Document:

Exhibit 10.13.6

 

LEASE FOR STORAGE

 

NORTHSTAR BUILDING

MINNEAPOLIS, MN

 

CERTAIN
BASIC LEASE PROVISIONS AND DEMISE OF LEASE

 

1.             The following are certain basic Lease
provisions which, in part, comprise this Lease and may be referred to in
subsequent provisions of this Lease.

 

1.1      LANDLORD: T.H.S. NORTHSTAR ASSOCIATES LIMITED PARTNERSHIP

 

1.2      TENANT: FISHNET.COM, INC.

 

1.3      PREMISES: SUITES #: C-210 and D-310 TOTAL SQ.FT.: 200 FLOOR: Ramp Level
C and D

 

1.4      TENANTS USE: STORAGE OF AIR CONDITIONING EQUIPMENT

 

1.5      RENT:

 

	
  Period:

  	
   

  	
  Amount of
  Rent

  payable per month

  	
   

  
	
  08/01/99 – 06/30/01

  	
   

  	
  $

  	
  116.67

  	
   

  
	
  07/01/01 – 06/30/03

  	
   

  	
  $

  	
  125.00

  	
   

  
	
  07/01/03 – 06/30/05

  	
   

  	
  $

  	
  133.33

  	
   

  

 

1.6      TERM:                        Approximately six (6) years

Commencement Date: August 1, 1999

Expiration Date: June 30, 2005

 

1.7      EXHIBITS (attached and incorporated):          “A”-
Premises

 

Landlord
leases to Tenant and Tenant leases from Landlord the above-described Premises
(“Premises”) as shown hatched on the plan attached as Exhibit “A,” in “as-is”
condition in the Northstar Parking Ramp, Minneapolis, Minnesota (“Ramp”), on
the conditions stated in the “Master Lease”, as amended, between the parties
dated March 10, 1998, incorporated by reference, collectively, “Master
Lease”, except as modified by Articles 1-12 (and any “RIDER” provisions which
may be attached).

 

	
  Dated:

  	
    July 11,
  1999

  	
   

  	
   

  
	
   

  	
   

  
	
  LANDLORD

  	
  TENANT

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/
  Cynthia K. Yott

  	
   

  	
  By:

  	
  /s/
  Steven Solbrack

  	
   

  
	
  Cynthia K. Yott

  	
   

  
	
  Vice President and Asst. Secretary

  	
  Its:

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/
  Stephen E. Budorick

  	
   

  	
   

  
	
  Stephen E. Budorick

  	
   

  
	
  Senior Vice President

  	
   

  
								

 

 

	
  Landlord’s
  Address for Notices:

  	
  Tenant’s
  Address for Notices:

  
	
  608
  Second Avenue South - Suite #725

  	
  608
  Second Avenue South - Suite #167

  
	
  Minneapolis,
  MN 55402

  	
  Minneapolis,
  MN 55402

  

 

2.             PREMISES

 

Landlord
has no obligation, and has made no promise, to alter, remodel, improve, repair,
decorate or paint any portion of the Premises.

 

3.             USE

 

Limited
Use of the Premises is a material condition of this Lease. Therefore, the
Premises shall be used only for the purposes of “Tenant’s Use” identified at
Article 1.4, and for no other purpose. Any other use of the Premises shall
constitute a material breach of this Lease, and Landlord may immediately
terminate this Lease. If Tenant uses the Premises for a use other than that consistent
with Article 1.4, then Landlord, at its sole discretion, may increase the
Rent to the rental rate currently in effect under the Master Lease.

 

4.             TERM

 

The
Term shall be six (6) years, commencing on the “Commencement Date” identified
at Article 1.6. If Landlord for any reason cannot deliver possession of
the Premises to Tenant on the Commencement Date, this Lease shall not be void
or voidable, nor shall Landlord be liable to Tenant for any loss or damage
resulting from delayed delivery.

 

5.             RENT

 

Tenant
shall pay to Landlord Rent for the Premises as identified at Article 1.5,
which shall be payable in equal monthly installments in advance on the first
day of the month. If the Commencement Date is other than the first day of the
calendar month, then the monthly rent for the first and last fractional month
shall be appropriately prorated. Tenant shall have no obligation to pay Taxes
or Operating Expenses for the Premises.

 

6.             SERVICES

 

Landlord
shall arrange for furnishing electricity in quantities sufficient for lighting
the Premises. Tenant shall pay charges for electricity according to the Master
Lease.

 

7.             ABNORMAL LOADING

 

Tenant
shall store only such equipment and materials in such quantity and weight as
the Ramp is fitted for in its present condition. Tenant agrees that in storing
such equipment and material Tenant shall not stress Ramp floors and supports
beyond their normal capacity.

 

8.             INSURANCE

 

Tenant
shall furnish Landlord with insurance policies or a rider to existing policies
certifying insurance coverage according to the requirements of the Master
Lease.

 

9.             SURRENDER OF PREMISES

 

9.1
At the expiration of this Lease Tenant shall surrender the Premises in the same
condition as received, ordinary wear and tear excepted.

 

9.2
If at the end of the term, Tenant fails to remove any of its personal property
from the Premises, the same shall be deemed abandoned or, at the option of
Landlord, may be removed by Landlord and stored for a reasonable time at
Tenant’s expense.

 

 

10.           BUILDING PLANNING

 

At
any time after the Commencement Date, Landlord may (upon at least seven (7)
days prior notice) substitute for the Premises other premises in the Ramp (the
“New Premises”) provided that the New Premises will be similar to the Premises
in area and useable for Tenant’s purpose. Landlord will also pay the reasonable
expenses of Tenant’s moving from the Premises to the New Premises. Such move
will be made during evenings, weekends, or otherwise so as to incur the least
inconvenience to Tenant.

 

11.           CROSS-DEFAULT

 

Default
by Tenant under the Master Lease shall be deemed to be a default by Tenant
under this Lease; likewise, default by Tenant under this Lease shall be deemed
to be a default by Tenant under the Master Lease.

 

12.           INCORPORATION OF MASTER
LEASE

 

All
applicable provisions and conditions of the Master Lease, including the
“Rider,” “Exhibits” and “Rules and Regulations,” which have not been modified
or supplemented by this Storage Lease are ratified, confirmed and incorporated
by reference in this Storage Lease. Termination for any reason of the Master
Lease shall automatically terminate this Storage Lease.

 

--------------------END OF LEASE------------------

 

 

EXHIBIT A

NORTHSTAR

PLAN DELINEATING THE PREMISES

SUITES #C-210 and D-310Exhibit 10.14

 

LEASE
AGREEMENT

 

THIS LEASE (the “Lease”) is executed this 21st day of May, 1999, by and
between DUKE REALTY LIMITED PARTNERSTHIP, an Indiana limited partnership
(“Landlord”), and CADY COMMUNICATIONS, INC., a Minnesota corporation (“Tenant”)

 

WITNESSETH:

 

ARTICLE 1 - LEASE OF PREMISES

 

Section 1.01.  Basic Lease Provisions and Definitions.

 

A.                                   Leased Premises
(shown outlined on Exhibit A attached hereto): Golden Hills Business
Park (the “Park”), 6160 Golden Hills Drive, Golden Valley, Minnesota 55416 (the
“Building”);

 

B.                                     *Rentable Area:
approximately 33,246 square feet

 

Landlord shall use commercially reasonable standards, consistently
applied, in determining the Rentable Area and the rentable area of the
Building. Landlord’s determination of Rentable Area shall conclusively be
deemed correct for all purposes hereunder.

 

C.                                     *Tenant’s
Proportionate Share: 41.92%

 

D.                                    *Minimum Annual
Rent:

 

	
  12/01/99 - 01/31/00

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
  02/01 /00 - 01/31/02

  	
   

  	
  $

  	
  307,525.56

  	
  per year

  	
  $

  	
  (9.25 

  	
  per square foot)

  
	
  02/01 /00 - 01/31/02

  	
   

  	
  $

  	
  307,525.56

  	
  per year

  	
  $

  	
  (9.25

  	
  per square foot)

  
	
  02/01/05 - 01/31/07

  	
   

  	
  $

  	
  325,810.80

  	
  per year

  	
  $

  	
  (9.80

  	
  per square foot)

  

 

 

E.                                      *Monthly
Rental Installments:

 

	
  12/01/99 - 01/31/00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  02/01/00 - 01/31/02

  	
   

  	
  $

  	
  25,627.13

  	
  per month

  
	
  02/01/02 - 01/31/05

  	
   

  	
  $

  	
  26,181.23

  	
  per month

  
	
  02/01/05 - 01/31/07

  	
   

  	
  $

  	
  27,150.90

  	
  per month

  

 

F.                                      Landlord’s
Share of Expenses: N/A

 

G.                                     Lease
Term: Seven (7) years and two (2) months

 

(*to be adjusted, if necessary, after
construction of the Building and the Leased Premises is completed)

 

 

H.                                    Target
Commencement Date: December 1, 1999

 

I.                                         *Security
Deposit: $25,627.13

 

J.                                        Guarantor:
None

 

K.                                    Brokers: Duke
Realty Limited Partnership representing Landlord and Cushman & Wakefield
representing Tenant

 

L.                                      Permitted Use: office,
warehousing and storage for a full service telecommunications company and
related purposes

 

M.                                 Addresses
for notices:

 

	
  Landlord:

  	
   

  	
  Duke Realty Limited Partnership

  
	
   

  	
   

  	
  1550 Utica Avenue South

  
	
   

  	
   

  	
  Suite 120

  
	
   

  	
   

  	
  Minneapolis, MN 55416

  
	
   

  	
   

  	
   

  
	
  Tenant:

  	
   

  	
  Cady Communications, Inc.

  
	
   

  	
   

  	
  6160 Golden Hills Drive

  
	
   

  	
   

  	
  Golden Valley, MN 55416

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Jane S. Borden

  
	
   

  	
   

  	
  Robins, Kaplan, Miller & Ciresi, L.L.P.

  
	
   

  	
   

  	
  2800 LaSalle Plaza

  
	
   

  	
   

  	
  800 LaSalle Avenue

  
	
   

  	
   

  	
  Minneapolis, MN 55402

  
	
   

  	
   

  	
   

  
	
  Address for rental and other payments:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Duke Realty Limited Partnership NW 7210

  
	
   

  	
   

  	
  P.O. Box 1450

  
	
   

  	
   

  	
  Minneapolis. MN 55485-7210

  

 

Section 1.02. Leased Premises.
Landlord hereby leases to Tenant and Tenant leases from Landlord, under the
terms and conditions herein, the Leased Premises.

 

ARTICLE 2 - TERM AND POSSESSION

 

Section 2.01. Term. The term of
this Lease (“Lease Term”) shall be for the period of time specified in Item G
of the Basic Lease Provisions and shall commence on (i) the Target Commencement
Date as provided in Item H of the Basic Lease Provisions; or (ii) upon such
earlier or later date as Tenant upon which the tenant finish improvements
referenced in Section 2.02 hereof are substantially completed except for
minor punchlist items; provided, however, such date shall not be extended as a
result of any Tenant caused delays, change orders or force majeure events; or
(iii) upon such earlier date as Tenant takes possession or commences use of the
Leased Premises. Upon delivery of possession of the Leased Premises to Tenant,
Tenant shall execute a letter of understanding acknowledging (i) the
Commencement Date of this Lease, and (ii) that Tenant has accepted the Leased
Premises. If Tenant takes possession of and occupies the Leased Premises,
Tenant shall be deemed to have accepted the Leased Premises and that the

 

2

 

condition of the Leased Premises and the Building was at the time
satisfactory and in conformity with the provisions of this Lease in all
respects, subject to minor punchlist items which are identified in a walk
through inspection of the Leased Premises by both Landlord and Tenant prior to
delivery of possession of the Leased Premises to Tenant.

 

In the event Landlord fails to deliver possession of the Leased Premises
to Tenant, by December 1 , 1999, subject to force majeure events, Tenant
caused delays and delays attributable to Tenant requested change orders,
Landlord shall reimburse Tenant for the holdover penalty incurred by Tenant in
its current leased premises on a per diem basis for each day of delay, at the
rate of Four Hundred Forty Six and 14/100 Dollars ($446.14) per day based on
Tenant’s monthly base rate and its pro-rata share of common area charges, taxes
and management fees totalling Thirteen Thousand Three Hundred Eighty Four and
14/100 Dollars ($13,384.14) per month.

 

Section 2.02. Construction of Tenant
Improvements. Tenant has personally inspected the Leased Premises and
accepts the same “AS IS” without representation or warranty
by Landlord of any kind and with the understanding that Landlord shall have no
responsibility with respect thereto except to construct in a good and
workmanlike manner the improvements designated as Landlord’s obligations in the
attached Exhibit B. Landlord shall pay the cost of such improvements in
an amount not to exceed Five Hundred Ninety-four Thousand Dollars ($594,000.00)
(“Landlord’s Allowance”). Tenant hereby agrees that all costs for tenant finish
improvements which exceed Landlord’s Allowance shall be paid by Tenant to
Landlord within thirty (30) days of receipt of Landlord’s invoice therefor.
Notwithstanding anything contained herein to the contrary, Landlord hereby
agrees to allow Oakwood Builders (“Oakwood”) to bid on the initial tenant
finish improvement work to be performed in the Leased Premises. In the event
Oakwood’s bid is more than three percent (3%) lower than Landlord’s estimated
cost of such tenant finish improvements, Oakwood shall perform such tenant
finish improvements and Landlord shall receive a supervisory fee in an amount
not to exceed three percent (3%) of the costs incurred to complete the tenant
finish improvements, together with customary general conditions. In the event
Tenant reduces the initial tenant finish improvements to achieve a cost savings;
or in the event Oakwood performs the initial tenant finish improvements and the
cost thereof plus Landlord’s supervisory fee is less than the Landlord’s
Allowance, Tenant shall utilize the cost difference between Landlord’s
Allowance and the actual costs incurred to complete the initial tenant finish
improvements, towards additional tenant finish improvements within the Leased
Premises, including wiring and cabling. In the event Landlord is chosen as the
general contractor, all work on the initial tenant finish improvements shall be
performed by Duke Construction Limited Partnership or a subsidiary or affiliate
of Landlord (“DCLP”) which shall receive a construction management fee, in an
amount not to exceed seven percent (7%) of the costs incurred to complete the
tenant finish improvements, together with customary general conditions, as
Landlord’s construction manager or general contractor. Any work performed for
non-structural tenant finish improvements shall be warranted by Landlord
against defects in materials and workmanship for a period of one (1) year from
the Commencement Date. Landlord and Tenant agree that all work on any
subsequent tenant finish improvements shall be performed by DCLP which shall
receive a construction management fee in an amount not to exceed ten percent
(10%) of the costs incurred to complete the tenant finish improvements,
together with customary general conditions, as Landlord’s construction manager
or general contractor.

 

Section 2.03.  Surrender of the
Premises. Upon the expiration or earlier termination of this Lease, Tenant
shall immediately surrender the Leased Premises to Landlord in broom-clean
condition and in good condition and repair, reasonable wear and tear excepted.
Tenant shall also remove its personal property, trade fixtures and any of
Tenant’s alterations designated by

 

3

 

Landlord, promptly repair any damage caused by such removal, and
restore the Leased Premises to the condition existing upon the Commencement
Date, reasonable wear and tear excepted. If Tenant fails to do so, Landlord may
restore the Leased Premises to such condition at Tenant’s expense, Landlord may
cause all of said property to be removed at Tenant’s expense, and Tenant hereby
agrees to pay all the costs and expenses thereby reasonably incurred. All
Tenant property which is not removed within ten (10) days following Landlord’s
written demand therefor shall be conclusively deemed to have been abandoned by
Tenant, and Landlord shall be entitled to dispose of such property at Tenant’s
cost without thereby incurring any liability to Tenant. The provisions of this
section shall survive the expiration or other termination of this Lease.

 

Section 2.04. Holding Over. If
Tenant retains possession of the Leased Premises after the expiration or
earlier termination of this Lease, Tenant shall become a tenant from month to
month at one hundred fifty percent (150%) of the Monthly Rental Installment in
effect at the end of the Lease Term, and otherwise upon the terms, covenants
and conditions herein specified, so far as applicable. Acceptance by Landlord
of rent in such event shall not result in a renewal of this Lease, and Tenant
shall vacate and surrender the Leased Premises to Landlord upon Tenant being given
thirty (30) days’ prior written notice from Landlord to vacate whether or not
said notice is given on the rent paying date. This Section 2.04 shall in
no way constitute a consent by Landlord to any holding over by Tenant upon the
expiration or earlier termination of this Lease, nor limit Landlord’s remedies
in such event.

 

ARTICLE 3 - RENT

 

Section 3.01. Base Rent. Tenant
shall pay to Landlord the Minimum Annual Rent in the Monthly Rental
Installments, in advance, without deduction or offset, beginning on the
Commencement Date and on or before the first day of each and every calendar
month thereafter during the Lease Term. The Monthly Rental Installment for
partial calendar months shall be prorated.

 

Section 3.02. Additional Rent. In
addition to the Minimum Annual Rent Tenant shall pay to Landlord for each
calendar year during the Lease Term, as “Additional Rent,” Tenant’s
Proportionate Share of all costs and expenses incurred by Landlord during the
Lease Term for Real Estate Taxes and Operating Expenses for the Building and
common areas (collectively “Common Area Charges”).

 

“Operating Expenses” shall mean all of Landlord’s expenses for
operation, repair, replacement and maintenance to keep the Building and common
areas in good order, condition and repair (including all additional direct
costs and expenses of operation and maintenance of the Building which Landlord
reasonably determines it would have paid or incurred during such year if the
Building had been fully occupied), including, but not limited to, service and
other charges incurred in the operation and maintenance of the electrical
systems, heating, ventilation and air conditioning systems and sprinkler and
plumbing systems; management or administrative fees not to exceed five percent
(5%) of gross revenues of the Building; utilities; stormwater discharge fees;
license, permit, inspection and other fees; fees and assessments imposed by any
covenants or owners’ association; security services; insurance premiums and
deductibles; and maintenance, repair and replacement of the driveways, parking
areas (including snow removal), exterior lighting, landscaped areas, walkways,
curbs, drainage strips, sewer lines, exterior walls, foundation, structural
frame, roof and gutters. The cost of any capital improvement shall be amortized
over the useful life of such improvement (as reasonably determined by
Landlord), and only the amortized portion shall be included in Operating
Expenses.

 

4

 

“Real Estate Taxes” shall include any form of real estate tax or
assessment or service payments in lieu thereof, and any license fee, commercial
rental tax, improvement bond or other similar charge or tax (other than
inheritance, personal income or estate taxes) imposed upon the Building or
common areas (or against Landlord’s business of leasing the Building) by any
authority having the power to so charge or tax, together with costs and
expenses of contesting the validity or amount of Real Estate Taxes which at
Landlord’s option may be calculated as if such contesting work had been
performed on a contingent fee basis (whether charged by Landlord’s counsel or
representative; provided, however, that said fees are reasonably comparable to
the fees charged for similar services by others not affiliated with Landlord,
but in no event shall fees exceed thirty-three percent (33%) of the good faith
estimated tax savings). Additionally, Tenant shall pay, prior to delinquency,
all taxes assessed against and levied upon trade fixtures, furnishings, equipment
and all personal property of Tenant contained in the Leased Premises.

 

Section 3.03. Payment of Additional
Rent. Landlord shall estimate the total amount of Additional Rent to be
paid by Tenant during each calendar year of the Lease Term, pro-rated for any
partial years. Commencing on the Commencement Date, Tenant shall pay to
Landlord each month, at the same time the Monthly Rental Installment is due, an
amount equal to one-twelfth (1/12) of the estimated Additional Rent for such
year. Within a reasonable time after the end of each calendar year, Landlord
shall submit to Tenant a statement of the actual amount of such Additional Rent
and within thirty (30) days after receipt of such statement, Tenant shall pay
any deficiency between the actual amount owed and the estimates paid during
such calendar year. In the event of overpayment, Landlord shall credit the
amount of such overpayment toward the next installments of Minimum Rent, or in
the event the Lease Term has expired, refund the amount of such overpayment to
Tenant within thirty (30) days of the expiration of the Lease Term.

 

Section 3.04. Late Charges. Tenant
acknowledges that Landlord shall incur certain additional unanticipated
administrative and legal costs and expenses if Tenant fails to timely pay any
payment required hereunder. Therefore, in addition to the other remedies
available to Landlord hereunder, if any payment required to be paid by Tenant
to Landlord hereunder shall become overdue, such unpaid amount shall bear
interest from the due date thereof to the date of payment at the prime rate (as
reported in the Wall Street Journal) of interest (“Prime Rate”) plus six
percent (6%) per annum.

 

ARTICLE 4 - SECURITY DEPOSIT

 

Tenant, upon execution of this Lease, shall deposit with Landlord the
Security Deposit as security for the performance by Tenant of all of Tenant’s
obligations contained in this Lease. In the event of a default by Tenant
Landlord may apply all or any part of the Security Deposit to cure all or any
part of such default; and Tenant agrees to promptly, upon demand, deposit such
additional sum with Landlord as may be required to maintain the full amount of
the Security Deposit. All sums held by Landlord pursuant to this
section shall be without interest. At the end of the Lease Term, provided
that there is then no uncured default, Landlord shall return the Security
Deposit to Tenant.

 

ARTICLE 5 - USE

 

Section 5.01. Use of Leased Premises.
The Leased Premises are to be used by Tenant solely for the Permitted Use and
for no other purposes without the prior written consent of Landlord.

 

5

 

Section 5.02. Covenants of Tenant
Regarding Use. Tenant shall (i) use and maintain the Leased Premises and
conduct its business thereon in a safe, careful, reputable and lawful manner,
(ii) comply with all laws, rules, regulations, orders, ordinances, directions
and requirements of any governmental authority or agency, now in force or which
may hereafter be in force, including without limitation those which shall
impose upon Landlord or Tenant any duty with respect to or triggered by a
change in the use or occupation of, or any improvement or alteration to, the
Leased Premises, and (iii) comply with and obey all reasonable directions of
the Landlord, including any rules and regulations that may be adopted by
Landlord from time to time. Tenant shall not do or permit anything to be done
in or about the Leased Premises or common areas which constitutes a nuisance or
which interferes with the rights of other tenants or injures or annoys them.
Landlord shall not be responsible to Tenant for the nonperformance by any other
tenant or occupant of the Building of its lease or of any rules and regulations
but agrees to take commercially reasonable measures to consistently enforce all
rules and regulations. Tenant shall not overload the floors of the Leased
Premises. All damage to the floor, structure or foundation of the Building due
to improper positioning or storage of items or materials shall be repaired by Landlord
at the sole expense of Tenant, who shall reimburse Landlord immediately
therefor upon demand. Tenant shall not use the Leased Premises, or allow the
Leased Premises to be used, for any purpose or in any manner which would
invalidate any policy of insurance now or hereafter carried on the Building or
increase the rate of premiums payable on any such insurance policy unless
Tenant reimburses Landlord as Additional Rent for any increase in premiums
charged.

 

Section 5.03. Landlord’s Rights
Regarding Use. In addition to the rights specified elsewhere in this Lease,
Landlord shall have the following rights regarding the use of the Leased
Premises or the common areas, each of which may be exercised without notice or
liability to Tenant (a) Landlord may install such signs, advertisements,
notices or tenant identification information as it shall reasonably deem
necessary or proper; (b) Landlord shall have the right at any time to control,
change or otherwise alter the common areas as it shall reasonably deem necessary
or proper; and (c) Landlord or Landlord’s agent shall be permitted to inspect
or examine the Leased Premises at any reasonable time upon reasonable notice
(except in an emergency when no notice shall be required), and Landlord shall
have the right to make any repairs to the Leased Premises which are necessary
for its preservation; provided, however, that any repairs made by Landlord
shall be at Tenant’s expense, except as provided in Section 7.01 hereof.
Landlord shall incur no liability to Tenant for such entry, nor shall such
entry constitute an eviction of Tenant or a termination of this Lease, or
entitle Tenant to any abatement of rent therefor.

 

ARTICLE 6 - UTILITIES AND SERVICES

 

Tenant shall obtain in its own name and pay directly to the appropriate
supplier the cost of all utilities and services serving the Leased Premises.
However, if any services or utilities are jointly metered with other property,
Landlord shall make a reasonable determination of Tenant’s proportionate share
of the cost of such utilities and services (at rates that would have been
payable if such utilities and services had been directly billed by the
utilities or services provided to Tenant) and Tenant shall pay such share to
Landlord within fifteen (15) days after receipt of Landlord’s written
statement. Landlord shall not be liable in damages or otherwise for any failure
or interruption of any utility or other building service and no such failure or
interruption shall entitle Tenant to terminate this Lease or withhold sums due
hereunder. In the event of utility “deregulation”, Landlord may choose the
service provider.

 

6

 

Notwithstanding anything in this Lease to the contrary, Landlord shall
use commercially reasonable efforts to promptly restore utility service and in
the event restoration of service is within Landlord’s control and Landlord
negligently Fails to restore such service within a reasonable time, thereby
causing the Leased Premises to be rendered untenantable (meaning that Tenant is
unable to use such space in the normal course of its business) by Tenant for
the use permitted under this Lease for more than ten (10) consecutive days
after notice from Tenant to Landlord that such service has been interrupted and
a reasonable opportunity for Landlord to restore such service, Minimum Annual
Rent and Annual Rental Adjustment shall abate on a per diem basis for each day
after such ten (10) day period during which the Leased Premises remain
untenantable.

 

ARTICLE 7 - MAINTENANCE AND REPAIRS

 

Section 7.01. Landlord’s
Responsibility. During the term of this Lease, Landlord shall maintain in
good condition and repair, and replace as necessary, the electrical systems,
heating and air conditioning systems, sprinkler and plumbing systems, roof,
exterior walls, foundation and structural frame of the Building and the parking
and landscaped areas, the costs of which shall be included in Operating
Expenses; provided, however, that to the extent any of the foregoing items
require repair because of the negligence, misuse, or default of Tenant, its
employees, agents, customers or invitees, Landlord shall make such repairs
solely at Tenant’s expense.

 

Section 7.02. Alterations. Tenant
shall not permit alterations in or to the Leased Premises unless and until the
plans have been approved by Landlord in writing. Notwithstanding anything
contained herein to the contrary, Tenant shall have the right without
Landlord’s consent, and in compliance with all other provisions of this
Section, to make any non-structural alterations to the Leased Premises which do
not materially impact the Building’s mechanical or electrical systems, do not
adversely affect the Building’s appearance or value, and the aggregate cost of
which does not exceed Five Thousand Dollars ($5,000.00) per alteration in the
aggregate, provided that Tenant gives Landlord fifteen (15) business days prior
written notice of any such alterations, along with copies of plans and
specifications relating thereto. As a condition of such approval, Landlord may
require Tenant to remove the alterations and restore the Leased Premises upon
termination of this Lease; otherwise, all such alterations shall at Landlord’s
option become a part of the realty and the property of Landlord, and shall not
he removed by Tenant. Tenant shall ensure that all alterations shall be made in
accordance with all applicable laws, regulations and building codes, in a good
and workmanlike manner and of quality equal to or better than the original
construction of the Building. No person shall be entitled to any lien derived
through or under Tenant for any labor or material furnished to the Leased
Premises, and nothing in this Lease shall be construed to constitute a consent
by Landlord to the creation of any lien. If any lien is filed against the
Leased Premises for work claimed to have been done for or material claimed to
have been furnished to Tenant, Tenant shall cause such lien to be discharged of
record within thirty (30) days after filing. Tenant shall indemnify Landlord
from all costs, losses, expenses and attorneys’ fees in connection with any
construction or alteration and any related lien.

 

ARTICLE 8 - CASUALTY

 

Section 8.01. Casualty. In the
event of total or partial destruction of the Building or the Leased Premises by
fire or other casualty, Landlord agrees to promptly restore and repair same;
provided, however, Landlord’s obligation hereunder shall be limited to the
reconstruction of such

 

7

 

of the tenant finish improvements as were originally required to be
made by Landlord, if any. Rent shall proportionately abate during the time that
the Leased Premises or part thereof are unusable because of any such damage.
Notwithstanding the foregoing, if the Leased Premises are (i) so destroyed that
they cannot be repaired or rebuilt within one hundred eighty (180) days from
the casualty date; or (ii) destroyed by a casualty which is not covered by the
insurance required hereunder or, if covered, such insurance proceeds are not
released by any mortgagee entitled thereto or are insufficient to rebuild the
Building and the Leased Premises; then, in case of a clause (i) casualty,
either Landlord or Tenant may, or, in the case of a clause (ii) casualty, then
Landlord may, upon thirty (30) days written notice to the other party,
terminate this Lease with respect to matters thereafter accruing.

 

Section 8.02. All Risk Coverage
Insurance. During the Lease Term, Landlord shall maintain all risk coverage
insurance on the Building, but shall not protect Tenant’s properly on the
Leased Premises; and, notwithstanding the provisions of Section 9.01,
Landlord shall not be liable for any damage to Tenant’s property, regardless of
cause, including the negligence of Landlord and its employees, agents and
invitees. Tenant hereby expressly waives any right of recovery against Landlord
for damage to any property of Tenant located in or about the Leased Premises,
however caused, including the negligence of Landlord and its employees, agents
and invitees. Notwithstanding the provisions of Section 9.01 below,
Landlord hereby expressly waives any rights of recovery against Tenant for
damage to the Leased Premises or the Building which is insured against under
Landlord’s all risk coverage insurance. All insurance policies maintained by
Landlord or Tenant as provided in this Lease shall contain an agreement by the
insurer waiving the insurer’s right of subrogation against the other party to
this Lease.

 

ARTICLE 9 - LIABILITY INSURANCE

 

Section 9.01. Tenant’s Responsibility.
Landlord shall not be liable to Tenant or to any other person for (i) damage to
property or injury or death to persons due to the condition of the Leased
Premises, the Building or the common areas, or (ii) the occurrence of any
accident in or about the Leased Premises or the common areas, or (iii) any act
or neglect of Tenant or any other tenant or occupant of the Building or of any
other person, unless and to the extent such damage, injury or death is directly
the result of Landlord’s, its employee’s or agent’s negligence; and Tenant
hereby releases Landlord from any and all liability for the same. Tenant shall
be liable for, and shall indemnify and defend Landlord from, any and all
liability for (i) any act or neglect of Tenant and any person coming on the
Leased Premises or common areas by the license of Tenant, express or implied,
(ii) any damage to the Leased Premises, and (iii) any loss of or damage or
injury to any person (including death resulting therefrom) or property occurring
in, on or about the Leased Premises, regardless of cause, except for any loss
or damage covered by Landlord’s all risk coverage insurance as provided in
Section 8.02 and except for and to the extent caused directly by
Landlord’s, its employee’s or agent’s negligence. This provision shall survive
the expiration or earlier termination of this Lease.

 

Section 9.02. Tenant’s Insurance.
Tenant shall carry general public liability and property damage insurance,
issued by one or more insurance companies licensed in the State of Minnesota
and reasonably acceptable to Landlord, with the following minimum coverages:

 

A.                                   Worker’s
Compensation: minimum statutory amount.

 

B.                                     Commercial General
Liability Insurance, including blanket, contractual liability, broad form property
damage, personal injury, completed operations, products liability, and fire

 

8

 

damage: Not less than $3,000,000 Combined Single Limit for both bodily
injury and property damage.

 

C.                                     All Risk Coverage,
Vandalism and Malicious Mischief, and Sprinkler Leakage insurance, if
applicable, for the full cost of replacement of Tenant’s property.

 

D.                                    Business
interruption insurance.

 

The insurance policies shall protect Tenant and Landlord as their
interests may appear, naming Landlord and Landlord’s managing agent and
mortgagee as additional insureds, and shall provide that they may not be
canceled on less than thirty (30) days’ prior written notice to Landlord.
Tenant shall furnish Landlord with Certificates of Insurance evidencing all
required coverages on or before the Commencement Date. If Tenant fails to carry
such insurance and furnish Landlord with such Certificates of Insurance after a
request to do so, Landlord may obtain such insurance and collect the cost
thereof from Tenant.

 

ARTICLE 10 - EMINENT DOMAIN

 

If all or any substantial part of the Building or common areas shall be
acquired by the exercise of eminent domain, Landlord may terminate this Lease
by giving written notice to Tenant on or before the date that actual possession
thereof is so taken. If all or any part of the Leased Premises shall be
acquired by the exercise of eminent domain so that the Leased Premises shall
become unusable by Tenant for the Permitted Use, Tenant may terminate this Lease
as of the date that actual possession thereof is so taken by giving written
notice to Landlord. All damages awarded shall belong to Landlord; provided,
however, that Tenant may claim dislocation damages if such amount is not
subtracted from Landlord’s award.

 

ARTICLE 11 - ASSIGNMENT AND SUBLEASE

 

Tenant shall not assign this Lease or sublet the Leased Premises in
whole or in part without Landlord’s prior written consent, which consent shall
not be unreasonably, withheld, delayed or denied (provided that it shall not be
unreasonable for Landlord to withhold or deny its consent with respect to any
proposed assignment or subletting to a third party that is already a tenant in
the Building or the Park). In the event of any assignment or subletting, Tenant
shall remain primarily liable hereunder, and any extension, expansion, rights
of first offer, rights of first refusal or other options granted to Tenant
under this Lease shall be rendered void and of no further force or effect. The
acceptance of rent from any other person shall not be deemed to be a waiver of
any of the provisions of this Lease or to be a consent to the assignment of
this Lease or the subletting of the Leased Premises. Without in any way
limiting Landlord’s right to refuse to consent to any assignment or subletting
of this Lease, Landlord reserves the right to refuse to give such consent if in
Landlord’s opinion (i) the Leased Premises are or may be in any way adversely
affected; (ii) the business reputation of the proposed assignee or subtenant is
unacceptable; or (iii) the financial worth of the proposed assignee or
subtenant is insufficient to meet the obligations hereunder. Landlord further
expressly reserves the right to refuse to give its consent to any subletting if
the proposed rent is publicly advertised via newspaper or other written
publication to be less than the then current rent for similar premises in the
Park. Tenant agrees to reimburse Landlord for reasonable accounting and
attorneys’ fees incurred in conjunction with the processing and documentation
of any such requested assignment, subletting or any other hypothecation of this
Lease or Tenant’s interest in and to the Leased Premises not to exceed One
Thousand Dollars ($I,000.00) per request. Landlord acknowledges that Tenant intends
to sublet approximately 2,561 square feet of the Leased Premises for a
commencement

 

9

 

date coinciding with the Commencement Date of this Lease or shortly
thereafter, and Landlord agrees to not unreasonably withhold its consent to
such Sublease in accordance with the provisions of this Article 11.

 

ARTICLE 12 - TRANSFERS BY LANDLORD

 

Section 12.01. Sale of the Building.
Landlord shall have the right to sell the Building at any time during the Lease
Term, subject only to the rights of Tenant hereunder; and such sale shall
operate to release Landlord from liability hereunder after the date of such
conveyance.

 

Section 12.02. Subordination and
Estoppel Certificate. Landlord shall have the right to subordinate this
Lease to any mortgage presently existing or hereafter placed upon the Building
by so declaring in such mortgage. Within twenty (20) days following receipt of
a written request from Landlord, Tenant shall execute and deliver to Landlord,
without cost, any instrument which Landlord deems necessary or desirable to
confirm the subordination of this Lease and an estoppel certificate in such
form as Landlord may reasonably request certifying (i) that this Lease is in
full force and effect and unmodified or stating the nature of any modification,
(ii) the date to which rent has been paid, (iii) that there are not, to
Tenant’s knowledge, any uncured defaults or specifying such defaults if any are
claimed, and (iv) any other matters or state of facts reasonably required
respecting the Lease. Such estoppel may be relied upon by Landlord and by any
purchaser or mortgagee of the Building. Notwithstanding the foregoing, if the
mortgagee shall take title to the Leased Premises through foreclosure or deed
in lieu of foreclosure, Tenant shall be allowed to continue in possession of
the Leased Premises as provided for in this Lease so long as Tenant shall not
be in default beyond any applicable cure period.

 

ARTICLE 13 - DEFAULT AND REMEDY

 

Section 13.01. Default. The occurrence
of any of the following shall be a “Default”:

 

(a) Tenant fails to pay any Monthly Rental Installment or Additional
Rent within five (5) days after the same is due, or Tenant fails to pay any
other amounts due Landlord from Tenant within ten (10) days after the same is
due.

 

In the event of a default under subparagraph (a) above, Landlord shall
provide Tenant with written notice of such default one (1) time during each
successive twelve (12) month period of the Lease Term and Tenant shall have an
additional five (5) days to cure such default before Landlord shall declare a
default or exercise its remedies herein.

 

(b) Tenant fails to perform or observe any other term, condition,
covenant or obligation required under this Lease for a period of thirty (30)
days after notice thereof from Landlord; provided, however, that if the nature
of Tenant’s default is such that more than thirty days are reasonably required
to cure, then such default shall be deemed to have been cured if Tenant
commences such performance within said thirty-day period and thereafter
diligently completes the required action within a reasonable time.

 

(c) Tenant shall assign or sublet all or a portion of the Leased
Premises in contravention of the provisions of Article 11 of this Lease.

 

(d) All or substantially all of Tenant’s assets in the Leased Premises
or Tenant’s interest in this Lease are attached or levied under execution (and
Tenant does not discharge the same within sixty (60) days thereafter); a
petition in bankruptcy, insolvency or for reorganization or

 

10

 

arrangement is filed by or against Tenant (and Tenant fails to secure a
stay or discharge thereof within sixty (60) days thereafter); Tenant is
insolvent and unable to pay its debts as they become due; Tenant makes a
general assignment for the benefit of creditors; Tenant takes the benefit of
any insolvency action or law; the appointment of a receiver or trustee in
bankruptcy for Tenant or its assets if such receivership has not been vacated
or set aside within thirty (30) days thereafter; or, dissolution or other
termination of Tenant’s corporate charter if Tenant is a corporation.

 

Section 13.02. Remedies. Upon the
occurrence of any Default, Landlord shall have the following rights and
remedies, in addition to those allowed by law or in equity, any one or more of
which may be exercised without further notice to Tenant:

 

(a) Landlord may apply the Security Deposit or re-enter the Leased
Premises and cure any default of Tenant, and Tenant shall reimburse Landlord as
additional rent for any costs and expenses which Landlord thereby incurs; and
Landlord shall not be liable to Tenant for any loss or damage which Tenant may
sustain by reason of Landlord’s action.

 

(b) Landlord may terminate this Lease or, without terminating this
Lease, terminate Tenant’s right to possession of the Leased Premises as of the
date of such Default, and thereafter (i) neither Tenant nor any person claiming
under or through Tenant shall be entitled to possession of the Leased Premises,
and Tenant shall immediately surrender the Leased Premises to Landlord; and
(ii) Landlord may re-enter the Leased Premises and dispossess Tenant and any
other occupants of the Leased Premises by any lawful means and may remove their
effects, without prejudice to any other remedy which Landlord may have. Upon
the termination of this Lease, Landlord may declare the present value
(discounted at the Prime Rate) of all rent which would have been due under this
Lease for the balance of the Lease Term to be immediately due and payable,
whereupon Tenant shall be obligated to pay the same to Landlord, together with
all loss or damage which Landlord may sustain by reason of Tenant’s default
(“Default Damages”), which shall include without limitation expenses of
preparing the Leased Premises for re-letting, demolition, repairs, tenant
finish improvements; brokers’ commissions and attorneys’ fees, it being
expressly understood and agreed that the liabilities and remedies specified in
this subsection (b) shall survive the termination of this Lease.

 

(c) Landlord may, without terminating this Lease, re-enter the Leased
Premises and re-let all or any part thereof for a term different from that
which would otherwise have constituted the balance of the Lease Term and for
rent and on terms and conditions different from those contained herein,
whereupon Tenant shall be immediately obligated to pay to Landlord as
liquidated damages the present value (discounted at the Prime Rate) of the
difference between the rent provided for herein and that provided for in any
lease covering a subsequent re-letting of the Leased Premises, for the period
which would otherwise have constituted the balance of the Lease Term, together
with all of Landlord’s Default Damages.

 

(d) Landlord may sue for injunctive relief or to recover damages for
any loss resulting from the Default.

 

Section 13.03. Landlord’s Default and
Tenant’s Remedies. Landlord shall be in default if it fails to perform any
term, condition, covenant or obligation required under this Lease for a period
of thirty (30) days after written notice thereof from Tenant to Landlord;
provided, however, that if the term, condition, covenant or obligation to be
performed by Landlord is such that it cannot reasonably be performed within
thirty days, such default shall be deemed to have

 

11

 

been cured if Landlord commences such performance within said
thirty-day period and thereafter diligently undertakes to complete the same.
Upon the occurrence of any such default, Tenant may sue for injunctive relief
or to recover damages for any loss directly resulting from the breach, but
Tenant shall not be entitled to terminate this Lease or withhold, offset or
abate any sums due hereunder.

 

Section 13.04. Limitation
of Landlord’s Liability. If Landlord shall fail to perform any term,
condition, covenant or obligation required to be performed by it under this
Lease and if Tenant shall, as a consequence thereof, recover a money judgment
against Landlord, Tenant agrees that it shall look solely to Landlord’s right,
title and interest in and to the Building for the collection of such judgment;
and Tenant further agrees that no other assets of Landlord shall be subject to
levy, execution or other process for the satisfaction of Tenant’s judgment.

 

Section 13.05. Nonwaiver of Defaults.
Neither party’s failure or delay in exercising any of its rights or remedies or
other provisions of this Lease shall constitute a waiver thereof or affect its
right thereafter to exercise or enforce such right or remedy or other
provision. No waiver of any default shall be deemed to be a waiver of any other
default. Landlord’s receipt of less than the full rent due shall not be
construed to be other than a payment on account of rent then due, nor shall any
statement on Tenant’s check or any letter accompanying Tenant’s check be deemed
an accord and satisfaction. No act or omission by Landlord or its employees or
agents during the Lease Term shall be deemed an acceptance of a surrender of
the Leased Premises, and no agreement to accept such a surrender shall be valid
unless in writing and signed by Landlord.

 

Section 13.06. Attorneys’ Fees. If
either party defaults in the performance or observance of any of the terms,
conditions, covenants or obligations contained in this Lease and the
non-defaulting party obtains a judgment against the defaulting party, then the
defaulting party agrees to reimburse the non-defaulting party for reasonable
attorneys’ fees incurred in connection therewith.

 

ARTICLE 14 - LANDLORD’S RIGHT TO
RELOCATE TENANT

 

[Intentionally
Omitted]

 

ARTICLE 15 - TENANT’S RESPONSIBILITY
REGARDING

ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES.

 

Section 15.01. Definitions.

 

a.                                       “Environmental
Laws” - All present or future federal, state and municipal laws, ordinances,
rules and regulations applicable to the environmental and ecological condition
of the Leased Premises, the rules and regulations of the Federal Environmental
Protection Agency or any other federal, state or municipal agency or
governmental board or entity having jurisdiction over the Leased Premises.

 

b.                                      “Hazardous
Substances” - Those substances included within the definitions of “hazardous
substances,” “hazardous materials,” “toxic substances” “solid waste” or
“infectious waste” under Environmental Laws.

 

Section 15.02. Compliance. Tenant,
at its sole cost and expense, shall promptly comply with the Environmental Laws
including any notice from any source issued pursuant to the Environmental Laws
or issued by any insurance company which shall impose any duty upon

 

12

 

Tenant with respect to the use, occupancy, maintenance or alteration of
the Leased Premises whether such notice shall be served upon Landlord or
Tenant.

 

Section 15.03. Restrictions on Tenant.
Tenant shall operate its business and maintain the Leased Premises in
compliance with all Environmental Laws. Tenant shall not cause or permit the
use, generation, release, manufacture, refining, production, processing,
storage or disposal of any Hazardous Substances on, under or about the Leased
Premises, or the transportation to or from the Leased Premises of any Hazardous
Substances, except as necessary and appropriate for its Permitted Use in which
case the use, storage or disposal of such Hazardous Substances shall be
performed in compliance with the Environmental Laws and the highest standards
prevailing in the industry.

 

Section 15.04. Notices, Affidavits,
Etc. Tenant shall immediately notify Landlord of (i) any violation by
Tenant, its employees, agents, representatives, customers, invitees or
contractors of the Environmental Laws on, under or about the Leased Premises,
or (ii) the presence or suspected presence of any Hazardous Substances on,
under or about the Leased Premises and shall immediately deliver to Landlord
any notice received by Tenant relating to (i) and (ii) above from any source.
Tenant shall execute affidavits, representations and the like within ten (10)
days of Landlord’s request therefor concerning Tenant’s best knowledge and
belief regarding the presence of any Hazardous Substances on, under or about
the Leased Premises.

 

Section 15.05. Landlord’s Rights.
Landlord and its agents shall have the right, but not the duty, upon advance
notice (except in the case of emergency when no notice shall be required) to
inspect the Leased Premises and conduct tests thereon to determine whether or
the extent to which there has been a violation of Environmental Laws by Tenant
or whether there are Hazardous Substances on, under or about the Leased
Premises. In exercising its rights herein, Landlord shall use reasonable
efforts to minimize interference with Tenant’s business but such entry shall
not constitute an eviction of Tenant, in whole or in part, and Landlord shall
not be liable for any interference, loss, or damage to Tenant’s property or
business caused thereby, except and to the extent caused by Landlord’s
negligence.

 

Section 15.06. Tenant’s
Indemnification. Tenant shall indemnify Landlord and Landlord’s managing
agent from any and all claims, losses, liabilities, costs, expenses and
damages, including attorneys’ fees, costs of testing and remediation costs,
incurred by Landlord in connection with any breach by Tenant of its obligations
under this Article 15. The covenants and obligations under this
Article 15 shall survive the expiration or earlier termination of this
Lease.

 

Section 15.07. Landlord’s
Representation.                   Notwithstanding
anything contained in this Article 15 to the contrary, Tenant shall not
have any liability to Landlord under this Article 15 resulting from any
conditions existing, or events occurring, or any Hazardous Substances existing
or generated, at, in, on, under or in connection with the Leased Premises prior
to the Commencement Date of this Lease or if not caused by Tenant except to the
extent Tenant exacerbates the same.

 

ARTICLE 16 - MISCELLANEOUS

 

Section 16.01. Benefit of Landlord and
Tenant. This Lease shall inure to the benefit of and be binding upon Landlord
and Tenant and their respective successors and assigns.

 

13

 

Section 16.02. Governing Law. This
Lease shall be governed in accordance with the laws of the State where the
Building is located.

 

Section 16.03. Guaranty. [Intentionally
Omitted].

 

Section 16.04. Force Majeure.
Landlord and Tenant (except with respect to the payment of any monetary
obligation) shall be excused for the period of any delay in the performance of
any obligation hereunder when such delay is occasioned by causes beyond its
control, including but not limited to work stoppages, boycotts, slowdowns or
strikes; shortages of materials, equipment, labor or energy; unusual weather
conditions; or acts or omissions of governmental or political bodies.

 

Section 16.05. Examination of Lease.
Submission of this instrument for examination or signature to Tenant does not
constitute a reservation of or option for Lease, and it is not effective as a
Lease or otherwise until execution by and delivery to both Landlord and Tenant.

 

Section 16.06. Indemnification for
Leasing Commissions. The parties hereby represent and warrant that the only
real estate brokers involved in the negotiation and execution of this Lease are
the Brokers identified in the Basic Lease Provisions. Each party shall
indemnify the other from any and all liability for the breach of this
representation and warranty on its part and shall pay any compensation to any
other broker or person who may be entitled thereto. Landlord shall pay a brokerage
commission to the Broker representing Tenant pursuant to separate agreement. In
no event shall Landlord be responsible or liable for payment of any broker
commission claimed by the Broker representing Tenant in excess of (i) five
percent (5%) of the total base rent for the first sixty-two (62) months of the
Lease Term; and (ii) two percent (2%) of the total base rent for months
sixty-three (63) through eighty-six (86), nor for the payment of any commission
charge or fee for any expansion of the Leased Premises or extension or renewal
of the Lease Term.

 

Section 16.07. Notices. Any notice
required or permitted to be given under this Lease or by law shall be deemed to
have been given if it is written and delivered in person or by overnight
courier or mailed by certified mail, postage prepaid, to the party who is to
receive such notice at the address specified in Article 1. If delivered in
person, notice shall be deemed given as of the delivery date. If sent by
overnight courier, notice shall be deemed given as of the first business day
after sending. If mailed, the notice shall be deemed to have been given on the
date which is three business days after mailing. Either party may change its
address by giving written notice thereof to the other party.

 

Section 16.08. Partial Invalidity:
Complete Agreement. If any provision of this Lease shall be held to be
invalid, void or unenforceable, the remaining provisions shall remain in full
force and effect. This Lease represents the entire agreement between Landlord
and Tenant covering everything agreed upon or understood in this transaction.
There are no oral promises, conditions, representations, understandings,
interpretations or terms of any kind as conditions or inducements to the
execution hereof or in effect between the parties. No change or addition shall
be made to this Lease except by a written agreement executed by Landlord and
Tenant.

 

Section 16.09. Financial Statements.
During the Lease Term and any extensions thereof, Tenant shall provide to
Landlord not more than one (1) time per each Lease year and within thirty (30)
days of Landlord’s written request therefor, a copy of Tenant’s most recent
financial statements (certified and audited if the Minimum Annual Rent
hereunder exceeds $100,000.00) prepared as of the end of Tenant’s fiscal year.
Such financial statements shall be signed by

 

14

 

Tenant who shall attest to the truth and accuracy of the information
set forth in such statements. All financial statements provided by Tenant to
Landlord hereunder shall be prepared in conformity with generally accepted
accounting principles, consistently applied.

 

Section 16.10. Representations and
Warranties. The undersigned represent and warrant that (i) such party is
duly organized, validly existing and in good standing (if applicable) in
accordance with the laws of the state under which it was organized; and (ii)
the individual executing and delivering this Lease has been properly authorized
to do so, and such execution and delivery shall bind such party.

 

Section 16.11. Early Occupancy.
Landlord will allow Tenant to enter the Leased Premises two (2) weeks prior to
the Commencement Date for fixturing purposes. Tenant agrees to coordinate its
fixturing work with the work of Landlord such that Tenant’s work does not
interfere with or delay Landlord’s work; provided, however, that neither
Landlord nor any of Landlord’s affiliates shall have any responsibility or
liability whatsoever for any injury (including death) to persons or loss or
damage to any of Tenant’s leasehold improvements, fixtures, equipment or any
other materials or property installed or left in the Leased Premises prior to
the Commencement Date. All of the terms and conditions of this Lease will
become effective upon Tenant entering the Leased Premises for the purposes
permitted hereunder, except for the payment of Minimum Annual Rent and
Additional Rent which will commence on the Commencement Date.

 

Section 16.12. Option to Extend.

 

A. Grant and Exercise of Option. Provided that (i) Tenant has
not been in default hereunder at any time during the Term of this Lease beyond
any applicable cure period (the “Original Term”), (ii) the creditworthiness of
Tenant is then acceptable to Landlord, (iii) Tenant originally named herein
remains in possession of and has been continuously operating in the entire
Leased Premises throughout the Original Term and (iv) the current use of the
Leased Premises is acceptable to Landlord, Tenant shall have one (1) option to
extend the Original Term for one (I) additional period of either three (3)
years or five (5) years (the “Extension Term”). The Extension Term shall be
upon the same terms and conditions contained in the Lease for the Original Term
except (i) Tenant shall not have any further option to extend and (ii) the
Minimum Annual Rent shall be adjusted as set forth herein (“Rent Adjustment”).
Tenant shall exercise such option by delivering to Landlord, no sooner than
twelve (12) months and no later than nine (9) months prior to the expiration of
the Original Term, written notice of Tenant’s desire to extend the Original
Term and Tenant’s election to extend for either (3) years or five (5) years.
Tenant’s failure to properly exercise such option shall waive it. If Tenant
properly exercises its option to extend, Landlord shall notify Tenant of the
Rent Adjustment no later than thirty (30) days after Tenant’s exercise of its
option to extend. Tenant shall be deemed to have not accepted the Rent
Adjustment if it fails to deliver to Landlord a written approval thereto within
ten (10) business days after receipt thereof. If Tenant properly exercises its
option to extend, Landlord and Tenant shall execute an amendment to the Lease
(or, at Landlord’s option, a new lease on the form then in use for the
Building) reflecting the terms and conditions of the Extension Term, within
thirty (30) days after Tenant’s acceptance of the Rent Adjustment.

 

B. Market Rent Adjustment. The Minimum Annual Rent for the
Extension Term shall be an amount equal to the Minimum Annual Rent then being
quoted by Landlord to prospective new tenants of the Building for a similar
term and for space of comparable size and quality and with similar or
equivalent improvements as are found in the Building, and if none, then in
similar buildings in the vicinity, excluding free rent and other concessions;
provided, however, that in no

 

15

 

event shall the Minimum Annual Rent during the Extension Term be less
than the highest Minimum Annual Rent payable during the Original Term. The
Minimum Monthly Rent shall be an amount equal to one-twelfth (1/ 12) of the
Minimum Annual Rent for the Extension Term and shall be paid at the same time
and in the same manner as provided in the Lease.

 

Section 16.13. Right
of First Offer. Provided that (i) Tenant has not been in default hereunder
at any time during the Lease Term beyond any applicable cure period, (ii) the
creditworthiness of Tenant is then acceptable to Landlord, (iii) Tenant originally
named herein remains in possession of and has been continuously operating in
the entire Leased Premises throughout the Lease Term, and (iv) the current use
of the Leased Premises is acceptable to Landlord, and subject to any rights of
other tenants to the Offer Space, Landlord shall, before entering into a lease
with a third party for the space crosshatched on the attached Exhibit A-1
containing approximately 25,536 rentable square feet of space (the “Offer
Space”), notify Tenant in writing of the terms and conditions under which the
Offer Space would be made available for leasing (“Landlord’s Notice”). Tenant
shall have ten (10) business days after delivery of Landlord’s Notice to
deliver to Landlord Tenant’s written agreement to lease such space on the terms
and conditions contained in Landlord’s Notice. In the event Tenant fails to
deliver to Landlord its agreement within said ten (10) day period, such failure
shall be conclusively deemed a rejection of the Offer Space, whereupon Tenant
shall have no further rights with respect to the Offer Space and Landlord shall
be free to lease the Offer Space to a third party. In the event the existing
tenant of the Offer Space does not renew its lease and Tenant does not exercise
its option to lease the Offer Space, Tenant shall have the option to lease only
the adjacent two (2) bays adjacent to the Offer Space. Tenant shall notify
Landlord of its desire to lease only the two (2) bays within ten (10) business
days after deliver of Landlord’s notice. In the event Tenant leases the Offer
Space or, alternatively the two (2) bays, such leasing shall be on the same
terms and conditions as set forth in this Lease, except as provided below, and
except as may be specified in Landlord’s Notice. Tenant shall accept possession
of the Offer Space or two (2) bays “as is” and there shall be no Landlord’s
Allowance. The Commencement Date for the Offer Space or two (2) bays shall
occur within forty-five (45) days after delivery of Landlord’s Notice or upon
substantial completion of any tenant finish improvements in the Offer Space
whichever is sooner. The term for the Offer Space or two (2) bays shall be
coterminous with the term for the original Leased Premises; provided, however,
that the minimum term for the Offer Space shall be two (2) years and the term
for the original Leased Premises shall be extended, if necessary, to be
coterminous with the term for the Offer Space. The Minimum Annual Rent for the
Offer Space or two (2) bays shall be equal to the rate which is then being quoted
by Landlord to prospective new tenants for the Offer Space or two (2) bays,
excluding free rent and other concessions, provided, however, that in no event
shall Tenant’s Minimum Annual Rent per square foot for the Offer Space or two
(2) bays be less than the highest Minimum Annual Rent per square foot payable
during the original Lease Term for the original Leased Premises. The Minimum
Annual Rent for the original Leased Premises during any such extended term
shall be an amount equal to the Minimum Annual Rent then being quoted by
Landlord to prospective new tenants of the Building for space of comparable
size and quality and with similar or equivalent improvements as are found in
the Building, and if none, then in similar buildings in the vicinity, excluding
free rent and other concessions, provided, however, that in no event shall the
Minimum Annual Rent during such extended term be less than the highest Minimum
Annual Rent payable during the original Lease Term for the original Leased
Premises. It is understood and agreed that this option shall not be construed
to prevent any tenant in the Building from extending or renewing its lease or
expanding its leased premises. Notwithstanding anything contained herein to the
contrary, Landlord hereby agrees that any lease entered into for the Offer
Space with an initial tenant shall not exceed a five (5) year lease term.

 

16

 

IN WITNESS WHEREOF, the parties hereto have executed this Lease as of
the day and year first above written.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  DUKE REALTY LIMITED PARTNERSHIP,

  an Indiana limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Duke Realty Investments, Inc.,

  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/James W. Gray

  	
   

  
	
   

  	
   

  	
   

  	
  James W. Gray

  
	
   

  	
   

  	
   

  	
  Vice President and

  
	
   

  	
   

  	
   

  	
  General Manager

  
	
   

  	
   

  	
   

  	
  Minnesota Office Group

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  CADY COMMUNICATIONS, INC.,

  a Minnesota corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/James J. Lawrence

  	
   

  
	
   

  	
   

  
	
   

  	
  Printed:

  	
   

  	
  /s/James J. Lawrence

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
  /s/President

  	
   

  
										

 

STATE
OF                        )

)SS:

COUNTY
OF                    )

 

Before me, a Notary Public in and for said County and State, personally
appeared                               /s/James
Lawrence , by me known and by me known to be
the                             /s/
of Cady Communications, Inc., a Minnesota corporation, who acknowledged the
execution of the above and foregoing Lease Agreement for and on behalf of said
corporation.

 

WITNESS my hand and Notarial Seal this 21 day of May, 1999.

 

	
  

  	
  /s/Vicki A. Michaels

  	
   

  
	
  Notary Public

  	
   

  
	
   

  	
   

  
	
  /s/Vicki A. Michaels

  	
   

  
	
  (Printed Signature)

  	
   

  

My Commission
Expires:                    

 

My County of
Residence:                     

 

17

 

 

18

 

 

19

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