomes subject to a lease or leases superior to this Lease all references to the Landlord shall be deemed to
include a reference to all superior landlords 

	3.
	Demise

        IN
consideration of the rents hereinafter reserved and the covenants by the Tenant and the conditions hereinafter contained the Landlord hereby with full title guarantee DEMISES unto the
Tenant ALL THAT the Demised Premises TOGETHER WITH the rights set out in the First Schedule hereto 

        EXCEPTING
AND RESERVING unto the Landlord its lessees tenants servants licensees and owners and occupiers of adjoining and neighbouring premises and all others authorised by them 

        (i)
the free and uninterrupted passage and running of water soil gas electricity and telephone and other services or supplies from and to the other buildings and land of the Landlord and
its tenants adjoining or near the Demised Premises and from and to the land and premises of others so authorised as aforesaid through the Conducting Media which are now or may hereafter during the
Term be in or upon over or under the Demised Premises and with full right of access at all reasonable times upon reasonable prior notice (and in emergency without notice) for the purpose of installing
adding to inspecting maintaining replacing and repairing the same the person or persons exercising such right making good all damage occasioned thereby and 

        (ii)
the right to support shelter and protection for the immediately adjoining buildings and premises 

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        (iii)
the right upon reasonable prior notice (except in case of emergency) at all reasonable times to enter upon the Demised Premises but only so far as may be necessary for the purpose
of inspecting repairing maintaining replacing or renewing painting decorating or carrying out other works to any part of the remainder of the Estate or any building comprised thereon where such
matters cannot be carried out without such access being obtained and to use any wall or gable end of the Demised Premises which abuts upon any other land forming part of the Estate for the provision
of support and protection to any new buildings to be erected thereon the Landlord or other the person or persons authorised by it exercising such right making good all damage thereby caused 

        (iv)
full right and liberty at any time hereafter or from time to time to execute works and erections upon or to alter or rebuild any of the buildings erected upon the Landlord's
adjoining or adjacent lands and to use its adjoining or adjacent lands and buildings in such manner as the Landlord may think fit notwithstanding that the access of light and air to the Demised
Premises may thereby be interfered with 

        (v)
all rights of access and entry into and upon the Demised Premises referred to in Clause 3 hereof 

        TO
HOLD the same unto the Tenant for the Term YIELDING AND PAYING therefor unto the Landlord without any deduction from the Rent Commencement Date throughout the Term yearly and
proportionately for any fraction of a year the Initial Rent until the same shall be reviewed in accordance with the Fourth Schedule hereto and thereafter the Reviewed Rent all such rents to be paid by
equal quarterly payments in advance on the Rent Days 

        AND
ALSO YIELDING AND PAYING by way of additional rent during the Term: 

        (1)
Such a sum or sums which the Landlord shall from time to time pay by way of premium (including any increased premium payable in respect of the Demised Premises or the Landlord's
adjoining or adjacent lands and other parts of the said building by reason of any act or omission of the Tenant) for keeping the Demised Premises insured in the full reinstatement value thereof
against loss or damage by the Insured Risks and three years rent together with reasonable administration costs and valuation fees reasonably incurred by the Landlord in relation to such insurances
such additional rent to be paid without any deduction on demand and to be recoverable by distress in the same way as rent in arrear 

        (2)
The Tenants fair and reasonable proportion of the Service Charge at the times and in the manner specified in the Third Schedule hereto 

        (3)
In the event of the rents and other sums hereinbefore reserved as rent or any other money due from the Tenant under the provisions of this Lease or any part thereof being in arrear
or unpaid for any period exceeding 21 days after the same become due (whether formally demanded or not) then the Tenant shall pay to the Landlord on demand interest on all such sums as are in
arrear or unpaid at the rate of four per cent above the Barclays Bank plc Base Rate current at the due date for payment of such rent or other money and any such other money and interest shall be
recoverable by the Landlord as rent in arrear 

	4.
	THE
Tenant hereby covenants with the Landlord as follows:

	4.1
	Rent and Outgoings

	4.1.1
	To
pay the rents and other sums hereby reserved at the times and in the manner required and by means of standing order or by such other means as reasonably required or
requested by the Landlord from time to time 

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	4.1.2
	to
pay and indemnify the Landlord against all rates taxes duties charges impositions and outgoings payable in respect of the Demised Premises or the ownership or
occupation thereof except such only as the Landlord is by law bound as relates to any reversionary interest to pay notwithstanding any contract to the contrary

	4.2
	Repair
Decoration and Cleaning

	4.2.1
	to
keep the Demised Premises in good and substantial repair decoration and condition and in a clean and tidy condition (damage by any of the Insured Risks excepted
save where payment of insurance monies shall be refused by reason of any act or default of the Tenant)

	4.2.2
	to
keep the outside and landscaped areas of the Demised Premises in a proper and neat order and condition and free from weeds and to maintain and replace where
necessary all grass trees and shrubs thereon and to keep the same properly trimmed and cut

	4.2.3
	in
every third year of the Term and in the last year thereof (however and whenever determined) to paint clean or treat as appropriate the outside of the Demised
Premises in a good and workmanlike manner with good quality materials and to the Landlord's reasonable satisfaction in a colour to be first approved such approval not to be unreasonably withheld or
delayed by the Landlord

	4.2.4
	in
every fifth year of the Term and in the last year thereof (however and whenever determined) to paint or treat as appropriate the interior of the Demised Premises in
a good and workmanlike manner with good quality materials

	4.2.5
	whenever
necessary and in any event upon receipt of written demand from the Landlord acting reasonably to wash and clean down any metal cladding panels forming part of
the exterior of the Demised Premises and any other parts thereof capable of being washed down and cleansed but without prejudice to Clause 4.2.3 above

	4.3
	Yield
Up 

At
the expiration or sooner determination of the Term to yield up the land and buildings only more particularly delineated and shown on Plan 2 ("the Retained Premises") in such repair and condition as
is shown on Plan 2 and to remove all tenant's fixtures and fittings rubbish waste or other materials and leave the Retained Premises in a clean and tidy condition failing which the Landlord shall be
entitled to remove and dispose of any goods or effects of the Tenant as it thinks fit without liability to the Tenant and any costs so reasonably incurred by the Landlord shall be recoverable from the
Tenant on demand as liquidated damages 

	4.4
	Access
of Landlord and Notice of Repair 

Upon
reasonable prior notice to permit the Landlord at all reasonable times to enter and examine the condition of the Demised Premises and if the Landlord shall give or leave with the Tenant a notice
specifying any repairs and works necessary to be done by the Tenant in order to comply with its obligations herein the Tenant shall within 3 months after the date of such notice commence well
and substantially to execute and complete the same to the Landlord's reasonable satisfaction with due expedition in accordance with the requirements of such notice and if the Tenant fails to comply
with any such notice it shall be lawful (but not obligatory) for the Landlord (without prejudice to the rights of re-entry hereunder contained) to enter upon the Demised Premises without
further notice to the Tenant to make good the same at the reasonable cost of the Tenant which reasonable cost shall be repaid by the Tenant to the Landlord forthwith on demand and if not so paid shall
be recoverable by the Landlord as rent in arrear 

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	4.5
	Environment 

Not
to use the Demised Premises for any illegal or immoral use and to comply with the provisions of the Planning Acts and the Environment Acts from time to time and to indemnify the Landlord against
all liabilities arising thereunder in respect of the Demised Premises and the user thereof from time to time 

	4.6
	Alterations

	4.6.1
	not
to alter or remove any walls floors roofs or structural parts of the Demised Premises nor to make any alterations or additions (whether structural or otherwise) or
erect any buildings or make any changes to the external appearance of the Demised Premises without the Landlord's prior consent (such consent not to be unreasonably withheld or delayed)

	4.6.2
	subject
Clause 4.6.1 to carry out any permitted alterations or additions in accordance with plans and specifications first approved such approval not to be
unreasonably withheld or delayed by the Landlord and in accordance with any reasonable conditions attached thereto

	4.6.3
	not
to make any application for planning permission without the Landlord's prior consent (such consent not to be unreasonably withheld or delayed)

	4.6.4
	to
carry out any permitted alterations or additions in a good and workmanlike manner to the Landlord's reasonable satisfaction and in accordance with all necessary
permissions regulations and consents and to produce copies thereof to the Landlord before commencing such works

	4.6.5
	to
indemnify the Landlord against any tax or other outgoings or expenses which may be reasonably and properly incurred by or levied on the Landlord as result of the
carrying out of any permitted alterations or additions

	4.6.6
	to
supply the Landlord with three sets of plans and specifications within three months of completion of permitted alterations or additions aforesaid

	4.6.7
	if
so required by the Landlord to remove any alterations or additions at the expiration or sooner determination of the Term in accordance with Plan 2

	4.6.8
	to
carry out and complete any permitted alterations or additions or works required to be done as a condition of any planning permission implemented by the Tenant
before the expiration or sooner determination of the Term

	4.6.9
	subject
to compliance with the conditions contained within this clause 4.6.4 4.6.5 and 4.6.6 the landlord hereby grants to the Tenant Licence to execute the
works shown on Plan 3 subject to the Tenant's obligation to reinstate in accordance with clause 4.6.7.

	4.7
	Indemnities
and Contributions 

to
contribute and pay on demand a fair proportion (to be conclusively determined by the Landlord's Surveyor) of the expenses payable for making laying repairing maintaining rebuilding cleansing and
lighting as the case may be all roads ways passages pavements sewers drains pipes gutters wires cables channels watercourses party walls party structures or other conveniences and easements whatsoever
which may belong to or be used for the Demised Premises in common with other premises near or adjoining thereto and to keep the Landlord indemnified against such proportion of such costs and expenses
as aforesaid 

	4.8
	Re-entry
upon Breach 

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In
the event of any mutual material breach of covenant or condition herein on the part of the Tenant and if the Tenant shall fail to make good and remedy the same to the Landlord's reasonable
satisfaction pursuant to a notice served by the Landlord in accordance with the terms hereof to permit the Landlord to enter the Demised Premises and carry out any works and do anything necessary to
remedy such breach and to pay on demand the costs of the Landlord reasonably incurred or expended in connection therewith and in default of payment such costs shall be recoverable by the Landlord as
rent in arrear 

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	4.9
	Statutory
and other obligations

	4.9.1
	To
comply with all Acts of Parliament orders regulations and byelaws affecting the Demised Premises and the Permitted Use

	4.9.2
	To
execute works and do all things in respect of the Demised Premises as are required by any Act of Parliament order regulation or byelaw whether required to be done
by the Landlord owner occupier or tenant thereof

	4.9.3
	to
notify the Landlord and supply a copy forthwith of any notice requirement or order received from any competent authority relating to the use occupation or otherwise
of the Demised Premises and if requested to join the Landlord at the cost of the Landlord in making such representation or objection as the Landlord (acting reasonably) shall think appropriate

	4.9.4
	to
comply with and observe any reasonable regulations made by the Landlord from time to time in respect of the use of the Common Parts of the Estate

	4.10
	User

	4.10.1
	to
use and occupy the Demised Premises as a factory for the Permitted Use and for no other purpose whatsoever provided that the Demised Premises may be used for such
other use within Classes B1 or B2 or B8 of the Town and Country Planning (Use Classes) Order 1987 to which the Landlord's prior consent has been obtained (such consent not to be unreasonably withheld
or delayed)

	4.10.2
	not
to use the Demised Premises for any retail trade or sale by auction

	4.10.3
	not
to carry on any illegal or immoral activity at the Demised Premises and not to use the Demised Premises for residential purposes

	4.10.4
	not
to cause or permit any spillage or drainage of oil lubricants or other noxious or deleterious substances so as to cause any pollution to watercourses or any
damage to the Demised Premises or the Conducting Media or to cause any obstruction or deposit therein

	4.10.5
	not
without the Landlord's previous consent such consent not to be unreasonably withheld or delayed to make any change to the existing system for disposal of foul or
surface water or trade effluent within the meaning of the Public Health (Drainage of Trade Premises) Act 1937 and the Public Health Act 1961

	4.10.6
	to
keep all refuse scrap dross and rubbish in the service yard of the Demised Premises in proper and appropriate skips or containers and properly screened to the
Landlord's satisfaction and to remove all such scrap and rubbish from the Demised Premises at least once a month

	4.10.7
	not
to store any materials in the service yard of the Demised Premises to a height greater than 10 metres from ground level

	4.10.8
	to
keep all scrap swarf oil and other noxious substances in oil-tight containers or skips

	4.10.9
	To
observe and perform the covenants and other matters (excluding charges referred to in the Second Schedule hereto) except in relation to any rent payable or other
sum payable and only insofar as such covenants and other matters relate to and are capable of being enforced and affect the Demised Premises

	4.11
	Aerials
Signs and Advertisements 

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	4.11.1
	not
to affix or exhibit any advertisement sign placard or poster upon the Demised Premises which may be visible from the exterior thereof other than that which the
Landlord shall have previously approved such approval not to be unreasonably withheld or delayed

	4.11.2
	not
without the prior approval such approval not to be unreasonably withheld or delayed of the Landlord to erect any external wireless or television mast or aerial or
any mechanical or scientific apparatus of any description on or about the Demised Premises

	4.12
	Reinstatement

Subject
to the Landlord providing a copy of the relevant insurance policy to the Tenant and upon becoming aware of the same to give notice forthwith to the Landlord of any damage to or destruction of
the Demised Premises and if the Demised Premises shall be damaged or destroyed by any of the Insured Risks and if the insurance monies shall be wholly or partly irrecoverable due to the act or
omission of the Tenant then the Tenant shall forthwith pay to the Landlord the whole or (as the case may require) a fair proportion of the cost of completely rebuilding repairing and reinstating the
same and any dispute in this respect shall be referred to arbitration in accordance with the Arbitration Act 1996 

	4.13
	Insurance

Subject
to the Landlord providing a copy of the relevant insurance policy to the Tenant 

	4.13.1
	to
comply with all reasonable requirements of the Landlord's insurers and of the fire authority including the provision of fire fighting and detection equipment

	4.13.2
	not
to do anything which may render void or voidable any policy of insurance in respect of the Demised Premises

	4.13.3
	to
insure against liability to third parties for injury or death of any person or damage to property at the Demised Premises

	4.14
	Nuisance

	4.14.1
	not
to do at the Demised Premises anything which may interfere with or disturb or be or become a nuisance to the Landlord or to the owners tenants or occupiers of the
Estate and in particular but without prejudice to the generality of the foregoing on receipt of a notice from the Landlord requiring the abatement of any nuisance caused by vibration heat noise smoke
fumes or smell forthwith to abate such nuisance or annoyance

	4.14.2
	to
exercise the rights set out in the First Schedule hereto so as not to cause any inconvenience or obstruction to other users thereof and not to cause any damage to
or obstruction in the Estate

	4.15
	Reletting
Boards 

During
the last 6 months of the term to permit the Landlord to fix a notice board or bill on the Demised Premises relating to a dealing with an interest in the Demised Premises and upon
reasonable prior notice to permit all persons authorised by the Landlord to enter and view the Demised Premises at reasonable times 

	4.16
	Encroachment

Not
to cause or allow any new window light or other encroachment or easement which may be or might grow to become an inconvenience or cause disturbance to the Landlord or the owners tenants or
occupiers of the Estate 

	4.17
	Roof
Weighting 

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Not
to load the roof of the Demised Premises otherwise than as previously approved such approval not to be unreasonably withheld or delayed by the Landlord and not to walk on the roof of the Demised
Premises without taking all necessary and prudent precautions 

	4.18
	Alienation

	4.18.1
	not
to assign transfer charge underlet or part with possession or share occupation of the whole or any part of the Demised Premises except as hereinafter expressly
provided

	4.18.2
	subject
to Clause 4.18.1 above not to assign transfer or charge the whole of the Demised Premises without first obtaining the prior consent of the Landlord
(such consent not to be unreasonably withheld or delayed) provided that:

	4.18.2.1
	the
Tenant shall before any permitted assignment deliver to the Landlord a deed containing a direct covenant from the assignee to the Landlord to pay the rents and
perform and observe the covenants of this Lease for the residue of the Term and further if the assignee shall be a limited or unlimited company the Landlord acting reasonably may require that two of
its directors or a corporate body acceptable to the Landlord shall guarantee the due observance and performance of the terms hereof

	4.18.2.2
	as
a condition of granting consent to an assignment as aforesaid the Landlord may require the Tenant to enter into an authorised guarantee agreement within the
meaning of Section 16 of the Landlord and Tenant (Covenants) Act 1995 including for the avoidance of doubt the matters mentioned in Section 16 (2)

	4.18.3
	not
to underlet or agree to underlet the whole or part of the Demised Premises without first obtaining the prior consent of the Landlord (such consent not to be
unreasonably withheld or delayed) and unless:—

	4.18.3.1
	no
fine or premium is taken and the rent reserved by the underlease is the best rent which can reasonably be obtained without taking any fine or premium and the
underlease contains a covenant prohibiting assignment of the underlease without the prior written consent of the Landlord and an absolute covenant prohibiting any further sub-letting or
parting with or sharing possession or occupation of the whole or any part of the sub-demised premises and the underlease is in a form approved (such approval not to be unreasonably
withheld or delayed) by the Landlord

	4.18.3.2
	not
to underlet part of the Demised Premises unless the premises so underlet shall either consist of an individual self contained unit a defined means of access to
and from the Estate roads and with no facilities (other than access) shared in common with other units within any building within the Demised Premises or shall be capable of being partitioned in such
manner as to enable it to become self-contained as aforesaid

	4.18.3.3
	not
at any time expressly or impliedly to waive the covenants to be inserted in any underlease but at all times to enforce the same (by forfeiture if necessary)

	4.18.3.4
	the
Landlord's refusal of any consent to underlet shall not be considered unreasonable if the Tenant fails to obtain jointly with the proposed underlessee an order
from the appropriate court under Section 38 of the Landlord and Tenant Act 1954 (as amended) or any statutory amendment or modification thereof for the time being in force authorising an
agreement with the proposed underlessee excluding the provisions of Sections 24 to 28 of the Landlord and Tenant Act 1954 in relation to such proposed underletting 

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	4.18.4
	Provided
it is hereby agreed that nothing in this clause 4.18 shall prohibit the Tenant from sharing the occupation of the whole or any part of the Demised
Premises with a company that is a member of the same group as the Lessee within the meaning of Section 42 of the Landlord and Tenant Act 1954

	4.18.5
	within
one month of the date of any permitted assignment underletting probate assent or other devolution of title to give notice thereof to the Landlord together with
a certified copy of such deed or document and to pay the Landlord's reasonable registration fee (being not less than twenty pounds) in respect of each such document

	4.19
	Landlord's
Costs 

To
pay to the Landlord on demand 

	4.19.1
	all
costs and legal and surveyors fees reasonably incurred or expended by the Landlord in connection with the preparation and service of any notice schedule or
proceedings (statutory or otherwise) relating to the Demised Premises notwithstanding that forfeiture is avoided otherwise than by relief granted by the Court and the Landlord's surveyors fees for the
supervision and inspection of any repairs or other works which the Tenant may be obliged to effect or carry out hereunder

	4.19.2
	the
proper and reasonable costs incurred or expended in connection with any application by the Tenant for any consent or approval licence or permission provided that
such consent approval licence or permission shall not be unreasonably refused

	4.20
	Value
Added Tax 

To
pay to the Landlord by way of further and additional rent and to indemnify the Landlord against any Value Added Tax chargeable upon the Rent and other sums reserved as rent herein and all costs
fees or other sums payable by the Tenant under this Lease whether the relevant taxable supply is made by the Landlord or by some third person and for the avoidance of doubt all monies expressed as
payable herein shall be deemed exclusive of Value Added Tax which shall be paid by the Tenant in addition to all such monies 

	4.21
	Contamination

	4.21.1
	Not
to do anything on or relating to the Demised Premises which does or might cause any pollution or contamination to the Demised Premises or to any other premises or
the environment

	4.21.2
	To
obtain any authorisation licence consent or permission required under any legislation relating to pollution or contamination of the environment with respect to any
use of or action or activity on the Demised Premises before such use action or activity commences or occurs but not to implement any such authorisation licence consent or permission until it and any
conditions attached to it have been approved by the Landlord such approval not to be unreasonably withheld or delayed 

20

  

	5.
	THE Landlord HEREBY COVENANTS with the Tenant as follows:—

	5.1
	that
the Tenant paying the rents hereby reserved and performing and observing the several covenants on the Tenants part herein contained shall peaceably hold and enjoy the Demised
Premises during the Term without any interruption by the Landlord or any person rightfully claiming under or in trust for the Landlord

	5.2
	At
all times during the Term to keep the Demised Premises insured in the full reinstatement value thereof against loss or damage by the Insured Risks in some insurance office of
repute and three years loss of rent and service charge contributions and to make all payments necessary for the above purpose when the same shall respectively become payable and to note the Tenant's
interest on such policy and to cause all moneys received by virtue of such insurance to be laid out in rebuilding and reinstating the Demised Premises PROVIDED THAT the Landlords obligation under this
covenant shall cease if the insurance shall be rendered void or voidable by reason of any act or default of the Tenant

	5.3
	To
pay the rent and other sums from time to time payable under the Headlease described in the Second Schedule and to perform the covenants on the part of the Tenant set out in such
Headlease

	6.
	Provisos

        PROVIDED
ALWAYS AND IT IS HEREBY AGREED as follows:— 

	6.1
	if
any of the rents shall be in arrear and unpaid for twenty one days after becoming due whether formally demanded or not or if there shall be any breach non-performance
or non-observance of any of the covenants or conditions on the part of the Tenant herein contained or if the tenant shall become bankrupt or being a company shall enter into liquidation
whether compulsory or voluntary (save for the purpose of reconstruction or amalgamation) or if a receiver or administrator shall be appointed of its undertaking or if it shall enter into an
arrangement or composition with its creditors or suffer any distress or execution to be levied on its goods then in any such case shall be lawful for the Landlord at any time thereafter to
re-enter into and upon the Demised Premises and thereupon the Term shall absolutely cease and determine

	6.2
	if
the Demised Premises shall be damaged or destroyed by any of the Insured Risks so as to render the Demised Premises unfit for substantial occupation and use then (save to the
extent that the insurance monies shall be wholly or partially irrecoverable by reason of any act or omission of the Tenant) the rents (including service charge) hereby reserved or a fair proportion
thereof according to the nature and extent of such damage and repair shall be suspended until the Demised Premises shall be rendered fit for occupation and the permitted use

	6.3
	any
walls and fences separating the Demised Premises from adjoining premises shall be deemed to be party structures in accordance with Section 38 of the Law of Property Act
1925

	6.4
	so
far as shall be lawful the Tenant shall not be entitled to any compensation on quitting the Demised Premises

	6.5
	all
applications notices consents approvals or licences hereunder shall be in writing and any notice to be served under this Lease shall be subject to the provisions of
Section 196 of the Law of Property Act 1925

	6.6
	no
demand or acceptance of rent by the Landlord shall be deemed to operate as a waiver of any breach of covenant or conditions on the part of the Tenant herein contained 

21

 

	6.7
	any
dispute between the Tenant and any adjoining or nearby owner occupier or tenant concerning any rights and easements in respect of the Estate or the Demised Premises shall be
decided by the Landlord acting reasonably

	6.8
	all
covenants herein by two or more persons shall be deemed to be joint and several

	6.9
	the
Landlord shall be entitled to sell or let other premises on the Estate on such terms and conditions as it thinks fit and shall enforce waive or vary any covenants and conditions
affecting any premises on the Estate at its own discretion and nothing herein shall be deemed to create a lettings scheme

	6.10
	no
estate or interest in the adjacent roads or footpaths is included in this demise except as specified in the First Schedule hereto

	6.11
	The
Landlord shall not be liable to the Tenant for any loss or damage or inconvenience which may be caused by reason of:

	(a)
	temporary
interruption of any services which the Landlord may at its discretion provide from time to time during periods of inspection maintenance repair and renewal;

	(b)
	the
breakdown failure stoppage leaking bursting or defect of any hot or cold water sanitary ventilation extraction plant and machinery or of soil gas water or electricity or other
plant and machinery or of the Conducting Media in the Demised Premises the Estate or neighbouring or adjoining property or premises

	6.12
	The
Landlord may make reasonable regulations and from time to time amend or add to the same as the Landlord may deem necessary relating to the Common Parts of the Estate for the
safety or convenience of the Tenant or occupiers of the Demised Premises and the users of the Common Parts of the Estate and such regulations shall be binding on the Tenant as if the same had been
incorporated herein upon the same being notified to the Tenant in writing

	6.13
	Nothing
in this Lease or in any consent granted by the Landlord under this Lease shall imply or warrant that the Demised Premises may be used for the purposes hereby authorised under
the Planning Acts

	6.14
	It
is hereby agreed that the Leases of Units 16.12.1, 16.12.2, 16.12.3, 16.12.4 The Amber Business Centre, Riddings, Derbyshire details of which are set out in the Sixth Schedule
("the Existing Leases") are hereby extinguished and merge with this Lease and the Landlord releases the Tenant and Grantor or Surety under the Existing Leases from all liability claims and demands
whether past present or future in respect of all breaches of any of the covenants contained in or otherwise arising under the terms of the Existing Leases and from liability for payment of rents
thereby reserved

	7.
	Early Determination

        In
the event that the Tenant shall desire to determine the Contractual Term on the Early Determination Date and shall give to the Landlord not less than twelve months prior written
notice of such desire then the Contractual Term shall end on the expiry of such notice as aforesaid and the Tenant shall forthwith give vacant possession of the Demised Premises to the Landlord and
shall leave the same in clean and tidy condition and shall yield up the Demised Premises in accordance with the provisions of clause 4.3 and it is hereby declared that any notice given by the
Tenant under the terms of this provision shall be deemed to have been given pursuant to Section 24(2) of the Landlord and Tenant Act 1954 

        IN WITNESS whereof the parties hereto have duly executed this Deed the day and year first above written 

22

 

THE FIRST SCHEDULE

RIGHTS GRANTED

	1.
	The
free passage and flow of water and soil and gas and electricity and telecommunications to and from the Demised Premises in and through the Conducting Media which now are or shall
within eighty years from the date hereof be erected in under or upon the Estate or any part thereof

	2.
	The
right for the Tenant and all persons authorised by it to enter upon the other parts of the Estate (but not into any buildings thereon) on reasonable prior notice (and in an
emergency without notice) so far as may be reasonably necessary for the purpose of inspecting, maintaining, repairing, renewing, and/or making connections with the Conducting Media the persons so
entering causing as little inconvenience and damage as possible and making good all such damage forthwith

	3.
	The
shared right for the Tenant its servants agents and contractors on foot only for all purposes connected with the Demised Premises but not for any other purpose to pass and repass
over and along the pedestrian ways now or hereafter to be constructed upon the Estate subject to a like right on the part of the Landlord's other lessees on the Estate over and along such pedestrian
ways abutting the Demised Premises

	4.
	The
shared right for the Tenant, its servants, agents and contractors for all purposes over and along the access roads and yards now or hereafter constructed upon the Estate PROVIDED
THAT no obstruction shall be caused thereon nor shall any vehicles be parked or loaded or unloaded on the said access roads and yards

	5.
	The
shared right for the Tenant to use any area within the Estate from time to time designated or set aside by the Landlord for the purpose of parking of private motor vehicles
PROVIDED THAT the Tenant shall not use or allow any such areas to be used for any other purpose whatsoever 

THE SECOND SCHEDULE

	(A)
	All
such matters (other than financial charges) as are mentioned in the registers of Title Number DY311530

	(B)
	All
such matters (excluding any obligations to pay rent or any other sums) as are contained or referred to in the Headlease under which the Landlord holds the Demised Premises
(together with other land) dated the 23rd day of June 1999 and made between Amber Pass Limited (1) and the Landlord (2) 

THE THIRD SCHEDULE

PART I

Provisions as to Service Charge

	1.
	To
the intent that the Landlord shall be entitled to recover all its outgoings and expenses in connection with the Common Parts and its management and administration, the Service
Charge contribution payable by the Tenant shall be based upon the proportion which the gross area (by external admeasurement) of the buildings from time to time on the Demised Premises bears to the
aggregate gross area (similarly measured) of the other buildings from time to time on the (save that the Landlord may at its absolute discretion adopt a different method of assessment of the said
proportion in the event of any particular service or item of work being of benefit to only some of the buildings and premises on the Estate such different method excluding from the calculation of the
proportion those buildings and premises which do not so benefit) and shall be a fair and reasonable proportion (to be certified by the Landlord's Surveyor whose decision shall be final and 

23

 

binding
except in the case of manifest error) of the costs and expenses in respect of the Landlord's annual expenditure which shall be the aggregate of:— 

	1.1
	The
cost to the Landlord of the provision by it of the services mentioned in Part II of this Schedule during the relevant year (due allowance being made where any expenditure
is met out of the reserve hereinafter mentioned)

	1.2
	A
sum being the annual depreciation over a fair and proper period (to be conclusively and reasonably determined by the Landlord or its Agents or Surveyor) of all the capital plant and
equipment used in or for the provision of such services 

PROVIDED THAT the Landlord may in its discretion include in the Landlord's annual expenditure in any year a sum by way of reasonable reserve against
anticipated future expenditure on the said services 

	2.
	The
Tenant shall pay to the Landlord on account of the annual Service Charge on the Rent Days in advance such a sum as shall in the reasonable discretion of the Landlord or its Agent
or Surveyor be one equal fourth part of the anticipated annual Service Charge for the current year

	3.
	At
the end of each year the Landlord or its Agent or Surveyor shall as soon as practicable cause an account to be prepared of the Landlord's annual expenditure for that year and send a
copy thereof to the Tenant together with a statement showing the annual Service Charge payable by the Tenant and the amount paid on account by the Tenant in such year Any difference due from the
Tenant shall be paid to the Landlord within fourteen days of the receipt of such statement and any balance due to the Tenant shall be allowed against the next payment(s) on account of Service Charge
due from it

	4.
	For
the purposes of this Schedule "year" shall mean the period from First January to the next ensuing Thirty First December or such other commencement and expiration dates as the
Landlord may declare in writing and insofar as the annual Service Charge has to be calculated for any period other than a year or a payment on account for any period other than a quarter the same
shall be calculated by apportionment on a daily basis

	5.
	The
Landlord's certificate as to the amount of the Landlord's annual expenditure in any year shall be final and conclusive as between the Landlord and the Tenant save in the case of
manifest error

	6.
	The
Landlord will hold in trust for the benefit of all the tenants for the time being of the Landlord's Estate all monies held by way of reserve and the Landlord hereby covenants with
the Tenant that upon the sale or other transfer of the whole of the Landlord's interest in the Estate that it will cause the purchaser or transferee to become trustee of such reserve on behalf of the
tenants as aforesaid 

24

   PART II

Services

	1.
	The
maintenance amendment repair, renewal, replacement, rebuilding, cleansing decorating and otherwise the keeping in good and substantial repair and condition and the lighting
of:—

	1.1
	the
Common Parts and

	1.2
	the
boundary, walls, fences and gates of and in the curtilage of the Estate and any notice or other boards erected at the Landlord's reasonable discretion for the benefit of the
occupiers of the Estate

	2.
	The
operation amendment repair, renewal, replacement, rebuilding, cleansing and maintenance in good working order and repair of the equipment apparatus and appliances (if any) in the
Common Parts including (where applicable but without prejudice to the generality of the foregoing) the Conducting Media, the watercourses, the soakways, channels, pipes, drains, sewers, cables, wires,
pumps, meters, ducts and other conducting media, the water systems and tanks, the reservoirs, the sanitary appliances, the electrical installation and lamps and light fittings on the Common Parts and
the hose reels and other fire fighting appliances which statute and all other things provided for the benefit of the Common Parts and for which no lessee or occupier of the Estate is exclusively
liable

	3.1
	grassing
and tending and keeping tidy and planting with such flora trees and shrubs as the Landlord shall deem to be reasonably appropriate to the Common Parts

	3.2
	providing,
maintaining, renewing, replacing, repairing, and keeping in good order and condition all installations, appurtenances, appointments, fixtures, fittings, bins, receptacles,
tools, appliances, materials and other things which the Landlord may deem desirable or necessary for the maintenance, upkeep or cleanliness of the Common Parts and the supply of services to the Common
Parts

	3.3
	employing
such surveyors, solicitors, environmental advisers and consultants and other professionals and agents, managers, contractors, staff and workmen as the Landlord may at its
absolute discretion deem desirable or necessary to enable or assist it to provide the said services or any of them and for the general conduct, management and security of the Common Parts and all
parts thereof and the payment of all incidental fees and other expenditure in relation to such employment (including but without limiting the generality of such provision the payment of the statutory
and such other insurance health pension welfare and other payments, contributions and premiums as the Landlord may at its reasonable discretion deem desirable or necessary and the provision of
uniforms, working clothes and other equipment for the proper performance of their duties)

	3.4
	paying
all rates, taxes, charges, assessments, impositions and other outgoings (including but. not exclusively charges (if any) for the supply of water, gas, electricity or any other
form of supply of energy utilities or services) payable by the Landlord in respect of the Common Parts except insofar as the Tenant or any other occupier of the Estate may be liable for the same under
the terms of this or their lease or occupation

	3.5
	keeping
the Common Parts insured upon similar terms (including the Landlords covenant to reinstate) as those set forth in Clause 5.2

	3.6
	taking
all steps deemed desirable or expedient by the Landlord for complying with, making representations against or otherwise contesting the incidence of the provisions of any
legislation or orders or statutory requirements thereunder concerning town planning, public health, highways, 

25

 

streets,
drainage or other matters relating or alleged to relate to the Common Parts for which the Tenant is not directly liable hereunder 

	3.7
	executing
any works as are or at any time during the said Term shall under or by virtue of any enactment for the time being in force or by any local or other competent Authority be
directed or required to be done or executed in respect of the Common Parts and for which none of the occupiers of the Estate are liable

	3.8
	providing
any service for the benefit of the Common Parts as a whole including but not exclusively at the Landlord's discretion a general estate board indicating the names of the
occupiers of the Estate

	4.
	In
the event only of the Landlord not appointing managing agents the reasonable cost in respect of the general supervision and management of the Common Parts by the Landlord (but not
including any payment in respect of the collection of rent or service charge)

	5.
	The
reasonable costs and expenses of supplying the account and maintaining records in respect of all matters mentioned in this Schedule

	6.
	The
supply of copies of regulations made by the Landlord under the foregoing provision hereof and copies of all amendments or additions made from time to time thereto

	7.
	The
reasonable administration costs including statutory fees and formation charges of any management company incorporated at the instance of the Landlord for the purpose of the
management and administration of the Estate. 

THE FOURTH SCHEDULE

Reviewed Rent

	1.
	In
this Schedule the following definitions shall apply:—

	1.1
	"Review
Date" shall mean the date or dates mentioned in the Particulars and

	1.1.1
	the
day after the expiry of the Term in the event of any holding over or extension thereof and

	1.1.2
	any
date ascertained pursuant to Paragraph 6 hereof provided that any ascertainment of Reviewed Rent hereunder shall not imply or create any new tenancy

	1.2
	"Reviewed
Rent" shall mean whichever is the greater of:—

	1.2.1
	the
rent (meaning the rent firstly hereby reserved only) immediately prior to the Review Date or

	1.2.2
	the
yearly rent which might reasonably be expected to be agreed between a willing Landlord and a willing Tenant requiring Notional Premises having the specification
and attributes specified in the Fifth Schedule at the Review Date on the open market without payment of a premium for a term of years equal to the same terms and condition as this Lease (other than
the amount of rent reserved) such rent to be apportioned pro rata to the area of 29,525 square feet

	2.
	The
Reviewed Rent shall be ascertained in accordance with the provisions of this Schedule at or with effect from each Review Date and shall be payable on and from the date upon which
is agreed or determined

	3.
	The
amount of the Reviewed Rent shall be ascertained in accordance with the foregoing provisions and as follows:— 

26

 

	3.1
	by
agreement in writing between the Landlord and the Tenant at any time or

	3.2
	in
the absence of such agreement four months before a Review Date then the Reviewed Rent shall be determined by a valuer as follows:—

	3.2.1
	the
valuer shall be appointed either jointly by the Landlord and the Tenant or on the application of either the Landlord or the Tenant made not more than three months
before or at any time after a Review Date by the President for the time being of the Royal Institution of Chartered Surveyors or any person duly authorised by him so to do

	3.2.2
	the
valuer shall act as an expert and not as an arbitrator

	3.2.3
	the
Landlord and the Tenant shall be entitled to submit written evidence to the valuer including statements and a valuation within one month after the date of the
valuer's appointment

	3.2.4
	the
valuer shall consider such evidence before determining the amount of the Reviewed Rent in accordance with the terms of this Schedule

	3.2.5
	within
two months of the date of his appointment the valuer shall give written notice to the parties of the amount of the Reviewed Rent determined by him which shall
not in any event be less than the amount of rent payable hereunder immediately prior to the Review Date

	3.2.6
	the
fees of the President and the valuer shall be payable by the Landlord and the Tenant in such proportions as the valuer shall direct on making such determination

	3.2.7
	if
the valuer shall not carry out the determination of the Reviewed Rent in accordance with the foregoing either party shall be entitled to apply to the said President
who shall in his reasonable discretion discharge the valuer and appoint a substitute valuer who shall determine the Reviewed Rent in accordance with the foregoing

	3.2.8
	the
decision of the valuer on the evidence shall be final save in the case of manifest error

	4.
	If
the Reviewed Rent shall not be ascertained as aforesaid for any reason at the Review Date

	4.1
	the
Tenant shall continue to pay rent at the rate payable immediately before the Review Date such rent to be payable on account of the Reviewed Rent and

	4.2
	within
fourteen days of the Reviewed Rent being ascertained the Tenant shall pay to the Landlord on demand the amount (if any) of the difference between

	4.2.1
	the
Reviewed Rent which would have been payable on and from the Review Date up to the Rent Day following the date of ascertainment of the Reviewed Rent had the amount
of the Reviewed Rent been ascertained at the Review Date and

	4.2.2
	the
amounts actually paid by the Tenant on account of the Reviewed Rent in respect of that period

	4.3
	If
demanded by the Landlord the Tenant shall pay interest at Barclays Bank Plc base rate from time to time calculated on such difference at each Rent Day during such period and
calculated up to the date of receipt of such difference (if any) by the Landlord

	5.
	If
the process of ascertaining the Reviewed Rent shall be prevented or restricted by any statute regulation instrument order then there shall occur a Review Date on the date on which
such restriction ceases

	6.
	When
the Reviewed Rent has been ascertained pursuant to the provisions hereof a written memorandum thereof shall be signed and exchanged between the Landlord and the Tenant for 

27

 

record
purposes only and be affixed or endorsed on this Lease and the counterpart hereof and the parties shall bear their own costs in respect thereof 

THE FIFTH SCHEDULE

Notional Premises

        A
warehouse/industrial building with ancillary offices situated in the same location as the Demised Premises and in respect of which it is to be assumed:— 

	(a)
	that
the Demised Premises are not in existence

	(b)
	that
this Lease relates to the Notional Premises

	(c)
	that
the Notional Premises were completed and available for occupation in 1985

	(d)
	that
it comprises a warehouse/industrial building with a gross internal floor area of 5,000 square feet

	(e)
	that
the area attributable to industrial warehouse space is 4,500 square feet

	(f)
	that
the area attributable to office content is 500 square feet

	(g)
	that
the building has been constructed in accordance with the following specification:—

	(i)
	a
steel portal frame

	(ii)
	a
concrete floor

	(iii)
	six
metre eaves

	(iv)
	heating
and lighting to all areas

	(v)
	two
roller shutter doors for loading purposes

	(vi)
	all
internal finishes to the industrial/warehouse area to be painted block work and cladding system lining panels

	(vii)
	the
Notional Premises benefit from being connected to the electricity, water, sewer and telecommunications (but for the avoidance of doubt that the Tenant has to pay
for the use of such services)

	(viii)
	that
the Notional Premises benefit from an adequate provision of parking and loading and unloading facilities for a building of its size and construction used as an
industrial warehouse 

28

   THE SIXTH SCHEDULE

the Existing Leases

	Date
 
	 	Unit
	 	Term
	 	Partes
 

	12/10/1984	 	16.12.1	 	25 years from 01/09/1984	 	M A Pass Property Investments Limited (1) Micro Image Technology Limited (2) Laporte Industries (Holdings) Plc (3)
	

13/10/1984	
 	

16.12.2	
 	

25 years from 01/11/1984	
 	

M A Pass Property Investments Limited (1) Micro Image Technology Limited (2) Laporte Industries (Holdings) Plc (3)
	

23/12/1996	
 	

16.12.3	
 	

25 years from 14/12/1996	
 	

Amber Pass Limited (1) Micro Image Technology Limited (2)
	

23/12/1996	
 	

16.12.4	
 	

25 years from 14/12/1996	
 	

Amber Pass Limited (1) Micro Image Technology Limited (2)

	THE COMMON SEAL of

THE SECOND INDUSTRIAL

PARTNERSHIP LIMITED

was hereunto affixed

in the presence of:—	 	)

)

)

)
	 	 	 
	 	 	
 Director
	 	 	 
	 	 	
 Director/Secretary

29

 

	HM Land Registry	 	Title Number: DY327277
	 	 	 
	 	 	Edition Date: 6 October 2000

A: Property Register  

        containing the description of the registered land and the estate comprised in the Title. Unless the contrary is indicated below any
subsisting legal easements granted by the under mentioned lease(s) for the benefit of the land in this title are included therein. The registration takes effect subject to any rights excepted and
reserved by the said lease(s) so far as such rights are subsisting and affect the land in this title.

DERBYSHIRE: AMBER VALLEY

	1.
	(6
October 2000) The Leasehold land shown edged with red on the plan of the above Title filed at the Registry and being Unit 16/12 The Amber Business Centre,
Riddings 

NOTE:
The land tinted green on the filed plan is not included in this registration. 

	2.
	(6
October 2000) The mines and minerals together with ancillary powers of working are excepted from the registration of the land edged and numbered 1 in blue on the filed plan.

	3.
	(6
October 2000) The Conveyance dated 19 February 1946 referred to in the Charges Register contains the following exceptions and reservations: 

        EXCEPT
AND RESERVED unto the Vendor and his successors in title 

        (a)
all existing drains (if any) under the property hereby conveyed together with the right of access to the said drains for the purpose of inspection maintenance and renewal thereof the
Vendor or the persons deriving title under him paying reasonable compensation for any damage caused in the exercise of such right of access 

        (b)
all timber and timberlike trees on the said property and so that the Vendor shall at any time before the end of six calendar months from the date hereof have power to remove the same
and 

        (c)
all sporting rights and rights of shooting over the said property with liberty to enter into and upon the same. 

The
registration of the land edged and numbered 1 in yellow on the filed plan takes effect subject thereto and the timber and timber like trees and sporting rights so excepted are excluded from the
registration thereof. 

	4.
	(6
October 2000) Short particulars of the lease(s) (or under-lease(s)) under which the land is held: 

	Date	 	:	 	9 August 2000
	

Term	
 	

:	
 	

25 years from 9.8.2000
	

Rent	
 	

:	
 	

£116,000 (subject to review) and insurance rent and service charge
	

Parties	
 	

:	
 	

(1) The Second Industrial Partnership Limited

(2) Micro Image Technology Limited

Continued overleaf

30

 
A: Property Register continued

A: Property Register  

	5.
	(6
October 2000) There are excepted from the effect of registration all estates, rights, interests, powers and remedies arising upon, or by reason of, any dealing made in breach
of the prohibition or restriction against dealings therewith inter vivos contained in the Lease.

	6.
	(6
October 2000) The lessor's title is registered. 

B: Proprietorship Register  

        stating nature of the title, name and address of the proprietor of the land and any entries affecting the right of
disposal

Title Absolute  

	1.
	(6
October 2000) PROPRIETOR: MICRO IMAGE TECHNOLOGY LIMITED (Co.Regn.No.1050948) of Nations House, 103 Wigmore Street, London W1H 9AB. 

C: Charges Register  

        containing charges, incumbrances etc. adversely affecting the land

	1.
	(6
October 2000) A Conveyance of the freehold estate in the land edged and numbered 1 in blue on the filed plan and other land dated 19 February 1946 made between
(1) Rowland Charles Arthur Palmer-Morewood (Vendor) and (2) The Granwood Flooring Company Limited (Purchaser) contains covenants details of which are set out in the schedule of
restrictive covenants hereto.

	2.
	(6
October 2000) The land edged and numbered 1 in blue on the filed plan is subject to the following rights reserved by the Conveyance dated 19 February 1946 referred to
above:— 

"EXCEPT
AND RESERVED unto the Vendor and his successors in title 

	(a)
	All
existing drains (if any) under the property hereby conveyed together with the right of access to the said drains for the purpose of inspection maintenance and renewal thereof the
Vendor or the persons deriving title under him paying reasonable compensation for any damage caused in the exercise of such right of access." 

********************************* 

31

 

Schedule of Restrictive Covenants  

	1.
	The
following are details of the covenants contained in the Conveyance dated 19 February 1946 referred to in the Charges Register: "The Purchasers hereby covenant with the
Vendor and to the intent that the same shall so far as practicable run for the benefit of the owners 

Page 2 Continued on next page

32

 
TITLE NUMBER

DY327277

DERBYSHIRE: AMBER VALLEY  

	

LANCE SURVEY MAP REFERENCE:	
 	

SK4252SW	
 	

SCALE 1:1250 Enlarged from 112500

  

33

QuickLinks

EXHIBIT 10.20

DATED AUGUST 9, 2000 THE SECOND INDUSTRIAL PARTNERSHIP LIMITED —and— MICRO IMAGE TECHNOLOGY LIMITED

L E A S E Relating to Unit 16/12 The Amber Business Centre Riddings in the County of Derbyshire

PARTICULARS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]