Document:

exv10w8

Exhibit
10.8

LEASE AGREEMENT

[7401 Boone Avenue North, Brooklyn Park, MN]

     This Lease is made and entered into as of the Effective Date by and between IRET PROPERTIES, A
NORTH DAKOTA LIMITED PARTNERSHIP, as Landlord, and AM RETAIL GROUP, INC., a Delaware corporation,
as Tenant.

DEFINITIONS

     Except as otherwise specifically defined in this Lease, the capitalized terms used in this
Lease have the meanings ascribed to them on Exhibit 1.

BASIC TERMS

     The following Basic Terms are governed by the particular sections in this Lease pertaining to
the following information:

	 	 	 	 	 
	1.

	 	Premises:
	 	Suite A, consisting of approximately 155,026
square feet of the Building located at 7401
Boone Avenue North, Brooklyn Park, Minnesota.
The Premises are depicted on attached Exhibit
2.1 (first floor) and Exhibit 2.2 (mezzanine).
As of the Effective Date, the initial
Premises will consist of: (a) 1,618 square
feet of first floor entry space; (b) 97,011
square feet of first floor warehouse space;
(c) 29,922 square feet of mezzanine office
space; and (d) 26,475 square feet of mezzanine
warehouse space.
	 
	 	 	 	 
	2.

	 	Lease Term:
	 	36 full calendar months (Section 1.2.1).
	 
	 	 	 	 
	3.

	 	Commencement Date:
	 	The first to occur of: (1) the first Business
Day following Substantial Completion of the
Tenant Improvements (Section 17.1); or (2)
June 1, 2009.
	 
	 	 	 	 
	4.

	 	Basic Rent:	 	 

	 	 	 	 	 	 	 	 	 
	Months	 	Annualized	 	Monthly
	1-12
	 	$579,797.24 ($3.74/sf)	 	$	48,316.44	 
	13-24
	 	$596,850.10 ($3.85/sf)	 	$	49,737.51	 
	25-36
	 	$615,453.22 ($3.97/sf)	 	$	51,287.77	 
	 
	 	 	 	 	 	 	 	 
	Extension Term:	 	(Section 1.2.4)

	 	 	 	 	 
	5.

	 	Tenant’s Share of
Expenses Percentage:
	 	37.864%
	 
	 	 	 	 
	6.

	 	Property Manager:
	 	IRET Properties, a North Dakota Limited Partnership

10050 Crosstown Circle, Suite 105

Eden Prairie, MN 55344

Telephone: (952) 401-6600
	 
	 	 	 	 
	7.

	 	Rent Payment Address:
	 	IRET Properties, a North Dakota Limited Partnership

Attn: PM Accounting (GL#1233)

PO Box 1988 (regular mail)

12 South Main Street (overnight delivery)

Minot, ND 58701

 

 

	 	 	 	 	 
	8.

	 	Address of Landlord
for Notices:
	 	IRET Properties, a North Dakota Limited Partnership

Attn: General Counsel

PO Box 1988 (regular mail)

12 South Main Street (overnight delivery)

Minot, ND 58701
	 
	 	 	 	 
	 

	 	       With a copy to:
	 	Property Manager at the address described in Section 6
of the Basic Terms.
	 
	 	 	 	 
	9.

	 	Address of Tenant
for Notices:
	 	AM Retail Group, Inc.

Attn: Mr. Randy Roland

7401 Boone Ave N, Suite A

Brooklyn Park, MN 55428
	 
	 	 	 	 
	10.

	 	Brokers:
	 	None (Landlord’s Broker).

None (Tenant’s Broker).

(Section 18.10)
	 
	 	 	 	 
	11.

	 	Security Deposit:
	 	None.
	 
	 	 	 	 
	12.

	 	Permitted Use:
	 	Tenant shall use the Premises only for general
office, warehouse and distribution purposes,
together with all uses which are incidental or
ancillary to any such permitted primary uses,
and not for any other purpose (Section 4.1).
	 
	 	 	 	 
	13.

	 	Extension Option:
	 	1 option of 3 years, on advance written notice,
as set forth in Section 1.2.4.

ARTICLE 1

LEASE OF PREMISES AND LEASE TERM

     1.1. Premises. In consideration of the mutual covenants this Lease describes, Landlord leases
the Premises to Tenant and Tenant leases the Premises from Landlord, subject to the terms,
covenants and conditions set forth in this Lease. The rentable area of the Premises is the
rentable area specified in the Basic Terms. In the event that a measurement of the Premises by a
licensed architect retained by Landlord shows that the rentable area of the Premises differs from
the rentable area specified in the Basic Terms, then Landlord and Tenant shall amend this Lease
accordingly; provided, however, that any such amendment will operate prospectively only. Landlord
and Tenant will not make any retroactive adjustments to Rent payments on account of any difference
between the rentable area of the Premises specified in the Basic Terms and the rentable area of the
Premises as may be determined after the Effective Date.

     1.2. Term, Delivery and Commencement.

          1.2.1. Commencement and Expiration of Term. The Term of this Lease is the period stated in
the Basic Terms. The Term shall commence on the Commencement Date and shall end on the last day of
the last calendar month of the Term.

          1.2.2. Tender of Possession. The parties acknowledge that Tenant is already in possession of
the Premises pursuant to a prior sublease that will be terminated by this Lease as of midnight of
the day before the Commencement Date of this Lease (“Sublease Termination Date”). Landlord
expressly acknowledges and agrees that any obligations and liabilities under the prior sublease
will cease to accrue as of the Sublease Termination Date and, within 20 days after such date,
Landlord will refund to Tenant any prepaid amounts under the prior sublease, prorated as of the
Sublease Termination Date, as well as the security deposit under the prior sublease.

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          1.2.3. Commencement Date Memorandum. Within a reasonable time after the Commencement Date,
Landlord will deliver to Tenant a commencement date memorandum, in the specific form attached as
Exhibit 1.2.3 (the “Commencement Date Memorandum”), with all blanks completed in accordance
with this Lease. Tenant, within 10 Business Days after receipt from Landlord, shall execute and
deliver to Landlord the Commencement Date Memorandum. Tenant’s failure to execute and deliver to
Landlord the Commencement Date Memorandum shall not affect any obligation of Tenant under this
Lease. If Tenant does not timely execute and deliver the Commencement Date Memorandum, then
Landlord and any prospective purchaser or lender may conclusively rely on the information contained
in the unexecuted Commencement Date Memorandum Landlord delivered to Tenant.

          1.2.4. Option to Extend. Tenant shall have the right, to be exercised as hereinafter
provided, to extend the term of this Lease for 1 period of 3 years (“Extension Term”), on the
following terms and conditions and subject to the limitations hereinafter set forth. The Extension
Term shall be upon the same terms, covenants and conditions as in this Lease, except that Basic
Rent shall be the Fair Market Basic Rent for such space on the date such Extension Term shall
commence. Tenant shall notify Landlord of its desire to extend the term for the Extension Term by
notifying Landlord in writing (the “Extension Notification”) at least 9 months prior to the
commencement date of the Extension Term; if Tenant fails to timely deliver the Extension
Notification to Landlord, then Tenant’s option to extend shall automatically terminate. Upon
Landlord’s receipt of the Extension Notification, Landlord and Tenant shall make a good faith
effort to agree upon the Fair Market Basic Rent of the Premises for the Extension Term. “Fair
Market Basic Rent” shall mean that net annual basic rent per rentable square foot of the Premises
as of the commencement of the Extension Term that a willing credit-worthy tenant would pay and that
a willing landlord would accept in an arms length bona fide negotiation for space comparable to the
Premises in condition, quality, size and location, with neither party under a compulsion for the
appropriate term. In determining “Fair Market Basic Rent,” the parties shall consider rental
rates, rent concessions, and other economic terms that a comparable landlord, acting reasonably and
in good faith, is then offering or would then offer, to a lessee similar to Tenant for a similar
term. In the event that Landlord and Tenant fail to agree upon the Fair Market Basic Rent within
90 days of Landlord’s receipt of the Extension Notification, then Tenant’s extension right shall
automatically terminate. Tenant’s option to extend as set forth in this Section shall be
contingent upon this Lease being in full force and effect and Tenant not being in default in the
performance of any of the terms, covenants and conditions herein contained in respect to a matter
as to which notice of default has been given hereunder which has not been remedied within the time
limited in this Lease.

     1.3. Landlord’s Right to Construct Internal Hallway. Landlord reserves the right, to be
exercised in Landlord’s sole but reasonable discretion at any time during the Term, but subject to
the provisions of Section 9.3 of this Lease, to construct a new hallway through the Premises as
shown on attached Exhibit 1.3. If Landlord exercises such right, then the construction
shall be completed at Landlord’s sole cost and expense and shall not be included in Operating
Expenses. This Lease shall automatically terminate as to the portion of the Premises used to
construct the hallway as of the date that Landlord takes possession to commence the conversion.
Landlord will, at its sole cost and expense, restore the remaining portion of the Premises to a
complete architectural unit with all commercially reasonable diligence and speed and will reduce
the Basic Rent for the period after the date Landlord takes possession to a sum equal to the
product of the Basic Rent provided for in this Lease multiplied by a fraction, the numerator of
which is the rentable area of the Premises after the hallway is constructed and after Landlord
restores the Premises to a complete architectural unit (as documented by a certified measurement by
a licensed architect retained by Landlord), and the denominator of which is the rentable area of
the Premises prior to the hallway construction. Landlord will also equitably adjust Tenant’s Share
of Expenses Percentage for the same period, to account for the reduction in the rentable area of
the Premises or the Building resulting from the construction of the hallway.

     1.4. Quiet Enjoyment. Subject to the terms of this Lease, Landlord covenants that if Tenant
timely (a) pays all Rent and other charges provided for herein, (b) performs all of its obligations
provided for herein, and (c) observes all of the other provisions hereof, then Tenant shall at all
times during the Term peaceably and quietly have, hold and enjoy the Premises, without interruption
or disturbance by Landlord, or anyone claiming through or under Landlord.

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ARTICLE 2

RENT

     2.1. Basic Rent. Tenant will pay Basic Rent in monthly installments to Landlord, in advance,
without offset or deduction, commencing on the Commencement Date and continuing on the first day of
each and every calendar month after the Commencement Date during the Term. Tenant will make all
Basic Rent payments to Landlord at the address specified in the Basic Terms or at such other place
or in such other manner as Landlord may from time to time designate in writing. Tenant will make
all Basic Rent payments without Landlord’s previous demand, invoice or notice for payment.
Landlord and Tenant will prorate, on a per diem basis, Basic Rent for any partial month within the
Term.

     2.2. Additional Rent. Article 3 of this Lease requires Tenant to pay certain Additional Rent
pursuant to estimates Landlord delivers to Tenant. Tenant will make all payments of estimated
Additional Rent in accordance with Article 3 without deduction or offset and without Landlord’s
previous demand, invoice or notice for payment. Tenant will pay all other Additional Rent
described in this Lease that is not estimated under Article 3 within 15 days after receiving
Landlord’s invoice for such Additional Rent. Tenant will make all Additional Rent payments to the
same location and, except as set forth in the preceding sentence, in the same manner as Tenant’s
payments of Basic Rent.

     2.3. Delinquent Rental Payments. If Tenant does not pay any installment of Basic Rent or any
Additional Rent within 5 Business Days after the date the payment is due, Tenant will pay Landlord
an additional amount equal to the greater of (a) interest on the delinquent payment calculated at
the Maximum Rate from the date when the payment is due through the date the payment is made, or
(b) a late payment charge equal to 5% of the amount of the delinquent payment. Landlord’s right to
such compensation for any such delinquency is in addition to all of Landlord’s rights and remedies
under this Lease, at law or in equity. Notwithstanding anything in this Section to the contrary,
Landlord agrees that (i) Landlord shall only impose the interest or the late payment charge on
delinquent amounts if Tenant fails to make timely payment of Rent on more than 1 occasion in any
12-month period, and (ii) that the late payment charge for a second failure in any 12-month period
shall not exceed $1,000.00.

     2.4. Independent Obligations. Notwithstanding any contrary term or provision of this Lease,
Tenant’s covenant and obligation to pay Rent is independent from any of Landlord’s covenants,
obligations, warranties or representations in this Lease.

ARTICLE 3

PROPERTY TAXES AND OPERATING EXPENSES

     3.1. Payment of Expenses. Tenant will pay, as Additional Rent and in the manner this
Article 3 describes, Tenant’s Share of Expenses due and payable during any calendar year of the
Term. Landlord will prorate Tenant’s Share of Expenses due and payable during the calendar years
in which the Lease commences and terminates as of the Commencement Date or termination date, as
applicable, on a per diem basis based on the number of days of the Term within such calendar year.

     3.2. Estimation of Tenant’s Share of Expenses. Landlord will deliver to Tenant a written
estimate of the following for each calendar year of the Term: (a) Property Taxes, (b) Operating
Expenses, (c) Tenant’s Share of Expenses Percentage and (d) the annual and monthly Additional Rent
attributable to Tenant’s Share of Expenses.

     3.3. Payment of Estimated Tenant’s Share of Expenses. Tenant will pay the amount Landlord
estimates as Tenant’s Share of Expenses under Section 3.2 for each calendar year of the Term in
equal monthly installments, in advance, on the first day of each month during such calendar year.
If Landlord has not delivered the estimates to Tenant by the first day of January of the applicable
calendar year, Tenant will continue paying Tenant’s Share of Expenses based on Landlord’s estimates
for the previous calendar year. When Tenant receives Landlord’s estimates for the current calendar
year, Tenant will pay the estimated amount (less amounts Tenant paid to Landlord in accordance with
the immediately preceding sentence) in equal monthly installments over the balance of such calendar
year, with the number of installments being equal to the number of full calendar months remaining
in such calendar year.

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     3.4. Re-Estimation of Expenses. Landlord may re-estimate Expenses from time to time during
the Term. In such event, Landlord will re-estimate the monthly Additional Rent attributable to
Tenant’s Share of Expenses to an amount sufficient for Tenant to pay the re-estimated monthly
amount over the balance of the calendar year. Landlord will notify Tenant of the re-estimate and
Tenant will pay the re-estimated amount in the manner provided in the last sentence of Section 3.3.

     3.5. Confirmation of Tenant’s Share of Expenses. Within 60 days after the end of each
calendar year within the Term, Landlord will determine the actual amount of Expenses and Tenant’s
Share of Expenses for the expired calendar year and deliver to Tenant a written statement of such
amounts. Tenant, at Tenant’s sole cost and expense, upon prior written notice of at least 15 days,
and during regular business hours at the location where Landlord or its Property Manager maintains
the applicable records, may review Landlord’s method of calculating Tenants Share of Expenses,
along with the underlying documents used by Landlord in such calculation. If Tenant paid less than
the actual amount of Tenant’s Share of Expenses specified in the statement, Tenant will pay the
difference to Landlord as Additional Rent in the manner Section 2.2 describes. If Tenant paid more
than the actual amount of Tenant’s Share of Expenses specified in the statement, then Landlord (at
Landlord’s option) will either (a) promptly refund the excess amount to Tenant, or (b) credit the
excess amount against Tenant’s next due monthly installment or installments of estimated Additional
Rent. If Landlord is delayed in delivering such statement to Tenant, such delay does not
constitute Landlord’s waiver of Landlord’s rights under this section or release Tenant from any of
its obligations hereunder. Tenant acknowledges that, for purposes of accounting for Expenses,
Landlord may close a “calendar” year on December 20th of that year; if Landlord actually
does so, then Landlord’s determination of the actual amount of Expenses for the following calendar
year will include any Expenses attributable to the period of December 21st through
December 31st of the previous calendar year.

     3.6. Tenant’s Inspection and Audit Rights. If (i) Tenant is not in default in the performance
of any of its obligations under this Lease beyond any applicable period for cure, and if (ii)
Tenant disputes Landlord’s determination of the actual amount of Expenses or Tenant’s Share of
Expenses for any calendar year, and if (iii) Tenant delivers to Landlord written notice of the
dispute within 60 days after Landlord’s delivery of the statement of such amount under Section 3.5,
then Tenant at Tenant’s sole cost and expense (except as otherwise provided herein), upon prior
written notice and during regular business hours at the location where Landlord or its Property
Manager maintains the applicable records may cause a qualified financial officer or qualified
accountant reasonably acceptable to Landlord to audit Landlord’s records relating to the disputed
amounts. Tenant’s objection to Landlord’s determination of Expenses or Tenant’s Share of Expenses
shall be deemed withdrawn unless Tenant completes and delivers the audit to Landlord within 90 days
after the date Tenant delivers its dispute notice to Landlord under this section, provided Landlord
reasonably cooperates with the scheduling and conducting of the audit. If the audit shows that the
amount Landlord charged Tenant for Tenant’s Share of Expenses was greater than the amount this
Article 3 obligates Tenant to pay, then, unless Landlord reasonably contests the audit, Landlord
will refund the excess amount to Tenant within 10 days after Landlord receives a copy of the audit
report. If the audit shows that the amount Landlord charged Tenant for Tenant’s Share of Expenses
was less than the amount this Article 3 obligates Tenant to pay, then Tenant will pay to Landlord
within 10 days as Additional Rent the difference between the amount Tenant paid and the amount
determined in the audit. Pending resolution of any audit under this section, Tenant will continue
to pay to Landlord the estimated amounts of Tenant’s Share of Expenses in accordance with
Sections 3.3 and 3.4. If Tenant’s audit and Landlord’s review pursuant to this Section 3.6
conclusively establishes that the amount Landlord charged Tenant for Tenant’s Share of Expenses
exceeds Tenant’s Share of Expenses as determined by this Section 3.6 by more than 8%, then Landlord
shall reimburse Tenant for its actual third-party costs incurred in conducting its audit; provided,
however, that in no event shall Landlord’s obligation under this provision exceed the sum of
$5,000.00. Tenant must keep all information it obtains in any audit strictly confidential and may
only use such information for the limited purpose this section describes and for Tenant’s own
account.

     3.7. Annual Amendment to Tenant’s Share of Expenses Percentage. Notwithstanding any contrary
language in this Lease, Landlord may change Tenant’s Share of Expenses Percentage each calendar
year to the percentage Landlord calculates by dividing the total rentable area of the portion of
the Premises on the first floor of the Building by the total rentable area of the first floor of
the Building for such calendar year. Landlord and Tenant acknowledge and agree that the second
floor mezzanine portion of the Building will not be included in Landlord’s calculation of Tenant’s
Share of Expenses Percentage. Landlord will notify Tenant of such change, if

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any, at the time
Landlord delivers its estimates to Tenant under Section 3.2, which notice of change will include
the certified statement of the licensed architect as to the total rentable area of the first floor
of the Building and the total rentable area of the portion of the Premises on the first floor of
the Building.

     3.8. Landlord’s Right to Contest Property Taxes. Landlord may in its sole discretion contest
the amount or validity, in whole or in part, of any Property Taxes. Landlord may include in its
computation of Property Taxes the costs and expenses Landlord reasonably incurs in connection with
any such contest (including but not limited to reasonable attorney’s fees). Tenant may not contest
Property Taxes.

ARTICLE 4

USE

     4.1. Permitted Use. Tenant shall use the Premises only for the use specified in Item 12 of
the Basic Terms (the “Permitted Use”), and not for any other purpose. Tenant will not use the
Property or knowingly permit the Property to be used in violation of any Laws or in any manner that
would (a) cause injury or damage to the Property or to the person or property of any other tenant
on the Property; (b) cause substantial diminution in the value or usefulness of all or any part of
the Property (reasonable wear and tear excepted); or (c) constitute waste or a public or private
nuisance. Tenant will obtain and maintain, at Tenant’s sole cost and expense, all permits and
approvals required under the Laws for Tenant’s use of the Premises.

     4.2. Acceptance of Premises. Tenant acknowledges that neither Landlord nor any agent,
contractor or employee of Landlord have made any representation or warranty of any kind with
respect to the Premises, the Building, or the Property, specifically including but not limited to
any representation or warranty of suitability or fitness of the Premises, Building, or the Property
for any particular purpose. Subject only to Section 17.1 below, including without limitation
Landlord’s obligation to demise the Premises from the remainder of the Building in compliance with
applicable Laws, Tenant accepts the Premises, the Building, and the Property in an “AS IS — WHERE
IS” condition.

     4.3. Laws & Building Rules. This Lease is subject and subordinate to all Laws. Tenant shall
at all times comply with the rules and regulations for the Building set forth in Exhibit
4.3 (the “Building Rules”), and with any reasonable additions thereto and modifications thereof
adopted from time to time by Landlord of which Tenant has been given at least 10 days prior written
notice (provided no such additions or modifications to the Building Rules shall be adopted that
would materially and adversely limit Tenant’s ability to use the Premises for the Permitted Use),
and each such rule or regulation shall be deemed to be a covenant of this Lease to be performed and
observed by Tenant. In the event of any conflict between the Building Rules and this Lease, this
Lease shall control. Landlord will endeavor to include the Building Rules, as amended pursuant to
this Section 4.3, in future leases with other occupants of the Building, and will enforce the
Building Rules against all of the occupants of the Building in a nonarbitrary and nondiscriminatory
manner.

     4.4. Common Area. Landlord grants Tenant the non-exclusive right, together with all other
occupants of the Building and their agents, employees and invitees, to use the Common Area during
the Term, subject to all Laws. Landlord, at Landlord’s sole and absolute discretion (but subject
to Section 9.3 below), may make changes to the Common Area. Landlord’s rights regarding the Common
Area include without limitation the right to: (a) restrain unauthorized persons from using the
Common Area; (b) temporarily close any portion of the Common Area (i) for repairs, improvements or
Alterations, (ii) to discourage unauthorized use, (iii) to prevent dedication or prescriptive
rights, or (iv) for any other reason that Landlord reasonably deems necessary; (c) change the shape
and size of the Common Area; (d) add, eliminate or change the location of any improvements located
in the Common Area; and (e) impose and revise Building Rules in a non-arbitrary and
nondiscriminatory manner as to all Building tenants concerning use of the Common Area (including
without limitation the parking facilities).

     4.5. Signs.

          4.5.1. Building Monument Sign. Landlord shall provide Tenant with one sign on the Building’s
existing sign monument (the “Building Monument”), and Landlord hereby approves Tenant’s existing
signage on the Building Monument. If Landlord elects to modify the Building Monument, or the
signage on the Building

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Monument, then the design, materials, size, color and location of Tenant’s
sign on the Building Monument shall be determined by Landlord in its sole but reasonable
discretion, provided that Tenant’s sign shall be of comparable size and materials as other tenants’
signs. Tenant shall reimburse Landlord as Additional Rent for all costs incurred by Landlord in
maintaining Tenant’s sign on the Building Monument. Landlord reserves the right to modify the
Building Monument to accommodate additional signage.

          4.5.2. Building Exterior Sign. Tenant shall have the right to install signage on the exterior
of the East side of the Building (the “Exterior Sign”); provided, however, that (i) the design,
materials, size, color and location of the Exterior Sign shall all be subject to Landlord’s prior
written approval, which approval Landlord may withhold or condition in its sole and absolute
discretion, and (ii) Tenant shall install and maintain the Exterior Sign at all times in strict
compliance with the Laws. Notwithstanding the foregoing, Landlord hereby approves Tenant’s
existing exterior Building signage. Tenant shall be solely responsible for all costs and expenses
associated with the Exterior Sign, including without limitation all design, construction,
permitting, installation, and maintenance costs. On or before the end of the Term, Tenant shall at
its sole cost and expense remove the Exterior Sign and shall repair any damage cause by removal of
the Exterior Sign. Landlord reserves the right to grant other tenants the right to construct and
maintain signage on the exterior of the Building.

          4.5.3. Except for the signs specifically allowed in this Section 4.5 and any existing signage
required by Laws, no other sign, advertisement, graphics of any nature, or notice shall be
inscribed, painted, affixed, or displayed on the windows or exterior walls of the Premises, or on
any public area of the Building, without Landlord’s prior written consent (which consent Landlord
may withhold or condition in its sole but reasonable discretion). Landlord agrees that Tenant my
post “Help Wanted” signs and other business-related temporary signs. All permitted signs shall
comply with the Laws, and shall be installed and maintained at Tenant’s sole expense. Landlord
shall notify Tenant of any sign Landlord determines to be in violation of this Section 4.5 and, if
Tenant fails to remove such sign within 10 days, then Landlord may immediately remove at Tenant’s
sole cost and expense any sign, advertisement, graphics, or notice that violates this Section 4.5.
The rights granted to Tenant pursuant to this Section 4.5 are personal to Tenant and no subtenants
of Tenant shall have any rights under this Section 4.5.

ARTICLE 5

HAZARDOUS MATERIALS

     5.1. Compliance with Hazardous Materials Laws. Tenant will not cause any Hazardous Material to
be brought upon, kept or used on the Property in quantities reportable under any Hazardous
Materials Law, or in a manner or for a purpose prohibited by or that could result in liability
under any Hazardous Materials Law. Tenant, at its sole cost and expense, will comply with all
Hazardous Materials Laws and prudent industry practice relating to the presence, treatment,
storage, transportation, disposal, release or management of Hazardous Materials in, on, under or
about the Property required for Tenant’s use of the Premises and will notify Landlord of any and
all Hazardous Materials Tenant brings upon, keeps or uses on the Property (other than small
quantities of office cleaning or other office supplies as are customarily used by a tenant in the
ordinary course in a general office facility). On or before the expiration or earlier termination
of this Lease, Tenant, at its sole cost and expense, will completely remove from the Property
(regardless whether any Hazardous Materials Law requires removal), in compliance with all Hazardous
Materials Laws, all Hazardous Materials Tenant causes to be present in, on, under or about the
Property. Notwithstanding the foregoing, Tenant shall not be responsible for removal of any
Hazardous Materials existing in, on, under or about the Property prior to Tenant’s occupancy of the
Premises pursuant to the sublease described in Section 1.2.2. Tenant will not take any remedial
action in response to the presence of any Hazardous Materials in on, under or about the Property,
nor enter into any settlement agreement, consent decree or other compromise with respect to any
Claims relating to or in any way connected with Hazardous Materials in, on, under or about the
Property, without first notifying Landlord of Tenant’s intention to do so and affording Landlord
reasonable opportunity to investigate, appear, intervene and otherwise assert and protect
Landlord’s interest in the Property.

     5.2. Notice of Actions. Tenant will notify Landlord of any of the following actions affecting
Landlord, Tenant, or the Property that result from or are in any way caused by Tenant’s use of the
Property immediately after receiving notice of the same: (a) any enforcement, clean-up, removal or
other governmental or regulatory action instituted, completed or threatened under any Hazardous
Materials Law; (b) any Claim made or threatened

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by any person relating to damage, contribution,
liability, cost recovery, compensation, loss or injury resulting from or claimed to result from any
Hazardous Material; and (c) any reports made by any person, including Tenant, to any environmental
agency relating to any Hazardous Material, including any complaints, notices, warnings or asserted
violations. Tenant will also deliver to Landlord, as promptly as possible and in any event within
5 Business Days after Tenant first receives or sends the same, copies of all Claims, reports,
complaints, notices, warnings or asserted violations relating in any way to the Premises or
Tenant’s use of the Premises. Upon Landlord’s written request, Tenant will promptly deliver to
Landlord documentation acceptable to Landlord reflecting the legal and proper disposal of all
Hazardous Materials removed or to be removed from the Premises. All such documentation will list
Tenant or its agent as a responsible party and will not attribute responsibility for any such
Hazardous Materials to Landlord or Property Manager.

     5.3. Disclosure and Warning Obligations. Tenant acknowledges and agrees that all reporting
and warning obligations required under Hazardous Materials Laws resulting from or in any way
relating to Tenant’s use of the Premises or the Property are Tenant’s sole responsibility,
regardless whether the Hazardous Materials Laws permit or require Landlord to report or warn.

     5.4. Landlord Indemnification. Landlord shall indemnify, defend and hold harmless Tenant from
and against all damages (excluding consequential, punitive or similar type damages), costs, losses,
expenses (including, but not limited to, reasonable attorneys’ fees and engineering fees) arising
from or attributable to the existence of any Hazardous Materials at the Property in reportable
quantities in violation of applicable Hazardous Materials Laws to the extent caused by Landlord
provided, however, in case any claim, action, suit or proceeding shall be brought against Tenant
and such matter is subject to Landlord’s indemnification as provided above, Tenant shall promptly
notify Landlord of the same in time to avoid any prejudice to Landlord and Landlord shall have the
right to assume and control the defense thereof with counsel of its own selection, and Landlord
shall have the right to control any remediation. Landlord’s obligations under this section
include, without limitation and whether foreseeable or unforeseeable: (a) the costs of any required
repair, clean-up, detoxification or decontamination of the Premises; (b) the costs of implementing
any closure, remediation or other required action in connection therewith as stated above; and (c)
consultants’ fees, experts’ fees and response costs. The obligations of Landlord under this
section shall survive the expiration or earlier termination of this Lease.

     5.5. Tenant Indemnification. Tenant will release, indemnify, defend (with counsel reasonably
acceptable to Landlord), protect and hold harmless the Landlord Parties from and against any and
all Claims whatsoever arising or resulting, in whole or in part, directly or indirectly, from the
presence, treatment, storage, transportation, disposal, release or management of Hazardous
Materials in, on, under, upon or from the Property (including water tables and atmosphere)
resulting from or in any way caused by Tenant’s use of the Premises or the Property. Tenant’s
obligations under this section include, without limitation and whether foreseeable or
unforeseeable: (a) the costs of any required or necessary repair, clean-up, detoxification or
decontamination of the Property; (b) the costs of implementing any closure, remediation or other
required action in connection therewith as stated above; (c) the value of any loss of use and any
diminution in value of the Property; and (d) consultants’ fees, experts’ fees and response costs.
The obligations of Tenant under this section shall survive the expiration or earlier termination of
this Lease.

ARTICLE 6

UTILITIES & SERVICES

     6.1. Janitorial Service. Tenant shall provide any necessary janitorial services for the
Premises.

     6.2. Utilities. Landlord will provide electrical energy to the Premises for lighting and for
general office/warehouse/distribution use. Landlord will provide heating, ventilation and air
conditioning to the Premises sufficient to maintain, in Landlord’s reasonable judgment, comfortable
temperatures in the Premises. Tenant shall pay for all electricity, HVAC, water, and other
utilities used at the Premises. Landlord is not required to provide any heat, air conditioning,
electricity or other service in excess of that permitted by voluntary or involuntary governmental
guidelines or other Laws. Landlord agrees that gas service and electricity will be separately
metered for the Premises, and Landlord will pay and costs and expenses for such separate metering,
which costs will not be included in Expenses. Landlord has the exclusive right and discretion to
select the provider of any utility or service to the Property. No interruption in or temporary
stoppage of any of the utility

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services this Article 6 describes is to be deemed an eviction or
disturbance of Tenant’s use and possession of the Premises, nor does any such interruption or
stoppage relieve Tenant from any obligation this Lease describes, render Landlord liable for
damages, or entitle Tenant to any abatement of Rent; provided, however, that if any such
interruption or temporary stoppage is primarily caused by a negligent act or omission of Landlord,
or results from Landlord’s decision to change the provider of any utility or service to the
Property, and if the interruption or temporary stoppage continues for more than 3 consecutive
Business Days, then Rent hereunder shall abate until such interruption or temporary stoppage either
ceases or is no longer primarily caused by a negligent act or omission of Landlord or of Landlord’s
election to change service providers.

     6.3. Tenant’s Obligations. Except only as specifically set forth in this Section 6.3, Tenant
will obtain and pay for all utilities and services Tenant requires with respect to the Premises,
including but not limited to utility hook-up and connection charges. Tenant acknowledges that
electricity and natural gas for the Premises will be separately metered and separately charged, as
provided in Section 6.2 above. Following Landlord’s arranging and paying for the separate metering
of electricity and natural gas, including but not limited to any utility hook-up and connection
charges, Tenant shall be solely responsible for paying directly to the applicable utility
companies, prior to delinquency, all such separately metered or separately charged utilities. Such
separately metered or charged amounts will not be included in Operating Expenses. The costs and
expenses for water used in the Premises will be included in Operating Expenses and will not be
separately metered or separately charged. In the event any services are provided to the Premises
and to some but not all of the remainder of the Building, then Tenant shall pay its pro rata share
of the cost of providing any such services (including Landlord’s reasonable administrative and
overhead costs) as Additional Rent; Tenant’s pro rata share shall be computed by dividing the
rentable area of the Premises by the total rentable area of the portion of the Building to which
such services are provided. Notwithstanding the foregoing, if Landlord leases space in the
Building to any tenant or tenants whose use requires a disproportionate use of any utilities not
separately metered (such as a restaurant, hair salon, laundry or similar tenant), then Landlord
shall arrange for separate metering of such utilities at Landlord’s expense (not to be included as
an Expense), or at the expense of such other tenant(s).

     6.4. Tenant Devices and Communications Equipment. Tenant will not use any device or equipment
in the Premises or otherwise on the Property that causes substantial noise, odor or vibration,
without Landlord’s prior written consent (which consent Landlord may grant, withhold or condition
in its sole and absolute discretion). Tenant will not connect any device or equipment to the
Building’s electrical or plumbing systems except through the electrical and water outlets in the
Premises that were installed (or otherwise approved in writing) by Landlord. No antenna, satellite
dish, or other communications equipment shall be allowed without Landlord’s prior written consent
(which consent Landlord may grant, withhold or condition in its sole and absolute discretion). In
the event Landlord consents to Tenant’s installation of an antenna, satellite dish, or other
communications equipment on the Property (including without limitation on the roof of the
Building), then Landlord and Tenant shall execute a Communications Equipment License in form
required by Landlord in its sole but reasonable discretion. Tenant acknowledges that the
installation of any such communications equipment shall be deemed an “Alteration” subject to the
terms and conditions of Article 8 of this Lease. Landlord represents and warrants that similar
restrictions and requirements will be applied to any and all tenants of the Building and that if
another tenant causes substantial noise, odor or vibration, then Landlord will promptly exercise
commercially reasonable efforts, or cause its Property Manager to exercise commercially reasonable
efforts, to enforce the terms of such tenant’s lease such that the noise, odor or vibration ceases.

ARTICLE 7

MAINTENANCE AND REPAIR

     7.1. Landlord’s Obligations. Except as otherwise provided in this Lease, Landlord will repair
and maintain the following in good order, condition and repair (including any necessary
replacements): (a) the roof, footings, foundation, and the structural integrity of the mezzanine
and exterior and interior load-bearing walls of the Building; (b) the electrical, mechanical,
plumbing, heating and air conditioning systems located in the Building and serving the Common Area
(or otherwise used in common by all tenants of the Building); (c) the main fire panel and fire pump
serving the Building; and (d) the Common Area. Landlord’s repair and maintenance costs under this
Section 7.1 will be included in Operating Expenses. Except only as specifically set forth in this
Section 7.1, Landlord is not required to repair or maintain the electrical, mechanical, plumbing,
fire sprinkler, heating and

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air conditioning systems, facilities and components serving the
Premises; Tenant will repair and maintain such systems at Tenant’s sole cost and expense pursuant
to Section 7.2.1 below.

     7.2. Tenant’s Obligations.

          7.2.1. Maintenance of Premises. Landlord is not required to repair or maintain the Premises
or the Property (or to make any Alterations to the Premises or Property), except as otherwise
specifically provided in this Lease. Except as specifically set forth in Section 7.1, Tenant is
solely responsible for the repair, maintenance, replacement, operation, condition and management of
the Premises. Except as specifically set forth in Section 7.1, Tenant at its sole cost and expense
will keep and maintain the Premises (including without limitation all non-structural interior
portions; electrical, mechanical, plumbing, heating and air conditioning systems serving only the
Premises; fire sprinkler system components in the Premises, lighting systems; interior surfaces of
exterior walls; and interior moldings, partitions, glass, doors and ceilings) in good order,
condition and repair, reasonable wear and tear and damage from insured casualties excepted.
Tenant’s repairs will be at least equal in quality and workmanship to the original work and Tenant
will make the repairs in accordance with all Laws. Tenant will keep the Premises in a neat and
sanitary condition and will not commit any nuisance or waste in, on or about the Premises or the
Property. Tenant shall release, indemnify, protect and defend Landlord against (with counsel
reasonably acceptable to Landlord), and hold Landlord harmless from, any Claims or damages
resulting from any penetrations or perforations of the roof or exterior walls of the Building
caused or allowed by Tenant.

          7.2.2. Alterations Required by Laws. Subject to Landlord’s obligations specifically set forth
in Section 7.1 above and Section 17.1.1 below, if any governmental authority requires any
Alteration to the Building or the Premises as a result of Tenant’s particular use of the Premises
or as a result of any Alteration to the Premises made by or on behalf of Tenant, or if Tenant’s
particular use of the Premises subjects Landlord or the Property to any obligation under any Laws,
Tenant will pay the cost of all such Alterations or the cost of compliance, as the case may be. If
any such Alterations are Structural Alterations, Landlord will make the Structural Alterations;
provided, however, that Landlord may require Tenant to deposit with Landlord an amount sufficient
to pay the cost of the Structural Alterations (including, without limitation, reasonable overhead
and administrative costs). If the Alterations are not Structural Alterations, Tenant will make the
Alterations at Tenant’s sole cost and expense in accordance with Article 8.

ARTICLE 8

CHANGES AND ALTERATIONS

     8.1. Landlord Approval. Tenant will not make any Structural Alterations to the Premises or
any Alterations to the Common Area. Tenant will not make any other Alterations without Landlord’s
prior written consent, which consent Landlord shall not unreasonably withhold; provided, however,
that Landlord may condition its consent in its reasonable discretion. Notwithstanding the
foregoing, Tenant may make cosmetic and other non-Structural Alterations to the interior of the
Premises without Landlord’s prior written consent, provided that that the total cost of any such
non-Structural Alterations does not exceed $10,000 in any 12 calendar-month period. Along with any
request for Landlord’s consent, Tenant will deliver to Landlord complete plans and specifications
for the Alterations, and will identify any prospective contractors for the Alterations. If
Landlord approves the proposed Alterations, Tenant, before commencing the Alterations or delivering
(or accepting delivery of) any materials to be used in connection with the Alterations, will
deliver to Landlord for Landlord’s reasonable approval proof of insurance required by Section 8.2,
copies of all necessary permits and licenses, and such other information relating to the
Alterations as Landlord reasonably requests. Tenant will not commence the Alterations before
Landlord, in Landlord’s reasonable discretion, approves the foregoing deliveries. Tenant will
construct all approved Alterations or cause all approved Alterations to be constructed (a) promptly
by a licensed and properly bonded contractor, (b) in a good and workmanlike manner, (c) in
compliance with all Laws, (d) in accordance with all orders, rules and regulations of the Board of
Fire Underwriters having jurisdiction over the Premises and any other body exercising similar
functions, and (e) in full compliance with all of Landlord’s rules and regulations applicable to
third party contractors, subcontractors and suppliers performing work at the Property, if and to
the extent Landlord has given Tenant prior written notice of any such rules and regulations.
Notwithstanding anything in this Lease to the contrary, Landlord acknowledges and agrees that it
has reviewed and approved Tenant’s plans for relocating certain equipment and products in the
warehouse of the Building prior

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to the Commencement Date of this Lease, and such work shall not be
deemed Alterations under this Lease even if this Lease becomes effective prior to the completion of
such work.

     8.2. Tenant’s Responsibility for Cost and Insurance. Tenant will pay the cost and expense of
all Alterations, and for any painting, restoring or repairing of the Premises or the Property the
Alterations occasion. Prior to commencing the Alterations, Tenant will deliver the following to
Landlord in form and amount reasonably satisfactory to Landlord, evidence that Tenant and each of
Tenant’s contractors have in force liability insurance insuring against construction related risks,
in at least the form, amounts and coverages required of Tenant under Article 10. The insurance
policies described in the preceding sentence shall name Landlord and Property Manager (and, if
requested by Landlord, Landlord’s lender) as additional insureds.

     8.3. Construction Obligations and Ownership. Landlord may inspect construction of the
Alterations. Immediately after completing the Alterations, Tenant will furnish Landlord with
contractor affidavits, full and final notarized lien waivers and receipted bills covering all labor
and materials expended and used in connection with the Alterations, except that Tenant shall not be
required to provide such documentation for labor and/or materials for any Alteration that
collectively costs less than $3,000. Tenant will remove any Alterations Tenant constructs in
violation of this Article 8 within 30 days after Landlord’s written request and in any event prior
to the expiration or earlier termination of this Lease. All Alterations Tenant makes or installs
(excluding Tenant’s movable trade fixtures, warehouse equipment and storage racking, and other
furniture and equipment) become the property of Landlord upon installation and, unless Landlord
requires Tenant to remove the Alterations (which removal requirement must be exercised by Landlord,
if at all, at the time Landlord consents to such Alterations, or it shall be deemed waived), Tenant
will surrender the Alterations to Landlord upon the expiration or earlier termination of this Lease
at no cost to Landlord.

     8.4. Liens. Tenant will keep the Property free from any mechanics’, materialmens’, designers’
or other liens arising out of any work performed, materials furnished or obligations incurred by or
for Tenant or any person or entity claiming by, through or under Tenant. Tenant will notify
Landlord in writing at least 30 days prior to commencing any Alterations in order to provide
Landlord the opportunity to record and post notices of non-responsibility or such other protective
notices available to Landlord under the Laws. If any such liens are filed and Tenant, within 30
days after such filing, does not release the same of record or provide Landlord with a bond or
other surety satisfactory to Landlord protecting Landlord and the Property against such liens,
Landlord may, without waiving its rights and remedies based upon such breach by Tenant and without
releasing Tenant from any obligation under this Lease, cause such liens to be released by any means
Landlord deems proper, including, but not limited to, paying the claim giving rise to the lien or
posting security to cause the discharge of the lien. In such event, Tenant will reimburse
Landlord, as Additional Rent, for all amounts Landlord pays (including, without limitation,
reasonable attorneys’ fees and costs).

     8.5. Indemnification. To the fullest extent allowable under the Laws, Tenant will release,
indemnify, protect, defend (with counsel reasonably acceptable to Landlord) and hold harmless the
Landlord Parties and the Property from and against any Claims in any manner relating to or arising
out of any Alterations or any other work performed, materials furnished or obligations incurred by
or for Tenant or any person or entity claiming by, through or under Tenant.

ARTICLE 9

RIGHTS RESERVED BY LANDLORD

     9.1. Landlord’s Entry. Landlord and its authorized representatives may at all reasonable
times and upon reasonable notice to Tenant enter the Premises to: (a) inspect the Premises;
(b) show the Premises to prospective purchasers, mortgagees and tenants; (c) post notices of
non-responsibility or other protective notices available under the Laws; and (d) exercise and
perform Landlord’s rights and obligations under this Lease. Landlord, in the event of any
emergency, may enter the Premises without notice to Tenant. Landlord’s entry into the Premises is
not to be construed as a forcible or unlawful entry into, or detainer of, the Premises or as an
eviction of Tenant from all or any part of the Premises. Subject to Section 9.3 below, Tenant will
also permit Landlord (or its designees) to erect, install, use, maintain, replace and repair pipes,
cables, conduits, plumbing and vents, and telephone, electric and other wires or other items, in,
to and through the Premises (in a manner

11

 

and in locations reasonably acceptable to Tenant) if
Landlord reasonably determines that such activities are necessary for properly operating and
maintaining the Building.

     9.2. Control of Property. Landlord reserves all rights respecting the Property and Premises
not specifically granted to Tenant under this Lease, including, without limitation, the right to:
(a) change the name of the Building; (b) designate and approve all types of signs, window
coverings, internal lighting and other aspects of the Premises and its contents that may be visible
from the exterior of the Premises; (c) grant any party the exclusive right to conduct any business
or render any service in the Building, provided such exclusive right to conduct any business or
render any service in the Building does not materially and adversely limit Tenant’s ability to use
the Premises for the Permitted Use; (d) close the Building after regular business hours, except
that Tenant and its employees and invitees may access the Premises after regular business hours in
accordance with such rules and regulations as Landlord may prescribe from time to time for security
purposes; (e) install, operate and maintain security systems that monitor, by closed circuit
television or otherwise, all persons entering or leaving the Building; (f) install and maintain
pipes, ducts, conduits, wires and structural elements in the Premises that serve other parts or
other tenants of the Building; (g) change the regular business hours of the Property; and
(h) retain and receive master keys or pass keys to the Premises and all doors in the Premises.
Notwithstanding the foregoing, or the provision of any security-related services by Landlord,
Landlord is not responsible for the security of persons or property in the Premises or otherwise on
the Property, and Landlord is not and will not be liable in any way whatsoever for any breach of
security not solely and directly caused by the willful misconduct of Landlord, its agents or
employees.

     9.3. Interference with Tenant’s Business. With respect to any provision of this Lease which
entitles or requires Landlord to make improvements, alterations or repairs to the Premises, the
Building or the Common Area, Landlord agrees that such work shall not materially interfere with
Tenant’s use and enjoyment of the Premises. Landlord shall endeavor to perform any such work so as
to minimize disruption to Tenant’s business where reasonably possible.

ARTICLE 10

INSURANCE AND LIABILITY

     10.1. Tenant’s Insurance Obligations. Tenant, at all times during the Term and during any
early occupancy period, at Tenant’s sole cost and expense, will maintain the insurance this
Section 10.1 describes.

          10.1.1. Liability Insurance. Tenant shall maintain commercial general liability insurance
(providing coverage at least as broad as the current ISO commercial general liability form) with
respect to the Premises and Tenant’s activities in the Premises and upon and about the Property, on
an “occurrence” basis, with minimum limits of $1,000,000 each occurrence and $3,000,000 general
aggregate, which coverage limits may be satisfied with an umbrella or excess liability policy
sitting over the commercial general liability insurance. Such insurance must include the following
specific coverage provisions or endorsements: (a) broad form contractual liability insurance
insuring Tenant’s obligations under this Lease; (b) naming Landlord and Property Manager as
additional insureds by an “Additional Insured — Managers or Lessors of Premises” endorsement (or
equivalent coverage or endorsement); and (c) waiving the insurer’s subrogation rights against all
Landlord Parties. If Tenant receives notice of the modification, cancellation, or non-renewal of
such insurance from its carrier, then Tenant shall notify Landlord of the modification,
cancellation, or non-renewal within 5 Business Days of receiving such notice from its carrier.
Tenant may provide such liability insurance under a blanket policy so long as Tenant provides
certificate of insurance, in form required by Section 10.1.3 below, and with content reasonably
acceptable to Landlord, that states that the liability insurance coverage is specifically
applicable to the Premises. Such certificate shall also require the carrier to endeavor to provide
at least 10 days’ notice of modification, cancellation or non-renewal of the underlying insurance
policy. Tenant acknowledges and agrees that Tenant’s liability insurance will be provided on a
primary and non-contributory basis.

          10.1.2. Other Insurance. Tenant shall maintain property insurance (providing coverage at
least as broad as the current ISO Special Form) for Tenant’s personal property and trade fixtures.
Tenant shall also maintain such other insurance as may be required by any Laws (including without
limitation any necessary worker’s compensation insurance), or as may reasonably be required by
Landlord from time to time. If insurance obligations generally required of tenants in similar
space in similar buildings in the area in which the Property is

12

 

located increase or otherwise
change, then Landlord may likewise increase or otherwise change Tenant’s insurance obligations
under this Lease.

          10.1.3. Miscellaneous Insurance Provisions. All of Tenant’s insurance will be written by
companies rated at least “Best A-VII” and otherwise reasonably satisfactory to Landlord. Tenant
will deliver evidence of insurance reasonably satisfactory to Landlord, (a) on or before the
Commencement Date (and prior to any earlier occupancy by Tenant), (b) not later than 10 Business
Days prior to the expiration of any current policy or certificate, and (c) at such other times as
Landlord may reasonably request. If Landlord allows Tenant to provide evidence of liability
insurance by certificate, then Tenant will deliver an ACORD Form 25 certificate and will attach or
cause to be attached to the certificate copies of any endorsements this Section 10.1 requires.
Tenant’s insurance must permit releases of liability and provide for waiver of subrogation as
provided in Section 10.3. Tenant acknowledges and agrees that Landlord’s establishment of minimum
insurance requirements is not a representation by Landlord that such limits are sufficient and does
not limit Tenant’s liability under this Lease in any manner.

          10.1.4. Tenant’s Failure to Insure. Notwithstanding any contrary language in this Lease and
any notice and cure rights this Lease provides Tenant, if Tenant fails to provide Landlord with
evidence of insurance as required under this Section 10.1, then Landlord may assume that Tenant is
not maintaining the insurance Section 10.1 requires Tenant to maintain and Landlord may (but is not
obligated to) without further demand upon Tenant or notice to Tenant and without giving Tenant any
cure right or waiving or releasing Tenant from any obligation contained in this Lease, obtain such
insurance for Landlord’s benefit. In such event, Tenant will pay to Landlord, as Additional Rent,
all costs and expenses Landlord incurs obtaining such insurance. Landlord’s exercise of its rights
under this section does not relieve Tenant from any default under this Lease.

     10.2. Landlord’s Insurance Obligations. Landlord will (except for the optional coverages and
endorsements this Section 10.2 may describe) at all times during the Term maintain the insurance
this Section 10.2 describes. All premiums and other costs and expenses Landlord incurs in
connection with maintaining such insurance (including without limitation a reasonable
administrative fee for maintaining and coordinating Landlord’s insurance program) are Operating
Expenses.

          10.2.1. Property Insurance. Property insurance on the Building in an amount not less than the
full insurable replacement cost of the Building insuring against loss or damage by such risks as
are covered by the current ISO Special Form policy. Landlord, at its option, may obtain such
additional coverages or endorsements as Landlord deems appropriate or necessary in its sole
discretion, including without limitation insurance covering foundation, grading, excavation and
debris removal costs; business income and rents insurance; earthquake insurance; terrorism
insurance; and flood insurance. Landlord may maintain such insurance in whole or in part under
blanket policies. Tenant acknowledges and agrees that Landlord’s property insurance will not cover
or be applicable to any property of Tenant within the Premises or otherwise located at the
Property.

          10.2.2. Liability Insurance. Commercial general liability insurance against claims for bodily
injury and property damage occurring at the Property in such amounts as Landlord deems appropriate
or necessary in its sole discretion, but in no event in amounts less than $1,000,000 each
occurrence and $3,000,000 general aggregate. Such liability insurance will only protect Landlord
(and, at Landlord’s sole option, Landlord’s lender and some or all of the Landlord Parties). Such
liability insurance will not protect or insure Tenant, and does not replace or supplement the
liability insurance this Lease obligates Tenant to carry. Nothing in the foregoing shall be deemed
to limit Landlord’s liability pursuant to Section 10.4.1 or Section 10.4.3 below or any other
provision of this Lease.

          10.2.3. Deductible. Tenant acknowledges that Landlord’s insurance may include deductible
limits up to $50,000, that such deductible amounts reduce the insurance premiums chargeable as
Operating Expenses under the Lease, and that, notwithstanding the waiver set forth in Section 10.3,
such deductible amounts shall either (i) be considered Operating Expenses under the Lease, or, (ii)
if any loss covered by Landlord’s insurance resulted from Tenant’s negligent or intentional act or
omission, be considered the sole responsibility of Tenant hereunder to the extent of Tenant’s
fault.

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     10.3. Mutual Waiver of Subrogation. Subject only to Section 10.2.3 above, each party hereby
waives any and every right or cause of action for any and all loss of, or damage to, any of its
property (whether or not such loss or damage is caused by the fault or negligence of the other
party or anyone for whom said other party may be responsible), which loss or damage is actually
covered by an insurance policy maintained by such party, but only to the extent that such loss or
damage is covered under any such insurance policy.

     10.4. Liability of Landlord and Tenant.

          10.4.1. Except only as otherwise specifically provided in this Lease, the Landlord Parties
shall not have any liability to Tenant for any Claims based on or arising out of any cause
whatsoever, including without limitation the following: the repair or maintenance of any portion
of the Premises (including the Tenant Improvements) or the Property; interruption in the use of the
Premises due to Force Majeure; any accident or damage resulting from any use or operation by
Landlord, Tenant or any other person or entity of the heating, cooling, electrical, or plumbing
systems serving the Property; termination of this Lease by reason of damage to the Premises or the
Building; fire, robbery, theft, vandalism, or any other casualty; actions of any other tenant of
the Building or of any other person or entity; inability to furnish any service specified in this
Lease; and leakage in any part of the Premises or the Building from water, rain, ice or snow that
may leak into, or flow from, any part of the Premises or the Building, or from drains, pipes or
plumbing fixtures in the Premises or the Building. Any property placed by Tenant in or about the
Premises or the Property shall be at the sole risk of Tenant, and Landlord shall not in any manner
be responsible therefore. Notwithstanding the foregoing, Landlord shall not be released from
liability to Tenant for and to the extent of any injury or damage caused by the negligence or
willful misconduct of Landlord. In no event, however, shall Landlord have any liability to Tenant
on account of any claims for the interruption of or loss to Tenant’s business or for any indirect
damages or consequential losses.

          10.4.2. In addition to Tenant’s other indemnification obligations in this Lease (but subject
to Landlord’s insurance obligations in Section 10.2, to Section 10.3 above, and to Landlord’s
obligations pursuant to Section 10.4.1 above and Section 10.4.3 below), Tenant to the fullest
extent allowable under the Laws shall release, indemnify, protect, defend (with counsel reasonably
acceptable to Landlord) and hold harmless the Landlord Parties from and against all Claims arising
from: (a) any breach or default by Tenant in the performance of any of Tenant’s covenants or
agreements in this Lease; (b) the negligence or willful misconduct of Tenant; (c) any accident,
injury, occurrence or damage in, about or to the Premises, except to the extent caused by the
negligence or willful misconduct of Landlord; and (d) to the extent caused in whole or in part by
Tenant, any accident, injury, occurrence or damage in, about or to the Property.

          10.4.3. Landlord hereby indemnifies and agrees to save the Tenant Parties harmless from and
against any and all claims to the extent arising out of: (a) the negligence or willful misconduct
of Landlord in connection with the possession, use, occupation, management, repair, maintenance or
control of the Building, the Property and/or the Common Area; and (b) any breach or default by
Landlord in the performance of Landlord’s covenants or agreements in this Lease. In no event,
however, shall Landlord have any liability to Tenant on account of any claims for the interruption
of or loss to Tenant’s business or for any indirect damages or consequential losses.

          10.4.4. Notwithstanding any provision to the contrary contained herein, Tenant shall look
solely to the estate and property of Landlord in and to the Property in the event of any claim
against Landlord arising out of or in connection with this Lease, the relationship of Landlord and
Tenant, or Tenant’s use of the Premises, and Tenant agrees that the liability of Landlord arising
out of or in connection with this Lease, the relationship of Landlord and Tenant, or Tenant’s use
of the Premises, shall be limited to such estate and property of Landlord in and to the Property.
No properties or assets of Landlord other than the estate and property of Landlord in and to the
Property, as described above, and no property owned by any partner of Landlord shall be subject to
levy, execution or other enforcement procedures for the satisfaction of any judgment (or other
judicial process) or for the satisfaction of any other remedy of Tenant arising out of or in
connection with this Lease, the relationship of Landlord and Tenant or Tenant’s use of the
Premises.

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ARTICLE 11

DAMAGE OR DESTRUCTION

     11.1. Tenant’s Notice of Casualty. If the Premises or any part thereof shall be damaged by
fire or any other casualty, Tenant shall give immediate written notice thereof to Landlord.

     11.2. Tenantable Within 180 Days. Except as provided in Section 11.4, if a casualty renders
the whole or any material part of the Premises untenantable and Landlord determines in its sole but
reasonable discretion that it can make the Premises tenantable within 180 days after the date of
the casualty, then Landlord will notify Tenant within 20 Business Days after the date of the
casualty that Landlord will repair and restore the Building and the Premises as required by Section
11.6. Notwithstanding anything to the contrary contained herein, in the event that such
restoration of the Premises is not substantially completed within 180 days from the date of the
casualty, and provided that such delay in substantial completion results from a cause other than
Tenant Delay or Force Majeure, then Tenant shall have the right to terminate this Lease by
delivering 30 days’ prior written notice to Landlord. In the event the restoration of the Premises
is substantially completed within such 30 day period, such right of termination shall be deemed to
be void and without effect.

     11.3. Not Tenantable Within 180 Days. If a casualty renders the whole or any material part of
the Premises untenantable and Landlord reasonably determines in its sole discretion that it cannot
make the Premises tenantable within 180 days after the date of the casualty, then Landlord will so
notify Tenant within 20 Business Days after the date of the casualty and may, in such notice,
terminate this Lease effective on the date of Landlord’s notice. If Landlord does not terminate
this Lease as provided in this section, Tenant may terminate this Lease by notifying Landlord
within 30 days after Tenant’s receipt of Landlord’s notice, which termination will be effective
30 days after Landlord’s receipt of Tenant’s notice.

     11.4. Building Substantially Damaged. Notwithstanding Section 11.2, if the Building is
damaged or destroyed by casualty (regardless whether the Premises is affected) and either (a) fewer
than 9 months remain in the Term (excluding any unexercised Extension Terms), or (b) the damage
reduces the value of the improvements on the Property by more than 50% (as determined by Landlord
in its sole but reasonable discretion), then, regardless of whether Landlord determines in its
reasonable discretion that it can make the Building tenantable within 180 days after the date of
the casualty, Landlord, at Landlord’s option, by notifying Tenant within 20 Business Days after the
casualty, may terminate this Lease effective on the date of Landlord’s notice.

     11.5. Insufficient Proceeds. Notwithstanding any contrary language in this Article 11, if
this Article 11 obligates Landlord to repair damage to the Premises or Building caused by casualty,
and if Landlord does not receive sufficient insurance proceeds (excluding any deficiency caused by
the amount of any policy deductible) to repair all of the damage, or if the lender under any
Mortgage does not release to Landlord sufficient insurance proceeds to repair all of the damage,
then Landlord, at Landlord’s option, by notifying Tenant within 45 days after the casualty, may
terminate this Lease effective on the date of Landlord’s notice.

     11.6. Landlord’s Repair Obligations. If this Lease is not terminated under Sections 11.3
through 11.5 following a casualty, then Landlord shall, at Landlord’s sole cost and expense and at
no cost to Tenant (except as provided in Section 10.2.3 above), repair and restore the Premises and
the Building to as near their condition prior to the casualty as is reasonably possible with all
commercially reasonable diligence and speed (subject to delays caused by Tenant Delay or Force
Majeure). In such case, this Lease shall remain in full force and effect, but Basic Rent and
Tenant’s Share of Expenses for the period during which the Premises are untenantable shall abate
pro rata (based upon the rentable area of the untenantable portion of the Premises as compared with
the rentable area of the entire Premises). In no event is Landlord obligated to repair or restore
any Alterations that were completed by Tenant, any special equipment or improvements that were
installed by Tenant, or any personal property (or other property) of Tenant. Landlord will, if
necessary, equitably adjust Tenant’s Share of Expenses Percentage, subject to Section 3.7, to
account for any reduction in the rentable area of the Premises or Building resulting from a
casualty.

     11.7. Rent Apportionment Upon Termination. If either party terminates this Lease under this
Article 11, Landlord will apportion Basic Rent and Tenant’s Share of Expenses on a per diem basis
and Tenant will pay the Basic Rent and Tenant’s Share of Expenses to (a) the date of the casualty
if the event renders the Premises completely untenantable or (b) if the event does not render the
Premises completely untenantable, the effective date of such termination (provided that if a
portion of the Premises is rendered untenantable, but the

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remaining portion is tenantable, then
Tenant’s obligation to pay Basic Rent and Tenant’s Share of Expenses abates pro rata [based upon
the rentable area of the untenantable, portion of the Premises divided by the rentable area of the
entire Premises] from the date of the casualty and Tenant will pay the unabated portion of the Rent
to the date of such termination).

     11.8. Exclusive Casualty Remedy. The provisions of this Article 11 are Tenant’s sole and
exclusive rights and remedies in the event of a casualty. To the extent permitted by the Laws,
Tenant waives the benefits of any Law that provides Tenant any abatement or termination rights (by
virtue of a casualty) not specifically described in this Article 11.

ARTICLE 12

CONDEMNATION

     12.1. Termination of Lease. If a Condemning Authority desires to effect a Taking of all or
any material part of the Property, Landlord will notify Tenant and Landlord and Tenant will
reasonably determine whether the Taking will render the Premises unsuitable for Tenant’s intended
purposes. If Landlord and Tenant conclude that the Taking will render the Premises unsuitable for
Tenant’s intended purposes, Landlord and Tenant will document such determination and this Lease
will terminate as of the date the Condemning Authority takes possession of the portion of the
Property taken. Tenant will pay Rent to the date of termination. If a Condemning Authority takes
all or any material part of the Building, or if a Taking reduces the value of the Property by 50%
or more (as reasonably determined by Landlord in its sole discretion), regardless whether the
Premises is affected, then Landlord, at Landlord’s option, by notifying Tenant prior to the date
the Condemning Authority takes possession of the portion of the Property taken, may terminate this
Lease effective on the date the Condemning Authority takes possession of the portion of the
Property taken.

     12.2. Landlord’s Repair Obligations. If this Lease does not terminate with respect to the
entire Premises under Section 12.1 and the Taking includes a portion of the Premises, then this
Lease shall automatically terminate as to the portion of the Premises taken as of the date the
Condemning Authority takes possession of the portion taken and Landlord will, at its sole cost and
expense, restore the remaining portion of the Premises to a complete architectural unit with all
commercially reasonable diligence and speed and will reduce the Basic Rent for the period after the
date the Condemning Authority takes possession of the portion of the Premises taken to a sum equal
to the product of the Basic Rent provided for in this Lease multiplied by a fraction, the numerator
of which is the rentable area of the Premises after the Taking and after Landlord restores the
Premises to a complete architectural unit, and the denominator of which is the rentable area of the
Premises prior to the Taking. Landlord will also equitably adjust Tenant’s Share of Expenses
Percentage for the same period, subject to Section 3.7, to account for the reduction in the
rentable area of the Premises or the Building resulting from the Taking. Tenant’s obligation to
pay Basic Rent and Tenant’s Share of Expenses will abate on a proportionate basis with respect to
that portion of the Premises remaining after the Taking that Tenant is unable to use during
Landlord’s restoration for the period of time that Tenant is unable to use such portion of the
Premises.

     12.3. Tenant’s Participation. Except only as specifically set forth in the last sentence of
this Section, Landlord is entitled to receive and keep all damages, awards or payments resulting
from or paid on account of a Taking. Tenant has no right to receive any award for its interest in
this Lease or for loss of leasehold (including without limitation any award for the unexpired
portion of the Term), and Tenant hereby assigns to Landlord any interest of Tenant in any such
award. Tenant may only prove in any condemnation proceedings, and may only receive from the
Condemning Authority: (i) any separate award for damages to or condemnation of Tenant’s movable
trade fixtures and equipment, and (ii) any separate award for relocation expenses.

     12.4. Exclusive Taking Remedy. The provisions of this Article 12 are Tenant’s sole and
exclusive rights and remedies in the event of a Taking. To the extent permitted by the Laws,
Tenant waives the benefits of any Law that provides Tenant any abatement or termination rights or
any right to receive any payment or award (by virtue of a Taking) not specifically described in
this Article 12.

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ARTICLE 13

TRANSFERS

     13.1. Restriction on Transfers.

          13.1.1. General Prohibition. Except as set forth in Section 13.1.2, Tenant will not cause or
suffer a Transfer without first obtaining Landlord’s written consent, which consent Landlord may
grant, withhold, or condition in its sole but reasonable discretion. If Landlord consents to the
Transfer, then Landlord may impose on Tenant or the transferee such conditions as Landlord deems
appropriate in its sole but reasonable discretion. Tenant’s request for Landlord’s consent to a
Transfer must describe in detail the parties, terms and portion of the Premises affected. Tenant
will, in connection with requesting Landlord’s consent, provide Landlord with a copy of any and all
documents and information regarding the proposed Transfer and the proposed transferee as Landlord
reasonably requests. Landlord will notify Tenant of Landlord’s election to consent or withhold
consent within 30 days after receiving Tenant’s written request for consent to the Transfer.
Tenant acknowledges and agrees that no Transfer, including without limitation a Transfer under
Section 13.1.2, will release Tenant from any liability or obligation under this Lease and that
Tenant shall remain liable to Landlord after such a Transfer as a principal and not as a surety or
guarantor, nor shall the collection or acceptance of rent from any such assignee, transferee,
subtenant or occupant constitute a waiver or release of Tenant under any provision of the Lease.
If Landlord consents to any Transfer, Tenant will pay to Landlord, as Additional Rent, 50% of any
amount Tenant receives on account of the Transfer in excess of the amounts this Lease otherwise
requires Tenant to pay. Any attempted Transfer in violation of this Lease is null and void and
constitutes a breach of this Lease. Tenant acknowledges and agrees that Landlord’s refusal to
consent to a Transfer shall be deemed not to have been unreasonably withheld if (i) the proposed
transferee is not of a type and quality consistent with the first-class nature of the Building,
(ii) the proposed transferee is a governmental agency or any party by whom any suit or action could
be defended on the ground of sovereign immunity, (iii) the proposed transferee is already a tenant
at the Property, or is a party with whom the Landlord is presently negotiating for the lease of
space at the Property, (iv) the presence of the proposed transferee in the Premises would cause
Landlord to be in violation of any other lease, or would trigger termination rights by any other
tenant, (v) the proposed transferee does not have the financial capacity and credit worthiness to
undertake and perform the obligations of this Lease, or (vi) the space to be assigned or sublet is
not configured to allow appropriate means of ingress and egress. Tenant also acknowledges that one
or more existing or future mortgagees of a Mortgage affecting the Property may have the right to
approve any Transfer and that, whenever that is the case, Landlord shall have the absolute right to
withhold its consent to a Transfer if any such mortgagee withholds its consent thereto.

          13.1.2. Transfers to Affiliates. Provided that Tenant is not in default in the performance of
its obligations under this Lease beyond any applicable period for cure, Tenant may cause a Transfer
to an Affiliate without Landlord’s consent if: (a) Tenant notifies Landlord at least 30 days prior
to such Transfer; (b) the transferee assumes and agrees in a writing reasonably acceptable to
Landlord to perform Tenant’s obligations under this Lease and to observe all terms and conditions
of this Lease; and (c) Tenant delivers to Landlord, at the time of Tenant’s notice, current
financial statements of the proposed transferee. Tenant acknowledges and agrees that a Transfer to
an Affiliate under this Section 13.1.2 will not release Tenant from any liability or obligation
under this Lease, and that Tenant shall remain liable to Landlord after such a Transfer as a
principal and not as a surety or guarantor. Landlord’s right described in Section 13.1.1 to share
in any profit Tenant receives from a Transfer permitted under this Section 13.1.2 does not apply to
any Transfer this Section 13.1.2 permits.

     13.2. Costs. Tenant will pay to Landlord, as Additional Rent, all reasonable costs and
expenses Landlord actually incurs in connection with any Transfer (except for Transfers to
Affiliates completed in accordance with Section 13.1.2), including without limitation reasonable
attorneys’ fees and other third-party expenses, regardless whether Landlord consents to the
Transfer.

ARTICLE 14

DEFAULTS; REMEDIES

     14.1. Events of Default. The occurrence of any of the following constitutes an “Event of
Default” by Tenant under this Lease:

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          14.1.1. Failure to Pay Rent. Tenant fails to pay as and when due (a) Basic Rent, (b) any
installment of Tenant’s Share of Expenses, or (c) any other Additional Rent amount, and such
failure continues for 10 days after Landlord notifies Tenant of such failure.

          14.1.2. Failure to Perform. Tenant breaches or fails to perform any of Tenant’s non-monetary
obligations under this Lease and the breach or failure continues for a period of 30 days after
Landlord notifies Tenant of such breach or failure; provided, however, that if Tenant cannot
reasonably cure its breach or failure within said 30 day period, then Tenant’s breach or failure is
not an Event of Default if Tenant promptly commences to cure its breach or failure and thereafter
diligently pursues the cure and effects the cure within a period of time that does not exceed 90
days after the date that Landlord notified Tenant of the breach of failure. Notwithstanding any
contrary language in this Section 14.1.2, Tenant is not entitled to any notice or cure period
before an uncurable breach of this Lease (or failure) becomes an Event of Default.

          14.1.3. Misrepresentation. The existence of any material misrepresentation or omission in any
financial statements, correspondence or other information provided to Landlord by or on behalf of
Tenant in connection with: (a) Tenant’s negotiation or execution of this Lease; (b) Landlord’s
evaluation of Tenant as a prospective tenant at the Property; (c) any proposed or attempted
Transfer; or (d) any consent or approval requested by Tenant under this Lease.

          14.1.4. Other Defaults. (a) Tenant makes a general assignment or general arrangement for the
benefit of creditors; (b) a petition for adjudication of bankruptcy or for reorganization or
rearrangement is filed by Tenant; (c) a petition for adjudication of bankruptcy or for
reorganization or rearrangement is filed against Tenant and is not dismissed within 60 days; (d) a
trustee or receiver is appointed to take possession of substantially all of Tenant’s assets located
at the Premises or of Tenant’s interest in this Lease and possession is not restored to Tenant
within 30 days; or (e) substantially all of Tenant’s assets, substantially all of Tenant’s assets
located at the Premises or Tenant’s interest in this Lease is subjected to attachment, execution or
other judicial seizure not discharged within 30 days. If a court of competent jurisdiction
determines that any act described in this section does not constitute an Event of Default, and the
court appoints a trustee to take possession of the Premises (or if Tenant remains a debtor in
possession of the Premises) and such trustee or Tenant transfers Tenant’s interest hereunder, then
Landlord is entitled to receive, as Additional Rent, the amount by which the Rent (or any other
consideration) paid in connection with the Transfer exceeds the Rent otherwise payable by Tenant
under this Lease.

          14.1.5. Notice Requirements. The notices required by this Section 14.1 are intended to
satisfy any and all notice requirements imposed by the Laws and are not in addition to any such
requirements.

     14.2. Remedies. Upon the occurrence of any Event of Default, Landlord, at any time and from
time to time, and without preventing Landlord from exercising any other right or remedy, may
exercise any one or more of the following remedies:

          14.2.1. Termination of Tenant’s Possession; Re-entry and Reletting Right. Terminate Tenant’s
right to possess the Premises by any lawful means with or without terminating this Lease, in which
event Tenant will immediately surrender possession of the Premises to Landlord. Unless Landlord
specifically states that it is terminating this Lease, Landlord’s termination of Tenant’s right to
possess the Premises is not to be construed as an election by Landlord to terminate this Lease or
Tenant’s obligations and liabilities under this Lease. In such event, this Lease continues in full
force and effect (except for Tenant’s right to possess the Premises) and Tenant continues to be
obligated for and must pay all Rent as and when due under this Lease. If Landlord terminates
Tenant’s right to possess the Premises, Landlord is not obligated to but may re-enter the Premises
and remove all persons and property from the Premises. Landlord may store any property Landlord
removes from the Premises in a public warehouse or elsewhere at the cost and for the account of
Tenant. Upon such re-entry, Landlord is not obligated to but may relet all or any part of the
Premises to a third party or parties for Tenant’s account. Tenant is immediately liable to
Landlord for all Re-entry Costs and must pay Landlord the same within 10 days after Landlord’s
notice to Tenant. Landlord may relet the Premises for a period shorter or longer than the
remaining Term. If Landlord relets all or any part of the Premises, Tenant will continue to pay
Rent when due under this Lease and Landlord will refund to Tenant the Net Rent Landlord actually
receives from

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the reletting up to a maximum amount equal to the Rent paid by Tenant that came due
after Landlord’s reletting. If the Net Rent Landlord actually receives from reletting exceeds such
Rent, Landlord will apply the excess sum to future Rent due under this Lease. Landlord may retain
any surplus Net Rent remaining at the expiration of the Term.

          14.2.2. Termination of Lease. Terminate this Lease effective on the date Landlord specifies
in its termination notice to Tenant. Upon termination, Tenant will immediately surrender
possession of the Premises to Landlord. If Landlord terminates this Lease, Landlord may recover
from Tenant and Tenant will pay to Landlord on demand all damages Landlord incurs by reason of
Tenant’s default, including, without limitation: (a) all Rent due and payable under this Lease as
of the effective date of the termination; (b) any amount necessary to compensate Landlord for any
detriment proximately caused to Landlord by Tenant’s failure to perform its obligations under this
Lease or which in the ordinary course would likely result from Tenant’s failure to perform,
including but not limited to any Re-entry Costs; (c) an amount equal to the difference between the
present worth, as of the effective date of the termination, of the Basic Rent for the balance of
the Term remaining after the effective date of the termination (assuming no termination) and the
present worth, as of the effective date of the termination, of a fair market Rent for the Premises
for the same period (as Landlord reasonably determines the fair market Rent); and (d) Tenant’s
Share of Expenses to the extent Landlord is not otherwise reimbursed for such Expenses. For
purposes of this section, Landlord will utilize the Discount Rate to compute present worth.
Nothing in this section shall limit or prejudice Landlord’s right to prove and obtain damages in an
amount equal to the maximum amount allowed by the Laws, regardless whether such damages are greater
than the amounts set forth in this section.

          14.2.3. Present Worth of Rent. Recover from Tenant, and Tenant will pay to Landlord on
demand, an amount equal to the then present worth, as of the effective date of termination, of the
aggregate of the Rent and any other charges payable by Tenant under this Lease for the unexpired
portion of the Term, less the fair and reasonable rental value of the Premises for the
corresponding period. Landlord will utilize the Discount Rate to compute present worth. The fair
and reasonable rental value of the Premises shall be determined in good faith by Landlord on the
basis of the rents payable under leases entered into by Landlord for comparable space in the
Building during the 18-month period immediately preceding Landlord’s election to proceed under this
Section 14.2.3; or, if Landlord reasonably determines that no such leases for comparable space have
been entered into, then the fair and reasonable rental value shall be otherwise determined by
Landlord in good faith. If the Premises or any part thereof are relet by Landlord before any
adjudication of Landlord’s claims for damages, then the amount of rent payable to Landlord for such
reletting shall be deemed the fair and reasonable rental value of the Premises (or the applicable
part thereof) during the term of the reletting.

          14.2.4. Self Help. Perform the obligation on Tenant’s behalf without waiving Landlord’s
rights under this Lease at law or in equity, and without releasing Tenant from any obligation under
this Lease. Tenant shall pay to Landlord, as Additional Rent, all reasonable sums that Landlord
pays on Tenant’s behalf under this section.

          14.2.5. Other Remedies. Any other right or remedy available to Landlord under this Lease,
under the Laws, and/or in equity.

     14.3. Costs. Tenant will reimburse and compensate Landlord on demand and as Additional Rent
for any actual loss Landlord incurs in connection with, resulting from or related to any breach or
default of Tenant under this Lease, regardless whether the breach or default constitutes an Event
of Default, and regardless whether suit is commenced or judgment is entered. Such loss shall
include all reasonable legal fees, costs and expenses (including paralegal fees and other
professional fees and expenses) Landlord incurs in investigating, negotiating, settling or
enforcing any of Landlord’s rights or remedies or otherwise protecting Landlord’s interests under
this Lease. Tenant will also indemnify, defend (with counsel reasonably acceptable to Landlord),
protect and hold harmless the Landlord Parties from and against all Claims that Landlord or any of
the other Landlord Parties incurs if Landlord or any of the other Landlord Parties becomes or is
made a party to any claim or action (a) instituted by Tenant (other than claims asserting that
Landlord has breached any of its obligations to Tenant under this Lease) or by or against any
person holding any interest in the Premises by, under or through Tenant, (b) for foreclosure of any
lien for labor or material furnished to or for Tenant or such other person, or (c) otherwise

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arising out of or resulting from any act or omission of Tenant or such other person. In addition
to the foregoing, Landlord is entitled to reimbursement of all of Landlord’s fees, expenses and
damages, including, but not limited to, reasonable attorneys’ fees and paralegal and other
professional fees and expenses, Landlord incurs in connection with protecting its interests in any
bankruptcy or insolvency proceeding involving Tenant, including without limitation any proceeding
under any chapter of the Bankruptcy Code; by exercising and advocating rights under Section 365 of
the Bankruptcy Code; by proposing a plan of reorganization and objecting to competing plans; and by
filing motions for relief from stay. Such fees and expenses are payable on demand, or, in any
event, upon assumption or rejection of this Lease in bankruptcy.

     14.4. Waiver and Release by Tenant. Except for compulsory counterclaims, Tenant waives and
releases all Claims Tenant may have resulting from Landlord’s re-entry and taking possession of the
Premises by any lawful means and removing and storing Tenant’s property as permitted under this
Lease, regardless whether this Lease is terminated, and, to the fullest extent allowable under the
Laws, Tenant will release, indemnify, defend (with counsel reasonably acceptable to Landlord),
protect and hold harmless the Landlord Parties from and against any and all Claims occasioned
thereby. No such re-entry is to be considered or construed as a forcible entry by Landlord.

     14.5. Landlord’s Default. If Landlord defaults in the performance of any of its obligations
under this Lease, Tenant will notify Landlord of the default and Landlord will have 30 days after
receiving such notice to cure the default. If Landlord is not reasonably able to cure the default
within a 30 day period, Landlord will have an additional reasonable period of time to cure the
default as long as Landlord promptly commences the cure and thereafter diligently pursues the cure
to completion. In no event shall Landlord be liable to Tenant or any other person for
consequential, special or punitive damages (including without limitation lost profits). If
Landlord has not commenced repair or maintenance required to be performed by Landlord hereunder
within 30 days after written notice thereof from Tenant, then Tenant shall have the right, but not
the obligation, to make such repairs and Landlord shall reimburse Tenant for the reasonable and
actual cost thereof within 30 days after receipt of a bill therefore from Tenant. In the event of
an emergency, Tenant may (but shall not be obligated to) perform such repairs which would otherwise
be Landlord’s obligation hereunder which may be reasonably necessary, after having given Landlord
such notice, if any, as may be practicable under the circumstances, and Landlord shall promptly
reimburse Tenant for any reasonable third-party costs and expenses actually incurred by Tenant in
performing such repairs. Notwithstanding anything to the contrary set forth hereinabove, Tenant
shall not be required to perform any repairs which would otherwise be Landlord’s obligation
hereunder.

     14.6. No Waiver. Except as specifically set forth in this Lease, no failure by Landlord or
Tenant to insist upon the other party’s performance of any of the terms of this Lease or to
exercise any right or remedy upon a breach thereof, constitutes a waiver of any such breach or of
any breach or default by the other party in its performance of its obligations under this Lease.
No acceptance by Landlord of full or partial Rent from Tenant or any third party during the
continuance of any breach or default by Tenant of Tenant’s performance of its obligations under
this Lease constitutes Landlord’s waiver of any such breach or default. Except as specifically set
forth in this Lease, none of the terms of this Lease to be kept, observed or performed by a party
to this Lease, and no breach thereof, are waived, altered or modified except by a written
instrument executed by the other party. One or more waivers by a party to this Lease are not to be
construed as a waiver of a subsequent breach of the same covenant, term or condition. No statement
on a payment check from a party to this Lease or in a letter accompanying a payment check is
binding on the other party. The party receiving the check, with or without notice to the other
party, may negotiate such check without being bound to the conditions of any such statement.

ARTICLE 15

CREDITORS; ESTOPPEL CERTIFICATES

     15.1. Subordination. This Lease, all rights of Tenant in this Lease, and all interest or
estate of Tenant in the Property, is subject and subordinate to the lien of any Mortgage. Tenant,
within 20 days of Landlord’s demand, will execute and deliver to Landlord (or to any other person
Landlord designates) any instruments, releases or other documents reasonably required to confirm
the self-effectuating subordination of this Lease as provided in this Section to the lien of any
Mortgage. Notwithstanding the subordination to any future Mortgage provided for in this section,
as long as Tenant is not in default in the payment of Rent or the performance and observance of any
covenant, condition, provision, term or agreement to be performed and observed by Tenant

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under this
Lease beyond any applicable grace or cure period this Lease provides Tenant, the holder of the
Mortgage shall not by virtue of such subordination under this section be entitled to disturb
Tenant’s right of possession of the Premises under this Lease. Landlord acknowledges and agrees
that the lien of any existing or future Mortgage will not cover Tenant’s moveable trade fixtures or
personal property located in or on the Premises.

     15.2. Attornment. If the holder of any Mortgage at a foreclosure sale (or by deed in lieu of
foreclosure) or any other transferee acquires Landlord’s interest in this Lease, the Premises or
the Property, then, provided such transferee confirms the validity of this Lease, Tenant will
attorn to the transferee of or successor to Landlord’s interest in this Lease, the Premises or the
Property (as the case may be) and recognize such transferee or successor as landlord under this
Lease, provided that any such purchaser at a foreclosure sale or transferee under a deed in lieu of
foreclosure shall not be (a) bound by any payment of Rent more than one month in advance, (b)
liable for damages for any breach, act or omission of any prior landlord, or (c) subject to any
offsets or defenses which Tenant might have against any prior landlord. Tenant waives the
protection of any statute or rule of law that gives or purports to give Tenant any right to
terminate this Lease or surrender possession of the Premises upon the transfer of Landlord’s
interest.

     15.3. Mortgagee Protection Clause. Tenant will give the holder of any Mortgage, by registered
or certified mail or via reputable overnight courier, a copy of any notice of default Tenant serves
on Landlord, provided that Landlord or the holder of the Mortgage previously notified Tenant (by
way of notice of assignment of rents and leases or otherwise) of the address of such holder.
Tenant further agrees that if Landlord fails to cure such default within the time provided for in
this Lease, then Tenant will provide written notice of such failure to such holder and such holder
will have an additional 30 days after receipt of such notice within which to cure the default (but
shall not be obligated to cure the default). If the default cannot be cured within the additional
30 day period, then the holder will have such additional time as may be necessary to effect the
cure if, within the 30 day period, the holder has promptly commenced and is diligently pursuing the
cure (including without limitation commencing foreclosure proceedings if necessary to effect the
cure).

     15.4. Estoppel Certificates.

          15.4.1. Contents. Upon Landlord’s written request, Tenant will execute, acknowledge and
deliver to Landlord a written statement in form satisfactory to Landlord certifying: (a) that this
Lease is unmodified and in full force and effect (or, if there have been any modifications, that
the Lease is in full force and effect as modified, and stating the modifications); (b) that this
Lease has not been canceled or terminated; (c) the last date of payment of Rent and the time period
covered by such payment; (d) whether there are then existing any breaches or defaults by Landlord
under this Lease known to Tenant and, if so, specifying the same; (e) specifying any existing
claims or defenses in favor of Tenant against the enforcement of this Lease; (f) that Tenant has
accepted the Premises and that Landlord has no outstanding construction or payment obligations with
respect to preparation of the Premises for Tenant’s occupancy (or stating the specific nature and
amount of any such outstanding obligations); (g) that Tenant has no option to purchase the Premises
or any part of the Property; and (h) such other factual statements as Landlord, or any lender,
prospective lender, investor or purchaser may reasonably request. Tenant will deliver the properly
signed statement to Landlord within 20 days after receipt of Landlord’s request. Landlord may give
any such statement by Tenant to any lender, prospective lender, investor or purchaser of all or any
part of the Property and any such party may conclusively rely upon such statement as true and
correct.

          15.4.2. Failure to Deliver. If Tenant does not timely deliver the properly signed statement
referenced in Section 15.4.1 to Landlord, and if such failure continues for more than 2 Business
Days after Tenant’s receipt of written notice from Landlord of such failure, then such failure
shall constitute an Event of Default under this Lease. Further, if Tenant fails to timely deliver
the properly signed statement within such 2-day period, then Landlord and any lender, prospective
lender, or purchaser may conclusively presume and rely, except as otherwise represented by
Landlord, (i) that the terms and provisions of this Lease have not been changed; (ii) that this
Lease has not been canceled or terminated; (iii) that not more than one month’s Rent has been paid
in advance; (iv) that Tenant has accepted the Property and that Landlord has no outstanding
construction or payment obligations with respect to preparation of the Property for Tenant’s
occupancy; (v) that Tenant has no option to purchase the Property or any part of the Property; and
(vi) that Landlord is not in default

21

 

in the performance of any of its obligations under this Lease.
In such event, Tenant is estopped from denying the truth of such facts.

ARTICLE 16

TERMINATION OF LEASE

     16.1. Surrender of Premises. Tenant will surrender the Premises to Landlord at the expiration
or earlier termination of this Lease in good order, condition and repair (reasonable wear and tear,
permitted Alterations, and damage by casualty or condemnation excepted), and will surrender all
keys to the Premises to Landlord at the place then fixed for Tenant’s payment of Basic Rent or as
Landlord otherwise directs. Tenant will also inform Landlord of all combinations on locks, safes
and vaults, if any, in the Premises or on the Property. Tenant will at such time remove all of its
property from the Premises and, if Landlord required as a condition of its consent, all specified
Alterations carried out by Tenant in the Premises. Tenant will promptly repair any damage to the
Premises caused by such removal. If Tenant does not surrender the Premises in accordance with this
section, Tenant will indemnify, defend (with counsel reasonably acceptable to Landlord), protect
and hold harmless Landlord from and against any Claim resulting from Tenant’s delay in so
surrendering the Premises, including, without limitation, any Claim made by any succeeding occupant
founded on such delay. All property of Tenant not removed on or before the last day of the Term is
deemed abandoned. If Tenant fails to remove all of Tenant’s property from the Premises upon
termination of this Lease, then Tenant shall be deemed to have appointed Landlord as Tenant’s agent
to remove, at Tenant’s sole cost and expense, all of Tenant’s property from the Premises upon
termination of this Lease and to cause its transportation and storage for Tenant’s benefit, all at
the sole cost and risk of Tenant, and Landlord will not be liable for damage, theft,
misappropriation or loss thereof or in any manner in respect thereto.

     16.2. Holding Over. If Tenant possesses the Premises after the Term expires (or after this
Lease is otherwise terminated) without executing a new lease but with Landlord’s written
consent, then Tenant is deemed to be occupying the Premises as a tenant from month-to-month,
subject to all provisions, conditions and obligations of this Lease applicable to a month-to-month
tenancy, except that (a) Rent for each month during the hold-over period shall be equal to 125% of
the Rent for the month immediately preceding the commencement of the hold-over period, and (b)
either Landlord or Tenant may terminate the month-to-month tenancy at any time upon 30 days prior
written notice to the other party. If Tenant possesses the Premises after the Term expires (or is
otherwise terminated) without executing a new lease and without Landlord’s written consent,
then Tenant is deemed to be occupying the Premises without claim of right (but subject to all terms
and conditions of this Lease) and, in addition to Tenant’s liability for failing to surrender
possession of the Premises as provided in Section 16.1, Tenant shall also pay to Landlord a charge
for each day of occupancy after expiration of the Term in an amount equal to 200% of the Rent for
the last month of the expired Term (on a daily basis).

ARTICLE 17

ADDITIONAL PROVISIONS

     17.1. Tenant Improvements.

          17.1.1. Tenant Improvements. Landlord is providing the basic Premises in its current “AS IS”
condition, without representation or warranty of any kind, and Landlord shall have no obligation to
make any modifications or alterations to the Premises except as specifically set forth in this
Section 17.1. Notwithstanding the foregoing, Landlord agrees at its sole cost to (i) construct
demising walls to separate the Premises from the remainder of the Building, (ii) install separate
meters to measure the gas and electricity being used at the Premises; and (iii) physically separate
the fire sprinkler system serving the Premises (the “Landlord Improvements”). Landlord shall
complete the Landlord Improvements in compliance with all applicable Laws. Item (iii) of the
Landlord improvements shall include physically repositioning any fire sprinkler heads required for
the construction of the demising walls; item (iii) of the Landlord Improvements shall specifically
exclude any other alterations to the fire sprinkler system in the Premises, or any alterations to
the fire sprinkler system in the Premises that are required to comply with any Laws;
notwithstanding anything to the contrary in this Lease, any such alterations to the fire sprinkler
system in the Premises, to the extent required by Tenant or applicable Laws, shall be completed by
Tenant at its sole cost and expense. Landlord agrees to coordinate the tenant improvements (the
“Tenant Improvements”) described on Exhibit 17.1.1 attached hereto. The costs of the

22

 

Tenant Improvements shall be the sole responsibility of Tenant; provided, however, that Landlord
shall provide Tenant with an allowance of up to $120,000.00 (the “Allowance”). Landlord
shall use the Allowance to pay: (1) all costs and expenses directly incurred by Landlord, if any,
in the construction of the Tenant Improvements (including all applicable licenses and permits); (2)
all costs and expenses directly incurred by Landlord for the preparation or review of all plans and
specifications for the Tenant Improvements; and (3) a construction supervision fee to Landlord’s
construction agent, CB Richard Ellis, equal to 6% of the actual costs of construction of the Tenant
Improvements. If the cost of the Tenant Improvements exceeds the Allowance, then Tenant shall pay
such excess cost to Landlord as Additional Rent pursuant to Section 2.2. If the cost of the Tenant
Improvements is less than the Allowance, then Tenant shall not be entitled to any payment or credit
for such excess amount. Any other improvements made to the Premises by Tenant shall be at Tenant’s
sole expense, and shall be deemed an “Alteration” subject to Article 8 of this Lease.

          17.1.2. Substantial Completion. Landlord will use commercially reasonable efforts to achieve
Substantial Completion of the Tenant Improvements as soon as possible after the Effective Date,
subject to Tenant Delays and delays caused by Force Majeure.

          17.1.3. Punch List. Promptly after Substantial Completion of the Tenant Improvements,
Landlord and Tenant will inspect the Premises and develop a Punch List. Landlord will complete (or
repair, as the case may be) the items described on the Punch List with commercially reasonable
diligence and speed, subject to delays caused by Tenant Delays and Force Majeure. If Tenant
refuses to inspect the Premises with Landlord within 5 days of Landlord’s written request for an
inspection, then Tenant is deemed to have accepted the Premises as delivered.

     17.2. Parking Facilities. Tenant shall have the right of non-exclusive use, in common with
others, of the unrestricted automobile parking areas located at the Property. Landlord agrees that
Tenant shall have equal access to the unrestricted automobile parking areas located at the Property
with any other tenants of the Building. Tenant acknowledges that Landlord has designated the
parking area identified on attached Exhibit 17.2.A as restricted; neither Tenant nor any of
its employees, agents, or visitors shall use said restricted parking area. Landlord agrees that
the parking area identified on attached Exhibit 17.2.B shall be dedicated for the use of
Tenant. Neither Tenant, nor any of its employees, agents, or visitors shall use any of the parking
areas for overnight storage of vehicles. Tenant acknowledges and agrees that Landlord will not be
responsible for any loss, theft or damage to vehicles, or the contents thereof, parked or left in
the parking areas of the Property.

ARTICLE 18

MISCELLANEOUS PROVISIONS

     18.1. Notices. All Notices must be in writing and must be sent by personal delivery, by
nationally-recognized overnight express delivery service, or by U.S. registered or certified mail
(return receipt requested, postage prepaid), to the addresses specified in the Basic Terms or at
such other place as either party may designate to the other party by written notice given in
accordance with this section. Such notices shall be deemed received (a) as of the date of
delivery, if delivered by hand by 4:00 p.m. Central on a Business Day (if hand delivered after said
time, any such notice shall be deemed received as of the first Business Day after delivery), (b) as
of the next Business Day, if tendered to an overnight express delivery service by the applicable
deadline for overnight service, or (c) as of the fifth Business Day after mailing, if sent by
regular mail.

     18.2. Transfer of Landlord’s Interest. If Landlord Transfers any interest in the Premises for
any reason other than collateral security purposes, and provided the transferee agrees in writing
to assume all of the Landlord’s obligations under this Lease that accrue after the date of
Transfer, then the transferor is automatically relieved of all obligations on the part of Landlord
accruing under this Lease from and after the date of the Transfer, provided that the transferor
will deliver to the transferee any funds the transferor holds in which Tenant has an interest. For
a period of 12 months after the Transfer, the transferor shall remain liable for any obligations
(including but not limited to indemnification obligations, which shall survive the Transfer for a
period of 12 months) and outstanding disputes accruing under this Lease prior to the date of the
Transfer. Landlord’s covenants and obligations in this Lease bind each successive Landlord only
during and with respect to its respective period of ownership. However, notwithstanding any such
Transfer, the transferor remains entitled to the benefits of

23

 

Tenant’s indemnity and insurance
obligations (and similar obligations) under this Lease with respect to matters arising or accruing
during the transferor’s period of ownership.

     18.3. Successors. The covenants and agreements contained in this Lease bind and inure to the
benefit of Landlord, its successors and assigns, bind Tenant and its successors and assigns and
inure to the benefit of Tenant and its permitted successors and assigns.

     18.4. Captions and Interpretation. The captions of the articles and sections of this Lease
are to assist the parties in reading this Lease and are not a part of the terms or provisions of
this Lease. Whenever required by the context of this Lease, the singular includes the plural and
the plural includes the singular.

     18.5. Relationship of Parties. This Lease does not create the relationship of principal and
agent, or of partnership, joint venture, or of any association or relationship between Landlord and
Tenant other than that of landlord and tenant.

     18.6. Entire Agreement; Amendment. The Basic Terms and all exhibits, addenda and schedules
attached to this Lease are incorporated into this Lease as though fully set forth in this Lease and
together with this Lease contain the entire agreement between the parties with respect to the
improvement and leasing of the Premises. All preliminary and contemporaneous negotiations,
including, without limitation, any letters of intent or other proposals and any drafts and related
correspondence, are merged into and superseded by this Lease. No subsequent alteration, amendment,
change or addition to this Lease (other than to the Building Rules) is binding on Landlord or
Tenant unless it is in writing and signed by the party to be charged with performance.

     18.7. Severability. If any covenant, condition, provision, term or agreement of this Lease
is, to any extent, held invalid or unenforceable, the remaining portion thereof and all other
covenants, conditions, provisions, terms and agreements of this Lease, will not be affected by such
holding, and will remain valid and in force to the fullest extent permitted by law.

     18.8. Survival. The obligations of both parties under this Lease (together with interest on
payment obligations at the Maximum Rate) that accrue prior to the expiration or other termination
of this Lease shall survive the expiration or other termination of this Lease. Further, the
release, indemnification, defense and hold harmless obligations of both parties under this Lease
shall survive the expiration or other termination of this Lease, without limitation.

     18.9. Attorneys’ Fees. If either Landlord or Tenant commences any litigation or judicial
action to determine or enforce any of the provisions of this Lease, the prevailing party in any
such litigation or judicial action is entitled to recover all of its costs and expenses (including,
but not limited to, reasonable attorneys’ fees, costs and expenditures) from the non-prevailing
party.

     18.10. Brokers. Landlord and Tenant each represents and warrants to the other that it has not
had any dealings with any realtors, brokers, finders or agents in connection with this Lease
(except as may be specifically set forth in the Basic Terms) and agrees to release, indemnify,
defend and hold the other harmless from and against any Claim based on the failure or alleged
failure to pay any realtors, brokers, finders or agents (other than any brokers specified in the
Basic Terms) and from any cost, expense or liability for any compensation, commission or charges
claimed by any realtors, brokers, finders or agents (other than any brokers specified in the Basic
Terms) claiming by, through or on behalf of it with respect to this Lease or the negotiation of
this Lease.

     18.11. Governing Law. This Lease is governed by, and must be interpreted under, the internal
laws of the State. Any suit arising from or relating to this Lease must be brought in the County;
Landlord and Tenant each waive the right to bring suit elsewhere.

     18.12. Time is of the Essence. Time is of the essence with respect to the performance of
every provision of this Lease in which time of performance is a factor.

24

 

     18.13. Authority. Landlord and Tenant, and each individual signing this Lease on behalf of
either Landlord or Tenant represents and warrants that they are duly authorized to sign on behalf
of and to bind said party and that this Lease is a duly authorized obligation of said party.

     18.14. Force Majeure. If Landlord is delayed or prevented from performing any act required in
this Lease (excluding, however, the payment of money) by reason of either Tenant Delay or Force
Majeure, then Landlord’s performance of such act is excused for the period of delay caused by such
Tenant Delay or Force Majeure, and the period of the performance of any such act will be extended
for a period equivalent to such period. If Tenant is delayed or prevented from performing any act
required in this Lease (excluding, however, the payment of money) by reason of Force Majeure, then
Tenant’s performance of such act is excused for the period of delay caused by such Force Majeure,
and the period of the performance of any such act will be extended for a period equivalent to such
period.

     18.15. No Recording. Tenant will not record this Lease or a Memorandum of this Lease without
Landlord’s prior written consent, which consent Landlord may grant or withhold in its sole and
absolute discretion.

     18.16. Nondisclosure of Lease Terms. The terms and conditions of this Lease constitute
proprietary information of Landlord that Tenant will keep confidential. Tenant’s disclosure of the
terms and conditions of this Lease could adversely affect Landlord’s ability to negotiate other
leases and impair Landlord’s relationship with other tenants. Accordingly, Tenant, without
Landlord’s consent (which consent Landlord may grant or withhold in its sole and absolute
discretion), will not directly or indirectly disclose the terms and conditions of this Lease to any
other tenant or prospective tenant of the Building or to any other person or entity other than
Tenant’s employees and agents who have a legitimate need to know such information (and who will
also keep the same in confidence).

     18.17. Financial Disclosure. At the request of Landlord, from time to time during the Term,
Tenant shall provide Landlord with any reasonable financial records, including financial statements
or federal tax returns of Tenant prepared in accordance with generally accepted accounting
principles for the prior two fiscal years of operation of Tenant. Landlord shall retain such
financial disclosure in confidence but shall be permitted to provide copies to its mortgagees for
the purpose of financing the Building or to prospective purchasers of the Building.

     18.18. Construction of Lease and Terms. The terms and provisions of this Lease represent the
results of negotiations between Landlord and Tenant, each of which are sophisticated parties and
each of which has been represented or been given the opportunity to be represented by counsel of
its own choosing, and neither of which has acted under any duress or compulsion, whether legal,
economic or otherwise. Consequently, the terms and provisions of this Lease must be interpreted
and construed in accordance with their usual and customary meanings, and Landlord and Tenant each
waive the application of any rule of law that ambiguous or conflicting terms or provisions
contained in this Lease are to be interpreted or construed against the party who prepared the
executed Lease or any earlier draft of the same. Landlord’s submission of this instrument to
Tenant for examination or signature by Tenant does not constitute a reservation of or an option to
lease and is not effective as a lease or otherwise until Landlord and Tenant both execute and
deliver this Lease. The parties agree that, regardless of which party provided the initial form of
this Lease, drafted or modified one or more provisions of this Lease, or compiled, printed or
copied this Lease, this Lease is to be construed solely as an offer from Tenant to lease the
Premises, executed by Tenant and provided to Landlord for acceptance on the terms set forth in this
Lease, which acceptance and the existence of a binding agreement between Tenant and Landlord may
then be evidenced only by Landlord’s execution of this Lease.

25

 

     Landlord and Tenant each caused this Lease to be executed and delivered by its duly authorized
representative to be effective as of the Effective Date.

	 
	LANDLORD:

	 

	IRET PROPERTIES, A NORTH DAKOTA LIMITED PARTNERSHIP

By: IRET, Inc., its general partner

	 	 	 	 	 
	By:
	 	/s/ Thomas A. Wentz, Jr. 	 	 
	 

	 	 

	 	 
	Print Name: Thomas A. Wentz, Jr.	 	 
	Print Title: Senior Vice President
	 	 
	DATED:	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	By:
	 	/s/ Charles A. Greenberg 	 	 
	 

	 	 	 	 
	Print Name: Charles A. Greenberg	 	 
	Print Title: Vice President	 	 
	 
	 	 	 	 
	TENANT:	 	 
	 
	 	 	 	 
	AM RETAIL GROUP, INC., a Delaware corporation	 	 
	 
	 	 	 	 
	By:
	 	/s/ Joel Waller 	 	 
	 

	 	 	 	 
	Print Name: Joel Waller	 	 
	Print Title: President	 	 

26

 

EXHIBIT “1” TO LEASE

Definitions

“Additional Rent” means any charge, fee or expense (other than Basic Rent), however denoted, that
is payable by Tenant under this Lease.

“Affiliate” means any person or entity that, directly or indirectly, controls, is controlled by or
is under common control with Tenant. For purposes of this definition, “control” means possessing
the power to direct or cause the direction of the management and policies of the entity by the
ownership of a majority of the voting securities of the entity.

“Alteration” means any change, alteration, addition or improvement to the Premises or Property.

“Bankruptcy Code” means the United States Bankruptcy Code as the same now exists and as the same
may be amended, including any and all rules and regulations issued pursuant to or in connection
with the United States Bankruptcy Code now in force or in effect after the Effective Date.

“Basic Rent” means the basic rent amounts specified in the Basic Terms.

“Basic Terms” means the terms of this Lease identified as the Basic Terms before Article 1 of the
Lease.

“Building” means the building(s) now existing on the Land, as identified in the Basic Terms.

“Business Days” means any day other than Saturday, Sunday or a legal holiday in the State.

“City” means the City of Brooklyn Park, Minnesota.

“Claims” means all claims, actions, demands, liabilities, damages, costs, penalties, forfeitures,
losses or expenses, including, without limitation, reasonable attorneys’ fees and the costs and
expenses of enforcing any indemnification, defense or hold harmless obligation under the Lease.

“Commencement Date” means the Commencement Date specified in the Basic Terms.

“Common Area” means the telecommunications room, parking area, driveways, and other areas of the
Property Landlord may designate from time to time as common area available to all tenants.

“Condemning Authority” means any person or entity with a statutory or other power of eminent
domain.

“County” means the County in which the Property is located in.

“Discount Rate” means 1% per annum plus the prevailing “Primary Credit” discount rate established
by the Federal Reserve Bank for the district in which the Property is located on advances made to
member banks under the Federal Reserve Act.

“Effective Date” means the date Landlord executes this Lease, as indicated on the signature page.

“Event of Default” means the occurrence of any of the events specified in Section 14.1 of the
Lease.

“Expenses” means the total amount of Property Taxes and Operating Expenses due and payable with
respect to the Property during any calendar year of the Term.

“Force Majeure” means acts of God; strikes; lockouts; inability to procure materials (despite
commercially reasonable pursuit of such materials); governmental laws or regulations; casualty;
orders or directives of any legislative, administrative, or judicial body or any governmental
department; inability to obtain any governmental licenses, permissions or authorities (despite
commercially reasonable pursuit of such licenses, permissions or authorities); and other similar or
dissimilar causes beyond Landlord’s or Tenant’s reasonable control.

 

 

“Hazardous Materials” means any of the following, in any amount: (a) any petroleum or petroleum
product, asbestos in any form, urea formaldehyde and polychlorinated biphenyls; (b) any radioactive
substance; (c) any toxic, infectious, reactive, corrosive, ignitable or flammable chemical or
chemical compound; and (d) any chemicals, materials or substances, whether solid, liquid or gas,
defined as or included in the definitions of “hazardous substances,” “hazardous wastes,” “hazardous
materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic substances,” “toxic
pollutants,” “solid waste” or words of similar import in any federal, state or local statute, law,
ordinance or regulation now existing or existing on or after the Effective Date as the same may be
interpreted by government offices and agencies.

“Hazardous Materials Laws” means any federal, state or local statutes, laws, ordinances or
regulations now existing or existing after the Effective Date that control, classify, regulate,
list or define Hazardous Materials.

“Land” means the parcel(s) of land on which the Building is located. In the event the Building is
part of a designated complex, then “Land” shall also mean all associated parcels of land owned by
Landlord, all easements appurtenant thereto, and all access drives serving the complex. Subject to
the terms and conditions of any applicable Permitted Encumbrances, and such other restrictions as
Landlord may impose during the Lease Term, Tenant will have the nonexclusive right to use the
described access-ways within the complex, as the same may exist from time to time.

“Landlord” means only the owner or owners of the Property at the time in question. In any
provision relating to the conduct, acts or omissions of “Landlord,” the term “Landlord” means the
landlord identified in the Lease and such landlord’s officers and employees, and (if any) the
Property Manager.

“Landlord Parties” means Landlord and Property Manager and their respective officers, directors,
partners, shareholders, members and employees.

“Laws” means any law, regulation, rule, order, statute, ordinance or codes of any governmental or
private entity in effect on or after the Effective Date and applicable to the Property or the use
or occupancy of the Property, including, without limitation, Hazardous Materials Laws, Building
Rules and Permitted Encumbrances.

“Lease” means this Lease Agreement, as the same may be amended or modified after the Effective
Date.

“Lease Year” means each consecutive 12 month period during the Term, commencing on the Commencement
Date, except that if the Commencement Date is not the first day of a calendar month, then the first
Lease Year is a period beginning on the Commencement Date and ending on the last day of the
calendar month in which the Commencement Date occurs plus the following 12 consecutive calendar
months.

“Maximum Rate” means interest at a rate equal to the lesser of (a) 18% per annum or (b) the maximum
interest rate permitted by law.

“Mortgage” means any mortgage, deed of trust, security interest or other security document of like
nature that at any time may encumber all or any part of the Property and any replacements,
renewals, amendments, modifications, extensions or refinancings thereof, and each advance
(including future advances) made under any such instrument.

“Net Rent” means all rental Landlord actually receives from any reletting of all or any part of the
Premises, less any indebtedness from Tenant to Landlord other than Rent (which indebtedness is paid
first to Landlord) and less the Re-entry Costs (which costs are paid second to Landlord).

“Notices” means all notices, demands or requests that may be or are required to be given, demanded
or requested by either party to the other as provided in the Lease.

“Operating Expenses” means all expenses Landlord incurs in connection with maintaining, repairing
and operating the Property, as reasonably determined by Landlord in accordance with generally
accepted accounting principles consistently followed. “Operating Expenses” shall include without
limitation the following: utility

2

 

charges (including without limitation electricity, water, sewer, gas, fuel and steam); lighting; window
washing; the costs and expenses incurred in connection with the provision of the utilities and
services set forth in Section 6.1 (including without limitation the maintenance and repair of the
Building systems furnishing such utilities and services); costs and expenses incurred in connection
with Landlord’s obligations under Section 7.1; Landlord’s costs and expenses for insurance, as
specified in Section 10.2; property association fees, dues, and any other payments under any of the
Permitted Encumbrances (except the Mortgage) affecting the Property; wages payable to persons whose
duties are connected with maintaining and operating the Property (but only for the portion of such
persons’ time allocable to the Property), together with all payroll taxes, unemployment insurance,
vacation allowances and disability, pension, profit sharing, hospitalization, retirement and other
so-called “fringe benefits” paid in connection with such persons (allocated in a manner consistent
with such persons’ wages); amounts paid to contractors or subcontractors for work or services
performed in connection with maintaining, repairing and operating the Property; all costs of
uniforms, supplies and materials used in connection with maintaining, repairing and operating the
Property; all services, supplies, replacements or other expenses for maintaining, repairing and
operating the Property; costs of complying with Laws; reasonable management fees (not to exceed 5%
of gross rents); expenses Landlord incurs in connection with public sidewalks adjacent to the
Property, any pedestrian walkway system (either above or below ground) and any other public
facility to which Landlord or the Property is from time to time subject in connection with
operating the Property; and such other expenses as may ordinarily be incurred in connection with
maintaining, repairing and operating a property similar to the Property. Notwithstanding anything
to the contrary in this Lease, if Landlord makes a capital improvement to the Property that would
be deemed a capital expense under generally accepted accounting principles, then Landlord may only
include in Operating Expenses reasonable charges for interest paid on the investment and reasonable
charges for depreciation of the investment, so as to amortize the investment over the reasonable
useful life of the improvement on a straight line basis. The term “Operating Expenses” does not
include:

	 	i.	 	The costs of repair, restoration or other work occasioned by any insured
casualty (except for deductibles as provided in Section 10.2).
	 
	 	ii.	 	Interest, principal, points and fees, amortization or any other costs
associated with the Mortgage, and all costs and expenses associated with any such debt,
irrespective of whether this Lease is subject or subordinate thereto.
	 
	 	iii.	 	Expenses or Allowances for depreciation or amortization (except as may be
expressly allowed by this Lease, including without limitation the amortization of
capital improvements as noted above).
	 
	 	iv.	 	Any bad debt loss, or any reserve for bad debt loss.
	 
	 	v.	 	Compensation (including benefits) paid to any employee of Landlord or Property
Manager above the grade of building superintendent or manager.
	 
	 	vi.	 	Expenses to prepare, renovate, or perform any other work in any space leased to
an existing or new tenant of the Building, or to prepare, renovate or perform work in
the Building to accommodate additional tenants.
	 
	 	vii.	 	Expenses to retain existing tenants or to lease space to new tenants, including
without limitation legal fees, leasing commissions, advertising, and promotional
expenditures.
	 
	 	viii.	 	Expenses to resolve disputes with existing tenants, or to negotiate lease
terms with prospective tenants.
	 
	 	ix.	 	The costs of any services or supplies to the extent that such costs are
reimbursed to Landlord by tenants of the Building (other than by virtue of the pass
through of Operating Expenses to tenants), or by other third parties.
	 
	 	x.	 	The costs of any repair, restoration or other work occasioned by a condemnation
proceeding, if and to the extent Landlord has actually been reimbursed by condemnation
proceeds.

3

 

	 	xi.	 	Rent payable by Landlord pursuant to any ground or air-rights lease affecting
the Property, irrespective of whether this Lease is subject or subordinate thereto.
	 
	 	xii.	 	Fees or sums paid to an affiliate of Landlord, to the extent that such fees
exceed the customary amount charged by independent contractors and suppliers for the
services or supplies provided.
	 
	 	xiii.	 	Expenses for any necessary replacement of any item to the extent that it is
covered under warranty.
	 
	 	xiv.	 	Costs of sculptures, paintings and other objects of art.
	 
	 	xv.	 	Charitable or political contributions by Landlord.
	 
	 	xvi.	 	Interest or penalties assessed against Landlord due to the late payment of any Expenses.
	 
	 	xvii.	 	Expenses for any item or service that Tenant pays directly to a third party,
or separately reimburses to Landlord.
	 
	 	xviii.	 	The costs of repairs to the extent such repairs are necessitated by Landlord’s
negligence or willful misconduct.
	 
	 	xix.	 	The costs of any services provided to other tenants of the Property in excess
of the services provided to Tenant under this Lease.
	 
	 	xx.	 	Landlord’s general corporate overhead and administrative expenses, except to
the extent related (or reasonably allocated) to the Property, and except as expressly
provided in this Lease.
	 
	 	xxi.	 	Personal property taxes of Landlord for equipment or items to the extent not
used directly in the operation or maintenance of the Property.
	 
	 	xxii.	 	Landlord’s income, franchise, estate or inheritance taxes.

“Permitted Encumbrances” means all Mortgages, liens, easements, declarations, encumbrances,
covenants, conditions, reservations, restrictions, and other matters now or after the Effective
Date affecting title to the Property.

“Property” means, collectively, the Land, Building (including the Premises) and all other
improvements on the Land.

“Property Manager” means the property manager specified in the Basic Terms, or any other agent
Landlord may appoint from time to time to manage the Property.

“Property Taxes” means any general real property tax, improvement tax, assessment, special
assessment, reassessment, commercial rental tax, in lieu tax, levy, charge, penalty or similar
imposition imposed by any authority having the direct or indirect power to tax, including but not
limited to, (a) any city, county, state or federal entity, (b) any school, agricultural, lighting,
drainage or other improvement or special assessment district, (c) any governmental agency, or
(d) any private entity having the authority to assess the Property under any of the Permitted
Encumbrances. The term “Property Taxes” includes all charges or burdens of every kind and nature
Landlord incurs in connection with using, occupying, owning, operating, leasing or possessing the
Property, without particularizing by any known name and whether any of the foregoing are general,
special, ordinary, extraordinary, foreseen or unforeseen; any tax or charge for fire protection,
street lighting, streets, sidewalks, road maintenance, refuse, sewer, water or other services
provided to the Property and any personal property taxes on personal property used on the Property.
The term “Property Taxes” does not include Landlord state or federal income, franchise, estate or
inheritance taxes. If Landlord is entitled to pay, and elects to pay, any of the above listed
assessments or charges in installments over a period of two or more calendar years, then only such
installments of the assessments or charges (including interest thereon) as are actually paid in a
calendar year will

4

 

be included within the term “Property Taxes” for such calendar year. If any of
Tenant’s trade fixtures and other personal property are taxed with the Property, Tenant will pay the taxes attributable to Tenant’s
trade fixtures and other personal property to Landlord as Additional Rent. Notwithstanding
anything to the contrary in this Lease, Tenant shall pay Property Taxes pursuant to the existing
sublease, as amended, as are due and owing up to the Commencement Date of this Lease; thereafter,
Tenant will pay a prorata share pursuant to this Lease.

“Punch List” means a list of Tenant Improvements items that were either (a) not properly completed
by Landlord, or (b) in need of repair, which list is prepared in accordance with Section 17.1.

“Re-entry Costs” means all reasonable costs and expenses Landlord incurs re-entering or reletting
all or any part of the Premises, including, without limitation, all costs and expenses Landlord
incurs (a) maintaining or preserving the Premises after an Event of Default; (b) recovering
possession of the Premises, removing persons and property from the Premises (including, without
limitation, court costs and reasonable attorney’s fees) and storing such property; (c) reletting,
renovating or altering the Premises, but only to the extent reasonably required to relet the
Premises; and (d) real estate commissions, reasonable advertising expenses and similar expenses
paid or payable in connection with reletting all or any part of the Premises. “Re-entry Costs”
also includes the value of free rent and other concessions Landlord gives in connection with
re-entering or reletting all or any part of the Premises.

“Rent” means, collectively, Basic Rent and Additional Rent.

“State” means the State in which the Property is located.

“Structural Alterations” means any Alterations involving the structural, mechanical, electrical,
plumbing, fire/life safety or heating, ventilating and air conditioning systems of the Building.

“Substantial Completion” means the date that the improvements or alterations are substantially
complete (as evidenced by material compliance with applicable construction permits), and Tenant is
reasonably able to use the Premises for the Permitted Use.

“Taking” means the exercise by a Condemning Authority of its power of eminent domain on all or any
part of the Property, either by accepting a deed in lieu of condemnation or by any other manner.

“Tenant” means the tenant identified in the Lease and such tenant’s permitted successors and
assigns. In any provision relating to the conduct, acts or omissions of “Tenant,” the term
“Tenant” means the tenant identified in the Lease and such tenant’s agents, employees, contractors,
invitees, successors, assigns and others using the Premises or on the Property with Tenant’s
expressed or implied permission.

“Tenant Delays” means any delays caused or contributed to by Tenant.

“Tenant Parties” means Tenant and its officers, directors, partners, shareholders, members and
employees. “Tenant Parties” specifically excludes Tenant’s agents, contractors, invitees, and
others using the Premises or on the Property with Tenant’s expressed or implied permission.

“Tenant’s Share of Expenses” means the product obtained by multiplying the amount of Expenses for
the period in question by the Tenant’s Share of Expenses Percentage.

“Tenant’s Share of Expenses Percentage” means the percentage specified in the Basic Terms, as such
percentage may be adjusted in accordance with the terms and conditions of this Lease.

“Term” means the initial term of this Lease specified in the Basic Terms and, if applicable, any
extension term then in effect.

“Transfer” means an assignment, mortgage, pledge, transfer, sublease or other encumbrance or
conveyance (voluntarily, by operation of law or otherwise) of this Lease or the Premises or any
interest in this Lease or the Premises. The term “Transfer” also includes any assignment,
mortgage, pledge, transfer or other encumbering or

5

 

disposal (voluntarily, by operation of law or otherwise) of any ownership interest in Tenant that
results or could result in a change of control of Tenant.

6

 

EXHIBIT “2.1” TO LEASE

Premises (First Floor)

 

 

EXHIBIT “2.2” TO LEASE

Premises (Mezzanine)

 

 

EXHIBIT “1.2.3” TO LEASE

Commencement Date Memorandum

          THIS MEMORANDUM is entered into effective as of the ___ day
of                    , 2009, by and
between IRET PROPERTIES, A NORTH DAKOTA LIMITED PARTNERSHIP (“Landlord”) and AM RETAIL GROUP, INC.,
a Delaware corporation (“Tenant”). Landlord and Tenant are party to a certain Lease Agreement
dated as of the ___ day of February, 2009 (“Lease”), relating to that certain premises
(“Premises”) located in the building located at 7401 Boone Avenue North, Brooklyn Park, Minnesota
(“Building”). Pursuant to Section 1.2.3 of the Lease, Landlord and Tenant acknowledge and agree as
follows:

	 	1.	 	The Commencement Date is
                                        
, 2009. The initial Term of the Lease
shall expire on
                                        
, 2012, unless the Lease is extended or sooner
terminated in accordance with the terms and conditions of the Lease.
	 
	 	2.	 	Tenant shall pay Basic Rent during the initial Term in accordance with the following
schedule:

	 	 	 	 	 	 	 	 	 
	Months	 	Total Annualized	 	Total Monthly
	 
	 	$	579,797.24	 	 	$	48,316.44	 
	 
	 	$	596,850.10	 	 	$	49,737.51	 
	 
	 	$	615,453.22	 	 	$	51,287.77	 

	 	3.	 	Subject to the conditions and limitations set forth in the Lease, Tenant must
exercise its right to the Extension Term, if at all, by notifying Landlord on or before
                    . Said Extension Term shall commence on
                    , and shall
terminate on                     .

          All capitalized terms not otherwise defined in this memorandum have the meanings ascribed to
them in the Lease. Landlord and Tenant, and each individual signing this memorandum on behalf of
each party, represents and warrants that they are duly authorized to sign on behalf of and to bind
said party. This memorandum may be executed in counterparts, each of which is an original and all
of which constitute one instrument.

LANDLORD:

IRET PROPERTIES, A NORTH DAKOTA LIMITED PARTNERSHIP

By: IRET, Inc., its sole General Partner

By:
                                        
                    

Print Name:

Print Title:

TENANT:

AM RETAIL GROUP, INC., a Delaware corporation

By:
                                        
                    

Print Name:

Print Title:

 

 

EXHIBIT “1.3” TO LEASE

Identification of Hallway Area

 

 

EXHIBIT “4.3” TO LEASE

Building Rules

          1. Wherever in these Building Rules the word “Tenant” occurs, it is understood and agreed that
it shall also mean Tenant’s assigns, employees, agents, invitees, and visitors. Wherever the word
“Landlord” occurs, it is understood and agreed that it shall also mean Landlord’s assigns,
employees, and agents.

          2. Tenant shall not bring into the Property any inflammables (including without limitation
gasoline, kerosene, naphtha and benzene), explosives, or any other article of intrinsically
dangerous nature.

          3. Tenant shall not obstruct sidewalks, entrances, passages, corridors, vestibules, halls, or
stairways in and about the Property which are used in common with other tenants and their servants,
employees, customers, guests and invitees, and which are not a part of the Premises of Tenant.

          4. Tenant acknowledges and agrees that the Building is “smoke free,” and that no smoking of
tobacco products shall be allowed within the Building.

          5. The Premises shall not be used for cooking (except for microwaves), lodging, sleeping or
for any immoral or illegal purpose. No animals are allowed in the Building.

          6. Tenant is solely responsible for protecting the Premises and Tenant’s property from theft
and robbery. All entrance doors to the Premises shall be locked when the Premises are not in use.
No locks or similar devices shall be attached to any door or window, except as provided by Landlord
or otherwise approved in writing by Landlord. Landlord’s consent to the installation of any
additional locks or similar devices may be conditioned upon (among other things), Tenant providing
Landlord with keys to all such additional locks. Upon termination of this Lease or of the Tenant’s
possession, the Tenant shall surrender all keys of the Premises and shall provide to Landlord all
combination locks on safes, cabinets and vaults.

          7. Tenant shall not waste electricity, water, heat or air conditioning, and shall cooperate
fully with Landlord to insure the most effective and efficient operation of the Building’s
mechanical systems.

          8. All loading, unloading, receiving or delivery of goods, supplies or disposal of garbage or
refuse shall be made only through entryways provided for such purposes. Tenant shall be
responsible for any damage to the Building or the Property of its employees or others and injuries
sustained by any person whomsoever resulting from the use or moving of such articles in or out of
the leased Premises, and shall make all repairs and improvements required by Landlord or
governmental authorities in connection with the use or moving of such articles.

          9. Tenant, its servants, employees, customers, invitees and guests shall, when using the
common parking facilities, if any, in and around the Building, observe and obey all signs regarding
fire lanes and no parking zones, and when parking always park between the designated lines.
Landlord reserves the right to tow away, at the expense of the owner, any vehicle which is
improperly parked or parked in a no parking zone. All vehicles shall be parked at the sole risk of
the owner, and Landlord assumes no responsibility for any damage to or loss of vehicles. No
vehicles shall be parked overnight.

          10. Tenant shall observe faithfully and comply strictly with the foregoing rules and
regulations and such other and further appropriate rules and regulations as Landlord may from time
to time adopt. Landlord reserves the right at any time and from time to time to rescind, alter or
waive, in whole or in part, any of these Building Rules when it is deemed necessary, desirable, or
proper, in Landlord’s judgment, for its best interest or for the best interest of the tenants of
the Property.

 

 

EXHIBIT “17.1.1” TO THE LEASE

Description of Tenant Improvements

 

 

EXHIBIT “17.2.A” TO THE LEASE

Identification of Restricted Parking Area

 

 

EXHIBIT “17.2.B” TO THE LEASE

Identification of Tenant’s Designated Parking Area

 

 

EXHIBIT “1.3” TO LEASE

Identification of Hallway Area

 

 

 

 

EXHIBIT “2.1” TO LEASE

Premises (First Floor)

 

 

 

 

EXHIBIT “2.2” TO LEASE

Premises (Mezzanine)

 

 

 

 

EXHIBIT “17.1.1” TO THE LEASE

Description of Tenant Improvements

 

 

AM RETAIL

7401 Boone Ave. North

Brooklyn Park, MN 55428

	 	 	    	 	 	 	    	 	 	 	    	 	 	 
	Item	 	 	Total Bid	 	LL Cost	 	Tenant Cost
	Permit
	 	 	$	3,522	 	 	$	2,113	 	 	$	1,409	 
	Supervision
	 	 	$	14,300	 	 	$	8,580	 	 	$	5,720	 
	General Conditions
	 	 	$	4,900	 	 	$	2,940	 	 	$	1,960	 
	Final Cleaning/Dumpsters
	 	 	$	3,689	 	 	$	2,213	 	 	$	1,476	 
	Demolition
	 	 	$	32,790	 	 	 	 	 	 	$	32,790	 
	Concrete
	 	 	$	1,870	 	 	$	1,870	 	 	 	 	 
	Precast modification
	 	 	$	2,680	 	 	$	2,680	 	 	 	 	 
	Structural Steel
	 	 	$	5,500	 	 	$	5,500	 	 	 	 	 
	Rough Carpentry
	 	 	$	1,625	 	 	 	 	 	 	$	1,625	 
	Millwork
	 	 	$	10,210	 	 	 	 	 	 	$	10,210	 
	Hollow Metal Frames
	 	 	$	2,111	 	 	 	 	 	 	$	2,111	 
	Wood Doors
	In above	 	 	 	 	 	 	 	 	 	 	 
	Finish Hardware
	In above	 	 	 	 	 	 	 	 	 	 	 
	Glass & Glazing
	 	 	$	0	 	 	$	0	 	 	 	 	 
	Drywall
	 	 	$	68,870	 	 	$	68,870	 	 	 	 	 
	Paint & VWC
	 	 	$	6,550	 	 	 	 	 	 	$	6,550	 
	Carpet/Flooring
	 	 	$	24,182	 	 	 	 	 	 	$	24,182	 
	Acoustical Ceiling
	 	 	$	2,635	 	 	 	 	 	 	$	2,635	 
	Ceramic Tile
	Not Included	 	 	 	 	 	 	 	 	 	 	 
	Blind repair allowance
	 	 	$	500	 	 	 	 	 	 	$	500	 
	Fire Extinguishers
	 	 	$	350	 	 	$	350	 	 	 	 	 
	HVAC
	 	 	$	23,144	 	 	$	23,144	 	 	 	 	 
	Plumbing
	 	 	$	4,800	 	 	$	4,800	 	 	 	 	 
	Fire Protection
	 	 	$	8,450	 	 	$	8,450	 	 	 	 	 
	Electrical
	 	 	$	43,860	 	 	$	43,860	 	 	 	 	 
	Fire Life Safety
	Not Included	 	 	 	 	 	 	 	 	 	 	 
	SUBTOTAL
	 	 	$	266,538	 	 	$	175,371	 	 	$	91,167	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	CONTRACTOR FEE
	 	 	$	13,327	 	 	$	7,996	 	 	$	5,331	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	PROJECT TOTAL
	 	 	$	279,865	 	 	$	183,367	 	 	$	96,498	 
	 
	ALTERNATES
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Remove mastic by mechanical means.
	 	 	 	 	 	 	 	 	 	 	$	10,993	 
	Patch existing walls after VWC removal.
	 	 	 	 	 	 	 	 	 	 	$	5,000	 
	Provide ductwork to drop down over the dock doors.
	 	 		 	 	 	 	 	$	6,983	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	PROJECT TOTAL AFTER ALTERNATES
	 	 	 	 	 	 	$	183,367	 	 	$	119,474	 

 

 

 

 

 

 

EXHIBIT “17.2.A” TO THE LEASE

Identification of Restricted Parking Area

 

 

 

 

EXHIBIT “17.2.B” TO THE LEASE

Identification of Tenant’s Designated Parking Areaexv10w9

Exhibit 10.9

 

GRANITE SOUTH BRUNSWICK LLC,

as Landlord

AND

G III APPAREL GROUP LTD

as Tenant

 

LEASE AGREEMENT

 

Dated: December 21, 2009

Premises:

140 – 148 Docks Corner Road

Jamesburg, New Jersey

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	ARTICLE 1
	 	REFERENCE DATA AND DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE 2
	 	DEMISED PREMISES AND TERM	 	 	3	 
	 
	 	Section 2.1                   Demised Premises	 	 	3	 
	 
	 	Section 2.2                   Term	 	 	3	 
	 
	 	Section 2.3
Tenant’s Entry upon Demised Premises before Commencement Date	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE 3
	 	RENT AND SECURITY DEPOSIT	 	 	4	 
	 
	 	Section 3.1                   Fixed Rent	 	 	4	 
	 
	 	Section 3.2                   Additional Rent	 	 	4	 
	 
	 	Section 3.3                   Past Due Rent	 	 	4	 
	 
	 	Section 3.4                   Security Deposit	 	 	5	 
	 
	 	Section 3.5                   Rent Payments	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE 4
	 	TENANT’S SHARE OF OPERATING COSTS AND TAXES	 	 	5	 
	 
	 	Section 4.1                   Definitions	 	 	5	 
	 
	 	Section 4.2
Tenant’s Payment of Operating Costs, Taxes and Insurance	 	 	8	 
	 
	 	Section 4.3                   Refunds; Other Items	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE 5
	 	COMPLETION AND OCCUPANCY OF DEMISED PREMISES	 	 	11	 
	 
	 	Section 5.1                   Completion of Demised Premises	 	 	11	 
	 
	 	Section 5.2                   Occupancy of Demised Premises	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE 6
	 	CONDUCT OF BUSINESS BY TENANT	 	 	11	 
	 
	 	Section 6.1                   Use of Demised Premises	 	 	11	 
	 
	 	Section 6.2                   Compliance with Laws and Requirements of Public Authorities	 	 	11	 
	 
	 	Section 6.3                   Rules and Regulations	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE 7
	 	COMMON AREA	 	 	13	 
	 
	 	Section 7.1                   Control of Common Area	 	 	13	 
	 
	 	Section 7.2                   Intentionally deleted	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE 8
	 	REPAIRS, ALTERATIONS AND
MECHANICS’ LIENS	 	 	13	 
	 
	 	Section 8.1                   Repairs	 	 	13	 
	 
	 	Section 8.2                   Alterations	 	 	14	 
	 
	 	Section 8.3
Mechanics’ Liens	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE 9
	 	UTILITIES AND BUILDING SERVICES	 	 	15	 
	 
	 	Section 9.1                   Utilities and Building Services	 	 	15	 
	 
	 	Section 9.2                   Interruption of Services	 	 	15	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	ARTICLE 10
	 	PROPERTY AND OTHER TAXES	 	 	16	 
	 
	 	Section 10.1
Tenant’s Property	 	 	16	 
	 
	 	Section 10.2                  Increased Value of Improvements	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE 11
	 	INSURANCE AND INDEMNITY	 	 	16	 
	 
	 	Section 11.1
Tenant’s Insurance	 	 	16	 
	 
	 	Section 11.2                  Indemnity and Non-Liability	 	 	17	 
	 
	 	Section 11.3                  Waiver of Subrogation	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE 12
	 	DAMAGE BY CASUALTY	 	 	19	 
	 
	 	Section 12.1                  Notice	 	 	19	 
	 
	 	Section 12.2                  Restoration of Improvements	 	 	19	 
	 
	 	Section 12.3                  Damage During Last Year of Lease Term	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE 13
	 	EMINENT DOMAIN	 	 	20	 
	 
	 	Section 13.1                  Taking of Demised Premises	 	 	20	 
	 
	 	Section 13.2                  Partial or Temporary Taking of Building	 	 	20	 
	 
	 	Section 13.3                  Surrender	 	 	21	 
	 
	 	Section 13.4                  Rent Adjustment for Partial Taking of Demised Premises	 	 	21	 
	 
	 	Section 13.5                  Awards	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE 14
	 	RIGHTS RESERVED TO LANDLORD	 	 	22	 
	 
	 	Section 14.1                  Access to Demised Premises	 	 	22	 
	 
	 	Section 14.2                  Additional Rights	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE 15
	 	ASSIGNMENT AND SUBLETTING	 	 	23	 
	 
	 	Section 15.1                  Consent Required	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE 16
	 	BANKRUPTCY	 	 	25	 
	 
	 	Section 16.1                  Bankruptcy	 	 	25	 
	 
	 	Section 16.2                  Measure of Damages	 	 	26	 
	 
	 	 	 	 	 	 
	ARTICLE 17
	 	DEFAULT	 	 	26	 
	 
	 	Section 17.1                  Events of Default	 	 	26	 
	 
	 	Section 17.2                  Damages	 	 	27	 
	 
	 	Section 17.3                  Landlord Default	 	 	28	 
	 
	 	Section 17.4                  Waiver of Jury Trial	 	 	28	 
	 
	 	 	 	 	 	 
	ARTICLE 18
	 	SURRENDER	 	 	29	 
	 
	 	Section 18.1                  Possession	 	 	29	 
	 
	 	Section 18.2                  Merger	 	 	29	 
	 
	 	 	 	 	 	 
	ARTICLE 19
	 	HOLDING OVER	 	 	29	 
	 
	 	Section 19.1                  Holding Over	 	 	29	 
	 
	 	 	 	 	 	 
	ARTICLE 20
	 	REMEDIES CUMULATIVE	 	 	29	 
	 
	 	Section 20.1                  No Waiver	 	 	29	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	ARTICLE 21
	 	ESTOPPEL CERTIFICATE, SUBORDINATION, ATTORNMENT	 	 	30	 
	 
	 	Section 21.1                  Estoppel Certificate	 	 	30	 
	 
	 	Section 21.2                  Subordination	 	 	30	 
	 
	 	Section 21.3                  Attornment	 	 	30	 
	 
	 	Section 21.4                  Mortgages	 	 	30	 
	 
	 	 	 	 	 	 
	ARTICLE 22
	 	QUIET ENJOYMENT	 	 	31	 
	 
	 	Section 22.1                  Quiet Enjoyment	 	 	31	 
	 
	 	 	 	 	 	 
	ARTICLE 23
	 	NOTICES	 	 	31	 
	 
	 	Section 23.1                  Notices	 	 	31	 
	 
	 	 	 	 	 	 
	ARTICLE 24
	 	MISCELLANEOUS PROVISIONS	 	 	31	 
	 
	 	Section 24.1                  Time	 	 	31	 
	 
	 	Section 24.2                  Applicable Law and Construction	 	 	31	 
	 
	 	Section 24.3                  Parties Bound	 	 	32	 
	 
	 	Section 24.4                  No Representations by Landlord	 	 	32	 
	 
	 	Section 24.5                  Brokers	 	 	32	 
	 
	 	Section 24.6                  Severability	 	 	32	 
	 
	 	Section 24.7                  Force Majeure	 	 	32	 
	 
	 	Section 24.8                  Definition of Landlord	 	 	33	 
	 
	 	Section 24.9                  No Option	 	 	33	 
	 
	 	Section 24.10                 Exculpatory Clause	 	 	33	 
	 
	 	Section 24.11                 No Recording	 	 	33	 
	 
	 	Section 24.12                 No Light, View or Air Easements	 	 	33	 
	 
	 	Section 24.13                 Financial Statements	 	 	33	 
	 
	 	Section 24.14                 ERISA	 	 	33	 
	 
	 	Section 24.15                 Patriot Act	 	 	34	 
	 
	 	Section 24.16                 Signage	 	 	34	 
	 
	 	Section 24.17                 Renewal Option	 	 	34	 

iii

 

LEASE

     This Lease is made between Landlord and Tenant named in Article l as of the date set forth
therein. Landlord and Tenant, in consideration of the covenants and agreements contained herein,
agree as follows:

ARTICLE 1

REFERENCE DATA AND DEFINITIONS

     The following are definitions of terms used in this Lease, and each reference in this Lease to
any of the following subjects shall be construed to incorporate the data, terms, covenants and
provisions stated for that subject in this Article 1, subject to the terms of the balance of this
Lease:

	 	 	 
	DATE OF EXECUTION:
	 	December 21, 2009

	 	 	 

	LANDLORD:
	 	GRANITE SOUTH BRUNSWICK LLC, a

	 	 	Delaware limited liability company

	 	 	 

	MANAGING AGENT:
	 	BlackRock Realty Advisors, Inc.

	 	 	 

	LANDLORD’S AND
	 	GRANITE SOUTH BRUNSWICK LLC

	MANAGING AGENTS ADDRESS:
	 	BlackRock Realty Advisors, Inc.

	 	 	One Financial Center

	 	 	32nd Floor

	 	 	Boston, MA 02111

	 	 	Attn: Robert Norberg

	 	 	 

	 	 	With a copy to:

	 	 	 

	 	 	BlackRock Realty Advisors, Inc.

	 	 	300 Campus Drive, Suite 300

	 	 	Florham Park, NJ 07932

	 	 	Attn: Jeremy Litt, Esq.

	 	 	 

	WIRE INSTRUCTIONS AND/OR 
	 	Matrix Realty, Inc

	ADDRESS FOR RENT
	 	CN 4000, Forsgate Drive

	PAYMENT:
	 	Cranbury, NJ 08512

	 	 	Attn: Accounts Receivable

	 	 	 

	TENANT:
	 	G III APPAREL GROUP LTD

	 	 	 

	STATE OF TENANT’S 
	 	Delaware

	FORMATION/INCORPORATION:
	 	 

 

 

	 	 	 	 	 
	TENANT’S
ADDRESS:

	 	512 Seventh Ave.
	 	With copy to:
	 

	 	35th Floor
	 	Douglas J. Danzig
	 

	 	New York, NY 10018
	 	Fulbright & Jaworski
	 

	 	Attn: Chief Operating Officer
	 	L.L.P.
	 

	 	 
	 	666 Fifth Avenue
	 

	 	 	 	New York, N.Y. 10103

	 	 	 
	DEMISED PREMISES:
	 	As shown on Exhibit A agreed for all purposes of
this Lease to be 583,376 square feet.

	 	 	 

	LAND:
	 	The Land described on Exhibit B.

	 	 	 

	BUILDING:
	 	140 – 148 Docks Corner Road, Jamesburg, NJ

	 	 	 

	PROPERTY:
	 	The Land, the Building (i.e. Demised Premises) and
all other improvements located on the Land,
including, without limitation, parking areas,
driveways, walkways and landscaped areas.

	 	 	 

	USE OF DEMISED PREMISES:
	 	Warehouse, distribution, processing (to the
extent permitted by zoning) and up to two
warehouse sales per year, subject to compliance
with all laws and any governmental requirements
at Tenant’s sole cost, of apparel and related
items, and general office

	 	 	 

	COMMENCEMENT DATE:
	 	June 1, 2010

	 	 	 

	EXPIRATION DATE:
	 	December 31, 2020

	 	 	 

	TERM:
	 	Ten (10) Years and Seven (7) Months.

	 	 	 

	RENEWAL TERM:
	 	One renewal term of Five (5) Years

	 	 	 

	FIXED RENT:
	 	Initial Term:

	 	 	Months 1 – 7 — $0.00 per annum

	 	 	Months 8 – 31 — $1,989,312.16 per annum

	 	 	Months 32 – 55 — $2,135,156.16 per annum

	 	 	Months 56 – 91 — $2,187,660.00 per annum

	 	 	Months 92 – 127 — $2,304,335.20 per annum

2

 

	 	 	 
	MONTHLY FIXED RENT:
	 	Initial Term:

	 	 	Months 1 – 7 — $0.00 per month

	 	 	Months
8 – 31 — $165,776.01 per month

	 	 	Months 32 – 55 — $177,929.68 per month

	 	 	Months 56 – 91 — $182,305.00 per month

	 	 	Months 92 – 127 — $192,027.93 per annum

	 	 	 

	TENANT’S PROPORTIONATE SHARE:
	 	100%

	 
	 	 

	 	 	 

	DEFAULT RATE:
	 	The Prime Rate plus five percent (5%) per
annum. “Prime Rate” shall mean the highest of
the prime rates as reported in the Money Rate
Section of the Wall Street Journal. If the
Wall Street Journal no longer publishes the
Prime Rate as an index, Landlord may substitute
a comparable index including the Prime Rate or
reference rate of a reputable financial
institution.

	 	 	 

	SECURITY DEPOSIT AMOUNT:
	 	$331,552.00

	 	 	 

	BROKER:
	 	Cushman & Wakefield of New Jersey, Inc.,
representing Landlord, and Team Resources,
Inc., representing Tenant

ARTICLE 2

DEMISED PREMISES AND TERM

     Section 2.1 Demised Premises. Landlord hereby leases unto Tenant, and Tenant hereby
leases from Landlord, the Demised Premises, upon and subject to the covenants, agreements, terms,
conditions, limitations, exceptions and reservations of this Lease.

     Section 2.2 Term. The Term and Tenant’s obligation to pay Rent shall commence on the
Commencement Date and shall end, unless sooner terminated or extended as herein provided or
pursuant to law, at the close of business on the Expiration Date.

     Section 2.3 Tenant’s Entry upon Demised Premises before Commencement Date. Provided
that Tenant complies at all times with the provisions and requirements of this Lease (other than
the obligation to pay Fixed Rent), Tenant may enter upon the Demised Premises as of January 1, 2010
to install trade fixtures, furnishings and equipment and to make the Demised Premises ready for the
conduct of Tenant’s business, provided, however, that Tenant does not interfere with Landlord’s
Work (as defined in Section 5.1), if any, and provided further that such

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contractors as Tenant may engage to undertake such installations and other preparatory work
shall be subject to Landlord’s reasonable written approval prior to engagement. Landlord shall
approve or disapprove (stating in reasonable detail the reasons for any such disapproval) of any
such request for approval within five (5) business days of its receipt of same. In the event
Landlord fails to approve or disapprove such request within said five (5) business days, Tenant’s
request shall be deemed approved. Tenant shall be obligated to pay for utilities furnished to the
Demised Premises upon Tenant’s entry pursuant to this Section 2.3 at Landlord’s cost therefor as
invoiced by Landlord in six (6) equal, consecutive monthly installments and payment of each such
consecutive monthly installment shall be due and owing to Landlord with the first such installment
due and payable January 1, 2011 and the subsequent installments on the first day of each month
through June 1, 2011. However, Landlord does not assume responsibility for the availability of any
services during the period prior to the Commencement Date.

ARTICLE 3

RENT AND SECURITY DEPOSIT

     Section 3.1 Fixed Rent. Tenant shall pay to Landlord, without any prior demand
therefor and without any deduction or set-off whatsoever (except as expressly otherwise provided
herein), the Fixed Rent set forth in Article 1. Fixed Rent shall be due and payable in monthly
installments each equal to the Monthly Fixed Rent set forth in Article l, in advance on the first
day of each and every calendar month during the Term.

     Section 3.2 Additional Rent. Any sums or charges to be paid by Tenant pursuant to the
provisions of this Lease, other than the Fixed Rent, shall be designated as “Additional
Rent” and shall be payable within 20 days after Landlord gives written notice that payment is
due, unless otherwise provided in this Lease. Landlord shall have the same rights against Tenant
for default in payment of Additional Rent as for default in payment of the Fixed Rent. As used in
this Lease, the term “Rent” shall mean the Fixed Rent and Additional Rent.

     Section 3.3 Past Due Rent.

     (a) If Tenant shall fail to pay any installment of Rent before the sixth day after
receipt of written notice from Landlord on more than two (2) occasions during any calendar
year, beginning with the third (3rd) such late payment and for every subsequent late payment
during such calendar year, Tenant shall pay a charge (the “Late Charge”) which shall
be 3.5% of the amount of such unpaid installment of Rent. The parties agree that the amount
of such Late Charge represents a reasonable estimate of the cost and expense that will be
incurred by Landlord in processing each such delinquent payment of Rent by Tenant and that
such Late Charge shall be paid to Landlord as liquidated damages for each such delinquent
payment.

     (b) Any amount due from Tenant to Landlord which is not paid when due shall bear
interest at the Default Rate from the date such payment is due, after the expiration of any
applicable notice and grace period, until paid. The rate so determined shall continue in
effect following any default by Tenant pursuant to this Lease. Payment

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of such interest shall not excuse or cure any default by Tenant under this Lease. The
parties agree that the payment of interest and the payment of Late Charges provided for in
Section 3.3(a) above are distinct and separate from one another in that the payment of
interest is to compensate Landlord for its inability to use the money due from Tenant, while
the payment of Late Charges is to compensate Landlord for its additional administrative
expenses in handling and processing delinquent payments.

     Section 3.4 Security Deposit. Tenant shall deposit with Landlord upon signing this
Lease and, throughout the Term shall keep on deposit with Landlord, the Security Deposit Amount set
forth in Article 1 as security for the payment by Tenant of the Rent and for the faithful
performance of all the terms, conditions and covenants of this Lease (the “Security
Deposit”). Landlord shall not be obligated to keep the Security Deposit as a separate fund,
but may commingle the Security Deposit with Landlord’s own funds. If at any time during the Term
Tenant shall default in the performance of any provisions of this Lease beyond applicable notice
and cure periods, Landlord may, but shall not be required to, use the Security Deposit, or so much
thereof as necessary, in payment of any Rent in default, or in reimbursement of any expense
incurred by Landlord or in payment of the damages incurred by Landlord by reason of Tenant’s
default. In such event, Tenant shall, upon written demand from Landlord, promptly remit to
Landlord a sufficient amount in cash to restore the Security Deposit to equal the Security Deposit
Amount. Within 30 days after the expiration of this Lease and surrender of the Demised Premises in
accordance with the terms and conditions of this Lease, the Security Deposit, or as much thereof as
has not been utilized for such purposes, shall be refunded to Tenant without interest. Landlord
may deliver the Security Deposit to the purchaser of Landlord’s interest in the Demised Premises in
the event such interest is sold, and, in such instance, Landlord named herein shall be discharged
from any further liability with respect to the Security Deposit and Tenant shall look to Landlord’s
successor for the return of the Security Deposit. Notwithstanding the above provisions of this
Section 3.4, if any claims of Landlord exceed the amount of the Security Deposit, Tenant shall
remain liable for the balance of such claims. Tenant may maintain the Security Deposit in the form
of a letter of credit so long as (i) the form and terms of said letter of credit and the issuing
bank thereunder shall each be reasonably satisfactory to Landlord, and (ii) the letter of credit
shall be fully transferable without cost to Landlord.

     Section 3.5 Rent Payments. All Rent payments shall be made to Landlord at the address
set forth in Article l, or at such other place designated by Landlord in writing, in lawful
currency of the United States of America. Rent payments applicable to partial months falling
within the Term shall be prorated. If Tenant shall default in any payment of Rent, and while such
default remains uncured, Landlord may, by written notice to Tenant, require that all future Rent
payments be made by wire transfer of immediately available funds to an account designated by
Landlord or by unendorsed certified or official bank check payable to Landlord.

ARTICLE 4

TENANT’S SHARE OF OPERATING COSTS AND TAXES

     Section 4.1 Definitions. As used herein:

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     (a) “Operating Costs” shall mean any and all costs, charges, expenses and
disbursements of every kind and nature which Landlord shall pay or become obligated to pay
in connection with the operation, ownership, maintenance, management and repair of the
Property, including, without being limited to, the following:

     (1) All wage, salary and labor costs of all persons to the extent engaged in
the operation, maintenance, management and repair of the Property (including,
without being limited to, all applicable taxes, insurance and benefits).

     (2) Costs of any utilities supplied by Landlord (including, without being
limited to, heat, electricity, gas, water and sewer), fuel and supplies and
materials and of the operation and maintenance of all Property systems (including,
without being limited to, heating, ventilation and air-conditioning (“HVAC”) systems
and telecommunications systems).

     (3) Costs of repairs, replacements, and general maintenance, including, without
being limited to, exterior building maintenance, paving, curbs, drainage, lighting,
sidewalks and landscaping.

     (4) Professional fees and expenses (including, without being limited to, legal,
accounting, architectural and engineering fees), incurred by Landlord on or after
June 1, 2010.

     (5) All costs of making any alterations to the Building for life-safety systems
or energy conservation or other capital improvements required by any governmental
requirement enacted or amended after the date hereof or which are primarily for the
purpose of reducing or stabilizing Operating Costs, amortized over the useful life
of such improvements, with a return on capital at the rate of ten percent (10%) per
annum.

     (6) All property management fees, costs and expenses, not to exceed 2% of
annual gross rent.

     (b) Operating Costs — Exclusions. The term Operating Costs excludes:

     (1) Repairs and alterations which Landlord is required to make at its sole cost
and expense pursuant to Article 8 hereof and capital expenditures not specifically
included in Clause (5) of Section 4.1(a);

     (2) the cost of repairs or replacements incurred by reason of condemnation or
fire or any other risk;

     (3) expenditures for refinancing and for mortgage debt service;

     (4) Taxes;

6

 

     (5) depreciation or amortization (other than as includable in Operating Costs
pursuant to Clause (5) of Section 4.1(a);

     (6) costs and expenses otherwise includable in Operating Costs, to the extent
that Landlord is reimbursed from other sources for such costs and expenses;

     (7) interest on, and amortization of, debts (other than as includable in
Operating Costs pursuant to Clause (5) of Section 4.1(a)), late charges, penalty
interest or other similar charges in connection with debts or the late payment of
any Taxes unless delayed by Tenant’s payment to Landlord for the same;

     (8) brokerage commissions, origination fees, points, mortgage recording taxes,
title charges and other costs or fees incurred in connection with any mortgage
financing or refinancing;

     (9) brokerage commissions, attorneys’ fees and disbursements, any transfer
gains taxes, transfer taxes and recording charges and any other cost or expense
incurred in connection with the closing of a conveyance of all or any portion of the
Property or the Building;

     (10) salaries or other benefits of any nature whatsoever of executives or
employees of Landlord or Landlord’s affiliates above the grade of building or
property manager;

     (11) payments made by Landlord to a company or other entity affiliated with
Landlord for goods and services to the extent that such payments exceed the range of
amounts that would have been paid to independent third parties for goods and
services of like kind in connection with the operation, repair, cleaning,
maintenance, management and security of the Property;

     (12) fines or penalties payable by Landlord resulting from non-compliance with
laws to the extent Landlord is responsible for such compliance pursuant to Section
6.2(a) hereof;

     (13) attorneys’ fees and disbursements and other costs in connection with any
judgment, settlement or arbitration resulting from any tort liability on the part of
Landlord and the amount of such settlement or judgment;

     (14) the cost of installing, maintaining and operating any specialty facility
to the extent such facility is for use by the general public, such as an
observatory, broadcasting facility, luncheon club, athletic club or recreational
club;

     (15) the costs of constructing any addition which adds leasable area to the
Building after the Commencement Date;

7

 

     (16) arbitration and litigation expenses to the extent such expenses are
unrelated to the operation, repair, cleaning, maintenance, management or security of
the Property;

     (17) ground rent or other charges payable under superior leases;

     (18) costs incurred in connection with the removal, enclosure or encapsulation
of any asbestos or other Hazardous Materials unless introduced by Tenant, or
Tenant’s employees or Tenant’s agents in the Building or on the Property;

     (19) costs incurred pursuant to any obligation of Landlord to indemnify Tenant
under this Lease.

     It is the intention of the parties that Tenant shall not be required to make duplicate
payments of an Operating Cost item if payment for such item was made pursuant to any other
provision of this Lease.

     (c) “Taxes” shall mean the aggregate amount of real estate and personal
property taxes and any special assessments levied, assessed or imposed upon the Property, or
any portion thereof, other than any water or sewer charge to the extent the same are
included in Operating Costs for the applicable calendar year. If because of any change in
the taxation of real estate, any other tax, assessment or surcharge of any kind or nature
(including, without being limited to, any franchise, income, profit, sales, use, occupancy,
gross receipts or rental tax) is imposed upon, against or with respect to Landlord, or the
occupancy, rents or income therefrom, either in lieu of, in substitution for or in addition
to any of the foregoing Taxes, such other tax, assessment or surcharge (which shall be
measured as if the Property, or applicable portion thereof, as the case may be, were the
only asset of Landlord or such owner) shall be deemed part of Taxes. With respect to any
calendar year, all expenses, including reasonable attorney’s, accounting and experts’ fees
and expenses, incurred in contesting the validity or amount of Taxes, the assessed valuation
of the Property, or any portion thereof, or in obtaining a refund of Taxes shall be
considered as part of Taxes for such year. Tenant, with the consent of the Landlord, which
consent shall not be unreasonably withheld, delayed or conditioned, may contest the Taxes
assessed against the Property, and Landlord shall, at no cost to Landlord, co-operate with
the Tenant in connection with such contest.

     (d) “Insurance” shall mean costs of all insurance, including, without being
limited to, casualty, worker’s compensation, rental and liability insurance in such amounts
within the range as generally maintained by owners of comparable warehouse/office
properties; however, rental insurance shall cover loss of rental for one (1) year, if
available. Landlord shall carry full replacement cost coverage for the Building, the cost
for which shall be included in the Operating Costs.

     Section 4.2 Tenant’s Payment of Operating Costs, Taxes and Insurance.

8

 

     (a) Commencing as of June 1, 2010 and for each subsequent calendar year during the
Term, Tenant shall pay to Landlord, as Additional Rent, at the times and in the manner
provided below, Tenant’s Proportionate Share of the sum of (1) Operating Costs for such
calendar year, (2) Taxes for such calendar year, and (3) Insurance for such calendar year
(collectively, “Tenant’s Expense Charge”). The Operating Costs for the period of
June 1, 2010 to December 31, 2010 shall be apportioned appropriately. Notwithstanding the
foregoing, the amount charged to Tenant for any calendar year with respect to those
Controllable Expenses (defined below) in excess of the average Controllable Expenses paid or
incurred from June 1, 2010 through December 31, 2011, such average herein called “Base Year
Controllable Expenses”) is limited to the amount by which the Base Year Controllable
Expenses is exceeded by the Base Year Controllable Expenses as increased at the cumulative
annual compound rate of five percent (5%). By way of illustration, if the Base Year
Controllable Expenses are $1.00 per square foot, excess Controllable Expenses chargeable to
Tenant for the next applicable calendar year pursuant to this paragraph 4.2 cannot exceed
$0.05 per square foot, $0.1025 per square foot for the following year, $0.1576 per square
foot for the next calendar year, and so forth. “Controllable Expenses” means those
Expenses, which are within the reasonable control of Landlord, and include, without
limitation, any and all roof repair, roof maintenance and roof replacement, but shall not
include real estate taxes, insurance costs, costs which are established by public utilities,
and costs which are subject to variation due to weather conditions, such as snow removal.
Further, in the event Tenant desires to undertake certain maintenance of the Common Area at
their own cost, provided that Tenant so notifies and coordinates with Landlord the transfer
of the maintenance of such items so as not to conflict with any then existing service
contracts, Tenant may perform such maintenance at its sole costs and the maintenance of such
item(s) shall thereafter not be included in the Operating Costs.

     (b) At any time during the Term, Landlord shall have the right to compute and deliver
to Tenant a reasonable estimate (an “Estimate”) of Tenant’s Expense Charge for the
applicable calendar year and, without further notice, Tenant shall pay to Landlord
commencing with the next payment of Monthly Fixed Rent and continuously thereafter with
payments of Monthly Fixed Rent until delivery of the next Estimate, monthly installments
equal to one-twelfth of the amount set forth in such Estimate, together with, in the case of
the first such monthly payment, an amount equal to the difference between (i) the amount of
such monthly installment times the number of months in such year preceding the first monthly
payment, less (ii) the amount of any monthly installments in respect of the prior Estimate
theretofore paid to Landlord. In the event Landlord is required under any mortgage of the
Land or the Building to escrow Operating Costs and/or Taxes, Landlord may (without
obligation) use the amount required to be escrowed as a basis for determining the Estimate.

     (c) Landlord shall use commercially reasonable efforts to deliver to Tenant within 120
days after the end of each calendar year during the Term a written statement (the
“Statement”) setting out in reasonable detail Tenant’s Expense Charge for such year
certified to be correct by Landlord. If the aggregate of the monthly installments actually
paid by Tenant to Landlord on account of the estimated Tenant’s Expense Charge during

9

 

any calendar year (the “Actual Payments”) differs from the amount of Tenant’s
Expense Charge payable according to the Statement (the “Obligated Payments”), Tenant
shall (1) if the Obligated Payments shall exceed the Actual Payments, pay to Landlord,
within 30 days after the date of delivery of the Statement, an amount equal to such excess,
or (2) if the Actual Payments shall exceed the Obligated Payments, be granted a credit
against the next installments of Rent in an amount equal to such overpayment.

     (d) Tenant shall have the right to examine Landlord’s books and records with respect to
the items in a Statement during Normal Business Hours (except, however, Saturdays) at any
time within ninety (90) days following the furnishing of the Statement to Tenant. In
conducting such examination, Tenant must utilize either its own full time salaried employees
or an independent certified public accountant (“CPA”), which CPA shall be paid by
Tenant on an hourly fee for services rendered basis, and not on a contingency fee basis, and
which CPA shall be subject to Landlord’s reasonable prior approval. Unless Tenant takes
written exception to any item on the subject Statement within one hundred twenty (120) days
after the furnishing of the Statement, such Statement shall be considered as final and
accepted by Tenant. If Tenant timely provides such written exception to Landlord, but
Landlord and Tenant disagree on the accuracy of Tenant’s Expense Charge as set forth in the
Statement, Tenant shall nevertheless make payment in accordance with the Statement, but the
disagreement shall immediately be referred by Landlord for prompt decision to a mutually
acceptable public accountant or other professional consultant who shall be deemed to be
acting as an expert and not as an arbitrator, and a determination signed by the selected
expert shall be final and binding on both Landlord and Tenant. If Landlord and Tenant shall
fail to agree on such an expert within 15 days after Tenant’s notice of disagreement (as
above described), such expert shall be selected by the president of the local chapter of the
National Association of Real Estate Boards. Any adjustment required to be made by reason of
any such decision shall be made within 15 days thereof and payment shall be made or credit
allowed in the manner set forth in Section 4.2(c) hereof. If the adjustment is greater than
5% of the amount of Operating Costs charged to Tenant, and the amount of the adjustment is
to be credited to Tenant, Landlord will pay the cost of the expert; otherwise Tenant will
pay the cost of the expert.

     Section 4.3 Refunds; Other Items.

     (a) In the event a refund of any Operating Costs or Taxes is obtained and actually paid
to Landlord, Landlord shall credit an appropriate portion thereof (after deducting any
unrecouped expenses in connection with obtaining such refund) to the next installment(s) of
Rent.

     (b) The rendering of a Statement for any year shall not preclude Landlord from issuing
a correction thereto at a later time, including a correction for items not included in the
original Statement; however, any such correction statement shall be delivered to Tenant
within two (2) years of the date on which the Statement to which the correction relates was
delivered to Tenant.

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ARTICLE 5

COMPLETION AND OCCUPANCY OF DEMISED PREMISES

     Section 5.1 Completion of Demised Premises. Pursuant to Exhibit “D” to this Lease,
Tenant may elect to either have Landlord perform certain work within the Demised Premises (“Work”)
or advise Landlord that Tenant will perform the Work.

     Section 5.2 Occupancy of Demised Premises. The occupancy of the Demised Premises or
any part thereof for the conduct of business by Tenant or anyone claiming by, under or through
Tenant shall be conclusive evidence that (a) Tenant accepts possession; (b) the Demised Premises
were in good and satisfactory condition, subject to latent defects; and (c) Landlord’s Work, if
any, was satisfactorily completed (but only if evidenced by a certificate of Landlord’s architect
pursuant to Paragraph 2 of Exhibit D if Landlord is requested to perform the Landlord’s Work) at
the time such occupancy for business was so taken, subject to punchlist items, if any, indicated on
a list delivered by Tenant to Landlord on or before the date Tenant takes occupancy of the Demised
Premises.

ARTICLE 6

CONDUCT OF BUSINESS BY TENANT

     Section 6.1 Use of Demised Premises. Tenant shall use the Demised Premises during the
Term solely for use specified in Article 1 and for no other purpose.

     Section 6.2 Compliance with Laws and Requirements of Public Authorities.

     (a) At all times during the Term, Tenant shall give prompt notice to Landlord of any
notice Tenant receives of any violation of any law or requirement of a governmental
authority affecting the Demised Premises or the Property or any regulation of the board of
fire underwriters having jurisdiction over the Property (“Applicable Law”), and, at
its sole cost and expense, shall comply with all Applicable Laws, including any violation,
order or duty imposed upon Landlord or Tenant, arising from or relating to (1) Tenant’s
specific use of the Demised Premises; (2) the specific manner or conduct of Tenant’s
business or operation of its installations, equipment or other property therein; (3) any
cause or condition created by or at the insistence of Tenant; or (4) breach of any of
Tenant’s obligations hereunder. Tenant shall have no responsibility for the cost of
compliance with all Applicable Laws, including the Americans with Disabilities Act and
Environmental Laws (hereafter defined), to the extent that the Demised Premises is not, as
of the date of this Lease, in compliance with such laws. Landlord shall, at its sole cost
and expense, promptly comply with all Applicable Laws other than those which Tenant is
required to comply with, providing same adversely affect Tenant’s ability to conduct
business at the Demised Premises.

     (b) Tenant shall not do, permit or suffer any act or thing to be done which is
injurious to the Property or the Demised Premises, which is immoral, a nuisance, contrary

11

 

to Applicable Law or in violation of the certificate of occupancy issued for the
Building or which would result in the cancellation of, insurance maintained by Landlord with
respect to the Property or the Demised Premises.

     (c) Tenant shall not use, maintain or allow the use or maintenance of the Demised
Premises or any part thereof to treat, store, dispose of, transfer, release, convey or
recover Hazardous Materials (as hereinafter defined) nor shall Tenant otherwise, in any
manner, possess or allow the possession of any Hazardous Materials on or about the Demised
Premises; provided, however, any Hazardous Material lawfully permitted and generally
recognized as necessary and appropriate for general office and warehouse use may be stored
and used on the Demised Premises so long as (i) such storage and use is in the ordinary
course of Tenant’s business permitted under this Lease; and (ii) such storage and use is
performed in compliance with all applicable laws. “Hazardous Materials” shall mean any
solid, liquid or gaseous waste, substance or emission or any combination thereof which may
(i) cause or significantly contribute to an increase in mortality or serious illness, or
(ii) pose the risk of a substantial present or potential hazard to human health, to the
environment or otherwise to animal or plant life, and shall include without limitation
hazardous substances and materials described in the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended; the Resource Conservation and Recovery
Act, as amended; and any other applicable federal, state or local laws. Tenant shall
immediately notify Landlord of the presence or suspected presence of any Hazardous Materials
on or about the Demised Premises and shall deliver to Landlord any notice received by Tenant
relating thereto.

     (d) Tenant agrees that it shall not keep, use, sell or offer for sale in or upon the
Demised Premises any article which may be prohibited by any then available standard forms of
fire insurance policies with extended coverage. Tenant agrees to pay to Landlord any
increase in premiums for insurance maintained by Landlord with respect to the Demised
Premises or the Property resulting from the use of the Demised Premises by Tenant, whether,
or not Landlord has consented to such use.

     (e) Tenant shall pay all costs, expenses, fines, penalties or damages which may be
imposed upon Landlord by reason of Tenant’s failure to comply with the provisions of this
Section 6.2.

     Section 6.3 Rules and Regulations. Tenant and its agents, employees, contractors and
invitees shall faithfully observe and comply with the rules and regulations attached hereto as
Exhibit C and incorporated herein by this reference, and such reasonable changes thereto, whether
by modification, elimination or addition which are not inconsistent with any of the provisions of
this Lease, as Landlord may, at any time and from time to time, make in respect of the Demised
Premises and/or the Property (the “Rules and Regulations”). Such changes shall be
effective upon notice thereof from Landlord to Tenant. In the case of any conflict or
inconsistency between the provisions of this Lease and any of the Rules and Regulations, as
originally promulgated or as changed, the provisions of this Lease shall control.

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ARTICLE 7

COMMON AREA

     Section 7.1 Control of Common Area.

     (a) As used in this Lease, the term “Common Area” shall mean the Property,
other than the Demised Premises, which includes all parking areas, sidewalks, landscaping,
curbs, driveways, private streets and alleys, lighting facilities and the like. Landlord
grants Tenant a nonexclusive license for the Term, to use in common with the invitees,
employees or agents of Landlord for the purpose of exercising any rights or performing any
obligations of Landlord under this Lease and Tenant, the Common Area, subject to the terms
and conditions of this Lease and to the Rules and Regulations.

     (b) Subject to Tenant’s reasonable approval or if required by any governmental
authority, Landlord reserves the right, at any time and from time to time, without incurring
any liability to Tenant therefor, to change the arrangement, dimensions and/or location of
parking areas or other parts of the Common Area.

     Section 7.2 Intentionally deleted.

ARTICLE 8

REPAIRS, ALTERATIONS AND MECHANICS’ LIENS

     Section 8.1 Repairs.

     (a) Landlord shall, at its sole cost, make all necessary repairs to keep the exterior
walls, foundation and structural frame of the Building and as part of Operating Costs
perform all necessary repairs and maintenance to keep the roof and the Common Area, in good
order and repair, excluding, however, all repairs which Tenant is obligated to make or pay
for pursuant to this Section 8.1. Landlord agrees to exercise its rights under the existing
roof warranty, which has been or will be transferred to the Landlord and which is attached
hereto as Exhibit E. Tenant shall give Landlord prompt notice of any defective
condition in the roof, roof membrane, any plumbing, heating system or electrical lines
located in, servicing or passing through the Demised Premises and following such notice,
Landlord shall use commercially reasonable efforts where practicable to initiate all repairs
promptly and to remedy the condition with due diligence, subject to unavoidable delay, but
at the expense of Tenant if repairs are necessitated by any act attributable to Tenant,
Tenant’s servants, agents, employees, invitees or licensees; provided, however, that no
liability of Landlord to Tenant shall accrue hereunder unless and until Tenant has given
notice to Landlord of the specific repair to be made.

     (b) Tenant, at its sole cost and expense, shall take good care of the Demised Premises,
including all Building equipment and HVAC and other systems located therein and serving the
Demised Premises and plate glass, floors, windows and doors, and

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Tenant’s property and fixtures. Tenant, at its expense, shall obtain a preventative
maintenance contract on the HVAC system, the form and contractor under which shall be
subject to Landlord’s reasonable approval. Tenant shall provide Landlord with an executed
copy of the preventative maintenance contract no later than ninety (90) days after the
Commencement Date. The preventative maintenance contract shall provide for the inspection
and maintenance of the HVAC system on not less than a semi-annual basis. All repairs made
by or on behalf of Tenant shall be made and performed in accordance with the provisions of
Section 8.2 and shall be at least equal in quality and design to the original construction
of the Demised Premises and the Building. If Tenant fails to proceed with due diligence to
make repairs required to be made by Tenant, and such failure shall continue for 10 days
after notice from Landlord, the same may be made by Landlord at the expense of Tenant and
the amount so incurred by Landlord shall be paid to Landlord by Tenant within 20 days after
submission of a bill or statement therefor by Landlord.

     Section 8.2 Alterations. Tenant shall not make any alterations, additions or
improvements (collectively, “Alterations”) in or to the Demised Premises, except pursuant
to Exhibit “D”, without Landlord’s prior written consent, which consent shall not be unreasonably
withheld, delayed or conditioned. Tenant shall only utilize contractors reasonably approved by
Landlord. Tenant shall, before making any Alterations, at its expense, obtain all permits,
approvals and certificates required by any governmental or quasi-governmental bodies and (upon
completion) certificates of final approval thereof and shall deliver promptly duplicates of all
such permits, approvals and certificates to Landlord, and Tenant agrees to carry, and to cause
Tenant’s contractors and sub-contractors to carry such workmen’s compensation, general liability,
personal and property damage insurance as Landlord may reasonably require. Upon completion of any
Alterations, Tenant shall deliver to Landlord one set of “as-built” plans and specifications
therefor. All fixtures and all paneling, partitions, and like Alterations (but not FF&E Work,
including therein any racking or railing system installed by Tenant which Tenant shall remove upon
the expiration or earlier termination of the Lease), installed in the Demised Premises, either by
Tenant or by Landlord on Tenant’s behalf, shall become the property of Landlord and shall remain
upon and be surrendered with the Demised Premises upon the expiration or earlier termination of the
Lease, unless Landlord, by notice to Tenant given no later than 20 days prior to the Expiration
Date of this Lease (or within 20 days after the earlier termination hereof), elects to have them
removed by Tenant, in which event, the same (except for, Tenant’s Work, Landlord’s Work, done
pursuant to Exhibit D, but including other Alterations [unless at the time of Tenant’s
request for approval of installation, Landlord advises Tenant in writing that such Alterations need
not be removed upon expiration or earlier termination of this Lease, and, if after Tenant’s written
notice to Landlord to request such determination, if Landlord does not so advise Tenant of the
requirement of removal of all or any of such Alterations, Tenant shall not be required to remove
such Alterations at the expiration or earlier termination of this Lease], and furniture, fixtures
and equipment installed by or for Tenant, in connection with Tenant’s occupancy of the Demised
Premises) shall be removed from the Demised Premises by Tenant. Nothing in this section shall be
construed to give Landlord title to or to prevent Tenant’s removal of trade fixtures, moveable
office furniture and equipment, but upon removal of any such equipment and fixtures from the
Demised Premises or upon removal of other installations as may be required by Landlord, Tenant
shall immediately and at its expense, repair and restore the

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Demised Premises to the condition existing prior to installation (subject to ordinary wear and
tear) and repair any damage to the Demised Premises or the Property due to such removal. All
property that was permitted or required to be removed by Tenant at the end of the Term but which
remains in the Demised Premises for 10 business days after Tenant vacates the Demised Premises
shall be deemed abandoned and may, at the election of Landlord, either be retained as Landlord’s
property or may be removed from the Demised Premises by Landlord at Tenant’s expense.

     Section 8.3 Mechanics’ Liens. Tenant shall (a) pay before delinquency all costs and
expenses of work done or caused to be done by Tenant in the Demised Premises; (b) keep the title to
the Property and every part thereof free and clear of any lien or encumbrance in respect of such
work; and (c) indemnify and hold harmless Landlord against any claim, loss, cost, demand (including
reasonable legal fees), whether in respect of liens or otherwise, arising out of the supply of
material, services or labor for such work. Tenant shall promptly notify Landlord of any lien,
claim of lien or other action of which Tenant has knowledge and which affects the title to the
Property or any part thereof, and shall cause the same to be removed within 15 days (or such
additional time as Landlord may consent to in writing). If Tenant shall fail to remove same within
said time period, Landlord may take such action as Landlord deems necessary to remove the same and
the entire cost thereof shall be immediately due and payable by Tenant to Landlord and such amount
shall bear interest at the Default Rate. Nothing contained in this Section 8.3 or elsewhere in
this Lease shall be deemed or construed in any way as giving Tenant any right, power or authority
to contract for or permit the rendering of any services or the furnishing of any materials that
would give rise to the filing of a materialmen’s, mechanics’ or other lien against the Demised
Premises or any other portion of the Property.

ARTICLE 9

UTILITIES AND BUILDING SERVICES

     Section 9.1 Utilities and Building Services. Tenant shall obtain in its own name and
shall pay directly to the appropriate supplier the cost of all utilities and services serving the
Demised Premises, including but not limited to: natural gas, heat, light, electrical power,
telephone, janitorial service, refusal disposal and other utilities and services. If, however, any
such services or utilities are jointly master-metered (i.e., water and sewer charges)
Tenant shall pay Tenant’s Proportionate Share of said charges as part of Operating Costs unless as
otherwise provided in this Lease.

     Section 9.2 Interruption of Services. Landlord does not covenant that utility or
other Building services will be free from interruptions caused by repairs, improvements, changes of
service, alterations, strikes, lockouts, labor controversies, accidents, inability to obtain fuel,
water or supplies or any other cause beyond the reasonable control of Landlord. No such
interruption of service shall be deemed a constructive eviction or disturbance of Tenant’s use and
possession of the Demised Premises or any part thereof, or otherwise render Landlord liable to
Tenant for damages, by abatement of rent or otherwise, or otherwise relieve Tenant from performance
of Tenant’s obligations under this Lease. Tenant hereby waives and releases all claims against
Landlord for damages arising from such interruption or stoppage of such services.

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ARTICLE 10

PROPERTY AND OTHER TAXES

     Section 10.1 Tenant’s Property. In addition to the Rent and other charges to be paid
by Tenant hereunder, Tenant shall reimburse Landlord, upon demand, for any and all taxes payable by
Landlord whether or not now customary or within the contemplation of the parties hereto, levied,
assessed or imposed: (1) upon or with respect to the possession, leasing, operation, management,
maintenance, alteration, repair, use or occupancy by Tenant of the Demised Premises or any portion
thereof; (2) upon the measured value of Tenant’s personal property owned, installed, used or
located in the Demised Premises, it being the intention of Landlord and Tenant that, to the extent
possible, such personal property taxes shall be billed to and paid directly by Tenant; (3) upon the
leasehold interest or any right of occupancy of Tenant in the Demised Premises; or (4) upon this
transaction. Any reimbursement referred to above shall be collectible by Landlord as Additional
Rent hereunder.

     Section 10.2 Increased Value of Improvements. If the tenant improvements in the
Demised Premises, whether installed or paid for by Landlord or Tenant and whether or not affixed to
the real property so as to become a part thereof, are assessed for real property tax purposes at a
valuation higher than the valuation at which tenant improvements conforming to Landlord’s “Building
Standard” in other space in the Building are assessed, then the real property taxes and assessment
levied against Landlord, or against the Building or any portion thereof, by reason of such excess
assessed valuation shall be deemed to be taxes levied against personal property of Tenant and shall
be governed by the provisions of Section 10.1 above. If the records of the tax assessor having
jurisdiction over the Building are available and sufficiently detailed to serve as a basis for
determining whether such tenant improvements are assessed at a higher valuation than Landlord’s
“Building Standard,” such records shall be binding on both Landlord and Tenant; otherwise, the
actual cost of construction shall be the basis for such determination.

ARTICLE 11

INSURANCE AND INDEMNITY

     Section 11.1 Tenant’s Insurance. At all times Tenant shall keep in full force and
effect a policy of comprehensive public liability and property damage (with respect to Tenant’s
property and any improvements to the Building made by Tenant but not as to the Building itself)
insurance with respect to the Demised Premises, in such limits as may be reasonably required from
time to time by Landlord. The limits of public liability insurance on the Commencement Date shall
be not less than $3,000,000 for death or injury to any number of persons or for property damage,
for each occurrence. In no event shall the limits of any coverage maintained by Tenant pursuant to
this Section 11.1 be considered as limiting Tenant’s liability under this Lease. The property
damage policy shall name Landlord, any person, firms or corporations (including, without being
limited to, any mortgagee or lessor of Landlord) designated by Landlord and Tenant as insureds to
the extent their interests may appear. The liability policies, which shall name the Landlord as an
additional insured, shall include blanket contractual liability

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coverage which insures contractual liability under the indemnifications set forth in Section
11.2 hereof and shall contain a clause that the insurer will not cancel or change the insurance
without first giving Landlord 30 days prior written notice. The insurance shall be written by an
insurance company, licensed and qualified to do business in the State in which the Property is
located, which is reasonably acceptable to Landlord. An original copy of the policy or a
certificate of insurance shall be delivered to Landlord upon the execution and delivery of this
Lease and replacement certificates shall be delivered not less than ten (10) days prior to the
expiration of any then existing coverage. The insurance which Tenant is required to maintain in
force and effect under this Section 11.1 shall be primary insurance as respects Landlord (and any
other additional insureds designated by Landlord) and not excess over or contributory with any
other available insurance. Certificates of insurance evidencing the liability insurance coverage
required under this Section 11.1 shall contain an endorsement to such effect. In addition, at all
times during the Term hereof, Tenant shall procure and maintain Worker’s Compensation Insurance in
accordance with the laws of the State in which the Property is located.

     Section 11.2 Indemnity and Non-Liability.

     (a) Neither Landlord nor Landlord’s agents (including, without being limited, to the
Managing Agent), employees, contractors, officers, trustees, directors, shareholders,
partners or principals (disclosed or undisclosed) shall be liable to Tenant or Tenant’s
agents, employees, contractors, invitees or licensees or any other occupant of the Demised
Premises, and Tenant shall save Landlord, its successors and assigns and their respective
agents, employees, contractors, officers, trustees, directors, shareholders, partners and
principals (disclosed or undisclosed) harmless from any loss, cost, liability, claim,
damage, expense (including reasonable attorneys’ fees and disbursements), penalty or fine
incurred in connection with or arising from any injury to Tenant or to any other person or
for any damage to, or loss (by theft or otherwise) of, any of Tenant’s property or of the
property of any other person, irrespective of the cause of such injury, damage or loss
(including the acts or negligence of any tenant or of any owners or occupants of adjacent or
neighborhood property or caused by operations in construction of any private, public or
quasi-public work) unless due to the gross negligence or willful misconduct of Landlord or
Landlord’s agents or employees. However, even if such loss or damage is caused by the gross
negligence or willful misconduct of Landlord, its agents or employees, Tenant waives, to the
full extent permitted by law, any claim for consequential damages in connection therewith.
To the extent of Tenant’s insurance coverage, Landlord, and its agents and employees, shall
not be liable, for any loss or damage to any person or property due to the gross negligence
of Landlord, its agents or employees.

     (b) Neither any (1) performance by Landlord, Tenant or others of any repairs,
improvements, alterations, additions, installations, substitutions, betterments or
decorations in or to the Property or the Building, the Building equipment and systems, the
Common Areas or the Demised Premises, (2) failure of Landlord or others to make any such
repairs or improvements, (3) damage to the Property or the Building, the Building equipment
and systems, the Common Areas, the Demised Premises or Tenant’s property, (4) injury to any
persons, caused by other tenants or persons in the Building, or by

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operations in the construction of any private, public, or quasi-public work, or by any
other cause, (5) latent defect in the Building, the Building equipment and systems, the
Common Areas or the Demised Premises, nor (6) inconvenience or annoyance to Tenant or injury
to or interruption of Tenant’s business by reason of any of the events or occurrences
referred to in the foregoing subdivisions (1) through (5) shall impose any liability on
Landlord to Tenant, other than, subject to Section 24.10 hereof, such liability as may be
imposed upon Landlord by law for Landlord’s gross negligence or the gross negligence of
Landlord’s agents or employees in the operation or maintenance of the Building, the Building
equipment and systems or the Common Areas or for the breach by Landlord of any express
covenant of this Lease on Landlord’s part to be performed.

     (c) Tenant hereby indemnifies and holds harmless Landlord and Landlord’s agents,
employees, contractors, officers, trustees, directors, shareholders, partners or principals
(disclosed or undisclosed) from any loss, cost, liability, claim, damage, expense (including
reasonable attorneys’ fees and disbursements), penalty or fine incurred in connection with
claims asserted by any third party arising from (1) any default by Tenant in the performance
of any of the terms of this Lease on Tenant’s part to be performed, or (2) the use or
occupancy or manner of use or occupancy of the Demised Premises by Tenant or any person
claiming under Tenant, or (3) any acts, omissions or negligence of Tenant or any such
person, or the contractors, agents, employees, invitees, licensees, assignees or sublessees
of Tenant or any such person, or (4) any accident, injury or damage whatsoever caused to any
person or to the property of any person and occurring in or about the Demised Premises.
Tenant’s obligations under this Section 11.2 shall survive the expiration or earlier
termination of this Lease.

     (d) Tenant shall pay to Landlord as Additional Rent, within 20 days after submission by
Landlord to Tenant of bills or statements therefor, sums equal to all losses, costs,
liabilities, claims, damages, fines, penalties and expenses referred to in this Section
11.2.

     Section 11.3 Waiver of Subrogation. Landlord and Tenant shall each endeavor to
procure an appropriate clause in, or endorsement to, each of its respective policies for property
damage, fire and extended coverage insurance, pursuant to which the insurance company waives
subrogation or consents to waiver of its right of recovery against the other party, which, in the
case of Tenant, shall be deemed to include any subtenant in the Demised Premises, and having
obtained such clause or endorsement of waiver of subrogation or consent to a waiver of the right of
recovery, such party hereby agrees that it will not make any claim against or seek to recover from
the other for any loss or damage to its property or the property of others covered by such property
damage fire or extended coverage insurance; provided, however, that the release, discharge and
covenant not to sue herein contained shall be limited by the terms and provisions of the waiver of
subrogation clause or endorsement, or the clause or endorsement consenting to a waiver of right of
recovery, and shall be co-extensive therewith. If either party hereto shall not be able to obtain
such clause or endorsement on a particular policy or if the inclusion of such clause or endorsement
would result in an increase in premium, then that party shall so notify the other party hereto at
least 15 days prior to the date the policy is to take effect. The other party shall be obligated
to pay the amount of any increase in premium resulting from the inclusion of

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such clause or endorsement, unless such other party notifies the party obtaining the
insurance, within twenty (20) days following notice of the amount of such increase, that such other
party declines to pay such increase, in which event the party obtaining the insurance may omit such
clause or endorsement. If a party shall fail to give notice either of inability to obtain such
clause or endorsement or notice of an increase in premium, then that party shall be deemed to have
waived its right of recovery from the other party with respect to any loss or damage insured
against by the policy with respect to which notice was not given as provided above.

     Section 11.4 Tenant shall in no event be responsible for the cost of remediation of any
Hazardous Materials in place as of the Commencement Date, except if resulting from the act or
omission of Tenant or its agents, employees or contractors. Landlord shall indemnify and hold
Tenant harmless from and against any and all costs of any required or necessary investigation,
repair, cleanup or detoxification and the preparation of any closure or other required plans in
connection therewith, whether voluntary or compelled by governmental authority, to the extent that
such costs are incurred due to Hazardous Materials which are located at the Property prior to the
execution of this Lease, and Landlord shall, at its sole cost and expense, promptly remediate such
Hazardous Materials if required by law.

ARTICLE 12

DAMAGE BY CASUALTY

     Section 12.1 Notice. Tenant shall give prompt written notice to Landlord of any
damage caused to the Demised Premises by fire or other casualty.

     Section 12.2 Restoration of Improvements.

     (a) In the event the Demised Premises are damaged by fire or other casualty, Landlord
shall, unless this Lease is terminated as hereinafter provided, proceed with reasonable
diligence and at its sole cost and expense to repair the Demised Premises, but only to the
extent of available insurance proceeds. Tenant shall promptly, at its sole cost and
expense, remove such of its furniture and other belongings from the Demised Premises as
Landlord shall require in order to repair and restore the Demised Premises. Until any such
repairs to the Demised Premises are completed, the Fixed Rent shall be abated in proportion
to the part of the Demised Premises, if any, that is unusable by Tenant in the conduct of
its business.

     (b) If (1) the Demised Premises shall be (i) totally destroyed or substantially
damaged, or (ii) partially destroyed or damaged by a casualty not sufficiently covered by
insurance or, even if covered by insurance, which cannot be restored to tenantable condition
within 180 days after the casualty, or (2) the Building shall be destroyed to the extent of
one-quarter or more of its then value or so damaged that substantial alteration, demolition
or reconstruction of the Building shall be required, whether or not covered by Landlord’s
insurance, then in either such event Landlord or Tenant (unless the casualty is caused by
Tenant, Tenant’s employees or Tenant’s agents) may elect to proceed to rebuild and repair
the Demised Premises or to terminate this Lease, effective upon giving

19

 

notice of such election to the other within 30 days after the occurrence of such
casualty. However, notwithstanding anything to the contrary set forth above, providing
Tenant has not elected to terminate the Lease in accordance with the provisions set forth
above, and Landlord’s rental interruption insurance will provide benefits to Landlord for
the period of time which is required for Landlord to rebuild and repair the Building
pursuant to this paragraph, Landlord shall proceed to so rebuild and repair the Building,
and Landlord shall not have the right to terminate this Lease in such circumstances.
Landlord’s obligation to rebuild and repair under this Section 12.2 shall in any event be
limited to restoring the Building and the Demised Premises to substantially the condition in
which they existed prior to the casualty (in no event shall Landlord be required to repair
any of Tenant’s leasehold improvements, fixtures, equipment, furniture, furnishings and
personal property). Tenant agrees that, promptly after the completion of such work by
Landlord, it will proceed with reasonable diligence and at its sole cost and expense to
rebuild, repair and restore its fixtures, equipment and other installations.

     (c) Tenant shall have no right to terminate this Lease in the event of the damage or
destruction of the Demised Premises other than as set forth in this Section 12.2 and hereby
waives the provisions of any Applicable Law granting Tenant such right.

     Section 12.3 Damage During Last Year of Lease Term. Without limiting Landlord’s
rights under Section 12.2, in the event the Building or Demised Premises shall be substantially
damaged during the last year of the term of this Lease, either Tenant or Landlord may elect to
terminate this Lease effective upon giving notice of such election, in writing, to the other within
thirty (30) days after the happening of the fire or other casualty.

ARTICLE 13

EMINENT DOMAIN

     Section 13.1 Taking of Demised Premises. If during the Term all of the Demised
Premises shall be taken for any public or quasi-public use under any statute or by right of eminent
domain, or sale-in-lieu of such taking, this Lease shall automatically terminate on the date on
which the condemning authority takes possession of the Demised Premises (hereinafter called the
“Date of Taking”). If so much of the Demised Premises (but less than all) is taken as
shall render the Demised Premises unusable for Tenant’s business purposes, Tenant and Landlord
shall each have the right to terminate this Lease by giving written notice to the other party of
termination within 30 days after the Date of Taking.

     Section 13.2 Partial or Temporary Taking of Building.

     (a) If during the Term, the Building, or any portion thereof, is taken or sold as set
out in Section 13.1, then (1) if substantial alteration or reconstruction of the Building is
necessary as a result thereof; (2) if one-quarter or more of the value of the Building is
included in such taking or sale; or (3) if such portion of the Common Areas shall be taken
as to materially interfere or prevent access to the Building or reduce the value of the Land

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and the Building by more than one-quarter; then, either Tenant or Landlord shall have
the right to terminate this Lease by giving to the other at least 30 days’ written notice
thereof.

     (b) If during the Term the Building or the Common Areas, or any portion thereof, shall
be taken as set out in Section 13.1 for a period of less than one (1) year, this Lease shall
remain in full force and effect subject to Section 13.4 hereof. If such a taking shall be
for a period of one (1) year or more, then the provisions of Section 13.1 and Section
13.2(a), as the case may be, shall be applicable.

     (c) If either party exercises its rights of termination under Section 13.1 or 13.2 (and
any such right must be exercised within 30 days after the Date of Taking, failing which such
right shall be deemed waived), this Lease shall terminate on the date stated in the notice,
provided, however, that no termination pursuant to notice hereunder may occur later than 60
days after the Date of Taking.

     Section 13.3 Surrender. On the date of any termination under Section 13.1 or 13.2,
Tenant shall immediately surrender to Landlord the Demised Premises and all interests therein under
this Lease and Tenant shall pay Landlord Rent through the date of termination (or through the Date
of Taking if such date shall not be the same as the date of termination). Landlord may, through
judicial process, re-enter and take possession of the Demised Premises and remove Tenant therefrom.

     Section 13.4 Rent Adjustment for Partial Taking of Demised Premises. If any portion
of the Demised Premises (but less than the whole thereof) is so taken, and no rights of termination
herein conferred are timely exercised, the Term shall expire (or, in respect of a taking pursuant
to Section 13.2(b) hereof, have no force and effect for the period of such temporary taking) with
respect to the portion so taken on (or from) the Date of Taking. In such event, the Rent
thereafter payable under this Lease shall be adjusted pro rata in order to account for the
resulting reduction (either temporarily or permanently) in the number of rentable square feet in
the Demised Premises.

     Section 13.5 Awards. Upon any taking or sale described in this Article 13, Landlord
shall be entitled to receive and retain the entire award or consideration for the affected lands
and improvements, and Tenant shall not have nor advance any claim against Landlord or anyone else
for the value of its property or its leasehold estate under this Lease, or for the costs or removal
or relocation, or business interruption expense or any other damages arising out of such taking or
purchase. Nothing herein shall give Landlord any interest in or preclude Tenant from seeking and
recovering on its own account a separate award from the condemning authority attributable to the
taking or purchase of Tenant’s trade fixtures, or the removal or relocation of its business and
effects, or the interruption of its business provided that Landlord’s award is not diminished
thereby. If any such award made or compensation paid to either party specifically includes an
award or amount for the other, the party first receiving the same shall promptly account therefor
to the other.

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ARTICLE 14

RIGHTS RESERVED TO LANDLORD

     Section 14.1 Access to Demised Premises. Landlord and Landlord’s agents shall have
the right (but shall not be obligated) to enter the Demised Premises in any emergency at any time,
and to perform any acts related to the safety, protection or preservation thereof or of the
Building. At other reasonable times, and upon reasonable notice, Landlord may enter the Demised
Premises (1) to examine and make such repairs, replacements and improvements as Landlord may deem
necessary or, subject to Tenant’s reasonable approval, reasonably desirable to the Demised Premises
or to any other portion of the Building, (2) for the purpose of complying with laws, regulations
and other requirements of governmental authorities or the provisions of this Lease, (3) for the
purpose of posting notices of nonresponsibility, or (4) for the purposes of showing the same to
prospective purchasers or mortgagees of the Building, and during the last 12 months of the Term for
the purpose of showing the same to prospective tenants. Tenant shall permit Landlord to use and
maintain and replace unexposed pipes and conduits in and through the Demised Premises and to erect
new unexposed pipes and conduits therein. Landlord may, during the progress of any work in the
Demised Premises, take all necessary materials and equipment into the Demised Premises and close or
temporarily suspend operation of areas of the Demised Premises without such interference
constituting an eviction. Tenant shall not be entitled to any damages by reason of loss or
interruption of business or otherwise during such periods. During such periods Landlord shall use
reasonable efforts to minimize any interference with Tenant’s use of the Demised Premises. If
Tenant is not present to open and permit an entry into the Demised Premises, Landlord or Landlord’s
agents may enter the same whenever such entry may be necessary or permissible by master key or
otherwise, provided reasonable care is exercised to safeguard Tenant’s property. Such entry shall
not render Landlord or its agents liable therefor, nor in such event shall the obligations of
Tenant hereunder be affected. If during the last month of the Term Tenant shall have removed all
or substantially all of Tenant’s property therefrom, Landlord may immediately enter, alter,
renovate or redecorate the Demised Premises without limitation or abatement of Rent or without
incurring liability to Tenant for any compensation, and such act shall have no effect on this Lease
or Tenant’s obligations hereunder.

     Section 14.2 Additional Rights. Landlord shall have the following additional rights
exercisable without notice (except as provided below) and without liability to Tenant for damage or
injury to property, person or business, all claims for damage being hereby released, and without
effecting an eviction or disturbance of Tenant’s use or possession or giving rise to any claim for
setoffs, or abatement of Rent:

     (a) Subject to Tenant’s reasonable approval, to change the name, number or designation
by which the Building may be known;

     (b) Subject to Tenant’s reasonable approval, to make such changes in or to the
Building, including the building equipment and systems, as Landlord may deem necessary or
desirable, provided that any such change does not deprive Tenant of a

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reasonable means of access to the Demised Premises or unreasonably interfere with the
use of the Demised Premises;

     (c) Intentionally deleted;

     (d) After any applicable notice and the expiration of any applicable cure period, to
perform any act, obligation or other commitment required of or by Tenant which Tenant has
not performed for any reason whatsoever (including, without being limited to, obtaining
insurance coverage), and to charge Tenant as Additional Rent all reasonable costs and
expenses incurred by Landlord for such performance, together with interest thereon at the
Default Rate from the dates of Landlord’s expenditures until paid.

ARTICLE 15

ASSIGNMENT AND SUBLETTING

Section 15.1 Consent Required.

     (a) Except with respect to a “Permitted Affiliate Transfer” (as hereinafter defined),
Tenant shall not, voluntarily or involuntarily, by operation of law or otherwise: (i)
assign, mortgage, pledge, encumber or in any manner transfer this Lease in whole or in part,
or (ii) sublet all or any part of the Demised Premises, or allow any other person to occupy
all or any part thereof, without the prior written consent of Landlord in each instance, the
granting of which consent shall not be unreasonably withheld, delayed or conditioned, and
any attempt to do any of such acts without such consent shall be null and void and of no
effect. Along with Tenant’s request, Tenant shall pay Landlord Five Hundred and No/100
Dollars ($500.00) to cover Landlord’s expenses in reviewing said request. Provided written
notice is given Landlord, a transfer of control of Tenant, including, without being limited
to, a transfer of stock or partnership interest or the merger, consolidation, sale of all or
substantially all of the other assets of Tenant or other corporate or other reorganization
of Tenant (whether or not Tenant shall be the surviving entity), shall not be deemed an
assignment under this Lease and shall not be subject to the provisions of this Article,
including the requirement of obtaining Landlord’s prior consent. The consent by Landlord to
any assignment, mortgage, pledge, encumbrance, transfer or subletting shall not constitute a
waiver of the necessity for such consent to any subsequent assignment, mortgage, pledge,
encumbrance, transfer or subletting.

     (b) In the event Tenant desires to assign this Lease or sublet all or a portion of the
Demised Premises, Tenant shall advise Landlord of its intention to sublease or assign this
Lease.

     (c) Within fifteen (15) days after receiving such notice, Landlord shall have the right
to terminate this Lease if the proposed transaction is an assignment; or as to a sublease,
terminate this Lease for only the portion of the Demised Premises to be subleased (the
“Subject Premises”).

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     (d) If within said fifteen (15) day period Landlord does not terminate this Lease in
the case of a proposed assignment or terminate the Lease as to the Subject Premises pursuant
to Section 15.1(c), Landlord shall not unreasonably withhold its consent to the proposed
sublease or assignment. Such consent shall be granted or denied (stating in reasonable
detail the reasons for any denial) within fifteen (15) days after Landlord receives a term
sheet setting forth the principal economic terms of the proposed sublease or assignment and
sufficient information to permit Landlord to determine the acceptability, financial
responsibility, and character of subtenant or assignee. If Landlord fails or refuses to
consent or deny its consent to any such transaction within three (3) business days from
receipt of written notice from Tenant following the expiration of the fifteen (15) day
period as provided in the immediately preceding sentence, advising Landlord of such failure
or refusal, Landlord shall be deemed to have approved such transaction. Such consent shall
be deemed to be reasonably withheld if: (i) in the judgment of Landlord the purposes for
which the subtenant or assignee intends to use the Demised Premises or Subject Premises are
in violation of the terms of this Lease; (ii) Tenant is in default under this Lease beyond
any applicable notice and cure period; (iv) the Subject Premises or the remaining balance of
the Demised Premises, if any, does not have appropriate means of ingress and egress or is
not suitable for normal renting purposes; (v) the proposed subtenant or assignee is a
governmental unit; (vi) the assignee or sublessee is not, in the reasonable judgment of
Landlord, solvent or does not have unencumbered assets of a value at least equal to twice
the projected annual costs of the obligations to be assumed; (vii) in the judgment of
Landlord such a sublease or assignment would violate any term, condition, covenant, or
agreement of the Landlord involving the Building, or any other tenant’s lease within it;
(viii) the proposed use or occupancy of the Demised Premises or Subject Premises, as the
case may be, by the assignee or sublessee would either violate any applicable law, statute,
ordinance, code or regulation or would impose any obligation upon Landlord to comply with
any of the foregoing or increase Landlord’s obligation to comply with any of the foregoing;
or (ix) any such proposed sublease or assignment would cause a breach of the ERISA
representations set forth in Section 24.14 below. Notwithstanding anything to the contrary
contained in this Lease, Tenant’s sole right and remedy in any dispute as to whether
Landlord’s consent to a proposed sublease or proposed assignment has been unreasonably
withheld shall be an action for declaratory judgment or specific performance and Tenant
shall not be entitled to any damages if Landlord is adjudged to have unreasonably withheld
such consent.

     (e) If Landlord grants consent to any assignment or sublease hereunder, it shall be
upon and subject to the following terms: (i) the terms and conditions of this Lease shall in
no way be deemed modified, abrogated or amended; (ii) Tenant shall pay Landlord a reasonable
fee (not to exceed $2,500.00) determined by Landlord for each sublease or assignment
submitted; and (iii) the consent shall not be deemed a consent to any further subletting or
assignments by either Tenant, subtenants or assignees. In addition to the foregoing
conditions, if Tenant shall assign this Lease, the assignee shall expressly assume all
obligations of Tenant hereunder in a written instrument reasonably satisfactory to Landlord
and furnished to Landlord by Tenant not later than fifteen (15) days prior to the effective
date of the assignment; if Tenant shall sublease any portion or

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all of the Demised Premises as permitted herein, Tenant shall obtain and furnish to
Landlord, not later than fifteen (15) days prior to the effective date of such sublease and
in form reasonably satisfactory to Landlord, the written agreement of such subtenant to the
effect that the subtenant will attorn to Landlord, at Landlord’s option and written request,
in the event this Lease terminates before the expiration of the sublease. If Tenant intends
to sublease all or a portion of the Demised Premises and received any required approval of
the Landlord, Tenant shall provide Landlord with a copy for review of the sublease intended
to be executed. Tenant shall not be released from any obligations or liabilities under this
Lease as a result of any assignment of this Lease or sublet of all or any portion of the
Demised Premises.

     (f) If Tenant shall assign this Lease or sublet all or any portion of the Demised
Premises pursuant to the terms of this Article 15, then Tenant shall pay Landlord as
additional Rent, fifty percent (50%) of the excess payments or other economic consideration
whether denominated as rent or otherwise (together with escalations) payable to Tenant under
the sublease or assignment which might be in excess of the Fixed Rent plus Additional Rent
payable to Landlord under this Lease (or, if only a portion of the Demised Premises is being
sublet, the excess payments or other economic consideration allocable on a rentable square
footage basis to the space sublet), less the costs incurred by Tenant in connection with
such assignment or sublease, including but not limited to brokers and legal fees and the
value of all tenant concessions such as, free rent, tenant improvement allowances or any
alterations performed by Tenant to accommodate such sublease or assignment.

     (g) Notwithstanding any provisions in this Article to the contrary, a “Permitted
Affiliate Transfer”, as defined below, is permitted without the prior written consent of
Landlord, but with prior notice to Landlord. A “Permitted Affiliate Transfer” means an
assignment/sublet where (a) the transferee/sublessee is directly or indirectly controlled by
the Tenant and (b) the transferee’s/sublessee’s use of the Demised Premises will be
consistent with that of the Tenant.

     (h) In the event Landlord approves any sublease or assignment of this Lease, or in the
event of the sale of all or substantially all of Tenant’s assets or a merger (for which
Landlord’s consent is not required), Landlord shall provide an estoppel statement containing
information similar to the estoppel certificate Tenant is required to provide pursuant to
Section 21.1 hereof upon Tenant’s written request.

ARTICLE 16

BANKRUPTCY

     Section 16.1 Bankruptcy. If at any time after the execution and delivery of this
Lease, there shall be filed by or against Tenant in any court pursuant to any statute either of the
United States or of any State a petition in bankruptcy or insolvency or for reorganization or for
the appointment of a receiver or trustee or conservator of all or a portion of Tenant’s property,
or if Tenant makes an assignment for the benefit of creditors, this Lease, (a) if such event shall
occur

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prior to the Commencement Date, shall ipso facto be cancelled and terminated, or (b) if such
event shall occur on or after the Commencement Date, at the option of Landlord to be exercised
within 60 days after notice of the happening of any one or more of such events, may be cancelled
and terminated, and in any such event of termination neither Tenant nor any person claiming through
or under Tenant or by virtue of any statute or of an order of any court shall be entitled to
possession or to remain in possession of the Demised Premises but shall forthwith quit and
surrender the Demised Premises, and Landlord, in addition to the other rights and remedies granted
by virtue of any other provision in this Lease or by virtue of any statute or rule of law, may
retain as damages any Rent, Security Deposit, or moneys received by it from Tenant or others on
behalf of Tenant.

     Section 16.2 Measure of Damages. In the event of the termination of this Lease
pursuant to Section 16.1 above, Landlord shall be entitled to the same rights and remedies as set
forth in Article 17.

ARTICLE 17

DEFAULT

     Section 17.1 Events of Default. This Lease and the Term and estate hereby granted are
subject to the limitation that:

     (a) whenever Tenant shall have failed to pay any installment of Rent, or any portion
thereof when the same shall be due and payable, and Tenant shall have failed to pay same for
a period of five (5) days after notice of such failure has been given to Tenant; or

     (b) whenever Tenant shall have failed to comply with, shall have violated or shall be
in default in the performance of any other provision of this Lease and Tenant shall have
failed to cure such default (except a default under Section 17.1(e)) within 20 days after
notice from Landlord of such noncompliance, violation or default (in the case of a default
which cannot with due diligence be cured within a period of 20 days, Tenant shall have such
additional time to cure same as may reasonably be necessary, provided Tenant commences
curing such default within the 20 day period and proceeds promptly, effectively,
continuously and with due diligence to cure such default after delivery of said notice); or

     (c) whenever Tenant shall vacate or abandon the Demised Premises and leave same vacated
or abandoned for a period of 20 days after notice from Landlord; or

     (d) whenever any material warranty, representation or statement made or furnished by
Tenant to Landlord at any time in connection with this Lease is determined to have been
false or misleading in any material respect when made or furnished; or

then regardless and notwithstanding the fact that Landlord has or may have some other remedy under
this Lease or by virtue hereof, or in law or in equity, Landlord may give to Tenant a notice

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(the “Termination Notice”) of intention of Landlord to end the term of this Lease
specifying a day not less than ten (10) days thereafter and, upon the giving of the Termination
Notice, this Lease and the Term and estate hereby granted shall expire and terminate upon the day
so specified in the Termination Notice as fully and completely and with the same force and effect
as if the day so specified were the Expiration Date and all rights of Tenant shall terminate and
Tenant shall remain liable for damages as hereinafter provided. From and after any date upon which
Landlord is entitled to give a Termination Notice, Landlord, without further notice and with or
without giving such Termination Notice, may enter upon, re-enter, possess and repossess itself of
the Demised Premises, by summary proceedings, ejectment or otherwise in accordance with law, and
may dispossess and remove Tenant and all other persons and property from the Demised Premises and
may have, hold and enjoy the Demised Premises and the right to receive all rental and other income
of and from the same. As used in this Lease the words “enter” and “re-enter” are not restricted to
their technical legal meanings.

     Upon and after such entry into possession Landlord may, but shall have no obligation to, relet
the Demised Premises, or any part thereof, for the account of Tenant, to any person, firm or
corporation, other than Tenant, for such Rent, for such time and upon such terms as Landlord, in
Landlord’s reasonable discretion, shall determine, and Landlord shall not be required to accept any
tenant offered by Tenant or to observe any instruction given by Tenant about such reletting.

     Section 17.2 Damages.

     (a) Tenant covenants and agrees that in the event of the termination of this Lease or
re-entry by Landlord, under, any of the provisions of this Article 17 or pursuant to law, by
reason of default hereunder on the part of Tenant, Tenant shall pay to Landlord, as damages
with respect to this Lease, at the election of Landlord:

     (1) a sum which at the time of such termination of this Lease or at the time of
any re-entry by Landlord, as the case may be, represents the excess, if any, of the
present value (discounted at 5% per annum) of:

     (i) the aggregate of the Rent which would have been payable by Tenant
for the period commencing with such earlier termination of this Lease or the
date of any such re-entry, as the case may be, and ending with the
Expiration Date of this Lease, had this Lease not so terminated or had
Landlord not so re-entered the Demised Premises over

     (ii) the aggregate fair market rental value of the Demised Premises for
the same period; or

     (2) sums equal to the Rent which would have been payable by Tenant had this
Lease not so terminated, or had Landlord not so re-entered the Demised Premises,
payable upon the days specified in this Lease following such termination or such
re-entry and until the Expiration Date of this Lease, provided, however, that if the
Demised Premises shall be leased or re-let during said period, Landlord shall credit
Tenant with the net rents, if any, received by Landlord from

27

 

such leasing or re-letting, such net Rent to be determined by first deducting
from the gross rents as and when received by Landlord from such leasing or
re-letting the expenses incurred or paid by Landlord in terminating this Lease or of
re-entering the Demised Premises and of securing possession thereof, as well as the
expense of leasing and re-letting, including altering and preparing any portion of
the Demised Premises for new tenants, brokers’ commissions and all other expenses
properly chargeable against the Demised Premises and the rental therefrom; but in no
event shall Tenant be entitled to receive any excess of such net rents over the
Rent, payable by Tenant to Landlord hereunder.

     (b) Suit or suits for the recovery of any and all damages, or any installments thereof,
provided for hereunder may be brought by Landlord from time to time at its election, and
nothing contained herein shall be deemed to require Landlord to postpone suit until the date
when the term of this Lease would have expired if it had not been terminated under the
provisions of this Article 17, or under provisions of any law, or had Landlord not
re-entered the Demised Premises.

     (c) Nothing herein contained shall be construed as limiting or precluding the recovery
by Landlord against Tenant of any damages to which Landlord may lawfully be entitled in any
case other than those particularly provided for above other than punitive or consequential
damages, which are hereby waived by Landlord.

     Section 17.3 Landlord Default. It shall be deemed a “Landlord Default” if Landlord
breaches any of the terms or covenants of this Lease to be performed by Landlord, and such breach
continues for thirty (30) days (ten (10) days in the event of failure to pay an amount due and
owing to Tenant) after notice from Tenant to Landlord of such breach; provided, however, that such
failure shall not be a Landlord Default if such failure could not reasonably be cured during such
thirty (30) day period, Landlord has commenced the cure within such thirty (30) day period and so
long as Landlord is thereafter diligently, promptly, effectively and continuously pursuing such
cure to completion. Upon the occurrence of a Landlord Default, Tenant may exercise such remedies
as are available to Tenant at law or equity, other than consequential or punitive damages or those
remedies which are specifically waived under this Lease. Notwithstanding the foregoing, in the
event of a Landlord Default and there then exists a mortgage encumbering the Property, before
Tenant may exercise its remedies as above provided, Tenant shall first give the mortgagee (as
identified by Landlord) written notice of the Landlord Default and such mortgagee shall be afforded
a reasonable opportunity (not less than thirty (30) days) to effect a cure of such Landlord
Default.

     Section 17.4 Waiver of Jury Trial. To the fullest extent permitted by the applicable
law, the parties hereto shall and they hereby do waive trial by jury in any action, proceeding or
counterclaim brought by either of the parties hereto against the other on any matters whatsoever
arising out of or in any way connected with this Lease or the interpretation thereof, the
relationship of Landlord and Tenant, Tenant’s use or occupancy of the Demised Premises, and/or any
claim of injury or damage.

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ARTICLE 18

SURRENDER

     Section 18.1 Possession. Upon the expiration or earlier termination of this Lease,
Tenant shall immediately quit and surrender possession of the Demised Premises in as good a state
and condition as they were when entered into, reasonable wear and tear and casualty damage (other
than that which Tenant is obligated to repair) excepted. Upon such surrender, all right, title and
interest of Tenant in the Demised Premises shall cease.

     Section 18.2 Merger. The voluntary or other surrender of this Lease by Tenant or the
cancellation of this Lease by mutual agreement of Tenant and Landlord shall not work a merger, but
shall, at Landlord’s option, terminate all or any subleases and subtenancies or operate as an
assignment to Landlord of all or any subleases or subtenancies. Landlord’s option hereunder shall
be exercised by notice to Tenant and all known sublessees or subtenants in the Demised Premises or
any part thereof.

ARTICLE 19

HOLDING OVER

     Section 19.1 Holding Over. If Tenant retains possession of the Demised Premises or
any part thereof after the expiration or earlier termination of this Lease, Tenant shall pay as
Rent a sum equal to 150% of the amount of Fixed Rent plus Additional Rent hereunder, payable for
the month preceding such holding over computed on a daily basis for each day that Tenant remains in
possession. Tenant shall also be liable for and shall pay to Landlord, all direct damages
sustained by reason of Tenant’s holding over. The provisions of this section do not waive
Landlord’s right of re-entry or right to regain possession by actions at law or in equity or any
other rights hereunder, and any receipt of payment by Landlord shall not be deemed a consent by
Landlord to Tenant’s remaining in possession or be construed as creating or renewing any lease or
right of tenancy between Landlord and Tenant.

ARTICLE 20

REMEDIES CUMULATIVE

     Section 20.1 No Waiver. No waiver by Landlord or Tenant of a breach of any covenants,
agreements, obligations or conditions of this Lease shall be construed to be a waiver of any future
breach of the same or any other covenant, agreement, obligation or condition hereof. No receipt of
money by Landlord from Tenant after notice of default, or after the termination of this Lease or
the commencement of any suit or final judgment of possession of the Demised Premises, shall
reinstate, continue or extend the term of this Lease or affect any notice, demand or suit. The
rights and remedies hereby created are cumulative, and the use of one remedy shall not be construed
to exclude or waive the right to the use of another, or exclude any other right or remedy allowed
by law.

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ARTICLE 21

ESTOPPEL CERTIFICATE, SUBORDINATION, ATTORNMENT

     Section 21.1 Estoppel Certificate. Tenant shall at any time upon the request of
Landlord, execute and deliver in recordable form and in substance satisfactory to Landlord, an
estoppel certificate certifying: the date Tenant accepted occupancy of the Demised Premises; the
date to which Rent has been paid; the amount of any Security Deposit; that this Lease is in full
force and effect and has not been modified or amended (or if modified or amended, describing the
same) and that there are no defenses or offsets thereto or defaults of Landlord under this Lease
(or if any be claimed, describing the same); and such other matters as Landlord may reasonably
request. Tenant’s failure to deliver such certificate within ten (10) days of the demand therefor
shall be a default hereunder.

     Section 21.2 Subordination. Subject to Landlord’s representation as set forth in
Section 24.4 hereof and the last sentence of this Section 21.2, this Lease is and shall be subject
and subordinate to all ground or underlying leases, mortgages and deeds of trust which now or
hereafter affect the Land, Building and/or any ground or underlying leases thereof and to all
renewals, modifications, consolidations, replacements and extensions thereof. The provisions of
this section shall be automatic and shall not require any further action. In confirmation of such
subordination, Tenant will execute and deliver upon demand of Landlord any and all instruments
desired by Landlord subordinating this lease to such lease, mortgage or deed of trust. Landlord
represents that there is currently no mortgage lien against the Property. Notwithstanding the
foregoing, Tenant’s obligation to subordinate this Lease to the lien of any future mortgagee will
be conditioned upon Tenant’s receipt of a non-disturbance agreement in such mortgagee’s customary
form, with commercially reasonable changes requested by Tenant and providing such form does not
change or modify any of the material provisions of this Lease.

     Section 21.3 Attornment. Tenant agrees that, at the option of the landlord under any
ground lease now or hereafter affecting the real property of which Demised Premises forms a part,
Tenant shall attorn to said landlord in the event of the termination or cancellation of such ground
lease and if requested by said landlord, enter into a new lease with said landlord (or a successor
ground-lessee designated by said landlord) for the balance of the term then remaining hereunder
upon the same terms and conditions as those herein provided.

     Section 21.4 Mortgages. Tenant covenants and agrees that, if by reason of default
under any mortgage or deed of trust which may now or hereafter affect the Land and/or the Building,
the mortgagee thereunder enters into and becomes possessed of the said mortgaged property either
through possession or foreclosure action or proceeding, or in the event of the sale of the said
mortgaged property as a result of any action or proceeding to foreclosure the said mortgage, Tenant
will attorn to the mortgagee or such then owner as its landlord under this Lease. Tenant agrees to
execute and deliver, at any time and from time to time, upon the request of the mortgagee or the
then owner of the said mortgaged property of which the Demised Premises forms a part any instrument
which may be necessary or appropriate to evidence such attornment. Tenant further waives the
provisions of any statute or rule of law now or hereafter in effect which may give or purport to
give Tenant any right of election to terminate this Lease or to

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surrender possession of the Demised Premises in the event any proceeding is brought by the
mortgagee under any such mortgage to terminate the same, and agrees that this Lease shall not be
affected in any way whatsoever by any such proceeding.

ARTICLE 22

QUIET ENJOYMENT

     Section 22.1 Quiet Enjoyment. Landlord covenants and agrees with Tenant that upon
payment by Tenant of the Rent hereunder and upon the observance and performance of all of the
terms, covenants and conditions on Tenant’s part to be observed and performed, Tenant may peaceably
and quietly enjoy the Demised Premises, free of all claims from Landlord and those claiming by,
through or under Landlord, but subject, nevertheless, to the terms and conditions of this Lease
(including, without being limited to, the provisions of Article 21).

ARTICLE 23

NOTICES

     Section 23.1 Notices. Whenever any notice or consent is required or permitted
hereunder, such notice or consent shall be in writing. Any notice or document required or
permitted to be delivered hereunder shall be deemed to be delivered (a) upon receipt or refusal of
receipt when sent by recognized overnight courier or (b) upon receipt or refusal of receipt when
deposited in the United States Mail, postage prepaid, Registered or Certified Mail, Return Receipt
Requested, addressed to the parties hereto at the addresses set forth in Article l, or at such
other addresses as they have theretofore specified by written notice delivered in accordance
herewith.

ARTICLE 24

MISCELLANEOUS PROVISIONS

     Section 24.1 Time. Time is and shall be of the essence of this Lease and all its
provisions.

     Section 24.2 Applicable Law and Construction.

     (a) This Lease shall be governed by and construed under the laws of the State in which
the Property is located.

     (b) The necessary grammatical changes required to make the provisions of this Lease
apply in the plural sense where there is more than one tenant and to either corporations,
associations, partnerships or individuals, males or females, shall in all instances be
assumed as though fully expressed. If there is more than one person or entity who or which
are Tenant under this Lease, the obligations imposed upon Tenant under this Lease shall be
joint and several. The relationship between Landlord and Tenant created hereunder shall be
that of lessor and lessee and nothing herein shall be

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construed as creating any joint venture or partnership. The captions used in this
Lease are for convenience only and do not in any way limit or amplify the terms and
provisions hereof.

     Section 24.3 Parties Bound. It is agreed that this Lease, and each and all the
covenants and obligations hereof, shall be binding upon and inure to the benefit of, as the case
may be, the parties hereto, their respective heirs, executors, administrators, successors and
assigns, subject to all agreements and restrictions herein contained with respect to assignment or
other transfer of Tenant’s interest herein.

     Section 24.4 No Representations by Landlord. Neither Landlord nor Landlord’s agents
have made any representations or promises with respect to the physical condition of the Property or
the Building, the Demised Premises, permissible uses of Demised Premises, the rents, leases,
expenses of operation or any other matter or thing affecting or related to the Demised Premises
except as herein expressly set forth, and no rights, easements, or licenses are acquired by Tenant
by implication or otherwise except as expressly set forth in the provisions of this Lease. Tenant
has inspected the Building and the Demised Premises and is thoroughly acquainted with their
condition, and agrees to accept the same “as is” subject to completion of Landlord’s Work, if any.
All understandings and agreements heretofore made between the parties hereto are merged in this
Lease, which alone fully and completely expresses the agreement between Landlord and Tenant, and
any executory agreement hereafter made shall be ineffective to change, modify, discharge or effect
an abandonment of it, in whole or in part, or a surrender of this Lease or of the Demised Premises
or any part thereof or of any interest of Tenant therein unless such executory agreement is in
writing and signed by Landlord and Tenant. Notwithstanding any provision to the contrary, Landlord
represents that (i) any existing ground lease affecting the Property is subordinate to this Lease;
and (ii) the Building was constructed substantially in accordance with the plans filed with the
applicable governmental authorities.

     Section 24.5 Brokers. Tenant warrants that it has had no dealings with any broker,
agent or any other person in connection with the negotiation or execution of this Lease other than
the broker(s) identified in Article 1. Landlord agrees to compensate the Broker pursuant to a
separate agreement. Landlord and Tenant each agree to indemnify and hold harmless the other from
and against any and all cost, expense, or liability for commissions or other compensation and
charges claimed by any broker or agent (other than the broker(s) identified in Article 1) with
respect to this Lease on account of their respective acts.

     Section 24.6 Severability. The invalidity or unenforceability of any provision of
this Lease shall not affect or impair the validity of any other provision.

     Section 24.7 Force Majeure. In the event Landlord or Tenant shall be delayed or
hindered in or prevented from the performance of any act required hereunder by reason of strikes,
lock-outs, labor troubles, inability to procure materials, failure of power, restrictive
governmental laws or regulations, riots, insurrection, war or other reason of a like nature beyond
their the reasonable control, in performing work or doing acts required under the terms of this

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Lease, then performance of such act shall be extended for a period equivalent to the period of
such delay.

     Section 24.8 Definition of Landlord. As used in this Lease, the term “Landlord” shall
mean only the owner, or the mortgagee in possession, for the time being, of the Building and the
Land or the owner of a lease of the Building or of the Land and the Building, so that in the event
of any sale of the Building or of the Land and the Building or of said Lease, or in the event of a
lease of the Building or of the Land and the Building, said Landlord shall be and hereby is
entirely freed and relieved of all covenants and obligations of Landlord hereunder thereafter to be
performed or observed, and it shall be deemed and construed without further agreement between the
parties or their successors in interest, or between the parties and any such purchaser or lessee,
that such purchaser or lessee has assumed and agreed to perform and observe any and all covenants
and obligations of Landlord hereunder.

     Section 24.9 No Option. The submission of this Lease for examination or execution
does not constitute a reservation of or option for the Demised Premises, and this Lease becomes
effective as a lease only upon execution and delivery thereof by Landlord and Tenant.

     Section 24.10 Exculpatory Clause. All separate and personal liability of Landlord or
any trustee, director, officer, partner or principal (disclosed or undisclosed) thereof of every
kind or nature, if any, is waived by Tenant, and by every person now or hereafter claiming by,
through or under Tenant; and Tenant shall look solely to Landlord’s estate in the Property for the
payment of any claim against Landlord.

     Section 24.11 No Recording. Tenant shall not record this Lease, or any portion or any
reference hereto. In the event Tenant records this Lease, or permits or causes this Lease, or any
portion hereof or reference hereto to be recorded, this Lease shall terminate at Landlord’s option
or Landlord may declare a default hereunder and pursue any and all of its remedies provided in this
Lease.

     Section 24.12 No Light, View or Air Easements. Any diminution or shutting off of
light, view or air by any structure which may be erected on lands adjacent to the Property shall in
no way affect this Lease or impose any liability on Landlord.

     Section 24.13 Financial Statements. In the event Tenant is not then a publically
traded entity, Tenant, within 15 days after request, but not more than once each calendar year,
shall provide Landlord with a current financial statement and such other information as Landlord
may reasonably request in order to create a “business profile” of Tenant and determine Tenant’s
ability to fulfill its obligations under this Lease.

     Section 24.14 ERISA. Tenant hereby represents and warrants to Landlord that (i)
Tenant is not a “party in interest” (within the meaning of Section 3(14) of the Employee Retirement
Income Security Act of 1974, as amended) or a “disqualified person” (within the meaning of Section
4975 of the Internal Revenue Code of 1986, as amended) with respect to any retirement or pension
plan of the Metropolitan Life Insurance Company, and (ii) Tenant is not

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and will not become a “benefit plan investor” as defined in Section 3(42) of ERISA or a
“governmental plan” within the meaning of Section 3(32) of ERISA.

     Section 24.15 Patriot Act. Tenant represents, warrants and covenants that neither
Tenant nor any of its partners, officers, directors, members or shareholders (i) is listed on the
Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Asset
Control, Department of the Treasury (“OFAC”) pursuant to Executive Order No. 13224, 66 Fed. Reg.
49079 (Sept. 25, 2001)(“Order”)and all applicable provisions of Title III of the USA Patriot Act
(Public Law No. 107-56 (October 26, 2001)); (ii) is listed on the Denied Persons List and Entity
List maintained by the United States Department of Commerce; (iii)is listed on the List of
Terrorists and List of Disbarred Parties maintained by the United States Department of State, (iv)
is listed on any list or qualification of “Designated Nationals” as defined in the Cuban Assets
Control Regulations 31 C.F.R. Part 515; (v) is listed on any other publicly available list of
terrorists, terrorist organizations or narcotics traffickers maintained by the United States
Department of State, the United States Department of Commerce or any other governmental authority
or pursuant to the Order, the rules and regulations of OFAC (including without limitation the
Trading with the Enemy Act, 50 U.S.C. App. 1-44; the International Emergency Economic Powers Act,
50 U.S.C. §§ 1701-06; the unrepealed provision of the Iraq Sanctions Act, Publ.L. No. 101-513; the
United Nations Participation Act, 22 U.S.C. § 2349 aa-9; The Cuban Democracy Act, 22 U.S.C. §§
60-01-10; The Cuban Liberty and Democratic Solidarity Act, 18.U.S.C. §§ 2332d and 233; and The
Foreign Narcotic Kingpin Designation Act, Publ. L. No. 106-120 and 107-108, all as may be amended
from time to time); or any other applicable requirements contained in any enabling legislation or
other Executive Orders in respect of the Order (the Order and such other rules, regulations,
legislation or orders are collectively called the “Orders”); (vi) is engaged in activities
prohibited in the Orders; or (vii) has been convicted, pleaded nolo contendere, indicted, arraigned
or custodially detained on charges involving money laundering or predicate crimes to money
laundering, drug trafficking, terrorist-related activities or other money laundering predicate
crimes or in connection with the Bank Secrecy Act (31 U.S.C. §§ 5311 et. seq.).

     Section 24.16 Signage. Tenant shall be permitted to install identification signage
(i) on the entry doors to the Demised Premises, or (ii) on a monument sign if approved by
governmental authorities. All such signage shall be installed at Tenant’s sole expense, and only
after first receiving Landlord’s approval of plans and specifications therefor, not to be
unreasonably withheld, as well as any necessary permits, and must comply will all applicable laws,
codes and ordinances. At the expiration or earlier termination of the Term, Tenant shall remove
all such signage and repair any damage caused by such removal, all at Tenant’s sole cost and
expense

     Section 24.17 Renewal Option. Tenant shall, provided the Lease is in full force and
effect and Tenant is not in monetary default under the terms and conditions of the Lease at the
time of notification or commencement beyond applicable notice and cure periods, have one (1) option
to renew this Lease for a term of five (5) years on the same terms and conditions set forth in the
Lease, except as modified by the terms, covenants and conditions as set forth below:

34

 

     (a) If Tenant elects to exercise said option, then Tenant shall provide Landlord with
written notice no earlier than the date which is fifteen (15) months prior to the expiration
of the then current term of the Lease but no later than the date which is ten (10) months
prior to the expiration of the then current term of this Lease. If Tenant fails to provide
such notice, Tenant shall have no further or additional right to extend or renew the term of
the Lease.

     (b) The Fixed Rent and Monthly Fixed Rent in effect at the expiration of the then
current term of the Lease shall be adjusted to reflect the fair market rental for comparable
space in similar buildings in the same rental market as of the date the renewal term is to
commence, taking into account concessions then being provided for renewals by landlords of
such similar buildings (including without limitation rent abatement and tenant improvement
allowances) as well as the specific provisions of the Lease which will remain constant.
Landlord shall advise Tenant of the new Fixed Rent and Monthly Fixed Rent for the Demised
Premises no later than thirty (30) days after receipt of Tenant’s written request therefor.
Said request shall be made no earlier than thirty (30) days prior to the first date on which
Tenant may exercise its option under this Section 24.17. Said notification of the new Fixed
Rent may include a provision for its escalation to provide for a change in fair market
rental between the time of notification and the commencement of the renewal term. If Tenant
and Landlord are unable to agree on a mutually acceptable rental rate not later than four
(4) months prior to the expiration of the then current term, Landlord and Tenant shall each
appoint a qualified MAI appraiser doing business in the area, in turn those two independent
MAI appraisers shall appoint a third MAI appraiser and the majority shall decide upon the
fair market rental for the Demised Premises as of the expiration of the then current term.
Landlord and Tenant shall equally share in the expense of this appraisal. Tenant may elect
to rescind its exercise of the renewal option within three (3) business days after Tenant is
advised of the MAI appraisal determination, provided that Tenant pays for the entire MAI
appraisal cost.

This option is not transferable except to an Affiliate or entity which acquires all or
substantially all of Tenant’s assets, or involved with a merger with Tenant (collectively,
Permitted Transferees”); the parties hereto acknowledge and agree that they intend that the
aforesaid option to renew this Lease shall be “personal” to Tenant as set forth above and that in
no event will any assignee or sublessee, except a Permitted Transferee, have any rights to exercise
the aforesaid option to renew. However, in the event there is any other transfer in the control of
Tenant, the option shall be transferable to the new controlling entity.

35

 

     IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed as of the 21st
day of December, 2009.

	 	 	 	 	 	 	 
	TENANT:	 	LANDLORD:
	 
	G III APPAREL GROUP LTD, a

Delaware
corporation	 	GRANITE SOUTH BRUNSWICK LLC, a

Delaware limited liability company
	 
	 	 	 	 	 	 
	By:

	 	/s/ Wayne S. Miller
	 	By:
	BlackRock Granite Property Fund,
	 

	 	 	 	 	 	 
	 

	 	Name: Wayne S. Miller
	 	 	L.P., its Sole Member
	 
	 	Title: Chief Operating Officer
	 	 	 	 
	 

	 	 	 	By:
	BlackRock Granite Property Fund,
	 

	 	 	 	 	LLC, its General Partner
	 
	 

	 	 	 	By:
	BlackRock Granite Property Fund,
	 

	 	 	 	 	Inc., its Sole Member
	 
	 

	 	 	 	By:
	BlackRock Realty Advisors, Inc., its
	 

	 	 	 	 	Investment Manager
	 	 	 	 	 
	 	 	 	 	By:  	/s/ Robert D. Norberg
 
	 	 	 	 	 	Name:  	Robert D. Norberg 
	 	 	 	 	 	Title:  	Director 

36

 

EXHIBIT A

PLAN SHOWING TENANT’S SPACE

			
	 	 	 
	140 Docks Corner Road
	 	New Jersey Turnpike
	 
	 	Exit 8A

A-1

 

EXHIBIT B

LEGAL DESCRIPTION OF PROPERTY

	 	 	 

	Issued By:
	 	 
	   CHICAGO TITLE INSURANCE COMPANY

	 	SCHEDULE A
	   TWO UNIVERSITY PLZ STE 14, HACKENSACK NJ 07601     PHONE: (201)489-5000          FAX: (201)489-5336

	 	(continued)
	   Your Reference: GRANTTE-TBA/NBU # 160290923
	 	 

Title No: 2009-80358

LEGAL DESCRIPTION

EXHIBIT “A”

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF MIDDLESEX, STATE OF NEW JERSEY,
AND IS DESCRIBED AS FOLLOWS:

ALL THAT CERTAIN TRACT, PARCEL AND LOT OF LAND LYING AND BEING SITUATE IN THE TOWNSHIP OF
SOUTH BRUNSWICK, COUNTY OF MIDDLESEX, STATE OF NEW JERSEY, BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:

BEGINNING AT THE POINT IN THE SOUTHERLY RIGHT-OF-WAY LINE OF JAMESBURG ROAD (A.K.A. DOCKS CORNER
ROAD) (VARIABLE WIDTH) , WHERE THE SAME IS INTERSECTED BY THE EASTERLY LOT LINE OF BLOCK 15.03
LOT 10.011; THENCE,

1. EXTENDING ALONG THE SOUTHERLY RIGHT-OF-WAY LINE OF JAMESBURG ROAD, SOUTH 50°43'
29"
 EAST, A DISTANCE OF 30.23 FEET TO A POINT IN THE WESTERLY LINE OF
BLOCK 15.03, LOT
9.05; THENCE,

2. LEAVING SAID SOUTHERLY RIGHT-OF-WAY LINE OF JAMESBURG ROAD AND EXTENDING ALONG THE WESTERLY
LINE OF BLOCK 15.03, LOT 9.05, SOUTH 32°15'41" WEST, A DISTANCE OF 1,390.53 FEET TO A POINT IN THE
SOUTHERLY LINE OF BLOCK 15.03 LOT 9.05; THENCE,

3.
EXTENDING ALONG THE SOUTHERLY LINE OF BLOCK 15.03 LOT 9.05 SOUTH 62°06'21" EAST, A DISTANCE OF
1,251.96 FEET TO A POINT IN THE WESTERLY LINE OF BLOCK 15.03, LOT
9.03, LANDS NOW OR FORMERLY OF PUBLIC SERVICE ELECTRIC & GAS CO.; THENCE,

4. ALONG THE WESTERLY LINE OF BLOCK 15.03, LOT 9.03 SOUTH 27°57'49" WEST, A DISTANCE OF 1,332.44
FEET TO A POINT IN THE NORTHERLY LINE OF UNITED NEW JERSEY RAILROAD CANAL CO. SECTION 262 LOT 4,
JAMESBURG BRANCH — PENNA. R.R. (66' WIDE); THENCE,

5. EXTENDING ALONG SAID RAILROAD RIGHT-OF-WAY NORTH 67°46'09" WEST, A DISTANCE OF 1,399.58
FEET TO A POINT IN THE EASTERLY LINE OF BLOCK 15.03, LOT 11.05, LANDS
NOW OR
FORMERLY OF 300 HERROD BOULEVARD, LLC; THENCE

6. EXTENDING ALONG THE EASTERLY LINE OF BLOCK 15.03, LOTS 11.05, 11.06 AND 10.011
NORTH 32°15’41” EAST, A DISTANCE OF 2,871.35 FEET TO THE FIRST MENTIONED POINT AND
PLACE OF BEGINNING.

THIS DESCRIPTION IS PREPARED IN ACCORDANCE WITH SURVEY MADE BY LANGAN ENGINEERING AND
ENVIRONMENTAL SERVICES, INC., DATED NOVEMBER 21, 2008.

TOGETHER WITH ACCESS EASEMENT SET FORTH IN DEED BOOK 5764 PAGE 602, DESCRIBED AS
FOLLOWS:

BEING A
36 FOOT WIDE ACCESS EASEMENT SHOWN ON A CERTAIN MAP ENTITLED “MINOR SUBDIVISION, IFF SOUTH
BRUNSWICK FACILITY, SOUTH BRUNSWICK TOWNSHIP, MIDDLESEX COUNTY, NEW JERSEY”, PREPARED BY SCHOOR
DEPALMA, MANALAPAN, DATED MAY 30, 2002 LAST REVISED SEPTEMBER 18, 2006 AND BEING FURTHER DESCRIBED
AS FOLLOWS TO WIT:

B-1

 

	 	 	 

	Issued By:
	 	 
	   CHICAGO TITLE INSURANCE COMPANY

	 	SCHEDULE A
	   TWO UNIVERSITY PLZ STE 14, HACKENSACK NJ 07601     PHONE: (201)489-5000          FAX: (201)489-5336

	 	(continued)
	   Your Reference:           GRANITE-TBA/NBU # 160290923
	 	 

Title No: 2009-80358

BEGINNING
AT A POINT IN THE DISTANT THE FOLLOWING TWO COURSES FROM THE POINT OF INTERSECTION FORMED
BY THE EXITING NORTHEASTERLY LINE OF LOT 4 BLOCK 262, LANDS NOW OR FORMERLY OF CONRAIL-UNITED NEW
JERSEY RAILROAD & CANAL CO., WITH THE EXISTING NORTHWESTERLY LINE OF LOT 9.03 BLOCK 15.03, SAID
ADJOINING LOTS AS SHOWN ON AFORESAID MAP AND RUNNING

A. NORTH 27 DEGREES 57 MINUTES 49 SECONDS EAST, 1332.44 FEET TO A POINT OF
INTERSECTION FORMED BY THE PROPOSED DIVISION LINE BETWEEN LOTS 9.05 AND 9.06 BLOCK 153
AND THE NORTHWESTERLY LINE OF LOT 9.03 BLOCK 153; THENCE

B. NORTH 62 DEGREES 06 MINUTES 21 SECONDS WEST, 1215.86 FEET ALONG THE PROPOSED
DIVISION LINE BETWEEN LOTS 9.05 AND 9.06 OF BLOCK 153 TO THE POINT AND PLACE OF
BEGINNING AND RUNNING

1. NORTH 62 DEGREES 06 MINUTES 21 SECONDS WEST, 36.10 FEET ALONG THE PROPOSED LOT LINE BETWEEN LOTS
9.05 AND 9.06 BLOCK 15.03 TO A POINT IN THE EXISTING SOUTHEASTERLY
LINE OF A 30 FOOT RIGHT OF WAY
OF THE TOWNSHIP OF SOUTH BRUNSWICK; THENCE

2. NORTH 32 DEGREES 15 MINUTES 41 SECONDS EAST, 1373.90 FEET ALONG A PORTION OF THE AFORESAID
EXISTING SOUTHEASTERLY LINE OF A 30 FOOT RIGHT OF WAY OF THE TOWNSHIP OF SOUTH BRUNSWICK, TO A
POINT TN THE SOUTHWESTERLY RIGHT OF WAY LINE OF JAMESBURG ROAD
(A/K/A/ DOCKS CORNER ROAD) SAID POINT BEING DISTANT 33 FEET AS MEASURED AT RIGHT ANGLES FROM
THE CENTERLINE THEREOF; THENCE

3. SOUTH 50 DEGREES 43 MINUTES 29 SECONDS EAST, 36.27 FEET ALONG SAID SOUTHWESTERLY RIGHT OF WAY
LINE OF JAMESBURG ROAD (A/K/A DOCKS CORNER ROAD) TO A POINT IN SAME; THENCE

4. SOUTH 32 DEGREES 15 MINUTES 41 SECONDS WEST, 1366.72 FEET ALONG THE
PROPOSEDSOUTHEASTERLY LINE OF A 36 FOOT WIDE EASEMENT TO THE POINT AND PLACE OF BEGINNING.

BEING ALSO KNOWN AS (REPORTED FOR INFORMATIONAL PURPOSES ONLY) :

LOT 9.061, BLOCK 15.03, ON THE OFFICIAL TAX MAP OF THE TOWNSHIP OF SOUTH BRUNSWICK, COUNTY OF
MIDDLESEX, STATE OF NEW JERSEY.

B-2

 

EXHIBIT C

RULES AND REGULATIONS

     1. The water and wash closets and other plumbing fixtures shall not be used for any purposes
other than those for which they were constructed, and no sweepings, rubbish, rags or other
substances shall be thrown therein. All damages resulting from any misuse of the fixtures by Tenant
shall be borne by Tenant to the extent that Tenant or Tenant’s agents, servants, employees,
contractors, visitors, or licensees shall have caused the same.

     2. No animal or bird of any kind shall be brought into or kept in or about the Demised
Premises, the Building or the Property.

     3. Except as otherwise permitted under the Lease, neither Tenant nor any of Tenant’s agents,
servants, employees, contractors, visitors or licensees shall at any time bring or keep upon the
Demised Premises or in the Building or the Property any flammable, combustible or explosive fluid,
chemical or substance.

     4. If the Demised Premises is or becomes infested with vermin as a result of the use or any
misuse or neglect of the Demised Premises by Tenant, its agents, servants, employees, contractors,
visitors, or licensees, Tenant shall forthwith at Tenant’s expense cause the same to be
exterminated from time to time to the satisfaction of Landlord and shall employ such licensed
exterminators as shall be reasonably approved in writing in advance by Landlord.

     5. Tenant, Tenant’s agents, servants, employees, licensees or visitors shall not park any
vehicles in any driveways, service entrances, or areas posted “No Parking.”

     6. Landlord reserves the right to make such other and further reasonable rules and regulations
as in Landlord’s reasonable judgment may from time to time be needful for the safety, care and
cleanliness of the Demised Premises or the Building, or the Property, and for the preservation of
good order therein, and any such other or further rules and regulations shall be binding upon
Tenant with the same force and effect as if they had been inserted
herein at the time of the
execution hereof.

C-1

 

EXHIBIT D

WORK LETTER

1. Work. Improvements to the Demised Premises (the “Work”) shall be performed, at Tenant’s
option (which Tenant shall elect upon the completion of the bidding process), either by Landlord,
or by Tenant. If Landlord is to provide the Work (“Landlord’s Work”), Paragraph 2 of this Exhibit D
shall apply. If Tenant is to perform the Work (“Tenant’s Work”), Landlord shall deliver the Demised
Premises in “AS-IS” condition but broom clean and Paragraph 3 of this Exhibit B shall apply.
Notwithstanding the foregoing, Landlord shall confirm or cause as of the Commencement Date, all
existing major Building systems, including, but not limited to, electrical, mechanical, plumbing
and HVAC to be in good working order. Prior to commencing any of the Work, Landlord shall submit to
Tenant a written estimate of the cost of the Work, based upon the low bid from mutually approved
plans and specifications of competitive bids (consisting of bids from four contractors, two of whom
selected by the Landlord and two of whom selected by the Tenant), (an “Estimate”). The amount, if
any, by which the Estimate exceeds the Maximum TI Allowance is referred to as the “Excess Cost.”
The entire amount of the Excess Cost is the sole responsibility of Tenant.

2. If Tenant Elects for Landlord to Perform the Work. Landlord shall promptly commence and
diligently pursue to completion the construction of the work requested by Tenant in accordance with
this Exhibit D (“Landlord’s Work”). The cost of Landlord’s Work shall be paid by Landlord
through the application of the Maximum TI Allowance as described below. As further provided herein,
Tenant shall be responsible for the incremental cost of Landlord’s Work in excess of the Maximum TI
Allowance (defined below). The certificate of Landlord’s architect that the work to be done by
Landlord pursuant to this Exhibit D has been substantially completed shall be adequate
evidence that the Demised Premises have been completed in accordance with the requirements of the
Lease. Landlord shall respond promptly to any requests by Tenant for review and implementation of
Landlord’s Work. Landlord agrees to retain contractors, subcontractors and materialmen who are of
good reputation and experienced in and favorably known for the construction of space comparable to
the Demised Premises in the metropolitan area where the Building is located and that are properly
licensed for the work they are to perform. Upon issuance of permits, Landlord shall commence the
Work and shall diligently prosecute the Work to completion. Landlord agrees to cause the Work to be
constructed in a good and workmanlike manner using first-class quality materials, in accordance
with the provisions of the Lease.

     2.1 Cost and Allowance.

          2.1.1 Irrespective of whether Landlord or Tenant is to perform the Work, Landlord will cause
design plans and specifications, the costs of which shall be deducted from the Maximum TI Allowance
as hereinafter defined, to be promptly prepared for Tenant’s review and approval provided Landlord
has received from Tenant sufficient input as to design criteria. Prior to commencing any of
Landlord’s Work, Landlord shall submit to Tenant for Tenant’s approval a written estimate of the
cost of Landlord’s Work (an “Estimate”). Landlord shall require Tenant to acknowledge its approval
of the plans and the Estimate within five (5) business

D-1

 

days after Landlord’s written request therefor. The amount, if any, by which the Estimate exceeds
the Maximum TI Allowance is referred to as the “Excess Cost.” Landlord shall not be required to
commence its work until such acknowledgment is received.

          2.1.2 As noted above, the entire amount of the Excess Cost is the sole responsibility of
Tenant. The Excess Cost shall be paid to Landlord by Tenant within thirty (30) days after
Landlord’s Work is substantially complete, as additional rent under the Lease.

3. If Tenant Elects for Tenant to Perform the Work.

     3.1 Plans and Specifications and Approvals. Landlord shall provide plans and specifications
in accordance with Section 2.1.1 above. As hereinafter set forth, Tenant shall procure and
deliver to Landlord all licenses, permits and approvals from all governmental authorities as are
necessary to permit the Tenant’s Work to be commenced and continued to completion and the so
constructed Demised Premises to be occupied.

     3.2 Contracts and Contractors for the Work. Tenant shall make all such contracts and
arrangements as shall be necessary or desirable for the construction and installation of the
Work. Tenant agrees to retain contractors, subcontractors and materialmen who are of good
reputation and experienced in and favorably known for the construction of space comparable to the
Premises in the metropolitan area where the Building is located and that are properly licensed
for the work they are to perform. Tenant shall provide Landlord with a list of all contractors,
subcontractors and materialmen to be utilized by or for Tenant with respect to the Work and
provide true, correct and complete copies of all contracts relating to the Work. Such
contractors, subcontractors, materialmen and contracts must be satisfactory to Landlord in
Landlord’s reasonable discretion, and shall not be employed or executed, as the case may be,
without Landlord’s written approval first obtained, which approval shall not be unreasonably
withheld, delayed or conditioned.

     3.4 Construction. Promptly upon Landlord’s approval of the Plans, Tenant shall apply for,
and supply to Landlord upon issuance, a building permit and any other required governmental
permits, licenses or approvals. Upon issuance of such approvals, Tenant shall commence the Work
and shall diligently prosecute the Work to completion. Tenant agrees to cause the Work to be
constructed in a good and workmanlike manner using first-class quality materials, at its sole
cost and expense in accordance with the provisions of the Lease. Any out-of-pocket costs incurred
by Landlord in providing utilities or other services needed for the accomplishment of the Work
shall be reimbursed by Tenant to Landlord. Upon completion of the Work, Tenant shall provide to
Landlord: (i) an architect’s certificate of final completion; (ii) copies of all necessary
governmental permits, including, but not limited to, a certificate of occupancy; (iii) the sworn
statement of the general contractor; (iv) final lien waivers from all contractors, subcontractors
and materialmen; and (v) any other information or documentation reasonably requested by Landlord
to evidence lien-free completion of construction and payment of all of the cost thereof. Landlord
shall have the right to observe the performance of the Work and Tenant shall take all such
actions with respect thereto as Landlord may, in its good faith determination, deem advisable
from time to time to assure that the Work and the manner of performance thereof shall not be
injurious to the engineering and construction of the Building or

D-2

 

the electrical, plumbing, heating, mechanical, ventilating or air-conditioning systems of the
Building and shall be in accordance with the Plans and the provisions of this Lease.

     3.5 Tenant’s Default. If Tenant shall fail to comply with any term or provision of this
Exhibit D, and if any such matter is not remedied or resolved within fifteen (15) days
following written notice to Tenant, then, in addition to any other remedies granted Landlord under
the Lease in the case of default by Tenant and any other remedies available at law or equity,
Landlord may elect, upon notice to Tenant, to:

          3.5.1 require Tenant to discontinue all work hereunder, without any abatement on account of
any delay in connection with any work relating to the Premises; or

          3.5.2 complete the construction of the Work pursuant to the Plans, tendering possession to
Tenant upon substantial completion thereof, and Tenant shall immediately upon demand reimburse
Landlord, as additional rent, for Landlord’s costs of completing the Work; or

          3.5.3 cancel the Lease, effective immediately after Tenant receives notice thereof, without
incurring any liability on account thereof and the term granted under the Lease is expressly
limited accordingly. If Landlord cancels the Lease pursuant to the terms hereof or as a result of
Tenant’s default under the Lease, such cancellation shall not affect Tenant’s liability for any
sums payable under the Lease.

4. Maximum TI Allowance.

     4.1 This Lease and the rental rates provided for herein are premised on a total cost of the
Work not to exceed $1,570,000.00 (the “Maximum TI Allowance”). The “cost of the Work” includes,
without limitation:

          4.1.1 All costs and expenses actually incurred by Landlord or Tenant, as the case may be,
pertaining to the Work, including, but not limited to, costs charged by contractors, subcontractors
and general and other conditions costs and expenses in connection with preparation of the Premises
for occupancy;

          4.1.2 All costs and expenses of preparation of the plans for such construction, and site
inspection and contract administration by Landlord’s consulting architects and/or engineers;

          4.1.3 All costs of permits, licenses and other approvals required for the performance of the
Work; and

          4.1.4 A construction supervision/management fee in the amount payable to Landlord of three
percent (3%) of the total cost of the Work if Landlord performs the Landlord Work or 1% of the
total cost of the Work if Tenant performs the Tenant’s Work.

          In the event the Maximum TI Allowance is not fully utilized for the Work; provided that all of
the Work as the parties hereto have approved has been completed, Tenant may add the difference to
the FF&E Allowance as hereinafter defined.

D-3

 

     4.2 If Tenant performs the Tenant’s Work, Landlord shall pay the Allowance in three (3) draws,
contingent upon the satisfaction of each of the following conditions as of the time of such
disbursement:

          (i) Landlord’s reasonable satisfaction that the Tenant’s Work completed as of the date of such
disbursement has an aggregate value at least equal to the aggregate amount of proceeds then to be
disbursed plus the total amount thereof previously disbursed; and

          (ii) Receipt by Landlord of sworn statements, waivers of lien (if obtainable and contingent
upon payment, if necessary) and waivers of lien with respect to amounts previously advanced by
Landlord if not already provided and other documents and assurances pertaining to the Tenant’s Work
sufficient to protect Landlord against mechanics’ and other liens.

     Notwithstanding the foregoing, Landlord shall be entitled to withhold up to 10% of any draw
request to be disbursed upon completion of the Tenant’s Work as assurance that the Tenant’s Work
will be properly completed. Any final disbursement will also be conditioned upon Tenant’s
satisfaction of its obligations under Section 3.4 above, including, without limitation, final lien
waivers.

     5. FF&E Work and FF&E Allowance. Tenant intends to install certain furniture, fixtures
and equipment (“FF&E”) within the Demised Premises, which FF&E and installation thereof
(collectively “FF&E Work”), including, without limitation, plans, specifications and location
within the Demised Premises, having first been reviewed and approved by Landlord, which approval
shall not be unreasonably withheld or delayed. Tenant shall be entitled to an allowance (“FF&E
Allowance”) towards the cost of FF&E Work in an amount up to $1,750,000.00 due and payable by
Landlord not later than thirty (30) days after Tenant has satisfied all of the following conditions
for each requested payment, which requests for payment shall not be submitted more often than three
(3) times: Tenant shall provide to Landlord as they relate to the requested payment for FF&E Work
performed (i) copies of all paid invoices; (ii) copies of all necessary governmental permits,
including, but not limited to, a certificate of occupancy, if required; (iii) lien waivers (if
obtainable and contingent upon payment, if necessary, and waivers of lien with respect to amounts
previously advanced by Landlord if not already provided) from all contractors, subcontractors and
materialmen; (v) Landlord’s reasonable satisfaction that the FF&E Work completed as of the date of
such disbursement has an aggregate value at least equal to the aggregate amount of proceeds then to
be disbursed; and (vi) any other information or documentation reasonably requested by Landlord to
evidence lien-free completion of construction and payment of all of the cost thereof for the FF&E
Work performed. Tenant must comply with all of the terms and conditions of Section 8.2
(Alterations) of the Lease in connection with the FF&E Work. LANDLORD SHALL HAVE NO
OBLIGATION TO DISBURSE ANY PORTION OF SAID ALLOWANCE, AND TENANT WAIVES ANY RIGHT TO RECEIPT OF
SUCH PORTION, TO THE EXTENT THAT THE CONDITIONS PRECEDENT TO DISBURSEMENT OF SUCH PORTION AS SET
FORTH ABOVE ARE NOT SATISFIED ON OR BEFORE DECEMBER 31, 2010 FOR THE FIRST ONE MILLION DOLLARS OF
THE FF&E

D-4

 

ALLOWANCE AND FOR THE BALANCE OF THE FF&E ALLOWANCE BY JUNE 30, 2011.

     In the event Tenant has submitted application and plans to the appropriate governmental
authorities for all necessary permits for the FF&E Work and after sixty (60) days from such
submittal, the necessary permits have not been granted to Tenant due to a condition of the Building
or Property that existed as of the date of this Lease, Tenant shall notify Landlord at such time of
its inability to obtain such permits due to such condition and Landlord shall have up to sixty (60)
days (“60-Day Period”) thereafter to remedy such condition and, if Landlord fails to so remedy such
condition unless delayed as a result of Tenant-caused delay or force majeure, Tenant shall have the
right to terminate this Lease effective upon giving written notice to Landlord within five (5)
business days from the cessation of the 60-Day Period or extension thereof for any Tenant-caused
delay or force majeure delay.

6. Miscellaneous.

     1. Except as set forth in this Exhibit D, Landlord has no other agreement with Tenant
and has no obligation to do any work with respect to the Demised Premises. Any other work in the
Demised Premises which may be permitted by Landlord pursuant to the terms and conditions of the
Lease shall be done at Tenant’s sole cost and expense and in accordance with the terms and
provisions of the Lease.

     2. All rights and remedies of Landlord herein created or otherwise existing at law or equity
are cumulative, and the exercise of one or more such rights or remedies shall not be deemed to
exclude or waive the right to the exercise of any other rights or remedies. All such rights and
remedies may be exercised and enforced concurrently and whenever and as often as deemed desirable.

     3. In the event Landlord fails to pay Tenant any allowance, or portion thereof, that may be
due pursuant to Sections 4 and 5 above, unless there is good-faith dispute as to the disbursement
of such allowance or portion thereof, upon written notice from Tenant to Landlord, Tenant may
offset the good-faith undisputed, unpaid allowance or portion thereof, plus interest at the Default
Rate from the date due, against not more than 50% of the Monthly Fixed Rent as it becomes due.

D-5

 

EXHIBIT
E

EXISTING ROOF WARRANTY

	red shield warranty firestone

E-1

 

BUILDING ENVELOPE CARE AND MAINTENANCE GUIDE

(For Red Shield Warranted Roofing Systems)

Congratulations on your purchase of a Firestone
Roofing System. Your roof is a valuable asset that
should be properly maintained. All roofs and roofing systems require periodic inspection and
maintenance to perform as designed and to keep your
Limited Warranty in full force and effect.

	1.	 	The roof should be inspected at least twice yearly and after any severe storms. A record of
all inspection and maintenance activities should be maintained, including a listing of the
date and time of each activity as well as the identification of the parties performing the
activity.
	 
	2.	 	Proper maintenance and good roofing practice require that ponded water (defined as water
standing on the roof forty-eight hours after it stops raining) not be allowed on the roof.
Roofs should have slope to drain, and all drain areas must remain clean. Bag and remove all
debris from the roof since such debris can be quickly swept into drains by rain. This will
allow for proper water run-off and avoid overloading the roof.
	 
	3.	 	The Firestone Roofing System should not be exposed to acids, solvents, greases, oil, fats,
chemicals and the like. If the Firestone Roofing System is in contact with any such materials,
these contaminants should be removed immediately and any damaged areas should be Inspected by
a Firestone Licensed Applicator and repaired if necessary.
	 
	4.	 	The Firestone Roofing System is designed to be a waterproofing membrane and not a traffic
surface. Roof traffic other than periodic traffic to maintain rooftop equipment and conduct
periodic inspections should be prohibited. In any areas where periodic roof traffic may be
required to service rooftop equipment or to facilitate inspection of the roof, protective
walkways should be Installed by a Firestone Licensed Applicator as needed to protect the roof
surface from damage.
	 
	5.	 	Some Firestone roofing membranes require maintenance of the surface of the membrane:

	 	a.	 	Smooth-surfaced Firestone APP membranes should be coated with an approved liquid
coating, such as Firestone Aluminum Roof Coating or Firestone AcryllTop applied in
accordance with Firestone specifications, in order to maximize the service life of the
membrane. If this coating is not applied as part of the initial roofing installation, It
should be applied within the first five years after the roof is Installed to help protect
the membrane from surface crazing and cracking. In addition, this coating should be
maintained as needed to re-coat any areas that have blistered, peeled or worn through.
	 
	 	b.	 	Granule-surfaced Firestone APP and SBS membranes do not normally require surface
maintenance other than periodic Inspection for contaminants, cuts or punctures. If areas of
granular loss are discovered during Inspection, these areas should be coated with Firestone
AcryllTop or other Firestone-approved coating applied in accordance
with Firestone specifications.
	 
	 	c.	 	Gravel-surfaced Firestone BUR membranes do not normally require surface
maintenance other than periodic Inspection for contaminants or damage. If areas of gravel
loss are discovered during inspection, gravel must be reinstalled into hot asphalt to
protect the surface of the membrane. Coatings on smooth surface BUR membranes must be
maintained as needed to re-coat any areas that have blistered, peeled or worn through.
	 
	 	d.	 	Firestone EPDM and JPO roofing membranes do not normally require surface
maintenance other than periodic Inspection for contaminants, cuts or punctures.
Occasionally, approved liquid roof coatings, such as Firestone AcryllTop, are applied to the
surface of EPDM membranes in order to provide a lighter surface color. Such coatings do not
need to be maintained to assure the performance of the underlying EPDM roof membrane, but
some maintenance and re-coating may be necessary in order to maintain a uniform surface
appearance.
	 
	 	e.	 	Firestone Una-Clad metal roofing panels and trim do not normally require surface
maintenance other than periodic inspection for contaminants or damage. In addition, periodic
cleaning of the surface may be required to remove dirt and maintain the aesthetic appearance
of the coated metal. Simple washing with plain water using hoses or pressure spray equipment
is usually adequate. If cleaning with agents other than water is contemplated, several
precautions should be observed: (1) do not use wire brushes, abrasives, or similar cleaning
tools which will mechanically abrade the coating surface, and (2) cleaning agents should be
tested in an Inconspicuous area before use on a large scale.

	6.	 	All metal work, Including counter-flashings, drains, skylights, equipment curbs and supports,
and other Firestone brand rooftop accessories must be properly maintained at all times.
Particular attention should be paid to sealants at joints in metal work and flashings. If
cracking or shrinkage is observed, the joint sealant should be removed and replaced with new
sealant.
	 
	7.	 	Any alterations to the roof, Including but not limited to roof curbs, pipe penetrations,
roof-mounted accessories, and tie-Ins to building additions must be performed by a licensed Firestone Licensed Applicator and
reported to Firestone. Additional Information and reporting forms for roof alterations are available at
www.firestonebpco.com.
	 
	9.	 	Should you experience a leak:

(a) Check for the obvious: dogged roof drains, loose counterflashings, broken skylights, open
grills or vents, broken water pipes.

(b) Note conditions resulting in leakage. Heavy or light rain, wind direction, temperature and
time of day that the leak occurs are all-Important dues to tracing
roof leaks. Note whether the
leak stops shortly after each rain or continues to drip until the roof is dry. If you are
prepared with the facts, the diagnosis and repair of the leak can proceed more rapidly.

(c) Contact Firestone Warranty Claims at 1-800-830-5612 as soon as possible...but please don’t
call until you are reasonably sure that the Firestone Roofing System is the cause of the leak.

Firestone feels that the preceding requirements will assist you, the building owner, in maintaining
a watertight roof for many years. Your roof is an investment, and maintenance is essential to
maximize your return on this important Investment.

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NOW THAT YOU HAVE

A NEW FIRESTONE

ROOFING SYSTEM...

Congratulations
on your purchase of a Firestone Roofing System! Your new roof is a valuable asset
and as such should be properly maintained. All components of the building envelope require periodic
maintenance to perform as designed, “Building Envelope Care And Maintenance Guide” printed on the
back of your Firestone Limited Warranty contains a number of
important items to assist you in
maintaining a watertight building for many years. These maintenance guidelines recommend that the
building envelope be inspected at least twice yearly. Although-this inspection can be performed by
any qualified person selected by you, Firestone recommends that at least one inspection every year
be conducted by the Firestone Licensed Applicator who installed your roof.

Whenever
an inspection of the roof is performed. Firestone recommends that the following items be
included:

1. ROOF CONDITIONS REQUIRING PERIODIC INSPECTION:

Periodic inspection of the following items is very important to assure that the Firestone Roofing
System has not been exposed to conditions not covered by Firestone’s Limited Warranty:

	 	a.	 	Roof Traffic & Walkways: The Firestone Roofing System is designed to be a
waterproofing component—not a traffic bearing component of the building envelope. As
stated in Firestone’s System Design Instructions for all Firestone Roofing Systems,
“Walkways help protect the membrane from damage due to necessary roof-top service
traffic.” Please note that walkways should be maintained at all roof access points,
around all mechanical equipment which requires maintenance and at all areas where roof
traffic more frequent than once a month is anticipated. If, because of traffic
requirements, walkways need to be installed on your roof, contact your Firestone Licensed
Applicator before proceeding.
	 
	 	b.	 	Discharges: All components of the Firestone roof system must be protected from
discharges, such as petroleum products, greases, oils and fats, acids and the like, if
the building will have any such discharges, please contact Firestone for suggested
methods of protection. If, because of the presence of chemical discharges, protection
measures are recommended, contact your Firestone Licensed Applicator before proceeding.

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	 	c.	 	Ponding Water: Proper maintenance and good roofing practice suggests that ponded water
(defined as standing water on the roof forty-eight (48) hours after it stops raining)
should not be allowed on the roof. Roofs should have slope to drain and all drain areas
should remain clean. If ponded water areas are observed on the roof that cannot be
corrected by periodic cleaning of drain areas, contact your Firestone Licensed Applicator
for suggestions.
	 
	 	d.	 	Storms: The building envelope should be inspected after any severe storm,
especially after any storm that involves high sustained winds, heavy wind gusts or
tornado-like-conditions. All roof surfaces should be inspected for damage caused by
wind-blown debris. The roof also should be inspected after any hail or ice storm which
could have damaged the roofing system. If storm-related damage to the roof system is
observed, contact your Firestone Licensed Applicator before proceeding.
	 
	 	e.	 	Moisture Infiltration: It is very important to inspect the roofing system for
moisture infiltration from sources excluded by Firestone’s Limited Warranty. These
sources can include but are not limited to:

	 	1.	 	Latent moisture in a pre-existing roofing system or roof insulation
remaining beneath the Firestone Roofing System.
	 
	 	2.	 	Moisture infiltration in or through building walls, copings, mortar
joints and roof-top equipment.
	 
	 	3.	 	Condensation of water vapor within the roofing system due to temperature
and humidity differentials.

Because inspection for moisture infiltration requires professional roofing experience, Firestone
recommends that this inspection be performed by a Firestone Licensed Applicator at least once a
year.

2 NON-FIRESTONE MATERIALS:

In some instances, non-Firestone supplied materials, are used in conjunction with Firestone Roofing
Systems. These materials may include, but are not limited to the following items:

	 	a.	 	Locally-fabricated sheet metal flashings.
	 
	 	b.	 	Non-Firestone sealants at roof terminations.
	 
	 	c.	 	Non-Firestone roof insulations.
	 
	 	d.	 	Non-Firestone insulation fastening devices, including but not limited to roofing
screws, insulation plates, construction adhesives and roofing asphalt.
	 
	 	e.	 	Preservative-treated wood nailers and blocking.
	 
	 	f.	 	Roof drains and drain inserts.
	 
	 	g.	 	Pre-fabricated roof curbs.
	 
	 	h.	 	Concrete walkway or ballast pavers.
	 
	 	i.	 	Stone ballast
	 
	 	j.	 	Non-Firestone roof coatings.

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Because such items are not warranted by. Firestone, it is important to establish an ongoing
inspection and maintenance program to assure that the performance of non-Firestone materials does
not adversely affect the weathertight integrity of the Firestone roofing system. Sheet metal items
should be checked for weathertightness and re-anchored/recaulked as needed. Nailers and blocking
should be checked for soundness, and replaced or re-secured if necessary. Roof drains and drain
inserts should be cleared of any debris. Sealants should be inspected for shrinking or cracking
and replaced as required. The integrity of roof insulation and insulation attachments should be
verified. Walkway pavers should be checked for cracking or splitting and replaced if necessary.
Ballast stone should be checked for deterioration/due to freeze/thaw conditions. In addition, all
ballasted roofs should be inspected for localized wind displacement of the ballast, especially
along perimeter roof areas. In the event ballast displacement is observed ballast should be
carefully re-dispersed uniformly and the addition of larger ballast
stones should be considered.

3 FIRESTONE PRODUCTS REQUIRING PERIODIC INSPECTION:

Although Firestone products do not necessarily require periodic maintenance to assure long-term
performance, periodic inspection is very important to assure that these products have not been
exposed to conditions excluded by Firestone’s Limited Warranty:

	 	a.	 	The Firestone Roofing Membrane should be inspected for tears or punctures caused
by wind storms, falling objects, roof traffic and the like, if the Firestone membrane is
supplied with a factory applied coating, such as roofing granules, the coating should be
inspected for any discontinuities caused by abrasion from wind, roof traffic or other
sources. Tears, punctures and abrasions to the membrane must be repaired by a Licensed
Firestone Applicator using Firestone specified repair procedures.
	 
	 	 	 	In addition, the membrane should be inspected for any contamination from discharges, such
as petroleum products, greases, oils and fats, acids and the like. If any such discharges
are observed on the membrane, please contact Firestone for suggested methods of
protection. If, because of the presence of chemical discharges, protection measures are
recommended by Firestone, contact your Firestone Licensed Applicator before proceeding.
	 
	 	b.	 	Firestone Wall Flashings also should be inspected for tears, punctures, abrasion
and contamination from discharges, following the same procedures as for the Firestone
Roof Membrane.

4 INSPECTIONS AND SAFETY:

Inspection of any building envelope should be undertaken only by qualified persons who are
familiar with safe practices, including all applicable occupational health and safety regulations
relating to roofing and construction. Firestone recommends that all roof inspections be performed
by a Firestone Licensed Applicator or a similar roofing professional.

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5 ARRANGING FOR PERIODIC INSPECTIONS:

Please note that the cost of periodic inspections, either by your Firestone Licensed Applicator or
by any other roofing professional, are not included in the cost of your Limited Warranty. Firestone
recommends that you contact your Firestone Licensed Applicator to obtain a proposal for inspection
and maintenance services.

Firestone feels that the preceding recommendations will help you maintain a watertight building for
many years. To maximize your return on your building investment, appropriate care is essential.
Whenever you have questions concerning your roofing system, do not hesitate to contact your
Firestone Licensed Applicator or your local Firestone Sales Representative.

E-6

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