Document:

exv10w11

Exhibit 10.11

EXHIBIT N

INDUSTRIAL REAL PROPERTY LEASE

	 	 	 

	Landlord:

	 	National Warehouse Investment Company
	 
	 	 
	Tenant:

	 	Victor Equipment Company, a Delaware corporation

Dated as of June 6, 1988

Property located at

Airport Drive

Denton, Texas

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	Parties
	 	 	1	 
	 
	 	 	 	 
	ARTICLE I

	DEFINITIONS

	 
	 	 	 	 
	Paragraph 1.1 Defined Terms
	 	 	1	 
	Paragraph 1.2 Additional Definitions
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II

	DEMISE AND ACCEPTANCE

	 
	 	 	 	 
	Paragraph 2.1 Demise of Premises
	 	 	3	 
	Paragraph 2.2 Term
	 	 	3	 
	Paragraph 2.3 Acceptance of Premises
	 	 	4	 
	 
	 	 	 	 
	ARTICLE III 

	RENT

	 
	 	 	 	 
	Paragraph 3.1 Base Monthly Rent
	 	 	4	 
	Paragraph 3.2 Additional Rent
	 	 	4	 
	Paragraph 3.3 Payment of Rent
	 	 	4	 
	Paragraph 3.4 Triple Net Lease
	 	 	4	 
	 
	 	 	 	 
	ARTICLE IV

	USE OF LEASED PREMISES

	 
	 	 	 	 
	Paragraph 4.1 Limitation on Type
	 	 	5	 
	Paragraph 4.2 Compliance With Laws and Private Restrictions
	 	 	5	 
	Paragraph 4.3 Insurance Requirements
	 	 	6	 
	 
	 	 	 	 
	ARTICLE V

	TRADE FIXTURES AND LEASEHOLD IMPROVEMENTS

	 
	 	 	 	 
	Paragraph 5.1 Leasehold Improvements
	 	 	6	 
	Paragraph 5.2 Alterations Required by Law
	 	 	7	 
	Paragraph 5.3 Landlord’s Improvements
	 	 	8	 
	Paragraph 5.4 Liens
	 	 	8	 
	 
	 	 	 	 
	ARTICLE VI

	REPAIR, MAINTENANCE AND SECURITY

	 
	 	 	 	 
	Paragraph 6.1 Tenant’s Obligation To Maintain
	 	 	8	 
	Paragraph 6.2 Environmental Condition
	 	 	9	 
	Paragraph 6.3 Security
	 	 	10	 

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	 	 	Page
	ARTICLE VII 

	WASTE DISPOSAL AND UTILITIES

	 
	 	 	 	 
	Paragraph 7.1 Waste Disposal
	 	 	10	 
	Paragraph 7.2 Utilities
	 	 	10	 
	 
	 	 	 	 
	ARTICLE VIII

	REAL PROPERTY TAXES

	 
	 	 	 	 
	Paragraph 8.1 Real Property Taxes Defined
	 	 	11	 
	Paragraph 8.2 Tenant’s Obligation To Pay
	 	 	12	 
	Paragraph 8.3 Taxes on Tenant’s Property
	 	 	12	 
	Paragraph 8.4 Tax Segregation
	 	 	12	 
	Paragraph 8.5 Tax Contest
	 	 	12	 
	 
	 	 	 	 
	ARTICLE IX

	INSURANCE

	 
	 	 	 	 
	Paragraph 9.1 Tenant’s Insurance
	 	 	13	 
	Paragraph 9.2 Landlord’s Insurance
	 	 	14	 
	Paragraph 9.3 Policies
	 	 	14	 
	Paragraph 9.4 Release and Waiver of Subrogation
	 	 	15	 
	 
	 	 	 	 
	ARTICLE X

	LIMITATION ON LANDLORD’S LIABILITY 

	AND INDEMNITY

	 
	 	 	 	 
	Paragraph 10.1 Limitation on Landlord’s Liability
	 	 	15	 
	Paragraph 10.2 Indemnification of Landlord
	 	 	16	 
	 
	 	 	 	 
	ARTICLE XI

	DAMAGE TO LEASED PREMISES

	 
	 	 	 	 
	Paragraph 11.1 Duty To Restore
	 	 	16	 
	Paragraph 11.2 Tenant’s Right To Terminate
	 	 	17	 
	Paragraph 11.3 No Abatement of Rent
	 	 	17	 
	 
	 	 	 	 
	ARTICLE XII

	CONDEMNATION

	 
	 	 	 	 
	Paragraph 12.1 Definitions
	 	 	17	 
	Paragraph 12.2 Total Condemnation
	 	 	18	 
	Paragraph 12.3 Partial Condemnation
	 	 	18	 
	Paragraph 12.4 Temporary Taking
	 	 	18	 
	Paragraph 12.5 Division of Condemnation Award
	 	 	18	 
	 
	 	 	 	 
	ARTICLE XIII

	DEFAULT AND REMEDIES

	 
	 	 	 	 
	Paragraph 13.1 Events of Default
	 	 	19	 
	Paragraph 13.2 Landlord’s Remedies
	 	 	20	 

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	 	 	Page
	Paragraph 13.3 Landlord’s Right To Cure
	 	 	23	 
	Paragraph 13.4 Waiver
	 	 	23	 
	Paragraph 13.5 Late Charge
	 	 	24	 
	 
	 	 	 	 
	ARTICLE XIV

	ASSIGNMENT AND SUBLETTING

	 
	 	 	 	 
	Paragraph 14.1 By Tenant
	 	 	24	 
	Paragraph 14.2 By Landlord
	 	 	26	 
	 
	 	 	 	 
	ARTICLE XV

	TERMINATION

	 
	 	 	 	 
	Paragraph 15.1 Surrender of the Leased Premises
	 	 	26	 
	Paragraph 15.2 Holding Over
	 	 	27	 
	 
	 	 	 	 
	ARTICLE XVI 

	GENERAL PROVISIONS

	Paragraph 16.1 Financial Information
	 	 	28	 
	Paragraph 16.2 Landlord’s Right To Enter
	 	 	29	 
	Paragraph 16.3 Subordination
	 	 	29	 
	Paragraph 16.4 Tenant’s Attornment
	 	 	30	 
	Paragraph 16.5 Estoppel Certificates
	 	 	30	 
	Paragraph 16.6 Force Majeure
	 	 	31	 
	Paragraph 16.7 Notices
	 	 	31	 
	Paragraph 16.8 Attorneys’ Fees
	 	 	31	 
	Paragraph 16.9 Corporate Authority
	 	 	31	 
	Paragraph 16.10 Option To Extend
	 	 	32	 
	Paragraph 16.11 CPI Rent Adjustment
	 	 	32	 
	Paragraph 16.12 Brokerage Commissions
	 	 	32	 
	Paragraph 16.13 Termination by Exercise of Option
	 	 	33	 
	Paragraph 16.14 Guaranty
	 	 	33	 
	Paragraph 16.15 Memorandum of Lease
	 	 	33	 
	Paragraph 16.16 Entire Agreement
	 	 	33	 
	Paragraph 16.17 Miscellaneous
	 	 	34	 

EXHIBITS

Exhibit A            Legal Description

Exhibit B            Base Monthly Rent

Exhibit C            Guaranty

Exhibit D            Memorandum of Lease

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INDUSTRIAL REAL PROPERTY LEASE

          THIS LEASE, made as of June 6, 1988 between NATIONAL WAREHOUSE INVESTMENT COMPANY, a
California limited partnership, (“Landlord”), whose address is Four Embarcadero Center, Suite 3150,
San Francisco, California 94111 and VICTOR EQUIPMENT COMPANY, a Delaware corporation
(“Tenant”), whose address is 101 South Hanley, St. Louis, Missouri 63105,

W I T N E S S E T H:

          In consideration of the mutual covenants contained herein, the parties agree as follows:

ARTICLE I

DEFINITIONS

          1.1 Defined Terms. For purposes of this Lease, the following terms shall have the
following meanings.

          (a) Additional Rent. The term “Additional Rent” shall have the meaning set forth in
Paragraph 3.2 hereof.

          (b) Base Monthly Rent. The term “Base Monthly Rent” shall have the meaning set forth
in Paragraph 3.1 hereof.

          (c) CPI Adjustment Date. The term “CPI Adjustment Date” shall mean the first day of
each Extension Period.

          (d) Commencement Date. The term “Commencement Date” shall mean June 6, 1988.

          (e) Consumer Price Index. As used in this Lease, “Consumer Price Index”
shall mean the Consumer Price Index for All Urban Consumers, U.S. City Average, All Items,
1982-1984 equals 100, published by the United States Department of Labor, Bureau of Labor
Statistics. If the federal government revises or ceases to publish the Consumer Price Index,
Landlord and Tenant shall convert to the revised index or adopt the successor index in accordance
with the guidelines therefor issued by the federal government.

          (f) Expiration Date. The term “Expiration Date” shall have the meaning set forth in
Paragraph 2.2 hereof.

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          (g) Extension Period. The term “Extension Period” shall have the meaning set
forth in Paragraph 16.10.

          (h) Guaranty. The term “Guaranty” shall have the meaning set forth in Paragraph
16.14 hereof.

          (i) Landlord’s Improvements. The term “Landlord’s Improvements” shall mean all
improvements Landlord may construct on the Leased Premises at Landlord’s expense at any time.

          (j) Law. The term “Law” shall mean any judicial decision, statute, constitution, ordinance,
resolution, regulation, rule, administrative order or other requirement of any municipal, county,
state, provincial, federal or other government agency or authority having jurisdiction over the
parties to this Lease or the Leased Premises or both, in effect either at the Effective Date of
this Lease or any time during the Lease Term, including, without limitation, any regulation, order
or policy of any quasi-official entity or body (e.g., board of fire examiners, public utilities or
special district).

          (k) Lease Term. The term “Lease Term” shall have the meaning set forth in Paragraph
2.2 hereof.

          (l) Leased Premises. The term “Leased Premises” shall mean the real property
described in Exhibit A attached hereto including all improvements thereon.

          (m) Leasehold Improvements. The term “Leasehold Improvements” shall mean all
improvements, additions, alterations and fixtures installed in the Leased Premises at Tenant’s
expense after the Commencement Date (and not in replacement of similar work existing on the Leased
Premises as of the Commencement Date) at any time which are permanently attached or affixed to the
Leased Premises.

          (n) Lender. The term “Lender” shall mean any beneficiary, mortgagee, secured party,
or other holder of any deed of trust, mortgage charge, or other written security device or
agreement affecting Landlord’s interest in the Leased Premises, and the note or other obligations
secured by it.

          (o) Operating Expenses. The term “Operating Expenses” shall include those expenses
to be borne by Tenant pursuant to Paragraphs 6.1, 6.3, 7.1 and 7.2 hereof.

          (p) Palco. The term “Palco” shall have the meaning set forth in Paragraph
16.14 hereof.

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          (q) Pollution Hazard. The term “Pollution
Hazard” shall have the meaning set forth in Paragraph 6.2(b) hereof.

          (r) Private Restrictions. The term “Private Restrictions” shall mean all recorded
covenants, conditions and restrictions, private agreements, reciprocal easement agreements, and any
other recorded or unrecorded instruments, in effect on the Commencement Date or thereafter entered
into by or consented to by Tenant, affecting the use of the Leased Premises from time to time.

          (s) Real Property Taxes. The term “Real Property Taxes” shall have the meaning set
forth in Paragraph 8.1 hereof.

          (t) Trade Fixtures. The term “Trade Fixtures” shall mean all movable equipment,
furniture, furnishings, and other personal property installed in the Leased Premises by Tenant at
Tenant’s expense (and not in replacement of similar work or materials existing on the Leased
Premises as of the Commencement Date) which are not permanently attached to the Leased Premises;
provided, however, that all of Tenant’s signs and Tenant’s equipment not necessary for the
operation of the Leased Premises without regard to the particular business conducted thereon (i.e.,
systems and facilities integral to the buildings and other improvements) shall be Trade Fixtures
whether or not permanently attached or affixed to the Leased Premises.

          1.2 Additional Definitions. Any term that is given a special meaning by any
provision in this Lease shall have such meaning when used in this Lease or any addendum or
amendment hereto.

ARTICLE II

DEMISE AND ACCEPTANCE

          2.1 Demise of Premises. Landlord hereby demises and leases to Tenant, and Tenant
hereby leases from Landlord, the Leased Premises for the Lease Term upon and subject to the terms
and conditions of this Lease.

          2.2 Term. This Lease shall be for a period of one hundred eighty (180) months (plus
the partial month, if any, immediately following the Commencement Date) (the “Lease Term”)
commencing on the Commencement Date and ending at midnight of the last day of the one hundred
eightieth (180th) full calendar month thereafter (the “Expiration Date”), unless this Lease is
sooner terminated or extended

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according to the terms hereof or by mutual agreement of the parties. If this Lease is so extended,
the term “Lease Term” shall include any Extension Period.

          2.3 Acceptance of Premises. Tenant agrees to accept possession of the Leased Premises
in the condition existing as of the Commencement Date. Landlord makes no warranty, express or
implied, as to the condition of the Leased Premises or the suitability of the Leased Premises for
Tenant’s use or for any other purpose. Tenant acknowledges that it has had possession of the
Leased Premises prior to the date of this Lease and is fully aware of and familiar with the
condition of the Leased Premises.

ARTICLE III

RENT

          3.1 Base Monthly Rent. Commencing on the Commencement Date and continuing
throughout the Lease Term and any Extension Period, Tenant shall pay to Landlord as monthly rent
(the “Base Monthly Rent”) the amounts indicated during the periods indicated in Exhibit B hereto.

          3.2 Additional Rent. Commencing on the Commencement Date and continuing throughout
the Lease Term, Tenant shall pay, as additional rent, Real Property Taxes as required by Paragraph
8.2 hereof, Operating Expenses, and amounts required to be paid by Tenant under Paragraph 9.1 and
Paragraph 13.3 hereof (collectively, the “Additional Rent”).

          3.3 Payment of Rent. All rent required to be paid in monthly installments shall be
paid in advance on the first day of each calendar month during the Lease Term. All rent (including
Base Monthly Rent and Additional Rent) shall be paid in lawful money of the United States, without
any abatement, deduction or offset whatsoever, and without any prior demand therefor, to Landlord
in immediately available funds by wire transfer to Landlord’s account no. 4050-4174 with Citibank,
N.A., New York, New York (A.B.A. No. 021-0000-89) or such other account as Landlord may designate
by written notice from time to time. Tenant’s obligation to pay rent shall be prorated to account
for partial calendar months at the commencement and the expiration or sooner termination of the
Lease Term.

          3.4 Triple Net Lease. This Lease is what is commonly called a “Net, Net, Net Lease,”
it being understood that Landlord shall receive the rent set forth in Paragraph 3.1 hereof free
and clear of any and all other

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impositions, taxes, liens, charges or expenses of any nature whatsoever in connection with the
ownership and operation of the Leased Premises (excluding payments of any mortgage or deed of trust
voluntarily incurred by Landlord).

ARTICLE IV

USE OF LEASED PREMISES

          4.1 Limitation on Type. Tenant may use the Leased Premises for any legal
purpose, provided that Tenant shall not discontinue the use of the Leased Premises for its current
purpose (manufacturing) unless Tenant shall have first given Landlord prior written notice thereof.
Tenant shall not do or permit anything to be done in or on the Leased Premises which might cause
structural injury to the Leased Premises or might place any loads upon any floor, wall or ceiling
which might damage or endanger any portion of the Leased Premises. Tenant shall not operate any
equipment in or on the Leased Premises which will injure the Leased Premises, which will overload
existing electrical systems or mechanical equipment servicing the Leased Premises, or which will
impair the efficient operation of the sprinkler system (if any) within the Leased Premises. Tenant
shall not commit nor permit to be committed any waste upon the Leased Premises, and Tenant shall
keep the Leased Premises in a condition free of any nuisances.

          4.2 Compliance With Laws and Private Restrictions.

          (a) Tenant shall not use or permit any person to use the Leased Premises for any use or
purpose in violation of any Laws or Private Restrictions. Tenant shall, at its own cost and
expense, abide by and promptly observe and comply with all Laws and Private Restrictions applicable
to the use or occupancy of the Leased Premises.

          (b) Tenant shall not use or permit any person to use the Leased Premises for any purpose or in
any manner other than in full compliance with all applicable Laws, including without limitation
all zoning, land-use, anti-pollution, environmental, health and safety Laws.

          (c) Notwithstanding subparagraphs (a) and (b) of this Paragraph 4.2, in the event that Tenant
shall desire in good faith to contest or otherwise review by appropriate legal or administrative
proceeding any Law or Private Restriction, Tenant shall, at least fifteen (15) days prior to
commencing such proceeding, give Landlord written notice of its intention to do so. Tenant may
forego compliance

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with such Law or Private Restriction being contested if, but only if, both (i) such
noncompliance is permitted during the pendency of such proceedings without the foreclosure of any
lien or the imposition of any fine or penalty or judgment for damages, and (ii) Tenant shall obtain
and furnish Landlord with a bond or other security device sufficient to protect Landlord’s interest
in the Leased Premises and to reimburse Landlord for any liability which might be incurred if such
proceedings are determined adversely to Tenant. Any such contest shall be prosecuted to completion
(whether or not this Lease shall have expired or terminated in the interim) and shall be conducted
without delay and solely at Tenant’s expense. Tenant shall indemnify and defend Landlord against
any and all expense (including attorneys’ fees), liability or damage resulting from such contest or
other proceeding. At the request of Tenant, Landlord shall join in any contest or other proceeding
which Tenant may desire to bring pursuant to this paragraph. Tenant shall pay all of Landlord’s
reasonable expenses (including attorneys’ fees) arising out of such joinder. Within ten (10) days
after the final determination of such contest or other proceeding, Tenant shall pay any amount and
perform any obligation determined to be due, together with any costs, expenses and interest,
whether or not this Lease shall have then expired or terminated.

          4.3 Insurance Requirements. Tenant shall not use the Leased Premises in any manner
or for any purpose (other than the manner in which and the purpose for which the Leased Premises
are used on the Commencement Date), or permit any use of the Leased Premises or any act to be
committed on the Leased Premises, if any such use or act will increase the existing rate of
insurance upon the Leased Premises or cause a cancellation of any insurance policy covering the
Leased Premises. Tenant shall not sell, keep or use, or permit to be kept, used, or sold, in or
about the Leased Premises any article which may be prohibited by the standard form of fire
insurance policy. Tenant shall, at its sole cost and expense, comply with all requirements of any
insurance company, insurance underwriter, or Board of Fire Underwriters which are necessary to
maintain, at standard rates, the insurance coverage required under this Lease.

ARTICLE V

TRADE FIXTURES AND LEASEHOLD IMPROVEMENTS

          5.1
Leasehold Improvements. Except for Minor Work (as hereinafter defined),
Tenant shall not construct

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any Leasehold Improvements or otherwise alter the Leased Premises without Landlord’s prior
approval, and not until Landlord shall have first approved the plans and specifications therefor,
which approvals shall not be unreasonably withheld. All such Leasehold Improvements and
alterations (including Minor Work) shall be constructed and installed by Tenant at Tenant’s
expense, using a licensed contractor first approved by Landlord (except such approval shall not be
required for Minor Work), in substantial compliance with the approved plans and specifications
therefor (if such plans and specifications are required hereunder) and in strict accordance with
all Laws and Private Restrictions. All such construction and installation shall be done in a good
and workmanlike manner using new materials (or such other materials as Landlord shall expressly
permit in writing) of good quality. Tenant shall not commence construction of any Leasehold
Improvements or alterations until (i) all required governmental approvals and permits shall have
been obtained, (ii) all requirements regarding insurance imposed by this Lease shall have been
satisfied, and (iii) Tenant shall have given Landlord at least five (5) days’ prior written notice
of its intention to commence such construction. The term “Minor Work,” as used herein, shall mean
any construction or Leasehold Improvements or alteration of the Leased Premises not involving any
structural change or change in the character of the improvements, and involving a cost of less than
one hundred thousand dollars ($100,000), provided that, for purposes of determining such cost,
multiple construction or alteration projects shall be aggregated to the extent they are related to
each other, whether undertaken simultaneously or sequentially. Landlord shall respond to Tenant’s
requests for approval under this Paragraph 5.1 promptly (and immediately in the event of emergency)
and in any event within fifteen (15) business days after receipt of such request. All Leasehold
Improvements shall remain the property of Tenant during the Lease Term but shall not be damaged,
altered or removed from the Leased Premises. At the expiration or sooner termination of the Lease
Term, all Leasehold Improvements shall be surrendered to Landlord as a part of the realty and shall
then become Landlord’s property, and Landlord shall have no obligation to reimburse Tenant for all
or any portion of the value or cost thereof; provided, however, that if Landlord shall require
Tenant to remove any Leasehold Improvements in accordance with the provisions of Paragraph 15.1,
then Tenant shall so remove such Leasehold Improvements prior to the expiration or sooner
termination of the Lease Term.

          5.2 Alterations Required by Law. Tenant shall, at its sole cost, make any
alteration, addition or change of any sort, whether structural or otherwise, to the Leased Premises
that is required by any Law.

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          5.3 Landlord’s Improvements. All fixtures, improvements or equipment which now
comprise the Leased Premises, or which are installed, constructed on or attached to the Leased
Premises at Landlord’s expense shall become a part of the realty and belong to Landlord.

          5.4 Liens. Tenant shall keep the Leased Premises free from any liens arising out of
any work performed, materials furnished, or obligations incurred by Tenant, its agents, employees
or contractors relating to the Leased Premises. If any claim of lien is recorded, Tenant shall
bond against or discharge the same or provide other security reasonably satisfactory to Landlord
prior to the time such lien may be foreclosed and in any event within ten (10) business days after
the same has been recorded against the Leased Premises.

ARTICLE VI

REPAIR, MAINTENANCE AND SECURITY

          6.1
Tenant’s Obligation To Maintain.

          (a) Tenant shall, at all times and at Tenant’s sole cost and expense, clean, keep, and
maintain in good order, condition, and repair the Leased Premises and every part thereof and all
fixtures and improvements therein and thereon, through regular inspections and servicing (and
replacement where appropriate), including without limitation (i) all plumbing and sewage facilities
(including all sinks, toilets, faucets and drains), including repair of leaks around ducts, pipes,
vents, or other parts of the heating, ventilation and air conditioning systems (“HVAC”) or plumbing
system, (ii) all fixtures, interior walls, floors, ceilings, windows, doors, entrances, plate
glass, showcases, and skylights, (iii) all electrical facilities and all equipment including all
lighting fixtures, lamps, bulbs and tubes, fans, vents, exhaust equipment and systems, (iv) all
fire extinguisher equipment, (v) any landscaping (including any necessary replanting) and
irrigation systems, (vi) all parking areas (including any necessary painting, striping, patching or
resurfacing), (vii) the exterior, floors and roof of all buildings contained within the Leased
Premises (including any necessary painting or resurfacing of walls and any patching, resurfacing or
replacement of roofs to preserve the same or to repair leaks) and (viii) all structural parts of
the improvements. All glass, both interior and exterior, is the sole responsibility of Tenant, and
any broken glass shall promptly be replaced by Tenant at Tenant’s expense with glass of the same
kind (to the extent permitted by applicable building codes), size and quality.

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Tenant shall be responsible for the maintenance, repair and replacement when necessary of all
HVAC equipment which serves the Leased Premises and shall keep the same in good condition through
regular inspection and servicing  at least once every three (3) months.

          (b) All repairs and replacements required of Tenant hereunder shall be promptly made with new
materials (or, with Landlord’s consent, other materials) of like kind and quality. If the work
results in a change in the character of the improvements on the Leased Premises or affects the
structural parts of the Leased Premises or if the estimated cost of any item of repair or
replacement is in excess of one hundred thousand dollars ($100,000), then Tenant shall first obtain
Landlord’s written approval as to the scope of work, materials to be used, and the contractor.
Landlord shall respond to Tenant’s request for approval promptly (and immediately in the event of
emergency) and in any event within fifteen (15) business days after receipt of such request.

          6.2 Environmental Condition.

          (a) Tenant shall not, or permit any other person to, store, discharge, dispose of, dump,
disperse, release, treat or generate pollutants, contaminants or hazardous or toxic substances,
wastes or materials (as determined under applicable Law) in, on, about, under or from the Leased
Premises unless such storage, discharge, disposal, dumping, dispersion, release, treatment or
generation is carried out in full compliance with all applicable Laws.

          (b) Following any discharge, disposal, dumping, dispersion or release of pollutants,
contaminants or hazardous or toxic substances, wastes or materials prohibited by Paragraph 6.2(a)
hereof (“Pollution Hazard”), Tenant shall immediately upon discovery thereof (i) notify Landlord of
such Pollution Hazard, (ii) obtain from reputable environmental consultants, and deliver to
Landlord, three (3) detailed estimates of the cost of remedying such Pollution Hazard, and (iii)
begin appropriate remedial action and diligently pursue such remedial action to completion, all at
Tenant’s sole cost and expense.

          (c) In the event of a Pollution Hazard remediation of which is likely, in Landlord’s
reasonable estimation, to cost more than twenty-five thousand dollars ($25,000), Tenant shall
provide Landlord, immediately upon Landlord’s request, with adequate financial assurances that
Tenant will meet its obligations under Paragraph 6.2(b) above. The financial assurances required
under this Paragraph 6.2(c) shall take the form of a bond or letter of

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credit in form and substance satisfactory to Landlord in an amount equal to Landlord’s
reasonable estimate of the anticipated cost of the remedial action required under Paragraph 6.2(b)
hereof and shall be provided within ten (10) days of Landlord’s written request.

          (d) Upon Landlord’s request, from time to time (but not more frequently than four (4) times
in any twelve (12) month period), Tenant shall provide Landlord with a written list of all toxic
and hazardous substances, materials or wastes stored, discharged, disposed of, released, treated or
used by Tenant in, on or about the Leased Premises.

          6.3 Security. Tenant shall employ and coordinate the services of reasonably skilled
and responsible persons as security guards, janitors and maintenance workers, and such additional
staff, all as may be necessary and appropriate for the security, protection and maintenance of the
Leased Premises. Such individuals shall be under the supervision, direction and control of Tenant
who shall fix their compensation and have the exclusive right to employ and terminate employment of
any and all such individuals or such individuals’ employer; such individuals shall not be or be
deemed to be the employees of Landlord for any purpose whatsoever.

ARTICLE VII

WASTE DISPOSAL AND UTILITIES

          7.1 Waste Disposal. Tenant shall store its waste in accordance with all
applicable Laws either inside the building(s) contained within the Leased Premises or within
outside trash enclosures which are designed for such purpose. All entrances to such outside trash
enclosures shall be kept closed, and waste shall be stored in such manner as not to be visible from
the exterior of such outside enclosures. Tenant shall cause all of its waste to be regularly
removed from the Leased Premises at Tenant’s sole cost. Tenant shall keep all fire corridors and
mechanical equipment rooms in the Leased Premises free and clear of all obstructions at all times.

          7.2 Utilities. Tenant shall promptly pay, as the same become due, all charges for
water, gas, electricity, telephone, sewer service, waste pick-up, and any other utilities,
materials or services furnished directly to or used by Tenant on or about the Leased Premises
during the Lease Term.

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ARTICLE VIII

REAL PROPERTY TAXES

          8.1 Real Property Taxes Defined. The term “Real Property Taxes” as used herein shall
mean (i) all taxes, assessments, levies, and other charges of any kind or nature whatsoever,
general and special, foreseen and unforeseen (including all installments of principal and interest
required to pay any general or special assessments for public improvements and any increases
resulting from reassessments caused by any change in ownership) now or hereafter imposed by any
governmental or quasi-governmental authority or special district having the direct or indirect
power to tax or levy assessments, which are levied or assessed against, or with respect to the
value, occupancy or use of, all or any portion of the Leased Premises (as now constructed or as may
at any time hereafter be constructed, altered, or otherwise changed) or Landlord’s interest
therein; any improvements located within the Leased Premises (regardless of ownership); the
fixtures, equipment and other property of Landlord, real or personal, that are an integral part of
and located on the Leased Premises; or parking areas, public utilities, or energy within the Leased
Premises; and (ii) all charges, levies or fees imposed by reason of environmental regulation or
other governmental control of the Leased Premises. If at any time during the Lease Term the
taxation or assessment of the Leased Premises prevailing as of the Commencement Date shall be
altered so that in lieu of or in addition to any Real Property Tax described above there shall be
levied, assessed or imposed (whether by reason of a change in the method of taxation or assessment,
creation of a new tax or charge, or any other cause) an alternate or additional tax or charge (1)
on the value, use or occupancy of the Leased Premises or Landlord’s interest therein or (2) on or
measured by the gross receipts, income or rentals from the Leased Premises, on Landlord’s business
of leasing the Leased Premises, or computed in any manner with respect to the operation of the
Leased Premises, then any such alternate or additional tax or charge, however designated, shall be
included within the meaning of the term “Real Property Taxes” for purposes of this Lease. If any
Real Property Tax is based upon property or rents unrelated to the Leased Premises, then only that
part of such Real Property Tax that is fairly allocable to the Leased Premises shall be included
within the meaning of the term “Real Property Taxes.” Notwithstanding the foregoing, the term “Real
Property Taxes” shall not include estate, inheritance, transfer, gift or franchise taxes of
Landlord or the federal or state net income tax imposed on Landlord’s income from all sources.

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          8.2 Tenant’s Obligation To Pay. Not less than ten (10) days after Landlord’s
receipt of any tax bill for Real Property Taxes, Landlord shall deliver to Tenant a true, correct
and complete copy of such tax bill. ‘As additional rent, Tenant shall pay directly to the
appropriate governmental or quasi-governmental authorities all Real Property Taxes no later than
ten (10) days before such Real Property Tax becomes delinquent (or, as to any tax bill Tenant
receives less than fifteen (15) days prior to such delinquency date, no later than five (5)
business days after receipt of such tax bill). Concurrently with any such payment, Tenant shall
supply Landlord with written evidence that all Real Property Taxes then due and payable pursuant to
this Article shall have been paid prior to delinquency. If any Lender which is a bank, savings or
thrift institution, insurance company or other financial institution requires Landlord to impound
any sums to pay Real Property Taxes on a periodic basis during the Lease Term, then Tenant, on
notice from Landlord indicating this requirement, shall pay to Landlord such sums as the Lender
requires to be impounded on the same periodic basis in accordance with the Lender’s requirements.
Landlord shall impound the Real Property Tax payments received from Tenant in accordance with the
requirements of the Lender. Amounts impounded shall be maintained in an interest bearing account
until paid, and Tenant shall be entitled to interest earned thereon. Tenant shall only be required
to pay those Real “ Property Taxes or installments thereof which are payable with respect to
periods during the Lease Term, with appropriate proration at the beginning and end of the Lease
Term.

          8.3 Taxes on Tenant’s Property. Tenant shall pay before delinquency any and all
taxes, assessments, license fees, and public charges levied, assessed, or imposed against Tenant
or Tenant’s interest in this Lease or the property of Tenant situated within the Leased Premises
which become payable during the Lease Term if nonpayment thereof could give rise to a lien on the
Leased Premises.

          8.4 Tax Segregation. In the event that the
Leased Premises are not separately taxed or assessed with
respect to any Real Property Tax, then such Real Property
Tax shall be equitably apportioned and allocated between the
Leased Premises and the other areas with which it is assessed, and Tenant shall be obligated to pay, pursuant to this
Article, only the proportion of such Real Property Tax which
is so allocated to the Leased Premises.

          8.5 Tax Contest. In the event that Tenant shall
desire in good faith to contest or otherwise review by
appropriate legal or administrative proceeding any Real
Property Tax, Tenant shall, no later than ten (10) days

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after Tenant receives notice of the Real Property Tax assessment Tenant desires to contest, give
Landlord written notice of its intention to do so. Tenant may withhold payment of the Real
Property Tax being contested if, but only if, both (i) nonpayment is permitted during the pendency
of such proceedings without the foreclosure of any tax lien or the imposition of any fine or
penalty and (ii) Tenant shall obtain and furnish Landlord with a bond or other security device
sufficient to protect Landlord’s interest in the Leased Premises in an amount not less than one
hundred fifty percent (150%) of the amount contested. Any such contest shall be prosecuted to
completion (whether or not this Lease shall have expired or terminated in the interim) and shall be
conducted without delay and solely at Tenant’s expense. Tenant shall indemnify and defend Landlord
against any and all expense, liability or damage resulting from such contest or other proceeding.
At the request of Tenant, Landlord shall join in any contest or other proceedings which Tenant may
desire to bring pursuant to this paragraph. Tenant shall pay all of Landlord’s reasonable expenses
(including attorneys’ fees) arising out of such joinder. Within ten (10) days after the final
determination of the amount due from Tenant with respect to the Real Property Tax contested, Tenant
shall pay the amount so determined to be due, together with all costs, expenses and interest,
whether or not this Lease shall have then expired or terminated.

ARTICLE IX

INSURANCE

          9.1 Tenant’s Insurance. Tenant shall, at its own expense and cost, maintain the
following policies of insurance in full force and effect during the Lease Term and any Extension
Period:

          (a) Property insurance insuring against loss or
damage resulting from all-risk perils with respect to the
building structures on the Leased Premises in an amount not
less than 100% of the full insurance replacement cost
thereof.

          (b) Business interruption insurance insuring
against loss of income resulting from the same perils
described above in an amount not less than one year of total
Base Monthly Rent and Additional Rent, calculated at the
rate payable during the next ensuing year of the Lease Term.

          (c) Comprehensive general liability insurance
applying to the use and occupancy of the Leased Premises, or

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any part thereof, and the business operated by Tenant on the Leased Premises. Such insurance
shall include Broad Form Contractual liability insurance coverage insuring all of Tenant’s
indemnity obligations under this Lease. The general liability coverage shall have a minimum
combined single limit of liability of at least one million dollars ($1,000,000) and a general
aggregate limit of two million dollars ($2,000,000) (except products liability as to which the
aggregate liability is $1,000,000). The Company will maintain a $1,000,000 all risks umbrella
policy. Such coverage may be subject to a deductible not in excess of one hundred thousand dollars
($100,000) (except for products liability coverage as to which the deductible shall be in a
reasonable and customary amount). All such policies shall be written to apply to all bodily
injury, property damage, personal injury and other covered loss, however occasioned, occurring
during the policy term and shall be endorsed to add Landlord as an additional insured and to
provide that such coverage shall be primary and that any insurance maintained by Landlord shall be
excess insurance only. All such insurance shall provide for severability of interest; shall
provide that an act or omission of one of the named insureds shall not reduce or avoid coverage to
the other named insureds; and shall afford coverage for all claims based on acts, omissions, injury
and damage, which claims occurred or arose (or the onset of which occurred or arose) in whole or in
part during the policy period. Tenant shall also maintain workers’ compensation insurance in
accordance with applicable law and employers’ liability insurance with coverage no less than that
customarily maintained by similar employers in the area.

          9.2 Landlord’s Insurance. If at any time during
the Term the amount or coverage of any insurance which
Tenant is required to carry hereunder is, in Landlord’s
absolute discretion, less than the amount or type of
insurance coverage that Landlord believes appropriate,
Landlord shall have the right to obtain such other or
additional insurance as Landlord believes appropriate
(“Other Insurance”), and Tenant shall pay the cost of such
insurance as Additional Rent hereunder, to the extent the
cost of Other Insurance required under this Lease and under
all Other Leases (as defined in Paragraph 13.1(b) hereof)
does not exceed ten thousand dollars ($10,000) per year, in
the aggregate.

          9.3 Policies. Tenant shall furnish to Landlord
on the date of this Lease and thereafter within thirty (30)
days prior to the expiration of each such policy, certificates of insurance issued by the insurance carrier of each
policy of insurance carried by Tenant pursuant hereto
showing that all premiums have been paid for the full policy

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period. Each certificate shall expressly provide that such policies shall not be cancellable or
subject to reduction of coverage or otherwise be subject to modification except after thirty (30)
days’ prior written notice to the parties named as insureds herein. Landlord, Landlord’s
successors and assigns and any nominee of Landlord holding any interest in the Leased Premises,
including the holder of any fee mortgage, shall be named as additional insureds under each policy
of insurance maintained by Tenant. All insurance policies carried by Tenant pursuant to this
Article IX shall be issued by insurance companies with a rating of “Good” or better as rated in
Best’s Insurance Guide. Any deductible amounts under any insurance policies required hereunder
shall be subject to Landlord’s prior written approval. If Tenant shall fail to procure any
insurance required under this Lease or to deliver the certificates required under this Paragraph
9.3 Landlord may, at its option and in addition to Landlord’s other remedies in the event of a
default by Tenant hereunder, procure such insurance for the account of Tenant, and the cost thereof
shall be paid to Landlord as additional rent on demand.

          9.4 Release and Waiver of Subrogation. The parties hereto release each other, and
their respective authorized representatives, from any claims for injury to any persons or damage to
property that are caused by or result from risks insured against under any insurance policies
carried by the parties and in force at the time of such damage, but only to the extent such claims
are covered by such insurance. This release shall be in effect only so long as the applicable
insurance policies contain a clause to the effect that this release shall not affect the right of
the insured to recover under such policies. Each party shall cause each insurance policy obtained
by it to provide that the insurance company waives all rights of recovery by way of subrogation
against either party in connection with any damage covered by such policy.

ARTICLE X

LIMITATION ON LANDLORD’S

LIABILITY AND INDEMNITY

          10.1 Limitation on Landlord’s Liability. Except for loss proximately caused by
Landlord’s active negligence or willful misconduct, and then only to the extent such loss is not
covered by insurance actually carried or required to be carried pursuant to this Lease, Landlord
shall not be liable to Tenant, nor shall Tenant be entitled to terminate this Lease or to any
abatement of rent, for any injury to Tenant, its agents, employees, contractors or invitees;

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damage to Tenant’s property; or loss to Tenant’s business resulting from any cause, including
without limitation any (i) failure or interruption of any HVAC or other utility system or service;
(ii) governmental regulation, including a rationing or other control of utility services or use of
the Leased Premises; or (iii) penetration of water into or onto any portion of the Leased Premises
through roof leaks or otherwise.

          10.2 Indemnification of Landlord. Tenant shall hold harmless, indemnify and defend
Landlord, and its employees, agents and contractors, with competent counsel reasonably satisfactory
to Landlord, from all liability, penalties, losses, damages, costs, expenses, causes of action,
claims and/or judgments arising by reason of any death, bodily injury, personal injury or property
damage (i) resulting from any cause or causes whatsoever (including, without limitation, the
passive negligence of Landlord or any agent of Landlord or Lender but excluding the active
negligence or willful misconduct of Landlord, any Lender or any agent of Landlord or Lender)
occurring in or about or resulting from an occurrence in or about the Leased Premises, or (ii)
resulting from the negligence or willful misconduct of Tenant, its agents, employees and
contractors, wherever the same may occur, or (iii) resulting from any failure by Tenant to perform
and observe its covenants and obligations under this Lease. The provisions of this paragraph shall
survive the expiration or sooner termination of this Lease with respect to any claims or liability
occurring prior to such expiration or sooner termination.

ARTICLE XI

DAMAGE TO LEASED PREMISES

          11.1 Duty To Restore. If the Leased Premises are damaged by any casualty
after the Commencement Date, Tenant shall restore fully the Leased Premises to the condition
existing prior to such casualty (unless the Lease is terminated pursuant to Paragraph 11.2) and
insurance proceeds relating to such damage shall be used in the restoration of the Leased Premises.
If this Lease is not so terminated, then upon the issuance of all necessary governmental permits,
Tenant shall commence and diligently prosecute to completion the restoration of the Leased
Premises, to the extent then allowed by Law, to substantially the same condition as that existing
immediately prior to such damage.

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          11.2 Tenant’s Right To Terminate.

          (a) If any of the following occurs, Tenant shall
have the option to terminate this Lease, which option may be
exercised only by delivery to Landlord of a written notice
of election to terminate within thirty (30) days after such
occurrence:

     (i) The Leased Premises are damaged by any casualty and restoration cannot
be substantially completed within three hundred sixty (360) days after the date
of such damage; or

     (ii) The Leased Premises are damaged by any casualty within twelve (12) months
of the last day of the Lease Term or any proper extension thereof and the restoration
cannot be substantially completed within one hundred eighty (180) days after the date
of such damage.

          (b) As a condition precedent to termination of
the Lease pursuant to this Paragraph 11.2, all insurance
proceeds available from insurance carried by Tenant which
covers loss to property that is Landlord’s property or would
become Landlord’s property on termination of this Lease
shall be paid to and become the property of Landlord, and,
if such insurance proceeds are insufficient to restore the
Leased Premises, Tenant shall pay the amount of such deficiency to Landlord.

          11.3 No Abatement of Rent. There shall be no
abatement of Base Monthly Rent or other sums due hereunder,
irrespective of any event of damage to the Leased Premises,
unless and until this Lease shall have terminated as a
result of such damage.

ARTICLE XII 

CONDEMNATION

          12.1 Definitions. As used in this Lease, the following terms shall have
the following meanings:

          (a) The term “Condemnation” shall mean (i) any taking by the exercise of the power of eminent
domain, whether by legal proceedings or otherwise, by any person or entity having the legal power
to do so, (ii) a voluntary sale or transfer by Landlord to any condemnor, either under threat of
condemnation or while legal proceedings for condemnation are pending, or (iii) any taking by
inverse condemnation.

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          (b) The term “substantially all” shall mean a
portion of the Leased Premises (that is, less than all of
the Leased Premises) which leaves remaining a balance that
may not be economically operated for the purpose for which
the Leased Premises was operated prior to the Condemnation
in question, in Tenant’s reasonable judgment.

          (c) The term “less than substantially all” shall
mean a portion of the Leased Premises that is not all or
substantially all (as defined above) of the Leased Premises.

          (d) The term “Date of Taking” shall mean the date
the condemnor has the right to possession of the property
being condemned.

          (e) The term “Award” shall mean all compensation,
sums, or anything of value awarded, paid or received on a
total or partial Condemnation.

          12.2 Total Condemnation. If all or substantially
all of the Leased Premises are taken by Condemnation, this
Lease shall terminate on the Date of Taking.

          12.3 Partial Condemnation. If less than substantially all of the Leased Premises are taken by Condemnation,
this Lease shall terminate as to the portion taken and
otherwise remain in full force and effect, except that the
amount of Base Monthly Rent due hereunder, from time to
time, shall be reduced, from and after the Date of Taking in
the same proportion as the Award bears to the fair market
value of the Leased Premises on the Date of Taking.
Landlord shall have no obligation to restore the Leased
Premises, or otherwise compensate Tenant (except through
such rent reduction), in the event of such partial
Condemnation.

          12.4 Temporary Taking. If all or substantially
all of the Leased Premises is temporarily taken by Condemnation for a period which either exceeds one (1) year or which
extends beyond the expiration of the Lease Term, then Landlord and Tenant shall each independently have the option to
terminate this Lease, effective on the date possession is
taken by the condemnor. If any portion of the Leased
Premises is temporarily taken by Condemnation for a period
of less than one year, this Lease shall continue in full
force and effect with no abatement of rent.

          12.5 Division of Condemnation Award. Any Award
made as a result of any Condemnation of the Leased Premises
shall belong to and be paid to Landlord (except that any
Award for partial Condemnation described in Section 12.3
hereof shall be paid to Landlord net of reasonable

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restoration expenses), and Tenant hereby assigns to Landlord all of its right, title and
interest in any such award; provided, however, that Tenant shall be entitled to receive any
condemnation award that is made directly to Tenant expressly (i) for the taking of personal
property or Trade Fixtures belonging to Tenant, (ii) for the interruption of Tenant’s business or
its moving costs, and/or (iii) for any temporary taking where this Lease is not terminated as a
result of such taking. The rights of Landlord and Tenant regarding any Condemnation shall be
determined as provided in this Article, and each party hereby waives the provisions of any law
allowing either party to petition a court to terminate this Lease in the event of a partial taking
of the Leased Premises.

ARTICLE XIII

DEFAULT AND REMEDIES

          13.1 Events of Default. Tenant shall be in default of its obligations under this
Lease if any of the following events shall occur:

          (a) Tenant shall have failed to pay Base Monthly
Rent, Additional Rent, or any other rent or payment due
Landlord on the date due hereunder; provided that Landlord
shall give Tenant notice of such failure and three (3) days
to cure such failure; provided further that, if Landlord
gives any such notice, from time to time, then for the one
(1) year period thereafter Tenant shall be in default
immediately upon any failure to pay any such amount due
Landlord hereunder on the date such payment is due; or

          (b) Any default by the Tenant shall have occurred
under any other Industrial Real Property Lease entered into
between Landlord and Tenant or any affiliate of Tenant (each
an “Other Lease”), unless at the time of such default either
(i) the original Landlord is either (A) no longer the owner of the fee estate in the Leased
Premises, or (B) no longer the owner of the fee estate in the premises leased under such other
lease, or (ii) the Continuing Lease Guaranty by Guarantor guarantying such Other Lease shall
have terminated in accordance with the terms of paragraph 6 thereof; or

          (c) Tenant shall have failed to perform any term,
covenant, or condition of this Lease except those requiring
the payment of Base Monthly Rent, Additional Rent, or any
other rent or payment due Landlord, and Tenant shall have
failed to cure such failure within ten (10) days after
written notice from Landlord specifying the nature of such

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breach, provided, however, that if any such breach cannot reasonably be cured within such ten (10)
day period then Tenant may have a reasonable period to cure such breach provided, however, that
Tenant commences to cure the breach within said ten (10) day period and thereafter diligently
pursues such cure to completion; or

          (d) Tenant shall have made a general assignment
of its assets for the benefit of its creditors; or

          (e) Tenant shall have sublet the Leased Premises
or assigned its interest in the Lease in violation of the
provisions contained in Article XIV, whether voluntarily or
by operation of law; or

          (f) Tenant shall have permitted the sequestration
or attachment of, or execution on, or the appointment of a
custodian or receiver with respect to, all or any substantial part of the property of Tenant or on any property
essential to the conduct of Tenant’s business and Tenant
shall have failed to obtain a return or release of such
property within thirty (30) days thereafter, or prior to
sale pursuant to such sequestration, attachment or levy,
whichever is earlier; or

          (g) Tenant shall have abandoned the Leased
Premises; or

          (h) A court shall have made or entered any decree or order with respect to Tenant or Tenant
shall have submitted to or sought a decree or order (or a petition or pleading shall have been
filed in connection therewith) which: (i) grants or constitutes (or seeks) an order for relief,
appointment of a trustee, or confirmation of a reorganization plan under the bankruptcy laws of the
United States; (ii) approves as properly filed (or seeks such approval of) a petition seeking
liquidation or reorganization under said bankruptcy laws or any other debtor’s relief law or
statute of the United States or any state thereof; or (iii) otherwise directs (or seeks) the
winding up or liquidation of Tenant; and such petition, decree or order shall have continued in
effect for a period of thirty (30) or more days.

          13.2 Landlord’s Remedies. In the event of any default by Tenant, Landlord shall have
the following remedies, in addition to all other rights and remedies provided by any Law or
otherwise provided in this Lease, to which Landlord may resort cumulatively, or in the
alternative:

          (a) Landlord may, at Landlord’s election, keep this Lease in effect and enforce all of its
rights and remedies under the Lease, including (i) the right to recover

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the rent and other sums as they become due by appropriate legal action, and (ii) the right to
invoke the remedies of injunctive relief and specific performance to compel Tenant to perform its
obligations under this Lease.

          (b) Landlord may, at Landlord’s election, terminate this Lease and re-enter the Leased Premises by giving
Tenant written notice of termination, in which event this
Lease shall terminate on the date set forth for termination
in such notice. Any termination under this subparagraph
shall not relieve Tenant from the payment of any sums then
due Landlord or from any claim against Tenant for damages or
rent previously accrued or then accruing. In no event shall
any one or more of the following actions by Landlord, in the
absence of a written election by Landlord to terminate this
Lease, constitute a termination of this Lease:

     (i) Appointment of a receiver or keeper in order to protect Landlord’s
interest hereunder;

     (ii) Consent or refusal to consent to any subletting of the Leased Premises or
assignment of this Lease by Tenant, whether pursuant to the provisions hereof or
otherwise; or

     (iii) Any other action by Landlord or Landlord’s agents intended to mitigate
the adverse effects of any breach of this Lease by Tenant, including without
limitation any action taken to maintain and preserve the Leased Premises or any
action taken to relet the Leased Premises or any portions thereof, for the account of
Tenant and in the name of Tenant.

          (c) In the event Tenant breaches this Lease and
abandons the Leased Premises, this Lease shall not terminate
unless Landlord gives Tenant written notice of its election
to so terminate this Lease. No act by or on behalf of
Landlord intended to mitigate the adverse effect of such
breach, including those described by subparagraphs (b)(i),
(ii) and (iii) immediately preceding, shall constitute a
termination of Tenant’s right to possession unless Landlord
gives Tenant written notice of termination. Should Landlord
not terminate this Lease by giving Tenant written notice,
Landlord may enforce all its rights and remedies under this
Lease, including the recovery of rent as it becomes due
under the Lease.

          (d) In the event Landlord terminates this Lease,
Landlord shall be entitled, at Landlord’s election, to
damages as provided under applicable law or as set forth in
these subparagraphs 13.2(d)(i)-(iii). For purposes of

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computing such damages (i) an interest rate of fifteen percent (15%) per annum (or the maximum
rate allowed by law if such rate is less than 15% per annum) shall be used where permitted, and
(ii) rent due under this Lease shall include Base Monthly Rent, Additional Rent and all other rent
or other charges payable by Tenant hereunder, prorated on a monthly basis where necessary to
compute such damages. Such damages shall include without limitation:

     (i) The worth at the time of award of the amount by which the unpaid rent for
the balance of the term after the time of award exceeds the amount of such rental
loss that Tenant proves could be reasonably avoided, computed by discounting such
amount at the discount rate of the Federal Reserve Bank of San Francisco at the time
of award plus one percent (1%); and

     (ii) Any other amount necessary to compensate Landlord for all detriment
proximately caused by Tenant’s failure to perform Tenant’s obligations under this
Lease or for expenses incurred by Landlord in performing Tenant’s obligations under
this Lease, or which in the ordinary course of things would be likely to result
therefrom, including, without limitation, the following: (a) expenses for cleaning,
repairing or restoring the Leased Premises; (b) expenses for altering, remodeling or
otherwise improving the Leased Premises for the purpose of reletting, including
installation of leasehold improvements (whether such installation be funded by a
reduction of rent, direct payment or allowance to a new tenant, or otherwise); (c)
broker’s fees, advertising costs and other expenses of reletting the Leased Premises;
(d) costs of carrying the Leased Premises, such as taxes, insurance premiums,
utilities and security precautions; (e) expenses in retaking possession of the Leased
Premises; (f) attorneys’ fees and court costs incurred by Landlord in retaking
possession of the Leased Premises and in reletting the Leased Premises; and (g) the
portion of any brokerage commission paid by Landlord in procuring this Lease
attributable to the remaining balance of the Lease Term.

     (iii) For purposes of this Article, the rent due for any calendar month after
which Tenant has terminated the operation of its business as herein specified or has
abandoned the Leased Premises shall be deemed to be the average monthly rent,
including the Base Monthly Rent and all additional

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rent hereunder, which were due for the twelve (12) month period immediately prior to
such termination or for such shorter period of time as this Lease shall have been in
effect.

          (e) Nothing in this paragraph shall limit Landlord’s right to indemnification from Tenant
as provided in Paragraph 10.2.

          13.3 Landlord’s Right To Cure. All covenants and
agreements to be kept or performed by Tenant under any of
the terms of this Lease shall be performed by Tenant at
Tenant’s sole cost and expense and without any abatement of
rent. If Tenant shall fail to pay any sum of money required
to be paid by it hereunder (other than Monthly Rent and
Additional Rent payable under this Lease) or shall fail to
perform any other act on its part to be performed hereunder
(whether such payment or performance is due to Landlord or
any third party), Landlord may, but shall not be obliged to,
and without waiving any default of Tenant or releasing
Tenant from any obligations to Landlord hereunder, make any
such payment or perform any such other act on Tenant’s part
to be made or performed as in this Lease provided (including
but not limited to Tenant’s obligations pursuant to Paragraphs 4.2, 6.1 and 6.2 hereof). All sums so paid by
Landlord and all necessary incidental costs, together with
interest thereon at the rate of fifteen percent (15%) per
annum (or the maximum rate allowed by law if such rate is
less than 15% per annum) from the date of such payment by
Landlord, shall be paid to Landlord forthwith on demand, and
Landlord shall have (in addition to any other right or
remedy of Landlord) the same rights and remedies (including,
but not limited to, Landlord’s remedies under Paragraph 13.5
hereof) in the event of nonpayment thereof by Tenant as in
the case of default by Tenant in the payment of rent.

          13.4 Waiver. One party’s consent to or approval
of any act by the other party requiring the first party’s
consent or approval shall not be deemed to waive or render
unnecessary the first party’s consent to or approval of any
subsequent similar act by the other party. The receipt by
Landlord of any rent or payment with or without knowledge of
the breach of any other provision hereof shall not be deemed
a waiver of any such breach unless such waiver is in writing
and signed by Landlord. No delay or omission in the exercise of any right or remedy accruing to either party upon
any breach by the other party under this Lease shall impair
such right or remedy or be construed as a waiver of any such
breach theretofore or hereafter occurring. The waiver by
either party of any breach of any provision of this Lease
shall not be deemed to be a waiver of any subsequent breach
of the same or any other provisions herein contained.

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          13.5
Late Charge. In the event any amount of Base Monthly Rent, Additional Rent
or any other payment due Landlord hereunder shall remain unpaid for five (5) calendar days after
such amount becomes due, Tenant shall pay Landlord, without notice or demand, a late charge equal
to five percent (5%) of such overdue amount to partially compensate Landlord for its administrative
costs in connection with such overdue payment.

ARTICLE
XIV

ASSIGNMENT AND SUBLETTING

          14.1
By Tenant. The following provisions shall apply to any assignment or
subletting by Tenant:

          (a) Tenant shall not sublet the Leased Premises or assign or encumber its interest in this
Lease, whether voluntarily or by operation of law without Landlord’s prior written consent, which
consent shall not be unreasonably withheld or delayed. Without limiting the generality of the
foregoing, (i) it shall be reasonable for Landlord to withhold such consent if, on the date such
consent is requested, Tenant is in default hereunder, (ii) unless the proposed assignee is
substantially more solvent than Tenant and Guarantor (on a consolidated basis), it shall be
reasonable for Landlord to withhold such consent if, on the date Landlord’s consent is requested,
the Guaranty is no longer in full force and effect or if, on the date Landlord’s consent is
requested, the Guaranty provides materially less security to Landlord than it provided on the
Commencement Date, in Landlord’s reasonable judgment, and (iii) it shall be unreasonable for
Landlord to withhold such consent as to an assignment to an affiliate of Tenant or a deemed assignment
under paragraph (e) below unless, in either case, the Guaranty is no longer in full force and
effect or Tenant is in monetary or material nonmonetary default hereunder. Any attempted
subletting, assignment or encumbrance without Landlord’s prior written consent shall be voidable
and, at Landlord’s election, shall constitute a default by Tenant hereunder.

          (b) Tenant agrees to reimburse Landlord for all reasonable costs and attorneys’ fees incurred
by Landlord in conjunction with the processing and documentation of any such requested assignment,
subletting, transfer, change of ownership or hypothecation of the Leased Premises or Tenant’s
interest in this Lease. No such assignment, subletting, transfer, change of ownership or
hypothecation shall be effective until (i) Tenant shall have paid such costs and fees; (ii). each
such assignee or transferee

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(excluding a subtenant) shall have agreed in writing for the benefit of Landlord to assume, to be
bound by, and to perform the obligations of this Lease to be performed by Tenant, and (iii) an
executed copy of such sublease, assignment, encumbrance, or other agreement of transfer shall have
been delivered to Landlord.

          (c) Consent by Landlord to one or more assignments or encumbrances of this Lease or to one or
more sublettings of the Leased Premises shall not be deemed to be a consent to any subsequent
assignment, encumbrances or subletting.

          (d) No subletting or assignment, even with the consent of Landlord, shall relieve Tenant of
its personal and primary obligation to pay the rent and to perform all of the other obligations to
be performed by Tenant hereunder. The acceptance of rent by Landlord from any person shall not be
deemed to be a waiver by Landlord of any provision of this Lease or to be a consent to any
assignment or subletting.

          (e) Subject to Paragraph 14.1(a) above, if Tenant is a corporation, any dissolution, merger,
consolidation or other reorganization of Tenant, or the sale or other transfer in the aggregate
over the Lease Term of a controlling percentage of the capital stock of Tenant, shall be deemed a
voluntary assignment of Tenant’s interest in this Lease.
The phrase “controlling percentage” means the ownership of and the right to vote stock possessing
more than fifty percent (50%) of the total combined voting power of all classes of Tenant’s capital
stock issued, outstanding and entitled to vote for the election of directors. If Tenant is a
partnership, a withdrawal or change, voluntary, involuntary or by operation of law, of any general
partner, or the dissolution of the partnership, shall be deemed a voluntary assignment.

          (f) If Tenant transfers or assigns this Lease or all or part of its interest in this Lease in
accordance with this Article, then Tenant shall pay to Landlord fifty percent (50%) of all net
consideration received by Tenant as a result of such assignment as and when received by Tenant.
If Tenant sublets all or part of the Leased Premises in accordance with this Article, then Tenant
shall pay to Landlord fifty percent (50%) of the positive difference, if any, between (i) all rent
and other consideration paid by the subtenant to Tenant less (ii) all costs incurred by Tenant
incident to the sublease agreement (including an amount equal to the resulting product of the rent
payable hereunder to Landlord by Tenant during the time period covered by such payments by the
subtenant times a fraction whose numerator

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is the leasable area of that portion of the Leased Premises so sublet and whose denominator is
Tenant’s gross leasable area). Said consideration shall be payable to Landlord on the same basis,
whether periodic or in lump sum, that such consideration is paid to Tenant by its subtenant, and,
in calculating Landlord’s share of any periodic payments, all costs incurred by Tenant incident to
the sublease agreement (other than the payment of rent to Landlord hereunder) shall be amortized
over the term of the sublease. Landlord shall have the right to require Tenant to certify the
accuracy of the amount of compensation so paid and to conduct annual independent audits thereof at
Landlord’s sole cost.

          14.2
By Landlord. Landlord and its successors in interest shall have the right to
transfer their interest in the Leased Premises and this Lease at any time and to any person or
entity. In the event of any conveyance of the Leased Premises and assignment by Landlord of this
Lease to another, the Landlord originally named herein (and in the case of any subsequent transfer,
the transferor), from the date of such transfer, (i) shall be automatically relieved, without any
further act by any person or entity, of all liability for the performance of the obligations of the
Landlord hereunder which may accrue after the date of such transfer, and (ii) shall be relieved of
all liability for the performance of the obligations of the Landlord hereunder which have accrued
before the date of transfer if its transferee agrees to assume and perform all such obligations of
the Landlord hereunder and such transferee is not substantially less solvent than Landlord. In the
event the Landlord’s interest in the Leased Premises is transferred to multiple transferees, such
transferees shall designate, by a written notice to Tenant delivered upon such transfer, the name
and address of a single person to whom all rent and notices to be paid or given by Tenant hereunder
shall be addressed and who shall be the sole authorized party to give notices to Tenant hereunder;
Tenant’s payment of rent to such designated person shall satisfy Tenant’s obligation to pay rent to
Landlord; Tenant’s delivery of notices to such designated person shall constitute notice to
Landlord and Tenant may rely upon notices from such designated person as being notice from
Landlord. After the date of any such transfer, the term “Landlord” as used herein shall mean the
transferee of such interest in the Leased Premises.

ARTICLE
XV

TERMINATION

          15.1
Surrender of the Leased Premises. Immediately prior to the
Expiration Date or upon the earlier

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termination of this Lease, Tenant shall remove all Tenant’s Trade Fixtures and other personal
property and vacate and surrender the Leased Premises to Landlord in the same condition as existed
at the Commencement Date, reasonable wear and tear excepted. Without limiting the generality of the
foregoing, Tenant shall surrender the Leased Premises with all interior walls cleaned, all carpets
shampooed and cleaned, all HVAC equipment within the Leased Premises in operating order and in good
repair, and all floors cleaned, all to the reasonable satisfaction of Landlord. If Landlord so
requests, Tenant shall, at its sole cost and prior to the expiration or earlier termination of this
Lease, remove any Leasehold Improvements not constructed or installed in compliance with Paragraph
5.1 hereof designated by Landlord, and repair all damage caused by such removal. If the Leased
Premises are not so surrendered at the termination of this Lease, Tenant shall be liable to
Landlord for all costs incurred by Landlord in returning the Leased Premises to the required
condition, plus interest, from the date of demand for payment of such costs to the date paid, on
all costs incurred at the rate of fifteen percent (15%) per annum (or the maximum rate allowed by
law if such rate is less than 15% per annum). Tenant shall indemnify Landlord against loss or
liability resulting from delay by Tenant in so surrendering the Leased Premises, including, without
limitation, any claims made by any succeeding tenant or losses to Landlord due to lost
opportunities to lease to succeeding tenants.

          15.2
Holding Over. Unless earlier terminated in accordance with this Lease or duly
extended pursuant to Paragraph 16.10 hereof, this Lease shall terminate without further notice on
the Expiration Date. Any holding over by Tenant after termination of the Lease shall not constitute
a renewal or extension of the Lease or give Tenant any rights in or to the Leased Premises except
as expressly provided in this Lease. Any holding over after such expiration with the consent of
Landlord shall be construed to be a tenancy from month to month on the same terms and conditions
herein specified insofar as applicable except that Base Monthly Rent shall be increased to an
amount equal to two hundred percent (200%) of the Base Monthly Rent required during the last month
prior to such termination.

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ARTICLE
XVI 

GENERAL PROVISIONS

          16.1
Financial Information. Tenant shall furnish to Landlord:

          (a) As soon as available and in any event within 45 days after the end of each quarterly
accounting period in each fiscal year of Tenant, copies of a consolidated balance sheet of Tenant
and its consolidated subsidiaries as of the last day of such quarterly accounting period, and
copies of the related consolidated statements of income and of changes in shareholders’ equity and
in financial position of Tenant and its consolidated subsidiaries for such quarterly accounting
period and for the elapsed portion of the current fiscal year ended with the last day of such
quarterly accounting period, all in reasonable detail and with appropriate notes, if any, and
stating in comparative form the figures for the corresponding dates and periods in the previous
fiscal year, all prepared in accordance with generally accepted accounting practice consistently
applied, certified as complete and correct in all material respects by the chief financial officer
of Tenant (subject to year-end audit adjustments), and otherwise in form satisfactory to Landlord;

          (b) As soon as available and in any event within 90 days after the end of each fiscal year of
Tenant, copies of a consolidated balance sheet of Tenant and its consolidated subsidiaries as of
the end of such fiscal year, and copies of the related consolidated statements of income and of
changes in shareholders’ equity and in financial position of Tenant and its consolidated
subsidiaries for such fiscal year, all in reasonable detail and with appropriate notes, if any, and
all prepared in accordance with generally accepted accounting practice consistently applied and
stating in comparative form the corresponding figures as of the end of and for the previous fiscal
year, and accompanied by an opinion or report thereon, in scope and substance satisfactory to
Landlord, by Arthur Young & Company or such other firm of independent certified public accountants
of recognized standing in the financial community as may be selected by Tenant and reasonably
acceptable to Landlord, and otherwise in a form satisfactory to Landlord;

          (c) Concurrently with each of the financial statements furnished pursuant to subsection (a) or
(b) above, a certificate signed by the chief financial officer of Tenant, to the effect that in the
opinion of such officer, based upon a review made under his or her supervision, Tenant has
performed and observed all of, and

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is not in default in the performance or observance of any of, its obligations under this Lease
(or, if such be not the case, specifying all such defaults and failures, and the nature thereof, of
which such officer may have knowledge and the action proposed to be taken in respect thereof);

          (d) Copies of all regular and periodic reports or other reports which Tenant or any subsidiary
shall make or be required to file with the Securities and Exchange Commission or any other federal
or state regulatory agency or with any municipal or other local body, and such other information
relating to the business, affairs and financial condition of Tenant and its subsidiaries as
Landlord may from time to time reasonably request.

          16.2
Landlord’s Right To Enter. Tenant shall permit Landlord and its agents to enter
the Leased Premises at all reasonable times, upon not less than one (1) business day’s notice, for
the purpose of (i) inspecting the same; (ii) posting notices of nonresponsibility; (iii) exhibiting
the Leased Premises to prospective purchasers, lenders or tenants; (iv) determining whether Tenant
is performing all its obligations hereunder; (v) discharging Tenant’s obligation (including the
obligations to repair and maintain the Leased Premises) when Tenant has failed to do so after
written notice from Landlord; and/or (vi) placing upon the Leased Premises ordinary “for lease” or
“for sale” signs. Landlord shall not use, copy or publish any confidential or proprietary
information of Tenant’s obtained by Landlord in any such entry upon the Leased Premises and
Landlord shall maintain all such information in confidence.

          16.3
Subordination. This Lease is subject and subordinate to any underlying ground
leases, mortgages, charges and deeds of trust which affect the Leased Premises and are of public
record as of the Commencement Date, and to all renewals, modifications, consolidations,
replacements and extensions thereof. However, if the lessor under any such lease or any Lender
holding such mortgage, charge or deed of trust shall advise Landlord that it desires or requires
this Lease to be prior and superior thereto, then, upon written request of Landlord to Tenant,
Tenant shall promptly execute, acknowledge and deliver any and all documents or instruments which
Landlord or such lessor or Lender deems necessary or desirable to make this Lease prior thereto. At
Landlord’s election, this Lease shall become and thereafter remain subject and subordinate to any
and all future mortgages, charges or deeds of trust affecting the Leased Premises which may
hereafter be executed and placed of public record after the Commencement Date, or any renewals,
modifications, consolidations, replacements or extensions thereof, for the full amount of all
advances made

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or to be made thereunder and without regard to the time or character of such advances, so long as
the Lender holding the security instrument to which this Lease is to be subordinated agrees that it
will recognize Tenant’s rights under this Lease and not disturb its quiet possession of the Leased
Premises so long as Tenant is not in default hereunder. Tenant agrees, within ten (10) business
days after Landlord’s written request therefor, to execute, acknowledge and deliver to Landlord any
and all documents or instruments requested by Landlord or such Lender as may be reasonably
necessary or proper to assure the subordination of this Lease to any such mortgage, charge or deed
of trust; provided that such documents and instruments shall not impose upon Tenant obligations
other than those set forth in this Lease and further provided that Tenant has received or
contemporaneously receives a written document in form and substance reasonably sufficient to
evidence such Lender’s agreement to recognize Tenant’s rights as above provided.

          16.4 Tenant’s Attornment. Tenant shall attorn (i) to any purchaser of the Leased
Premises at any foreclosure sale or private sale conducted pursuant to any security instrument
encumbering the Leased Premises, (ii) to any grantee or transferee designated in any deed given in
lieu of foreclosure, or (iii) to the lessor under any underlying ground lease in effect on the date
hereof should such ground lease be terminated.

          16.5 Estoppel Certificates. At all times during the Lease term, Tenant agrees,
following any request by Landlord (which requests Landlord agrees not to make more frequently than
four (4) times in any twelve (12) month period), to promptly execute and deliver to Landlord an
estoppel certificate (i) certifying that this Lease is unmodified and in full force and effect, or,
if modified, stating the nature of such modification and certifying that this Lease, as so
modified, is in full force and effect, (ii) stating the date to which the rent and other charges
are paid in advance, if any, (iii) acknowledging that there are not, to Tenant’s knowledge, any
uncured defaults on the part of Landlord hereunder, or if there are uncured defaults on the part of
Landlord, stating the nature of such uncured defaults, and (iv) certifying such other information
about the Lease as may be reasonably required by Landlord. Tenant’s failure to deliver an estoppel
certificate (or other response to Landlord’s request therefor, if such certificate cannot
practicably be given) within ten (10) business days after delivery of Landlord’s request therefor
(unless such request was not actually received by Tenant) shall be a conclusive admission by Tenant
that, as of the date of the request for such statement, (i) this Lease is unmodified except as may
be represented by Landlord in said

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request and is in full force and effect, (ii) there are no uncured defaults in Landlord’s
performance, and (iii) no rent has been paid in advance.

          16.6
Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts,
inclement weather, labor disputes, inability to obtain labor, materials, fuels or reasonable
substitutes therefor, governmental restrictions, regulations, controls, action or inaction, civil
commotion, fire or other acts of God, and other causes beyond the reasonable control of the party
obligated to perform (except financial inability) shall excuse the performance, for a period equal
to the period of any said prevention, delay or stoppage, of any obligation hereunder except the
obligation of Tenant to pay rent or any other sums due hereunder.

          16.7
Notices. Any notice required or desired to be given regarding this Lease shall
be in writing and shall be personally served, or in lieu of personal service may be given by mail.
If served by mail, such notice shall be deemed to have been given (i) on the fifth (5th) business
day after mailing if such notice was deposited in the United States mail, certified and postage
prepaid, addressed to the party to be served at its address first above set forth and (ii) in
all other cases when actually received. Either party may change its address by giving notice
of same in accordance with this paragraph.

          16.8
Attorneys’ Fees. In the event either party shall bring any action or legal
proceeding for an alleged breach of any provision of this Lease, to recover rent, to terminate
this Lease or to otherwise enforce, protect or establish any term or covenant of this Lease or
right of either party, the prevailing party shall be entitled to recover as a part of such action
or proceedings, or in a separate action brought for that purpose, all costs and expenses,
including reasonable attorneys’ fees, incurred in such action or proceedings and in any appeal in
connection therewith.

          16.9
Corporate Authority. If Tenant is a corporation (or a partnership), each
individual executing this Lease on behalf of said corporation (or partnership) represents and
warrants that he is duly authorized to execute and deliver this Lease on behalf of said
corporation in accordance with the by-laws of said corporation (or partnership in accordance with
the partnership agreement of said partnership) and that this Lease is binding upon said corporation
(or partnership) in accordance with its terms. If Tenant is a corporation Tenant shall,
within thirty (30) days after execution of this Lease, deliver to Landlord a certified copy of the
resolution of the board of directors

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of said corporation authorizing or ratifying the execution of this Lease. Each individual executing
this Lease on behalf of Landlord warrants that he is duly authorized to execute and deliver this
Lease on behalf of Landlord in accordance with the partnership agreement of Landlord and that this
Lease is binding upon Landlord in accordance with its terms. Landlord shall within thirty (30) days
after execution of this Lease, deliver to Tenant a certified copy of a resolution of the board of
directors of the general partner of Landlord authorizing or ratifying the execution of this Lease.

          16.10
Option To Extend. Provided there exists no uncured default by Tenant under this
Lease, Tenant shall have the option to extend the Lease Term for three (3) successive periods of
five (5) years each (each such period is herein referred to as an “Extension Period”). Tenant may
exercise its option with respect to the first extension period by written notice to the Landlord
given not later than nine (9) months prior to the Expiration Date and with respect to each
succeeding Extension Period not later than nine (9) months prior to expiration of the Extension
Period then in effect. Each such extension shall be upon all the same terms and conditions
specified in this Lease except that Base Monthly Rent shall be adjusted as provided in paragraph
16.11 hereof.

          16.11
CPI Rent Adjustment. Commencing with the first CPI Adjustment Date and
thereafter on each successive CPI Adjustment Date the Base Monthly Rent payable pursuant to
paragraph 3.1 hereof shall be subject to increase as follows:

          (a) Effective on each CPI Adjustment Date, the Base Monthly Rent shall be the sum of (i) the
Base Monthly Rent for the immediately preceding month payable under paragraph 3.1 hereof plus (ii)
the product obtained by multiplying such Base Monthly Rent by the percentage increase in the
Consumer Price Index measured from the last month for which the Consumer Price Index was published
immediately preceding the month ending 5 years prior to such CPI Adjustment Date to the last month
for which the Consumer Price Index is published immediately preceding the CPI Adjustment Date in
question. Notwithstanding the foregoing, in no event shall the Base Monthly Rent after any CPI
Adjustment Date be less than one hundred twenty percent (120%) nor more than one hundred
twenty-five percent (125%) of the Base Monthly Rent for the month immediately preceding such CPI
Adjustment Date.

          16.12
Brokerage Commissions. Tenant and Landlord each warrants to the other that it
has not had any dealings

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with any real estate brokers or salesmen or incurred any obligations for the payment of real estate
brokerage commissions or finder’s fees which would be earned or due and payable by reason of the
execution of this Lease.

          16.13
Termination by Exercise of Option. If this Lease is terminated pursuant to its
terms by the proper exercise of an option to terminate specifically granted to Landlord or Tenant
by this Lease, then this Lease shall terminate fifteen (15) days after the date the option to
terminate is properly exercised (unless another date is specified in that part of the Lease
creating the option, in which event the date so specified for termination shall prevail), the rent
and all other charges due hereunder shall be prorated as of the date of termination, and neither
Landlord nor Tenant shall have any further rights or obligations under this Lease except for those
that have accrued prior to the date of termination.

          16.14 Guaranty. Tenant’s obligations under this Lease shall be guaranteed by Palco
Acquisition Company, a Delaware corporation (“Palco” or the “Guarantor”), pursuant to a Continuing
Lease Guaranty (the “Guaranty”) of even date herewith attached as Exhibit C hereto. Tenant shall
cause Guarantor to execute and deliver the Guaranty to Landlord on the date hereof. The Guaranty
shall remain in full force and effect during the entire Lease Term irrespective of any transfer or
assignment of this Lease or any interest of Tenant therein or in the Leased Premises.

          16.15
Memorandum of Lease. On the Commencement Date, Landlord and Tenant shall
execute, acknowledge and file for recordation a memorandum of this Lease substantially in the form
of Exhibit D attached hereto.

          16.16
Entire Agreement. This Lease, the Exhibits attached to this Lease (which by this
reference are incorporated herein), and the Guaranty are the entire agreement between the parties
respecting the Leased Premises. Except as otherwise provided in any addendum or amendment to this
Lease, Tenant acknowledges that neither Landlord nor Landlord’s agent(s) has made any
representation or warranty as to (i) whether the Leased Premises may be used for Tenant’s intended
use under existing Law or (ii) the suitability of the Leased Premises for the conduct of Tenant’s
business or the condition of any improvements located thereon. Tenant expressly waives all claims
for damage by reason of any statement, representation, warranty, promise or other agreement of
Landlord or Landlord’s agent(s), if any, not contained in this Lease or in any addendum or
amendment hereto. Except as otherwise provided herein, no subsequent

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change or addition to this Lease shall be binding unless in writing and signed by the parties
hereto.

      16.17 Miscellaneous. Should any provision of this Lease prove to be invalid or
illegal, such invalidity or illegality shall in no way affect, impair or invalidate any other
provision hereof, and such remaining provisions shall remain in full force and effect. Time is of
the essence with respect to the performance of every provision of this Lease. The captions used in
this Lease are for convenience only and shall not be considered in the construction or
interpretation of any provision hereof. Any executed copy of this Lease shall be deemed an original
for all purposes. This Lease shall, subject to the provisions as to assignment, apply to and bind
the respective heirs, successors, executors, administrators and assigns of Landlord and Tenant.
This Lease shall be construed and enforced in accordance with the laws of the State of Texas. The
language in all parts of this Lease shall in all cases be construed as a whole according to its
fair meaning, and not strictly for or against either Landlord or Tenant. When the context of this
Lease requires, the neuter gender includes

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the masculine, the feminine, a partnership or corporation or joint venture, and the singular
includes the plural.

          IN
WITNESS WHEREOF, Landlord and Tenant have executed this Lease with the
intent to be legally bound thereby, as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	Landlord	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	NATIONAL WAREHOUSE INVESTMENT

COMPANY, a California limited

partnership
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Witnessed By:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	Holman/Shidler Investment

Corporation, a Hawaii

corporation, general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Its	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Witnessed By:	 	 	 	Tenant	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	VICTOR EQUIPMENT COMPANY, 

a Delaware corporation
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

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	 	DENTON, 
	 

	 	TEXAS

EXHIBIT A

Being all that certain lot, tract, or parcel of land situated in the Eugene Puchalski Survey,
Abstract Number 996, in the City and County of Denton, Texas, being a part of that certain “Fifth
Tract”, conveyed by deed from William Elliott Smith and wife, Mildred K. Smith, to J. Newton
Rayzor, recorded in Volume 418, Page 497, Deed Records of Denton County, Texas, and being more
particularly described as follows:

BEGINNING at an iron rod found for corner in the south line of Farm to Market Road Number 1515, a
public roadway, and in the west line of Interstate Highway No. 35W, a public roadway, the
intersection of said south line of said Farm to Market Road and the centerline of the Gulf Colorado
and Santa Fe Railroad Company right-of-way bears South 88 degrees 30 minutes 00 seconds East,
234.86 feet;

THENCE South 59 degrees 51 minutes 41 seconds East,
75.89 feet with said west line of said I-35W to a railroad
spike found for corner;

THENCE South 19 degrees 02 minutes 27 seconds East,
310.86 feet with said west line of said I-35W to an iron rod found for corner;

THENCE South 02 degrees 51 minutes 36 seconds West, 146.10 feet with said west line of said I-35W
to an iron rod found disturbed and reset for corner in the north line of a spur tract;

THENCE along a curve to the right having a central angle of 48 degrees 24 minutes 54 seconds, a
radius of 380.85 feet, an arc length of 321.82 feet, whose chord
bears South 66 degrees 31 minutes 32 seconds West, 312.33 feet with said north line of said spur to an iron rod found for corner;

THENCE North 88 degrees 23 minutes 48 seconds West, 1229.97 feet with said north line of said spur
tract to an iron rod found for corner in the north line of a proposed extension of said spur tract;

THENCE along the arc of a curve to the left, having a central angle of 25 degrees 19 minutes 34
seconds, a radius of 1019.65 feet, an arc length of 450.71 feet, whose chord

-1-

 

bears South 78 degrees 53 minutes 41 seconds West, 447.05 feet with said north line of said
extension of said spur tract to an iron rod found for corner at a fence corner;

THENCE North 32 degrees 58 minutes 58 seconds West,
707.16 feet with a fence to an iron rod found for corner in
said south line of said Farm to Market Road;

THENCE along the arc of a curve to the right, having a central angle of 38 degrees 54 minutes 50
seconds, a radius of 531.01 feet, an arc length of 360.65 feet, whose chord bears North 72 degrees
02 minutes 42 seconds East, 353.76 feet with said south line of said Farm to Market Road to a wood
right-of-way post found for corner;

THENCE South 88 degrees 30 minutes 00 seconds East, 1843.97 feet with said south line of said Farm
to Market Road to the PLACE OF BEGINNING and containing 30.1144 acres or 1,311,783.3 square feet of
land.

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Exhibit B

Base Monthly Rent

	 	 	 	 	 
	Time Period	 	Monthly Rent Amount
	1st 2-1/2 Years
	 	$	39,000	 
	2nd 2-1/2 Years
	 	$	44,687.50	 
	Next 5 Years
	 	$	50,375	 

 

 

EXHIBIT C

CONTINUING LEASE GUARANTY

          THIS
GUARANTY, made as of June ___, 1988, by PALCO ACQUISITION COMPANY, (“Guarantor”) for the benefit of NATIONAL WAREHOUSE INVESTMENT
COMPANY, a California limited partnership (“Landlord”),

W I T N E S S E T H:

          1. For valuable consideration, receipt of which is acknowledged, and to induce Landlord to
enter into that certain Industrial Real Property Lease of even date herewith (the “Lease”) between
Landlord, as landlord, and Victor Equipment Company, a Delaware corporation (“Tenant”), as tenant,
relating to certain premises commonly known as Airport Road, Denton, Texas, Guarantor hereby
absolutely, unconditionally and irrevocably guarantees to Landlord, and agrees fully to pay,
perform and discharge, as and when payment, performance and discharge are due, all of the
covenants, obligations and liabilities of Tenant under the Lease and all written amendments,
modifications, renewals, extensions, supplements, substitutions and replacements of the Lease (the
“Guaranteed Obligations”). The obligations of Guarantor under this Guaranty shall be absolute,
unconditional and irrevocable and shall continue and remain in full force and effect until all of
the Guaranteed Obligations have been fully paid, performed and discharged.

          2. The obligations of Guarantor under this Guaranty shall not be affected, modified or
impaired by the occurrence of any of the following events, whether or not with notice to, or the
consent of, Guarantor: (a) the waiver, surrender, compromise, settlement, release or termination of
any or all of the Guaranteed Obligations; (b) the failure to give notice to Guarantor of the
occurrence of an event of default under the Guaranteed Obligations; (c) the extension of the time
for the payment, performance or discharge of any or all of the Guaranteed Obligations; (d) the
amendment or modification (whether material or otherwise) of the Lease or the Guaranteed
Obligations in any respect (provided that, except with Landlord’s consent, no such amendment or
modification entered into after Tenant has assigned the Lease to an unaffiliated third party shall
be binding on Landlord to the extent Landlord’s obligations hereunder would be increased thereby);
(e) any failure, omission, delay or lack on the part of Landlord to enforce, assert or exercise any
right, power or remedy conferred on Landlord under the Lease; (f) the voluntary or involuntary
liquidation, dissolution, sale or other disposition of all or substantially all of the assets,
marshalling of assets

	 	 	 

	 

	 	Denton, TX
	 
	-1-

	 	 

 

 

and liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition with creditors or adjustment of debts, or other similar
proceedings affecting Tenant or Guarantor or any of the assets of either of them; (g) the release
or discharge by operation of law of Tenant from the payment, performance or discharge of any or all
of the Guaranteed Obligations; (h) the release or discharge by operation of law of Guarantor from
any or all of the obligations of Guarantor under this Guaranty; (i) the invalidity or
unenforceability of any or all of the Guaranteed Obligations; or (j) any assignment of the Lease
(except as otherwise provided in paragraph 6 hereof) or any subletting of all or any portion of the
leased premises. Guarantor acknowledges that Landlord would not enter into the Lease without this
Guaranty and that Landlord is relying on this Guaranty.

          3. The obligations of Guarantor under this Guaranty are independent of the Guaranteed
Obligations. Guarantor agrees that Landlord shall have the right to proceed against Guarantor
directly and independently of Tenant. A separate action may be brought and prosecuted against
Guarantor whether or not an action is brought against Tenant or Tenant is joined in any such
action. Guarantor authorizes Landlord and Tenant, without notice to, demand of, or consent from
Guarantor and without releasing or affecting Guarantor’s liability under this Guaranty, from time
to time to amend, modify, renew, extend, supplement or replace the Lease or the Guaranteed
Obligations or otherwise change the terms of the Lease or the Guaranteed Obligations (provided
that no such amendment, modification, supplement, extension, replacement or change which is not in
writing, or which is entered into, without Landlord’s consent, after Tenant has assigned the Lease
to an unaffiliated third party, shall be binding on Guarantor to the extent Guarantor’s obligations
hereunder are increased thereby), to take and hold security for the Guaranteed Obligations, and to
enforce, waive, surrender, impair, compromise or release any such security or any or all of the
Guaranteed Obligations or any person or entity liable for any or all of the Guaranteed Obligations.
Guarantor shall be and remain bound under this Guaranty notwithstanding any such act or omission by
Tenant or Landlord. Guarantor waives all rights to require Landlord to proceed against Tenant, to
proceed against or exhaust any security held by Landlord, or to pursue any other remedy in
Landlord’s power. Landlord shall have the right to exercise any right or remedy it may have against
Tenant or any security held by Landlord. Guarantor waives all rights, if any, to the benefit of, or
to direct the application of, any security held by Landlord. Guarantor waives (a) any defense
arising out of any written amendment, modification, renewal, extension or replacement or other
change to the Guaranteed

	 	 	 

	

	 	Denton, TX
	 
	-2-

	 	 

 

 

Obligations, (b) any defense arising out of the absence, impairment or loss of any right of
reimbursement or subrogation or other right or remedy of Guarantor against Tenant or any security
held by Landlord, and (c) any defense arising by reason of any disability or other defense of
Tenant or by reason of the cessation or reduction from any cause whatsoever of the liability of
Tenant other than full payment, performance and discharge of the Guaranteed
Obligations. The cessation or reduction of the liability of Tenant for any reason other than full
payment, performance and discharge of the Guaranteed Obligations shall not release or affect in any
way the liability of Guarantor under this Guaranty.

          4. If Tenant becomes insolvent or is adjudicated bankrupt or files a petition for
reorganization, arrangement, composition or similar relief under any present or future provision of
the Federal Bankruptcy Code, or any other state or federal insolvency law, or if such a petition is
filed against Tenant, or Tenant makes a general assignment for the benefit of creditors, and in any
such proceeding any or all of the Guaranteed Obligations are terminated or rejected or any or all
of the Guaranteed Obligations are modified or abrogated, Guarantor agrees that Guarantor’s
liability hereunder shall not thereby be affected or modified and such liability shall continue in
full force and effect as if no such action or proceeding had occurred. This Guaranty shall continue
to be effective or be reinstated, as the case may be, if any payment of the Guaranteed
Obligations must be returned by Landlord upon the insolvency, bankruptcy or reorganization of
Tenant, Guarantor, or otherwise, as though such payment had not been made.

          5. Guarantor assumes the responsibility for being and keeping Guarantor informed of the
financial condition of Tenant and of all other circumstances bearing upon the risk of failure to
pay, perform or discharge any of the Guaranteed Obligations which diligent inquiry would reveal,
and Guarantor agrees that Landlord has no duty to advise Guarantor of information known to Landlord
regarding such condition or any such circumstance. Guarantor acknowledges that repeated and
successive demands may be made and payments or performance made hereunder in response to such
demands as and when, from time to time, Tenant defaults in the payment, performance or discharge of
the Guaranteed Obligations. Notwithstanding any such payments and performance hereunder, this
Guaranty shall remain in full force and effect and shall apply to any and all subsequent defaults
by Tenant. It is not necessary for Landlord to inquire into the capacity, authority or powers of
Tenant or the partners, directors, officers, employees or agents acting or purporting to act on
behalf of Tenant, and all of

	 	 	 

	

	 	Denton, TX
	 
	-3-

	 	 

 

 

the Guaranteed Obligations made or created in good faith reliance upon the purported exercise of
such powers shall be guaranteed hereunder. Guarantor hereby subordinates all indebtedness of Tenant
to Guarantor now or hereafter held by Guarantor to all indebtedness of Tenant to Landlord.

          6. This Guaranty shall terminate prior to the full payment, performance and discharge of all
of the Guaranteed Obligations if, but only if, (a) without violating any of the terms and
conditions of Section 14.1 of the Lease, all of the Tenant’s rights, title and interests in, to and
under the Lease are assigned to, and assumed by, an assignee whose Average Annual Cash Flow (as
defined in Exhibit A attached hereto) for the three calendar years prior to the calendar year
during which such assignment becomes effective was not less than one hundred ten percent (110%) of
the Average Annual Cash Flow of Tenant and Guarantor, determined on a consolidated basis, during
the period determined as provided on Exhibit A, and (b) Tenant and/or such assignee shall provide
to Landlord reasonably satisfactory evidence that the condition in subparagraph (a) above is
satisfied. Upon satisfaction of the foregoing conditions, Landlord shall promptly execute and
deliver to Guarantor a document reasonably satisfactory to Guarantor confirming the termination of
this Guaranty.

          7. If Tenant and Guarantor fail to pay, perform and discharge, as and when payment,
performance and discharge are due, all of the Guaranteed Obligations, Landlord shall have the
right, but no obligation, and without releasing Tenant or Guarantor from any of the Guaranteed
Obligations, to pay, perform and discharge any or all of the Guaranteed Obligations on behalf of
Tenant and Guarantor. Guarantor shall, on demand, pay to Landlord all sums expended by Landlord in
the payment, performance and discharge of the Guaranteed Obligations, together with interest on all
such sums from the date of expenditure to the date all such sums are paid by Tenant or Guarantor to
Landlord at the maximum annual interest rate allowed by law for business loans (not primarily for
personal, family or household purposes) not exempt from the usury law on such date of expenditure,
or, if there is no such maximum annual interest rate, at the rate of eighteen percent (18%) per
annum. Guarantor waives all presentments, demands for performance, notices of nonperformance,
protests, notices of protest, notices of dishonor and notices of acceptance of this Guaranty.
Guarantor agrees to pay all costs and expenses, including reasonable attorneys’ fees, which are
incurred by Landlord in the enforcement of this Guaranty. If any provision of this Guaranty is held
to be invalid or unenforceable, the validity or enforceability of the other provisions of this
Guaranty shall not be affected. This Guaranty may

	 	 	 

	

	 	Denton, TX
	 
	-4-

	 	 

 

 

not be amended or modified in any respect except by a written instrument signed by Guarantor and
Landlord. As used in this Guaranty, the singular shall include the plural. This Guaranty shall bind
and inure to the benefit of Guarantor and Landlord and their respective transferees, personal
representatives, heirs, successors and assigns. This Guaranty shall be governed by and construed in
accordance with the laws of the State of California. The address of Guarantor is set forth below.

          IN WITNESS WHEREOF, Guarantor has executed this Continuing Lease Guaranty as of the
date first hereinabove written.

	 	 	 	 	 	 	 	 	 

	 	 	PALCO ACQUISITION COMPANY, a	 	 
	 	 	Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	Guarantor’s address:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	101 South Hanley	 	 
	 	 	St. Louis, MO 63105	 	 
	 	 	Attn: Mr. Randy Curran	 	 

	 	 	 

	

	 	Denton, TX
	 
	-5-

	 	 

 

 

Exhibit D

Recording Requested By

And When Recorded Mail To:

Csaplar & Bok

655 Montgomery Street

San Francisco, CA 94111

Attn: Lewis A. Burleigh, Esq.

MEMORANDUM OF LEASE

          THIS MEMORANDUM OF LEASE, dated as of June 6, 1988, by and between NATIONAL WAREHOUSE
INVESTMENT COMPANY, a California limited partnership whose address is c/o The Shidler Group,
Four Embarcadero Center, 31st Floor, San Francisco, CA 94111 (“Landlord”), and VICTOR EQUIPMENT
COMPANY, a Delaware corporation whose address is 101 South Hanley, St. Louis, MO 63105, Attn:
Mr. Randy Curran (“Tenant”),

W I T N E S S E T H:

          1. That by this Memorandum of Lease, and on the terms and conditions set forth in that
certain Lease dated as of June 6, 1988, executed by and between the parties hereto, all of which
terms and conditions are hereby made a part hereof as fully and completely as if herein
specifically set out in full, Landlord has leased and does hereby lease to Tenant and Tenant has
leased and does hereby lease from Landlord the real property described in Exhibit A attached hereto
and incorporated herein by this reference.

          2. The Lease shall be for a term commencing on June 6, 1988, and ending July 31, 1993. Tenant
has the option to extend the term for three (3) additional periods of five (5) years each in

-1-

 

three (3) additional periods of five (5) years each in accordance with the provisions of paragraph
16.10 of said Lease.

          IN WITNESS WHEREOF, this Memorandum of Lease has been executed the day and year first
above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	Landlord	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Witnessed By	 	 	 	NATIONAL WAREHOUSE INVESTMENT COMPANY, a California limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	Holman/Shidler Investment Corporation, a Hawaii corporation, its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Its	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Tenant	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Witnessed By:	 	 	 	VICTOR EQUIPMENT COMPANY, a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

-2-

 

DENTON,

TEXAS    

EXHIBIT A

Being all that certain lot, tract, or parcel of land situated in the Eugene Puchalski Survey,
Abstract Number 996, in the City and County of Denton, Texas, being a part of that certain “Fifth
Tract”, conveyed by deed from William Elliott Smith and wife, Mildred K. Smith, to J. Newton
Rayzor, recorded in Volume 418, Page 497, Deed Records of Denton County, Texas, and being more
particularly described as follows:

BEGINNING at an iron rod found for corner in the south line of Farm to Market Road Number 1515, a
public roadway, and in the west line of Interstate Highway No. 35W, a public roadway, the
intersection of said south line of said Farm to Market Road and the centerline of the Gulf Colorado
and Santa Fe Railroad Company right-of-way bears South 88 degrees 30 minutes 00 seconds East,
234.86 feet;

THENCE South 59 degrees 51 minutes 41 seconds East,
75.89 feet with said west line of said I-35W to a railroad
spike found for corner;

THENCE South 19 degrees 02 minutes 27 seconds East,
310.86 feet with said west line of said I-35W to an iron rod
found for corner;

THENCE South 02 degrees 51 minutes 36 seconds West, 146.10 feet with said west line of said I-35W
to an iron rod found disturbed and reset for corner in the north line of a spur tract;

THENCE along a curve to the right having a central angle of 48 degrees 24 minutes 54 seconds, a
radius of 380.85 feet, an arc length of 321.82 feet, whose chord bears South 66 degrees 31 minutes
32 seconds West, 312.33 feet with said north line of said spur to an iron rod found for corner;

THENCE North 88 degrees 23 minutes 48 seconds West, 1229.97 feet with said north line of said
spur tract to an iron rod found for corner in the north line of a proposed extension of said
spur tract;

THENCE along the arc of a curve to the left, having a central angle of 25 degrees 19 minutes 34
seconds, a radius of 1019.65 feet, an arc length of 450.71 feet, whose chord

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bears South 78 degrees 53 minutes 41 seconds West, 447.05 feet with said north line of said
extension of said spur tract to an iron rod found for corner at a fence corner;

THENCE North 32 degrees 58 minutes 58 seconds West,
707.16 feet with a fence to an iron rod found for corner in
said south line of said Farm to Market Road;

THENCE along the arc of a curve to the right, having a central angle of 38 degrees 54 minutes 50
seconds, a radius of 531.01 feet, an arc length of 360.65 feet, whose chord bears North 72 degrees
02 minutes 42 seconds East, 353.76 feet with said south line of said Farm to Market Road to a wood
right-of-way post found for corner;

THENCE South 88 degrees 30 minutes 00 seconds East, 1843.97 feet with said south line of said Farm
to Market Road to the PLACE OF BEGINNING and containing 30.1144 acres or 1,311,783.3 square feet of
land.

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EXHIBIT I

(Affidavit)

CERTIFICATE OF NON-FOREIGN STATUS

          Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property
interest must withhold tax if the transferor is a foreign person. To inform the transferee that
withholding of tax is not required upon the disposition of U.S. real property interest by
VICTOR EQUIPMENT COMPANY, a Delaware corporation (“Seller”), the undersigned hereby
certifies the following on behalf of Seller:

          1. Seller is not a “foreign person” within the
meaning of section 1445(f) (3) of the Internal Revenue Code
of 1986, as amended, and the Income Tax Regulations
promulgated thereunder;

          2. Seller’s U.S. employer identification number
is 94-0955680; and

          3. Seller’s office address is 101 South Hanley
Road, St. Louis, MO 63105.

          Seller understands that this certification may be disclosed to the Internal Revenue Service by
the transferee and that any false statement contained herein could be punished by fine,
imprisonment, or both.

          Under penalty of perjury I declare that I have examined this certificate and to the best of my
knowledge and belief it is true, correct and complete, and I further declare that I have authority
to sign this document on behalf of Seller.

          Dated:
June ___, 1988.

	 	 	 	 	 	 	 	 	 

	 	 	VICTOR EQUIPMENT
COMPANY,
 a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Its	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

EXHIBIT J

Recording Requested By 
and When
Recorded Mail To:

Pillsbury, Madison & Sutro
 225 Bush Street

Post Office Box 7880 
San Francisco, CA 94120

Attn: Glenn Q. Snyder, Esq.

TERMINATION OF OPTION

          FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, VICTOR
EQUIPMENT COMPANY, a Delaware corporation, Optionee under that certain Memorandum of
Option dated as of June 6, 1988 and recorded in Book ___,
Page ___, of the Official Records of Denton County, State of
Texas, does hereby terminate the option evidenced by said Memorandum of Option and does hereby
remise, release, and forever quitclaim to National Warehouse Investment Company, a California
limited partnership, all of the real property described in Exhibit A hereto.

          This Termination of Option is given to relinquish and release any right, title, and interest
Optionee may have by virtue of the option evidenced by said Memorandum of Option.

          Executed on                     , 19___.

	 	 	 	 	 	 	 	 	 

	 	 	VICTOR EQUIPMENT COMPANY, a Delaware

corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Its	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Denton, TX

 

 

DENTON,

TEXAS    

EXHIBIT A

Being all that certain lot, tract, or parcel of land situated in the Eugene Puchalski Survey,
Abstract Number 996, in the City and County of Denton, Texas, being a part of that certain “Fifth
Tract”, conveyed by deed from William Elliott Smith and wife, Mildred K. Smith, to J. Newton
Rayzor, recorded in Volume 418, Page 497, Deed Records of Denton County, Texas, and being more
particularly described as follows:

BEGINNING at an iron rod found for corner in the south line of Farm to Market Road Number 1515, a
public roadway, and in the west line of Interstate Highway No. 35W, a public roadway, the
intersection of said south line of said Farm to Market Road and the centerline of the Gulf Colorado
and Santa Fe Railroad Company right-of-way bears South 88 degrees 30 minutes 00 seconds East,
234.86 feet;

THENCE South 59 degrees 51 minutes 41 seconds East,
75.89 feet with said west line of said I-35W to a railroad
spike found for corner;

THENCE South 19 degrees 02 minutes 27 seconds East,
310.86 feet with said west line of said I-35W to an iron rod
found for corner;

THENCE South 02 degrees 51 minutes 36 seconds West, 146.10 feet with said west line of said I-35W
to an iron rod found disturbed and reset for corner in the north line of a spur tract;

THENCE along a curve to the right having a central angle of 48 degrees 24 minutes 54 seconds, a
radius of 380.85 feet, an arc length of 321.82 feet, whose chord bears South 66 degrees 31 minutes
32 seconds West, 312.33 feet with said north line of said spur to an iron rod found for corner;

THENCE North 88 degrees 23 minutes 48 seconds West, 1229.97 feet with said north line of said spur
tract to an iron rod found for corner in the north line of a proposed
extension of said spur tract;

THENCE along the arc of a curve to the left, having a central angle of 25 degrees 19 minutes 34
seconds, a radius of 1019.65 feet, an arc length of 450.71 feet, whose chord

-1-

 

bears South 78 degrees 53 minutes 41 seconds West, 447.05 feet with said north line of said
extension of said spur tract to an iron rod found for corner at a fence corner;

THENCE North 32 degrees 58 minutes 58 seconds West,
707.16 feet with a fence to an iron rod found for corner in
said south line of said Farm to Market Road;

THENCE along the arc of a curve to the right, having a central angle of 38 degrees 54 minutes 50
seconds, a radius of 531.01 feet, an arc length of 360.65 feet, whose chord bears North 72 degrees
02 minutes 42 seconds East, 353.76 feet with said south line of said Farm to Market Road to a wood
right-of-way post found for corner;

THENCE South 88 degrees 30 minutes 00 seconds East, 1843.97 feet with said south line of said Farm
to Market Road to the PLACE OF BEGINNING and containing 30.1144 acres or 1,311,783.3 square feet of
land.

-2-

 

EXHIBIT K

PROMISSORY NOTE

	 	 	 

	$3,268,785

	 	June 6, 1988
	 

	 	San Francisco, California

          FOR VALUE RECEIVED, NATIONAL WAREHOUSE INVESTMENT COMPANY, a California limited
partnership (“Maker”), with offices at 733 Bishop Street, Honolulu, Hawaii, promises to pay to
VICTOR EQUIPMENT COMPANY, a Delaware corporation
(“Payee”), the principal sum of three million two hundred sixty-eight thousand seven hundred
eighty-five dollars
($3,268,785) in lawful money of the United States of America, together with interest on the unpaid
balance hereof at a rate of fourteen and thirty-two hundredths percent
(14.32%) per annum. On August 8, 1988, the entire amount of principal outstanding shall be due and
payable in full together with all unpaid accrued interest.

          This Note has been made and given pursuant to the provisions of that certain Real Property
Purchase and Sale Agreement between National Warehouse Investment Company, a California limited
partnership, as buyer, and Payee, as seller dated as of June 3, 1988 (the “Purchase Agreement”),
the buyer’s rights and obligations under which have been assigned to Maker, and this Note is
subject to the terms of the Purchase Agreement. Payments of principal and interest shall be made
to Payee in accordance with the terms of the Purchase Agreement.

          This Note may be prepaid without penalty.

          This Note may be cancelled in accordance with section 3(c) of the Omnibus Agreement (as
defined in the Purchase Agreement), and is subject to reduction for credits due Buyer (as defined
in the Purchase Agreement), under the Purchase Agreement.

          In the event Maker fails to pay any amount as and when due hereunder, Payee shall be entitled
to receive from Maker all costs of collection, including reasonable attorneys’ fees.

Denton, TX

-1-

 

          This Note shall be governed by and construed in accordance with the laws of the State of
California.

	 	 	 	 	 	 	 
	 	 	NATIONAL WAREHOUSE
INVESTMENT COMPANY, a

California limited partnership
	 
	 	 	 	 	 	 
	 	 	By	 	HOLMAN/SHIDLER INVESTMENT CORPORATION, a

Hawaii corporation, General Partner

	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Its	 	 
	 

	 	 	 	 	 	 

Denton, TX

-2-

 

EXHIBIT L

Recording Requested By

and When Recorded Mail To:

Csaplar & Bok

655 Montgomery Street

San Francisco, CA 94111

Attn: Lewis A. Burleigh, Esq.

MEMORANDUM
OF OPTION

          This Memorandum of Option is executed in connection with that certain Real Property
Purchase and Sale Agreement (the “Agreement”), dated as of June 3, 1988, between National Warehouse
Investment Company, a California limited partnership (“Optionor”), and Victor Equipment Company, a
Delaware corporation (“Optionee”) relating to the real property described in Exhibit A hereto (the
“Property”).

          Optionor hereby grants to Optionee the exclusive right to purchase the Property on the terms
and conditions set forth in the Agreement. This Option shall terminate on the terms set forth in
the Agreement; however, in no event shall the term of this Option extend beyond September 15, 1988.

          Dated as of                     , 1988.

	 	 	 	 	 	 	 	 	 	 	 

	 	 	NATIONAL WAREHOUSE INVESTMENT COMPANY, a

California limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By	 	Holman/Shidler Investment Corporation, a

Hawaii corporation, its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

 

 

DENTON,

TEXAS     

EXHIBIT A

Being all that certain lot, tract, or parcel of land situated in the Eugene Puchalski Survey,
Abstract Number 996, in the City and County of Denton, Texas, being a part of that certain “Fifth
Tract”, conveyed by deed from William Elliott Smith and wife, Mildred K. Smith, to J. Newton
Rayzor, recorded in Volume 418, Page 497, Deed Records of Denton County, Texas, and being more
particularly described as follows:

BEGINNING at an iron rod found for corner in the south line of Farm to Market Road Number 1515, a
public roadway, and in the west line of Interstate Highway No. 35W, a public roadway, the
intersection of said south line of said Farm to Market Road and the centerline of the Gulf Colorado
and Santa Fe Railroad Company right-of-way bears South 88 degrees 30 minutes 00 seconds East,
234.86 feet;

THENCE South 59 degrees 51 minutes 41 seconds East,
75.89 feet with said west line of said I-35W to a railroad
spike found for corner;

THENCE South 19 degrees 02 minutes 27 seconds East,
310.86 feet with said west line of said I-35W to an iron rod
found for corner;

THENCE South 02 degrees 51 minutes 36 seconds West, 146.10 feet with said west line of said I-35W
to an iron rod found disturbed and reset for corner in the north line of a spur tract;

THENCE along a curve to the right having a central angle of 48 degrees 24 minutes 54 seconds, a
radius of 380.85 feet, an arc length of 321.82 feet, whose chord
bears South 66 degrees 31 minutes 32 seconds West, 312.33 feet with said north line of said spur to an iron rod found for corner;

THENCE North 88 degrees 23 minutes 48 seconds West, 1229.97 feet with said north line of said
spur tract to an iron rod found for corner in the north line of a proposed extension of said
spur tract;

THENCE along the arc of a curve to the left, having a central angle of 25 degrees 19 minutes 34
seconds, a radius of 1019.65 feet, an arc length of 450.71 feet, whose chord

-1-

 

bears
South 78 degrees 53 minutes 41 seconds West, 447.05 feet with said north line of said
extension of said spur tract to an iron rod found for corner at a fence corner;

THENCE North 32 degrees 58 minutes 58 seconds West,
707.16 feet with a fence to an iron rod found for corner in
said south line of said Farm to Market Road;

THENCE along the arc of a curve to the right, having a central angle of 38 degrees 54 minutes 50
seconds, a radius of 531.01 feet, an arc length of 360.65 feet, whose chord bears North 72 degrees
02 minutes 42 seconds East, 353.76 feet with said south line of said Farm to Market Road to a wood
right-of-way post found for corner;

THENCE South 88 degrees 30 minutes 00 seconds East, 1843.97 feet with said south line of said Farm
to Market Road to the PLACE OF BEGINNING and containing 30.1144 acres or 1,311,783.3 square feet of
land.

-2-

 

EXHIBIT M

Recording Requested by:

When Recorded Return to:

Csaplar & Bok

655 Montgomery Street

San Francisco, CA 94111

Attn: Lewis A. Burleigh, Esq.

LIMITED
WARRANTY DEED

          STATE OF Texas, COUNTY OF Denton.

          THIS INDENTURE, made as of this 6th day of June in the year one thousand nine hundred
eighty-eight, between NATIONAL WAREHOUSE INVESTMENT COMPANY, a limited partnership, duly
organized and existing under the laws of the State of California, as party or parties of the first
part, hereinafter called Grantor, and VICTOR EQUIPMENT COMPANY, a Delaware corporation, as
party or parties of the second part, hereinafter called Grantee (the words “Grantor” and “Grantee”
to include their respective heirs, successors and assigns where the context requires or permits),

          WITNESSETH: Grantor, for and in consideration of the sum of ten dollars ($10) and other good
and valuable consideration in hand paid at and before the sealing and delivery of these presents,
the receipt whereof is hereby acknowledged, has granted, bargained, sold, aliened, conveyed and
confirmed, and by these presents does grant, bargain, sell, alien, convey and confirm unto the said
Grantee,

          SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY THIS REFERENCE.

          TO HAVE AND TO HOLD the said tract or parcel of land, with all and singular the rights,
members and appurtenances thereof, to the same being, belonging or in anywise appertaining, to the
only proper use, benefit and behoof of the said Grantee forever in FEE SIMPLE.

          AND Grantor hereby covenants with said Grantee that Grantor is lawfully seized of said land in
fee simple; that Grantor has good right and lawful authority to sell and convey said land; that
Grantor hereby fully warrants the title to said land and will defend the same against the lawful
claims of all persons claiming by, through or under Grantor; and that said land is free of all
encumbrances, except for the following matters: taxes and assessments for the current year, all
rights-of-way, easements and

-1-

 

servitudes for roads, streets, drainage facilities, pipelines, electrical
transmission lines, telephone lines and other similar servitudes on, under or above the
property of record or which may physically exist, and all other matters of record.

          IN WITNESS WHEREOF, Grantor has executed this deed as of the day
and year above written.

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	NATIONAL WAREHOUSE INVESTMENT COMPANY, a

California limited partnership
	 	 	 	 	 		
	     Signed, sealed
and delivered in
presence of:
	 	By
	 	Holman/Shidler Investment

Corporation, a Hawaii

corporation, its general

partner

	 
	 

	 	 	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Unofficial Witness
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	ATTEST:	 	 	 	 	 	 
	 

Unofficial Witness

	 	 	 	 	 	 	 	 

	 	 

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DENTON,

TEXAS     

EXHIBIT A

Being all that certain lot, tract, or parcel of land situated in the Eugene Puchalski Survey,
Abstract Number 996, in the City and County of Denton, Texas, being a part of that certain “Fifth
Tract”, conveyed by deed from William Elliott Smith and wife, Mildred K. Smith, to J. Newton
Rayzor, recorded in Volume 418, Page 497, Deed Records of Denton County, Texas, and being more
particularly described as follows:

BEGINNING at an iron rod found for corner in the south line of Farm to Market Road Number 1515, a
public roadway, and in the west line of Interstate Highway No. 35W, a public roadway, the
intersection of said south line of said Farm to Market Road and the centerline of the Gulf Colorado
and Santa Fe Railroad Company right-of-way bears South 88 degrees 30 minutes 00 seconds East,
234.86 feet;

THENCE South 59 degrees 51 minutes 41 seconds East,
75.89 feet with said west line of said I-35W to a railroad
spike found for corner;

THENCE South 19 degrees 02 minutes 27 seconds East,
310.86 feet with said west line of said I-35W to an iron rod
found for corner;

THENCE South 02 degrees 51 minutes 36 seconds West, 146.10 feet with said west line of said I-35W
to an iron rod found disturbed and reset for corner in the north line of a spur tract;

THENCE along a curve to the right having a central angle of 48 degrees 24 minutes 54 seconds, a
radius of 380.85 feet, an arc length of 321.82 feet, whose chord bears South 66 degrees 31 minutes
32 seconds West, 312.33 feet with said north line of said spur to an iron rod found for corner;

THENCE North 88 degrees 23 minutes 48 seconds West, 1229.97 feet with said north line of said
spur tract to an iron rod found for corner in the north line of a proposed extension of said
spur tract;

THENCE along the arc of a curve to the left, having a central angle of 25 degrees 19 minutes 34
seconds, a radius of 1019.65 feet, an arc length of 450.71 feet, whose chord

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bears South 78 degrees 53 minutes 41 seconds West, 447.05 feet with said north line of said
extension of said spur tract to an iron rod found for corner at a fence corner;

THENCE North 32 degrees 58 minutes 58 seconds West,
707.16 feet with a fence to an iron rod found for corner in
said south line of said Farm to Market Road;

THENCE along the arc of a curve to the right, having a central angle of 38 degrees 54 minutes 50
seconds, a radius of 531.01 feet, an arc length of 360.65 feet, whose chord bears North 72 degrees
02 minutes 42 seconds East, 353.76 feet with said south line of said Farm to Market Road to a wood
right-of-way post found for corner;

THENCE South 88 degrees 30 minutes 00 seconds East, 1843.97 feet with said south line of said Farm
to Market Road to the PLACE OF BEGINNING and containing 30.1144 acres or 1,311,783.3 square feet of
land.

-2-exv10w12

Exhibit 10.12

FIRST
AMENDMENT TO AMENDED AND RESTATED

INDUSTRIAL REAL PROPERTY LEASE

     THIS FIRST AMENDMENT TO AMENDED AND RESTATED INDUSTRIAL REAL
PROPERTY LEASE (the “First Amendment”) made as of August 1, 2007, by and between 2800 AIRPORT ROAD
LIMITED PARTNERSHIP, a Texas limited partnership,
(“Landlord”), whose address is care of First
American Realty, Inc., 100 Central Street, P.O. Box 646, Worcester, Massachusetts 01613-0646,
successor in interest to NATIONAL WAREHOUSE INVESTMENT COMPANY
(the “Original Landlord”), and
VICTOR EQUIPMENT COMPANY, a Delaware corporation (
“Tenant”), whose address is 16052 Swingley Ridge
Road, St. Louis, Missouri 63017.

W I T N E S S E T H:

     WHEREAS, the Original Landlord and Tenant entered into that Amended and Restated Industrial Real
Property Lease dated as of August 1l, 1988, (the “Lease”) covering the entire building (consisting
of approximately 235,419 square feet of rentable space) located at
2800 Airport Road, Denton,
Texas, together with the parcels on which the building is located;

     WHEREAS,
the Lease is evidenced by a Memorandum of Lease filed in the Official records of Denton,
Texas on June 7, 1988 in Volume 2390, Page 240;

     WHEREAS, the property leased to Tenant pursuant to the Lease was purchased by Landlord as of
December 7, 2004 and Landlord is now the Landlord under the Lease;

     WHEREAS, Tenant extended the Lease Term in accordance with the applicable provisions of the Lease
for an initial five (5) year Extension Period ending on June 30, 2008;

     WHEREAS, Landlord and Tenant have agreed to (a) provide for a second extension period of seven (7)
years commencing as July 1, 2008 at an agreed-upon Base Monthly Rent; (b) provide for two (2)
additional five (5) year Extension Periods under the Lease and (c) to make certain other revisions
to the Lease;

     NOW, THEREFORE, in consideration of the agreements contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant
agree as follows:

     1. Landlord_Party.
Tenant acknowledges and agrees that as of December 7, 2004 all
references to Landlord in the Lease refer to 2800 Airport Road Limited Partnership, a Texas limited
partnership, whose address is care of First American Realty, Inc.,
100 Central Street, P.O. Box 646,
Worcester, Massachusetts 01613-0646.

     2. Notice Addresses. It is acknowledged and agreed that the addresses of Landlord and
Tenant for the giving of notices pursuant to Section 16.7 of the
Lease shall be, until a further
change in address by written notice of a party, as follows:

 

 

	 	 	 

	Landlord:

	 	2800 Airport Road Limited Partnership

c/o First American Realty, Inc.

100 Central Street, P.O. Box 646

Worcester, MA 01613-0646

[Phone: (508) 798-8844]

[Fax: (508) 756-4080]
	 
	 	 
	Tenant:

	 	Victor Equipment Company

c/o Thermadyne Holdings Corporation

Attn: General Counsel

16052 Swingley Ridge Road, Suite 300

St. Louis, MO 63017

[Phone (636) 728-3133]

[Fax: (636) 728-3010]

     3. Exercise
of Second Extension Period. Tenant hereby irrevocably exercises its option
to extend the Lease Term for the Second Extension Period and Landlord acknowledges that the Lease
Term is hereby extended for the Second Extension Period.

     4. Amendment of Certain Lease Provisions. The Lease is amended as follows:

          (a) Section 1.1(c) of the Lease is amended to read in its entirety as follows:

     “CPI
Adjustment Date. The term “CPI Adjustment Date” shall mean the following dates: (a)
that date 121 months after the first day of the first full calendar month following the
Commencement Date; (b) the first day of the First Extension Period; (c) the first day of the Third
Extension Period; and (d) the first day of the Fourth Extension
Period.”

          (b) The following is added to the end of Section 3.1 of the lease:

“Notwithstanding the foregoing, the Landlord and the Tenant agree that
the Base Monthly Rent during the Second Extension Period shall be
$87,105.00 per month.”

          (c) The
“first sentence of Section 16.10 is hereby amended to read in its entirety as follows:

“Provided there exists no uncured default by Tenant under this Lease, Tenant shall have the option
to extend the Lease as follows: (a) for an initial extension period of five (5) years commencing on
July 1, 2003 and ending on June 30, 2008 (the “First
Extension Period”); (b) for a second
extension period of seven (7) years commencing on July 1, 2008 and ending on June 30, 2015 (the
“Second Extension Period”); (c) a third extension period of five (5) years commencing on
July 1, 2015 and ending on June 30, 2020 (the “Third Extension Period”); and (d) a fourth
extension period commencing on July 1, 2020 and ending on June 30,

2

 

2025 (the “Fourth” Extension Period”) (the First Extension Period, the Second Extension
Period, the Third Extension Period and the Fourth Extension Period are each referred to herein as
an “Extension Period”).”

          (d) Section 16.11(a) of the Lease is hereby replaced in its entirety by inserting in its place the
following Section 16.11(a) through (c):

     “(a) Effective
on each CPI Adjustment Date except for that CPI Adjustment Date which is the First
day of the Third Extension Period, the Base Monthly Rent shall be the
sum of (i) the Base Monthly
Rent for the immediately preceding month payable under paragraph 3.1 hereof plus (ii) the product
obtained by multiplying such Base Monthly Rent by the percentage increase in the Consumer Price
Index measured from the last month for which the Consumer Price Index is published immediately
preceding the month ending five (5) years prior to such CPI Adjustment Date to the last month for
which the Consumer Price Index is published immediately preceding the CPI Adjustment Date in
question.

     (b) Effective on the CPI Adjustment Date which is the first day of the Third Extension Period, the
Base Monthly Rent shall be the sum of (i) the Base Monthly Rent for the immediately preceding month
payable under paragraph 3.1 hereof plus (ii) the product obtained by multiplying such Base Monthly
Rent by the percentage increase in the Consumer Price Index measured
from the last month for which
the Consumer Price Index is published immediately preceding the commencement of the Second
Extension Period to the last month for which the Consumer Price Index is published immediately
preceding the first day of the Third Extension Period.

     (c)
Notwithstanding subparagraphs (a) and (b) above, in no event shall the Base Monthly Rent (i)
after the CPI Adjustment Date applicable to the First Extension Period be less than one hundred
twenty percent (120%) nor more than one hundred twenty-five percent (125%) of the Base Monthly Rent
for the month immediately preceding each such CPI Adjustment Date, (ii) with respect to the CPI
Adjustment Date applicable to the Third Extension Period only, in no event shall the Base Monthly
Rent be less than one hundred twenty-one percent (121%) nor more than
one hundred twenty-eight
percent (128%) of the Base Monthly Rent for the month immediately
preceding such CPI Adjustment
Date and, (iii) with respect to the Fourth Extension Period only, in no event shall the Monthly Base
Rent be less than one hundred fifteen percent (115%) nor more than one hundred twenty percent (120%)
of the Base Monthly Rental for the month immediately preceding such
CPI Adjustment Date.”

     5. Guarantor’s Consent_and Affirmation. Thermadyne Holdings Corporation hereby consents to
the foregoing and affirms that it is the guarantor of the Lease, as amended hereby, pursuant to an
Amended and Restated Continuing Lease guaranty of Palco Acquisition Company dated as of August 11,
1988 as successor-in-interest to Palco Acquisition Company.

3

 

     6. Authority
of Parties. By executing this First Amendment, Landlord and Tenant represent to each
other that: (i) it is authorized to enter into, execute and deliver this First Amendment and
perform its obligations hereunder; (ii) this First Amendment is binding and enforceable in
accordance with its terms; (iii) the person signing on its
behalf is duly Authorized to execute
this First Amendment and (iv) no other signatures or approvals are necessary in order to make all
of its representations contained in this section true and correct

     7. Capitalized Terms. All capitalized terms not otherwise defined herein shall have the
same meanings set forth in the Lease.

     8. Entire
Agreement. The Lease, as hereby amended, shall remain in full force and effect
pursuant to its terms and provisions as set forth herein.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

4

 

     IN WITNESS WHEREOF, each of the parties hereto has caused this First Amendment to Amended and
Restated Industrial Real Property Lease to be executed by its duly authorized representative as a
sealed instrument as of the day and year first above written.

	 	 	 	 	 
	 	2800 AIRPORT ROAD LIMITED PARTNERSHIP,

a Texas limited partnership

 	 
	 	By:  	2800
AIRPORT ROAD GP, LLC,
 	 
	 	 	Its General Partner 	 
	 
	 	By:  	FIRST
AMERICAN REALTY, INC.,
 	 
	 	 	Its Manager 	 
	 
	 	By:  	/s/ Philip O. Shwachman
 	 
	 	 	Philip O. Shwachman, 	 
	 	 	President and Treasurer 	 

	 	 	 	 	 
	 	VICTOR EQUIPMENT COMPANY,

a Delaware corporation
 	 
	 
	 	By:  	/s/ Paul D. Melnuk
 	 
	 	 	Paul D. Melnuk 	 
	 	 	Chief Executive Officer 	 
	 
	 	THERMADYNE HOLDINGS

CORPORATION, a Delaware corporation

 	 
	 	By:  	/s/ Paul D. Melnuk
 	 
	 	 	Paul D. Melnuk 	 
	 	 	Chairman and Chief Executive Officer 	 

5

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