Document:

Exhibit 10.3

 

LEASE

     THIS LEASE (this “Lease”), dated April 21, 2005 (the “Effective Date”), is made by and between
IAC Chicago L.L.C., a Delaware limited liability company (“Landlord”), and Dayton Superior
Corporation, an Ohio corporation (“Tenant”), upon the following terms and conditions:

ARTICLE I — DEFINITIONS

     Unless the context otherwise specifies or requires, the following terms shall have the
following meanings:

     1.01 “Building”: The four (4) manufacturing, office and/or storage facilities located
at 200 East Touhy Avenue, Des Plaines, Illinois, which, collectively, contain approximately 163,000
square feet of space.

     1.02 “Premises”: The Building and all related site land, improvements, parking
facilities, driveways, truck courts, docks, dock aprons, sidewalks, detention ponds and
landscaping, as outlined on the drawing attached hereto as Exhibit A.

     1.03 “Lease Term” or “Term”: The period from and including the Commencement Date,
through and including the Expiration Date, unless sooner terminated or renewed, as otherwise
expressly provided in this Lease.

     1.04 “Commencement Date”: The Effective Date.

     1.05 “Expiration Date”: Twenty-four (24) months after the Commencement Date.

     1.06 “Base Rent”:   Year One:      $696,489.60 annually ($58,040.80 per month),

                                       Year Two:       $710,419.39 annually ($59,201.62 per month).

     1.07 “Security Deposit”: None.

     1.08 “Tenant’s Permitted Use”: Any use permitted by Applicable Law (as hereinafter
defined), and no other use.

     1.09 “Landlord’s Address for Notices”: IAC Chicago L.L.C., 1849 Green Bay Road,
4th Floor, Highland Park, IL 60035, Attn: Managing Director & Chief Operating Officer;
with a copy to the then current Mortgagee (as hereinafter defined), as notified by Landlord from
time to time.

     1.10 “Tenant’s Address for Notices”: Mark K. Kaler, Dayton Superior Corporation, 7777
Washington Village Drive, Suite 130, Dayton, OH 45459; with a copy to Steven C. Huston, Dayton
Superior Corporation, 200 East Touhy Avenue, Des Plaines, IL 60018.

     1.11 “Broker”: None.

     1.12 “Guarantor”: None.

ARTICLE II — PREMISES

     2.01 Lease of Premises. Landlord leases the Premises to Tenant, and Tenant leases the
Premises from Landlord, upon all of the terms, covenants and conditions contained in this Lease.
On the Commencement Date, Landlord shall deliver the Premises to Tenant in the condition described
in Section 2.02 of this Lease.

     2.02 Acceptance of Premises. Prior to the Commencement Date, either Tenant or Symons
Corporation, a Delaware corporation (“Symons”), and a wholly-owned subsidiary of Tenant, owned, and
operated a portion of its business at, the Premises. As a result, Tenant is intimately familiar
with the condition of the Premises and, therefore, accepts the Premises in its current “as is”,
“where is” condition and “with all faults”, and with full knowledge of all faults and defects,
latent or patent, affecting the Premises, without any agreements, representations or obligations on
the part of Landlord. Moreover, Tenant acknowledges that, as of the Commencement Date, certain
materials that comprise the Building consist of asbestos-containing materials (“ACMs”), which
require the maintenance of the ACMs in good condition under an asbestos operation and maintenance
program that shall be conducted in accordance with all applicable Environmental Laws (as
hereinafter defined; any such program, a “Qualified Asbestos Maintenance Program”). Thus, Tenant
hereby forever waives and releases any and all claims, demands and/or rights that Tenant otherwise
might have against Landlord and/or any of Landlord’s Parties (as hereinafter defined) due to the
presence of such ACMs in and/or at the Building, as of the Commencement Date. Upon taking
possession of the Premises, Tenant shall execute Landlord’s then current form of suite acceptance
letter, which shall be materially in the form and of the substance contained in the form of suite
acceptance letter set forth on Exhibit D attached hereto.

ARTICLE III — TERM

     3.01 Term. Except as otherwise provided in this Lease, the Lease Term shall be for
the period described in Section 1.03 of this Lease; provided, however, that Tenant shall have the
right, in its sole discretion, to terminate this lease at any time during the initial Lease Term or
the Renewal Term (as hereinafter defined), if applicable, upon one hundred eighty (180) days’ prior
written notice to Landlord.

     3.02 Renewal.

          (A) Tenant shall have an option (the “Renewal Option”), for all, but not less than all, of the
Premises, for a term of one (1) year (the “Renewal Term”), subject to the remaining terms and
conditions of this section.

 

 

          (B) The Renewal Term, if applicable, automatically shall commence on the day immediately
succeeding the Expiration Date and expire on the date that shall be one (1) year after the
Expiration Date, unless Tenant delivers to Landlord written notice of its intention to terminate
this Lease no later than one hundred eighty (180) days prior to the Expiration Date.

          (C) During the Renewal Term, Tenant shall lease the Premises upon the same terms and
conditions as set forth in this Lease, except that the annual Base Rent payable with respect to the
Renewal Term shall be $724,627.78 ($60,385.65 per month).

          (D) If the initial Lease Term shall be renewed in accordance with the terms and conditions of
this section, Landlord and Tenant shall execute and deliver an amendment to this Lease reflecting
the renewal of the Lease Term, upon the terms herein provided, which amendment shall be executed
and delivered no later than one hundred fifty (150) days prior to the Expiration Date.

          (E) Tenant agrees to accept the Premises in its then “as-is”, “where-is” physical condition,
and “with all faults” on the commencement date of the Renewal Term and Tenant shall not be entitled
to any credit or allowance or other economic concession from Landlord for the improvement thereof,
or otherwise.

          (F) The Renewal Option automatically shall terminate and become null and void and of no
further force or effect, upon the earliest to occur of (i) the early termination of this Lease,
(ii) the termination of Tenant’s right to possession of the Premises, (iv) the failure of Tenant to
timely or properly exercise the Renewal Option, or otherwise perform any of its obligations, in
strict accordance with the terms of this section, (v) the default by Tenant under this Lease, which
shall not have been cured prior to the expiration of all applicable notice and cure periods
provided in Section 15.01 or (vi) the sublease by Tenant of all or any portion of the Premises or
the Transfer (as hereinafter defined) of this Lease, other than to an Affiliate (as hereinafter
defined) of Tenant or a Permitted Transferee (as hereinafter defined) in accordance with the
express terms and conditions of Section 14.01. Furthermore, notwithstanding anything to the
contrary herein contained, the terms and conditions of the Renewal Option outlined in this section
are independent of the terms and conditions of any other provisions of this Lease, including,
without limitation, Section 22.21 regarding the Right of First Opportunity (as hereinafter
defined). Therefore, regardless of whether or not (a) Tenant shall have delivered to Landlord a
Tenant’s Right of First Opportunity Notice (as hereinafter defined), (b) Landlord shall have
delivered to Tenant a Landlord’s Right of First Opportunity Notice (as hereinafter defined) and/or
(c) Landlord and Tenant shall have entered into a Development Lease (as hereinafter defined) or a
Development Agreement (as hereinafter defined), Tenant shall have an express duty and obligation to
exercise the Renewal Option, if at all, strictly in accordance with the terms and conditions of
this section.

          (G) Tenant shall have no further option to renew the Lease Term beyond the expiration of the
Renewal Term and Tenant shall be responsible for any brokerage or leasing commissions owed Broker
or any other party due to any renewal of the Lease Term by Tenant.

          (H) Notwithstanding anything to the contrary herein contained, upon the commencement of the
Renewal Term, if applicable, the terms “Lease Term” and “Term” also shall be deemed to include the
Renewal Term.

ARTICLE IV — RENTAL

     4.01 Definitions.

          (A) “Property Taxes” means the aggregate amount of all real estate taxes, payments in lieu of
taxes, possessory interest taxes, assessments (whether they be general or special), sewer rents and
charges, transit taxes, taxes based upon the receipt of rent (including, without limitation, any
gross receipts tax, license fee or excise tax) and any other federal, state or local governmental
charge, general, special, ordinary or extraordinary (but not including income or franchise taxes,
capital stock, inheritance, estate, gift, or any other taxes imposed upon or measured by Landlord’s
gross income or profits, unless the same shall be imposed in lieu of ad valorem taxes), and any
other tax or charge imposed with respect to all or any portion of the Premises, the execution of
this Lease, or Tenant’s use or occupancy of the Premises, or any part thereof.

          (B) “Operating Expenses” means all costs and expenses incurred in the operation, ownership,
maintenance, replacement, servicing, compliance and repair of the Premises, which may include, but
not be limited to, if applicable: costs for security, utility charges; HVAC service and maintenance
contracts costs; costs for repairs to walks, drives, parking areas, or any other improvements on
the land; license, permit and inspection fees; grounds care costs, including snow removal,
landscaping and lawn, tree and shrubbery care; costs for striping and resurfacing the parking lot;
costs for labor, supplies, materials, equipment, tools and insurance premiums connected therewith;
all costs of maintenance and redecoration of the exterior of the Building, including repainting and
glazing. Notwithstanding anything contained herein to the contrary, the foregoing costs and
expenses may be incurred by Tenant at its sole direction and in its sole discretion; provided,
however, that, regardless of whether or not Tenant shall incur any or all of the foregoing costs
and/or expenses, nothing contained in this Section 4.01(B) shall be deemed or construed as a waiver
or release of any of the remaining terms, provisions and/or conditions of this Lease, but rather,
throughout the initial Lease Term and the Renewal Term, if applicable, Tenant shall be bound by all
of such terms, provisions and conditions and shall be required to satisfy all of Tenant’s other
obligations under this Lease in accordance with the express terms and conditions hereof, including,
but not limited to, Tenant’s obligation to (i) use, occupy and maintain the Premises in accordance
with Applicable Law and the other terms and conditions of Section 6.02, (ii) use and occupy the
Premises in accordance with the terms and conditions of Section 6.03, including, without
limitation, the maintenance of the ACMs under a Qualified Asbestos Maintenance Program, (iii)
maintain the utilities, utility lines and connections, sanitary sewers, storm sewers and other
utility lines and connections (collectively, the “Utilities Infrastructure”) in accordance with the
applicable terms and conditions of Sections 8.02 and 8.03 and (iv) surrender the Premises to
Landlord, upon the expiration or earlier termination of the initial Lease Term or the Renewal Term,
if applicable, in accordance with the terms and conditions of this Lease, including, without
limitation, Sections 9.03 and 21.01.

          (C) “Insurance Expenses” means all costs for premiums for all insurance required, pursuant to
the provisions of this Lease, to be procured and maintained by Tenant in connection with or
relating to the Premises.

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     4.02 Payment. Notwithstanding anything contained herein to the contrary, all Property
Taxes, Operating Expenses and Insurance Expenses (collectively, the “Tax, Operating and Insurance
Expenses”), which relate to all or any portion of the Lease Term and/or the Renewal Term, if
applicable, shall be the sole and exclusive obligation and responsibility of Tenant. Accordingly,
Tenant shall pay, as and when due, the Tax, Operating and Insurance Expenses, as follows:

          (A) Tenant shall pay all Property Taxes payable as to the Premises and attributable to all or
any portion of a calendar year that shall comprise all or a portion of the Lease Term and/or the
Renewal Term, if applicable, directly to the relevant taxing authority having jurisdiction over the
Premises.

          In furtherance of the foregoing, and in recognition of the fact that, at the very least,
general real estate taxes payable as to the Premises shall be imposed by Cook County, Illinois (the
“County”), which collects such taxes in arrears, Tenant acknowledges and agrees that all or a
portion of the Property Taxes payable as to the Premises and attributable to all or some portion of
the final calendar year that shall comprise all or a portion of the Lease Term or the Renewal Term,
if applicable, will not be collected by the County, until after the expiration or earlier
termination of the Lease Term or the Renewal Term, if applicable.

          As a result of the foregoing, on or prior to the first day of the thirteenth (13th)
month of the Lease Term (or the first month of the Renewal Term, if applicable), and on the first
day of each month thereafter, throughout the balance of the Lease Term, Tenant shall pay to
Landlord, as Rent, in addition to all other sums due and payable by Tenant to Landlord hereunder,
an amount equal to one-twelfth (1/12th) of the estimated amount of Property Taxes that shall be
payable as to the Premises and attributable to all or some portion of the final calendar year that
shall comprise all or a portion of the Lease Term and/or the Renewal Term, if applicable, which
estimated amount shall be based on the bill issued by the County for collection of the Property
Taxes payable as to the Premises and attributable to the calendar year immediately preceding such
final calendar year. Once the County shall have issued the actual bill for the Property Taxes as
to the Premises and attributable to such final calendar year, if the total amount of the actual
Property Taxes payable as to the Premises and attributable to such final calendar year shall be
more than the estimated payments for such calendar year made by Tenant, then Tenant shall pay the
deficiency to Landlord, within thirty (30) days of receipt by Tenant of a written demand for such
payment. On the other hand, if the actual Property Taxes payable as to the Premises and
attributable to such final calendar year shall be less than the estimated payments for such
calendar year made by Tenant, then any excess shall be paid to Tenant, or retained by Landlord and
credited towards any amounts then due and payable by Tenant to Landlord, pursuant to the remaining
provisions of this Lease, if applicable. The termination of this Lease shall not affect the
obligations of Landlord and Tenant pursuant to this Section 4.02(A) to be performed after such
termination.

          (B) Tenant shall pay all Operating Expenses incurred as to the Premises and attributable to
all or any portion of the Lease Term and/or the Renewal Term, if applicable, directly to the
provider of the product(s) and/or services(s), for which any and all of the Operating Expenses
shall have been incurred. Notwithstanding anything contained herein to the contrary, Tenant shall
not be deemed in default of its obligations under this Lease solely due to a failure to timely pay
any such Operating Expenses, so long as such failure shall not (i) result in a Lien against or on
the Premises, subject Tenant’s right to contest the same in accordance with the terms and
conditions of Section 9.02, or (ii) otherwise constitute a default by Tenant under this Lease for
any reason not solely due to such failure, including, without limitation, a default by Tenant as to
its obligation to (a) use, occupy and maintain the Premises in accordance with Applicable Law and
the other terms and conditions of Section 6.02, (b) use and occupy the Premises in accordance with
the terms and conditions of Section 6.03, including, without limitation, the maintenance of the
ACMs under a Qualified Asbestos Maintenance Program, and/or (c) maintain the Utilities
Infrastructure in accordance with the applicable terms and conditions of this Lease, including, but
not limited to, Sections 8.02 and 8.03.

          (C) Tenant shall pay all Insurance Expenses incurred as to the Premises and attributable to
all or any portion of the Lease Term and/or the Renewal Term, if applicable, directly to the
provider of the product(s) and/or services(s), for which any and all of the Insurance Expenses
shall have been incurred.

          (D) Notwithstanding anything contained herein to the contrary, Tenant, in connection with its
use of the Premises, shall not cause Landlord and/or any of Landlord’s Parties to have any
obligation, liability and/or responsibility for any Operating Expenses and/or Insurance Expenses
attributable to any product(s) and/or services(s), for which any and all of the Operating Expenses
shall have been incurred, whether as to the period prior to the Commencement Date, the Lease Term,
the Renewal Term, if applicable, and/or the period following the expiration or earlier termination
of this Lease, but rather, the payment of all of such Operating Expenses and Insurance Expenses
shall be the exclusive obligation, liability and responsibility of Tenant, which obligations,
liabilities and responsibilities shall survive the expiration or earlier termination of this Lease.

     4.03 Base Rent. During the Lease Term, Tenant shall pay to Landlord for the Premises
as part of Rent, the annual Base Rent in monthly installments as described in Section 1.06. Upon
execution hereof, Tenant shall pay Landlord Base Rent attributable to the first calendar month of
the Lease Term. Thereafter, the annual amount of Base Rent due Landlord shall be payable in equal
monthly installments due in advance on the first day of each calendar month without notice, demand,
abatement, deduction or offset for any reason, except as specifically provided to the contrary in
Article XI. If the Commencement Date is other than the first day of a calendar month, any prepaid
Base Rent for the first month of the Term shall be prorated in the proportion that the number of
days this Lease is in effect during such partial month bears to the total number of days in such
month.

     4.04 Late Charge; Interest. In addition to any other rights and remedies of Landlord
for Tenant’s default hereunder, if Landlord shall receive Rent after five (5) days after the date
the payment thereof is due, Tenant shall pay to Landlord a late charge of Five Hundred and No/100
Dollars ($500.00) to cover administrative costs, so long as Landlord shall have received such Rent
on or prior to fifteen (15) days after the date such payment is due; provided, however, that, if
Landlord shall not have received such Rent as of sixteen (16) days after the date such payment is
due, Tenant shall pay to Landlord (A) a late charge equal to five percent (5%) of the overdue
amount, or Five Hundred and No/100 Dollars ($500.00), whichever is greater, to cover additional
administrative costs; and (B) interest on the delinquent amounts at a default rate of interest
equal to the lesser of the maximum rate permitted by law, if any, or the Prime Rate, plus four
percent (4%) per annum, from the date such payment is due to the date paid. For purposes hereof,
the “Prime Rate” shall mean the rate of interest per annum publicly

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announced by LaSalle Bank National Association, Chicago, Illinois, as its prime lending rate
or reference rate as in effect from time to time (the Prime Rate is not necessarily the best or
lowest rate of interest offered by said bank).

     4.05 Additional Rent. For purposes of this Lease, all amounts payable by Tenant to
Landlord pursuant to this Lease, whether denominated as such, shall constitute additional rental
hereunder. All additional rental, together with the Base Rent, shall sometimes be referred to in
this Lease as “Rent”. All Rent shall be paid to Landlord, without notice, demand, abatement,
deduction or offset for any reason, , except as specifically provided to the contrary in Article
XI, in lawful money of the United States at such place as Landlord may designate from time to time
by written notice given to Tenant.

ARTICLE V — RESERVED

ARTICLE VI — USE OF PREMISES

     6.01 Tenant’s Permitted Use. Tenant shall use the Premises only for Tenant’s
Permitted Use as set forth in Section 1.08 above and shall not use or permit the Premises to be
used for any other purpose. Tenant, at its sole cost, shall obtain all governmental licenses and
permits required to allow Tenant to conduct Tenant’s Permitted Use. Landlord disclaims any
warranty that the Premises are suitable for Tenant’s Permitted Use and Tenant acknowledges that it
has had a full opportunity to make its own determination in this regard.

     6.02 Compliance with Laws and Other Requirements.

          (A) Tenant shall cause, at its expense, the Premises to comply with all laws (including
Environmental Laws) ordinances, regulations and directives of any governmental authority applicable
to the Premises or Tenant’s use thereof, including, without limitation, the Americans With
Disabilities Act (collectively “Applicable Laws”). Operating Expenses shall include (without
limitation) the cost of any improvements, capital expenditures, repairs or replacements to the
Premises, or any equipment or machinery used in connection with the Premises, if any such item is
required under any Applicable Law. Notwithstanding the foregoing, Tenant shall have the right to
challenge any governmental directive regarding any Applicable Law, so long as the same does not
result in (i) a Lien against or on the Premises, subject Tenant’s right to contest the same in
accordance with the terms and conditions of Section 9.02, or (ii) a default by Tenant under this
Lease, including, without limitation, a default by Tenant as to its obligation to (a) use, occupy
and maintain the Premises in accordance with Applicable Law and the other terms and conditions of
Section 6.02, (b) use and occupy the Premises in accordance with the terms and conditions of
Section 6.03, including, without limitation, the maintenance of the ACMs under a Qualified Asbestos
Maintenance Program, and/or (c) maintain the Utilities Infrastructure in accordance with the
applicable terms and conditions of this Lease, including, but not limited to, Sections 8.02 and
8.03.

          (B) Tenant shall not use the Premises, or permit the Premises to be used, in any manner which:
(i) violates any Applicable Law; (ii) causes or is reasonably likely to cause any damage or
liability to the Premises, Landlord and/or any of Landlord’s Parties; (iii) violates a requirement
or condition of any insurance policy covering all or any portion of the Premises and/or increases
the cost of any such policy; and/or (iv) constitutes or is reasonably likely to constitute a
nuisance, including, without limitation, any immoral or obscene act and/or any other act tending to
injure the reputation of the Premises; provided, however, that Landlord shall not allege that
Tenant is in default of any of its obligations under this Lease solely based on the fact that the
manner in which Tenant has used the Premises prior to the Commencement Date constitutes a
nuisance.

          (C) Tenant shall not commit or allow any waste or damage to be committed on any portion of the
Premises. Tenant shall not do, nor permit, anything which shall increase the costs of operating or
maintaining the Premises, including, but not limited to, insurance premiums, property taxes and
utility bills.

     6.03 Hazardous Materials.

          (A) Definitions: (i) “Environmental Laws” means all now and hereafter existing statutes, laws,
ordinances, codes, regulations, rules, rulings, orders, decrees, directives, policies and
requirements by any Regulatory Authority; (ii) “Hazardous Materials” means any material or
substance: (a) which is defined or becomes defined as a “hazardous substance,” “hazardous waste,”
“infectious waste,” “chemical mixture or substance,” “dangerous,” “toxic” or “air pollutant” under
Environmental Laws, or any like or similar term or terms; (b) contains petroleum, crude oil or any
fraction thereof; (c) containing polychlorinated biphenyls (PCB’s); (d) contains asbestos; (e)
which is radioactive; (f) which displays toxic, reactive, ignitable or corrosive characteristics,
as all such terms are used in their broadest sense, and are defined or become defined by
Environmental Laws; or (g) which cause a nuisance upon or waste to any portion of the Premises;
(iii) “Handle” (or variations of such term) means any installation, handling, generation, storage,
treatment, use, disposal, discharge, release, manufacture, refinement, emission, abatement,
removal, transportation, or any other activity of any type in connection with or involving
Hazardous Materials; and (iv) “Regulatory Authority” means any federal, state or local governmental
agency, commission, board or political subdivision, or any industry organization, including,
without limitation, the International Air Transport Association, which may impose liability or
standards of conduct concerning public health and safety, the environment, or the Handling of
Hazardous Materials.

          (B) No Hazardous Materials shall be Handled upon, about, above or beneath the Premises, by or
on behalf of Tenant and/or any of its partners, stockholders, members, directors, officers, agents,
employees, contractors, subcontractors, vendors, clients, customers and/or invitees (collectively,
with Tenant, “Tenant’s Parties”), unless the Hazardous Materials are: (i) listed in Exhibit B
attached hereto and then only in the quantities listed in said exhibit; (ii) normal quantities of
copier fluids and cleaning supplies containing Hazardous Materials which are customarily used in
the conduct of general administrative and executive office activities, so long as same are handled
strictly in accordance with applicable Environmental Laws; or (iii) Handled as specified in Section
6.03(F). Any such Hazardous Materials so Handled, the presence or migration of which is a result
of the act or omission of Tenant’s Parties, shall be known as Tenant’s Hazardous Materials. Tenant
shall cause Tenant’s Hazardous Materials to be Handled at all times in compliance with the
manufacturer’s instructions therefor and all applicable Environmental Laws. Tenant shall ensure
that all of Tenant’s employees who Handle Tenant’s Hazardous Materials are properly trained and
licensed in accordance with Environmental Laws. Tenant shall not cause or permit Tenant’s
Hazardous Materials to be disposed of, released, discharged or permitted to spill, leak or migrate
upon, about, above or beneath

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any portion of the Premises. In addition, throughout the initial Lease Term and the Renewal
Term, if applicable, Tenant shall maintain the ACMs in good condition under a Qualified Asbestos
Maintenance Program.

          (C) Tenant, at its sole cost, promptly shall take all actions required by any Regulatory
Authority, or necessary in Landlord’s reasonable estimation, which requirement or necessity arises
from the Handling, presence and/or migration of Tenant’s Hazardous Materials on or about any
portion of the Premises, (i) such that Landlord can make full economic use of all or any portion of
the Premises, and (ii) to restore any affected portions of the Premises to the condition existing
prior to the introduction of Tenant’s Hazardous Materials, irrespective of any less stringent
standards or remediation allowable under applicable Environmental Laws. Such actions shall
include, without limitation, the investigation of the environmental condition of any portion of the
Premises, the preparation of any feasibility studies or reports and the performance of any cleanup,
remedial, removal or restoration work. Tenant nevertheless shall obtain Landlord’s written
approval prior to undertaking any actions required by this Section 6.03(C).

          (D) Tenant immediately shall notify Landlord and Mortgagee, if any, of: (i) its knowledge of
any disposal, release, discharge, migration, spill, and/or leak of Tenant’s Hazardous Materials;
(ii) any inspection, enforcement, cleanup and/or other regulatory action taken or threatened by any
Regulatory Authority with respect to any Hazardous Materials on, about, above, beneath or from the
Premises or the migration thereof from or to other property; (iii) any demands or claims made or
threatened by any party relating to any loss or injury claimed to have resulted from any Hazardous
Materials on, about, above, beneath or from the Premises; and (iv) any matters with respect to
which Tenant is required by any Environmental Laws to give a notice to any Regulatory Authority
concerning Hazardous Materials on or from the Premises.

          (E) Tenant agrees that the damages to Landlord that are the result of the release, spill,
disposal, discharge, leakage or migration of Tenant’s Hazardous Materials at the Premises and are
recoverable by Landlord from Tenant due to Tenant’s failure to comply with the applicable terms and
conditions of this Lease that relate to Tenant’s Hazardous Materials, including, without
limitation, those contained in this Article VI, after the expiration of all applicable notice and
cure periods herein provided, include, but are not limited to, the following (collectively,
“Environmental Damages”): (i) costs incurred by Landlord (including, without limitation, attorney’s
and consultant’s fees and testing) for investigation and remediation; (ii) actual diminution in the
value of all or any portion of the Premises; (iii) actual damages for the loss or restriction on
the use of any portion of the Premises and/or any amenity thereof; and (iv) actual damages arising
from any adverse impact on the marketing of space in the Premises. Notwithstanding anything
contained herein to the contrary, any claim, demand and/or right in favor of Landlord with respect
to Environmental Damages, which shall arise out of this Lease, shall be barred, unless Landlord
shall have commenced an action thereon, within five (5) years after the date on which the initial
Lease Term or the Renewal Term, if applicable, shall have expired or been terminated; provided,
however, that, if such initial Lease Term or Renewal Term, if applicable, shall have been
terminated due to the occurrence of a default that shall not have been caused by Landlord, then
said 5-year period shall commence as of the date on which the initial Lease Term or the Renewal
Term, if applicable, would have expired, but for the occurrence of such termination.

          (F) Landlord acknowledges that, due to Tenant’s Permitted Use of the Premises, Tenant
occasionally will Handle Hazardous Materials on the Premises, which shall not be listed on Exhibit
B attached hereto; however, such presence and handling of Hazardous Materials shall be in
compliance with all applicable Environmental Laws and the following guidelines: (i) no nuclear or
explosive materials will be Handled by Tenant on the Premises; (ii) all Hazardous Materials will be
Handled in a well marked area, which is used exclusively for Hazardous Materials; and (iii) any
such Hazardous Materials which are incompatible or reactive to each other shall be kept separate at
all times.

ARTICLE VII — UTILITIES AND SERVICES

     7.01 Services. Tenant may use any existing utility service connection into the
Premises and Tenant, at its sole cost, shall continuously maintain throughout the Lease Term all
such utility service. Tenant shall pay to the appropriate utility company or other provider
directly, for all water, gas, heat, electricity, light, power sweeping and other janitorial
services, rubbish and trash disposal, pest and rodent control, sewer, fire protection, alarm and
other security services and any other utilities and services relating to the Premises, together
with any taxes thereon, connection charges and deposits, and also shall pay for all electrical
light bulbs, lamps and tubes in connection therewith. Landlord reserves the right during the Lease
Term to grant easements for public utility access on, over or below the Premises without any
abatement in Rent, so long as said easements and/or access do not unreasonably interfere with
Tenant’s Permitted Use of the Premises. Tenant shall arrange for and pay for all telephone and
other communication services and equipment, including any additions or alterations to the existing
telephone service boards and conduit, which shall be appropriately labeled.

     7.02 Installation, Connection and Use of Utility Equipment. Tenant, at its sole cost,
shall install and connect all equipment and lines required to supply such utilities to the extent
not already serving the Premises. Tenant shall maintain, repair and replace all such items, and
keep the same in good working order, condition and repair.

     7.03 Interruption of Services. Landlord shall not be liable for any failure to
furnish, or interruption in furnishing, any of the services or utilities described in Section 7.01,
and Tenant shall not be entitled to any damages, and no such failure or interruption shall abate or
suspend Tenant’s obligation to pay Rent under this Lease or constitute a constructive eviction of
Tenant or entitle Tenant to terminate this Lease as a result thereof. Further, if any governmental
authority or public utility promulgates or revises any Applicable Law, or issues mandatory or
voluntary controls relating to the use or conservation of energy, water, gas, light or electricity,
the reduction of emissions, or the provision of any other utility or service, Landlord may take any
reasonably appropriate action to comply with same and Tenant’s obligations hereunder shall not be
affected thereby. Tenant acknowledges that Landlord shall not provide any safety and/or security
devices, services and/or programs, but rather, Tenant expressly assumes the risk as to Tenant’s
property and the interest of Tenant’s Parties associated with deterring crime and ensuring safety
at the Premises. Tenant shall obtain insurance coverage to the extent Tenant desires protection
against criminal acts and other losses. Tenant shall cooperate in any reasonable safety or
security program required by Applicable Law.

ARTICLE VIII — MAINTENANCE AND REPAIRS

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     8.01 Landlord’s Obligations. Landlord shall have no duty and/or obligation to
maintain and/or repair all or any portion of the Premises at any time during the Lease Term.
Landlord shall not be liable to Tenant for any damage or inconvenience resulting therefrom and
Tenant shall not be entitled to any abatement or reduction of Rent by reason of repairs,
alterations or additions, if any, made by Landlord under this Lease and/or to constructive eviction
or termination.

     8.02 Tenant’s Obligations. During the Lease Term and the Renewal Term, if applicable,
Tenant, at its risk and at its own sole cost, shall in its sole discretion maintain the Premises in
good working order, repair and condition (including all necessary replacements), including, but not
limited to, the roof, foundation, exterior walls (including all windows, plate glass, doors and
pest control and extermination), downspouts, fire safety sprinkler systems of the Premises and
roads, parking areas, sidewalks, landscaping, drainage, common area lighting facilities, plumbing
systems, electrical systems, heating, ventilating and air-conditioning systems, storm sewers,
sanitary sewers, water mains, interior partitions, interior sides of exterior walls, floors, floor
coverings, windows, window coverings and electrical and plumbing fixtures, all glass elements,
doors (including dock, grade and man doors), dock bumpers, levelers, light bulbs, other
improvements and fixtures within the Premises and regular removal of debris, except for reasonable
wear and tear and damage due to casualty which shall be covered by Article XI. Notwithstanding
anything contained herein to the contrary, any of the foregoing costs that would have to be
incurred by Tenant to comply with the provisions of this Section 8.02 may be incurred by Tenant at
its sole direction and in its sole discretion; provided, however, that, regardless of whether or
not Tenant shall incur any or all of such costs, nothing contained in this Section 8.02 shall be
deemed or construed as a waiver or release of any of the remaining terms, provisions and/or
conditions of this Lease, but rather, throughout the initial Lease Term and the Renewal Term, if
applicable, Tenant shall be bound by all of such terms, provisions and conditions and shall be
required to satisfy all of Tenant’s other obligations under this Lease in accordance with the
express terms and conditions hereof, including, but not limited to, Tenant’s obligation to (A) use,
occupy and maintain the Premises in accordance with Applicable Law and the other terms and
conditions of Section 6.02, (B) use and occupy the Premises in accordance with the terms and
conditions of Section 6.03, including, without limitation, the maintenance of the ACMs under a
Qualified Asbestos Maintenance Program, (C) maintain the Utilities Infrastructure in accordance
with the applicable terms and conditions of this Section 8.02 and Section 8.03 and (D) surrender
the Premises to Landlord, upon the expiration or earlier termination of the initial Lease Term or
the Renewal Term, if applicable, in accordance with the applicable terms and conditions hereof,
including, without limitation, Sections 9.03 and 21.01.

     8.03 Repair Damage. Tenant shall be responsible for payment, within thirty (30) days
of demand from Landlord, of any and all costs incurred by Landlord and/or any of Landlord’s Parties
associated with the repair of any damage to any part of the Utilities Infrastructure caused by any
of Tenant’s Parties.

ARTICLE IX — ALTERATIONS, ADDITIONS AND IMPROVEMENTS

     9.01 Performance of Alterations Work. Landlord shall not be liable for any injury,
loss or damage to Tenant or Tenant’s property relating to the performance of any alterations,
additions, or improvements in or to the Premises (“Alterations”). For purposes of this Article IX,
the term “Alterations” shall be deemed to include, without limitation, the installation,
alteration, replacement or removal of any communications or computer wires, cables and related
devices (“Lines”). Landlord shall have no liability for damages arising from, and Landlord does
not warrant that the Tenant’s use of any Lines will be free from, any problems relating to Tenant’s
uninterrupted and unaffected use of any Lines per the Tenant’s requirements. All work relating to
the Alterations shall be performed in compliance with all Applicable Laws of all governmental
authorities having jurisdiction and the requirements of all carriers of insurance on the Premises,
the Board of Underwriters, Fire Rating Bureau, or similar organization. All work shall be
performed in a diligent, first class manner. No asbestos-containing materials or PCB’s shall be
used or incorporated in the Alterations. No lead-containing surfacing material, solder or other
construction materials or fixtures, where the presence of lead might create a condition or exposure
not in compliance with Environmental Laws, shall be incorporated in the Alterations.

     9.02 Liens. Tenant shall pay all costs for work performed and materials supplied to
the Premises. During the progress of any Alterations, Tenant, upon Landlord’s request, shall
furnish Landlord with sworn contractor’s statements and lien waivers covering all work theretofore
performed. Tenant shall keep Landlord, the Premises free from all liens, stop notices, violation
notices, claims and/or encumbrances (individually, a “Lien” and, collectively, “Liens”), and Tenant
shall protect, indemnify, hold harmless and defend Landlord, from and against any and all loss,
cost, damage, liability and expense, including, without limitation, reasonable attorneys’ fees,
related to any such Liens. If Tenant fails to pay and remove such Lien, or contest the same in
accordance with the express terms and conditions hereafter specified in this Section 9.02, within
thirty (30) business days after recordation, Landlord, at its election, may pay and satisfy the
same, and, in such event, the sums so paid by Landlord, together with interest thereon equal to the
lesser of the maximum rate permitted by law or twelve percent (12%) per annum, shall be due and
payable by Tenant upon demand. Notwithstanding anything contained herein to the contrary, Tenant
shall have the right to contest in good faith and with reasonable diligence the validity of any
such Lien, if Tenant shall (a) furnish to Chicago Title Insurance Company (“CTIC”) such security or
indemnity as CTIC shall require to induce CTIC to issue an endorsement to Landlord’s owner’s title
insurance policy for the Premises, as well as Mortgagee’s lender’s title insurance policy for the
Premises, insuring over the exception created by such Lien, or (b) provide Landlord with such other
security as shall be reasonably acceptable to Landlord and Mortgagee, which, in no event shall be
less than one hundred fifty percent (150%) of the amount of such Lien and all interest and other
costs necessary to discharge such Lien; provided, however, that, in any event, Tenant shall
discharge such Lien prior to the entry of a judgment to foreclose the same.

     9.03 Removal. Upon the expiration or earlier termination of this Lease, Tenant, at
its sole cost, shall remove all of Tenant’s machinery and equipment, and may remove some or all of
Tenant’s trade fixtures, furniture and other personal property. If Tenant shall fail to remove any
such items of machinery and/or equipment promptly after the expiration or earlier termination of
this Lease, Landlord may do so with no resulting liability to Tenant and Tenant shall pay Landlord
the cost thereof, upon demand. In addition, Tenant shall have the right, during the Initial Term
and/or the Option Term, if applicable, to remove any and all fixtures, systems and/or equipment
from the Premises at Tenant’s sole cost.

ARTICLE X — INDEMNIFICATION AND INSURANCE

     10.01 Indemnification.

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          (A) Tenant agrees to protect, indemnify, hold harmless and defend Landlord and Mortgagee, and
their respective partners, shareholders, members, managers, directors, officers, agents, employees,
contractors, clients and invitees (collectively “Landlord’s Parties”), from and against any and all
claims, actions, causes of action, judgments, fines, penalties, losses, damages, including, without
limitation, Environmental Damages, liabilities and actual attorney’s and consultant’s fees and
legal and other costs and expenses, including, but not limited to, damages for bodily injury, death
and property damage (collectively, “Losses”), which are caused by, arise out of, occasioned by or
in any way attributable to any of the following, except to the extent caused by the negligence
and/or willful misconduct of Landlord and/or Landlord’s Parties: (i) the use or occupancy of the
Premises by Tenant and/or any of Tenant’s Parties, (ii) the acts and/or omissions of Tenant and/or
any of Tenant’s Parties, and/or (iii) the Handling, presence, release, spill, leakage or migration
of any Tenant’s Hazardous Materials, including, without limitation, Tenant’s failure to maintain,
throughout the initial Lease Term and the Renewal Term, if applicable, the ACMs under a Qualified
Asbestos Maintenance Program. Nothing herein shall be interpreted or used to in any way affect,
limit, reduce or abrogate any insurance coverage provided by any insurers to either Tenant or
Landlord, except for any Losses that shall be caused by any third party. Notwithstanding anything
to the contrary contained in this Lease, nothing herein shall be construed to infer or imply that
Tenant is a partner, joint venturer, agent, employee, or otherwise acting by or at the direction of
Landlord.

          (B) Subject to the terms of Sections 10.07, 10.08 and Article XX hereof, Landlord agrees to
protect, indemnify, hold harmless and defend Tenant and Tenant’s Parties, from and against any and
all Losses, which are caused by, arise out of, occasioned by, or in any way attributable to any of
the following, except to the extent caused by the negligence and/or willful misconduct of Tenant
and/or any of Tenant’s Parties: (i) the use or occupancy of the Premises by Landlord and/or any of
Landlord’s Parties, and/or (ii) the acts or omissions of Landlord and/or any of Landlord’s Parties,
except for any Losses that shall be caused by (a) any third party and/or (b) the presence, prior to
the commencement of the initial Lease Term, of any Hazardous Materials at, on, under, about or
around the Premises in violation of applicable Environmental Laws.

     10.02 Property Insurance.

          (A) At all times during the Lease Term, Tenant shall procure and maintain, at its sole cost,
“all-risk” or causes of loss-special form property insurance for damage or other loss caused by
fire or other casualty or cause, including, but not limited to, vandalism and malicious mischief,
theft, water damage of any type, including sprinkler leakage, bursting of pipes or explosion,
earthquake, in an amount not less than one hundred percent (100%) of the replacement cost covering
the Building. The proceeds of such insurance shall be used for the repair or replacement of the
property so insured, except that, if not so applied, or, if this Lease shall be terminated
following a casualty, the proceeds thereof shall be paid to Tenant.

          (B) At all times during the Lease Term, Tenant shall procure and maintain, at its sole cost,
“all-risk” or causes of loss-special form property insurance, for damage or other loss caused by
fire or other casualty or cause, including, but not limited to, vandalism and malicious mischief,
theft, water damage of any type, including sprinkler leakage, bursting of pipes or explosion,
earthquake, in an amount not less than one hundred percent (100%) of the replacement cost covering
(i) leasehold improvements made at the expense of Tenant and (ii) Tenant’s trade fixtures,
equipment, contents, bailed property, inventory, business records and other personal property, from
time to time situated in the Premises, including, without limitation, all floor and wall coverings
(collectively, “Tenant’s Personal Property”). The proceeds of such insurance shall be used for the
repair or replacement of the property so insured, except that, if not so applied, or, if this Lease
shall be terminated following a casualty, the proceeds applicable to the leasehold improvements and
Tenant’s Personal Property shall be paid to Tenant.

     10.03 Liability Insurance.

          (A) At all times during the Lease Term, Tenant shall procure and maintain, at its sole cost,
commercial general liability insurance with a Broad Form endorsement written on a per occurrence
basis applying to the use and occupancy of the Premises and the business operated by Tenant. Such
insurance shall have a minimum combined single limit of liability of at least One Million Dollars
($1,000,000) per occurrence and a general aggregate limit of at least Three Million Dollars
($3,000,000). All such policies shall be written to apply to all bodily injury, property damage,
personal injury losses and shall be endorsed to include as additional insureds the following
parties: IAC Chicago L.L.C., a Delaware limited liability company; International Airport Centers
L.L.C., a Delaware limited liability company; Mortgagee; and their respective members, managers,
agents and employees, and/or such other parties as Landlord may reasonably designate from time to
time. Such liability insurance shall be written as primary coverage, not excess or contributing
with or secondary to any other insurance as may be available to the Landlord or additional
insureds.

          (B) From time to time during the Lease Term, Landlord may, but shall not be obligated to,
procure and maintain at its expense commercial general liability insurance with a Broad Form
endorsement written on a per occurrence basis applying to the use and occupancy of the Premises,
and such other insurance as may be required by Mortgagee or otherwise reasonably desired by
Landlord.

     10.04 Workers’ Compensation Insurance. At all times during the Lease Term, Tenant
shall procure and maintain Workers’ Compensation Insurance in accordance with the laws of the State
of Illinois, and Employers’ Liability insurance with a limit not less than One Million Dollars
($1,000,000) Bodily Injury Each Accident; One Million Dollars ($1,000,000) Bodily Injury By Disease
- Each Person; and One Million Dollars ($1,000,000) Bodily Injury by Disease — Policy Limit.

     10.05 Automobile Liability Insurance. At all times during the Lease Term, Tenant
shall procure and maintain, at its sole cost, commercial automobile liability insurance, including
owned, non-owned and hired vehicles, applying to the use of any vehicles arising out of the
operations of Tenant. Such insurance shall apply to bodily injury and property damage in a
combined single limit of not less than One Million Dollars ($1,000,000) per accident.

     10.06 Policy Requirements. All insurance required to be maintained by Tenant shall be
issued by insurance companies authorized to do insurance business in the state in which the
Premises is located and rated not less than A-VIII in Best’s Insurance Guide or a Standard and
Poor’s claims paying ability rating of not less than AA and Landlord shall approve the policy form
and deductible. A certificate of insurance (or, at Landlord’s option, copies of the applicable
policies) evidencing the insurance required under this Lease shall be delivered to Landlord not
less than thirty (30) days prior to the Commencement

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Date. No such policy shall be subject to cancellation or modification without thirty (30)
days prior written notice to Landlord and to any other party designated by Landlord to Tenant.
Tenant shall furnish Landlord with a replacement certificate with respect to any insurance not less
than thirty (30) days prior to the expiration of the current policy. Tenant shall have the right
to provide the insurance required by this Lease pursuant to blanket policies, but only if such
blanket policies expressly provide coverage to the Premises, Landlord and any other party, as
required by this Lease. Tenant may not self-insure, without the prior written consent of Landlord,
which may be withheld in Landlord’s sole discretion. For purposes of this Lease, self-insurance
shall not include any self-insured retention or deductible programs. Tenant shall be responsible
to Landlord for any costs incurred by Landlord that arise out of Tenant’s failure to maintain any
of the insurance required to be maintained hereunder.

     10.07 Waiver of Claims. Tenant waives all claims against Landlord for injury or death
to persons, damage to property, loss of income and additional expenses or to any other interest of
Tenant sustained by Tenant or any party claiming through Tenant resulting from: (A) any occurrence
in or upon the Premises; (B) leaking of roofs, bursting, stoppage or leaking of water, gas, sewer
or steam pipes or equipment, including sprinklers; (C) wind, rain, snow, ice, flooding, freezing,
fire, explosion, earthquake, excessive heat or cold, fire or other casualty; (D) any system or
equipment serving the Building being defective, out of repair or failing; and (E) vandalism,
malicious mischief, theft or other acts or omissions of any other parties including, without
limitation, other tenants, contractors and invitees. Tenant waives any right it might otherwise
have to terminate this Lease for any reason pursuant to this Section 10.07.

     10.08 Waiver of Subrogation. Each party hereby waives any right of recovery against
the other for injury or loss covered by insurance described in Section 10.02 to the extent of the
injury or loss covered thereby. Such waiver shall apply to any deductibles or self-insured
reserves. Any policy of insurance procured and maintained by either Landlord or Tenant, pursuant
to this Lease, shall contain a clause denying the insurer any right of subrogation against the
other party, if applicable.

ARTICLE XI — DAMAGE OR DESTRUCTION

     11.01 Total Destruction. Tenant shall give immediate written notice to Landlord of
any damage or destruction caused to the Premises by fire or other casualty (“Tenant’s Casualty
Notice”). If the Building shall be totally destroyed, this Lease automatically shall terminate as
of the date of such destruction, subject to the terms and conditions of Section 11.02(A) as to
Tenant’s obligation to repair the damage to or destruction of, as the case may be, the Utilities
Infrastructure, if any.

     11.02 Partial Destruction.

          (A) If the Premises shall be partially damaged by any casualty, promptly upon delivery of
Tenant’s Casualty Notice to Landlord, Tenant shall proceed with reasonable diligence and in good
faith to repair any damage or destruction to the portion of the Premises that consists of the
Utilities Infrastructure, if any, and prosecute the same to completion as soon as reasonably
practicable. The foregoing obligation of Tenant to repair such damage or destruction as to the
portion of the Premises that consists of the Utilities Infrastructure, if any, shall consist of
restoring such Utilities Infrastructure to the condition in which the same existed prior to such
damage or destruction. If Tenant shall have failed to complete the required repairs to the
Utilities Infrastructure on or prior to the date that shall be one hundred twenty (120) days after
the date of the damage or destruction (the “Restoration Date”), Landlord may elect to terminate
this Lease by delivering written notice to Tenant of its intention to do so no later than fifteen
(15) days after the Restoration Date; provided, however, that, if Tenant shall have failed to
complete the required repairs to the Utilities Infrastructure as of the date on which the initial
Lease Term or the Renewal Term, if applicable, shall have expired or otherwise been terminated,
pursuant to the remaining provisions of this Lease, including, without limitation, the applicable
provisions of this Article XI, then Tenant’s obligation to so repair the Utilities Infrastructure
shall survive the expiration or earlier termination of the initial Lease Term or the Renewal Term,
if applicable, and Landlord shall be entitled to the portion of the casualty insurance proceeds to
which Tenant otherwise would have been entitled as shall be necessary, in the opinion of Landlord,
to complete such repairs, which proceeds Tenant shall assign to Landlord on or prior to the
expiration or earlier termination of the initial Lease Term or the Renewal Term, if applicable.

          (B) In addition, within thirty (30) days after delivery of Tenant’s Casualty Notice, Tenant
shall give written notice to Landlord (“Tenant’s Repair Notice”) as to whether or not Tenant, in
its sole discretion, intends to repair all or any portion of the damage or destruction to the
Building, if any, and, if so, whether or not, in the opinion of Tenant, such repairs can be made on
or prior to the Restoration Date.

          (C) If Tenant’s Repair Notice shall (i) not have been delivered to Landlord within said 30-day
period, or (ii) state that (a) Tenant does not intend to repair all or any portion of such damage
or destruction to the Building, or (b) such repairs to the Building cannot, in the opinion of
Tenant, be made on or prior to the Restoration Date, then either Landlord or Tenant may elect to
terminate this Lease by delivering written notice of such party’s intention to so terminate this
Lease to the other party, within fifteen (15) days after the date of Tenant’s Repair Notice or the
date on which Tenant’s Repair Notice was due, if no such notice shall have been delivered.

          (D) If neither Landlord not Tenant shall have exercised its right to terminate this Lease in
accordance with the terms and conditions of the immediately preceding subsection, Tenant shall (i)
proceed with reasonable diligence and in good faith to repair the damage or destruction to the
Building to the extent and in the manner as shall be determined by Tenant in its sole discretion,
and (ii) prosecute the same to completion as soon as reasonably practicable, whereupon this Lease
shall continue in full force and effect, without abatement of any Base Rent or other Rent otherwise
due and payable hereunder with respect to the entire Premises throughout the balance of the initial
Lease Term and the Renewal Term, if applicable; provided, however, that, notwithstanding anything
contained herein to the contrary, (a) the foregoing obligation of Tenant to repair such damage or
destruction to the Building, at a minimum, shall consist of making such repairs as shall be
necessary to enable Tenant to satisfy all of Tenant’s other obligations under this Lease in
accordance with the express terms and conditions hereof, including, but not limited to, Tenant’s
obligation to (1) use, occupy and maintain the Premises in accordance with Applicable Law and the
other terms and conditions of Section 6.02, and (2) use and occupy the Premises in accordance with
the terms and conditions of Section 6.03, including, without limitation, the maintenance of the
ACMs in good condition under a Qualified Asbestos Maintenance Program, and (b) if Tenant shall have
failed to complete the required repairs to the Building on

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or prior to date that shall be one hundred twenty (120) days after the Restoration Date,
Landlord may elect to terminate this Lease by delivering written notice to Tenant of its intention
to do so no later than seventy-five (75) days after the Restoration Date.

     11.03 Waiver. The provisions contained in this Lease shall supersede any contrary
laws (whether statutory, common law or otherwise) now or hereafter in effect relating to damage,
destruction, self-help and/or termination.

ARTICLE XII — CONDEMNATION

     12.01 Taking. If the entire Premises, or so much of the Premises as shall render the
balance unusable by Tenant, shall be taken by condemnation or in any other manner for any public or
quasi-public purpose (collectively “Condemnation”), then this Lease shall terminate on the earlier
of the date that title or possession to the Premises shall have been taken by the condemning
authority.

     12.02 Award. In the event of any Condemnation, the entire award for such taking shall
belong to Landlord, free of any claim by Tenant; provided, however, that Landlord shall not
restrict Tenant or interfere with Tenant in the filing of its own claim, so long as Tenant’s claim
shall not diminish the size of the Landlord’s award.

     12.03 Temporary Taking. No temporary taking of the Premises shall entitle Tenant to
any abatement of the Rent payable to Landlord under this Lease, unless (A) Tenant shall have
elected, by written notice to Landlord, to terminate this Lease, upon the occurrence of any such
temporary taking, or (B) solely as a result of such temporary taking, (i) the entire Premises shall
be unusable by Tenant for Tenant’s Permitted Use and (ii) Tenant shall not use any portion of the
Premises for Tenant’s Permitted Use, or otherwise, whereupon Tenant shall be entitled to an
abatement of the Base Rent that otherwise would have been payable hereunder, until Tenant no longer
would be prevented, solely as a result of such temporary taking, from being able to use any portion
of the Premises for Tenant’s Permitted Use; provided, however, that, if, as a result of such
temporary taking, the entire Premises shall be unusable by Tenant for Tenants’ Permitted Use and
Tenant shall not use any portion of the Premises for a period of one hundred eighty (180)
consecutive days, then Landlord may elect to terminate this Lease by delivering written notice to
Tenant of its intention to do so.

ARTICLE XIII — RESERVED

ARTICLE XIV — ASSIGNMENT AND SUBLETTING

     14.01 Restriction.

          (A) Tenant shall not, either voluntarily or by operation of law, assign, encumber, or
otherwise transfer this Lease or any interest herein, or sublet the Premises or any part thereof,
or permit the Premises to be occupied by anyone other than Tenant or Tenant’s employees (any such
assignment, encumbrance, subletting, occupation or transfer hereinafter shall be referred to as a
“Transfer”). For purposes of this Lease, the term “Transfer” shall also include, if Tenant is a
closely held corporation (i.e. whose stock is not publicly held and not traded through an exchange
or over the counter), or a limited liability company, the dissolution, merger, consolidation,
division, liquidation or other reorganization of Tenant, or within a twelve month period: (i) the
sale or other transfer of more than an aggregate of 50% of the voting securities of Tenant (other
than to immediate family members by reason of gift or death) or (ii) the sale, mortgage,
hypothecation or pledge of more than an aggregate of 50% of Tenant’s net worth. A Transfer or
other action in violation of the foregoing, at Landlord’s option, shall be void and/or shall
constitute a material breach of this Lease, which, without any notice and/or opportunity to cure
the same, shall entitle Landlord to exercise any and all rights and/or remedies available to
Landlord, upon the occurrence of an Event of Default (as hereinafter defined), pursuant to this
Lease, at law and/or in equity, including, without limitation, the right to terminate this Lease,
effective as of the date of any such Transfer. A Transfer or other action in violation of the
foregoing, at Landlord’s option, shall be void and/or shall constitute a material breach of this
Lease. Notwithstanding anything contained herein to the contrary, Tenant shall have the right to
assign this Lease to an Affiliate of Tenant or a Permitted Transferee, upon at least twenty (20)
days’ prior written notice to Landlord, whereupon, if such assignment shall be to a Permitted
Transferee, Tenant, and its officers, employees and shareholders, shall be relieved of any further
liabilities or obligations whatsoever under this Lease, with respect to the period from and after
the date of such assignment, and Landlord agrees to hold such Permitted Transferee solely
responsible for any and all liabilities and obligations under this Lease with respect to the period
from and after the date of such assignment, so long as Landlord first shall have received a written
assumption of such obligations from such Permitted Transferee, as the case may be; provided,
however, that, all sums or other economic consideration, if any, received by Tenant in connection
with any such assignment, whether denominated as rental or otherwise, which exceed in the
aggregate, the total sum that Tenant is obligated to pay Landlord under this Lease shall be paid to
Landlord promptly after receipt, without affecting or reducing any other obligation of Tenant
hereunder.

          (B) For all purposes of this Lease, the term “Affiliate” shall mean any corporation or other
entity controlling, controlled by, or under common control with (directly or indirectly) Tenant or
Landlord, as the case may be. The term “control”, as used herein, shall mean the power to direct
or cause the direction of the management and policies of the controlled entity through the
ownership of more than fifty percent (50%) of the voting securities in such controlled entity. The
term “Permitted Transferee” shall mean any entity that shall acquire, (i) Tenant, by merger,
consolidation or other corporate action, or (ii) all or substantially all of Tenant’s assets, so
long as the surviving entity or purchaser of such assets, as the case may be, shall have a “net
worth” equal to or greater than the net worth of Tenant as of the proposed date of such corporate
action or sale, as the case may be. Notwithstanding anything contained in this Article XIV to the
contrary, Tenant agrees not to enter into any agreement for use, occupancy or utilization of the
Premises, which provides for rental or other payment based in whole or in part on the net income or
profits derived by any person from the Premises (other than an amount based on a fixed
percentage(s) of receipts or sales), and that any such purported agreement shall be absolutely void
and ineffective.

ARTICLE XV — EVENTS OF DEFAULT AND REMEDIES

     15.01 Events of Default by Tenant. Upon the occurrence of any one or more of the
following events (the “Events of Default,” any one an “Event of Default”), the party not in default
shall have the right to exercise any rights or remedies

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available in this Lease, at law and/or in equity. Any notice and cure period provided for herein
shall be in lieu of, and not in addition to, any notice required under any Applicable Law now or
hereafter in effect requiring that notice of default be given prior to the commencement of an
unlawful detainer or other legal proceeding. Events of Default shall be, as follows:

          (A) Tenant’s failure to pay within five (5) days of the date due any Rent
payable hereunder.

          (B) Failure by Tenant to perform any other of the terms, covenants or
conditions contained in this Lease, if not remedied within thirty (30) days after
receipt of written notice thereof; provided, however, that, if the nature of
Tenant’s obligation is such that more than thirty (30) days would be required for
performance, Tenant shall not be in default, if Tenant commences performance within
such thirty (30) day period and thereafter diligently pursues same to completion;
provided, however, in any event, such performance must be completed within one
hundred eighty (180) days after receipt of the original written notice of such
failure to perform.

          (C) Tenant shall become bankrupt or insolvent, or file any debtor proceedings,
or files, pursuant to any statute a petition in bankruptcy or insolvency or for
reorganization, or files a petition for the appointment of a receiver or trustee for
all or substantially all of Tenant’s assets, and such petition or appointment shall
not have been set aside within sixty (60) days from the date of such petition or
appointment, or, if Tenant shall make an assignment for the benefit of creditors, or
petition for or enter into an arrangement for any of the foregoing.

          (D) Tenant vacates, abandons or fails to operate in the Premises for a period
of thirty (30) days or allows its leasehold estate to be taken under any writ of
execution; provided, however, that Tenant shall be entitled to challenge any such
writ, so long as the same does not result in a Lien against or on the Premises,
subject Tenant’s right to contest the same in accordance with the terms and
conditions of Section 9.02.

     15.02 Landlord’s Option to Terminate upon Tenant Default. In addition to its other
remedies, Landlord, upon an Event of Default by Tenant, shall have the immediate right, to
terminate and cancel this Lease and/or reenter and remove all persons and properties from the
Premises and dispose of such property as it deems fit, all without being guilty of trespass or
being liable for any damages caused thereby. In the event of an elected termination by Landlord,
whether before or after reentry, Landlord may recover from Tenant damages, including, without
limitation, the costs of recovering the Premises, and Tenant shall remain liable to Landlord for
the total Rent as would have been payable by Tenant hereunder for the remainder of the Lease Term,
less the reasonable rental value of the Premises for the remainder of the Lease Term. In
determining the Rent that would be payable by Tenant after a default, the Rent for each year of the
un-expired Lease Term shall be equal to the Rent payable by Tenant for the last year of the Lease
Term prior to the applicable default. If any rent owing hereunder shall be collected by or through
an attorney, Tenant agrees to pay Landlord’s reasonable attorneys’ fees to the extent allowed by
Applicable Law.

     15.03 Mitigation of Damages. Whether Landlord shall terminate this Lease and/or
Tenant’s right to possession of the Premises, Landlord shall have no obligation to mitigate
Landlord’s damages, except as required by Applicable Law.

     15.04 Right of Landlord to Perform. If Tenant shall fail to perform any required act
under this Lease, Landlord, without obligation, may do so without waiving Tenant’s obligations
under this Lease. In such event, Tenant shall pay to Landlord, as Rent, any sums incurred by
Landlord, together with an administrative charge equal to five percent (5%) thereof.

     15.05 Non-Waiver. No acceptance by Landlord of a lesser sum than the Rent then due
shall be deemed to be other than on account of the earliest installment of such Rent due, and no
endorsement or statement on any check or any letter accompanying any check or payment shall be
deemed an accord and satisfaction, and Landlord may accept such check or payment, without prejudice
to Landlord’s right to recover the balance of such installment and/or pursue any other remedy in
this Lease, at law and/or in equity provided. Moreover, the acceptance by Landlord of any Rent,
while Tenant shall be in default hereunder, shall not serve or operate as a waiver of any rights
and/or remedies to which Landlord otherwise would be entitled hereunder, at law and/or in equity,
as a result of such default. The delivery of keys to Landlord or its agent or employee shall not
operate as a termination of this Lease or as a surrender of the Premises, unless so acknowledged in
writing by Landlord.

     15.06 Cumulative Remedies. The specific remedies to which Landlord may resort under
the terms hereof are cumulative and are not intended to be exclusive of any other remedies or means
of redress to which it may be lawfully entitled in case of any breach or threatened breach by
Tenant of any provisions hereof. In addition to the other remedies provided herein, Landlord shall
be entitled to a restraint by injunction of the violation or attempted or threatened violation of
any of the covenants, conditions or provisions hereof and/or to a decree compelling specific
performance of any such covenants, conditions or provisions.

     15.07 Landlord’s Default. Landlord shall not be in default under this Lease, unless
Landlord fails to perform its obligations hereunder within a reasonable time, but in no event later
than thirty (30) days after written notice by Tenant to Landlord and to Mortgagee whose name and
address shall have been furnished to Tenant in writing and specifying how Landlord has failed to
perform such obligations and the act required to cure the same; provided, however, that if the
nature of Landlord’s obligation is such that more than thirty (30) days would be required for
performance, Landlord shall not be in default if Landlord commences performance within such thirty
(30) day period and thereafter diligently prosecutes the same to completion; provided, however, in
any event, such performance must be completed within one hundred eighty (180) days after receipt of
the original written notice of such failure to perform. In no event shall Tenant have the right to
seek damages as a result of Landlord’s default and Tenant’s remedies shall be limited to the
termination of this Lease and/or an injunction.

ARTICLE XVI — SUBORDINATION AND ATTORNMENT

     16.01 Subordination. This Lease, and the rights of Tenant hereunder, shall be subject
and subordinate to the interests of (A) all present and future ground leases and master leases of
all or any part of the Premises; (B) present and future mortgages and deeds of trust encumbering
all or any part of the Premises; (C) all past and future advances made under any such mortgages or
deeds of trust; and (D) all renewals, modifications, replacements and extensions of any such ground
leases, master

10

 

leases, mortgages and deeds of trust; provided, however, that any lessor under any such ground
lease or master lease or any mortgagee or beneficiary under any such mortgage or deed of trust (any
such lessor, mortgagee or beneficiary is herein referred to as a “Mortgagee”) may elect, by written
notice given to Tenant, to have this Lease made superior in whole or in part to any such ground
lease, master lease, mortgage or deed of trust. Within ten (10) days of written request from
Landlord, Tenant shall execute, acknowledge and deliver any instruments reasonably requested by
Landlord or any such Mortgagee to affect the purposes of this Section 16.01, including, without
limitation, a Subordination, Attornment and Non-disturbance Agreement/Estoppel Agreement
substantially similar to the form attached hereto as Exhibit C. Any obligations of Mortgagee shall
be non-recourse as to any assets of such Mortgagee other than its interest in the Premises.

     16.02 Attornment. If requested to do so, Tenant shall attorn to, and recognize as
Tenant’s landlord hereunder, any Mortgagee or other purchaser or person taking title to the
Premises by reason of the termination of any superior lease or the foreclosure of any superior
mortgage or deed of trust or sale of property or any other reason, and Tenant, within ten (10) days
after demand, shall execute and deliver any documents reasonably requested by any such person to
evidence the foregoing.

     16.03 Mortgage and Ground Lessor Notice. Tenant shall give any Mortgagee or ground
lessor, by certified mail, a copy of any notice of default served upon Landlord by Tenant, provided
that prior to such notice Tenant has been notified in writing of the address of such Mortgagee. If
Landlord shall fail to cure such default within thirty (30) days after such notice to Landlord (or
if such default cannot be cured within that time, then such additional time as may be reasonably
necessary), then the Mortgagee shall have an additional thirty (30) days within which to cure such
default (or, if such default cannot be cured within that time, then such additional time as may be
reasonably necessary).

ARTICLE XVII — RESERVED

ARTICLE XVIII — ESTOPPEL CERTIFICATES

     18.01 Estoppel Certificates. Tenant shall, from time to time, within five (5) days of
written request from Landlord deliver to Landlord and any other party designated by Landlord, an
estoppel certificate substantially similar to the form attached hereto as Exhibit C, acknowledged
and executed by Tenant and any Guarantor of this Lease. Any such certificate given to any
Mortgagee or prospective Mortgagee may contain certifications of such other matters, customarily
required by such Mortgagee. If Tenant does not deliver to Landlord the certificate as required
herein, then Landlord is granted an irrevocable power-of-attorney, coupled with an interest, to
execute such certificate on Tenant’s behalf, which statement shall be binding on Tenant (and such
grant shall not be in limitation of Landlord’s other remedies for such failure by Tenant).

ARTICLE XIX — ENTRY BY LANDLORD

     19.01 Entry by Landlord. Landlord, and Landlord’s contractors, agents and
consultants, may enter the Premises during normal business hours and upon not less than 48 hours
prior notice (which notice may be oral), other than in the case of any emergency in which case any
such party may enter the Premises at any time, to: inspect the same; exhibit the same to
prospective purchasers, prospective mortgagees or tenants; determine whether Tenant is complying
with all of its obligations under this Lease, including, without limitation, the Handling of
Hazardous Materials by Tenant; post notices of non-responsibility or to make repairs or
improvements in or to the Premises. Tenant hereby waives any claim for damages for any injury to,
or interference with, Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises,
or any other loss occasioned by such entry or repair or service work, which Landlord deems to be
reasonably necessary; provided, however, that Landlord shall use its reasonable efforts to prevent
any such entry from adversely interfering with Tenant’s use of the Premises in any material
respect, except in the event of an emergency. Landlord may require Tenant to provide a key with
which to unlock one or more doors that, collectively, would enable Landlord to access the entire
Premises (excluding Tenant’s safes and similar areas designated by Tenant in writing in advance),
and Landlord may obtain entry to the Premises, and any entry shall not under any circumstances be
deemed to be a forcible or unlawful entry into, or a detainer of, the Premises or an eviction,
actual or constructive, of Tenant from any part of the Premises. Such entry by Landlord shall not
act as a termination of this Lease.

ARTICLE XX — LANDLORD’S LEASE UNDERTAKINGS; TRANSFER OF LANDLORD’S INTEREST

     20.01 Landlord’s Lease Undertakings. Notwithstanding anything to the contrary
contained in this Lease or in any exhibits, riders or addenda hereto attached (collectively the
“Lease Documents”), it is expressly understood and agreed that: (A) the recourse of Tenant against
Landlord with respect to the alleged breach by Landlord of a representation, warranty, covenant,
undertaking or agreement, if any, contained in any of the Lease Documents, or otherwise, arising
out of this transaction and/or Tenant’s use of the Premises (collectively, “Landlord’s Lease
Undertakings”), shall extend only to Landlord’s interest in the real estate of which the Premises
demised under the Lease Documents are a part (“Landlord’s Real Estate”), and not to any other
assets of Landlord’s Parties; and (B) except to the extent of Landlord’s interest in Landlord’s
Real Estate, no personal liability or personal responsibility of any sort with respect to any of
Landlord’s Lease Undertakings, and/or any alleged breach thereof, is assumed by, or at any time
shall be asserted or enforceable against, Landlord’s Parties.

     20.02 Transfer of Landlord’s Interest. Landlord shall have the right to sell,
transfer or assign the Premises, or any part thereof, or Landlord’s interest in this Lease, in
which event Landlord shall be automatically freed and relieved from all applicable liability with
respect to performance of any covenant or obligation on the part of Landlord. Any Security
Deposits or advance rents held by Landlord shall be turned over to the successor, and said
successor shall expressly assume, subject to the limitations of this Article XX, all of the terms,
covenants and conditions of this Lease to be performed by Landlord arising from and after the date
of such sale, transfer or assignment, it being intended hereby that the covenants and obligations
contained in this Lease on the part of Landlord, subject to all the provisions of this Article XX,
shall be binding on Landlord, its successors and assigns, only during their respective periods of
ownership.

ARTICLE XXI — SURRENDER; HOLDOVER TENANCY

     21.01 Condition of Premises and Removal of Property. At the expiration or earlier
termination of this Lease or the termination of Tenant’s right to possession of the Premises,
Tenant shall surrender possession of the Premises (A) with the

11

 

Utilities Infrastructure in the condition required under Sections 8.02 and 8.03, and (B)
otherwise in the condition required under Section 9.03, none of which Tenant understands to mean
that Tenant shall be relieved of performing, in accordance with the applicable terms and conditions
of this Lease, any of its other obligations hereunder during the initial Lease Term and/or the
Renewal Term, if applicable, including, without limitation, those relating to the use, occupancy,
maintenance, repair and/or replacement of the Premises. The cost of any repair or restoration of
the Premises required to satisfy Tenant’s obligation to surrender of possession of the Premises in
the condition required by this Section 21.01 shall be borne by Tenant; provided, however, that, if
Tenant shall fail to promptly perform such repairs or restoration, Landlord, without obligation,
may perform the same and all costs thereof incurred by Landlord shall be reimbursed by Tenant
promptly upon demand.

     21.02 Abandoned Property. If Tenant shall fail to remove any items from the Premises,
as required under Sections 9.03 and 21.01, Landlord may do so at Tenant’s expense. All of such
property removed from the Premises by Landlord hereunder may be handled, discarded or stored by
Landlord at Tenant’s expense, and Landlord shall in no event be responsible for the value,
preservation and/or safekeeping thereof. All such property, at Landlord’s option, shall be
conclusively deemed to have been conveyed by Tenant to Landlord, as if by bill of sale, without
payment by Landlord.

     21.03 Holdover Tenancy. Regardless of whether or not (A) Tenant shall have delivered
to Landlord a Tenant’s Right of First Opportunity Notice, (B) Landlord shall have delivered to
Tenant a Landlord’s Right of First Opportunity Notice and/or (C) Landlord and Tenant shall have
entered into a Development Lease or a Development Agreement, Tenant shall have an express duty and
obligation to surrender the entire Premises to Landlord, upon the expiration or earlier termination
of the Lease Term or the Renewal Term, if applicable. If, however, Tenant shall hold possession of
the Premises after the expiration or termination of the Lease Term or the Renewal Term, if
applicable, in violation of the foregoing express duty and obligation of Tenant to so surrender the
Premises to Landlord, Tenant shall become a tenant at sufferance, upon all of the terms contained
herein, except as to the term of this Lease and Rent. During such holdover period, Tenant shall
pay to Landlord a monthly rental equivalent to twice the Rent payable during the last month of the
Lease Term. The monthly rent payable for such holdover period in no event shall be construed as a
penalty or as liquidated damages for such retention of possession. Without limiting the foregoing,
Tenant shall indemnify, protect, defend and hold harmless Landlord’s Parties, from and against any
and all claims, liabilities, actions, losses, damages (including, without limitation, direct,
indirect, incidental and consequential) and expenses (including, without limitation, court costs
and reasonable attorneys’ fees) asserted against or sustained by Landlord’s Parties and arising by
reason of such retention of possession, which obligations shall survive the expiration or
termination of the Lease Term.

ARTICLE XXII — MISCELLANEOUS

     22.01 Entire Agreement. This Lease contains all of the agreements relating to the
leasing of the Premises and the obligations of Landlord and Tenant in connection with such leasing.
Landlord has not made, and Tenant is not relying upon, any warranties, or representations,
promises or statements made by Landlord or any agent of Landlord, except as expressly set forth
herein. This Lease supersedes any and all prior agreements between Landlord and Tenant and alone
expresses the agreement of the parties.

     22.02 Amendments. This Lease shall not be amended, in any way, unless in writing
executed by Landlord and Tenant. Landlord shall not have waived or released any of its rights
hereunder, unless in writing and executed by the Landlord.

     22.03 Successors. Except as expressly provided herein, this Lease and the obligations
of Landlord and Tenant contained herein shall bind and benefit the successors and assigns of the
parties to this Lease.

     22.04 Force Majeure. Notwithstanding anything in this Lease to the contrary, Landlord
shall incur no liability to Tenant with respect to, and shall not be responsible for any failure to
perform, any of Landlord’s obligations hereunder, if such failure is caused by any reason beyond
the control of Landlord, including, but not limited to, governmental law, ordinances, rules or
regulations, strike, labor trouble, fire, flood, earthquake, civil commotion, act of war or
terrorism. The amount of time for Landlord to perform any of Landlord’s obligations shall be
extended by the amount of time Landlord is delayed in performing such obligation by reason of any
force majeure occurrence.

     22.05. Survival of Obligations. Any obligations of Tenant accruing prior to the
expiration of this Lease shall survive the expiration or earlier termination of this Lease, and
Tenant shall promptly perform all such obligations whether or not this Lease shall have expired or
been terminated.

     22.06 Governing Law. This Lease shall be governed by, and construed in accordance
with, the laws of the state in which the Premises is located, without respect to conflicts of law
principles. Any action regarding this Lease shall be brought in the state and county in which the
Premises is located and both parties covenant that jurisdiction and venue are proper in the state
and county in which the Premises is located.

     22.07 Severability. If any provision of this Lease shall be found unenforceable, the
remainder of this Lease shall not be affected, and any provision found to be invalid shall be
enforceable to the extent permitted by Applicable Law. If two different interpretations may be
given to any provision hereunder, one of which will render the provision unenforceable, then the
interpretation rendering the provision enforceable shall be adopted.

     22.08 Interpretation. Tenant acknowledges that it has read and reviewed this Lease
and that it has had the opportunity to confer with counsel in reviewing this Lease. Accordingly,
this Lease shall be construed neither for nor against Landlord or Tenant, but rather, shall be
given a fair and reasonable interpretation according to the meaning of its terms and the intent of
the parties. All captions, headings, titles, numerical references and computer highlighting are
for convenience only and shall have no effect on the interpretation of this Lease. All terms and
words used in this Lease, regardless of the number or gender in which they are used, shall be
deemed to include the appropriate number and gender, as the context may require.

     22.09 Independent Covenants. Each covenant, agreement, obligation and other provision
of this Lease to be performed by Tenant is separate and independent, and is not dependent on any
other provision of this Lease.

12

 

     22.10 Time is of the Essence. Time is of the essence hereof and the performance of
all obligations hereunder.

     22.11 Joint and Several Liability. If Tenant comprises more than one person or
entity, all such persons shall be jointly and severally liable for payment of Rent and the
performance of Tenant’s obligations hereunder.

     22.12 Exhibits and Schedules. Exhibits A (Outline of Premises), B (Tenant Operations
Inquiry and List of Permissible Hazardous Materials and Quantities), C (Subordination, Attornment
and Non-disturbance Agreement/Estoppel Agreement) and D (Suite Acceptance Letter) are incorporated
herein by this reference.

     22.13 Offer to Lease. The submission of this Lease to Tenant does not constitute an
offer to Tenant to lease the Premises. This Lease shall have no force and effect, until it shall
have been executed by Landlord and Tenant; provided, however, that, execution of this Lease by
Tenant and delivery to Landlord, in consideration of the time and expense incurred by Landlord in
reviewing the Lease, shall constitute an irrevocable offer by Tenant for ten (10) days following
such delivery date.

     22.14 Waiver; No Counterclaim. To the extent permitted by Applicable Law, Tenant
waives the right to a jury trial in any proceeding regarding this Lease and the tenancy created by
this Lease. If Landlord shall commence any summary proceeding for non-payment of Rent, Tenant will
not interpose any counterclaim of whatever nature in any such proceeding, other than compulsory
counterclaims. Any claim, demand, right or defense by Tenant that shall arise out of this Lease or
the negotiations that preceded this Lease shall be barred, unless Tenant commences an action
thereon, or interposes a defense by reason thereof, within six (6) months after the date of the
inaction, omission, event or action that gave rise to such claim, demand, right or defense.

     22.15 Reserved.

     22.16 Tenant Operations Inquiry. As a material inducement to Landlord to enter into
this Lease, Tenant has completed the attached Exhibit B. Tenant represents and warrants to
Landlord that the same is true and correct in all material respects and not misleading. Landlord
reserves the right to require Tenant to update and re-certify the same, from time to time.

     22.17 Quiet Enjoyment. Provided that Tenant performs all of its obligations
hereunder, Tenant peaceably shall enjoy the Premises during the Lease Term, free of claims by or
through Landlord, subject to all of the terms and conditions contained in this Lease.

     22.18 Attorney’s Fees; Costs of Suit. If either Landlord or Tenant shall commence any
action or proceeding against the other relating to this Lease and/or the Premises, the prevailing
party shall be entitled to recover from the losing party, in addition to any other relief, its
reasonable attorneys’ fees, irrespective of whether or not such action or proceeding shall have
prosecuted to judgment..

     22.19 Brokers. If Tenant has dealt with any person, firm or broker in respect to the
Premises, Tenant shall be solely responsible for the payment of any fee due said person, firm or
broker and Tenant shall protect, indemnify, hold harmless and defend Landlord from and against the
same.

     22.20 Notices. All notices from Landlord or Tenant to the other may be served, as an
alternative to personal service, by mailing the same by registered or certified mail, postage
prepaid, or by overnight courier, addressed to the Landlord at the address set forth in Section
1.09 and to Tenant at the address set forth in Section 1.10, or addressed to such other address or
addresses as either Landlord or Tenant, from time to time, may designate to the other in writing.
Any notice shall be deemed to have been given and served when delivered personally or, otherwise,
at the time the same shall have been posted.

     22.21 Right of First Opportunity for New Development.

          (A) If, upon the expiration or earlier termination of the Lease Term or the Renewal Term, if
applicable, Tenant shall desire not to relocate the existing operations of Tenant currently being
conducted at the Premises (collectively, “Tenant’s Operations”), from the Premises to an existing
building(s), but rather, shall desire to either enter into a Development Lease or a Development
Agreement, then Landlord shall have a right of first opportunity (the “Right of First
Opportunity”), throughout the Right of First Opportunity Period (as hereinafter defined), to be the
party with whom Tenant shall negotiate the terms and conditions of such Development Lease or
Development Agreement, as the case may be, subject to the remaining terms and conditions of this
section.

          (B) For purposes hereof, (i) the term “Development Lease” shall mean a lease, between Tenant,
or one of its subsidiaries or affiliates, and a third-party, for a “build-to-suit” development of a
site and a building(s) to be the location of at least some or all of Tenant’s Operations, and (ii)
the term “Development Agreement” shall mean an agreement, between Tenant, or one of its
subsidiaries or affiliates, and a third-party, pursuant to which such third-party would acquire and
develop a site, construct a building(s) thereon, and either sell or lease the same to Tenant upon
the completion thereof, to be the location of at least some or all of Tenant’s Operations.

          (C) If, during the Lease Term or the Renewal Term, if applicable, Tenant shall desire to
solicit a third-party to negotiate the terms and conditions of a Development Lease and/or a
Development Agreement, then Tenant shall deliver to Landlord written notice (“Tenant’s Right of
First Opportunity Notice”) thereof, which shall contain such information as would be reasonably
necessary for Landlord to determine whether or not Landlord would want to exercise the Right of
First Opportunity.

          (D) Within five (5) business days after receipt of Tenant’s Right of First Opportunity Notice,
if applicable, Landlord shall deliver to Tenant written notice (“Landlord’s Right of First
Opportunity Notice”) of Landlord’s election to exercise the Right of First Opportunity (if Landlord
shall not so deliver Landlord’s Right of First Opportunity Notice, Landlord will be deemed to have
waived the Right of First Opportunity).

          (E) If Landlord shall have so delivered Landlords’ Right of First Opportunity Notice, then
Tenant shall negotiate with Landlord, exclusively and in good faith, and for a reasonable period of
time, the terms and conditions of a

13

 

Development Lease and/or a Development Agreement, as the case may be, which shall be mutually
acceptable to Landlord and Tenant; provided, however that, in no event shall such reasonable period
of time extend beyond the period that shall commence on the date that Tenant shall have received
Landlord’s Right of First Opportunity Notice and end on the date that shall be sixty (60) days
thereafter (the “Right of First Opportunity Period”); and, further, provided, however, that Tenant
shall retain the right during the Right of First Opportunity Period to negotiate with other parties
regarding the terms and conditions of a Development Lease and/or a Development Agreement, as the
case may be, solely for the purpose of determining market valuations as to the terms and conditions
of the Development Lease and/or the Development Agreement, as the case may be.

          (F) If, prior to 5:00 p.m. (Chicago, Illinois time) on the last day of the Right of First
Opportunity Period, Landlord and Tenant shall have failed to agree in writing on the terms and
conditions of a Development Lease or a Development Agreement, as the case may be, then the Right of
First Opportunity no longer shall apply and Tenant shall have the right to negotiate the terms and
conditions of a Development Lease and/or a Development Agreement, as the case may be, with any
third-party.

          (G) The Right of First Opportunity, as well as any Landlord’s Right of First Opportunity
Notice that may have been delivered to Tenant, automatically shall terminate and become null and
void and of no further force or effect, upon the failure of Landlord to timely or properly exercise
the Right of First Opportunity, or otherwise perform any of its obligations under, and in
accordance with, the provisions of this section.

          (H) If Tenant shall default under this section, Landlord shall have the right to exercise any
and all remedies available to Landlord in equity, including, without limitation, specific
performance of Tenant’s obligations under this section or injunctive relief.

     22.22 Letter of Intent. Notwithstanding anything to the contrary contained herein or
in the Letter of Intent regarding (A) the sale of the Premises by Tenant to Landlord and (B) this
Lease, which was executed and delivered by Seller and Purchaser as of March 3, 2005 (the “LOI”),
except to the extent that, pursuant to the terms, provisions and/or conditions of the LOI, any of
such terms, provisions and/or conditions are expressly intended to survive the expiration or
earlier termination thereof, (i) this Lease shall supersede the LOI, (ii) from and after the
Effective Date, if not previously rendered null and void and of no further force or effect by the
provisions of the Agreement of Sale entered into by Tenant and Landlord with respect to the sale of
the Premises by Tenant to Landlord, the LOI shall be null and void and of no further force or
effect, and (iii) in the event of any conflict between any term, provision or condition contained
herein, and any term, provision or condition contained in the LOI, the terms, provisions and
conditions of this Lease shall govern and control.

     IN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this Lease as of the
Effective Date.

	 	 	 	 	 	 	 
	TENANT:	 	LANDLORD:
	 
	 	 	 	 	 	 
	Dayton Superior Corporation, an Ohio corporation	 	IAC Chicago L.L.C., a Delaware limited liability company
	 
	 	 	 	 	 	 
	By:

	 	/s/ Mark K. Kaler
	 	By:
	 	International Airport Centers L.L.C., a Delaware

limited liability company, its Manager
	Name:

	 	Mark K. Kaler
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	Vice President of Strategic Planning (Officer)
	 	By:
	 	/s/ Alex Kurrelmeier
	 
	 	 	 	 	 	 
	

	 	 	 	Name:
	 	Alex Kurrelmeier

	(Corporate Seal)
	 	 	 	 
	

	 	 	 	Title:
	 	Managing Director

14

 

EXHIBIT A

Outline of the Premises

 

 

EXHIBIT B

Tenant Operations Inquiry form

SEE ATTACHMENT.

List of Permissible

Hazardous Materials and Quantities

NONE

16

 

EXHIBIT C

Subordination, Attornment and Non-disturbance Agreement/Estoppel Agreement

THIS INSTRUMENT PREPARED BY AND

AFTER RECORDING RETURN TO:

                    , Esq.

Piper Marbury Rudnick & Wolfe

203 North LaSalle Street, Suite 1800

Chicago, Illinois 60601-1293

SUBORDINATION, ATTORNMENT AND

NON-DISTURBANCE/ESTOPPEL AGREEMENT

     THIS SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE/ESTOPPEL AGREEMENT (this “Agreement”) dated
this day of ___, 200_, between ___                    ___, a(n)
___                    ___(“Tenant”), and LaSalle Bank National Association, a national banking
association, its successors and assigns (“Mortgagee”), having its principal place of business at
135 South LaSalle, Chicago, IL 60603, Attention: Real Estate Capital Markets.

     R E C I T A L S:

     1. Tenant is the lessee under that certain lease executed between Tenant and IAC Chicago
L.L.C., a Delaware limited liability company (“Landlord”) dated ___, 200___(the lease and
all amendments thereto are hereinafter referred to as the “Lease”), covering all or a portion of
property legally described in Schedule I attached hereto and made a part hereof (the “Property”).

     2. Mortgagee is making a loan (the “Loan”) to Landlord which is secured, in part, by the lien
of a mortgage or deed of trust executed and delivered by Landlord to Mortgagee encumbering the
Property (the “Mortgage”) and an assignment of leases and rents from the Property.

     3. As a condition to making the Loan, Mortgagee requires that Tenant enter into this
Agreement.

     NOW, THEREFORE, in consideration of the covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:

     A. Tenant hereby represents, acknowledges and agrees as follows:

	 	1.  	The Lease has not been amended, modified or extended, except as
follows: ___                                        ___.
	 
	 	2.  	The Lease does not contain any options to purchase and/or lease
additional space, rights of set off, rights of first refusal to purchase and/or
lease additional space or any similar provisions regarding acquisition of
ownership interests or additional leased space in the building, except as
follows: ___.
	 
	 	3.  	The term of the Lease commenced on ___ and will terminate on ___.
	 
	 
	 	4.  	The current monthly rent payment under the Lease is $___.
Rent has been paid through ___, 200_. No advance rents have
been prepaid except for the current month.
	 
	 	5.  	In addition to monthly rent payments, the following amounts are
also payable on a basis for the following purposes:
______.
	 
	 	6.  	The improvements described in the Lease have been completed and
accepted by Tenant.
	 
	 	7.  	The security deposit under the Lease is currently $___.
	 
	 	8.  	Tenant has not sublet any portion of the leased premises or
assigned any of its rights under the Lease.
	 
	 	9.  	Tenant is in full and complete possession of the premises demised
under the Lease, such possession having been delivered by the Landlord pursuant
to the Lease and having been accepted by Tenant.
	 
	 	10.  	The Lease is in full force and effect, Tenant has no existing
claims, defenses or offsets under the Lease against Landlord, no uncured default
exists under the Lease, and no event has occurred that would, except for the
lapse of time, the giving of notice or both, constitute a default.
	 
	 	11.  	No cancellation, modification, amendment, extension, or
assignment of the Lease, and no subletting or prepayment of more than one
month’s rent, shall be made without Mortgagee’s prior written consent.
	 
	 	12.  	All rent payments shall be paid as provided under the Lease until
Tenant has been otherwise notified by Mortgagee or its successor or assign.
Tenant agrees that, upon receipt of a notice from Mortgagee or its successor or
assign that there has been a default by Landlord under the Mortgage,

17

 

	 	   	Tenant shall make all subsequent rent payments directly to Mortgagee (or its
successor or assign), or at the direction of Mortgagee (or its successor or
assign). All prepayments of more than one month’s rent and any and all
termination fees paid by Tenant, or at Tenant’s direction, shall be payable
jointly to Mortgagee and Landlord.
	 
	 	13.  	Tenant will not look to Mortgagee for the return of the security
deposit, if any, under the Lease, except to the extent such funds actually shall
have been delivered to Mortgagee.
	 
	 	14.  	The guaranty of the Lease, if any, is in full force and effect.
	 
	 	15.  	Tenant will deliver to Mortgagee a copy of all notices Tenant
shall deliver to or receive from Landlord in accordance with the notice
provisions set forth herein.

	 	B.  	The Lease and all terms thereof, including, without limitation, any options to
purchase, rights of first refusal, rights of set off, and any similar rights, are and
shall be subject and subordinate to the Mortgage, and to all amendments, modifications,
replacements and extensions thereof, to the full extent of the principal, interest,
fees, expenses and all other amounts secured thereby.
	 
	 	C.  	If Mortgagee shall elect to foreclose the Mortgage, Mortgagee will not join
Tenant in summary or foreclosure proceedings unless required by applicable law (and
then only to the extent so required), as long as Tenant has not amended the Lease
without Mortgagee’s prior written consent and is not in default under the Lease.
	 
	 	D.  	If Mortgagee shall succeed to the interest of Landlord under the Lease, and
there shall exist no default by Tenant under the Lease, and Tenant shall not have
amended the Lease without Mortgagee’s prior written consent, Mortgagee agrees not to
disturb or otherwise interfere with Tenant’s possession of the leased premises for the
un-expired term of the Lease, provided that Mortgagee shall not be:

	 	1.  	liable for any act or omission of Landlord or any prior landlord
under the Lease;
	 
	 	2.  	subject to any offsets or defenses which Tenant might have
against Landlord or any prior landlord;
	 
	 	3.  	bound by any rent or additional rent which Tenant might have paid
for more than the current month to Landlord or any prior landlord;
	 
	 	4.  	bound by any amendment or modification of the Lease made without
Mortgagee’s prior written consent; or
	 
	 	5.  	liable for any security deposit Tenant might have paid to
Landlord or any prior landlord, except to the extent Mortgagee actually shall
have received said security deposit.

	 	E.  	Upon Mortgagee’s succeeding to Landlord’s interest under the Lease, Tenant
covenants and agrees to attorn to Mortgagee or a purchaser at a foreclosure or
trustee’s sale, to recognize such successor landlord as Tenant’s landlord under the
Lease, and to be bound by and perform all of the obligations and conditions imposed
upon Tenant by the Lease. If requested by Mortgagee or any subsequent owner, Tenant
shall execute a new lease with Mortgagee, for a term equal to the remaining term of the
Lease, and otherwise containing the same provisions and covenants of the Lease.
	 
	 	F.  	Prior to terminating the Lease due to a default by Landlord thereunder, Tenant
agrees to notify Mortgagee of such default and give Mortgagee the opportunity to cure
such default within thirty (30) days of Mortgagee’s receipt of such notice (or, if such
default cannot reasonably be cured within such thirty (30) day period, Mortgagee shall
have such longer time as may be necessary to cure the default; provided that
Mortgagee commences the cure within such period and diligently pursues the cure
thereafter).
	 
	 	G.  	This Agreement shall be binding upon and inure to the benefit of the respective
heirs, personal representatives, successors and assigns of the parties hereto.
	 
	 	H.  	This Agreement can be modified only in writing duly executed by both parties.
	 
	 	I.  	Any notices, communications and waivers under this Agreement shall be in
writing and shall be (1) delivered in person, (2) mailed, postage prepaid, either by
registered or certified mail, return receipt requested, or (3) by overnight express
carrier, addressed in each case as follows:

	 	 	 	 	 	 	 
	

	 	To Mortgagee:
	 	LaSalle Bank National Association
	 	 
	

	 	 	 	135 South LaSalle Street, Suite                     	 	 
	

	 	 	 	Chicago, Illinois 60603	 	 
	

	 	 	 	Attn:                                         	 	 
	 
	 	 	 	 	 	 
	

	 	To Tenant:	 	 	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 

18

 

or to any other address as to any of the parties hereto, as such party shall have
designated in a written notice to the other party hereto. All notices sent pursuant
to the terms of this paragraph shall be deemed received (a) if personally delivered,
then on the date of delivery, (b) if sent by overnight, express carrier, then on the
next federal banking day immediately following the day sent, or (c) if sent by
registered or certified mail, then on the earlier of the third federal banking day
following the day sent or when actually received.

	 	J.  	If any action or proceeding is instituted to enforce the terms hereof, the
prevailing party in such action or proceeding shall be entitled to reasonable
attorneys’ fees, costs and expenses of the prevailing party.
	 
	 	K.  	This Agreement, and all obligations of Tenant hereunder, shall terminate upon
the release and satisfaction of the Mortgage.
	 
	 	L.  	The undersigned representative of Tenant certifies that he/she has full power,
authority and right to execute and deliver this Agreement on behalf of Tenant and to
bind Tenant to the provisions hereof.
	 
	 	M.  	This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original but all of which when taken together shall constitute
one agreement.

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TENANT:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	, a(n)	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	

	 	Name:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	

	 	Its:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MORTGAGEE:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	LaSalle Bank National Association, a national banking association	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	

	 	Name:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	

	 	Its:	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 

19

 

	 	 	 	 	 	 	 	 	 
	STATE OF

	 	 	 	 	)	 	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	)	 	 	SS.
	COUNTY OF

	 	 	 	 	)	 	 	 
	

	 	 	 	 	 	 	 	 

     I,
                    , a Notary Public in and for said County, in the State aforesaid, DO HEREBY CERTIFY, that                     ,
the                     of                     , a                     , who is personally
known to me to be the same person whose name is subscribed to the foregoing instrument, appeared
before me this day in person and acknowledged that he/she signed and delivered the said instrument
as his/her own free and voluntary act and as the free and voluntary act of said                     , for the uses and
purposes therein set forth.

     Given under my hand and notarial seal this                      day of                     , 20___.

	 	 	 	 	 	 	 
	 	 	 	 	 
	

	 	Notary Public	 	 	 	 
	[SEAL]
	 	 	 	 	 	 
	

	 	My commission expires:	 	 	 	 
	

	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 
	STATE
OF ILLINOIS

	 	 	 	 	)	 	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	)	 	 	SS.
	COUNTY OF

	 	 	 	 	)	 	 	 
	

	 	 	 	 	 	 	 	 

     I,                     , a Notary Public in and for said County, in the State aforesaid, DO HEREBY CERTIFY, that                     ,
the                      of LaSalle Bank National Association, a national banking association, who
is personally known to me to be the same person whose name is subscribed to the foregoing
instrument, appeared before me this day in person and acknowledged that he/she signed and delivered
the said instrument as his/her own free and voluntary act and as the free and voluntary act of said
Bank, for the uses and purposes therein set forth.

     Given under my hand and notarial seal this ___day of_________, 20___.

	 	 	 	 	 	 	 
	 	 	 	 	 
	

	 	Notary Public	 	 	 	 
	[SEAL]
	 	 	 	 	 	 
	

	 	My commission expires:	 	 	 	 
	

	 	 	 	 	 	 

21

 

SCHEDULE I

LEGAL DESCRIPTION

 

 

EXHIBIT D

Suite Acceptance Letter

Suite Acceptance Letter

Building Name/Address:

Tenant Name:

Tenant Code:           Suite #:

Management’s Tenant Contact:

Phone #:

To Whom It May Concern:

As a representative of the above referenced tenant, I/we have physically inspected the suite noted
above and its improvements with ___, a representative of Landlord. I/we accept the suite
improvements as to compliance with all the requirements indicated in our lease, also including the
following verified information below:

Occupancy Date: ________, 200_

Actual Rent Start Date: ________, 200_

Actual Lease Commencement Date: _______, 200_

Actual Lease Expiration Date: __________months after Commencement Date.

Date Keys Delivered: ______, 200_

Items Requiring Attention:

_______________________________.

Very truly yours,

	 	 	 	 	 	 	 
	

	 	(Tenant)
	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Its:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Date:<PAGE>
                                                                    EXHIBIT 10.1

                 PURCHASE, SALE AND SERVICING TRANSFER AGREEMENT

                                      AMONG

                          WORLD FINANCIAL CAPITAL BANK,

                BLAIR CORPORATION, JLB SERVICE BANK OF DELAWARE,

                        BLAIR CREDIT SERVICES CORPORATION

                                       AND

                             BLAIR FACTORING COMPANY

                           DATED AS OF APRIL 26, 2005

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                <C>                                                      <C>
ARTICLE I DEFINITIONS....................................................     2

   SECTION 1.1     Definitions of Certain Terms..........................     2
   SECTION 1.2     Interpretation........................................     7

ARTICLE II PURCHASE, SALE AND ASSUMPTION.................................     8

   SECTION 2.1     Purchase and Sale of Assets...........................     8
   SECTION 2.2     Assumption of Liabilities.............................     8
   SECTION 2.3     Purchase Price; Purchase Price Adjustment.............     8
   SECTION 2.4     Intentionally Omitted.................................     9
   SECTION 2.5     Intentionally Omitted.................................     9
   SECTION 2.6     Reimbursement For Non-Eligible Accounts...............     9
   SECTION 2.7     Post-Closing Deliveries...............................     9

ARTICLE III CLOSING; ASSIGNMENT..........................................    10

   SECTION 3.1     The Closing...........................................    10

ARTICLE IV REPRESENTATIONS OF THE PARTIES................................    11

   SECTION 4.1     Representations of the Sellers........................    11
   SECTION 4.2     Representations of the Purchaser......................    14
   SECTION 4.3     No Other Representations or Warranties................    16

ARTICLE V COVENANTS......................................................    16

   SECTION 5.1     Conduct of Business...................................    16
   SECTION 5.2     Certain Changes.......................................    17
   SECTION 5.3     Access and Confidentiality............................    18
   SECTION 5.4     Reasonable Efforts; Other Filings.....................    18
   SECTION 5.5     Additional Instruments................................    20
   SECTION 5.6     Marks; Branding.......................................    20
   SECTION 5.7     Notice to Customers...................................    20
   SECTION 5.8     Intentionally Omitted.................................    20
   SECTION 5.9     Post-Closing Access...................................    20
   SECTION 5.10    Cooperation in Litigation.............................    21
   SECTION 5.11    Bulk Sales Law........................................    21
   SECTION 5.12    Sellers other than the Parent.........................    21
   SECTION 5.13    Other Negotiations....................................    21
   SECTION 5.14    No Waiver.............................................    21
</TABLE>

                                        i

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                <C>                                                      <C>
ARTICLE VI TAXES.........................................................    22

ARTICLE VII CONDITIONS...................................................    23

   SECTION 7.1     Conditions to Each Party's Obligations to
                      Effect the Purchase and Assumption.................    23
   SECTION 7.2     Conditions to Obligations of the Purchaser............    24
   SECTION 7.3     Conditions to Obligations of the Sellers..............    24

ARTICLE VIII TERMINATION.................................................    25

   SECTION 8.1     Termination...........................................    25
   SECTION 8.2     Effect of Termination.................................    26

ARTICLE IX SURVIVAL; INDEMNIFICATION.....................................    26

   SECTION 9.1     Survival..............................................    26
   SECTION 9.2     Indemnification by the Sellers........................    26
   SECTION 9.3     Indemnification by the Purchaser .....................    27
   SECTION 9.4     Notice, Settlements and Other Matters.................    28

ARTICLE X MISCELLANEOUS..................................................    30

   SECTION 10.1    Notices...............................................    30
   SECTION 10.2    Expenses..............................................    31
   SECTION 10.3    Successors and Assigns................................    31
   SECTION 10.4    Entire Agreement; Amendment; Waiver...................    32
   SECTION 10.5    Counterparts..........................................    32
   SECTION 10.6    Governing Law.........................................    32
   SECTION 10.7    Waiver of Jury Trial..................................    32
   SECTION 10.8    Severability .........................................    32
   SECTION 10.9    Public Announcement...................................    32
   SECTION 10.10   Third-Party Beneficiaries.............................    32
   SECTION 10.11   Further Assurances....................................    32

SCHEDULES AND ANNEXES

Schedule A   Closing Statement
Schedule B   Write-Off Policy
Schedule C   Certain Defined Terms
Annex A      Form of Program Agreement
Annex B      Form of Assignment and Assumption Agreement
</TABLE>

                                       ii

<PAGE>

     PURCHASE, SALE AND SERVICING TRANSFER AGREEMENT, dated as of April 26, 2005
(this "Agreement"), among Blair Corporation, a Delaware corporation (the
"Parent"), JLB Service Bank of Delaware, a bank organized under the laws of the
state of Delaware ("JLB"), Blair Credit Services Corporation, a Delaware
corporation ("BCSC"), Blair Factoring Company, a Delaware corporation ("BF"),
and World Financial Capital Bank, an industrial loan bank with its principal
offices located in Utah (the "Purchaser").

                                    RECITALS

     WHEREAS, the Parent is, among other things, (i) engaged in the business of
selling merchandise through catalogs, retail stores and by other means and (ii)
directly and indirectly through certain of its Subsidiaries, including JLB, BCSC
and BF, engaged in the Business (as defined herein);

     WHEREAS, pursuant to this Agreement, the Parent and its Subsidiaries JLB,
BCSC and BF desire to sell to the Purchaser, and the Purchaser desires to
purchase from the Sellers (as defined below), the Acquired Assets (as defined
below) used in the Business pursuant to the terms contained and in the manner
described herein;

     WHEREAS, the Parent entered into that certain Receivables Purchase
Agreement, dated as of December 20, 2001, as amended and/or supplemented through
the Closing Date (the "Pooling Agreement"), by and among, BF, as seller, BCSC as
servicer, and PNC Bank, National Association and the conduit purchaser party
thereto (collectively, the "Pooling Agreement");

     WHEREAS, on the date hereof, the Parent and the Purchaser are entering into
a Program Agreement (the "Program Agreement") in the form attached hereto as
Annex A, to become effective as of the Closing under this Agreement, that
provides for, among other things, the issuance of Parent proprietary cards, the
issuance of existing and new credit related products to be developed with the
Purchaser, the processing and servicing of the related accounts, and the conduct
of related marketing activities; and

     WHEREAS, simultaneously with the Closing under this Agreement, the Sellers,
the Purchaser and certain of their respective Affiliates desire to enter into
other agreements in connection with the transactions contemplated hereby.

     NOW, THEREFORE, in consideration of these premises, and of the mutual
representations and agreements contained in this Agreement, the parties agree as
follows:

                                       1

<PAGE>

                                    ARTICLE I
                                   DEFINITIONS

     SECTION 1.1 Definitions of Certain Terms.

     (a) In this Agreement, the following terms are used with the meanings
assigned below:

     "Account Agreement" means an agreement (including related disclosure)
between Sellers or their Affiliates and a Person or Persons under which accounts
are established and pursuant to which credit is made available to or on behalf
of such Person or Persons, as such agreement may be amended, modified or
otherwise changed from time to time (including pursuant to change of terms
notices).

     "Accrued Interest" means the aggregate amount of all finance charges that
were accrued and earned, but not posted to the Eligible Accounts as of the
Cut-Off Time.

     "Acquired Assets" means all right, title and interest of the Sellers, free
of any Liens, in and to the following assets and properties:

          (1)  the Eligible Accounts and the Gross Receivables accrued as of the
               Cut-Off Time related to the Eligible Accounts;

          (2)  the applications for Eligible Accounts pending and solicitations
               for Eligible Accounts outstanding;

          (3)  the Account Agreements and the Master File;

          (4)  the Bad Debt Inventory;

          (5)  the Books and Records;

          (6)  rights, claims, credits, causes of action and rights of set-off
               against third parties relating principally to the Business or any
               Acquired Assets; and

          (7)  the Scoring Models.

     "Action" means any claim, action, complaint, investigation, subpoena,
petition, suit or other proceeding, whether civil, criminal or administrative,
in law or in equity, or before any arbitrator or Governmental Authority.

     "Affiliate" means, with respect to any Person, any other Person directly or
indirectly controlling, controlled by, or under common control with such Person.

     "Applicable Order" means, with respect to any Person, a judgment,
injunction, writ, decree or order of any Governmental Authority, in each case
legally binding on that Person or on any of its property.

                                       2

<PAGE>

     "Assumed Liabilities" mean the following Liabilities of the Sellers:

          (1)  all obligations to Customers from and after the Closing Date in
               respect of Eligible Accounts to perform under Account Agreements,
               including payment of credit balances as of the Cut-Off Time;

          (2)  all fees, normal operating assessments and other charges relating
               to the Eligible Accounts that are incurred or accrue on or after
               the Closing Date;

          (3)  all Liabilities for Taxes relating to the Business or the
               Acquired Assets to the extent set forth in Article VI; and

          (4)  all obligations relating to Bad Debt Inventory after the Closing
               Date.

     "Bad Debt Inventory" shall mean all accounts charged off by Blair for any
reason (but excluding commissions of collection agencies), except those accounts
twenty-four (24) months or greater past due that Blair is in the process of
selling in the ordinary course of business at the date of this Agreement.

     "Books and Records" means books, records, original documents, files and
papers maintained by or for the Sellers, whether in hard copy or electronic
format, in each case to the extent within any Seller's control and/or possession
and principally used in the Business, other than Tax returns or Tax workpapers.

     "Business" means the business relating to the Eligible Accounts, including
the extension of credit to Customers, the servicing and management of the
Eligible Accounts, billings, collections, processing of Eligible Account
transactions and the administration of the Eligible Accounts and Gross
Receivables, and any actions taken with respect to the Bad Debt Inventory.

     "Business Day" means any day other than a Saturday, a Sunday or a day on
which banks located in New York or Pennsylvania generally are required or
authorized by law or executive order to close.

     "Code" means the Internal Revenue Code of 1986, as amended.

     "Constituent Documents" means the articles of association, articles of
incorporation, certificate of incorporation, by-laws and/or other organizational
documents, as appropriate, of any Person.

     "Contract" means, with respect to any Person, any agreement, undertaking,
contract, indenture, deed of trust or other instrument, document or agreement by
which that Person, or any amount of its properties, is bound and/or subject.

     "Conversion Date" has the meaning assigned to such term in the Program
Agreement.

                                       3

<PAGE>

     "Customer" means a Person or Persons at no time employed by Parent or any
of its Affiliates in whose name(s) a credit account has been established
pursuant to an Account Agreement.

     "Cut-Off Time" means 11:59 PM Eastern time on the date immediately
preceding the Closing Date.

     "Eligible Account" means, as of the Cut-Off Time, any account that is
current through 179 days past due, identified by name and account number under
which a purchase or credit transaction may be or has been made by a Customer,
which has not been nor should have been written-off as part of the Sellers'
normal policies and procedures, and for which an Account Agreement is in effect
as of the Closing Date; provided that "Eligible Account" shall not include any
account where the accountholder is deceased or has been declared incompetent or
is subject to any petition under federal bankruptcy law, which account has been
found to be fraudulent, as to which the accountholder is under 18 years of age
or is not an individual or which account is maintained in a corporate or
business name, as to which account there is no valid Account Agreement, which
account is subject to a claim or litigation, or a final Office of Foreign Assets
Control check, or which account is more than 180 days past due.

     "Eligible Receivables" means all Gross Receivables.

     "Estimated Closing Statement" means a statement prepared by the Sellers,
substantially in the form of Schedule A, showing in reasonable detail the
Sellers' calculation of the Estimated Purchase Price.

     "Estimated Purchase Price" means the calculation of the Purchase Price
based on data available as of the close of business on the fifth Business Day
preceding the Closing Date, in accordance with the Estimated Closing Statement.

     "Federal Funds Rate" means the offered rate as reported in The Wall Street
Journal in the "Money Rates" section for reserves traded among commercial banks
for overnight use in amounts of one million dollars or more or, if no such rate
is published for a day, the rate published for the preceding Business Day.

     "Final Closing Statement" means a statement prepared by the Purchaser,
substantially in the form of Schedule A, showing in reasonable detail the
Purchaser's calculation of the Purchase Price, based on the Eligible Accounts
and the Acquired Assets as of the Cut-Off Time.

     "GAAP" means generally accepted accounting principles in the United States.

     "Governmental Authority" means any domestic or foreign governmental,
regulatory or self-regulatory authority, agency, court, tribunal, commission or
other governmental, regulatory or self-regulatory entity exercising legislative,
judicial, regulatory or administrative functions.

                                       4

<PAGE>

     "Gross Receivables" means all amounts owing (after deduction of credit
balances scheduled as of the Cut-Off Time and unapplied cash) to the Sellers
from Customers with respect to Eligible Accounts (including outstanding loans,
cash advances and other extensions of credit; billed or posted but unbilled
finance charges and late charges; Accrued Interest; and any other fees, charges
and interest assessed on the Eligible Accounts) as of the Cut-Off Time (or,
solely with respect to the Estimated Closing Statement, as of the close of
business on the fifth Business Day preceding the Closing Date).

     "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended.

     "Indemnity Cap Amount" has the meaning set forth on Schedule C.

     "Indemnity Deductible" has the meaning set forth on Schedule C.

     "Intellectual Property Right" means any intellectual property right,
including any trademark, service mark or other source indicator, invention,
patent, copyright, trade secret, know-how, and any registration or application
for registration of any of the foregoing.

     "Knowledge" means the actual knowledge of the executive officers of the
respective parties who have managerial responsibility for the relevant area of
the party's business or operations.

     "Liability" means any debt, liability, commitment or obligation, of any
kind whatsoever, whether due or to become due, known or unknown, accrued or
fixed, absolute or contingent, or otherwise.

     "Lien" means, with respect to any property, any lien, security interest,
mortgage, pledge, charge or encumbrance relating to that property, including the
interest of a vendor or lessor under any conditional sale agreement, capital
lease or other title retention agreement relating to such property, or tax
related lien.

     "Master File" means the master file maintained by the Sellers with respect
to the Eligible Accounts, including identification and other Customer data and
Eligible Account information, the names and addresses of Customers with respect
to the Eligible Accounts and any and all Eligible Account adjustments made by or
on behalf of the Sellers in the form commonly maintained by Sellers or an
Affiliate of Sellers.

     "Material Adverse Effect" means:

          (a)  With respect to the Business, a material adverse change in, or a
               material adverse effect upon, the results of operations or
               financial condition of the Business, taken as a whole, excluding
               any effect or change attributable to or resulting from (1)
               events, conditions or occurrences in economic, business or
               financial conditions generally affecting the consumer credit
               business or banking industry, (2) financial market conditions,
               including interest rates or changes therein, (3)

                                       5

<PAGE>

               changes in laws, GAAP or regulatory accounting principles, (4)
               any action, omission, change, effect, circumstance or condition
               contemplated by this Agreement, or attributable to the signing
               and announcement of this Agreement or the transactions
               contemplated by this Agreement or (5) any actions or omissions
               required by the terms of this Agreement; and

          (b)  With respect to the Sellers or the Purchaser, impairment of the
               ability of the relevant Person or Persons to perform its or their
               obligations under this Agreement.

     "Permissible Liens" means Liens for taxes, assessments and other
governmental charges or levies not yet due or which are being contested in good
faith by appropriate action.

     "Person" means any individual, corporation, business trust, partnership,
association, limited liability company or similar organization, or any
Governmental Authority.

     "Previously Disclosed" means, with respect to the Seller or the Purchaser,
information previously given in writing by one party to the other party, whether
in response to an express informational requirement or as an exception to one or
more representations or covenants.

     "Purchase Price" means the purchase price as defined in Schedule A, payable
in accordance with the Final Closing Statement, as finally determined in
accordance with Section 2.3.

     "Requirement of Law" means, with respect to any Person, any law, ordinance,
statute, treaty, rule or regulation or determination of an arbitrator or of a
Governmental Authority, in each case applicable to or binding on that Person or
any material amount of its property.

     "Requisite Regulatory Approvals" means the consents, registrations,
approvals, permits or authorizations referred to in clause (i) of Section
7.1(a).

     "Scoring Models" means the Customer risk scorecard and the Customer
behavioral risk scorecard developed on behalf of the Sellers relating to the
Eligible Accounts and maintained by Sellers or an Affiliate of Sellers.

     "Sellers" means the Parent, JLB, BCSC and BF.

     "Subsidiary" means, with respect to any Person, any other Person a majority
of the outstanding voting securities of which are owned directly or indirectly
by such Person.

     "Tax Return" means any return, declaration, report or similar statement
required to be filed with respect to any Taxes (including any attached
schedules) including any information return, claim for refund, amended return
and declaration of estimated Tax.

     "Taxes" means (A) any income, alternative or add-on minimum tax, gross
receipts, sales, use, transfer, gains, ad valorem, franchise, profits, license,
withholding, payroll, employment,

                                       6

<PAGE>

excise, severance, stamp, occupation, premium, property, environmental or
windfall profit tax, custom, duty or other tax, governmental fee or other like
assessment or charge, together with any interest or any penalty, addition to tax
or additional amount imposed by any Governmental Authority responsible for the
imposition of any such tax (domestic or foreign), and (B) any Liability of the
Sellers for the payment of any amounts of the type described in clause (A) above
as a result of being a member of an affiliated, consolidated, combined or
unitary group for any period.

     (b) Each of the following terms is defined in the section of this Agreement
set forth opposite such term:

<TABLE>
<S>                            <C>
Agreement...................   Preamble
Allocation Statement........   2.4(a)
BF (and JLB and BCSC).......   Preamble
Closing.....................   3.1(a)
Closing Date................   3.1(a)
Confidentiality Agreement...   5.3(c)
Indemnified Party...........   9.4(a)
Indemnifying Party..........   9.4(a)
Losses......................   9.2
Parent......................   Preamble
Pooling Agreement...........   Recitals
Program Agreement...........   Recitals
Purchase and Assumption.....   3.1(a)
Purchaser...................   Preamble
</TABLE>

     SECTION 1.2 Interpretation.

     (a) In this Agreement, unless the context otherwise requires, references
to:

          (i) the Preamble or the Recitals, Sections, Annexes or Schedules refer
to the Preamble or a Recital or Section of, or Annex or Schedule to, this
Agreement;

          (ii) any statute or regulation refer to the statute or regulation as
amended, modified, supplemented or replaced from time to time (and, in the case
of statutes, include any rules and regulations promulgated under the statute)
and to any section of any statute or regulation include any successor to the
section;

          (iii) any Governmental Authority include any successor to the
Governmental Authority; and

          (iv) this Agreement are to this Agreement, the Schedules, and to the
Annexes hereto.

     (b) The table of contents and headings contained in this Agreement are for
reference purposes only and do not limit or otherwise affect any of the
provisions of this Agreement.

                                       7

<PAGE>

     (c) Whenever the word "include," "includes" or "including" is used in this
Agreement, it will be deemed to be followed by the words "without limitation."

     (d) Unless the context otherwise requires, the word "or" when used in this
Agreement will be deemed to have the inclusive meaning represented by the phrase
"and/or."

     (e) This Agreement is the product of negotiation by the parties having the
assistance of counsel and other advisers. It is the intention of the parties
that this Agreement not be construed more strictly with regard to one party than
with regard to the other.

                                   ARTICLE II
                          PURCHASE, SALE AND ASSUMPTION

     SECTION 2.1 Purchase and Sale of Assets. On the terms and subject to the
conditions of this Agreement at the time of the Closing, and effective from and
after the Closing Date, the Sellers shall sell, convey and assign to the
Purchaser, free and clear of all Liens, except Permissible Liens, the Acquired
Assets, and the Purchaser agrees to purchase all such Acquired Assets.

     SECTION 2.2 Assumption of Liabilities. On the terms and subject to the
conditions of this Agreement from and after the Closing Date, the Purchaser
agrees to assume, pay, defend, discharge and perform as and when due the Assumed
Liabilities.

     SECTION 2.3 Purchase Price; Purchase Price Adjustment.

     (a) On the second Business Day before the Closing, the Parent, on behalf of
the Sellers, will deliver to the Purchaser the Estimated Closing Statement
reflecting the Sellers' calculation of the Estimated Purchase Price to be paid
by the Purchaser at the Closing.

     (b) Within sixty (60) Business Days after the Closing, Purchaser will
deliver to Parent the Final Closing Statement prepared based on the information
in the Master File and the other Acquired Assets as of the Cut-Off Time and
copies of the Master File as of the Cut-Off Time and all material working papers
relating to the Final Closing Statement.

     (c) The Parent shall, within fifteen (15) days after receipt of the Final
Closing Statement, advise the Purchaser in writing and in reasonable detail of
any inaccuracies it believes were reflected in the Final Closing Statement. In
the event no such objection is delivered to the Purchaser within such time
period, the Final Closing Statement, as delivered to the Parent, shall be final
and binding upon the parties. In the event the Parent delivers such an
objection, the Sellers and the Purchaser shall attempt in good faith to resolve
their differences. In the event all differences are not resolved within thirty
(30) days following receipt of the Final Closing Statement by the Parent, then
the issues remaining unresolved shall be determined by an independent public
accountant mutually acceptable to the Parent and the Purchaser (the
"Accountant"). The Accountant shall resolve all disputed items in accordance
with the provisions of this Agreement. In making its determination, the
Accountant may only consider

                                       8

<PAGE>

those items and amounts as to which the Purchaser and the Sellers have disagreed
within the time periods and the permitted grounds specified. The Accountant's
determination will be conclusive and binding on the Purchaser and the Sellers
absent manifest error. The fees of the Accountant will be shared by the
Purchaser and the Sellers in proportion to the relative differences between
their respective calculations of the Purchase Price and the amount determined by
the Accountant.

     (d) If the Estimated Purchase Price exceeds the Purchase Price, then the
Parent, on behalf of the Sellers, shall, within five (5) Business Days after the
Purchase Price has been finally determined pursuant to Section 2.3(c), pay such
excess to the Purchaser, together with interest on such excess for the period
from and including the Closing Date to but excluding the date of such payment at
a rate per annum equal to the Federal Funds Rate. If the Estimated Purchase
Price is less than the Purchase Price, then the Purchaser shall, within five (5)
Business Days after the Purchase Price has been finally determined pursuant to
Section 2.3(c), pay such deficiency to the Parent on behalf of the Sellers,
together with interest on such deficiency for the period from and including the
Closing Date to but excluding the date of such payment at a rate per annum equal
to the Federal Funds Rate. Each party to this Agreement will make available to
the other parties, and to the Accountant, its and its accountants' work papers,
schedules and other supporting data as may be reasonably requested by such party
to enable it to verify the amounts set forth in the Final Closing Statement.

     SECTION 2.4 Intentionally Omitted.

     SECTION 2.5 Intentionally Omitted.

     SECTION 2.6 Reimbursement For Non-Eligible Accounts. If Sellers transfer
any non-Eligible Accounts and related Gross Receivables to the Purchaser, then
during the one hundred eighty (180) day period following the Closing Date, the
Sellers shall promptly, following written notice to the Sellers by the
Purchaser, repurchase all such non-Eligible Accounts and related Gross
Receivables. The Sellers shall pay to the Purchaser, for any such repurchases,
an amount equal to the Purchase Price of the Eligible Accounts and/or Gross
Receivables together with interest at the Federal Funds Rate on such Purchase
Price from the Closing Date to the date of payment, and the Purchaser will
reassign such non-Eligible Accounts and/or Gross Receivables to the Sellers and
the Purchaser will promptly credit against the Seller's payment all Customers'
payments received for such non-Eligible Accounts. The Sellers will assume any
obligations of the Purchaser to refund such Customer payments. This provision
applies only to accounts that were not charged off by Blair prior to Closing.

     SECTION 2.7 Post-Closing Deliveries.

     (a) The Sellers shall be entitled to retain all payments from Customers on
Eligible Accounts posted by the Sellers prior to the cut-Off Time.

     (b) All payments posted to the Eligible Accounts by the Sellers after the
Cut-Off Time shall be deposited by the Sellers in their own account and
thereafter settled with the Purchaser in accordance with the provisions of this
Section 2.7. The Purchaser hereby authorizes and empowers the Sellers to sign
and endorse (without recourse by the Purchaser against the Sellers

                                       9

<PAGE>

with respect to such endorsement) the Purchaser's name as the Purchaser's
attorney-in-fact on all checks, drafts, money orders or other forms of payment
relating to such Eligible Account so received by the Sellers but payable to the
order of the Purchaser. Within 24 hours after the end of each Business Day, the
Sellers will provide the Purchaser with a computer tape listing all said
payments containing the amount and Eligible Account number for each payment so
received by the Sellers. The Sellers will transfer via wire transmission or
automated clearinghouse said funds to the Purchaser, without cost to the
Purchaser, for the first thirty (30) days after the Closing Date, on each Friday
following the Closing and monthly thereafter. If the Purchaser receives any
checks, drafts, money orders or other forms of payment relating to the Eligible
Accounts subsequent to the Cut-Off Time, which instruments are payable to the
order of the Sellers, the Sellers hereby authorize and empower the Purchaser to
sign and endorse (without recourse by the Sellers against the Purchasers with
respect to such endorsement) the Seller's name as the Sellers' attorney-in-fact
on such Eligible Accounts to facilitate the deposit thereof. If any such payment
is sent to the Purchaser later than specified above, such payment shall be
accompanied by interest on such amount calculated on the basis of an interest
rate equal to the Federal Funds Rate for each day during the period between the
date of receipt of such payment by the Sellers and the date the Sellers pay the
Purchaser.

                                   ARTICLE III
                               CLOSING; ASSIGNMENT

     SECTION 3.1 The Closing.

     (a) The closing (the "Closing") of the purchase and sale of the Acquired
Assets and assumption of the Assumed Liabilities hereunder (collectively, the
"Purchase and Assumption") will take place through the wire transfer of the
Estimated Purchase Price and facsimile exchange, together with subsequent
overnight courier exchange, of the required closing documents, on the Business
Day after the last of the conditions set forth in Sections 7.1, 7.2 and 7.3
(other than conditions relating solely to the delivery of documents to be dated
the Closing Date) has been satisfied or waived in accordance with the terms of
this Agreement or at such other date as the parties hereto jointly designate in
writing (the "Closing Date").

     (b) At the Closing, the Purchaser will, and the Sellers will, deliver or
cause to be delivered to each other an agreement of sale, assignment, transfer
and conveyance of the Acquired Assets and assumption of the Assumed Liabilities,
respectively, in substantially the forms set forth in Annex B and such other
instruments as are necessary or appropriate to reflect any alternative
arrangements described in Section 2.5, appropriately executed by the Sellers and
the Purchaser.

     (c) At the Closing, the Purchaser will pay the Estimated Purchase Price by
initiating a wire transfer of immediately available funds (in U.S. dollars) on
the Closing Date to an account or accounts specified by the Parent at least one
Business Day prior to the Closing Date.

     (d) If a credit is posted to an Eligible Account after the Cut-Off Time
with respect to a Gross Receivable arising prior to the Cut-Off Time, the
Purchaser shall notify the Sellers and the Sellers shall send to the Purchaser
the amount of such credit. Such payments shall be transmitted

                                       10

<PAGE>

to the Purchaser on each Friday following the Closing Date. If any such payment
is sent to the Purchaser later than specified above, such payment shall be
accompanied by interest on such amount calculated on the basis of an interest
rate equal to the Federal Funds Rate for each day during the period between the
date of such credit and the date the Sellers pay the Purchaser.

                                   ARTICLE IV
                         REPRESENTATIONS OF THE PARTIES

     SECTION 4.1 Representations of the Sellers. The Sellers represent to the
Purchaser as follows, Purchaser acknowledging that as of the date of this
Agreement the Pooling Agreement and related agreements are in full force and
effect and the following representations are subject to the termination thereof
in accordance with Section 7.1 and 7.2(a) thereof:

     (a) Existence and Authority. Each Seller is duly organized and validly
existing under its jurisdiction of organization. Each Seller has the requisite
power and authority to own the Acquired Assets owned by it and to carry on the
Business as currently conducted by it, and is duly qualified to do business in
each jurisdiction where its the ownership or operation of the Acquired Assets or
its conduct of the Business requires such qualification, except for any failure
to have such authority or be so qualified that would not reasonably be expected
to have a Material Adverse Effect on the Business or the Sellers.

     (b) Authorization and Validity. Each Seller has the requisite corporate
power and authority to execute, deliver and perform its obligations under this
Agreement. This Agreement has been duly authorized by each Seller party thereto.
This Agreement has been duly executed and delivered by each Seller. Subject to
required regulatory filings with and approvals by the Federal Deposit Insurance
Corporation and the [Delaware Banking Department], and assuming that this
Agreement has been duly authorized, executed and delivered by the Purchaser,
this Agreement is the legal, valid and binding obligation of the Sellers,
enforceable against Sellers in accordance with its terms, subject to applicable
bankruptcy, insolvency, moratorium, reorganization, fraudulent transfer and
other laws affecting creditors' rights generally and to general equitable
principles.

     (c) Governmental and Third-Party Consents. Except for any notification that
may be required under the HSR Act, the Bank Merger Act and Delaware banking law,
no notices, reports or other filings are required to be made by the Sellers
with, nor are any consents, registrations, approvals, permits or authorizations
required to be obtained by the Sellers from, any Governmental Authority or any
other third party in connection with the execution, delivery or performance of
this Agreement by the Sellers or the consummation by them of the transactions
contemplated by this Agreement, except for such notices, reports, filings,
consents, registrations, approvals, permits or authorizations which have been
given or made or those the failure to obtain which would not have a Material
Adverse Effect on the Business or the Sellers.

     (d) No Conflicts. The execution, delivery and performance by the Sellers of
this Agreement does not, and (subject to obtaining the Previously Disclosed
governmental and third-party consents referred to in Section 4.1(c)) the
consummation of the transactions contemplated by this Agreement will not:

                                       11

<PAGE>

          (i) Breach or violate the Constituent Documents of the Sellers;

          (ii) Breach or violate any Requirement of Law or Applicable Order
applicable to the Sellers;

          (iii) Breach, violate or result in a default under the terms,
conditions or provisions of any Contract of any Seller, or give any third party
the right to terminate or cancel any right of any Seller under any Contract of
such Seller, or accelerate the performance of its obligations thereunder, in
each case where such Contract relates to the Business or is binding upon the
Acquired Assets; or

          (iv) Result in the creation of any Lien (other than Permissible Liens)
on any Acquired Asset other than a Permissible Lien (with or without the giving
of notice or the lapse of time, or both);

except in each case described in clause (ii), (iii) or (iv), for any breach,
violation, default, termination, cancellation, acceleration or Lien that would
not reasonably be expected to have a Material Adverse Effect on the Sellers or
on the Business prior to the Closing Date.

     (e) Absence of Certain Changes.

          (i) Since January 1, 2005, the Business has been conducted in the
ordinary course and there has not been any change in the financial condition or
results of operations of the Business that has had or would reasonably be
expected to have a Material Adverse Effect on the Business prior to the Closing
Date or the Sellers.

          (ii) Set forth on Schedule B hereto is a true and complete copy of the
write-off policy of each of the Sellers as in effect on January 1, 2005. Since
January 1, 2005 (A) the Eligible Accounts and Gross Receivables have been
underwritten, established, administered, serviced, collected, terminated and
charged-off in the ordinary course consistent with Sellers' past practice, and
(B) Sellers have not materially amended, modified or supplemented or otherwise
made any material changes to the policies and procedures as in effect on such
date.

     (f) Title to Properties; Encumbrances. Each Seller has good title to or a
valid leasehold interest in, or is licensed or otherwise entitled to use, all of
the Acquired Assets owned or used by it (other than the Eligible Accounts, to
which Section 4.1(k) is applicable), free and clear of all Liens other than
Permissible Liens.

     (g) Litigation. There are no Actions pending, in arbitration or before any
Governmental Authority against any Seller in connection with the Business or any
Acquired Asset, or to the Sellers' Knowledge, threatened against any of the
Sellers with respect to the Business or Acquired Assets, in each case that would
reasonably be expected to have a Material Adverse Effect on the Business or
Acquired Assets prior to the Closing Date.

                                       12

<PAGE>

     (h) Books and Records. All Books and Records of the Sellers relating to the
Business have been maintained accurately and in accordance with GAAP (where
applicable) and with all Requirements of Law applicable to the Sellers and the
Business, except for any instances of inaccuracy or noncompliance that would not
reasonably be expected to have a Material Adverse Effect on the Business or the
Sellers.

     (i) Compliance with Laws. Except to the extent that the following would not
reasonably be expected to have a Material Adverse Effect on the Business or the
Sellers prior to the Closing Date:

          (i) the Sellers are in compliance with all Requirements of Law
relating to the Business and the Acquired Assets; and

          (ii) the Sellers are not subject to any capital plan or supervisory
agreement, order or memorandum between any of them and any Governmental
Authority.

     (j) Account Agreements; Eligible Accounts and Gross Receivables. Except to
the extent that any of the following would not have a Material Adverse Effect on
the Business prior to the Closing Date or the Sellers:

          (i) Each Seller is the sole owner of and has good title to its
Eligible Accounts and Gross Receivables and the Bad Debt Inventory. This
Agreement shall, following the Closing Date, and subject to the filing of
appropriate financing statements and all required continuations, amendments and
replacements thereof, vest in the Purchaser all right, title and interest of the
Sellers in and to the Eligible Accounts, the Gross Receivables, free and clear
of all Liens.

          (ii) Each Account Agreement is a valid and legally binding obligation
of each obligor thereunder, including any cosigner, guarantor or surety, in the
full amount thereof set forth in the Books and Records of the Business, and is
enforceable against such obligors in accordance with its terms, subject to (A)
claims and defenses on disputed transactions asserted by a Customer as indicated
on the Master File or the Books and Records, (B) applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer and other laws
relating to or affecting creditors' rights generally and the effect of general
equitable principles, and (C) the Soldiers' and Sailors' Civil Relief Act of
1940, as amended. The form of Account Agreement has been previously provided by
Sellers to Purchaser, and that form contains all material terms of the Account
Agreement as in effect as of the date of this Agreement for each of the Eligible
Accounts and the Bad Debt Inventory; provided that no representation or warranty
is hereby given as to the capacity, authority or any other factor relating to
the identity or status of the obligor which may effect the enforceability of the
Account Agreement to which it is party.

          (iii) Each Gross Receivable is not subject to offset, refund,
recoupment, reversal, adjustment or any claim or defense by any Person (other
than claims or defenses on disputed transactions and refunds of credit balances,
as indicated on the Master File). No Gross Receivable and none of the Eligible
Accounts related thereto have been reaffirmed by the

                                       13

<PAGE>

applicable obligor in connection with or following any bankruptcy, insolvency or
similar Action involving such obligor.

          (iv) Each account comprised in the Acquired Assets complies with the
applicable Account Agreement.

          (v) All Eligible Account and the Bad Debt Inventory applications have
been taken and evaluated and applicants notified in a manner that complied with
all applicable Requirements of Law.

          (vi) All Eligible Accounts and the Bad Debt Inventory have been
originated, maintained and serviced in all material respects in compliance with
all applicable Requirements of Law.

          (vii) All disclosures made in connection with the Eligible Accounts
and the Bad Debt Inventory complied in all material respects with all applicable
Requirements of Law.

     (k) No Brokers or Finders. The Assumed Liabilities do not include, and the
Sellers are solely responsible for and shall pay, any Liability incurred by any
of them or any of their Affiliates for any financial advisory fees, brokerage
fees, commissions or finder's fees directly or indirectly in connection with
this Agreement or the transactions contemplated hereby.

     (l) Accuracy of Information. The information contained in the Master File
and the Books and Records delivered to Purchaser prior to the date hereof was,
and the information contained in the Master File and the Books and Records
delivered to Purchaser on the Closing Date will be, complete and accurate in all
material respects as of the date of delivery and the Cut-Off Time, respectively.

     SECTION 4.2 Representations of the Purchaser. The Purchaser represents to
the Sellers as follows, that upon approval from the Federal Deposit Insurance
Corporation and the Utah Department of Financial Institutions with respect to
the transactions contemplated by this Agreement:

     (a) Existence and Authority. The Purchaser is an industrial bank, validly
existing and in good standing under the laws of Utah and has the requisite power
and authority to carry on its business as now conducted and to acquire the
Acquired Assets.

     (b) Authorization and Validity. The Purchaser has the requisite corporate
power and authority to execute, deliver and perform its obligations under this
Agreement. This Agreement has been duly authorized by the Purchaser. This
Agreement has been duly executed and delivered by the Purchaser. Subject to the
required filings with and approvals by the Federal Deposit Insurance Corporation
and the Utah Department of Financial Institutions, assuming that this Agreement
has been, duly authorized, executed and delivered by the Sellers, this Agreement
is, the legal, valid and binding obligation of the Purchaser, enforceable
against the Purchaser in accordance with its terms, subject to applicable
bankruptcy, insolvency, moratorium,

                                       14

<PAGE>

reorganization, fraudulent transfer and other laws affecting creditors' rights
generally and to general equitable principles.

     (c) Governmental and Third-Party Consents. Except for any notification that
may be required under the HSR Act, the Bank Merger Act and Utah banking law, no
notices, reports or other filings are required to be made by the Purchaser with,
nor are any consents, registrations, approvals, permits or authorizations
required to be obtained by it from, any Governmental Authority or any other
third party in connection with the execution, delivery and performance of this
Agreement by the Purchaser or the consummation by the Purchaser of the
transactions contemplated by this Agreement, except for such notices, reports,
filings, consents, registrations, approvals, permits or authorizations which
have been give or made or those the failure to obtain which would not have a
Material Adverse Effect on the Purchaser or on the Business following the
Closing Date.

     (d) No Conflicts. The execution, delivery and performance by the Purchaser
of this Agreement does not, and (subject to obtaining the Previously Disclosed
governmental and third-party consents referred to in Section 4.2(c)) the
consummation of the transactions contemplated by this Agreement will not:

          (i) Breach or violate the Purchaser's Constituent Documents;

          (ii) Breach or violate any Requirement of Law or Applicable Order
applicable to the Purchaser;

          (iii) Breach, violate or result in a default under the terms,
conditions or provisions of any Contract of the Purchaser, or give any third
party the right to terminate or cancel any right of the Purchaser under any such
Contract, or accelerate the performance of its obligation thereunder; or

          (iv) Result in the creation of any Lien (other than a Permissible
Lien) on the properties or assets of the Purchaser;

except in each case described in clause (ii), (iii) or (iv), for any breach,
violation, default, termination, cancellation, acceleration or Lien that would
not reasonably be expected to have a Material Adverse Effect with respect to the
Purchaser following the Closing Date.

     (e) Absence of Certain Changes. Since January 1, 2005, there has not been
any change in the financial condition or results of operations of the Purchaser
that has had or would reasonably be expected to have a Material Adverse Effect
with respect to the Purchaser or the Acquired Assets following the Closing Date.

     (f) Compliance with Laws. Except to the extent that the following would not
reasonably be expected to have a Material Adverse Effect with respect to the
Purchaser or the Business after the Closing Date:

                                       15

<PAGE>

          (i) the Purchaser is, or on the Closing Date will be, in compliance
with all Requirements of Law relating to its credit card business; and

          (ii) the Purchaser is not, and on the Closing Date will not be,
subject to any capital plan or supervisory agreement, order or memorandum
between it and any Governmental Authority.

     (g) Servicing Qualifications. The Purchaser or any entity to which it has
subcontracted its servicing obligations is, or as of the Closing Date will be,
licensed and qualified in all jurisdictions necessary to service the Eligible
Accounts in accordance with all applicable Requirements of Law, except where the
failure to be so qualified would not have a Material Adverse Effect on the
Purchaser or the Business.

     (h) Financing. The Purchaser has sufficient cash, available lines of credit
or other sources of immediately available funds to enable it to pay the
Estimated Purchase Price as required by Section 3.1(c) and to timely pay any and
all other amounts to be paid by it under this Agreement and all other agreements
entered into in connection herewith or related hereto.

     (i) Litigation. There are no Actions pending, in arbitration or before any
Governmental Authority, or to the Purchaser's Knowledge, against the Purchaser
or any of its assets that would be reasonably expected to prohibit the
transactions contemplated hereby.

     (j) No Brokers or Finders. Any Liability incurred by the Purchaser or its
Affiliates for any financial advisory fees, brokerage fees, commissions or
finder's fees directly or indirectly in connection with this Agreement or the
transactions contemplated hereby will be borne by the Purchaser.

     SECTION 4.3 No Other Representations or Warranties. Except as expressly set
forth in this Article IV and Article VI, neither the Sellers nor the Purchaser
have made or make any other express or implied representations, or any express
or implied warranty, either written or oral, with respect to the Acquired
Assets, the Assumed Liabilities or the Sellers, the Business or the Purchaser,
respectively.

                                    ARTICLE V
                                    COVENANTS

     SECTION 5.1 Conduct of Business.

     (a) Except as otherwise contemplated hereby or Previously Disclosed to the
Purchasers, and except for transactions in the ordinary course of business,
until the Closing Date, the Parent will, and will cause the other Sellers to,
use their respective commercially reasonable efforts to preserve intact the
business organizations and relationships with third parties relating to the
Business, to keep available the services of required employees of the Business
and to preserve beneficial relationships with Customers, following substantially
the same material practices and standards, including collection practices and
accounting practices for charge-offs and reserves, as in effect on January 1,
2005.

                                       16

<PAGE>

     (b) Except as otherwise contemplated hereby, and except for transactions in
the ordinary course of business, until the Closing Date, the Purchaser will use
its respective commercially reasonable efforts to preserve intact the business
organizations and relationships with third parties relating to its credit
business, to keep available the services of required employees of its credit
business and to preserve beneficial relationships with customers in connection
with its credit business, following substantially the same material practices
and standards, including collection practices and accounting practices for
charge-offs and reserves, as in effect on the date hereof.

     SECTION 5.2 Certain Changes. Without limiting Section 5.1, and except as
otherwise contemplated hereby or required by applicable Requirements of Law,
from the date hereof until the Closing Date, without the prior written consent
of the Purchaser (which consent will not be unreasonably withheld or delayed),
the Sellers will not:

     (a) Enter into or amend any Contract relating to the Business (except for
the termination of certain collection and reporting Contracts in accordance with
their terms) except in the ordinary course of the Business consistent with past
practice and only to the extent such entry or amendment would not have a
Material Adverse Effect;

     (b) Acquire, except in the course of collection, a material amount of
assets from any other Person or all or substantially all of the business or
assets of any Person if such business or assets would constitute Acquired
Assets;

     (c) Change in any material respect its credit and underwriting, posting,
collection, charge-off or operating policies and procedures (or the manner of
application thereof) with respect to the Business as in effect on January 1,
2005;

     (d) Sell, lease or otherwise dispose of any of the Acquired Assets except
(1) in the ordinary course of business consistent with past practice and in
transactions that individually or in the aggregate with all such other
dispositions would not have a Material Adverse Effect on the Sellers or the
Business, (2) in connection with securitizations of receivables arising under
the Eligible Accounts (provided that the benefits thereof are transferable to
the Purchaser at the Closing), (3) pursuant to the terms of commitments existing
as of the date hereof or (4) as Previously Disclosed;

     (e) Change any of the Account Agreements, except in accordance with its
terms;

     (f) Agree with any Person or otherwise commit themselves to do any of the
foregoing.

If Sellers contemplate taking any of the permitted actions set forth in clauses
(a) through (d) above, they shall provide prior notice of such action to
Purchaser.

                                       17

<PAGE>

     SECTION 5.3 Access and Confidentiality.

     (a) Until the Closing Date, upon reasonable prior notice and subject to
applicable Requirements of Law relating to the exchange of information, the
Parent will, and will cause the other Sellers to, permit the Purchaser and its
authorized representatives to have reasonable access, during regular business
hours for purposes consistent with this Agreement (including reasonable access
to the servicing reports, systems and procedures of the other Sellers), to the
personnel, properties and financial Books and Records relating to the Business,
to the extent that such access does not interfere with the business of the
Sellers; provided, that the Purchaser and such representatives comply with the
confidentiality obligations contained herein and in the Confidentiality
Agreement (as defined below); and provided, further that the foregoing shall not
(1) require the Sellers to permit any inspection, or to disclose any
information, that in their reasonable judgment would result in the disclosure of
any trade secrets of third parties or trade secrets of the Sellers or their
Affiliates unrelated to the Business or violate any obligations of the Sellers
to any third party with respect to confidentiality if the Sellers shall have
used commercially reasonable efforts to obtain the consent of such third party
to such inspection or disclosure or (2) require any disclosure by the Sellers
that could, as a result of such disclosure, have the effect of causing the
waiver of any attorney-client privilege.

     (b) If this Agreement is terminated, the Purchaser, at its own expense,
will promptly deliver (without retaining any copies) to the applicable Seller,
or (at the Sellers' option) confirm in writing to the Sellers that it has
completely destroyed, all information furnished to the Purchaser or its
representatives by the Sellers or any of their agents, employees or
representatives in connection with this Agreement, whether so obtained before or
after the execution hereof, and all analyses, compilations, forecasts, studies
or other documents prepared by the Purchaser or its representatives that contain
or reflect any such information. The Purchaser will cause any information so
obtained to be kept confidential and will not use, or permit the use of, such
information in its business or in any other manner or for any other purpose
except as contemplated by this Agreement.

     (c) In addition to the confidentiality arrangements contained herein, all
information provided or obtained in connection with the transactions
contemplated by this Agreement (including pursuant to clause (a) above) will be
held by the Purchaser in accordance with the Confidentiality Agreement between
the Purchaser and the Parent dated September 3, 2004 (the "Confidentiality
Agreement"). In the event of a conflict or inconsistency between the terms of
this Agreement and the Confidentiality Agreement, the terms of this Agreement
will govern.

     (d) The Sellers and their Affiliates shall be entitled to specific
performance of the foregoing provisions of this Section 5.3 and the provisions
of the Confidentiality Agreement, in addition to any other remedies that they
may have at law or in equity.

     SECTION 5.4 Reasonable Efforts; Other Filings.

     (a) Subject to the terms and conditions of this Agreement, the Purchaser
will, and the Parent will and cause the other Sellers to, use commercially
reasonable efforts to take, or cause to be taken, all actions and will do, or
cause to be done, all things necessary, proper or advisable

                                       18

<PAGE>

under applicable Requirements of Law, so as to permit consummation of the
Purchase of assets and Assumption as promptly as reasonably practicable and
otherwise to enable consummation of the transactions contemplated by this
Agreement and will cooperate fully to that end.

     (b) Without limiting Section 5.4(a), the Parent will and will cause the
other Sellers to, and the Purchaser will, use reasonable best efforts to prepare
all documentation, to effect all filings and to obtain all permits, consents,
approvals and authorizations of all Governmental Authorities necessary to
consummate the transactions contemplated by this Agreement, including taking any
action necessary to defend vigorously, lift, mitigate or rescind the effect of
any litigation or administrative proceeding involving any Governmental Authority
adversely affecting the transactions contemplated by this Agreement or this
Agreement, including promptly appealing any adverse court or administrative
decision. Each of the Sellers, on the one hand, and the Purchaser, on the other
hand, shall consult with the other with respect to the obtaining of such
permits, consents, approvals and authorizations and to keep the other apprised
of the status thereof. Subject to appropriate confidentiality protections, the
Sellers and the Purchaser shall each furnish to the others such necessary
information and reasonable assistance as any of the other parties may request in
connection with the foregoing and shall each provide counsel for the other
parties with copies of all filings made by such party, and all correspondence
between such party (and its advisors) with any Governmental Authority and any
other information supplied by such party and such party's Affiliates to a
Governmental Authority in connection with this Agreement and the transactions
contemplated hereby. Each party shall, subject to applicable Requirements of
Law, permit counsel for the other party to review in advance any such proposed
written communication to any Governmental Authority.

     (c) Without limiting the foregoing, the Parent will, and will cause the
other Sellers to, and the Purchaser will, use reasonable best efforts to obtain
the Requisite Regulatory Approvals in time to permit the Closing Date to occur
on or before October 31, 2005 or, if the Closing Date has not occurred, as
promptly after October 31, 2005 as reasonably practicable. The Parent, on the
one hand, and the Purchaser, on the other hand further agrees, without any
request or demand by the other, to complete all necessary filings related to the
Requisite Regulatory Approvals no later than ten (10) Business Days from the
execution and delivery of this Agreement and to prosecute actively all such
filings and pursue the receipt of each Requisite Regulatory Approval.

     (d) The Purchaser will promptly notify the Sellers in writing, and the
Parent will and will cause the other Sellers to promptly notify the Purchaser in
writing, upon (i) becoming aware of any order or decree or any complaint praying
for an order or decree restraining or enjoining the execution of this Agreement
or the consummation of the transactions contemplated hereunder, or (ii)
receiving any notice from any Governmental Authority of its intention to (A)
institute an Action to restrain or enjoin the execution of this Agreement or the
consummation of the transactions contemplated hereunder or (B) nullify or render
ineffective this Agreement if such transactions are consummated.

     (e) The filing fees under the HSR Act or any other antitrust or other laws
shall be borne by the Purchaser.

                                       19

<PAGE>

     SECTION 5.5 Additional Instruments. At the reasonable request of the
Parent, on the one hand, or the Purchaser, on the other hand, at or after the
Closing, the Person receiving such request will promptly execute and deliver, or
cause to be executed and delivered, to the requesting party such assignments,
bills of sale, assumption agreements, consents and other similar instruments in
addition to those required by this Agreement, in form and substance satisfactory
to the requesting party, as may be reasonably necessary to carry out or
implement any provision of this Agreement.

     SECTION 5.6 Marks; Branding. It is expressly agreed that, except for the
limited license granted in the Program Agreement and as is otherwise provided in
this Section 5.6, the Purchaser is not purchasing or acquiring any right, title
or interest in the name "Blair" or any variation thereof or any trademarks,
trade names or service marks or other intellectual property of the Sellers or
their Affiliates as the Sellers or their Affiliates have used prior to the date
of this Agreement (or will or may use or own thereafter) in connection with the
Eligible Accounts or the Business (collectively, the "Marks"). The Purchaser
acknowledges that the Sellers or their Affiliates own the Marks and goodwill
related thereto and symbolized thereby, and the Purchaser covenants not to
contest the Sellers' or their affiliates' title in and to the Marks. However,
the Sellers hereby grant the Purchaser a royalty-free license to use, after the
Closing, the name "Blair" and such other marks of the Sellers as have been used
in connection with the Eligible Accounts and the Gross Receivables for
identification purposes, to the extent permitted by Law, in any collection
efforts or other Customer communications and for the purpose of otherwise
enforcing all of the Purchaser's rights in the Acquired Assets. The Purchaser
shall cease all use of the Marks under this exception when the Purchaser no
longer owns any Eligible Accounts.

     SECTION 5.7 Notice to Customers.

     (a) On or within seven (7) Business Days following the Closing Date, the
Purchaser will, after conferring with the Sellers, prepare a form or forms of
notice to each Customer with an Eligible Account to the effect that such
Customer's Eligible Account has been acquired by the Purchaser. Such notice
shall be in the form that will comply with all applicable Requirements of Law.
The costs of preparation and mailing of such notices shall be borne by the
Purchaser. The mailing shall be made in such manner and at such time as the
Purchaser decides, after conferring with the Sellers.

     (b) From and after the date of this Agreement and until the Closing, the
Purchaser and its Affiliates shall not communicate with the Customers (whether
by mail, by telephone or otherwise) without the prior written consent of the
Sellers.

     SECTION 5.8 Intentionally Omitted.

     SECTION 5.9 Post-Closing Access. On and after the Closing Date, the
Purchaser and the Seller will upon reasonable notice afford to the other party,
their Affiliates and their representatives reasonable access (including the
right to copy to the extent permitted by Requirements of Law), without charge,
during normal business hours, to the Acquired Assets, the Books and Records
relating thereto and any third party who maintains or controls any of the
foregoing, all as may be reasonably required in order to enable the requesting
party to (i) perform

                                       20

<PAGE>

any covenants required to be performed under this Agreement after the Closing
Date by them; (ii) permit the preparation of any Tax Return or other document
required to be filed with any Governmental Authority; (iii) respond to any
Action by any Governmental Authority or any other Person, including any
Customer; and (iv) permit the processing of or response to any claim made under
this Agreement and the other party shall reasonably cooperate with the
requesting party, if requested, in connection with the foregoing. The party
requesting such access shall comply with the other party's security policies and
procedures.

     SECTION 5.10 Cooperation in Litigation. The Sellers shall keep all Accounts
in Actions and copies of all litigation filings, correspondence, Books and
Records and other documentation of any kind that the Sellers reasonably
determine are necessary or desirable in connection with its handling and
disposition of Actions, and the parties shall comply with each other's
reasonable requests for access concerning any Actions or materials relating
thereto.

     SECTION 5.11 Bulk Sales Law. The Purchaser and the Sellers hereby
acknowledges that they do not intend to comply, in connection with the
transactions contemplated hereby, with the provisions of any applicable bulk
sale or similar Requirement of Law (including the Uniform Commercial Code Bulk
Transfer provisions).

     SECTION 5.12 Sellers other than the Parent. The Parent shall take all
lawful actions to cause the other Sellers to comply with all agreements and
covenants applicable to them.

     SECTION 5.13 Other Negotiations. During the period from the date of this
Agreement to the Closing Date, except as otherwise required based upon the
fiduciary duties applicable to the Board of Directors of each Seller under
Delaware law, the Sellers shall not, directly or indirectly, (i) initiate,
solicit or encourage discussions with; (ii) provide (or permit access to)
information to, or (iii) approve or enter into a transaction with, any Person or
group of Persons concerning any proposed or possible transfer of any of the
Acquired Assets.

     SECTION 5.14 No Waiver. The Sellers and the Purchaser are sophisticated
parties and have negotiated the terms of this Agreement with the specific
purpose of, among other things, allocating the Sellers' and the Purchaser's
respective risks and obligations hereunder.

     (a) The Sellers expressly acknowledge and agree that the Purchaser's actual
or constructive knowledge, whether on, prior to or following the date of this
Agreement of (i) any breach of any representation or warranty of the Sellers in
Section 4.1 hereof or (ii) the occurrence or failure to occur, or the impending
or threatened occurrence or failure to occur, of any event which occurrence or
failure to occur would cause or be reasonably likely to cause the failure of any
of the conditions set forth in Section 7.2(a) or 7.2(b), shall not (x) limit,
constitute a waiver of or otherwise affect any rights of or remedies available
to the Purchaser under this Agreement, including, without limitation, the
Purchaser's termination rights under Article VIII and rights to indemnification
under Section 9.2 or (y) qualify, excuse any inaccuracies in or otherwise alter
or affect the Sellers' representations and warranties or obligations under this
Agreement.

                                       21

<PAGE>

     (b) The Purchaser expressly acknowledges and agrees that the Sellers'
actual or constructive knowledge, whether on, prior to or following the date of
this Agreement of (i) any breach of any representation or warranty of the
Purchaser in Section 4.2 hereof or (ii) the occurrence or failure to occur, or
the impending or threatened occurrence or failure to occur, of any event which
occurrence or failure to occur would cause or be reasonably likely to cause the
failure of any of the conditions set forth in Section 7.3(a) or 7.3(b), shall
not (x) limit, constitute a waiver of or otherwise affect any rights of or
remedies available to the Sellers under this Agreement, including, without
limitation, the Sellers' termination rights under Article VIII and rights to
indemnification under Section 9.3 or (y) qualify, excuse any inaccuracies in or
otherwise alter or affect the Sellers' representations and warranties or
obligations under this Agreement.

                                   ARTICLE VI
                                      TAXES

     (a) The Parent hereby represents and warrants to the Purchaser that the
Sellers have timely filed all Tax Returns relating to the Business, the Acquired
Assets that they were required to file on or before the date hereof (taking into
account all applicable extensions), and have timely paid all Taxes shown thereon
as due and owing. There are no Liens with respect to Taxes upon any of the
Acquired Assets other than with respect to Taxes not yet due and payable or
which are being contested in good faith by appropriate action.

     (b) At the requesting party's expense, the parties hereto shall furnish or
cause to be furnished to each other, promptly upon reasonable request, any
information and assistance relating to the Acquired Assets and the Business as
the requesting party deems reasonably necessary in connection with the filing of
any Tax Returns, the preparation for any audit by any Taxing authority, the
response to any inquiry by a Taxing authority, the mailing or filing of any
notice and the prosecution or defense of any claim, suit or proceeding relating
to any Tax Returns or any other filing required to be made with any Taxing
authority or any other matter related to Taxes. The Purchaser will, and the
Parent will and will cause the other Sellers to, cooperate with each other in
the conduct of any audit or other proceeding related to Taxes involving the
Business prior to the Closing Date. However, notwithstanding any other provision
in this Section 6, and except as specifically required elsewhere in this
Agreement or the Program Agreement, the Purchaser shall not be obligated to
disclose to Sellers or their agents information regarding the Eligible Accounts
that arises after the Closing Date.

     (c) Notwithstanding anything in this Agreement to the contrary, all Tax
Returns filed by the Sellers for periods ending on or before the Closing Date
shall remain the property of the Sellers.

     (d) Notwithstanding anything in this Agreement to the contrary, all excise,
sales, use, transfer, documentary, stamp or similar Taxes (excluding Taxes on
income) that are payable or that arise as a result of the consummation of the
transactions contemplated by this Agreement and any recording or filing fees
with respect thereto will be borne by the Purchaser.

                                       22

<PAGE>

     (e) The Purchaser shall, if the Sellers so request and at the Sellers'
expense (for reasonable costs and expenses), cooperate with the Sellers to file
for and obtain any Tax refund that relates to any period prior to the Closing
Date.

                                   ARTICLE VII
                                   CONDITIONS

     SECTION 7.1 Conditions to Each Party's Obligations to Effect the Purchase
and Assumption. The respective obligations of the Parent, the other Sellers and
the Purchaser to effect the Purchase and Assumption are subject to the
fulfillment or written waiver, at or prior to the Closing Date, of the following
conditions:

     (a) Governmental and Regulatory Approvals. (i) The HSR waiting period shall
have expired or have been earlier terminated, applicable bank regulatory
approvals shall have been obtained, Bank shall have obtained approval from the
Federal Deposit Insurance Corporation and the Utah Department of Financial
Institutions with respect to the transactions contemplated by this Agreement,
Sellers shall have obtained approval from the Federal Deposit Insurance
Corporation and the Delaware State Banking Commission with respect to the
transactions contemplated by this Agreement, all applicable approval under the
Bank Merger Act shall have been obtained and (ii) all other authorizations of,
filings and registrations with, and notifications to, all Governmental
Authorities required to effect the transactions contemplated by this Agreement
(other than the Requisite Regulatory Approvals) shall have been obtained or made
and shall be in full force and effect and all waiting periods required by
applicable Requirements of Law in connection therewith shall have expired or
been terminated except to the extent that the failure to obtain any such other
approvals or authorizations would not be reasonably expected to have a Material
Adverse Effect on the Business, the Purchaser or the Sellers.

     (b) Third Party Consents. All necessary consents and approvals of third
Persons shall be in full force and effect, including Lien releases.

     (c) No Injunction or Prohibition. No Governmental Authority of competent
jurisdiction shall have enacted, issued, promulgated, enforced or entered any
statute, rule, regulation, by-law, judgment, decree, injunction or other order
(whether temporary, preliminary or permanent) that is in effect and prohibits or
makes illegal consummation of the transactions contemplated by this Agreement.

     (d) Program Agreement. The Program Agreement shall have been duly executed
and delivered by the other party thereto.

     (e) Financing Statements. The Sellers shall have executed and delivered
UCC-1 financing statements to be filed in the Offices of the Secretaries of
State of the states of Delaware and Pennsylvania and any other state necessary
to perfect the sale of receivables purchased pursuant to the terms and
conditions hereof.

     (f) Conversion and Operation. In connection with and in preparation for the
conversion, prior to the Conversion Date all relevant information and data shall
have been

                                       23

<PAGE>

exchanged between Sellers and Purchaser, such data shall have been tested and
reports of such testing shall have been exchanged and shall be mutually
acceptable to Sellers and Purchaser, and Sellers and Purchaser shall have agreed
that the credit program to be operated pursuant to the Program Agreement is
operational.

     SECTION 7.2 Conditions to Obligations of the Purchaser. The obligations of
the Purchaser to effect the Purchase and Assumption are subject to the
fulfillment or written waiver, at or prior to the Closing Date, of the following
additional conditions:

     (a) Performance of Obligations. The Sellers shall have performed in all
material respects all their covenants and agreements set forth in this
Agreement, to the extent required at or prior to the Closing Date. The Pooling
Agreement and all related agreements entered into in connection therewith shall
have been terminated, and Sellers shall have all right, title and interest in
and to the Acquired Assets.

     (b) Representations. The representations of the Sellers set forth in this
Agreement shall be true and correct as of (1) the date of this Agreement subject
to the introductory sentence of Section 4.1 and the satisfaction of the second
sentence of Section 7.2(a) above, and (2) the Closing Date, except that
representations that by their terms speak as of some other date shall be true
and correct only as of such date (in each case, without giving any effect to any
qualifications or limitations as to materiality or Material Adverse Effect
contained therein), except to the extent that any failure to be so true and
correct has not had, or is not reasonably likely to have, a Material Adverse
Effect on the Parent, BF or the Business.

     (c) Certificate. The Purchaser shall have received a certificate signed on
the Sellers' behalf by an executive officer of the Parent, dated the Closing
Date, to the effect that the conditions set forth in Sections 7.2(a) and 7.2(b)
have been satisfied.

     (d) Affidavit. Each Seller shall have delivered to the Purchaser a
non-foreign affidavit dated as of the Closing Date, sworn under penalties of
perjury and in form and substance required under Treasury regulations issued
pursuant to Section 1445 of the Code stating that such Seller is not a foreign
person as defined in Section 1445 of the Code.

     SECTION 7.3 Conditions to Obligations of the Sellers. The obligations of
the Sellers to effect the Purchase and Assumption are subject to the fulfillment
or waiver in writing, at or prior to the Closing Date, of the following
additional conditions:

     (a) Performance. The Purchaser shall have performed in all material
respects all its covenants and agreements set forth in this Agreement to the
extent required at or prior to the Closing Date.

     (b) Representations. The representations of the Purchaser set forth in this
Agreement shall be true and correct as of (1) the date of this Agreement, and
(2) the Closing Date, except that any representations that by their terms speak
as of the date of this Agreement or some other date shall be true and correct
only as of such date (in each case, without giving any effect to any
qualifications or limitations as to materiality or Material Adverse Effect
contained therein),

                                       24

<PAGE>

except to the extent that any failure to be so true and correct has not had, or
is not reasonably likely to have, a Material Adverse Effect on the Purchaser and
would not reasonably be expected to have a Material Adverse Effect on the
Business following the Closing Date.

     (c) Certificate. The Sellers shall have received a certificate signed on
the Purchaser's behalf by an executive officer of the Purchaser, dated the
Closing Date, to the effect that the conditions set forth in Sections 7.3(a) and
7.3(b) have been satisfied.

                                  ARTICLE VIII
                                   TERMINATION

     SECTION 8.1 Termination. This Agreement may be terminated and the
transactions contemplated by this Agreement may be abandoned at any time before
the Closing Date only:

     (a) By the written consent of the parties hereto;

     (b) By the Purchaser or the Parent, if (i) any approval of a Governmental
Authority, the lack of which would result in the failure to satisfy the
condition set forth in Section 7.1(a), has been denied by the Governmental
Authority, and (ii) in each case such party has no opportunity to cure the fault
giving rise to such denial, including through reapplication or appeal;

     (c) By the Purchaser or the Parent, if (i) any permanent injunction or
Action by any Governmental Authority of competent jurisdiction prohibiting
consummation of the transactions contemplated by this Agreement becomes final
and nonappealable; (ii) any law or regulation makes consummation of the
transactions contemplated by this Agreement illegal or otherwise prohibited,
including any law imposing fiduciary duties referenced in Section 5.13; or (iii)
consummation of the transactions contemplated by this Agreement would violate
any nonappealable final order, decree or judgment of any Governmental Authority
having competent jurisdiction;

     (d) By the Purchaser or the Parent, if the transactions contemplated by
this Agreement are not consummated by October 31, 2005; provided, however, that
neither Purchaser, on the one hand, nor the Parent, on the other hand, may
terminate this Agreement pursuant to this Section 8.1(d) if its (or one of its
Affiliate's) breach of any representation, warranty or covenant contained herein
has been the cause of or resulted in the failure to consummate such transactions
by such date; or

     (e) By either the Purchaser, on the one hand, or the Parent, on the other
hand, in the event of a breach or default in the performance by the other party
(other than any of its Affiliates) of any representation, warranty, covenant or
agreement hereunder, which breach or default (i) would, individually or in the
aggregate with all other uncured breaches and defaults of such other party,
constitute grounds for the conditions set forth in Section 7.2(a) or (b) or
Section 7.3(a) or (b), as the case may be, not to be satisfied at the Closing
Date and (ii) has not been, or cannot be, cured within thirty (30) days after
written notice, describing such breach or default in reasonable detail, is given
by the terminating party to the breaching or defaulting party.

                                       25

<PAGE>

     SECTION 8.2 Effect of Termination. If this Agreement is terminated, no
party hereto (or any of its Affiliates, directors, officers, representatives or
agents) will have any Liability or further obligation to any other party to this
Agreement, except for (1) obligations which survive termination as expressly
provided for in Section 9.1 and (2) liabilities or obligations arising out of or
related to any knowing, willful or intentional breach of this Agreement prior to
such termination.

                                   ARTICLE IX
                            SURVIVAL; INDEMNIFICATION

     SECTION 9.1 Survival.

     (a) The representations or warranties of the parties in this Agreement will
survive the Closing until two (2) years after the Closing Date; provided that
(i) the representations and warranties of Sellers set forth in Section 4.1(g)
and the representations and warranties of Parent set forth in Article VI shall
survive for the applicable statutory period, and (ii) the representations and
warranties of Sellers set forth in Section 4.1(a), 4.1(b), 4.1(f), 4.1(i),
4.1(j) and 4.1(k) shall survive indefinitely.

     (b) No agreement or covenant in this Agreement will survive the Closing
Date, other than (i) the covenants in Section 5.1 (Conduct of Business) and 5.2
(Certain Changes) which shall survive until one year after the Closing Date and
(ii) the covenants set forth in Sections 2.3 (Purchase Price; Purchase Price
Adjustment), 2.4 (Allocation of Purchase Price), 5.5 Additional Instruments),
5.6 (Marks; Branding), Article VI (Taxes), Section 8.2 (Effect of Termination),
this Article IX (Survival; Indemnification) and Sections 10.6 (Governing Law)
and 10.7 (Waiver of Jury Trial).

     (c) No claim for indemnification pursuant to this Article IX for breach of
any representation, warranty or covenant may be brought after the date on which
such representation, warranty or covenant no longer survives; provided, that if
any reasonably specific indemnification claim is validly made prior to the
termination of the applicable survival period, the indemnifying party's
obligation hereunder with respect to such indemnification claim shall survive
until such claim has been finally resolved.

     SECTION 9.2 Indemnification by Sellers. Each Seller agrees, jointly and
severally, to indemnify the Purchaser, and each of its officers, directors,
employees, equity holders, attorneys, agents and Affiliates against and agrees
to hold each of them harmless from, any and all damage, loss, Liability,
expense, judgment, settlement, claim, cost or penalty (including reasonable
expenses of investigation and reasonable attorneys' fees and expenses)
(collectively, "Losses") incurred or suffered by the Purchaser or any of their
respective officers, directors, employees, equity holders, attorneys, agents or
Affiliates, whether or not resulting from a third party claim, arising out of or
relating to or resulting from, without duplication, (1) any breach of a
representation or warranty of any Seller contained in this Agreement or in any
certificate delivered by any Seller pursuant to this Agreement, (2) any breach
of an agreement or covenant made by any Seller in this Agreement, (3) any
inaccuracy in any certificate or instrument delivered by any Seller to the
Purchaser pursuant to this Agreement, (4) any Seller's use or

                                       26

<PAGE>

operation of any Acquired Assets prior to the Closing, including any act or
omission of any Seller, any of their respective officers, directors, employees,
attorneys, agents or Affiliates relating thereto, (5) any failure of any Seller,
or any of their respective Affiliates to comply with any applicable "bulk sales"
or similar Requirement of Law in connection with the consummation of the
transactions contemplated by this Agreement, or (6) Sellers' actions or
omissions relating to any accounts and/or receivables which are not Eligible
Accounts or Eligible Receivables. Notwithstanding the foregoing, the Purchaser
and its Affiliates will not be entitled to indemnity pursuant to this Section
9.2 (i) in respect of any individual Action or individual claim, fact or
occurrence or any series of related Actions, claims, facts or occurrences
(including any class action), until Losses in respect of such individual or
related Actions, claims, facts or occurrences are greater on a cumulative basis
than the Indemnity Deductible or (ii) for any Losses, until the aggregate amount
of such Losses incurred or suffered by the Purchaser or any of its Affiliates
exceeds on a cumulative basis the Indemnity Deductible, in which case the
Purchaser and its Affiliates shall be entitled to indemnification for the full
amount of such Losses in excess of such Indemnity Deductible; provided that in
no event will Purchaser and its Affiliates be entitled to indemnity for Losses
pursuant to this Section 9.2 to the extent that the amount of Losses, in the
aggregate, incurred or suffered by the Purchaser or any of its Affiliates
exceeds the Indemnity Cap.

     SECTION 9.3 Indemnification by the Purchaser. The Purchaser agrees to
indemnify each Seller, and each of their respective officers, directors,
employees, equity holders, attorneys, agents and Affiliates against, and agrees
to hold each of them harmless from, any and all Losses incurred or suffered by a
Seller or any Seller's officers, directors, employees, equity holders,
attorneys, agents or Affiliates, whether or not resulting from a third party
claim, arising out of, relating to or resulting from, without duplication, (1)
any breach of a representation or warranty of the Purchaser contained in this
Agreement or in any certificate delivered by the Purchaser pursuant to this
Agreement, (2) any breach of an agreement or covenant made by the Purchaser in
this Agreement, (3) any inaccuracy in any certificate or instrument delivered by
the Purchaser to any Seller pursuant to this Agreement, (4) any Assumed
Liability or any Liability or obligation of Purchaser to any third party arising
or to be paid, performed or discharged after the Closing Date, (5) Purchaser's
use and operation of the Acquired Assets from and after the Closing Date,
including any act or omission of Purchaser or any of Purchaser's officers,
directors, employees, agents, or Affiliates relating thereto, (6) any failure of
Purchaser or any of its Affiliates to comply with any applicable "bulk sales" or
similar Requirement of Law in connection with the consummation of the
transactions contemplated by this Agreement, (7) the Purchaser's actions or
omissions relating to any Acquired Assets which are accounts and/or receivables
which are not Eligible Accounts, or (8) any violation or alleged violation of
any federal, state, local or municipal law or regulation with respect to the
Acquired Assets or the Assumed Liabilities. Notwithstanding the foregoing, the
Sellers and their respective Affiliates will not be entitled to indemnity
pursuant to this Section 9.3 (i) in respect of any individual Action or
individual claim, fact or occurrence or any series of related Actions, claims,
facts or occurrences (including any class action), until Losses in respect of
such individual or related Actions, claims, facts or occurrences are greater on
a cumulative basis than the Indemnity Deductible or (ii) for any Losses, until
the aggregate amount of such Losses incurred or suffered by any Seller(s) or any
of their respective Affiliates exceeds on a cumulative basis the Indemnity
Deductible, in which case the Sellers and their respective Affiliates shall be
entitled to

                                       27

<PAGE>

indemnification for the full amount of such Losses in excess of such Indemnity
Deductible; provided that in no event will Sellers and their respective
Affiliates be entitled to indemnity for Losses pursuant to this Section 9.3 to
the extent that the amount of Losses, in the aggregate, incurred or suffered by
the Sellers or any of their respective Affiliates exceeds the Indemnity Cap.

     SECTION 9.4 Notice, Settlements and Other Matters.

     (a) A party seeking indemnification pursuant to Section 9.2 or 9.3 (an
"Indemnified Party") must give prompt written notice to the party from whom such
indemnification is sought (the "Indemnifying Party") of the assertion of a claim
for indemnification or the assertion or commencement of any Action, in respect
of which indemnity may be sought hereunder specifying in reasonable detail the
individual items of such Losses including the amount, the date each such item
was paid, or properly accrued or arose, and the specific details of the breach
of representation, warranty or covenant or other claim or matter to which such
item is related. Notwithstanding the foregoing, the failure of the Indemnified
Party to furnish the written notice referred to in the preceding sentence in a
prompt manner shall not affect its right to indemnification and will not relieve
the Indemnifying Party of any Liability it may have to the Indemnified Party,
except to the extent that the Indemnifying Party's right to defend the matter is
materially and irrevocably prejudiced by such failure to give prompt notice. In
the event that any third party claim is made against the Indemnified Party and
the Indemnified Party notifies the Indemnifying Party of the commencement
thereof, the Indemnifying Party may, subject to Section 9.4(b), elect at any
time to negotiate a settlement or a compromise of such Action or to defend such
Action, in each case at its sole cost and expense and with its own counsel
reasonably acceptable to the Indemnified Party, provided, however that any such
settlement or compromise may only be for the payment of money damages, unless
with the prior written consent of the Indemnified Party. If, within thirty (30)
days of receipt from an Indemnified Party of the notice referred to above the
Indemnifying Party (i) advises the Indemnified Party in writing that it will not
elect to defend, settle or otherwise compromise or pay such Action or (ii) fails
to make such an election in writing, the Indemnified Party may (subject to the
Indemnifying Party's continuing right of election in the preceding sentence), at
its option, defend, settle, compromise or pay such Action; provided that any
such settlement or compromise shall be permitted hereunder only with the written
consent of the Indemnifying Party, which consent shall not be unreasonably
withheld. Unless and until the Indemnifying Party makes an election in
accordance with this Section to defend, settle, compromise or pay such Action or
claim, all of the Indemnified Party's reasonable costs arising out of the
defense, settlement, compromise or payment thereof will be Losses subject to
indemnification by the Indemnifying Party. Each Indemnified Party shall make
available to the Indemnifying Party all information reasonably available to such
Indemnified Party relating to such Action, provided the Indemnifying Party has
elected to defend, settle or otherwise compromise or pay such Action. If the
Indemnifying Party elects to defend any such Action, the Indemnified Party may
participate in such defense with counsel of its choice at the Indemnified
Party's sole cost and expense, unless (i) the employment of such counsel has
been authorized in writing by the Indemnifying Party, (ii) the Indemnifying
Party has not employed counsel to take charge of the defense within twenty (20)
days after delivery of the applicable notice, or having elected to assume such
defense, thereafter ceases to diligently pursue its defense of such Action, or
(iii) the Indemnified Party has reasonably concluded that there may be

                                       28

<PAGE>

defenses available to it, that are different from or additional to those
available to the Indemnifying Party (in which case the Indemnifying Party shall
not have the right to direct the defense of such Action on behalf of the
Indemnified Party), in any of which event attorney's fees and expenses shall be
borne by the Indemnifying Party.

     (b) The Indemnified Party will have the right to reject any settlement
approved by the Indemnifying Party if the Indemnified Party is not fully and
unconditionally released from any Liability resulting from that claim or is
required to pay any costs, expenses or damages to any Person as a result of the
Action that are not covered by and paid or payable pursuant to the indemnity
provided herein. The Indemnified Party will not have the right to settle any
third party Action without the written consent of the Indemnifying Party if the
Indemnifying Party is actively contesting such Action in good faith and has
assumed the defense of such Action from the Indemnified Party or if the period
for determining whether or not to assume the defense of such Action from the
Indemnified Party has not expired.

     (c) In calculating the amount of any Losses of an Indemnified Party under
this Article IX, there will be subtracted the amount of any (1) insurance
proceeds (net of Taxes actually incurred, and other than proceeds received
through self-insurance or insurance provided by Affiliates of such Indemnified
Party) actually received by the Indemnified Party with respect to such Losses
and (2) third-party payments actually received by the Indemnified Party with
respect to such Losses. In the event that the Indemnifying Party reimburses the
Indemnified Party for any Losses prior to the occurrence of any events
contemplated by clauses (1) or (2) above, the Indemnified Party will remit to
the Indemnifying Party any such amounts that the Indemnified Party subsequently
receives or realizes with respect to such Losses. Upon the payment in full of
any claim hereunder, the Indemnifying Party will be subrogated to the rights of
the Indemnified Party against any Person with respect to the subject matter of
such claim.

     (d) Without limitation of their respective rights and obligations as set
forth elsewhere in this Article IX, and subject to the procedures for
indemnification claims set forth in this Article IX, the Indemnified Party will
act in good faith, will use commercially reasonable efforts to mitigate any
Losses, will use similar discretion in the use of personnel and the incurring of
expenses as the Indemnified Party would use if the Indemnified Party was engaged
and acting entirely at its own cost and for its own account, and will consult
regularly with the Indemnifying Party regarding the conduct of any Actions or
the taking of any action for which indemnification may be sought.

     (e) NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, THE
INDEMNIFICATION PROVIDED FOR HEREIN SHALL NOT COVER, AND IN NO EVENT SHALL ANY
PARTY HERETO BE LIABLE FOR, ANY INDIRECT DAMAGES, INCLUDING CONSEQUENTIAL,
INCIDENTAL, EXEMPLARY OR SPECIAL DAMAGES, OR PUNITIVE DAMAGES OR IN THE CASE OF
ANY "PUTATIVE DAMAGES," OR FOR ANY INDEMNIFIED PARTY'S NEGLIGENCE OR WILLFUL
MISCONDUCT.

     (f) BANK'S TOTAL CUMULATIVE LIABILITY TO BLAIR FOR ALL DAMAGES FOR ANY
CAUSE WHATSOEVER, SHALL NOT EXCEED THE INDEMNITY CAP

                                       29

<PAGE>

PROVIDED, HOWEVER, THAT THIS LIMITATION SHALL NOT APPLY WITH RESPECT TO BANK'S
INTENTIONAL BREACH OF THIS AGREEMENT.

     (g) BLAIR'S TOTAL CUMULATIVE LIABILITY TO BANK FOR ALL DAMAGES FOR ANY
CAUSE WHATSOEVER, SHALL NOT EXCEED THE INDEMNITY CAP PROVIDED, HOWEVER, THAT
THIS LIMITATION SHALL NOT APPLY WITH RESPECT TO BLAIR'S INTENTIONAL BREACH OF
THIS AGREEMENT

     (h) After the Closing Date, other than as provided in Section 2.3 and
except with respect to claims based on fraud and/or claims seeking equitable
remedies, this Article IX will constitute the Sellers' and the Purchaser's
exclusive remedy for any of the matters addressed herein or other claim arising
out of or relating to this Agreement.

                                    ARTICLE X
                                  MISCELLANEOUS

     SECTION 10.1 Notices. All notices and other communications by the Purchaser
or the Sellers hereunder will be in writing to the other party and will be
deemed to have been duly given when delivered in person, when received via
facsimile or overnight courier, or when posted by United States registered or
certified mail, with postage prepaid, addressed as follows:

          if to the Purchaser to:

               World Financial Capital Bank
               2855 East Cottonwood Pkwy
               Salt Lake City, UT 84121
               Attn: Marvin Corne,
                     President
               Facsimile: (801) 527-2283

          with a copy to:

               ADS Alliance Data Systems, Inc.
               800 Tech Center Drive
               Gahanna, OH 43230
               Attention: Karen A. Morauski,
                          Vice President and Counsel
               Facsimile: (614) 944-5801

                                       30

<PAGE>

          if to the Sellers, to:

               c/o Blair Corporation
               220 Hickory Street
               Warren, PA 16366
               Attention: Bryan Flanagan,
                          Chief Financial Officer
               Facsimile: (814) 726-6123

          with a copy to:

               Patton Boggs LLP
               2550 M Street, N.W.
               Washington, DC 20037
               Attention: John H. Vogel, Esq.
                          Philip G. Feigen, Esq.
               Facsimile: (212) 457-6315

Notices and other communications may also be sent to such other address or
addresses as the Purchaser or the Sellers may from time to time designate by
notice as provided herein, except that notices of change of address will be
effective only upon receipt.

     SECTION 10.2 Expenses.

     (a) Except as otherwise provided herein, all legal and any other
third-party costs and expenses incurred in connection herewith and the
transactions contemplated by this Agreement will be paid by the party incurring
such expenses, except that all fees or other amounts payable to any Governmental
Authority in connection with any Requisite Regulatory Approval shall be paid by
the Purchaser.

     (b) Collection efforts and related expenses on all Eligible Accounts made
or incurred by the Sellers prior to the Closing Date will be the responsibility
of the Sellers, and all monies collected thereon prior to the Closing Date shall
be retained by the Sellers.

     (c) The Purchaser shall be responsible for all fees of the rating agencies
in connection with confirming ratings and providing approvals for the
contemplated assumptions by the Purchaser.

     SECTION 10.3 Successors and Assigns. This Agreement will be binding upon
and will inure to the benefit of the parties and their respective successors and
permitted assigns. This Agreement and the rights and obligations hereunder may
not be assigned by any party to any Person without the prior written consent of
the other party hereto, and any purported assignment without such consent shall
be void; provided, however, that the Purchaser may assign its rights to purchase
all or any portion of the Acquired Assets hereunder to one or more of its
Affiliates.

                                       31

<PAGE>

     SECTION 10.4 Entire Agreement; Amendment; Waiver. This Agreement, including
the Annexes and Schedules hereto and thereto, embody the entire agreement of the
parties hereto with respect to the subject matter hereof and supersede all prior
agreements with respect thereto, other than the Confidentiality Agreement. No
representation, warranty, inducement, promise, understanding or condition not
set forth in this Agreement (or the other documents referred to in the preceding
sentence) has been made or relied on by any party in entering into this
Agreement. This Agreement may be amended, and any provision hereof waived, but
only in writing signed by the party against whom such amendment or waiver is
sought to be enforced.

     SECTION 10.5 Counterparts. This Agreement may be executed in two or more
counterparts any of which may be delivered by facsimile transmission and all of
which will together constitute one and the same instrument.

     SECTION 10.6 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE
TO ITS CONFLICT OF LAWS PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     SECTION 10.7 WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY LAW,
EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT.

     SECTION 10.8 Severability. In case any one or more of the provisions
contained herein will be invalid, illegal or unenforceable in any respect under
any law, the validity, legality and enforceability of the remaining provisions
contained herein will not in any way be affected or impaired thereby.

     SECTION 10.9 Public Announcement. Except for any notice which is required
by law or regulation, each of the Purchaser, on the one hand, and each Seller,
on the other hand, agrees that it will not issue a press release, make any other
public statement or make any statement to the employees with respect to the
transactions contemplated by this Agreement without the prior written consent of
the other, which consent will not be unreasonably withheld or delayed. Each of
the Purchaser, on the one hand, and each Seller, on the other hand, agrees, if
possible, to notify and consult with the other at least one Business Day in
advance of filing any notice required by law or regulation.

     SECTION 10.10 Third-Party Beneficiaries. Nothing in this Agreement,
expressed or implied, will confer on any Person, other than the parties hereto
or their respective successors, any rights, remedies, obligations or
liabilities; provided that the provisions of Article IX will inure to the
benefit of the Indemnified Parties.

     SECTION 10.11 Further Assurances. Each of the parties hereto shall,
whenever and as often as reasonably requested to do so by another party hereto,
execute, acknowledge and deliver

                                       32

<PAGE>

any and all such other and further acts, assignments, endorsements, transfers
and any instruments of further assurance, approvals and consents as are
necessary or proper in order to complete, ensure and perfect (i) the Purchase
and Assumption as contemplated hereby, and (ii) the consummation of the other
transactions contemplated hereby.

                         (Signature block on next page.)

                                       33

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been executed on behalf of each of
the parties hereto as of the day and year first above written.

PURCHASER:

WORLD FINANCIAL CAPITAL BANK

By: /s/ MARVIN H. CORNE
    ---------------------------------
Name: Marvin H. Corne
      -------------------------------
Title: President
       ------------------------------

SELLERS

BLAIR CORPORATION

By: /s/ BRYAN J. FLANAGAN
    ---------------------------------
Name: Bryan J. Flanagan
      -------------------------------
Title: Senior Vice President and
       Chief Financial Officer
       ------------------------------

JLB SERVICE BANK

By: /s/ STEPHEN P. WIEDMAIER
    ---------------------------------
Name: Stephen P. Wiedmaier
      -------------------------------
Title: President and Chief
       Executive Officer
       ------------------------------

BLAIR CREDIT SERVICES CORPORATION

By: /s/ STEPHEN P. WIEDMAIER
    ---------------------------------
Name: Stephen P. Wiedmaier
      -------------------------------
Title: President
       ------------------------------

BLAIR FACTORING COMPANY

By: /s/ RANDALL W. WEIDERT
    ---------------------------------
Name: Randall W. Weidert
      -------------------------------
Title: President

                                       34

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