Document:

exv10w13

 

Exhibit 10.13

OFFICE LEASE

BETWEEN

JL VENTURES LLC, HARKONNEN ACQUISITIONS,

L METRO LLC, AND BELLO LLC

KNOWN AS MBP CO-TENANCY

(“LANDLORD”)

AND ZARS, INC.

(“TENANT”)

DATE
OF LEASE:  7/18, 2006

BUILDING D

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	1.

	 	DEFINITIONS
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	LEASE GRANT
	 	 	4	 
	 
	 	 	 	 	 	 
	3.

	 	ADJUSTMENT OF COMMENCEMENT DATE/POSSESSION
	 	 	4	 
	 
	 	 	 	 	 	 
	4.

	 	USE
	 	 	5	 
	 
	 	 	 	 	 	 
	5.

	 	BASE RENT
	 	 	6	 
	 
	 	 	 	 	 	 
	6.

	 	SECURITY DEPOSIT
	 	 	7	 
	 
	 	 	 	 	 	 
	7.

	 	SERVICES TO BE FURNISHED BY LANDLORD
	 	 	7	 
	 
	 	 	 	 	 	 
	8.

	 	LEASEHOLD IMPROVEMENTS/TENANT’S PROPERTY
	 	 	9	 
	 
	 	 	 	 	 	 
	9.

	 	SIGNAGE
	 	 	9	 
	 
	 	 	 	 	 	 
	10.

	 	REPAIRS AND ALTERATIONS BY TENANT
	 	 	9	 
	 
	 	 	 	 	 	 
	11.

	 	USE OF ELECTRICAL SERVICES BY TENANT
	 	 	10	 
	 
	 	 	 	 	 	 
	12.

	 	ENTRY BY LANDLORD
	 	 	11	 
	 
	 	 	 	 	 	 
	13.

	 	ASSIGNMENT AND SUBLETTING
	 	 	11	 
	 
	 	 	 	 	 	 
	14.

	 	MECHANIC’S LIENS
	 	 	12	 
	 
	 	 	 	 	 	 
	15.

	 	INSURANCE
	 	 	13	 
	 
	 	 	 	 	 	 
	16.

	 	INDEMNITY
	 	 	15	 
	 
	 	 	 	 	 	 
	17.

	 	DAMAGES FROM CERTAIN CAUSES
	 	 	15	 
	 
	 	 	 	 	 	 
	18.

	 	CASUALTY DAMAGE
	 	 	15	 
	 
	 	 	 	 	 	 
	19.

	 	CONDEMNATION
	 	 	16	 
	 
	 	 	 	 	 	 
	20.

	 	HAZARDOUS SUBSTANCES
	 	 	16	 
	 
	 	 	 	 	 	 
	21.

	 	AMERICANS WITH DISABILITIES ACT
	 	 	17	 
	 
	 	 	 	 	 	 
	22.

	 	EVENTS OF DEFAULT
	 	 	18	 
	 
	 	 	 	 	 	 
	23.

	 	REMEDIES
	 	 	19	 
	 
	 	 	 	 	 	 
	24.

	 	NO WAIVER
	 	 	21	 
	 
	 	 	 	 	 	 
	25.

	 	PEACEFUL ENJOYMENT
	 	 	21	 
	 
	 	 	 	 	 	 
	26.

	 	SUBSTITUTION. INTENTIONALLY OMITTED
	 	 	21	 
	 
	 	 	 	 	 	 
	27.

	 	HOLDING OVER
	 	 	21	 
	 
	 	 	 	 	 	 
	28.

	 	SUBORDINATION MORTGAGE/ESTOPPEL CERTIFICATE
	 	 	22	 
	 
	 	 	 	 	 	 
	29.

	 	NOTICE
	 	 	23	 
	 
	 	 	 	 	 	 
	30.

	 	LANDLORD’S LIEN
	 	 	23	 
	 
	 	 	 	 	 	 
	31.

	 	SURRENDER OF PREMISES
	 	 	23	 
	 
	 	 	 	 	 	 
	32.

	 	RIGHTS RESERVED TO LANDLORD
	 	 	23	 

 i.

 

 

Table of Contents

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	33.

	 	MISCELLANEOUS
	 	 	24	 
	 
	 	 	 	 	 	 
	34.

	 	ENTIRE AGREEMENT
	 	 	26	 
	 
	 	 	 	 	 	 
	35.

	 	STRUCTURAL OR LATENT DEFECTS
	 	 	26	 
	 
	 	 	 	 	 	 
	36.

	 	LIMITATION OF LIABILITY
	 	 	26	 

	 	 	 
	Exhibit A-1 — Outline and Location of Premises

	 	 
	 
	 	 
	Exhibit B-1 — Rules and Regulations
	 	 
	 
	 	 
	Exhibit C-1 — Payment of Basic Costs
	 	 
	 
	 	 
	Exhibit D-1 — Work Letter
	 	 
	 
	 	 
	Exhibit E-1 — Additional Provisions (if required)
	 	 
	 
	 	 
	Exhibit F-1— Commencement Letter (Sample)
	 	 

 ii.

 

 

OFFICE LEASE AGREEMENT

This
Office Lease Agreement (the “Lease”), made and
entered into on this 18th day of July, 2006, between JL Ventures LLC, Harkonnen Acquisitions, L Metro LLC, and Bello LLC, each an Alaska
limited liability company, collectively known as MBP Co-Tenancy (“Landlord”) and ZARS, Inc., a Utah
corporation (“Tenant”).

W I T N E S S E T H:

1. Definitions. The following are definitions of some of the defined terms used in this Lease.
The definitions of other defined terms are found throughout this Lease.

A. “Additional Rent” shall mean Tenant’s Pro Rata Share of Basic Costs (hereinafter defined)
and any other sums (exclusive of Base Rent) that are required to be paid to Landlord by
Tenant hereunder, which sums are deemed to be Additional Rent under this Lease. Additional
Rent and Base Rent are sometimes collectively referred to herein as “Rent.”

B. “Approximate Rentable Area in the Building” is approximately 30,389 square feet.

C. “Approximate Rentable Area in the Premises” shall mean the area contained within the
demising walls of the Premises and any other area designated for the exclusive use of Tenant
plus an allocation of the Tenant’s pro rata share of the square footage of the “Common
Areas” and the “Service Areas” (as defined below). For purposes of the Lease it is agreed
and stipulated by both Landlord and Tenant that the Approximate Rentable Area in the
Premises is approximately 11,723 square feet.

D. “Base Rent” Base Rent will be paid according to the following schedule, subject to the
provisions of Section 5 hereof. For the purposes of this
Section 1.D., “Lease Year” shall
mean the twelve (12) month period commencing on the Commencement Date, and on each
anniversary of the Commencement Date.

	 	 	 	 	 	 	 	 	 
	 	 	ANNUAL BASE RENT PER	 	 	Monthly Installments Of	 
	Period	 	RENTABLE SQ FT	 	 	Base Rent	 
	Month 1-12
	 	$	14.50	 	 	$	9,062.50	 
	Month 13-24
	 	$	15.00	 	 	$	14,653.75	 
	Month 25-36
	 	$	15.50	 	 	$	15,142.21	 

During the first year, Tenant shall only be required to pay Base Rent on 7,500 rentable
square feet though Tenant shall have the use of the entire Premises. After the first year,
Tenant shall pay Base Rent on 11,723 rentable square feet.

E. “Base Year” shall mean 2007.

F. “Basic Costs” shall mean all reasonable direct and indirect costs and expenses incurred
in connection with the Building as more fully defined in Exhibit C attached hereto.

1.

 

G. “Broker” shall mean for Tenant: Cottonwood Realty Services, and for Landlord: CB
Richard Ellis.

H. “Building” shall mean the office building at 1455 West 2200 South, West Valley City,
County of Salt Lake, State of Utah, currently known as Building D.

I. “Building Manager” shall mean CB Richard Ellis or such other company as Landlord shall
designate from time to time.

J.
“Building Standard”, shall mean the type, brand, quality and/or quantity of materials
Landlord designates from time-to-time to be the minimum quality and/or quantity to be used
in the Building or the exclusive type, grade, quality and/or quantity of material to be used
in the Building.

K. “Business Day(s)” shall mean Mondays through Fridays exclusive of the normal business
holidays of New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day (“Holidays”). Landlord, from time to time during the Lease Term, shall have
the right to designate additional Holidays, provided such additional Holidays are commonly
recognized by other office buildings in the area where the Building is located.

L. “Commencement Date,” “Lease Term” and “Termination Date” shall have the meanings set
forth below:

The “Lease Term” shall mean a period of thirty-six (36) months commencing on September
15,2006 (“Target Commencement Date”). The “Termination Date” shall, unless sooner
terminated as provided herein, mean the last day of the Lease Term. Notwithstanding the
foregoing, if the Termination Date, as determined herein, does not occur on the last day of
a calendar month, the Lease Term shall be extended by the number of days necessary to cause
the Termination Date to occur on the last day of the last calendar month of the Lease Term.
Tenant shall pay Base Rent and Additional Rent for such additional days at the same rate
payable for the portion of the last calendar month immediately preceding such extension.
The Commencement Date, Lease Term (including any extension by Landlord pursuant to this
subsection and Termination Date shall be set forth in a Commencement Letter prepared by
Landlord and executed by Tenant in accordance with the provisions of Section 3.A. hereof.

M. “Common Areas” shall mean those areas located within the Building or on the Property used
for corridors, elevator foyers, mail rooms, restrooms, mechanical rooms, elevator
mechanical rooms, janitorial closets, electrical and telephone closets, vending areas, and
lobby areas (whether at ground level or otherwise), entrances, exits, sidewalks, skywalks,
tunnels, driveways, parking areas and landscaped areas and other similar facilities provided
for the common use or benefit of tenants generally and/or the public.

N. “Default Rate’’ shall mean the lower of (i) the Prime Rate plus six percent (6%) or (ii)
the Maximum Rate.

O. “Maximum Rate” shall mean the highest rate of interest from time-to-time permitted under
applicable federal and state law.

P. “Normal Business Hours” for the Building shall mean 7:00 a.m. to 8:00 p.m. Mondays
through Fridays, and 8:00 a.m. to l:00 p.m. on Saturdays, exclusive of Holidays.

2.

 

Q. “Notice Addresses” shall mean the following addresses for Tenant and Landlord,
respectively:

Tenant:

Greg Ayers, CFO

1142 W. 2320 South

West Valley, UT 84119

Fax: 801-350 0909

with a copy to:

Ballard Spahr Andrews & Ingersoll, LLP

201 South Main Street, Suite 600

Salt Lake City, Utah 84111

Attn: David R. Rudd

Fax: 801-531-3001

Landlord:

CB Richard Ellis

2755 E. Cottonwood Parkway, Suite 100

Salt Lake City, UT 84121

Attn: Property Manager

Fax: 801-947-3963

with a copy to:

Stuart C. Bond

Bond Stephens & Johnson, Inc.

3201 C Street, Suite 200

Anchorage, AK 99503

Fax: 907-786-7364

Payments of Rent only shall be made payable to the order of:

Harkonnen Acquisitions LLC

at the following address:

CB Richard Ellis

2755 E. Cottonwood Parkway, Suite 100

Salt Lake City, UT 84121

Attn: Property Manager

Fax: 801-947-3963

or such other name and address as Landlord shall, from time to time, designate.

R. “Permitted Use” shall mean general office use and no other use or purpose.

3.

 

S. “Premises” shall mean the office space located within the Building and outlined on
Exhibit A to this Lease.

T. “Prime Rate” shall mean the per annum interest rate announced by and quoted in the Wall
Street Journal from time-to-time as the prime or base rate.

U. “Property” shall mean the Building and the parcel(s) of land on which it is located,
other improvements located on such land, adjacent parcels of land that Landlord operates
jointly with the Building, and other buildings and improvements located on such adjacent
parcels of land.

V. “Rent” shall have the meaning set forth in Section 5.

W. “Security Deposit” shall mean the sum of Fifteen Thousand One Hundred Forty-Two and
21/100 Dollars ($15,142.21). The Security Deposit shall be paid by Tenant to Landlord
contemporaneously with Tenant’s execution hereof.

X. “Service Areas” shall mean those areas within the Building used for stairs, elevator
shafts, flues, vents, stacks, pipe shafts and other vertical penetrations (but shall not
include any such areas for the exclusive use of a particular tenant).

Y. “Tenant’s Pro Rata Share” shall mean thirty-eight and 58/100 percent (38.58%) which is
the quotient (expressed as a percentage), derived by dividing the Approximate Rentable Area
in the Premises by the Approximate Rentable Area in the Building.

2. Lease
Grant. Subject to and upon the terms herein set forth, Landlord leases to Tenant and
Tenant leases from Landlord the Premises together with the right, in common with others, to use the
Common Areas.

3. Adjustment of Commencement Date/Possession.

A. The Lease Term, Commencement Date and Termination Date shall be determined in accordance
with Section I.F above. The Lease Term shall not commence until the later to occur of the
Target Commencement Date and the date that Landlord has substantially completed the work to
be performed by Landlord as set forth in the Work Letter Agreement attached hereto as
Exhibit D (“Landlord’s Work”); provided, however, that if Landlord shall be delayed in
substantially completing the Landlord Work as a result of the occurrence of any of the
following (a “Delay”):

	 	(1)	 	Tenant’s failure to furnish information in accordance with the
Work Letter Agreement or to respond to any request by Landlord for any approval
of information within any time period prescribed, or if no time period is
prescribed, then within five (5) Business Days of such request; or
	 
	 	(2)	 	Material changes in any plans and specifications requested by
Tenant which causes a delay in the completion of any of the Landlord’s Work; or
	 
	 	(3)	 	Any request by Tenant that Landlord delay the completion of any
of the Landlord’s Work; or
	 
	 	(4)	 	Any material breach or default by Tenant in the performance of
Tenant’s obligations under this Lease; or

4.

 

	 	(5)	 	Any delay resulting from Tenant’s having taken possession of
the Premises for any reason prior to substantial completion of the Landlord’s
Work;

then, for purposes of determining the Commencement Date, the date of substantial completion
shall be deemed to be the day that said Landlord’s Work would have been substantially
completed absent any such Delay(s). The Landlord’s Work shall be deemed to be substantially
completed on the date that Landlord’s Work has been performed (or would have been performed
absent any Delay(s)), other than any details of construction, mechanical adjustment or any
other matter, the non-completion of which does not materially interfere with Tenant’s use of
the Premises. The following shall be Tenant’s remedies against Landlord by reason of the
Premises not being ready for occupancy by Tenant on the Target Commencement Date: (i) the
Commencement Date shall be adjusted to be the date on which Landlord’s Work is substantially
completed and, accordingly, the postponement of Tenant’s obligation to pay Base Rent and
other sums due hereunder, and (ii) Landlord shall credit Tenant (for future Base Rent owed)
in the amount of One Hundred Fifty-Two Dollars ($152) per day for each day after the Target
Commencement Date that Landlord’s Work has not been completed. Promptly after the
determination of the Commencement Date, Landlord and Tenant shall enter into a letter
agreement (the “Commencement Letter”) on the form attached hereto as Exhibit F setting forth
the Commencement Date, the Termination Date and any other dates that are affected by the
adjustment of the Commencement Date. If this Lease requires Landlord to perform Landlord’s
Work in the Premises, the Commencement Letter shall identify any minor incomplete items of
the Landlord’s Work as reasonably agreed to by Landlord’s architect and Tenant (the
“Punchlist Items”), which Punchlist Items Landlord shall promptly remedy. Tenant, within
five (5) days after receipt thereof from Landlord, shall execute the Commencement Letter and
return the same to Landlord.

B. By taking possession of the Premises, Tenant is deemed to have accepted the Premises and
agreed that the Premises are in good order and satisfactory condition, with no
representation or warranty by Landlord (except as otherwise set forth in the Lease) as to
the condition of the Premises or, the Building or suitability thereof for Tenant’s use.

C. If Tenant takes possession of the Premises prior to the Commencement Date, such
possession shall be subject to all the terms and conditions of the Lease and Tenant shall
pay Base Rent and Additional Rent to Landlord for each day of occupancy prior to the
Commencement Date. Notwithstanding the foregoing, if Tenant, with Landlord’s prior approval
(which approval shall not be unreasonably withheld), takes possession of the Premises prior
to the Commencement Date for the sole purpose of performing any Landlord-approved
improvements therein or installing furniture, equipment or other personal property of
Tenant, such possession shall be subject to all of the terms and conditions of the Lease,
except that Tenant shall not be required to pay Rent with respect to the period of time
prior to the Commencement Date during which Tenant performs such work. Tenant shall,
however, be liable for the cost of any services (e.g. electricity, HVAC, freight elevators)
that are provided to Tenant or the Premises during the period of Tenant’s possession prior
to the Commencement Date. Nothing herein shall be construed as granting Tenant the right to
take possession of the Premises prior to the Commencement Date, whether for construction,
fixturing or any other purpose, without the prior consent of Landlord (which consent shall
not be unreasonably withheld).

4. Use. The Premises shall be used for the Permitted Use and for no other purpose. Tenant agrees
not to use or permit the use of the Premises for any purpose which is illegal, dangerous to life,
limb or property or which, in Landlord’s sole judgment, creates a nuisance or which would increase
the cost of insurance coverage with respect to the Building. Tenant will conduct its business and
control its agents,

5.

 

servants, employees, customers, licensees, and invitees in such a manner as not to unreasonably
interfere with, annoy or disturb other tenants or Landlord in the management of the Building and
the Property. Tenant will maintain the Premises in a clean and healthful condition, and comply
with all laws, ordinances, orders, rules and regulations of any governmental entity with reference
to the use, condition, configuration or occupancy of the Premises. Tenant, within ten (10) days
after the receipt thereof, shall provide Landlord with copies of any written notices it receives
with respect to a violation or alleged violation of any such laws, ordinances, orders, rules and
regulations. Tenant, at its expense, will comply with the rules and regulations of the Building
attached hereto as Exhibit B and such other rules and regulations reasonably adopted and reasonably
altered by Landlord from time-to-time and will cause all of its agents, employees, invitees and
visitors to do so. All such changes to rules and regulations will be reasonable and shall be sent
by Landlord to Tenant in writing.

5. Base Rent.

A. Tenant covenants and agrees to pay to Landlord during the Lease Term, without any setoff
or deduction except as otherwise expressly provided herein, the full amount of all Base Rent
and Additional Rent due hereunder and the full amount of all such other sums of money as
shall become due under this Lease, all of which hereinafter may be collectively called
“Rent.” In addition Tenant shall pay and be liable for, as Additional Rent, all rent, sales
and use taxes or other similar taxes, if any, levied or imposed by any city, state, county
or other governmental body having authority, such payments to be in addition to all other
payments required to be paid to Landlord by Tenant under the terms and conditions of this
Lease. Any such payments shall be paid concurrently with the payments of the Rent on which
the tax is based. The Base Rent and Additional Rent for each calendar year or portion
thereof during the Lease Term, shall be due and payable in advance in monthly installments
of the first day of each calendar month during the Lease Term and any extensions or renewals
hereof, and Tenant hereby agrees to pay such Base Rent and Additional Rent to Landlord
without demand. If the Lease Term commences on a day other than the first day of a month or
terminates on a day other than the last day of a month, then the installments of Base Rent
and Additional Rent for such month or months shall be prorated, based on the number of days
in such month. No payment by Tenant or receipt or acceptance by Landlord of a lesser amount
than the correct installment of Rent due under this Lease shall be deemed to be other than a
payment on account of the earliest Rent due hereunder, nor shall any endorsement or
statement on any check or any letter accompanying any check or payment be deemed an accord
and satisfaction, and Landlord may accept such check or payment without prejudice to
Landlord’s right to recover the balance or pursue any other available remedy. The
acceptance by Landlord of an installment of Rent on a date after the due date of such
payment shall not be construed to be a waiver of Landlord’s right to declare a default for
any other late payment. All amounts received by Landlord from Tenant hereunder shall be
applied first to the earliest accrued and unpaid Rent then outstanding. Tenant’s covenant
to pay Rent shall be independent of every other covenant set forth in this Lease.

B. To the extent allowed by law, all installments of Rent not paid when due shall bear
interest at the Default Rate from the date due until paid. In addition, if Tenant fails to
pay any installment of Base Rent and Additional Rent or any other item of Rent when due and
payable hereunder, a “Late Charge” equal to five percent (5%) of such unpaid amount will be
due and payable immediately by Tenant to Landlord. Notwithstanding the foregoing, Tenant
shall be provided a five (5) business day grace period for each monthly rental payment.

C. The Additional Rent payable hereunder shall be adjusted from time-to-time in accordance
with the provisions of Exhibit C attached hereto and incorporated herein for all purposes.

6.

 

6. Security Deposit. The Security Deposit shall be held by Landlord without liability for interest
and as security for the performance by Tenant of Tenant’s covenants and obligations under this
Lease including but not limited to those set forth in Section 10 hereof, it being expressly
understood that the Security Deposit shall not be considered an advance payment of Rent or a
measure of Tenant’s liability for damages in case of default by Tenant. Landlord shall have no
fiduciary responsibilities or trust obligations whatsoever with regard to the Security Deposit and
shall not assume the duties of a trustee for the Security Deposit. Landlord may, from
time-to-time, without prejudice to any other remedy and without waiving such default, use the
Security Deposit to the extent necessary to cure or attempt to cure, in whole or in part, any
default of Tenant hereunder. Following any such application of the Security Deposit, Tenant shall
pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its
original amount. If Tenant is not in default at the termination of this Lease, the balance of the
Security Deposit remaining after any such application shall be returned by Landlord to Tenant
within sixty (60) days thereafter. If Landlord transfers its interest in the Premises during the
term of this Lease, Landlord may assign the Security Deposit to the transferee and thereafter shall
have no further liability for the return of such Security Deposit. Tenant agrees to look solely to
such transferee or assignee or successor thereof for the return of the Security Deposit. Landlord
and its successors and assigns shall not be bound by any actual or attempted assignment or
encumbrance of the Security Deposit by Tenant. Landlord shall not be required to keep the Security
Deposit separate from its other accounts.

7. Services to be Furnished by Landlord.

A. Landlord agrees to furnish Tenant the following services:

	 	(1)	 	Hot and cold water twenty-four hours a day seven days per week
for drinking water and for use in the lavatories on the floor(s) on which the
Premises is located.
	 
	 	(2)	 	Central heat and air conditioning in season during Normal
Business Hours, at such temperatures and in such amounts as are considered by
Landlord, in its reasonable judgment, to be standard for buildings of similar
class, size, age and location, or as required by governmental authority. In
the event that Tenant requires central heat, ventilation or air conditioning
service at times other than Normal Business Hours, such additional service
shall be furnished only upon the written request (email is acceptable) of
Tenant delivered to Landlord prior to 3:00 p.m. at least one Business Day in
advance of the date for which such usage is requested. Tenant shall bear the
entire cost of additional service as such costs are determined by Landlord from
time-to-time, as Additional Rent upon presentation of a statement therefor by
Landlord. Landlord agrees to notify Tenant of the hourly rate for such
additional service. All additional heating, ventilating and air conditioning
required (if any) to accommodate Tenant’s design shall be installed at the
Tenant’s expense subject to Landlord’s prior written approval. The cost of
operation and maintenance of the equipment shall be the responsibility of the
Tenant and paid to Landlord as Additional Rent.
	 
	 	(3)	 	Maintenance and repair of all Common Areas in the manner and to
the extent reasonably deemed by Landlord to be standard for buildings of
similar class, age and location.
	 
	 	(4)	 	Janitorial and cleaning service in and about the Premises on Business Days;
provided, however, if Tenant’s floor covering or other improvements require special
treatment, Tenant shall pay the additional cleaning cost attributable

7.

 

	 	 	 	thereto as Additional Rent upon presentation of a statement therefor by Landlord.
Tenant shall not provide or use any other janitorial or cleaning services without
Landlord’s consent, and then only subject to the supervision of Landlord and at
Tenant’s sole cost and responsibility and by a janitor, cleaning contractor or
employees at all times satisfactory to Landlord.
	 
	 	(5)	 	Electricity to the Premises for general office use twenty-four
hours a day, seven days a week, in accordance with and subject to the terms and
conditions of Section 11 of this Lease.
	 
	 	(6)	 	Fluorescent bulb replacement in the Premises necessary to
maintain building standard the lighting as established by Landlord and
fluorescent and incandescent bulb and ballast replacement in the Common Areas
and Service Areas.
	 
	 	(7)	 	Passenger and freight elevator service in common with Landlord
and other persons during twenty-four hours a day, seven days a week.
	 
	 	(8)	 	Access control to the Building during other than Normal
Business Hours shall be provided in such form as Landlord deems appropriate.
Tenant shall cooperate fully in Landlord’s efforts to maintain access control
to the Building and shall follow all regulations promulgated by Landlord with
respect thereto. Landlord shall also provide key card access to the Building
and Premises twenty-four (24) hours a day, seven (7) days a week subject to
temporary closures due to casualty. Landlord shall furnish Tenant, at
Landlord’s expense, with up to one hundred (100) keys and access cards, and at
Tenant’s expense with such additional key and access cards as Tenant may
request, to unlock or allow access to the Building and each corridor door
entering the Premises.

B. If Tenant requests any other utilities or building services in addition to those
identified above, or any of the above utilities or building services in frequency, scope,
quality or quantities substantially greater than the reasonable standards set by Landlord
for the Building, then Landlord shall use reasonable efforts to attempt to furnish Tenant
with such additional utilities or building services. Landlord may impose a reasonable
charge for such additional utilities or building services, which shall be paid monthly by
Tenant as Additional Rent on the same day that the monthly installment of Base Rent is due.

C. Except as otherwise expressly provided herein, the failure by Landlord to any extent to
furnish, or the interruption or termination of these defined services in whole or in part,
resulting from adherence to laws, regulations and administrative orders, wear, use, repairs,
improvements alterations or any causes beyond the reasonable control of Landlord shall not
render Landlord liable in any respect nor be construed as a constructive eviction of Tenant.
Landlord shall use its best efforts to promptly restore such services. Should any of the
equipment or machinery used in the provision of such services for any cause cease to
function properly, Landlord shall use reasonable diligence to repair such equipment or
machinery in a timely manner. Notwithstanding anything to the contrary in this Lease, if as
a result of any interruption of services the Premises will be uninhabitable or unusable by
Tenant for five (5) consecutive business days, then Base Rent and Additional Rent shall be
abated to the extent to which such condition interferes with Tenant’s use of the Premises
commencing on the first day of such condition and continuing until such condition is
corrected.

8.

 

8. Leasehold Improvements/Tenant’s Property. All fixtures, equipment, improvements and
appurtenances attached to, or built into, the Premises at the commencement of or during the Lease
Term which cannot be removed without causing substantial damage to the Premises, whether or not by,
or at the expense of, Tenant (“Leasehold Improvements”), shall be and remain a part of the
Premises; shall be the property of Landlord; and shall not be removed by Tenant except as expressly
provided herein. All unattached and moveable partitions, trade fixtures, moveable equipment or
furniture located in the Premises and acquired by or for the account of Tenant, without expense to
Landlord, which can be removed without structural damage to the Building or Premises, and all
personally brought into the Premises by Tenant (“Tenant’s Property”) shall be owned and insured by
Tenant. Landlord may, nonetheless, at any time prior to, or within one (1) month after, the
expiration or earlier termination of this Lease or Tenant’s right to possession, require Tenant to
remove any Leasehold Improvements performed by or for the benefit of Tenant and all electronic,
phone and data cabling as are designated by Landlord (the “Required Removables”) at Tenant’s sole
cost. In the event that Landlord so elects, Tenant shall remove such Required Removables within
ten (10) days after notice from Landlord, provided that in no event shall Tenant be required to
remove such Required Removables prior to the expiration or earlier termination of this Lease or
Tenant’s right to possession. In addition to Tenant’s obligation to remove the Required
Removables, Tenant shall repair any damage caused by such removal and perform such other work as is
reasonably necessary to restore the Premises to a “move in” condition (subject to ordinary wear and
tear). If Tenant fails to remove any specified Required Removables or to perform any required
repairs and restoration within the time period specified above, Landlord, at Tenant’s sole cost and
expense, may remove the Required Removables (and repair any damage occasioned thereby) and dispose
thereof or deliver the Required Removables to any other place of business of Tenant, or warehouse
the same, and Tenant shall pay the cost of such removal, repair, delivery, or warehousing of the
Required Removables within five (5) days after demand from Landlord.

9. Signage. Tenant shall have the right, at Landlord’s expense, to have its name placed on a
freestanding monument sign, directory and at the entry to the Premises. Tenant shall also have the
right at Tenant’s expense, to have a crown, lit sign on the north and west sides of the Building.
Landlord shall provide and install, at Tenant’s cost, all letters or numerals on the exterior of
the Premises; all such letters and numerals shall be in the standard graphics for the Building and
no others shall be used or permitted on the Premises without Landlord’s prior written consent. In
addition, Landlord will list Tenant’s name in the Building’s directory, if any, located in the
lobby of the Building.

10. Repairs and Alterations by Tenant.

A. Except to the extent such obligations are imposed upon Landlord hereunder, Tenant shall,
at its sole cost and expense, maintain the Premises in good order, condition and repair
throughout the entire Lease Term, ordinary wear and tear excepted. Tenant agrees to keep
the areas visible from outside the Premises in a neat, clean and attractive condition at all
times. Except the extent such obligations are imposed upon Landlord hereunder, Tenant shall
be responsible for all repairs, replacements and alterations in and to the Premises,
Building and Property and the facilities and systems thereof, the need for which arises out
of (1) the installation, removal, use or operation of Tenant’s Property (as defined in
Section 8 above), (2) the moving of Tenant’s Property into or out of the Building, or (3)
the act, omission, misuse or negligence of Tenant, its agents, contractors, employees or
invitees. All such repairs, replacements or alterations shall be performed in accordance
with Section 10.B: below and the rules, policies and procedures reasonably enacted by
Landlord from time to time for the performance of work in the Building. If Tenant fails to
maintain the Premises in good order, condition and repair, Landlord shall give Tenant
written notice to perform such acts as are reasonably required to so maintain the Premises.
If Tenant fails to promptly commence such work and diligently pursue it to its completion,
then Landlord may, at is option, make such repairs, and Tenant shall pay the reasonable cost
thereof to

9.

 

Landlord on demand as Additional Rent, together with an administration charge in an amount
equal to ten percent (10%) of the cost of such repairs. Landlord shall, at its expense
(except as included in Basic Costs) keep and maintain in good repair and working order and
make all repairs to and perform necessary maintenance upon: (a) all structural elements of
the Building; and (b) all mechanical, electrical and plumbing systems that serve the
Building in general; and (c) the Common Areas and the Building facilities common to all
tenants including, but not limited to, the ceilings, walls and floors in the Common Areas.

B. Tenant shall not make or allow to be made any alterations, additions or improvements to
the Premises, without first obtaining the written consent of Landlord in each such instance,
which consent shall not be unreasonably withheld. Prior to commencing any such work and as
a condition to obtaining Landlord’s consent, Tenant must furnish Landlord with plans and
specifications reasonably acceptable to Landlord; names and addresses of contractors
reasonably acceptable to Landlord; copies of contracts; necessary permits and approvals;
evidence of contractor’s and subcontractor’s insurance in accordance with Section 15 hereof;
and a payment bond or other security, all in form and amount reasonably satisfactory to
Landlord. Tenant shall be responsible for insuring that all such persons procure and
maintain insurance coverage against such risks, in such amounts and with such companies as
Landlord may require, including, but not limited to, Builder’s Risk and Worker’s
Compensation insurance. All such improvements, alterations or additions shall be
constructed in a good and workmanlike manner using Building Standard materials or other new
materials of equal or greater quality. Landlord, to the extent reasonably necessary to
avoid any disruption to the tenants and occupants of the Building, shall have the right to
designate the time when any such alterations, additions and improvements may be performed
and to otherwise designate reasonable rules, regulations and procedures for the performance
of work in the Building. Upon completion, Tenant shall furnish “as-built” plans,
contractor’s affidavits and full and final waivers of lien and receipted bills covering all
labor and materials. All improvements, alterations and additions shall comply with the
insurance requirements, codes, ordinances, laws and regulations, including without
limitation, the Americans with Disabilities Act. Tenant shall reimburse Landlord upon
demand for all reasonable sums, if any, expended by Landlord for third party examination of
the architectural, mechanical, electrical and plumbing plans for any alterations, additions
or improvements. Landlord’s approval of Tenant’s plans and specifications for any work
performed for or on behalf of Tenant shall not be deemed to be representation by Landlord
that such plans and specifications comply with applicable insurance requirements, building
codes, ordinances, laws or regulations or that the alterations, additions and improvements
constructed in accordance with such plans and specifications will be adequate for Tenant’s
use.

11. Use of Electrical Services by Tenant.

A. All electricity used by Tenant in the Premises shall, at Landlord’s option, be paid for
by Tenant through inclusion in Base Rent and Basic Costs (except as provided in Section 11.B
below with respect to excess usage. Landlord shall have the right at any time and from
time-to-time during the Lease Term to contract for electricity service from such providers
of such services as Landlord shall elect (each being an “Electric Service Provider”).
Tenant shall cooperate with Landlord, and the applicable Electric Service Provider, at all
times and, as reasonably necessary, shall allow Landlord and such Electric Service Provider
reasonable access to the Building’s electric lines, feeders, risers, wiring, and any other
machinery within the Premises. Excluding intentional acts or negligence by Landlord,
Landlord shall in no way be liable or responsible for any loss, damage, or expense that
Tenant may sustain or incur by reason of any change, failure, interference, disruption, or
defect in the supply or character of the electric energy furnished to the Premises, or if
the quantity or character of the electric energy supplied by the Electric Service

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Provider is no longer available or suitable for Tenant’s requirements, and no such change,
failure, defect, unavailability, or unsuitability shall constitute an actual or constructive
eviction, in whole or in part, or entitle Tenant to any abatement or diminution of rent, or
relieve Tenant from any of its obligations under the Lease.

B. Tenant’s use of electrical services furnished by Landlord shall not exceed in voltage,
rated capacity, or overall load that which is standard for the Building. In the event
Tenant shall request that it be allowed to consume electrical services in excess of Building
Standard, Landlord may refuse to consent to such usage or may consent upon such conditions
as Landlord reasonably elects (including the installation of utility service upgrades,
submeters, air handlers or cooling units), and all such additional usage (to the extent
permitted by law), installation and maintenance thereof shall be paid for by Tenant as
Additional Rent. Landlord, at any time during the Lease Term, shall have the right to
separately meter electrical usage for the Premises or to measure electrical usage by survey
or any other method that Landlord, in its reasonable judgment, deems appropriate.

12. Entry by Landlord. In the least intrusive manner possible, and at reasonable times, Landlord
or its agents or representatives may enter into and upon any part of the Premises to inspect the
same, or to show the Premises to prospective purchasers, mortgagees, tenants (during the last (12)
twelve months of the Lease Term or earlier in connection with a potential relocation) or insurers,
or to clean or make repairs, alterations, or additions thereto, including any work that Landlord
deems necessary for the safety, protection or preservation of the Building or any occupants
thereof, or to facilitate repairs, alterations or additions to the Building or any other tenant’s
premises. Except for any entry by Landlord in an emergency situation or to provide normal cleaning
and janitorial service, Landlord shall provide Tenant with forty-eight (48) hours prior written
notice of any entry into the Premises, which notice may be given verbally. Landlord shall have the
right to temporarily close the Premises or the Building to perform repairs, alterations or
additions in the Premises or the Building, provided that Landlord shall use its best efforts to
perform all such work on weekends and after Normal Business Hours. Notwithstanding the foregoing,
Landlord shall provide notice to and negotiate with Tenant as to the scheduled time and extent of
temporary closure of the Premises or the Building. Entry by Landlord hereunder shall not
constitute a constructive eviction or entitle Tenant to any abatement or reduction of Rent by
reason thereof.

13. Assignment and Subletting.

A. Except in connection with a Permitted Transfer (defined in Section 13.E: below), Tenant
shall not assign, sublease, transfer or encumber any interest in this Lease or allow any
third party to use any portion of the Premises (collectively or individually, a “Transfer”)
without the prior written consent of Landlord, which consent shall not be unreasonably
withheld. Without limitation, it is agreed that Landlord’s consent shall not be considered
unreasonably withheld if: (1) business is not suitable for the Building considering the
business of the other tenants and the Building’s prestige, or would result in a violation of
another tenant’s rights; (2) the proposed transferee is a governmental agency or occupant of
the Building; (3) Tenant is in default beyond any applicable notice and cure period; or (4)
any portion of the Building or the Premises would likely become subject to additional or
different laws as a consequence of the proposed Transfer. Any attempted Transfer in
violation of this Section 13, shall, exercisable in Landlord’s sole and absolute discretion,
be voidable. Consent by Landlord to one or more Transfer(s) shall not operate as a waiver
of Landlord’s rights to approve any subsequent Transfer(s).

B. If Tenant requests Landlord’s consent to a Transfer, Tenant shall submit to Landlord
financial statements for the proposed transferee, a complete copy of the proposed
assignment, sublease and other information as Landlord may reasonably request. Landlord
shall within thirty

11.

 

(30) days after Landlord’s receipt of the required information and documentation either:
(1) consent or reasonably refuse consent to the Transfer in writing; (2) in the event of a
proposed assignment of this Lease or a proposed sublease of the entire Premises for the
entire remaining term of this Lease, terminate this Lease effective the first to occur of
ninety (90) days following written notice of such termination or the date that the proposed
Transfer would have come into effect. If Landlord shall fail to notify Tenant in writing of
its decision within such thirty (30) day period after the later of the date Landlord is
notified in writing of the proposed Transfer or the date Landlord has received all required
information concerning the proposed transferee and the proposed Transfer, Landlord shall be
deemed to have refused to consent to such Transfer, and to have elected to keep this Lease
in full force and effect. Tenant shall pay Landlord a review fee of $1,000.00 for
Landlord’s review of any Permitted Transfer or requested Transfer. In addition, Tenant
shall reimburse Landlord for its actual reasonable costs and expenses (including without
limitation reasonable attorney’s fees) incurred by Landlord in connection with Landlord’s
review of such requested Transfer or Permitted Transfer.

C. After Tenant deducts costs of marketing the property, Tenant shall pay to Landlord fifty
percent (50%) of all cash and other consideration which Tenant receives as a result of a
Transfer that is in excess of the rent payable to Landlord hereunder for the portion of the
Premises and Term covered by the Transfer within ten (10) days following receipt thereof by
Tenant. If Tenant is in Monetary Default (defined in Section 22. below), Landlord may
require that all sublease payments be made directly to Landlord, in which case Tenant shall
receive a credit against rent in the amount of any payments received (less Landlord’s share
of any excess).

D. Except as provided below with respect to a Permitted Transfer, if Tenant is a
corporation, limited liability company, partnership or similar entity, and the entity which
owns or controls a majority of the voting shares/rights at the time changes for any reason
(including but not limited to a merger, consolidation or reorganization), such change of
ownership or control shall constitute a Transfer. The foregoing shall not apply so long as
Tenant is an entity whose outstanding stock is listed on a nationally recognized security
exchange, or if at least eighty percent (80%) of its voting stock is owned by another
entity, the voting stock of which is so listed.

E. Tenant may assign its entire interest under this Lease or sublet the Premises to any
entity controlling or controlled by or under common control with Tenant or to any successor
to Tenant by purchase, merger, consolidation or reorganization (hereinafter, collectively,
referred to as “Permitted Transfer”) without the consent of Landlord, provided: (1) Tenant
is not in default under this Lease; (2) if such proposed transferee is a successor to Tenant
by purchase, said proposed transferee shall acquire all or substantially all of the stock or
assets of Tenant’s business or, if such proposed transferee shall acquire all or
substantially all of the stock or assets of Tenant’s business or, if such proposed
transferee is a successor to Tenant by merger, consolidation or reorganization, the
continuing or surviving corporation shall own all or substantially all of the assets of
Tenant; (3) such proposed transferee shall have a net worth which is at least equal to the
greater of Tenant’s net worth at the date of this Lease or Tenant’s net worth as of the day
prior to the proposed purchase, merger, consolidation or reorganization as evidenced to
Landlord’s reasonable satisfaction; (4) such proposed transferee operates the business in
the Premises for the Permitted Use and no other purpose; and (5) Tenant shall give Landlord
written notice at least thirty (30) days prior to the effective date of the proposed
purchase, merger, consolidation or reorganization.

14. Mechanic’s Liens. Tenant will not permit any mechanic’s liens or other liens to be placed upon
the Premises, the Building, or the Property and nothing in this Lease shall be deemed or construed
in any way as constituting the consent or request of Landlord, express or implied, by inference or
otherwise, to

12.

 

any person for the performance of any labor or the furnishing of any materials to the Premises, the
Building, or the Property or any part thereof, nor as giving Tenant any right, power, or authority
to contract for or permit the rendering of any services or the furnishing of any materials that
would give rise to any mechanic’s or other liens against the Premises, the Building, or the
Property. In the event any such lien is attached to the Premises, the Building, or the Property,
then, in addition to any other right or remedy of Landlord, Landlord may, but shall not be
obligated to, discharge the same. Any amount paid by Landlord for any of the aforesaid purposes
including, but not limited to, reasonable attorneys’ fees, shall be paid by Tenant to Landlord
promptly on demand as Additional Rent. Tenant shall within thirty (30) days of receiving such
notice of lien or claim (a) have such lien or claim released or (b) deliver to Landlord a bond in
form, content, amount and issued by surety, satisfactory to Landlord, indemnifying, protecting,
defending and holding harmless the Indemnities against all costs and liabilities resulting from
such lien or claim and the foreclosure or attempted foreclosure thereof. Tenant’s failure to
comply with the provisions of the foregoing sentence shall be deemed an Event of Default under
Section 22. hereof entitling Landlord to exercise all of its remedies therefor without the
requirement of any additional notice or cure period.

15. Insurance.

A. Landlord shall maintain such insurance on the Building and the Premises (other than on
Tenant’s Property or on any additional improvements constructed in the Premises by Tenant),
and such liability insurance in such amounts as Landlord elects. The cost of such insurance
shall be included as a part of the Basic Costs, and payments for losses thereunder shall be
made solely to Landlord or the mortgagees of Landlord as their
interests shall appear.

B. Tenant shall maintain at its expense, (i) in an amount equal to full replacement cost,
special form (formerly known as all risk) property insurance on all of its personal
property, including removable trade fixtures and leasehold and tenant improvements, and
Tenant’s Property located in the Premises and in such additional amounts as are required to
meet Tenant’s obligations pursuant to Section 18 hereof and with deductibles in an amount
reasonably satisfactory to Landlord, and (ii) a policy or policies of commercial general
liability insurance (including endorsement or separate policy for owned or non-owned
automobile liability) with respect to its activities in the Building and on the Property,
with the premiums thereon fully paid on or before the due date, in an amount of not less
than $1,000,000 per occurrence per person coverage for bodily injury, property damage,
personal injury or combination thereof (the term “personal injury” as used herein means,
without limitation, false arrest, detention or imprisonment, malicious prosecution, wrongful
entry, liable and slander), provided that if only single limit coverage is available it
shall be for at least $1,000,000 per occurrence with an umbrella policy of at least
$1,000,000 combined single limit per occurrence. Tenant’s insurance policies shall name
Landlord and Building Manager as additional insureds and shall include coverage for the
contractual liability of Tenant to indemnify Landlord and Building Manager pursuant to
Section 16 of this Lease and shall have deductibles in an amount reasonably satisfactory to
Landlord. Prior to Tenant’s taking possession of the Premises, Tenant shall furnish
evidence reasonably satisfactory to Landlord of the maintenance and timely renewal of such
insurance, and Tenant shall obtain and deliver to Landlord a written obligation on the part
of each insurer to notify Landlord at least thirty (30) days prior to the modification,
cancellation or expiration of such insurance policies. In the event Tenant shall not have
delivered to Landlord a policy or certificate evidencing such insurance at least thirty (30)
days prior to the expiration date of each expiring policy, Landlord may obtain such
insurance as Landlord may reasonably require to protect Landlord’s interest (which obtaining
of insurance shall not be deemed to be a waiver of Tenant’s default hereunder). The cost to
Landlord of obtaining such policies, plus an

13.

 

administrative fee in the amount of fifteen percent (15%) of the cost of such policies shall
be paid by Tenant to Landlord as Additional Rent upon demand.

C. The insurance requirements set forth in this Section 15 are independent of the waiver,
indemnification, and other obligations under this Lease and will not be construed or
interpreted in any way to restrict, limit or mode the waiver, indemnification and other
obligations or to in any way limit any party’s liability under this Lease. In addition to
the requirements set forth in Sections 15 and 16, the insurance required of Tenant under
this Lease must be issued by an insurance company with a rating of no less than A-VIII in
the current Best’s Insurance Guide, or A- in the current Standard & Poor Insurance Solvency
Review, or in that is otherwise acceptable to Landlord, and admitted to engage in the
business of insurance in the state in which the Building is located; be primary insurance
for all claims under it and provide that any insurance carried by Landlord and Landlord’s
lenders is strictly excess, secondary and noncontributing with any insurance carried by
Tenant; and provide that insurance may not be cancelled, nonrenewed or the subject of
material change in coverage of available limits of coverage, except upon thirty (30) days
prior written notice to Landlord and Landlord’s lenders. Tenant will deliver either a
duplicate original or a legally enforceable certificate of insurance on all policies
procured by Tenant in compliance with Tenant’s obligations under this Lease to Landlord on
or before the date Tenant first occupies any portion of the Premises, at least thirty (30)
days before the expiration date of any policy and upon the renewal of any policy. Tenant
may comply with its insurance coverage requirements through a blanket policy, provided
Tenant, at Tenant’s sole expense, procures a “per location” endorsement, or equivalent
reasonably acceptable to Landlord, so that the general aggregate and other limits apply
separately and specifically to the Premises.

D. Neither Landlord nor Tenant shall be liable (by way of subrogation or otherwise) to the
other party (or to any insurance company insuring the other party) for any personal injury
or loss or damage to any of the property of Landlord or Tenant, as the case may be, with
respect to their respective property, the Building, the Property or the Premises or any
addition or improvements thereto, or any contents therein, to the extent covered by
insurance carried or required to be carried by a party hereto even though such loss might
have been occasioned by the negligence or willful acts or omissions of the Landlord or
Tenant or their respective employees, agents, contractors or invitees. Since this mutual
waiver will preclude the assignment of any such claim by subrogation (or otherwise) to an
insurance company (or any other person), Landlord and Tenant each agree to give each
insurance company which has issued, or on the future may issue, policies of insurance, with
respect to the items covered by this waiver, written notice of the terms of this mutual
waiver, and to have such insurance policies properly endorsed, if necessary, to prevent the
invalidation of any of the coverage provided by such insurance policies by reason of such
mutual waiver. For the purpose of the foregoing waiver, the amount of any deductible
applicable to any loss or damage shall be deemed covered by, and recoverable by the insured
under the insurance policy to which such deductible relates. In the event that Tenant is
permitted to and self-insures any risk for which insurance is required to be carried under
this Lease, or if Tenant fails to carry any insurance required to be carried by Tenant
pursuant to this Lease, then all loss or damage to Tenant, its leasehold interest, its
business, its property, the Premises or any additions or improvements thereto or contents
thereof shall be deemed covered by and recoverable by Tenant under valid and collectible
policies of insurance. Notwithstanding anything to the contrary herein, Landlord shall not
be liable to the Tenant or any insurance company (by way of subrogation or otherwise)
insuring the Tenant for any loss or damage to any property, or bodily injury or personal
injury or any resulting loss of income or losses from worker’s compensation laws and
benefits, even though such loss or damage might have been occasioned by the negligence of
Landlord, its agents or employees, or Building Manager, if any such loss or damage was
required to be covered by insurance pursuant to this Lease.

14.

 

16. Indemnity. Except to the extent caused by the gross negligence or willful misconduct of
Landlord, its employees, representatives or contractors, neither Landlord nor Building Manager nor
any of their respective officers, directors, employees, members, managers, or agents shall be
liable to Tenant, or to Tenant’s agents, servants, employees, customers, licensees, or invitees for
any injury to person or damage to property caused by any act, omission, or neglect of Tenant, its
agents, servants, employees, customers, invitees, licensees or by any other person entering the
Premises under the invitation of Tenant or arising out of the use of the Premises by Tenant and the
conduct of its business or out of a default by Tenant in the performance of its obligations
hereunder. Tenant hereby indemnifies and holds Landlord and Building Manager and their respective
officers, directors, employees, members, managers and agents (“Indemnitees”), harmless from all
liability and claims for any property damage, or bodily injury or death of, or personal injury to,
a person in or on the Premises, and this indemnity shall be enforceable to the full extent whether
or not such liability and claims are the result of the sole, joint or concurrent acts, negligent or
intentional, or otherwise, of Tenant, or its employees, agents, servants, customers, invitees or
licensees. Notwithstanding the terms of this Lease to the contrary, the terms of this Section
shall survive the expiration or earlier termination of this Lease.

17. Damages from Certain Causes. Except to the extent caused by the gross negligence or willful
misconduct of Landlord, its employees, representatives or contractors, Landlord shall not be liable
to Tenant or Tenant’s employees, contractors, agents, invitees or customers, for any injury to
person or damage to property sustained by Tenant or any such party or any other person claiming
through Tenant resulting from any accident or occurrence in the Premises caused by the Premises
becoming out of repair or by defect in or failure of equipment, pipes, or wiring, or by broken
glass, or by the backing up of drains, or by gas, water, steam, electricity, or oil leaking,
escaping or flowing into the Premises (except where due to Landlord’s failure or neglect to make
repairs required to be made pursuant to other provisions of this Lease, after the expiration of a
reasonable time after written notice to Landlord of the need for such repairs), including, but not
limited to riot, strike, insurrection, war, court order, requisition, order of any governmental
body or authority, acts of God, fire or theft.

18. Casualty Damage. If the Premises or any part thereof shall be damaged by fire or other
casualty, Tenant shall give prompt written notice thereof to Landlord. In case the Building shall
be so damaged that substantial alteration or reconstruction of the Building shall, in Landlord’s
reasonable judgment, be required (whether or not the Premises shall have been damaged by such
casualty provided that such damage materially affects Tenant’s use of the Premises) and such
alteration or reconstruction cannot be completed within ninety days
(90), or in the event there is
less than one (1) year of the Lease Term remaining or in the event Landlord’s mortgagee should
require that the insurance proceeds payable as a result of a casualty be applied to the payment of
the mortgage debt or in the event of any material uninsured loss to the Building, Landlord or
Tenant may terminate this Lease by notifying the other party in writing of such termination within
thirty (30) days after the date of such casualty. If Landlord or Tenant does not thus elect to
terminate this Lease, Landlord shall commence and proceed with reasonable diligence to restore the
Building, and the improvements located within the Premises, if any, for which Landlord had
financial responsibility pursuant to the Work Letter Agreement attached hereto as Exhibit D
(except that Landlord shall not be responsible for delays not within the control of Landlord) to
substantially the same condition in which, it was immediately prior to the happening of the
casualty. Notwithstanding the foregoing, Landlord’s obligation to restore the Building, and the
improvements located within the Premises, if any, for which Landlord had financial responsibility
pursuant to the Work Letter Agreement, shall not require Landlord to expend for such repair and
restoration work more than the insurance proceeds actually received by the Landlord as a result of
the casualty. When the repairs described in the preceding two sentences have been completed by
Landlord, Tenant shall complete the restoration of furniture, trade fixtures and other personal
property, which are necessary to permit Tenant’s reoccupancy of the Premises. Provided that such
damage or casualty is not caused by the gross negligence or willful misconduct of Landlord, its
employees, representatives or contractors, Landlord

15.

 

shall not be liable for any inconvenience or annoyance to Tenant or injury to the business of
Tenant resulting in any way from such damage or the repair thereof, except that, subject to the
provisions of the next sentence, Landlord shall allow Tenant a fair diminution of Rent during the
time and to the extent the Premises are unfit for occupancy. If the Premises or any other portion
of the Property is damaged by fire or other casualty resulting from the fault or negligence of
Tenant or any of Tenant’s agents, employees, or invitees, the rent hereunder shall not be
diminished during the repair of such damage and Tenant shall be liable to Landlord for the cost of
the repair and restoration of the Property caused thereby to the extent such cost and expense is
not covered by insurance proceeds.

19. Condemnation. If the whole or any substantial part (greater than twenty percent (20%) of the
Premises) of the Premises or if the Building or any portion thereof which would leave the remainder
of the Building unsuitable for use as an office building comparable to its use on the Commencement
Date, or if the land on which the Building is located or any material portion thereof, shall be
taken or condemned for any public or quasi-public use under governmental law, ordinance or
regulation, or by right of eminent domain, or by private purchase in lieu thereof, then Landlord or
Tenant may terminate this Lease and the rent shall be abated during the unexpired portion of this
Lease, effective when the physical taking of said Premises or said portion of the Building or land
shall occur. In the event this Lease is not terminated, the rent for any portion of the Premises
so taken or condemned shall be abated during the unexpired term of this Lease effective when the
physical taking of said portion of the Premises shall occur. All compensation awarded for any such
taking or condemnation, or sale proceeds in lieu thereof, shall be the property of Landlord, and
Tenant shall have no claim thereto, the same being hereby expressly waived by Tenant, except for
any portions of such award or proceeds which are specifically allocated by the condemning or
purchasing party for the taking of or damage to trade fixtures of Tenant, which Tenant specifically
reserves to itself.

20. Hazardous Substances.

A. Tenant hereby represents and covenants to Landlord the following: No toxic or hazardous
substances or wastes, pollutants or contaminants (including, without limitation, asbestos,
urea formaldehyde, the group of organic compounds known as polychlorinated biphenyls,
petroleum products including gasoline, fuel oil, crude oil and various constituents of such
products, radon, and any hazardous substance as defined in the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, 42 U.S.C. 9601-9657, as amended (“CERCLA”)
(collectively, “Environmental Pollutants”) other than customary office supplies and cleaning
supplies stored and handled within the Premises in accordance with all applicable laws, will
be generated, treated, stored, released or disposed of, or otherwise placed, deposited in or
located on the Property, and no activity shall be taken on the Property, by Tenant, its
agents, employees, invitees or contractors, that would cause or contribute to (i) the
Property or any part thereof to become a generation, treatment, storage or disposal facility
within the meaning of or otherwise bring the Property within the ambit of the Resource
Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. 5901 et. seq., or any similar
state law or local ordinance, (ii) a release or threatened release of toxic or hazardous
wastes or substances, pollutants or contaminants, from the Property or any part thereof
within the meaning of, or otherwise result in liability in connection with the Property
within the ambit of CERCLA, or any similar state law or local ordinance, or (iii) the
discharge of pollutants or effluents into any water source or system, the dredging or
filling of any waters, or the discharge into the air of any emissions, that would require a
permit under the Federal Water Pollution Control Act, 33 U.S.C. 1251 et. seq., or the Clean
Air Act, 42 U.S.C. 7401 et. seq., or any similar state law or local ordinance.

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B. Landlord Represents and Warrants that at the time of the commencement of the Lease, the
Building complies with all Environmental Laws and that no Environmental Pollutants are
located therein.

C. Tenant agrees to indemnify and hold Indemnitees (as defined in Section 16) harmless from
and against and to reimburse Indemnitees with respect to, any and all claims, demands,
causes of action, loss, damage, liabilities, costs and expenses (including attorneys’ fees
and court costs) of any and every kind or character, known or unknown, fixed or contingent,
asserted against or incurred by Landlord at any time and from time-to-time by reason of or
arising out of the breach of any representation or covenant contained in Section 20.A above.

D. Tenant shall immediately notify Landlord in writing of any release or threatened release
of toxic or hazardous wastes or substances, pollutants or contaminants of which Tenant has
knowledge whether or not the release is in quantities that would require under law the
reporting of such release to a governmental or regulatory agency.

E. Tenant shall also immediately notify Landlord in writing of, and shall contemporaneously
provide Landlord with a copy of:

	 	(1)	 	Any written notice of release of hazardous wastes or
substances, pollutants or contaminants on the Property that is provided by
Tenant or any subtenant or other occupant of the Premises to a governmental or
regulatory agency;
	 
	 	(2)	 	Any notice of a violation, or a potential or alleged violation,
of any Environmental Law (hereinafter defined) that is received by Tenant or
any subtenant or other occupant of the Premises from any governmental or
regulatory agency;
	 
	 	(3)	 	Any inquiry, investigation, enforcement, cleanup, removal, or
other action that is instituted or threatened by a governmental or regulatory
agency against Tenant or any subtenant or other occupant of the Premises and
that relates to the release or discharge of hazardous wastes or substances,
pollutants or contaminants on or from the Property;
	 
	 	(4)	 	Any claim that is instituted or threatened by any third-party
against Tenant or any subtenant or other occupant of the Premises and that
relates to any release or discharge of hazardous wastes or substances,
pollutants or contaminants on or from the Property; and
	 
	 	(5)	 	Any notice of the loss of any environmental operating permit by
Tenant or any subtenant or other occupant of the Premises.

F. As used herein “Environmental Laws” mean all present and future federal, state and
municipal laws, ordinances, rules and regulations applicable to environmental and ecological
conditions, and the rules and regulations of the U.S. Environmental Protection Agency, and
any other federal, state or municipal agency, or governmental board or entity relating to
environmental matters.

21. Americans with Disabilities Act. Tenant agrees to comply with all requirements of the
Americans with Disabilities Act (Public Law (July 26, 1990) (“ADA”) applicable to the Premises and
such other current acts or other subsequent acts, (whether federal or state) addressing like issues
as are

17.

 

enacted or amended. Tenant agrees to indemnify and hold Landlord harmless from any and all
expenses, liabilities, costs or damages suffered by Landlord as a result of additional obligations
which may be imposed on the Building or the Property under of such acts by virtue of Tenant’s
operations and/or occupancy, including the alleged negligence of the Landlord. Any provision of
the Lease which could arguably be construed as authorizing a violation of the ADA shall be
interpreted in a manner which permits compliance with the ADA and is hereby amended to permit such
compliance. Landlord represents and warrants to Tenant that to the best of Landlord’s knowledge,
the Premises and Common Areas are ADA compliant at the commencement of the Lease.

22. Events of Default.

A. The following events shall be deemed to be “Events of Default” under this Lease:

	 	(1)	 	Tenant shall fail to pay within fifteen (15) days after due any
Base Rent, Additional Rent or other amount payable by Tenant to Landlord under
this Lease (hereinafter sometimes referred to as a “Monetary Default”).
	 
	 	(2)	 	Any material failure by Tenant (other than a Monetary Default)
to comply with any term, provision or covenant of this Lease, which failure is
not cured within thirty (30) days after delivery to Tenant of notice of the
occurrence of such failure provided, however, that if the term, condition,
covenant or obligation to be performed by Tenant is of such nature that the
same cannot reasonably be performed within such thirty-day period, such default
shall be deemed to have been cured if Tenant commences such performance within
said thirty-day period and thereafter diligently undertakes to complete the
same.
	 
	 	(3)	 	Any material failure by Tenant to observe or perform any of the
covenants with respect to (a) assignment and subletting set forth in Section
13, (b) mechanic’s liens set forth in Section 14, or (c) insurance set forth in
Section 15.
	 
	 	(4)	 	Tenant shall (a) become insolvent, (b) make a transfer in fraud
of creditors (c) make an assignment for the benefit of creditors, (d) admit in
writing its inability to pay its debts as they become due, (e) file a petition
under any section or chapter of the United States Bankruptcy Code, as amended,
pertaining to bankruptcy, or under any similar law or statute of the United
States or any State thereof, or Tenant shall be adjudged bankrupt or insolvent
in proceedings filed against Tenant thereunder; or a petition or answer
proposing the adjudication of Tenant as a bankrupt or its reorganization under
any present or future federal or state bankruptcy or similar law shall be filed
in any court and such petition or answer shall not be discharged or denied
within sixty (60) days after the filing thereof.
	 
	 	(5)	 	A receiver or trustee shall be appointed for all or
substantially all of the assets of Tenant or of the Premises or of any of
Tenant’s property located thereon in any proceeding brought by Tenant, or any
such receiver or trustee shall be appointed in any proceeding brought against
Tenant and shall not be discharged within sixty (60) days after such
appointment or Tenant shall consent to or acquiesce in such appointment.
	 
	 	(6)	 	The leasehold estate hereunder shall be taken on execution or
other process of law in any action against Tenant.

18.

 

	 	(7)	 	Tenant shall abandon the Premises.
	 
	 	(8)	 	The liquidation, termination, dissolution, forfeiture of right
to do business or death of Tenant.

23. Remedies.

A. Upon the occurrence of any Event of Default, Landlord shall have the following rights and
remedies, in addition to those allowed by law or equity, any one or more of which may be
exercised without further notice to or demand upon Tenant and which may be pursued
successively or cumulatively as Landlord may elect:

	 	(1)	 	Landlord may re-enter the Premises and cure any default of
Tenant, in which event Tenant shall, upon demand, reimburse Landlord as
Additional Rent for any cost and expenses which Landlord may incur to cure such
default; and Landlord shall not be liable to Tenant for any loss or damage
which Tenant may sustain by reason of Landlord’s action, regardless of whether
caused by Landlord’s negligence or otherwise.
	 
	 	(2)	 	Landlord may terminate this Lease by giving to Tenant 30 days’
notice of Landlord’s election to do so, in which event the Term shall end, and
all right, title and interest of Tenant hereunder shall expire, on the date
stated in such notice;
	 
	 	(3)	 	Landlord may terminate the right of Tenant to possession of the
Premises without terminating this Lease by giving notice to Tenant that
Tenant’s right to possession shall terminate on the date stated in such notice,
whereupon the right of Tenant to possession of the Premises or any part thereof
shall cease on the date stated in such notice; and
	 
	 	(4)	 	Landlord may enforce the provisions of this Lease and may
enforce and protect the rights of Landlord hereunder by a suit or suits in
equity or at law for the specific performance of any covenant or agreement
contained herein, or for the enforcement of any other appropriate legal or
equitable remedy, including recovery of all moneys due or to become due from
Tenant under any of the provisions of this Lease.

Landlord shall not be required to serve Tenant with any notices or demands as a prerequisite
to its exercise of any of its rights or remedies under this Lease, other than those notices
and demands specifically required under this Lease. TENANT WAIVES ANY RIGHT TO TRIAL BY
JURY IN ANY LAWSUIT BROUGHT BY LANDLORD TO RECOVER POSSESSION OF THE PREMISES FOLLOWING
LANDLORD’S TERMINATION OF THIS LEASE PURSUANT TO SECTION 23A(2) OR THE RIGHT OF TENANT TO
POSSESSION OF THE PREMISES PURSUANT TO SECTION 23A(3) AND ON ANY CLAIM FOR DELINQUENT RENT
WHICH LANDLORD MAY JOIN IN ITS LAWSUIT TO RECOVER POSSESSION.

B. If Landlord exercises either of the remedies in Sections 23.A.(2) and 23.A(3), Tenant
shall surrender possession and vacate the Premises and immediately deliver possession
thereof to Landlord, and Landlord may re-enter and take complete and peaceful possession of
the Premises, with process of law, full and complete license to do so being hereby granted
to Landlord. If this Lease is terminated by Landlord pursuant to Section 23.A.(2), Landlord
shall be entitled to

19.

 

recover from Tenant all Rent accrued and unpaid for the period up to and including such
termination date, as well as all other additional sums payable by Tenant, or for which
Tenant is liable or for which Tenant has agreed to indemnify Landlord under any of the
provisions of this Lease, which may be then owing and unpaid, and all costs and expenses,
including reasonable court costs and attorneys’ fees incurred by Landlord in the enforcement
of its rights and remedies hereunder, and, in addition, Landlord shall be entitled to
recover as damages for loss of the bargain and not as a penalty (i) the unamortized portion
(such amortization period shall not exceed ten (10) years) of any concessions offered by
Landlord to Tenant in connection with this Lease, including without limitation Landlord’s
contribution to the cost of tenant improvements and alterations, if any, installed by either
Landlord or Tenant pursuant to this Lease or any work letter in connection with this Lease,
(ii) the aggregate sum which at the time of such termination represents the excess, if any,
of the present value of the aggregate rents which would have been payable after the
termination date had this Lease not been terminated, including, without limitation, Base
Rent at the annual rate or respective annual rates for the remainder of the Term provided
for in this Lease and the amount projected by Landlord to represent Additional Rent for the
remainder of the Term over the then present value of the then aggregate fair rent value of
the Premises for the balance of the Term, such present worth to be computed in each case on
the basis of a ten percent (10%) per annum discount from the respective dates upon which
such Rents would have been payable hereunder had this Lease not been terminated, and (iii)
any damages in addition thereto, including without limitation reasonable attorneys’ fees and
court costs, which Landlord sustains as a result of the breach of any of the covenants of
this Lease other than for the payment of Rent.

C. Landlord shall use commercially reasonable efforts to mitigate any damages resulting from
an Event of Default by Tenant under this Lease. Landlord’s obligation to mitigate damages
after an Event of Default by Tenant under this Lease shall be satisfied in full if Landlord
undertakes to lease the Premises to another tenant (a “Substitute Tenant”) in accordance
with the following criteria:

	 	(1)	 	Landlord shall not be obligated to lease the Premises to a
Substitute Tenant for a Rent less than the current fair market Rent then
prevailing for similar uses in comparable buildings in the same market area as
the Building, nor shall Landlord be obligated to enter into a new lease under
other terms and conditions that are unacceptable to Landlord under Landlord’s
then current leasing policies for comparable space in the Building;
	 
	 	(2)	 	Landlord shall not be obligated to enter into a lease with a
Substitute Tenant whose use would:

	 	(i)	 	violate any restriction, covenant, or
requirement contained in the lease of another tenant of the Building;
	 
	 	(ii)	 	adversely affect the reputation of the
Building; or
	 
	 	(iii)	 	be incompatible with the operation of the
Building as an office building;

	 	(3)	 	Landlord shall not be obligated to enter into a lease with any
proposed Substitute Tenant which does not have, in Landlord’s reasonable
opinion, sufficient financial resources to operate the Premises in a first
class manner; and

20.

 

	 	(4)	 	Landlord shall not be required to expend any amount of money to
alter, remodel, or otherwise make the Premises suitable for use by a proposed
Substitute Tenant unless:

	 	(i)	 	Tenant pays any such sum to Landlord in advance
of Landlord’s execution of a lease with such tenant (which payment
shall not be in lieu of any damages or other sums to which Landlord may
be entitled as a result of Tenant’s default under this Lease); or
	 
	 	(ii)	 	Landlord, in Landlord’s reasonable discretion,
determines that any such expenditure is financially justified in
connection with entering into any such substitute lease.

D. If Tenant is adjudged bankrupt, or a trustee in bankruptcy is appointed for Tenant,
Landlord and Tenant, to the extent permitted by law, agree to request that the trustee in
bankruptcy determine within sixty (60) days thereafter whether to assume or to reject this
Lease.

E. The receipt by Landlord of less than the full rent due shall not be construed to be other
than a payment on account of rent then due, nor shall any statement on Tenant’s check or any
letter accompanying Tenant’s check be deemed an accord and satisfaction, and Landlord may
accept such payment without prejudice to Landlord’s right to recover the balance of the rent
due or to pursue any other remedies provided in this lease. The acceptance by Landlord of
rent hereunder shall not be construed to be a waiver of any breach by Tenant of any term,
covenant or condition of this Lease. No act or omission by Landlord or its employees or
agents during the term of this Lease shall be deemed an acceptance of a surrender of the
Premises, and no agreement to accept such a surrender shall be valid unless in writing and
signed by Landlord.

F. In the event of any litigation between Tenant and Landlord to enforce any provision of
this Lease or any right of either party hereto, the unsuccessful party to such litigation
shall pay to the successful party all costs and expenses, including reasonable attorney’s
fees, incurred therein. If Tenant, without fault, is made party to any litigation
instituted by or against Landlord, Landlord shall indemnify Tenant against, and protect,
defend, and save it harmless from, all costs and expenses, including reasonable attorney’s
fees, incurred by it in connection therewith.

24. No Waiver. Failure of Landlord to declare any default immediately upon its occurrence, or
delay in taking any action in connection with an Event of Default, shall not constitute a waiver of
such default, nor shall it constitute an estoppel against Landlord, but Landlord shall have the
right to declare the default at any time and take such action as is lawful or authorized under this
Lease. Failure by Landlord to enforce its rights with respect to any one default shall not
constitute a waiver of its rights with respect to any subsequent default.

25. Peaceful Enjoyment. Tenant shall, and may peacefully have, hold, occupy, use and enjoy the
Premises during the Lease Term, subject to the other terms hereof, provided that Tenant pays the
Rent and other sums herein recited to be paid by Tenant and timely performs all of Tenant’s
covenants and agreements herein contained.

26. Substitution. Intentionally Omitted.

27. Holding Over. In the event of holding over by Tenant after expiration or other termination of
this Lease or in the event Tenant continues to occupy the Premises after the termination of
Tenant’s right of possession pursuant to Section 23.A(3) hereof, occupancy of the Premises
subsequent to such

21.

 

termination or expiration shall be that of a tenancy at sufferance and in no event for
month-to-month or year-to-year. Tenant shall, throughout the entire holdover period, be subject to
all the terms and provisions of this Lease and shall pay for its use and occupancy an amount (on a
per month basis without reduction for any partial months during any such holdover) equal to the
same monthly amount as was being paid prior to the holding over for up to ninety (90) days, and
125%) of (a) the greater of then current market rate, or (b) the Base Rent and Additional Rent
which would have been applicable had the Lease Term continued through the period of such holding
over by Tenant. No holding over by Tenant or payments of money by Tenant to Landlord after the
expiration of the Lease Term shall be construed to extend the Lease Term or prevent Landlord from
recovery of immediate possession of the Premises by summary proceedings or otherwise unless
Landlord has sent written notice to Tenant that Landlord has elected to extend the Lease Term. In
addition to the obligation to pay the amounts set forth above during any such holdover period,
Tenant shall also be liable to Landlord for all damages, including, any consequential damages,
which Landlord may suffer by reason of any holding over by Tenant and Tenant shall also indemnify
Landlord against any and all claims made by any other tenant or prospective tenant against Landlord
for delay by Landlord in delivering possession of the Premises to such other tenant or prospective
tenant.

28. Subordination
to Mortgage/Estoppel Certificate. Tenant accepts this Lease subject and subordinate
to any mortgage, deed of trust or other lien presently existing or hereafter arising upon the
Premises, or upon the Building and/or the Property and to any renewals, modifications, refinancings
and extensions thereof, but Tenant agrees that any such mortgagee shall have the right at any time
to subordinate such mortgage, deed of trust or other lien to this Lease on such terms and subject
to such conditions as such mortgagee may deem appropriate in its discretion. Upon Tenant entering
a subordination and nondisturbance agreement with the mortgagee, in the event such mortgagee
forecloses on the Building, this Lease shall remain in full force and effect and provided that
Tenant is not in default hereunder, Tenant’s leasehold interest hereunder shall not be disturbed.
The provisions of the foregoing sentence shall be self-operative and no further instrument of
subordination shall be required. However, Landlord is hereby irrevocably vested with full power
and authority to subordinate this Lease to any mortgage, deed of trust or other lien now existing
or hereafter placed upon the Premises, or the Building and/or the Property and Tenant agrees within
twenty (20) days after demand to execute such further instruments subordinating this Lease or
attorning to the holder of any such liens as Landlord may request. The terms of this Lease are
subject to approval by the Landlord’s existing lender(s) and any lender(s) who, at the time of the
execution of this Lease, have committed or are considering committing to Landlord to make a loan
secured by all or any portion of the Property, and such approval is a condition precedent to
Landlord’s obligations hereunder. In the event that Tenant should fail to execute any
subordination or other agreement required by this Section promptly as requested, Tenant hereby
irrevocably constitutes Landlord as its attorney-in-fact to execute such instrument in Tenant’s
name, place and stead, it being agreed that such power is one coupled with an interest in Landlord
and is accordingly irrevocable. Tenant agrees that it will from time-to-time upon request by
Landlord execute and deliver to such persons as Landlord shall request a statement in recordable
form certifying that this Lease is unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as so modified), stating the dates to
which rent and other charges payable under this Lease have been paid, stating that Landlord is not
in default hereunder (or if Tenant alleges a default stating the nature of such alleged default)
and further stating such other matters as Landlord shall reasonably require. Tenant agrees
periodically to furnish within twenty (20) days after so requested by Landlord, ground lessor or
the holder of any deed of trust, mortgage or security agreement covering the Building, the
Property, or any interest of Landlord therein, a certificate signed by Tenant certifying (a) that
this Lease is in full force and effect and unmodified (or if there have been modifications, that
the same is in full force and effect as modified and stating the modifications), (b) as to the
Commencement Date and the date through which Base Rent and Tenant’s Additional Rent have been paid,
(c) that Tenant has accepted possession of the Premises and that any improvements required by the
terms of this Lease to be made by

22.

 

Landlord have been completed to the satisfaction of Tenant, (d) that except as stated in the
certificate no rent has been paid more than thirty (30) days in advance of its due date, (e) that
the address for notices to be sent to Tenant is as set forth in this Lease (or has been changed by
notice duly given and is as set forth in the certificate), (f) that except as stated in the
certificate, Tenant, as of the date of such certificate, has no charge, lien, or claim of offset
against rent due or to become due, (g) that except as stated in the certificate, Landlord is not
then in default under this Lease, (h) as to the amount of the Approximate Rentable Area of the
Premises then occupied by Tenant, (i) that there are no renewal or extension options, purchase
options, rights of first refusal or the like in favor of Tenant except as set forth in this Lease,
j) the amount and nature of accounts payable to Landlord under terms of this Lease, and (k) as to
such other matters as may be requested by Landlord or ground lessor or the holder of any such deed
of trust, mortgage or security agreement. Any such certificate may be relied upon by any ground
lessor, prospective purchaser, secured party, mortgagee or any beneficiary under any mortgage, deed
of trust on the Building or the Property or any part thereof or interest of Landlord therein.

29. Notice. Any notice required or permitted to be given under this Lease or by law shall be
deemed to have been given if it is written and delivered in person or given by facsimile
transmittal, mailed by Express or Certified mail, postage prepaid, or sent by a nationally
recognized overnight delivery service to the party who is to receive such notice at the address
specified in Section 1.Q. of this Lease. Notice shall be effective upon receipt or the refusal to
accept delivery. When sent by overnight delivery service, the notice shall be deemed to have been
given on the next business day after deposit with such overnight delivery service. If delivered by
facsimile transmittal, notice shall be deemed to have been given upon telephone confirmation of
receipt. The address specified in Section 1.Q. of this Lease may be changed from time to time by
giving written notice thereof to the other party.

30. Landlord’s Lien. Landlord hereby waives any statutory landlord’s lien against Tenant’s
personal property.

31. Surrender of Premises. Upon the termination, whether by lapse of time or otherwise, or upon
any termination of Tenant’s right to possession without termination of the Lease, Tenant will at
once surrender possession and vacate the Premises, together with all Leasehold Improvements (except
those Leasehold Improvements Tenant is required to remove pursuant to Section 8 hereof), to
Landlord in good condition and repair, ordinary wear and tear excepted; conditions existing because
of Tenant’s failure to perform maintenance, repairs or replacements as required of Tenant under
this Lease shall not be deemed “reasonable wear and tear.” Tenant shall surrender to Landlord all
keys to the Premises and make known to Landlord the explanation of all combination locks which
Tenant is permitted to leave on the Premises. Subject to the Landlord’s rights under Section 23
hereof, if Tenant fails to remove any of Tenant’s Property within ten (10) days after the
termination of this Lease, or Tenant’s right to possession hereunder, Landlord, at Tenant’s sole
cost and expenses, shall be entitled to remove and/or store such Tenant’s Property and Landlord
shall be in no event be responsible for the value, preservation or safekeeping thereof. Tenant
shall pay Landlord, upon demand, any and all reasonable expenses caused by such removal and all
storage charges against such property so long as the same shall be in possession of Landlord or
under the control of Landlord.

32. Rights Reserved to Landlord. Landlord reserves the following rights, exercisable without
notice, except as provided herein, and without liability to Tenant for damage or injury to
property, person or business and without affecting an eviction or disturbance of Tenant’s use or
possession or giving rise to any claim for setoff or abatement of rent or affecting any of Tenant’s
obligations under this Lease: (1) upon thirty (30) days prior notice to change the name of the
Building; (2) to install and maintain signs on the exterior and interior of the Building; (3) to
designate and approve window coverings to present a uniform exterior appearance; (4) to make any
decorations, alterations,
additions, improvements to the Building or Property, or any part thereof (including, with thirty
(30) days prior written notice, the

23.

 

Premises) which Landlord shall desire, or deem necessary for the safety, protection, preservation
or improvement of the Building or Property, or as Landlord may be required to do by law; (5) to
have access to the Premises at reasonable hours to perform its duties and obligations and to
exercise its rights under this Lease; (6) to retain at all times and to use in appropriate
instances, pass keys to all locks within and to the Premises; (7) to approve the weight, size, or
location of heavy equipment, or articles within the Premises; (8) to close or restrict access to
the Building at all times other than Normal Business Hours subject to Tenant’s right to admittance
at all times under such reasonable regulations as Landlord may prescribe from time to time, or to
close (temporarily) any of the entrances to the Building; provided Landlord shall have the right to
restrict or prohibit access to the Building or the Premises at any time Landlord determines it is
reasonably necessary to do so to minimize the risk of injuries or death to persons or damage to
property; (9) to change the arrangement and/or location of entrances of passageways, doors and
doorways, corridors, elevators, stairs, toilets and public parts of the Building or Property; (10)
to reasonably regulate access to telephone, electrical and other utility closets in the Building
and to require use of designated contractors for any work involving access to the same; (11) if
Tenant has vacated the Premises during the last six (6) months of the Lease Term, to perform
additions, alterations and improvements to the Premises in connection with a reletting or
anticipated reletting thereof without being responsible or liable for the value or preservation of
any then existing improvements to the Premises; and (12) to grant to anyone the exclusive right to
conduct any business or undertaking in the Building (excluding the Premises) provided Landlord’s
exercise of its rights under this clause 12, shall not be deemed to prohibit Tenant from the
operation of its business in the Premises and shall not constitute a constructive eviction.

33. Miscellaneous.

A. If any term or provision of this Lease, or the application thereof to any person or
circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease,
or the application of such term or provision to persons or circumstances other than those as
to which it is held invalid or unenforceable, shall not be affected thereby, and each term
and provision of this Lease shall be valid and enforced to the fullest extent permitted by
law.

B. Tenant agrees not to record this Lease or any short form or memorandum hereof, except to
the extent that Tenant is required to by law or regulation.

C. This Lease and the rights and obligations of the parties hereto shall be interpreted,
construed, and enforced in accordance with the laws of the state in which the Building is
located.

D. Events of “Force Majeure” shall include strikes, riots, acts of God, shortages of labor
or materials, war, governmental laws, regulations or restrictions, or any other cause
whatsoever beyond the control of Landlord or Tenant, as the case may be. Whenever a period
of time is herein prescribed for the taking of any action by Landlord or Tenant (other than
the payment of Rent and all other such sums of money as shall become due hereunder), such
party shall not be liable or responsible for, there shall be excluded from the computation
of such period of time, any delays due to events of Force Majeure.

E. Except as expressly otherwise herein provided, with respect to all required acts of
Tenant and Landlord, time is of the essence of this Lease.

F. Landlord shall have the right to transfer and assign, in whole or in part, all of its
rights and obligations hereunder and in the Building and Property referred to herein, and in
such event and upon such transfer Landlord shall be released from any further obligations
hereunder, and

24.

 

Tenant agrees to look solely to such successor in interest of Landlord for the performance
of such obligations.

G. Landlord and Tenant hereby represent that they have dealt directly with and only with the
Broker as a broker in connection with this Lease. Landlord and Tenant hereby indemnify and
hold each other harmless against any loss, claim, expense or liability with respect to any
commissions or brokerage fees claimed on account of the execution and/or renewal of this
Lease due to any action of the indemnifying party.

H. If there is more than one Tenant, or if the Tenant as such is comprised of more than one
person or entity, the obligations hereunder imposed upon Tenant shall be joint and several
obligations of all such parties. All notices, payments, and agreements given or made by,
with or to any one of such persons or entities shall be deemed to have been given or made
by, with or to all of them.

I. The individual signing this Lease on behalf of Tenant represents (1) that such individual
is duly authorized to execute or attest and deliver this Lease on behalf of Tenant in
accordance with the organizational documents of Tenant; (2) that this Lease is binding upon
Tenant; (3) that Tenant is duly organized and legally existing in the state of its
organization, and is qualified to do business in the state in which the Premises is located.

J. Tenant acknowledges that the financial capability of Tenant to perform its obligations
hereunder is material to Landlord and that Landlord would not enter into this Lease but for
its belief, based on its review of Tenant’s financial statements, that Tenant is capable of
performing such financial obligations. Tenant hereby represents, warrants and certifies to
Landlord that its financial statements previously furnished to Landlord were at the time
given true and correct in all material respects and that there have been no material
subsequent changes thereto as of the date of this Lease.

K. Notwithstanding anything to the contrary contained in this Lease, the expiration of the
Lease Term, whether by lapse of time or otherwise, shall not relieve Tenant from Tenant’s
obligations accruing prior to the expiration of the Lease Term, and such obligations shall
survive any such expiration or other termination of the Lease Term.

L. Landlord has delivered a copy of this Lease to Tenant for Tenant’s review only, and the
delivery hereof does not constitute an offer to Tenant or an option. This Lease shall not
be effective until an original of this Lease executed by both Landlord and Tenant is
delivered to and accepted by Landlord, and this Lease has been approved by Landlord’s
mortgagee, if required.

M. Landlord and Tenant understand, agree and acknowledge that (i) this Lease has been freely
negotiated by both parties; and (ii) in any controversy, dispute or contest over the
meaning, interpretation, validity, or enforceability of this Lease or any of its terms or
conditions, there shall be no inference, presumption, or conclusion drawn whatsoever against
either party by virtue of that party having drafted this Lease or any portion thereof.

N. The headings and titles to the paragraphs of this Lease are for convenience only and
shall have no affect upon the construction or interpretation of any part hereof.

O. Receipt by Landlord of Tenant’s keys to the Premises shall not constitute an acceptance
of surrender of the Premises.

25.

 

34. Entire Agreement. This Lease, including the following Exhibits:

Exhibit A-1 — Outline and Location of Premises

Exhibit B-1 — Rules and Regulations

Exhibit C-1 — Payment of Basic Costs

Exhibit D-1 — Work Letter

Exhibit E-1 — Additional Provisions (if required)

Exhibit F-1 — Commencement Letter (Sample)

constitutes the entire agreement between the parties hereto with respect to the subject matter of
this Lease and supersedes all prior agreements and understandings between the parties related to
the Premises, including all lease proposals, letters of intent and similar documents. Tenant
expressly acknowledges and agrees that Landlord has not made and is not making, and Tenant, in
executing and delivering this Lease, is not relying upon, any warranties, representations, promises
or statements, except to the extent that the same are expressly set forth in this Lease. All
understandings and agreements heretofore had between the parties are merged in this Lease which
alone fully and completely expresses the agreement of the parties, neither party relying upon any
statement or representation not embodied in this Lease. This Lease may be modified only by a
written agreement signed by Landlord rind Tenant. Landlord and Tenant expressly agree that there
are none and shall be no implied warranties of merchantability, habitability, suitability, fitness
for a particular purpose or of any other kind arising out of this Lease, all of which are hereby
waived by Tenant, and that there are no warranties which extend beyond those expressly set forth in
this Lease.

35. Structural or Latent Defects. Notwithstanding anything to the contrary in this Agreement,
Landlord, shall be responsible for the repair of all latent or patent structural defects in the
Building during the Lease Term; provided however Landlord may tender the repair to third parties
who are responsible for such defects. Any cost incurred by the Landlord under this provision shall
not be included in the Basic Costs.

36. LIMITATION OF LIABILITY. EXCEPT TO THE EXTENT SPECIFICALLY ADDRESSED HEREIN, TENANT SHALL NOT
HAVE THE RIGHT TO AN ABATEMENT OF RENT AS A RESULT OF LANDLORD’S DEFAULT AS TO ANY COVENANT OR
AGREEMENT CONTAINED IN THIS LEASE OR AS A RESULT OF THE BREACH OF ANY PROMISE OR INDUCEMENT IN
CONNECTION HEREWITH, WHETHER IN THIS LEASE OR ELSEWHERE AND TENANT HEREBY WAIVES SUCH REMEDIES OF
ABATEMENT OF RENT. TENANT HEREBY COVENANTS THAT, PRIOR TO THE FILING OF ANY SUIT FOR DIRECT AND
PROXIMATE DAMAGES, IT SHALL GIVE LANDLORD AND ALL MORTGAGEES WHOM TENANT HAS BEEN NOTIFIED HOLD
MORTGAGES OR DEED OF TRUST LIENS ON THE PROPERTY, BUILDING OR PREMISES (“LANDLORD MORTGAGEES”)
NOTICE AND REASONABLE TIME TO CURE ANY ALLEGED DEFAULT BY LANDLORD.

26.

 

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease in multiple original counterparts
as of the day and year first above written.

LANDLORD:

JL Ventures LLC, Harkonnen Acquisitions LLC,

L Metro LLC, and Bello LLC, all known as MBP Co-Tenancy

By: Harkonnen Acquisitions LLC, Co-Tenant

	 	 	 	 	 
	By:
	 	/s/ Stuart Bond	 	 
	Name:

	 	 
Stuart Bond
	 	 
	Title:

	 	 
Managing
Member
	 	 
	 

	 	 

	 	 

TENANT:

	 	 	 	 	 
	By:
	 	/s/ Robert Lippert	 	 
	Name:

	 	 
Robert Lippert
	 	 
	Title:

	 	 
President
and CEO
	 	 
	 

	 	 

	 	 

27.

 

Exhibit A

OUTLINE AND LOCATION OF PREMISES

This
Exhibit is attached to and made a part of the Lease dated 7/18, 2006 by and between
JL Ventures LLC, Harkonnen Acquisitions, L Metro LLC, and Bello LLC, each an Alaska limited
liability company, collectively known as MBP Co-Tenancy (“Landlord”) and ZARS, Inc. (“Tenant”) for
space in Building D.

A-1

 

Exhibit B

RULES AND REGULATIONS

The following rules and regulations shall apply, where applicable, to the Premises, the Building,
the parking area associated therewith (if any), the Property and the appurtenances thereto:

	1.	 	Sidewalks, entrances, passageways, courts, corridors, vestibules, halls, elevators and
stairways in and about the Building shall not be obstructed nor shall objects be placed
against glass partitions, doors or windows which would be unsightly from the Building’s
corridors from the exterior of the Building.
	 
	2.	 	Plumbing, fixtures and appliances shall be used for only the purpose for which they were
designed and no foreign substance of any kind whatsoever shall be thrown or placed therein.
Damage resulting to any such fixtures or appliances from misuse by Tenant or its agents,
employees or invitees, shall be paid for by Tenant and Landlord shall not in any case be
responsible therefor.
	 
	3.	 	Any sign, lettering, picture, notice, advertisement installed within the Premises which is
visible from the public corridors within the Building shall be installed in such manner, and
be of such character and style, as Landlord shall approve, in writing in its reasonable
discretion. No sign, lettering, picture, notice or advertisement shall be placed on any
outside window or door or in a position to be visible from outside the Building. No nails,
hooks or screws (except for customary artwork or wall hangings) shall be driven or inserted
into any part of the Premises or Building except by Building maintenance personnel, nor shall
any part of the Building be defaced or damaged by Tenant.
	 
	4.	 	Tenant shall not place any additional lock or locks on any door in the Premises or Building
without Landlord’s prior written consent. A reasonable number of keys to the locks on the
doors in the Premises shall be furnished by Landlord to Tenant at the cost of Tenant, and
Tenant shall not have any duplicate keys made. All keys and passes shall be returned to
Landlord at the expiration or earlier termination of this Lease.
	 
	5.	 	Tenant shall refer all contractors, contractor’s representatives and installation technicians
for Landlord for Landlord’s supervision, approval and control before the performance of any
contractual services. This provision shall apply to all work performed in the Building
including, but not limited to installation of telephones, telegraph equipment, electrical
devices and attachments, doors, entranceways, and any and all installations of every nature
affecting floors, walls, woodwork, window trim, ceilings, equipment and any other physical
portion of the Building. Tenant shall not waste electricity, water or air conditioning. All
controls shall be adjusted only by Building personnel.
	 
	6.	 	Movement in or out of the Building of furniture or office equipment, or dispatch or receipt
by Tenant of any merchandise or materials which require the use of elevators, stairways, lobby
areas, or loading dock areas, shall be restricted to hours designated by Landlord. Tenant
must seek Landlord’s prior approval by providing in writing a detailed listing of such
activity. If approved by Landlord, such activity shall be under the supervision of Landlord
and performed in the manner stated by Landlord. Tenant is to assume all risk for damage to
articles moved and injury to persons resulting from such activity. If any equipment, property
and/or personnel of Landlord

B-1

 

	 	 	or of any other tenant is damaged or injured as a result of or in connection with such
activity, Tenant shall be solely liable for any and all damage or loss resulting therefrom.

	7.	 	All corridor doors, when not in use, shall remain closed. Tenant shall cause all doors to
the Premises to be closed and securely locked before leaving the Building at the end of the
day.
	 
	8.	 	Tenant shall keep all electrical and mechanical apparatus owned by Tenant free of vibration,
noise and airwaves which may be transmitted beyond the Premises.
	 
	9.	 	Canvassing, soliciting and peddling in or about the Building or Property is prohibited.
Tenant shall cooperate and use its best efforts to prevent the same.
	 
	10.	 	Tenant shall not use the Premises in any manner which would overload the standard heating,
ventilating or air conditioning systems of the Building.
	 
	11.	 	Tenant shall not utilize any equipment or apparatus in such manner as to create any magnetic
fields or waves which adversely affect or interfere with the operation of any systems or
equipment in the Building or Property.
	 
	12.	 	Bicycles and other vehicles are not permitted inside or on the walkways outside the Building,
except in those areas specifically designated by Landlord for such purposes.
	 
	13.	 	Tenant shall not operate or permit to be operated on the Premises any coin or token operated
vending machine or similar device (including, without limitation, telephones, lockers,
toilets, scales, amusements devices and machines for sale of beverages, foods, candy,
cigarettes or other goods), except for those vending machines or similar devices which are for
the sole and exclusive use of Tenant’s employees.
	 
	14.	 	Tenant shall not open or permit to be opened any window in the Premises. This provision
shall not be construed as limiting access of Tenant to any balcony adjoining the Premises.
	 
	15.	 	To the extent permitted by law, Tenant shall not permit picketing or other union activity
involving its employees or agents in the Building or on the Property, except in those
locations and subject to time and other constraints as to which Landlord may give its prior
written consent, which consent may be withheld in Landlord’ sole discretion.
	 
	16.	 	Tenant shall comply with all applicable laws, ordinances, governmental orders or regulations
and applicable orders or directions from any public office or body having jurisdiction, with
respect to the Premises, the Building, the Property and their respective use or occupancy
thereof. Tenant shall not make or permit any use of the Premises, the Building or the
Property, respectively, which is directly or indirectly forbidden by law, ordinance,
governmental regulation or order, or direction of applicable public authority, or which may be
dangerous to person or property.
	 
	17.	 	Tenant shall not use or occupy the Premises in any manner or for any purpose which would
injure the reputation or impair the present or future value of the Premises, the Building or
the Property; without limiting the foregoing, Tenant shall not use or permit the Premises or
any portion thereof to be used for lodging, sleeping or for any illegal purpose.
	 
	18.	 	All deliveries to or from the Premises shall be made only at times, in the areas and through
the entrances and exits designated for such purposes by Landlord. Tenant shall not permit the
process of receiving deliveries to or from the Premises outside of said areas or in a manner
which

B-2

 

	 	 	may interfere with the use by any other tenant of its premises or any common areas, any
pedestrian use of such area, or any use which is inconsistent with good business practice.

	19.	 	Tenant shall carry out Tenant’s permitted repair, maintenance, alterations, and improvements
in the Premises only during times agreed to in advance by Landlord and in a manner which will
not interfere with the rights of other tenants in the Building.
	 
	20.	 	Landlord may from time to time adopt appropriate systems and procedures for the security or
safety of the Building, its occupants, entry and use, or its contents. Tenant, Tenant’s
agents, employees, contractors, guests and invitees shall comply with Landlord’s reasonable
requirements thereto.
	 
	21.	 	Landlord shall have the right to prohibit the use of the name of the Building or any other
publicity by Tenant that in Landlord’s opinion may tend to impair the reputation of the
Building or its desirability for Landlord or its other tenants. Upon written notice from
Landlord, Tenant will refrain from and/or discontinue such publicity immediately.
	 
	22.	 	Neither Tenant nor any of its employees, agents, contractors, invitees or customers shall
smoke in any area designated by Landlord (whether through the posting of a “no smoking” sign
or otherwise) as a “no smoking” area. In no event shall Tenant or any of its employees,
agents, contractors, invitees or customers smoke in the hallways or bathrooms of the Building.
Landlord reserves the right to designate, from time to time, additional areas of the Building
and the Property as “no smoking “ areas and to designate the entire Building and the Property
as a “no smoking” area.

B-3

 

Exhibit C

PAYMENT OF BASIC COSTS

(USE FOR GROSS DEALS USING A BASE YEAR)

This
Exhibit is attached to and made a part of the Lease dated July 18, 2006 by and between
JL Ventures LLC, Harkonnen Acquisitions, L Metro LLC, and Bello LLC, each an Alaska limited
liability company, collectively known as MBP Co-Tenancy (“Landlord) and ZARS, Inc. (“Tenant”) for
space in Building D.

A. During each calendar year, or portion thereof, falling within the Lease Term, Tenant
shall pay to Landlord as Additional Rent hereunder Tenant’s Pro Rata Share of the amount by
which (a) Basic Costs (as defined below) for the applicable calendar year exceeds (b) Basic
Costs for 2007 (the “Base Year”). In no event shall the amount required to be paid by
Tenant with respect to Basic Costs for any calendar year during the Lease Term be less than
zero. Prior to January 1 of each calendar year during the Lease Term, or as soon thereafter
as practical, Landlord shall make a good faith estimate of Basic Costs for the applicable
full or partial calendar year and Tenant’s Pro Rata Share thereof. On or before the first
day of each month during such calendar year, Tenant shall pay Landlord, as Additional Rent,
a monthly installment equal to one-twelfth of Tenant’s Pro Rata Share of Landlord’s estimate
of the amount by which Basic Costs for such calendar year will exceed Basic Costs for the
Base Year. Landlord shall have the right from time to time during any such calendar year to
revise the estimate of Basic Costs for such year and provide Tenant with a revised
statements therefor (provided, however, Landlord agrees that Landlord shall not issue a
revised statement more than twice in any calendar year), and thereafter the amount Tenant
shall pay each month shall be based upon such revised estimate. If Landlord does not
provide Tenant with an estimate of the Basic Costs by January 1 of any calendar year, Tenant
shall continue to pay a monthly installment based on the previous year’s estimate until such
time as Landlord provides Tenant with an estimate of Basic Costs for the current year.
Landlord must provide Tenant with an estimate of Basic Costs for the current year by May
1st of that year. Upon receipt of such current year’s estimate, an adjustment
shall be made for any month during the current year with respect to which Tenant paid
monthly installments of Additional Rent based on the previous year’s estimate. Tenant shall
pay Landlord for any underpayment upon demand. Any overpayment in excess of the equivalent
of one (1) month’s Base Rent shall, at Landlord’s option, be refunded to Tenant or credited
against the installment(s) of Additional Rent next coming due under the Lease. Any
overpayment in an amount equal to or less than the equivalent of one (1) month’s Base Rent
shall, at Landlord’s option, be refunded to Tenant or credited against the installment of
Additional Rent due for the month immediately following the furnishing of such estimate.
Any amount paid by Tenant based on any estimate shall be subject to adjustment pursuant to
Paragraph A below, when actual Basic Costs are determined for such calendar year.

B. As soon as is practical following the end calendar year during the Lease Term, Landlord
shall furnish to Tenant a statement of Landlord’s actual Basic Costs for the previous
calendar year. If for any calendar year the Additional Rent collected for the prior year,
as a result of Landlord’s estimate of Basic Costs, is in excess of Tenant’s Pro Rata Share
of the amount by which Basic Costs for such prior year exceeds Basic Costs for the Base
Year, then Landlord shall refund to Tenant any overpayment (or at Landlord’s option apply
such amount against Additional Rent due). Likewise, Tenant shall pay to Landlord, on
demand, any underpayment with respect to the prior year whether or not the Lease has
terminated prior to receipt by Tenant of a statement

C-1

 

for such underpayment, it being understood that this clause shall survive the expiration of
the Lease. Notwithstanding anything herein to the contrary, Tenant shall have thirty (30)
days to pay such statement.

C. Basic Costs shall mean all reasonable direct and indirect costs, reasonable expenses paid
and disbursements of every kind (subject to the limitations set forth below) which Landlord
incurs, pays or becomes obligated to pay in each calendar year in connection with operating,
maintaining, repairing, owning and managing the Building and the Property including but not
limited to, the following:

	 	(1)	 	All labor costs for all persons performing services required or utilized in
connection with the operation, repair, replacement and maintenance of and control of
access to the Building and the Property, including but not limited to amounts incurred
for wages, salaries and other compensation for services, professional training,
payroll, social security, unemployment and other similar taxes, workers’ compensation
insurance, uniforms, training, disability benefits, pensions, hospitalization,
retirement plans, group insurance or any other similar or like expenses or benefits.
	 
	 	(2)	 	All management fees, the cost of equipping and maintaining a management office
at the Building, accounting services, legal fees not attributable to leasing and
collection activity, and all other administrative costs relating to the Building and
the Property, all limited to 5% of gross rent.
	 
	 	(3)	 	All Rent and/or purchase costs of materials, supplies, tools and equipment used
in the operation, repair, replacement and maintenance and the control of access to the
Building and the Property.
	 
	 	(4)	 	All amounts charged to Landlord by contractors and/or suppliers for services,
replacement parts, components, materials, equipment and supplies furnished in
connection with the operation, repair, maintenance, replacement and control of access
to any part of the Building, or the Property generally, including the heating, air
conditioning, ventilating, plumbing, electrical, elevator and other systems and
equipment of the Building and the parking areas. At Landlord’s option, major repair
items may be amortized over a period of up to five (5) years.
	 
	 	(5)	 	All premiums and deductibles paid by Landlord for fire and extended insurance
coverage, earthquake and extended coverage insurance, liability and extended coverage
insurance, Rent loss insurance, elevator insurance, boiler insurance and other
insurance customarily carried from time to time by landlords of comparable office
buildings or required to be carried by Landlord’s mortgagee.
	 
	 	(6)	 	Charges for all utilities, including but not limited to water, electricity, gas
and sewer, but excluding those electrical charges for which tenants are individually
responsible.
	 
	 	(7)	 	“Taxes,” which for purposes hereof, shall mean (a) all real estate taxes and
assessments on the Property, the Building or the Premises, and taxes and assessments
levied in substitution or supplementation in whole or in part of such taxes, (b) all
personal property taxes for the Building’s personal property, including license
expenses, (c) all taxes imposed on services of Landlord’s agents and employees, (d) all
sales, use or excise tax, excluding state and/or federal income tax law or hereafter
imposed by any governmental authority upon Rent received by Landlord, (e) all other
taxes, fees or assessments now or

C-2

 

	 	 	 	hereafter levied by any governmental authority on the Property, the Building or its
contents or on the operation and use thereof (except as relate to specific tenants),
and (f) all costs and fees incurred in connection with seeking reductions in or
refunds in Taxes including, without limitation, any costs incurred by Landlord to
challenge the tax valuation of the Building, but excluding income taxes. Estimates
of real estate taxes and assessments for any calendar year during the Lease Term
shall be determined based on Landlord’s good faith estimate of the real estate taxes
and assessments. Taxes and assessments hereunder are those accrued with respect to
such calendar year, as opposed to the real estate taxes and assessments paid or
payable for such calendar year.

	 	(8)	 	All landscape expenses and costs of repairing, resurfacing and striping of the
parking areas of the Property, if any.
	 
	 	(9)	 	Cost of all maintenance service agreements, including those for equipment,
alarm service, window cleaning, drapery or mini-blind cleaning, janitorial services,
metal refinishing, pest control, uniform supply, landscaping and any parking equipment.
The “Cleaning Schedule” shall be as provided inn
Exhibit E-1.
	 
	 	(10)	 	Cost of all other repairs, replacements and general maintenance of the Property
and Building neither specified above nor directly billed to tenants, including the cost
of maintaining all interior Common Areas including lobbies, multi-tenant hallways,
restrooms and service areas.
	 
	 	(11)	 	The amortized cost of capital improvements made to the Building or the Property
which are (a) primarily for the purpose of reducing operating expense costs or
otherwise improving the operating efficiency of the Property or Building; or (b)
required to comply with any laws, rules or regulations of any governmental authority or
a requirement of Landlord’s insurance carrier. The cost of such capital improvements
shall be amortized over a period of five (5) years, or longer (at Landlord’s reasonable
option) and shall, at Landlord’s option, include interest at a rate that is
reasonably equivalent to the interest rate that Landlord would be required to pay to
finance the cost of the capital improvement in question as of the date such capital
improvement is performed, provided if the payback period for any capital improvement is
less than five (5) years, Landlord may amortize the cost of such capital improvement
over the payback period.
	 
	 	(12)	 	Any other reasonable charge or expense of which, in accordance with general
industry practice with respect to the operation of a first class office building, would
be construed as an operating expense.

D. Basic Costs shall not include repairs and general maintenance paid from proceeds of
insurance or by a tenant or other third parties, and alterations attributable solely to
individual tenants of the Property. Further, Basic Costs shall not include the cost of
capital improvements (except as above set forth), depreciation, interest (except as provided
above with respect to the amortization of capital improvements), lease commissions, and
principal payments on mortgage and other non-operating debts of Landlord. Capital
improvements are more specifically defined as:

	 	(1)	 	Costs incurred in connection with the original construction of the Property or
with any major changes to same, including but no limited to, additions or deletions of
corridor extensions, renovations and improvements of the Common Areas beyond the costs

C-3

 

	 	 	 	caused by normal wear and tear, and upgrades or replacement of major Property
systems; and

	 	(2)	 	Costs of correcting defects (including latent defects), including any
allowances for same, in the construction of the Property or its related facilities; and
	 
	 	(3)	 	Costs incurred in renovating or otherwise improving, designing, redesigning,
decorating or redecorating space for tenants or other occupants of the Property or
other space leased or held for lease in the Property.

E. If the Building is not at least ninety-five percent (95%) occupied, in the aggregate,
during any calendar of the Lease term or if Landlord is not supplying services to at least
ninety-five percent (95%) of the Approximate Rentable Area of the Building at any time
during any calendar year of the Lease Term, actual Basic Costs for purposes hereof shall, be
determined as if the Building had been ninety-five percent (95%) occupied and Landlord had
been supplying services to ninety-five percent (95%) of the Approximate Rentable Area of the
Building during such year. If Tenant pays for its Pro Rata Share of Basic Costs based on
increases over a “Base Year” and Basic Costs for any calendar year during the Lease Term are
determined as provided in the foregoing sentence, Basic Costs for such Base Year shall also
be determined as if the Building and such other buildings had been ninety-five percent (95%)
occupied and Landlord had been supplying services to ninety-five percent (95%) of the
Approximate Rentable Area of the Building and such other buildings. Any necessary
extrapolation of Basic Costs that are affected by changes in the occupancy of the Building
and such other buildings (including, at Landlord’s option, Taxes) to the cost that would
have been incurred if the Building and such other buildings had been ninety-five percent
(95%) occupied and Landlord had been supplying services to ninety-five percent (95%) of the
Approximate Rentable Area of the Building,

IN WITNESS WHEREOF, Landlord and Tenant have executed this exhibit as of the day and year first
above written.

LANDLORD:

JL Ventures LLC, Harkonnen Acquisitions LLC,

L Metro LLC, and Bello LLC, all known as MBP Co-Tenancy

By: Harkonnen Acquisitions LLC, Co-Tenant

	 	 	 	 	 
	By:
	 	/s/ Stuart Bond	 	 
	 

	 	 	 	 
	Name:
	 	Stuart Bond	 	 
	 

	 	 	 	 
	Title:
	 	Managing Member	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	TENANT:	 	 
	ZARS, Inc.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Robert Lippert	 	 
	 

	 	 	 	 
	Name:
	 	Robert Lippert	 	 
	 

	 	 	 	 
	Title:
	 	President and CEO	 	 
	 

	 	 

	 	 

C-4

 

Exhibit D

WORK
LETTER

This
Exhibit is attached to and made a part of the Lease dated July 18, 2006 by and between
JL Ventures LLC, Harkonnen Acquisitions, L Metro LLC, and Bello LLC, each an Alaska limited
liability company, collectively known as MBP Co-Tenancy (“Landlord”) and ZARS, Inc. (“Tenant”) for
space in Building D.

Landlord at Landlord’s expense shall perform improvements to the Premises in accordance with the
work shown on Attachment D-1 (the “Worklist”). The improvements to be performed by Landlord in
accordance with the Worklist are hereinafter referred to as the “Landlord’s Work.” The Worklist
shall be completed with a turn key finish to building standard. Landlord shall enter into a direct
contract for the Landlord’s Work with a general contractor selected by Landlord. In addition,
Landlord shall have the right to select and/or approve of any subcontractors used in connection
with the Landlord’s Work.

If Tenant shall request any revisions to the Worklist, Landlord shall have such revisions prepared
at Tenant’s sole cost and expense and Tenant shall reimburse Landlord for the cost of preparing any
such revisions to the Worklist upon demand. Promptly upon completion of the revisions, Landlord
shall notify Tenant in writing of the increased cost in the Landlord’s Work, if any, resulting from
such revisions to the Worklist. Tenant shall, within three (3) Business Days, notify Landlord in
writing whether it desires to proceed with such revisions. In the absence of such written
authorization, Landlord shall have the option to continue work on the Premises disregarding the
requested revision. Tenant shall be responsible for any Delay in completion of the Premises
resulting from any revision to the Worklist. In the event such revisions result in an increase in
the cost of Landlord’s Work, such increased costs shall be payable by Tenant upon demand.
Notwithstanding anything herein to the contrary, all revisions to the Plans shall be subject to the
approval of Landlord.

This Exhibit D shall not be deemed applicable to any additional space added to the original
Premises at any time or from time to time, whether by any options under the Lease or otherwise, or
to any portion of the original Premises or any additions to the Premises in the event of a renewal
or extension of the original Term of this Lease, whether by any options under the Lease or
otherwise, unless expressly so provided in the Lease or any amendment or supplement to the Lease.

IN WITNESS WHEREOF, Landlord and Tenant have entered into this Exhibit D as of the day and year
first above written.

LANDLORD:

JL Ventures LLC, Harkonnen Acquisitions LLC,

L Metro LLC, and Bello LLC, all known as MBP Co-Tenancy

By: Harkonnen Acquisitions LLC, Co-Tenant

	 	 	 	 	 
	By:
	 	/s/ Stuart Bond	 	 
	 

	 	 	 	 
	Name:
	 	Stuart Bond	 	 
	 

	 	 	 	 
	Title:
	 	Managing Member	 	 
	 

	 	 	 	 

D-1-1

 

	 	 	 	 	 
	TENANT:	 	 
	 
	 	 	 	 
	By:
	 	/s/ Robert Lippert	 	 
	 

	 	 	 	 
	Name:
	 	Robert Lippert	 	 
	 

	 	 	 	 
	Title:
	 	CEO and President 	 	 
	 

	 	 

	 	 

D-1-2

 

Attachment D-1

WORKLIST

1. Demolition of existing walls and doors as shown on the attached D-2 Space Plan

2. Construct new walls as shown on the attached D-2 Space Plan; all brick will be furred up and
covered with gypsum; four comer executive offices and conference rooms to have sound insulation in
the walls; demountable walls shall be removed and/or covered with gypsum

3. (2) Secure document storage rooms-to have 2 hour fire protection on walls, ceiling and doors; no
sprinklers or only activated if there is a fire in the storage room

4. Replace damaged ceiling tiles

5. Doors-match existing with building standard

6. Storefront glass in wall separating lobby and conference room

7. Electrical-2 outlets for offices

8. Light switches-1 per office or room

9. Light fixtures relocated as needed

10. Paint with 2 colors maximum; all steel columns will be painted; colors subject to Landlord’s
approval

11. Plastic laminate cabinets and counter tops as shown on the attached Space Plan

12. HVAC-build to fit attached Space Plan; specs for service room A/C unit to be provided by Tenant

13. New carpet and base in Building standard

14. Fire sprinklers-to meet code if sprinklers exist

15. Restrooms upgraded, additional lighting, new sinks/faucets, new vent fans, floor cleaned,
stripped and sealed, and new upgraded sink cabinets

16. Re-use perimeter window blinds and replace where missing and/or broken

Building standards are attached in Attachment D-3.

In the event there is any contradiction in the quantity or quality of building materials used
and/or the scope of work to be performed, among Attachment D-1, Exhibit D-2, Exhibit E-1 or
Attachment D-3, then the highest quantity or quality of building materials used and/or scope of
work to be performed as indicated among such Attachments and Exhibits shall prevail.

D-1-3

 

Exhibit D-2

SPACE PLAN

In the event there is any contradiction in the quantity or quality of building materials used
and/or the scope of work to be performed, among Attachment D-1, Exhibit D-2, Exhibit E-1 or
Attachment D-3, then the highest quantity or quality of building materials used and/or scope of
work to be performed as indicated among such Attachments and Exhibits shall prevail.

D-2

 

 

 

Attachment D-3

BUILDING STANDARD TENANT IMPROVEMENTS

The “Building Standard Tenant Improvements” (herein so called) are the following

	 	 	 
	1. Flooring:

	 	Grade and quality of carpeting to be selected by
Landlord, with color to be selected by Tenant from those
offered by Landlord.
	 
	 	 
	2. Base:

	 	Carpet base (4”) to match carpeting selected by Tenant.
	 
	 	 
	 

	 	Grade and quality of rubber base, when applicable, to be
selected by Landlord.
	 
	 	 
	 

	 	Standard Specification: Johnsonite, 4” rubber base.
	 
	 	 
	3. Partitions:

	 	Demising Walls: 3-5/8” metal studs on 24” centers,
blanket sound insulation, 5/8” gypsum board on one side.
Studs and one layer of gypsum board extended to bottom
of steel deck on floor above.
	 
	 	 
	 

	 	Interior Walls: 3-5/8” metal studs on 24” centers, 5/8”
gypsum board on each side. Walls to be ceiling height
and braced as per code requirements.
	 
	 	 
	 

	 	All walls to be finished with tape, texture and paint.
	 
	 	 
	 

	 	Standard Paint Specification: Kwal-Howells 2800 Series,
Eggshell finish or Kwal-Howells 2300 Series, Semi-Gloss.
	 
	 	 
	4. Doors/Side Lights:

	 	3’-0” x 8’-0” solid core interior doors, 3’-0” x 8’-0”
exterior solid core flush wood doors with select cherry
veneer. Door frames are hollow metal. Glass
manufactured as per code requirements with hollow metal
frames. Standard hardware is Schlage, in light bronze.
	 
	 	 
	5. Ceiling:

	 	Armstrong RH90 Fireguard Tegular Lay-In, 24” x 24” for
use with 15/16” exposed tee grid.
	 
	 	 
	6. Electrical Outlets:

	 	Standard 110v duplex wall outlets.
	 
	 	 
	7. Light Switches:

	 	Single pole switches.
	 
	 	 
	8. Lighting Occupancy Sensor:

	 	Automatic lighting control device-Uneco conserver series.
	 
	 	 
	9. Light Fixtures:

	 	2’ x 4, (3) lamp, 18-cell parabolic, recessed ceiling
fixture. Grade and quality of fixture selected by
Landlord
	 
	 	 
	10. Fire Sprinkler Requirements:

	 	Design build per Landlord, except special requirements
of which the Tenant shall advise the Landlord.
	 
	 	 
	11. Window Coverings:

	 	Vertical roller shades.

In the event there is any contradiction in the quantity or quality of building materials used
and/or the scope of work to be performed, among Attachment D-1, Exhibit D-2, Exhibit E-1 or
Attachment D-3, then the highest quantity or quality of building materials used and/or scope of
work to be performed as indicated among such Attachments and Exhibits shall prevail.

D-3

 

EXHIBIT D-4

COMMON AREA IMPROVEMENTS

Landlord shall make the following improvements which shall be completed prior to the commencement
date of this Lease:

Install an elevator card access system for third floor access,

General Lobby Remodel

 — all areas will be painted with updated colors

 — floor treatments will be with updated materials and colors

West Lobby

 — planter boxes removed

 — new glass entry to the south office

 — new floor tile

 — new lighting where needed

 — updated paint

Corridors

 — new carpet

 — new ceiling tiles

 — new ceiling lighting

East Lobby

— same as west lobby

Restrooms

 — new fixtures

 — new partitions

 — new countertops

 — new floor and wall tile

 — new lighting

D-4

 

Exhibit E1

ADDITIONAL
PROVISIONS

This
exhibit is attached to and made a part of the Lease dated 7/18, 2006 by and between
JL Ventures LLC, Harkonnen Acquisitions, L Metro LLC, and Bello LLC, each an Alaska limited
liability company, collectively known as MBP Co-Tenancy (“Landlord”) and ZARS, Inc. (“Tenant”) for
space in Building D.

1. Renewal Options. (a) So long as Tenant is not in default at the expiration of the then existing
Term of this Lease, Tenant shall be granted two (2) renewal options for six (6) months each. If
Tenant elects to exercise this option, Tenant shall give Landlord one-hundred eighty (180) days
written notice, with the Base Rent increasing during the first option period to an annual rate of
$15.75 per rentable square foot. The Base Rent for the second option period shall be $16.00 per
rentable square foot per year.

2. Expansion Option. Tenant shall have a First Right of Refusal to lease any space which becomes
available in the Building during the Term of this Lease. Landlord shall notify Tenant in writing
of availability and with such notice. Landlord shall submit a lease proposal for the space, and
Tenant shall have two (2) business days to notify Landlord of acceptance of the terms of the
proposal. If notice of acceptance is not received by Landlord within the three (3) business day
period, then Landlord may proceed to market and lease the space to third parties but only for basic
terms comparable or less favorable than the lease proposal presented to Tenant.

3. Parking. Parking privileges for the Building are on a first come first serve basis. Tenant and
its employees, licensees, invitees and guests shall have the right to use five (5) unreserved
parking stalls for every 1,000 rentable square feet at no additional cost in a parking lot located
to the south and west of the Building.

4. Security. Landlord shall provide a touch pad for after hours security and after hours lock off
to the elevator for the third floor of the Building.

5. Satellite Dish. Tenant shall have the right to locate a satellite dish of not more than 5 feet
in diameter on the Building’s roof without charge during the initial Lease term. The location of
the dish shall be determined by Landlord. The installation, wiring, maintenance, and removal shall
be at Tenant’s expense by a contractor approved by Landlord which approval shall not unreasonably
be withheld. At the termination of the Lease, Tenant shall remove any satellite dish and restore
the roof to the same condition as existed before the installation of the dish.

6. Cleaning Schedule. The janitorial services to the Premises shall be as set forth in Schedule 1
to this Exhibit.

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

LANDLORD:

JL Ventures LLC, Harkonnen Acquisitions LLC,

L Metro LLC, and Bello LLC, all known as MBP Co-Tenancy

By: Harkonnen Acquisitions LLC, Co-Tenant

E-1

 

	 	 	 	 	 
	By:
	 	/s/ Stuart Bond	 	 
	 

	 	 	 	 
	Name:
	 	Stuart Bond	 	 
	 

	 	 	 	 
	Title:
	 	Managing Member	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	TENANT:	 	 
	ZARS, Inc.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Robert Lippert	 	 
	 

	 	 	 	 
	Name:
	 	Robert Lippert	 	 
	 

	 	 	 	 
	Title:
	 	President and CEO	 	 
	 

	 	 

	 	 

E-2

 

SCHEDULE 1 TO EXHIBIT E1

CLEANING SCHEDULE

Janitorial Specifications

Janitorial service will be on a 5 day a week basis Sunday evening through
Thursday evening. Janitors will work in the building any time after 7pm and finish prior to 7am
Monday through Friday.

Nightly Services — Building Interior:

1) Collect all paper and place it in a designated dumpster or garbage can for disposal.

2) Handle any recyclable materials as specified by the property manager.

3) Vacuum all traffic patterns thoroughly.

4) Restroom sanitation

a. Collect all waste paper and place in designated dumpster

b. Clean and polish wash basins, dispensers, chrome, and stainless steel fixtures

c. Clean and sanitize toilets, toilet seats (both sides) and urinals

d. Wipe clean wall surfaces around lavatory fixtures

e. Spot clean fingerprints and smudges from doors, frames and partitions

f. Clean all mirrors and mirror frames

g. Refill all restroom dispensers from stock

h. Sweep, wet mop and sanitize all floors

5) Leave furniture neat and orderly for the next day of business.

6) All lights will be turned off when the janitors are done cleaning in area, leaving only the night-lights on.

7) Leave all entrance and designated office doors locked.

As Required:

1) Remove dust from ventilation grills, cobwebs from comers in walls or ceiling area.

2) Monitor carpeted areas for spot removal.

3) Monitor sidewalks, building entryways and parking lot area and remove all trash.

4) Remove trash and/or cigarettes from exterior receptacles.

Weekly Services:

1) Vacuum all carpet including comers, edges, under all desks and edges.

2) Dust all hand railings, ledges, grills and fire apparatus (stairwells).

3) Buff all vinyl floors.

4) Wet mop or spot mop all hard surface floors.

5) Dust desktops, tables, counters and file cabinets with treated dust cloths.

Note: If the tops of these items are obstructed with papers, books, plants, etc.,
they will be dusted with a feather duster

6) Dust all chairs and bases.

7) Clean door glass, spot clean partition glass.

8) Remove fingerprints and smudges from woodwork, doors, door frames, door trim and light switches.

9) Clean and sanitize all drinking fountains.

10) Clean all elevator interior surfaces including hoist way doors and threshold
on the corridor side of the elevator. Polish all metal surfaces. Vacuum carpet.

11) Sweep all stairways and landings, being sure to remove all trash.

12) Sweep all exterior entrances, being sure to remove all trash.

E-3

 

Monthly Services:

1) Dust low reach areas, chair rungs, sides of desks, sides of cabinets, table legs, and
plastic mats.

2) Dust windowsills.

3) Dust high reach areas, partition ledges and moldings.

4) Strip and wax all resilient floors.

Quarterly Services:

1) Machine scrub restroom floors.

2) Restroom sanitation

a. Wash restroom partitions.

b. Vacuum vents and air grills.

c. Keep urinals and toilet bowls free from scale.

d. Wash all containers.

Tri-Annual Services:

1) Dust or vacuum all blinds and vents.

2) Clean all light fixtures.

3) Vacuum all drapes.

4) Clean and polish all kick plates.

Semi-Annual Services:

1) Clean all interior window glass relites and partitions.

2) Shampoo and extract all carpets — hallways, lobbies and elevators.

3) Clean the inside of the exterior windows.

E-4

 

Exhibit F

COMMENCEMENT LETTER

	 	 	 	 	 
	Date
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Tenant
	 	 	 	 
	 

	 	 	 	 
	Address
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 

Re: Commencement Letter with respect to that certain Lease dated                      by and between as
                    
Landlord and                     , 
a (n)                      as Tenant for an
Approximate Rentable Area in the Premises of                      square feet on the                      floor of the
Building located at                     ,                     ,                     .

Dear                     :

In accordance with the terms and conditions of the above referenced Lease, Tenant hereby accepts
possession of the premises and agrees as follows:

The Commencement Date of the Lease is                     ;

The Termination Date of the Lease is                     .

Landlord agrees to complete the work in the Premises identified in the punchlist jointly prepared
by Landlord and Tenant dated                     .

Please acknowledge your acceptance of possession and agreement to the terns set forth above by
signing all three (3) copies of this Commencement Letter in the space provided and returning two
(2) fully executed copies of the same to my attention.

Sincerely,

XXXXXXXXX

Property Manager

Agreed and Accepted:

TENANT:

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

F-1exv10w14

 

Exhibit 10.14

STANDARD FORM

INDUSTRIAL BUILDING LEASE

(MULTI-TENANT)

     1. BASIC TERMS. This Section 1 contains the Basic Terms of this Lease between Landlord
and Tenant, named below. Other Sections of the Lease referred to in this Section 1 explain and
define the Basic Terms and are to be read in conjunction with the Basic Terms

	 	1.1	 	Date of Lease: May 29, 2003
	 
	 	1.2	 	Landlord: First Industrial, L.P., a Delaware Limited Partnership
	 
	 	1.3	 	Tenant: ZARS, Inc., a Utah corporation
	 
	 	1.4	 	Premises: Approximately 9,540 rentable square feet in the
building commonly known as 1142 West 2320 South, STE A, West Valley City, UT
84119 (the “Building”).
	 
	 	1.5	 	Property: See Exhibit A.
	 
	 	1.6	 	Lease Term: 3 years 3 months
(“Term”), commencing June 30, 2003 (“Commencement Date”) and ending September
30, 2006, subject to Section 2.3 below, (“Expiration Date”).
	 
	 	1.7	 	Permitted Uses: (See Section 4.1) General office along with
Pharmaceutical Development and warehousing.
	 
	 	1.8	 	Tenant’s Guarantor: NONE
	 
	 	1.9	 	Brokers: (See Section 23;

	 	(A)	 	Tenant’s Broker: Cottonwood
Realty Services
	 
	 	(B)	 	Landlord’s Broker: NAI Utah
Commercial Real Estate, Inc.

	 	1.10	 	Security/Damage Deposit: (See Section 4.4) $6,510.00
	 
	 	1.11	 	Initial Estimated Additional Rent Payable by Tenant: $1,653.00
per month
	 
	 	1.12	 	Tenant’s Proportionate Share: 54.51429% of Operating Expenses
directly related to the Building (approximately 17,500 square feet) and
3.982351%, subject to adjustment as set forth in the last sentence of this
Section 1.12, of all other Operating Expenses as defined below. The Property
currently measures 239,557 square feet. Tenant’s share of Operating Expenses
not directly relating to the Building shall be subject to adjustment to
proportionately reflect any increases or decreases in the rentable area of the
Property, whether resulting from re-measurement, new construction, acquisition
of additional premises or sale of premises constituting part of the Property,
or the inclusion of the Property in or exclusion of the Property from any
arrangement for joint common area maintenance with any adjacent properties.
	 
	 	1.13	 	Riders to Lease: The following riders are attached to and made
a part of this Lease. (If none, so state) NONE

     2. LEASE OF PREMISES: RENT.

          2.1 Lease of Premises for Lease Term. Landlord hereby leases the Premises to Tenant,
and Tenant hereby rents the Premises from Landlord, for the Term and subject to the conditions of
this Lease.

          2.2 Types of Rental Payments. Tenant shall pay net base rent to Landlord in monthly
installments, in advance, on the first day of each and every calendar month during the Term of this
Lease (the “Base Rent”) in the amounts and for the periods set forth below:

	 	 	 	 	 	 	 	 	 
	Lease Period	 	Annual Base Rent	 	Monthly Base Rent
	06/30/2003 – 12/31/2003
	 	$	29,142.00	 	 	$	2,428.50	 
	01/01/2004 – 06/30/2004
	 	$	58,284.00	 	 	$	4,857.00	 
	07/01/2004 – 06/30/2005
	 	$	60,036.00	 	 	$	5,003.00	 
	07/01/2005 – 06/30/2006
	 	$	61,860.00	 	 	$	5,155.00	 
	07/01/2006 – 09/30/2006
	 	$	63,924.00	 	 	$	5,327.00	 

1

 

Tenant shall also pay Tenant’s Proportionate Share (as set forth in Section 1.12) of Operating
Expenses (as hereinafter defined), Tenant’s Proportionate Share of any and all Reserve Expenses (as
hereinafter defined) and any other amounts owed by Tenant hereunder (collectively, “Additional
Rent”). In the event any monthly installment of Base Rent or Additional Rent, or both, is not paid
within 7 days of the date when due, a late charge in an amount equal to 5% of the then delinquent
installment of Base Rent and/or Additional Rent [the “Late Charge”; the Late Charge, Default
Interest (as defined in Section 22.3 below), Base Rent and Additional Rent shall collectively be
referred to as “Rent”] shall be paid by Tenant to Landlord, c/o First Industrial, L.P., 21129
Network Place, Chicago, IL 60673-1211, or if sent by overnight courier, Bank One of Chicago, 525
West Monroe, 7th Floor mailroom, Chicago, IL 60611, Attn Lockbox 21129 (or such other
entity designated as Landlord’s management agent, if any, and if Landlord so appoints such a
management agent, the “Agent”), or pursuant to such other directions as Landlord shall designate in
this Lease or otherwise in writing.

          2.3 Covenants Concerning Rental Payments. Tenant shall pay the Rent promptly when
due, without notice or demand, and without any abatement, deduction or setoff, except as may
otherwise be expressly and specifically provided in this lease. No payment by Tenant, or receipt
or acceptance by Agent or Landlord, of a lesser amount than the correct Rent shall be deemed to be
other than a payment on account, nor shall any endorsement or statement on any check or letter
accompanying any payment be deemed an accord or satisfaction, and Agent or Landlord may accept such
payment without prejudice to its right to recover the balance due or to pursue any other remedy
available to Landlord. If the Commencement Date occurs on a day other than the first day of a
calendar month, the Rent due for the first calendar month of the Term shall be prorated on a per
diem basis and paid to Landlord on the Commencement Date, and the Term will be extended to
terminate on the last day of the calendar month in which the Expiration Date stated in Section 1.6
occurs.

     3. OPERATING EXPENSES.

          3.1 Definitional Terms Relating to Additional Rent. For purposes of this Section and
other relevant provisions of the Lease:

               3.1.1 Operating Expenses. The term “Operating Expenses” shall mean all costs and
expenses paid or incurred with respect to the ownership, repair, replacement. restoration,
maintenance and operation of the Property, including, without limitation, the following: (i)
services provided directly by employees of Landlord or Agent in connection with the operation,
maintenance or rendition of other services to or for the Property; (ii) to the extent not
separately metered, billed, or furnished, all charges for utilities and services furnished to
either or both of the Property and the Premises (including, without limitation, the Common Areas
[as hereinafter defined]), together with any taxes on such utilities; (iii) all premiums for
casualty, workers’ compensation, liability, boiler, flood and all other types of insurance provided
by Landlord and relating to the Property, all third party administrative costs incurred in
connection with the procurement and implementation of such insurance policies, and all deductibles
paid by Landlord pursuant to insurance policies required to be maintained by Landlord under this
Lease; (iv) the cost of all supplies, tools, materials and equipment utilized in the ownership and
operation of the Property, and sales and other taxes thereon; (v) amounts charged (including,
without limitation, those costs and expenses set forth in Section 13.2(i) below) by any or alI of
contractors, materialmen and suppliers for services, materials and supplies furnished to Landlord
in connection with any or all of the operation, repair and maintenance of any part of the Property
(together with a reasonable overhead and administrative fee to Landlord), including, without
limitation, the structural elements of the Property and the Common Areas; (vi) reasonable
management fees to Landlord or Agent or other persons or management entities actually involved in
the management and operation of the Property; (vii) any capital improvements made by, or on behalf
of, Landlord to the Property that are either or both (a) designed to reduce Operating Expenses and
(b) required to keep the Property in compliance with all governmental laws, rules and regulations
applicable thereto, from time to time, the cost of which capital improvements shall be reasonably
amortized by Landlord over the useful life of the improvement, in accordance with generally
accepted accounting principles; (viii) all professional fees incurred in connection with the
operation, management and maintenance of the Property; and (ix) Taxes, as hereinafter defined in
Section 3.1.2.

               3.1.2 Taxes. The term “Taxes,” as referred to in Section 3.1.1(ix) above shall mean (i) all
governmental taxes, assessments, fees and charges of every kind or nature {other than Landlord’s
income taxes), whether general, special, ordinary or extraordinary, due at any time or from time to
time, during the Term and any extensions thereof, in connection with the ownership, leasing, or
operation of the Property, or of the personal property and equipment located therein or used in
connection therewith; and (ii) any reasonable expenses incurred by Landlord in contesting such
taxes or assessments and/or the assessed value of the Property. For

2

 

purposes hereof, Tenant shall be responsible for any Taxes that are assessed, become a lien,
or accrue during any Operating Year, which obligation shall survive the termination or expiration
of this Lease.

               3.1.3 Operating Year. The term “Operating Year” shall mean the calendar year
commencing January 1st of each year (including the calendar year within which the Commencement Date
occurs) during the Term,

          3.2 Payment of Operating Expenses. Tenant shall pay, as Additional Rent and in
accordance with the requirements of Section 3.3, Tenant’s Proportionate Share of the Operating
Expenses as set forth in Section 3.3. Additional Rent commences to accrue upon the Commencement
Date. The Tenant’s Proportionate Share of Operating Expenses payable hereunder for the Operating
Years in which the Term begins and ends shall be prorated to correspond to that portion of said
Operating Years occurring within the Term. Tenant’s Proportionate Share of Operating Expenses and
any other sums due and payable under this Lease shall be adjusted upon receipt of the actual bills
therefor, and the obligations of this Section 3 shall survive the termination or expiration of the
Lease.

          3.3 Payment of Additional Rent. Landlord shall have the right to reasonably estimate
the Operating Expenses for each Operating Year Upon Landlord’s or Agent’s notice to Tenant of such
estimated amount, Tenant shall pay, on the first day of each month during that Operating Year, an
amount (the “Estimated Additional Rent”) equal to the estimate of the Tenant’s Proportionate Share
of Operating Expenses divided by 12 (or the fractional portion of the Operating Year remaining at
the time Landlord delivers its notice of the estimated amounts due from Tenant for that Operating
Year). If the aggregate amount of Estimated Additional Rent actually paid by Tenant during any
Operating Year is less than Tenant’s actual ultimate liability for Operating Expenses for that
particular Operating Year, Tenant shall pay the deficiency within 30 days of Landlord’s written
demand therefor. If the aggregate amount of Estimated Additional Rent actually paid by Tenant
during a given Operating Year exceeds Tenant’s actual liability for such Operating Year, the excess
shall be credited against the Estimated Additional Rent next due from Tenant during the immediately
subsequent Operating Year, except that in the event that such excess is paid by Tenant during the
final Lease Year, then upon the expiration of the Term, Landlord or Agent shall pay Tenant the
then-applicable excess promptly after determination thereof. Landlord, for the purpose of paying
for repairs, maintenance and replacements to the Premises or the Property incurred on a periodic,
but less frequent than annual, basis (“Reserve Expenses”) will establish a reserve (the
“Maintenance Reserve”) to which Tenant, simultaneously with the payment of Estimated Additional
Rent each month, shall contribute a monthly deposit in an amount reasonably determined and budgeted
by Landlord, which amount shall not exceed Four percent (4%) of yearly estimated Operating
Expenses. Such deposits shall be applied on account of Reserve Expenses incurred by Landlord
during the Term; any deficit shall be paid by Tenant to Landlord upon demand. Upon the expiration
or sooner termination of the Lease, Landlord shall retain such deposits to fund Reserve Expenses
incurred after the Term. No interest shall be payable to Tenant on account of payments of
Estimated Additional Rent or deposits to the Maintenance Reserve, and such payments may be
commingled.

     4. USE OF PREMISES AND COMMON AREAS; SECURITY DEPOSIT.

          4.1 Use of Premises and Property. The Premises shall be used by the Tenant for the
purpose(s) set forth in Section 1.7 above and for no other purpose whatsoever. Tenant shall not,
at any time, use or occupy, or suffer or permit anyone to use or occupy, the Premises, or do or
permit anything to be done in the Premises or the Property, in any manner that may (a) violate any
Certificate of Occupancy for the Premises or the Property; (b) cause, or be liable to cause, injury
to, or in any way impair the value or proper utilization of, all or any portion of the Property
(including, but not limited to, the structural elements of the Property) or any equipment,
facilities or systems therein; (c) constitute a violation of the laws and requirements of any
public authority or the requirements of insurance bodies or the rules and regulations of the
Property, including any covenant, condition or restriction affecting the Property; (d) exceed the
load bearing capacity’ of the floor of the Premises; (e) impair or tend to impair the character,
reputation or appearance of the Property; or (e) unreasonably annoy, inconvenience or disrupt the
operations or tenancies of other tenants or users of the Property. On or prior to the date hereof,
Tenant has completed and delivered for the benefit of Landlord a “Tenant Operations Inquiry Form”
in the form attached hereto as Exhibit D describing the nature of Tenant’s proposed business
operations at the Premises, which form is intended to, and shall be, relied upon by Landlord.

          4.2 Use of Common Areas. As used herein, “Common Areas” shall mean all areas within
the Property that arc available for the common use of tenants of the Property and that are not
leased or held for the exclusive use of Tenant or other tenants or licensees, including, but not
limited to, parking areas, driveways, sidewalks, loading areas, access roads, corridors,
landscaping and planted areas. Tenant shall have the nonexclusive

3

 

right to use the Common Areas for the purposes intended, subject to such reasonable rules and
regulations as Landlord may uniformly establish from time to time. Tenant shall not interfere with
the rights of any or all of Landlord, other tenants or licensees, or any other person entitled to
use the Common Areas. Without limitation of the foregoing, Tenant shall not park or store any
vehicles or trailers on, or conduct truck loading and unloading activities in, the Common Areas in
a manner that unreasonably disturbs, disrupts or prevents the use of the Common Areas by Landlord,
other tenants or licensees or other persons entitled to use the Common Areas. Landlord, from time
to time, may change any or all of the size, location, nature and use of any of the Common Areas
although such changes may result in inconvenience to Tenant, so long as such changes do not
materially and adversely affect Tenant’s use of the Premises. In addition to the foregoing,
Landlord may, at any time, close or suspend access to any Common Areas to perform any acts in the
Common Areas as, in Landlord’s reasonable judgment, are desirable to improve or maintain either or
both of the Premises and the Property, or are required in order to satisfy Landlord’s obligations
under either or both of Sections 13.2 and 18; provided, however, that Landlord shall use reasonable
efforts to limit any disruption of Tenant’s use and operation of the Premises in connection
therewith.

          4.3 Signage. Tenant shall not affix any sign of any size or character to any portion
of the Property, without prior written approval of Landlord, which approval shall not be
unreasonably withheld or delayed. Tenant shall remove all signs of Tenant upon the expiration or
earlier termination of this Lease and immediately repair any damage to either or both of the
Property and the Premises caused by, or resulting from, such removal.

          4.4 Security/Damage Deposit. Simultaneously with the execution and delivery of this
Lease, Tenant shall deposit with Landlord or Agent the sum set forth in Section 1.10 above, in cash
(the “Security”), representing security for the performance by Tenant of the covenants and
obligations hereunder, the amount of which Security was determined by adding one month of Base Rent
of $4,857.00 and one month of Initial Estimated Additional Rent of $1,653.00. The Security shall
be held by Landlord or Agent, without interest, in favor of Tenant; provided, however, that no
trust relationship shall be deemed created thereby and the Security may be commingled with other
assets of Landlord. If Tenant defaults in the performance of any of its covenants hereunder,
Landlord or Agent may, without notice to Tenant, apply all or any part of the Security, to the
extent required for the payment of any Rent or other sums due from Tenant hereunder, in addition to
any other remedies available to Landlord. In the event the Security is so applied, Tenant shall,
upon demand, immediately deposit with Landlord or Agent a sum equal to the amount so used. If
Tenant fully and faithfully complies with all the covenants and obligations hereunder, the Security
(or any balance thereof) shall be returned to Tenant within 30 days after the last to occur of (i)
the date the Term expires or terminates or (ii) delivery to Landlord of possession of the Premises.
Landlord may deliver the Security to any purchaser of Landlord’s interest in the Premises [or any
Successor Landlord (defined below), if applicable], and thereupon Landlord and Agent shall be
discharged from any further liability with respect to the Security.

     5. CONDITION AND DELIVERY OF PREMISES.

          5.1 Condition of Premises. Tenant agrees that Tenant is familiar with the condition
of both the Premises and the Property, and Tenant hereby accepts the foregoing on an “AS-IS,”
“WHERE-IS” basis. Tenant acknowledges that neither Landlord nor Agent, nor any representative of
Landlord, has made any representation as to the condition of the foregoing or the suitability of
the foregoing for Tenant’s intended use, Tenant represents and warrants that Tenant has made its
own inspection of the foregoing. Neither Landlord nor Agent shall be obligated to make any
repairs, replacements or improvements (whether structural or otherwise) of any kind or nature to
the foregoing in connection with, or in consideration of, this Lease, except (a) as set forth in
Sections 13.2 and 18 and (b) with respect to all (if any) repairs and improvements expressly and
specifically described in Exhibit B attached hereto (“Landlord Work Items”). Landlord agrees to
make reasonable efforts to enforce, or cause Agent to enforce, upon Tenant’s request, all
manufacturer’s or contractor’s warranties, if any, issued in connection with any of the Landlord
Work Items.

          5.2 Delay in Commencement. Landlord shall not be liable to Tenant if Landlord does
not deliver possession of the Premises to Tenant on the Commencement Date. The obligations of
Tenant under the Lease shall not be affected thereby, except that the Commencement Date shall be
delayed until Landlord delivers possession of the Premises to Tenant, and the Lease Term shall be
extended by a period equal to the number of days of delay in delivery of possession of the Premises
to Tenant, plus the number of days necessary to end the Lease Term on the last day of a month.
Notwithstanding the foregoing, if Landlord does not substantially complete the Improvements per
Exhibit B and deliver the Premises to Tenant by June 30, 2003, then Tenant will have one day to
cancel this lease as of July 1, 2003 by delivering written notice to do so to Landlord no later
than 5 PM MST July 1, 2003. However, the immediately preceding sentence will not apply and have no
effect on the term of this Lease

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should the delay be caused by any governmental agency actions or in-action which cause
Landlord to not be able to deliver the Premises on or before June 30, 2003 including governmental
delays in granting of any necessary building permits or inspections thereof.

     6. SUBORDINATION: NOTICES TO SUPERIOR LESSORS AND MORTGAGEES; ATTORNMENT.

          6.1 Subordination. Provided that Tenant is provided with a reasonable and customary
subordination, nondisturbance and attornment agreement duly executed by the holder of any mortgage
or deed of trust or the landlord pursuant to any ground lease, this Lease shall be subject and
subordinate at all times to (a) all ground leases or underlying leases that may now exist or
hereafter be executed affecting either or both of the Premises and the Property and (b) any
mortgage or deed of trust that may now exist or hereafter be placed upon, and encumber, any or all
of (x) the Property; (y) any ground leases or underlying leases for the benefit of the Property;
and (z) all or any portion of Landlord’s interest or estate in any of said items. Notwithstanding
the foregoing, Landlord shall have the right to subordinate or cause to be subordinated any such
ground leases or underlying leases that benefit the Property or any such mortgage or deed of trust
liens to this Lease. Tenant shall execute and deliver, upon demand by Landlord and in the form
reasonably requested by Landlord, any additional documents evidencing the priority of subordination
of this Lease with respect to any such ground leases or underlying leases for the benefit of the
Property or any such mortgage or deed of trust.

          6.2 Estoppel Certificates. Tenant agrees, from time to time and within 14 days after
request by Landlord, to deliver to Landlord, or Landlord’s designee, an estoppel certificate
stating such matters pertaining to this Lease as may be reasonably requested by Landlord. Failure
by Tenant to timely execute and deliver such certificate shall constitute an acceptance of the
Premises and acknowledgment by Tenant that the statements included therein are true and correct
without exception. Landlord and Tenant intend that any statement delivered pursuant to this
section may be relied upon by any prospective purchaser or mortgagee of the Property or of any
interest therein or any other Landlord designee.

          6.3 Transfer for Landlord. In the event of a sale or conveyance by Landlord of the
Property, and provided that Landlord’s successor shall assume Landlord’s duties and obligations
under this Lease, the same shall operate to release Landlord from any future liability for any of
the covenants or conditions, express or implied, herein contained in favor of Tenant, and in such
event Tenant agrees to look solely to Landlord’s successor in interest with respect thereto and
agrees to attorn to such successor.

     7. QUIET ENJOYMENT. Subject to the provisions of this Lease, so long as Tenant pays
all of the Rent and performs all of its other obligations hereunder, Tenant shall not be disturbed
in its possession of the Premises by Landlord. Agent or any other person lawfully claiming through
or under Landlord; provided, however, in addition to Landlord’s rights under Section 16 and
elsewhere in this Lease, Landlord and Landlord’s agents, employees, contractors and representatives
shall be provided reasonable access to the Premises such that Landlord and Landlord’s agents,
employees, contractors and representatives may perform the General Maintenance Services (as
hereinafter defined) without undue interruption, delay or hindrance. This covenant shall be
construed as a covenant running with the Property and is not a personal covenant of Landlord.
Tenant shall not unreasonably interrupt, delay, prevent or hinder the performance of the General
Maintenance Services by or on behalf of Landlord. Notwithstanding. the foregoing, however, Tenant
acknowledges and agrees that Landlord shall have the unfettered and unilateral right to use
portions of the Common Areas (inclusive of the roof of the Building) for such purposes and uses as
Landlord may desire; provided, however, that in all events and under all circumstances, Landlord’s
use of any portion of the Common Areas shall not interfere, in any material respect, with any or
all of (a) Tenant’s rights to occupy and use the Common Areas (in the manner and for the purposes
contemplated hereunder); (b) Tenant’s right to utilize the vehicular parking areas located on the
Common Areas; and (c) Tenant’s right of access, ingress and egress to and from the Common Areas.

     8. ASSIGNMENT, SUBLETTING AND MORTGAGING.

          8.1 Prohibition. Tenant acknowledges that this Lease and the Rent due under this
Lease have been agreed to by Landlord in reliance upon Tenant’s reputation and creditworthiness and
upon the continued operation of the Premises by Tenant for the particular use described in Section
4.1 above; therefore, Tenant shall not, whether voluntarily, or by operation of law, or otherwise:
(a) assign or otherwise transfer this Lease; (b) sublet the Premises or any part thereof, or allow
the same to be used or occupied by anyone other than Tenant; or (c) mortgage, pledge, encumber, or
otherwise hypothecate this Lease or the Premises, or any part thereof, in any manner whatsoever,
without in each instance obtaining the prior written consent of Landlord, which consent may be
given or

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withheld in Landlord’s sole, but reasonable, discretion. Any purported assignment, mortgage,
transfer, pledge or sublease made without the prior written consent of Landlord shall be absolutely
null and void. No assignment of this Lease shall be effective and valid unless and until the
assignee executes and delivers to Landlord any and all documentation reasonably required by
Landlord in order to evidence assignee’s assumption of all obligations of Tenant hereunder. Any
consent by Landlord to a particular assignment, sublease or mortgage shall not constitute consent
or approval of any subsequent assignment, sublease or mortgage, and Landlord’s written approval
shall be required in all such instances. No consent by Landlord to any assignment or sublease
shall be deemed to release Tenant from its obligations hereunder and Tenant shall remain fully
liable for performance of all obligations under this Lease.

          8.2 Rights of Landlord. If this Lease is assigned, or if the Premises (or any part
thereof) are sublet or used or occupied by anyone other than Tenant, whether or not in violation of
this Lease, Landlord or Agent may (without prejudice to, or waiver of its rights), collect Rent
from the assignee, subtenant or occupant. Landlord or Agent may apply the net amount collected to
the Rent herein reserved, but no such assignment, subletting, occupancy or collection shall be
deemed a waiver of any of the provisions of this Section 8. With respect to the allocable portion
of the Premises sublet, in the event that the total rent and any other considerations received
under any sublease by Tenant is greater than the total Rent required to be paid, from time to time,
under this Lease, Tenant shall pay to Landlord one hundred percent (100%) of such excess as
received from any subtenant and such amount shall be deemed a component of the Additional Rent.

          8.3 Permitted Transfers. The provisions of Section 8.1(a) shall apply to a transfer,
other than an “Excluded Transfer” (as defined hereinafter), of a majority (i.e. greater
than 50% interest) of the voting stock of Tenant or to any other change in voting control of Tenant
(if Tenant is a corporation), or to a transfer of a majority of the general partnership or
membership interests in Tenant (if Tenant is a partnership or a limited liability company) or to a
change in the managerial control of Tenant, or to any comparable transaction involving any other
form of business entity, whether effectuated in one or more transactions, as if such transfer were
an assignment of this Lease; but said provisions shall not apply to such a transfer, provided, in
any of such events, the successor to Tenant (or any party remaining liable for the obligations of
Tenant hereunder): (i) has a net worth at least equal to the net worth of Tenant as of the
Commencement Date or (ii) is capable of satisfying Tenant’s obligations hereunder, in Landlord’s
reasonable judgment. Any such permitted transferee shall execute and deliver to Landlord any and
all documentation reasonably required by Landlord in order to evidence assignee’s assumption of all
obligations of Tenant hereunder. Notwithstanding anything to the contrary contained in this
Section 8.3, in no event may Tenant assign, mortgage, transfer, pledge or sublease this Lease to
any entity whatsoever if, at the time of such assignment, mortgage, transfer, pledge or sublease,
Tenant is in default under this Lease. For purposes of this Section 8.3, “Excluded Transfer” shall
mean any transfer of ownership interests in Tenant in connection with (a) any public sale of
ownership interests in Tenant in connection with an initial public offering or subsequent offering
of securities in Tenant; or (b) any private sale of ownership interests in Tenant in connection
with a venture capital or similar transaction; provided, however, in each case described in the
immediately preceding clauses (a) or (b), the owners of Tenant as of the date of this Lease
continue to collectively own at least 20 percent of the outstanding ownership interests of Tenant
and at least one such owner continues to be actively involved in the business affairs of Tenant.

     9. COMPLIANCE WITH LAWS.

          9.1 Compliance with Laws. Tenant shall, at its sole expense (regardless of the cost
thereof), comply with all local, state and federal laws, rules, regulations and requirements now or
hereafter in force and all judicial and administrative decisions in connection with the enforcement
thereof (collectively, “Laws”), pertaining to either or both of the Premises and Tenant’s use and
occupancy thereof. If any license or permit is required for the conduct of Tenant’s business in
the Premises, Tenant, at its expense, shall procure such license prior to the Commencement Date,
and shall maintain such license or permit in good standing throughout the Term. Tenant shall give
prompt notice to Landlord of any written notice it receives of the alleged violation of any Law or
requirement of any governmental or administrative authority with respect to either or both of the
Premises and the use or occupation thereof. The judgment of any court of competent jurisdiction,
or the admission of Tenant in any action or proceeding against Tenant, whether Landlord is a party
thereto or not, that any such Law pertaining to the Premises has been violated, shall be conclusive
of that fact as between Landlord and Tenant.

          9.2 Hazardous Materials. If, at any time or from time to time during the Term (or any
extension thereof), any Hazardous Material (defined below) is generated, transported, stored, used,
treated or disposed of at, to, from, on or in either or both of the Premises and the Property by,
or as a result of any act or

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omission of, any or all of Tenant and any or all of Tenant’s Parties (defined below): (i)
Tenant shall, at its own cost, at all times comply (and cause all others to comply) with all laws
(federal, state or local) relating to Hazardous Materials, including, but not limited to, all
Environmental Laws (defined below), and Tenant shall further, at its own cost, obtain and maintain
in full force and effect at all times all permits and other approvals required in connection
therewith; (ii) Tenant shall promptly provide Landlord or Agent with complete copies of all
communications, permits or agreements with, from or issued by any governmental authority or agency
(federal, state or local) or any private entity relating in any way to the presence, release,
threat of release, or placement of Hazardous Materials on or in the Premises or any portion of the
Property, or the generation, transportation, storage, use, treatment, or disposal at, on, in or
from the Premises, of any Hazardous Materials; (iii) Landlord, Agent and their respective agents
and employees shall have the right to either or both (x) enter the Premises and (y) conduct
appropriate tests for the purposes of ascertaining Tenant’s compliance with all applicable laws
(including Environmental Laws), rules or permits relating in any way to the generation, transport,
storage, use, treatment, disposal or presence of Hazardous Materials on, at, in or from all or any
portion of either or both of the Premises and the Property; and (iv) upon written request by
Landlord or Agent. Tenant shall provide Landlord with the results of reasonably appropriate tests
of air, water or soil to demonstrate that Tenant complies with all applicable laws, rules or
permits relating in any way to the generation, transport, storage, use, treatment, disposal or
presence of Hazardous Materials on, at, in or from all or any portion of either or both of the
Premises and the Property. This Section 9.2 does not authorize the generation, transportation,
storage, use, treatment or disposal of any Hazardous Materials at, to, from, on or in the Premises
in contravention of this Section 9. Tenant covenants to investigate, clean up and otherwise
remediate, at Tenant’s sole expense, any release of Hazardous Materials caused, contributed to, or
created by any or all of (A) Tenant and (B) any or all of Tenant’s officers, directors, members,
managers. partners, invitees, agents, employees, contractors or representatives (“Tenant Parties”)
during the Term. Such investigation and remediation shall be performed only after Tenant has
obtained Landlord’s prior written consent; provided, however, that Tenant shall be entitled to
respond immediately to an emergency without first obtaining such consent. All remediation shall be
performed in strict compliance with Environmental Laws and to the reasonable satisfaction of
Landlord. Tenant shall be liable for any and all conditions covered hereby, and for all costs
relating thereto, that are caused or created by any or all of Tenant and any or all of Tenant’s
Parties. Tenant shall not enter into any settlement agreement, consent decree or other compromise
with respect to any claims relating to any Hazardous Materials in any way connected to the Premises
without first obtaining Landlord’s written consent (which consent may be given or withheld in
Landlord’s sole, but reasonable, discretion) and affording Landlord the reasonable opportunity to
participate in any such proceedings. As used herein, the term (x) “Environmental Laws” shall mean
any and all laws pertaining to Hazardous Materials or that otherwise deal with, or relate to, air
or water quality, air emissions, soil or ground conditions or other environmental matters of any
kind; and (y) “Hazardous Materials” shall mean any waste, material or substance (whether in the
form of liquids, solids or gases, and whether or not airborne) that is or may be deemed to be or
include a pesticide, petroleum, asbestos, polychlorinated biphenyl, radioactive material, urea
formaldehyde or any other pollutant or contaminant that is or may be deemed to be hazardous, toxic,
ignitable, reactive, corrosive, dangerous, harmful or injurious, or that presents a risk to public
health or to the environment, and that is or becomes regulated by any Environmental Law. The
undertakings, covenants and obligations imposed on Tenant under this Section 9.2 shall survive the
termination or expiration of this Lease.

     10. INSURANCE.

          10.1 Insurance to be Maintained by Landlord. Landlord shall maintain (a) “all-risk”
property insurance policy covering the Property (at its full replacement cost), but excluding
Tenant’s Property (defined below), and (b) commercial general public liability insurance covering
Landlord for claims arising out of liability for bodily injury, death, personal injury, advertising
injury and property damage occurring in and about the Property and otherwise resulting from any
acts and operations of Landlord, its agents and employees, and (c) rent loss insurance, all of the
above with limits that are required by any lender(s) of Landlord, or as are otherwise reasonably
determined by Landlord.

          10.2 Insurance to be Maintained by Tenant. Tenant shall purchase, at its own expense,
and keep in force at all times during this Lease the policies of insurance set forth below in
Sections 10.2.1 and 10.2.2 (collectively, “Tenant’s Policies”). All Tenant’s Policies shall (a) be
issued by an insurance company with a Best rating of A-X or better and otherwise reasonably
acceptable to Landlord and shall be licensed to do business in the state in which the Property is
located; (b) provide that said insurance shall not be canceled or materially modified unless 30
days’ prior written notice shall have been given to Landlord; and (c) otherwise be in such form,
and include such coverages, as Landlord may reasonably require. All Tenant’s Policies (or, at
Landlord’s option, Certificates of Insurance, in a form reasonably acceptable to Landlord,
evidencing said Tenant’s Policies), shall be

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delivered to Landlord by Tenant upon commencement of the Lease and renewals thereof shall be
delivered at least 30 days prior to the expiration of each Tenant’s Policy. Tenant shall give
prompt notice to Landlord and Agent of any bodily injury, death, personal injury, advertising
injury or property damage occurring in and about the Property.

               10.2.1 General Liability and Auto Insurance. Tenant shall purchase and maintain,
throughout the Term, a Tenant’s Policy(ies) of (i) commercial general or excess liability
insurance, including personal injury and property damage, in the amount of not less than
$2,000,000.00 per occurrence, and $3,000,000.00 annual general aggregate, per location; (ii)
comprehensive automobile liability insurance covering Tenant against any losses arising out of
liability for personal injuries or deaths of persons and property damage occurring in or about the
Premises in the amount of not less than $1,000,000, combined single limit. The Tenant’s Policies
required by this Section 10.2.1 shall (a) name Landlord, Agent, and any party holding an interest
to which this Lease may be subordinated as additional insureds; (b) provide coverage on an
occurrence basis; (c) provide coverage for the indemnity obligations of Tenant under this Lease;
(d) contain a severability of insured parties provision and/or a cross liability endorsement; (e)
be primary, not contributing with, and not in excess of, coverage that Landlord may carry; and (f)
provide coverage with no exclusion for a pollution incident arising from a hostile fire.

               10.2.2 Property and Workers’ Compensation Insurance. Tenant shall purchase and
maintain, throughout the Term, a Tenant’s Policy or Policies of (i) “all-risk” property insurance
covering Tenant’s Property (at its full replacement cost), and damage to other property resulting
from any acts or operations of Tenant, and (ii) workers’ compensation insurance per the applicable
state statutes covering all employees of Tenant.

          10.3 Waiver of Subrogation. To the extent permitted by law, and without affecting the
coverage provided by insurance required to be maintained hereunder, Landlord and Tenant each waive
any right to recover against the other for (a) damages to property, (b) damages to all or any
portion of either or both of the Premises and the Property, (c) claims arising by reason of the
foregoing, to the extent such damages and claims are insured against, or required to be insured
against, by Landlord or Tenant under this Lease, or (d) claims paid by Tenant’s workers’
compensation carrier. This provision is intended to waive, fully and for the benefit of each
party, any rights and/or claims which might give rise to a right of subrogation by any insurance
carrier. The coverage obtained by each party pursuant to this Lease shall include, without
limitation, a waiver of subrogation by the carrier which conforms to the provisions of this section

     11. ALTERATIONS.

          11.1 Procedural Requirements. Tenant may, from time to time, at its expense, make
alterations or improvements in and to the Premises (hereinafter collectively referred to as
“Alterations”), provided that Tenant first obtains the written consent of Landlord in each
instance. Landlord’s consent to Alterations shall not be unreasonably withheld, provided that: (a)
the Alterations are non-structural and the structural integrity of the Property shall not be
affected; (b) the Alterations are to the interior of the Premises; (c) the proper functioning of
the mechanical, electrical, heating, ventilating, air-conditioning (“HVAC”), sanitary and other
service systems of the Property shall not be affected and the usage of such systems by Tenant shall
not be increased; (d) the Alterations have no adverse effect on other leased premises in the
Property; (e) Tenant shall have appropriate insurance coverage, reasonably satisfactory to
Landlord, regarding the performance and installation of the Alterations; (f) the Alterations shall
conform with all other requirements of this Lease; and (g) Tenant shall have provided Landlord with
reasonably detailed plans for such Alterations in advance of requesting Landlord’s consent.
Additionally, before proceeding with any Alterations, Tenant shall (i) at Tenant’s expense, obtain
all necessary governmental permits and certificates for the commencement and prosecution of
Alterations; (ii) submit to Agent, for Landlord’s written approval, working drawings, plans and
specifications and all permits for the work to be done and Tenant shall not proceed with such
Alterations until it has received said approval; and (iii) cause those contractors, materialmen and
suppliers engaged to perform the Alterations to deliver to Landlord certificates of insurance (in a
form reasonably acceptable to Landlord) evidencing policies of commercial general liability
insurance (providing the same coverages as required in Section 10.2.1 above) and workers’
compensation insurance. Such insurance policies shall satisfy the obligations imposed under
Section 10.2.1(a) through (d) and (f). After obtaining Landlord’s approval to the Alterations,
Tenant shall give Landlord at least five days’ prior written notice of the commencement of any
Alterations at the Premises, and Landlord may elect to record and post notices of
non-responsibility at the Premises. Notwithstanding anything to the contrary contained in this
Section 11.1, Landlord’s consent shall not be required for Alterations satisfying clauses (a)
through (f) above and costing $10,000.00 or less in any one instance (up to a maximum aggregate of
$25,000.00 over the Term) provided that Tenant notifies

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Landlord of such Alterations prior to commencing thereon and obtains all approvals and permits
necessary for the commencement and prosecution of such Alterations.

          11.2. Performance of Alterations. Tenant shall cause the Alterations to be performed
in compliance with all applicable permits, laws and requirements of public authorities, and with
Landlord’s reasonable rules and regulations or any other restrictions that Landlord or Agent may
impose on the Alterations. Tenant shall cause the Alterations to be diligently performed in a good
and workmanlike manner, using new materials and equipment at least equal in quality and class to
the standards for the Property established by Landlord or Agent. Tenant shall obtain all necessary
permits and certificates for final governmental approval of the Alterations and shall provide
Landlord with “as built” plans, copies of all construction contracts, governmental permits and
certificates and proof of payment for all labor and materials, including, without limitation,
copies of paid invoices and final lien waivers.

          11.3. Lien Prohibition. Tenant shall pay when due all claims for labor and material
furnished to the Premises in connection with the Alterations. Tenant shall not permit any
mechanics or materialmen’s liens to attach to the Premises or the Property. Tenant, at its
expense, shall procure the satisfaction or discharge of record of all such liens and encumbrances
within 30 days after the filing thereof; or, within such thirty (30) day period, Tenant shall
provide Landlord, at Tenant’s sole expense, with endorsements (satisfactory, both in form and
substance, to Landlord and the holder of any mortgage or deed of trust) to the existing title
insurance policies of Landlord and the holder of any mortgage or deed of trust, insuring against
the existence of, and any attempted enforcement of, such lien or encumbrance. In the event Tenant
has not so performed, Landlord may, at its option, pay and discharge such liens and Tenant shall be
responsible to reimburse Landlord, on demand and as Additional Rent under this Lease, for all costs
and expenses incurred in connection therewith, together with interest thereon at the rate set forth
in Section 22.3, which expenses shall include reasonable fees of attorneys of Landlord’s choosing,
and any costs in posting bond to effect discharge or release of the lien as an encumbrance against
the Premises or the Property.

     12. LANDLORD’S AND TENANT’S PROPERTY.

          12.1. Landlord’s Property. Subject to Section 12.2, all fixtures, machinery,
equipment, improvements and appurtenances attached to, or built into, the Premises at the
commencement of, or during the Term, whether or not placed there by or at the expense of Tenant,
shall become and remain a part of the Premises; shall be deemed the property of Landlord (the
“Landlord’s Property”), without compensation or credit to Tenant; and shall not be removed by
Tenant at the Expiration Date unless Landlord requests their removal. Further, any personal
property in the Premises on the Commencement Date, movable or otherwise, unless installed and paid
for by Tenant, shall be and shall remain the property of Landlord and shall not be removed by
Tenant. In no event shall Tenant remove any of the following materials or equipment without
Landlord’s prior written consent (which consent may be given or withheld in Landlord’s sole
discretion): any power wiring or power panels, lighting or lighting fixtures, wall or window
coverings, carpets or other floor coverings, heaters, air conditioners or any other HVAC equipment,
fencing or security gates, or other similar building operating equipment and decorations.

          12.2. Tenant’s Property. All movable non-structural partitions, business and trade
fixtures, machinery and equipment, communications equipment and office equipment that are installed
in the Premises by, or for the account of, Tenant and without expense to Landlord and that can be
removed without structural damage to the Property, and all furniture, furnishings and other
articles of movable personal property owned by Tenant and located in the Premises (collectively,
the “Tenant’s Property”) shall be and shall remain the property of Tenant and may be removed by
Tenant at any time during the Term, provided Tenant repairs or pays the cost of repairing any
damage to the Premises or to the Property resulting from the installation and/or removal thereof.
At or before the Expiration Date, or the date of any earlier termination, Tenant, at its expense,
shall remove from the Premises all of Tenant’s Property and any Alterations (except such items
thereof as constitute Landlord’s Property; or as Landlord shall have expressly permitted, in
writing, to remain, which property shall become the property of Landlord), and Tenant shall repair
(to Landlord’s reasonable satisfaction) any damage to the Premises or the Property resulting from
any installation and/or removal of Tenant’s Property. Any other items of Tenant’s Property that
shall remain in the Premises after the Expiration Date, or following an earlier termination date,
may, at the option of Landlord, be deemed to have been abandoned, and in such case, such items may
be retained by Landlord as its property or be disposed of by Landlord, in Landlord’s sole and
absolute discretion and without accountability, at Tenant’s expense. Notwithstanding the
foregoing, if Tenant is in default under the terms of this Lease, Tenant may remove Tenant’s
Property from the Premises only upon the express written direction of Landlord.

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     13. REPAIRS AND MAINTENANCE.

          13.1. Tenant Repairs and Maintenance. Tenant shall, at its expense, throughout the
Term, (i) maintain and preserve, in first-class condition (subject to normal and customary wear and
tear), the Premises and the fixtures and appurtenances therein (including, but not limited to, the
Premises’ plumbing and HVAC systems, all doors, overhead or otherwise, glass and levelers located
in the Premises including exterior glass or otherwise available in the Property for Tenant’s sole
use, outside lighting, snow removal and salting of the sidewalks and walkways serving the Premises;
and excluding, however, those components of the Premises for which Landlord is expressly
responsible under Section 13.2); and (ii) except to the extent Landlord elects to repair and
maintain the HVAC systems as part of General Maintenance Services (as hereinafter defined),
maintain, in full force and effect, a preventative maintenance and service contract with a
reputable service provider for maintenance of the HVAC systems of the Premises (a copy of which
service agreement shall be provided to Landlord within fifteen (15) days after the Commencement
Date). Tenant shall also be responsible for all cost and expenses incurred to perform any and all
repairs and replacements (whether structural or non-structural; interior or exterior; and ordinary
or extraordinary), in and to the Premises and the Property and the facilities and systems thereof,
if and to the extent that the need for such repairs or replacements arises directly or indirectly
from any or all of (a) the performance or existence of any Alterations, (b) the installation, use
or operation of Tenant’s Property in the Premises, (c) the moving of Tenant’s Property, in or out
of the Property, and (d) any act, omission, misuse, or neglect of Tenant, any of its subtenants, or
others entering into the Premises by act or omission of Tenant or any subtenant. Any repairs or
replacements required to be made by Tenant to any or all of the structural components of the
Property and the mechanical, electrical, sanitary, HVAC, or other systems of the Property or
Premises shall be performed by appropriately licensed contractors approved by Landlord, which
approval shall not be unreasonably withheld. All such repairs or replacements shall be subject to
the supervision and control of Landlord, and all repairs and replacements shall be made with
materials of equal or better quality than the items being repaired or replaced. Notwithstanding
any of the foregoing, however, from time to time during the Term, Landlord may elect, in its sole
discretion and by delivery of written notice to Tenant, to perform on behalf of Tenant, all or some
portion of the repairs, maintenance, restoration and replacement in and to the Premises required to
be performed by Tenant under this Lease (any such repairs, maintenance, restoration and/or
replacement activities that Landlord elects to perform on behalf of Tenant are herein collectively
referred to as “General Maintenance Services”). Tenant shall reimburse Landlord for the cost or
value of all General Maintenance Services provided by Landlord as Additional Rent simultaneously
with the payment of Operating Expenses as part of Estimated Additional Rent (on a monthly estimated
basis subject to annual reconciliation as described in Section 3.3 above). Unless and until
Landlord affirmatively elects to provide General Maintenance Services, nothing contained herein
shall be construed to obligate Landlord to perform any General Maintenance Services or, except as
otherwise expressly provided in Section 13.2, to repair, maintain, restore or replace any portion
of the Premises. Landlord may from time to time, in its sole discretion, (x) reduce or expand the
scope of the General Maintenance Services that Landlord has elected to provide or
 (y) revoke its
election to provide any or all of the General Maintenance Services, in either event, upon delivery
of not less than thirty (30) days’ prior written notice to Tenant. If Landlord does not elect to
repair, maintain and/or replace the HVAC systems as part of General Maintenance Services, or
revokes such election at any time after having made such election, Tenant shall enter into a
preventative maintenance and service contract with a reputable service provider for maintenance of
the HVAC systems of the Premises, a copy of which agreement shall be provided to Landlord.

          13.2. Landlord Repairs. Notwithstanding anything contrary herein, Landlord shall
repair, replace and restore the foundation, exterior and interior load-bearing walls, roof
structure and roof covering and tuckpointing of the Property; provided, however, that (i) all costs
and expenses so incurred by Landlord to repair, replace and restore the above items shall
constitute Operating Expenses; provided, however, that with respect to any costs incurred in the
replacement context, those costs shall not constitute an Operating Expense except to the extent
that such costs so qualify under Section 3.1.1(vii), and (ii) notwithstanding (i) above, in the
event that any such repair, replacement or restoration is necessitated by any or all of the matters
set forth in Sections 13.1(a) through (d) above (collectively, “Tenant Necessitated Repairs”), then
Tenant shall be required to reimburse Landlord for all costs and expenses that Landlord incurs in
order to perform such Tenant Necessitated Repairs, and such reimbursement shall be paid, in full,
within 10 days after Landlord’s delivery of demand therefor, Landlord agrees to commence the
repairs, replacements or restoration described in this Section 13.2 within a reasonable period of
time after receiving from Tenant written notice of the need for such repairs.

     14. UTILITIES. Tenant shall purchase all utility services and shall provide for
scavenger, cleaning and extermination services. As provided in Section 3.1.1. above, Common Area
utility charges are included within Operating Expenses; therefore, when and as Tenant pays

estimated Operating Expenses, those estimated monthly

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payments shall include monthly estimated installments of Common Area utility charges; Tenant
will pay the utility charges for its Premises directly to the utility or municipality providing
such service, and: (a) all charges shall be paid by Tenant before they become delinquent; and (b)
utility charges for the Premises shall not be included in estimated Operating Expenses. Tenant
shall be solely responsible for the repair and maintenance of any meters necessary in connection
with such services. Tenant’s use of electrical energy in the Premises shall not, at any time,
exceed the capacity of either or both of (i) any of the electrical conductors and equipment in or
otherwise servicing the Premises; and (ii) the HVAC systems of either or both of the Premises and
the Property.

     15. INVOLUNTARY CESSATION OF SERVICES. Landlord reserves the right, without any
liability to Tenant and without affecting Tenant’s covenants and obligations hereunder, to stop
service of any or all of the HVAC, electric, sanitary, elevator (if any), and other systems serving
the Premises, or to stop any other services required by Landlord under this Lease, whenever and for
so long as may be necessary by reason of (i) accidents, emergencies, strikes, or the making of
repairs or changes which Landlord or Agent, in good faith, deems necessary or (ii) any other cause
beyond Landlord’s reasonable control. Further, it is also understood and agreed that Landlord or
Agent shall have no liability or responsibility for a cessation of services to the Premises or to
the Property that occurs as a result of causes beyond Landlord’s or Agent’s reasonable control. No
such interruption of service shall be deemed an eviction or disturbance of Tenant’s use and
possession of the Premises or any part thereof, or render Landlord or Agent liable to Tenant for
damages, or relieve Tenant from performance of Tenant’s obligations under this Lease, including,
but not limited to, the obligation to pay Rent; provided, however, that if any interruption of
services persists for a period in excess of five (5) consecutive business days Tenant shall, as
Tenant’s sole remedy, be entitled to a proportionate abatement of Rent to the extent, if any, of
any actual loss of use of the Premises by Tenant.

     16. LANDLORD’S RIGHTS. Landlord, Agent and their respective agents, employees and
representatives shall have the right to enter and/or pass through the Premises at any time or times
upon reasonable prior notice (except in the event of emergency): (a) to examine and inspect the
Premises and to show them to actual and prospective lenders, prospective purchasers or mortgagees
of the Property or providers of capital to Landlord and its affiliates; and (b) to make such
repairs, alterations, additions and improvements in or to all or any portion of either or both of
the Premises and the Property, or the Property’s facilities and equipment as Landlord is required
or desires to make. Landlord and Agent shall be allowed to take all materials into and upon the
Premises that may be required in connection with any repairs, alterations, additions or
improvements, without any liability to Tenant and without any reduction or modification of Tenant’s
covenants and obligations hereunder; provided, however, that Landlord shall use reasonable efforts
to limit interference with Tenant’s business operations and Tenant’s occupancy and use of the
Premises. During the period of six months prior to the Expiration Date (or at any time, if Tenant
has vacated or abandoned the Premises or is otherwise in default under this Lease), Landlord and
its agents may exhibit the Premises to prospective tenants. Additionally, Landlord and Agent shall
have the following rights with respect to the Premises, exercisable without notice to Tenant,
without liability to Tenant, and without being deemed an eviction or disturbance of Tenant’s use or
possession of the Premises or giving rise to any claim for setoff or abatement of Rent: (i) to
designate and approve, prior to installation, all types of signs; (ii) to have pass keys, access
cards, or both, to the Premises; and (iii) to decorate, remodel, repair, alter or otherwise prepare
the Premises for reoccupancy at any time after Tenant vacates or abandons the Premises for more
than 30 consecutive days or without notice to Landlord of Tenant’s intention to reoccupy the
Premises.

     17. NON-LIABILITY AND INDEMNIFICATION.

          17.1. Non-Liability. Except as provided in Section 17.2.2, none of Landlord, Agent,
any other managing agent, or their respective affiliates, owners, partners, directors, officers,
agents and employees shall be liable to Tenant for any loss, injury, or damage, to Tenant or to any
other person, or to its or their property, irrespective of the cause of such injury, damage or
loss. Further, except as provided in Section 17.2.2, none of Landlord, Agent, any other managing
agent, or their respective affiliates, owners, partners, directors, officers, agents and employees
shall be liable to Tenant (a) for any damage caused by other tenants or persons in, upon or about
the Property, or caused by operations in construction of any public or quasi-public work; (b) with
respect to matters for which Landlord is liable, for consequential or indirect damages purportedly
arising out of any loss of use of the Premises or any equipment or facilities therein by Tenant or
any person claiming through or under Tenant; (c) any defect in the Premises or the Property; (d)
injury or damage to person or property caused by fire, or theft, or resulting from the operation of
heating or air conditioning or lighting apparatus, or from falling plaster, or from

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steam, gas, electricity, water, rain, snow, ice, or dampness, that may leak or flow from any
part of the Property, or from the pipes, appliances or plumbing work of the same.

          17.2. Indemnification.

               17.2.1. Tenant Indemnification. Tenant hereby indemnifies, defends, and holds
Landlord, Agent and their respective affiliates, owners, partners, directors, officers, agents and
employees (collectively, “Landlord Indemnified Parties”) harmless from and against any and all
Losses (defined below) arising from or in connection with any or all of: (a) the conduct or
management of either or both the Property and the Premises or any business therein, or any work or
Alterations done, or any condition created by any or all of Tenant and Tenant’s Parties in or about
the Premises during the Term or during the period of time, if any, prior to the Commencement Date
that Tenant is given access to the Premises; (b) any act, omission or negligence of any or all of
Tenant and Tenant’s Parties; (c) any accident, injury or damage whatsoever (unless caused by
Landlord’s negligence) occurring in, at or upon either or both of the Property and the Premises and
caused by any or all of Tenant and Tenant’s Parties; (d) any breach by Tenant of any of its
warranties and representations under this Lease; (e) any actions necessary to protect Landlord’s
interest under this Lease in a bankruptcy proceeding or other proceeding under the Bankruptcy Code;
(f) any violation or alleged violation by any or all of Tenant and Tenant’s Parties of any Law
including, without limitation, any Environmental Law; (g) any breach of the provisions of Section 9
by any or all of Tenant and Tenant’s Parties; (h) claims for work or labor performed or materials
supplies furnished to or at the request of any or all of Tenant and Tenant’s Parties; (i) claims
arising from any breach or default on the part of Tenant in the performance of any covenant
contained in this Lease; (j) any Hazardous Materials used, exposed, emitted, released, discharged,
generated, manufactured, sold, transported, handled, stored, treated, reused, presented, disposed
of or recycled in, at, near or under all or any portion of the Premises as a result of the acts or
omissions of any or all of Tenant and Tenant’s Parties; and (k) the violation of any Environmental
Law or any permit, application or consent required in connection with any Environmental Law by any
or all of Tenant and Tenant’s Parties with respect to the Premises during the Term, excluding,
however, any violation of any Environmental Law resulting directly from the acts or omissions of
Landlord and Landlord’s employees, agents and contractors (collectively, “Tenant’s Indemnified
Matters”). In case any action or proceeding is brought against any or all of Landlord and the
Landlord Indemnified Parties by reason of any of Tenant’s Indemnified Matters, Tenant, upon notice
from any or all of Landlord, Agent or any Superior Party (defined below), shall resist and defend
such action or proceeding by counsel reasonably satisfactory to, or selected by, Landlord. The
term “Losses” shall mean all claims, demands, expenses, actions, judgments. damages (actual, but
not consequential), penalties, fines, liabilities, losses of every kind and nature (including,
without limitation, property damage, diminution in value of Landlord’s interest in the Premises or
the Property, damages for the loss or restriction on use of any space or amenity within the
Premises or the Property, damages arising from any adverse impact on marketing space in the
Property, sums paid in settlement of claims and any costs and expenses associated with injury,
illness or death to or of any person), suits, administrative proceedings, costs and fees,
including, without limitation, attorneys’ and consultants’ reasonable fees and expenses, and the
costs of cleanup, remediation, removal and restoration, that are in any way related to any matter
covered by the foregoing indemnity. The provisions of this Section 17.2.1 shall survive the
expiration or termination of this Lease.

               17.2.2.
Landlord Indemnification. Landlord hereby indemnifies, defends and holds Tenant
harmless from and against any and all Losses actually suffered or incurred by Tenant as the sole
and direct result of any negligent, willful or intentional acts or omissions of any or all of
Landlord. Agent and any parties within the direct and sole control of either or both of Landlord
and Agent. In the event that any action or proceeding is brought against Tenant, and the foregoing
indemnity is applicable to such action or proceeding, then Landlord, upon notice from Tenant, shall
resist and defend such action or proceeding by counsel reasonably satisfactory to Tenant.
Notwithstanding anything to the contrary set forth in this Lease, however, in all events and under
all circumstances, the liability of Landlord to Tenant shall be limited to the interest of Landlord
in the Property, and Tenant agrees to look solely to Landlord’s interest in the Property for the
recovery of any judgment or award against Landlord, it being intended that Landlord shall not be
personally liable for any judgment or deficiency. The provisions of this Section 17.2.2 shall
survive the expiration or termination of this Lease.

          17.3. Force Majeure. (a) The obligations of Tenant hereunder shall not be affected,
impaired or excused, and Landlord shall have no liability whatsoever to Tenant, with respect to any
act, event or circumstance arising out of (i) Landlord’s failure to fulfill, or delay in fulfilling
any of its obligations under this Lease by reason of labor dispute, governmental preemption of
property in connection with a public emergency or shortages of fuel, supplies, or labor, or any
other cause, whether similar or dissimilar, beyond Landlord’s reasonable control; or (ii) any
failure or defect in the supply, quantity or character of utilities furnished to the Premises, or
by reason of any

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requirement, act or omission of any public utility or others serving the Property, beyond
Landlord’s reasonable control. (b) Tenant shall not have any liability whatsoever to Landlord with
respect to any delay by Tenant in the performance of any obligation of Tenant to repair, maintain
or replace the Premises or any portion thereof to the extent such failure arises out of or by
reason of a labor dispute, governmental preemption of property in connection with a public
emergency or shortages of fuel, supplies or labor, or any other cause, whether similar or
dissimilar, beyond Tenant’s reasonable control; provided, however, Tenant shall be excused from its
delay in the performance of any of its obligations described in this subsection (b) only if it
promptly performs each such obligation as soon as practicable after the cause for such delay ends.

     18. DAMAGE OR DESTRUCTION.

          18.1. Notification and Repair. Tenant shall give prompt notice to Landlord and Agent
of (a) any fire or other casualty to the Premises or the Property, and (b) any damage to, or defect
in, any part or appurtenance of the Property’s sanitary, electrical, IIVAC, elevator or other
systems located in or passing through the Premises or any part thereof. Tenant shall be liable for
any claim, loss, damage, cost or expense resulting from Tenant’s failure to give Landlord the
foregoing notice in a timely manner. Subject to the provisions of Section 18.3 below, if either or
both of the Property and the Premises is damaged by fire or other insured casualty, Landlord shall
repair (or cause Agent to repair) the damage and restore and rebuild the Property and/or the
Premises (except for Tenant’s Property) with reasonable dispatch after (x) notice to it of the
damage or destruction and (y) the adjustment of the insurance proceeds attributable to such damage.
Subject to the provisions of Section 18.3 below, Tenant shall not be entitled to terminate this
Lease and no damages, compensation or claim shall be payable by Landlord for purported
inconvenience, loss of business or annoyance arising from any repair or restoration of any portion
of the Premises or of the Property pursuant to this Section. Landlord (or Agent, as the case may
be) shall use its diligent, good faith efforts to make such repair or restoration promptly and in
such manner as not to unreasonably interfere with Tenant’s use and occupancy of the Premises, but
Landlord or Agent shall not be required to do such repair or restoration work except during normal
business hours of business days.

          18.2. Rental Abatement. Provided that any damage to either or both of the Property and
the Premises is not caused by, or is not the result of acts or omissions by, any or all of Tenant
and Tenant’s Parties, if (a) the Property is damaged by fire or other casualty thereby causing the
Premises to be inaccessible or (b) the Premises are partially damaged by fire or other casualty,
the Rent shall be proportionally abated to the extent of any actual loss of use of the Premises by
Tenant.

          18.3. Total Destruction. If the Property or the Premises shall be totally destroyed by
fire or other casualty, or if the Property shall be so damaged by fire or other casualty that (in
the reasonable opinion of a reputable contractor or architect designated by Landlord): (i) its
repair or restoration requires more than 180 days or (ii) such repair or restoration requires the
expenditure of more than 50% of the full insurable value of the Property immediately prior to the
casualty or (iii) the damage (x) is less than the amount stated in (ii) above, but more than 10% of
the full insurable value of the Property; and (y) occurs during the last two years of Lease Term,
Landlord and Tenant shall each have the option to terminate this Lease (by so advising the other,
in writing) within 10 days after said contractor or architect delivers written notice of its
opinion to Landlord and Tenant, but in all events prior to the commencement of any restoration of
the Premises or the Property by Landlord. In such event, the termination shall be effective as of
the date upon which either Landlord or Tenant, as the case may be, receives timely written notice
from the other terminating this Lease pursuant to the preceding sentence. If neither Landlord nor
Tenant timely delivers a termination notice, this Lease shall remain in full force and effect.
Notwithstanding the foregoing, if (A) any holder of a mortgage or deed of trust encumbering the
Property or landlord pursuant to a ground lease encumbering the Property (collectively, “Superior
Parties”) or other party entitled to the insurance proceeds fails to make such proceeds available
to Landlord in an amount sufficient for restoration of the Premises or the Property, or (B) the
issuer of any casualty insurance policies on the Property fails to make available to Landlord
sufficient proceeds for restoration of the Premises or the Property, then Landlord may, at
Landlord’s sole option, terminate this Lease by giving Tenant written notice to such effect within
30 days after Landlord receives notice from the Superior Party or insurance company, as the case
may be, that such proceeds shall not be made available, in which event the termination of this
Lease shall be effective as of the date Tenant receives written notice from Landlord of Landlord’s
election to terminate this Lease. Landlord shall have no liability to Tenant, and Tenant shall not
be entitled to terminate this Lease by virtue of any delays in completion of repairs and
restoration. For purposes of this Section 18.3 only, “full insurable value” shall mean replacement
cost, less the cost of footings, foundations and other structures below grade.

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          18.4. Insurance Proceeds. Landlord shall not be obligated to expend in repairs and
restoration an amount in excess of the proceeds of insurance recovered with respect to any
casualty. Tenant acknowledges that Landlord shall be entitled to the full proceeds of any
insurance coverage, whether carried by Landlord or Tenant, for damage to either or both of the
Premises and the Property (excluding any proceeds for damage to Tenant’s Property). In the event
that either or both of the Premises and the Property are not repaired or reconstructed, all
proceeds of insurance (excluding any proceeds covering Tenant’s Property), whether carried by
Landlord or Tenant, shall be payable to Landlord. Landlord’s duty to repair the Premises and the
Property (excluding Tenant’s Property) is limited to repairing the Premises to the condition
existing immediately prior to such fire or other casualty.

     19. EMINENT DOMAIN. If the whole, or any substantial (as reasonably determined by
Landlord) portion, of the Property is taken or condemned for any public use under any Law or by
right of eminent domain, or by private purchase in lieu thereof, and such taking would prevent or
materially interfere with the Permitted Use of the Premises, this Lease shall terminate effective
when the physical taking of said Premises occurs. If less than a substantial portion of the
Property is so taken or condemned, or if the taking or condemnation is temporary (regardless of the
portion of the Property affected), this Lease shall not terminate, but the Rent payable hereunder
shall be proportionally abated to the extent of any actual loss of use of the Premises by Tenant.
Landlord shall be entitled to any and all payment, income, rent or award, or any interest therein
whatsoever, which may be paid or made in connection with such a taking or conveyance, and Tenant
shall have no claim against Landlord for the value of any unexpired portion of this Lease.
Notwithstanding the foregoing, any compensation specifically and independently awarded to Tenant
for loss of business or goodwill, or for its personal property, shall be the property of Tenant.

     20. SURRENDER AND HOLDOVER. On the last day of the Term, or upon any earlier
termination of this Lease, or upon any re-entry by Landlord upon the Premises, (a) Tenant shall
quit and surrender the Premises to Landlord “broom-clean” and in good order, condition and repair
(as defined by Exhibit C, attached hereto and incorporated herein by reference), except for
ordinary wear and tear and such damage or destruction as Landlord is required to repair or restore
under this Lease, (b) Tenant shall remove all of Tenant’s Property therefrom, except as otherwise
expressly provided in this Lease, and (c) Tenant shall surrender to Landlord any and all keys,
access cards, computer codes or any other items used to access the Premises. Landlord shall be
permitted to inspect the Premises in order to verify compliance with this Section 20 at any time
prior to (x) the Expiration Date, (y) the effective date of any earlier termination of this Lease,
or (z) the surrender date otherwise agreed to in writing by Landlord and Tenant. The obligations
imposed under the first sentence of this Section 20 shall survive the termination or expiration of
this Lease. If any repairs are required to be performed in, to or at the Premises (pursuant to the
first sentence of this Section 20 or any other applicable provision of this Lease) upon the
expiration or termination of the Term, Tenant shall cause such repairs to be performed, to
Landlord’s reasonable satisfaction, within 10 business days after the date on which this Lease is
terminated or expired. If Tenant fails to timely comply with the preceding sentence, then Landlord
shall have the right to cause the repairs to be performed, at Tenant’s expense, and all such
expenses so incurred by Landlord shall bear interest (at the rate specified in the second sentence
of Section 22.3) from the date the expense is incurred until the date paid, in full, by Tenant
(inclusive of interest). If, without Landlord’s prior written consent, Tenant remains in
possession after the Expiration Date hereof or after any earlier termination date of this Lease or
of Tenant’s right to possession: (i) Tenant shall be deemed a tenant-at-will; (ii) Tenant shall pay
175% of the aggregate of the Base Rent and Additional Rent last prevailing hereunder, and also
shall pay all actual damages sustained by Landlord, directly by reason of Tenant’s remaining in
possession after the expiration or termination of this Lease; (iii) there shall be no renewal or
extension of this Lease by operation of law; and (iv) the tenancy-at-will may be terminated by
either party hereto upon 30 days’ prior written notice given by the terminating party to the
non-terminating party. The provisions of this Section 20 shall not constitute a waiver by Landlord
of any re-entry rights of Landlord provided hereunder or by law. Notwithstanding the foregoing, if
Tenant provides a written notice to Landlord not later than the date that is four (4) months prior
to the end of the Term that Tenant desires to negotiate with Landlord a renewal lease for the
Premises or for premises within other commercial or industrial space owned by Landlord within the
Salt Lake City metropolitan area, neither the Base Rent nor the Additional Rent increase set forth
in the immediately prior clause (ii) shall become effective prior to the later to occur of the last
day of the Term or the thirtieth (30th) day after Landlord provides written notice to Tenant that
Landlord will impose such increase notwithstanding the conduct of any such negotiations or the
termination thereof; provided, however, nothing in this sentence shall be construed as waiving or
excusing Tenant from the payment of Base Rent and Additional Rent during any holdover period at the
rate in effect as of the last day of this Lease or obligating Landlord to enter into any such
renewal lease with Tenant.

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     21. EVENTS OF DEFAULT.

          21.1. Bankruptcy of Tenant. It shall be a default by Tenant under this Lease if Tenant
makes an assignment for the benefit of creditors, or files a voluntary petition under any state or
federal bankruptcy or insolvency law, or an involuntary petition alleging an act of bankruptcy or
insolvency is filed against Tenant under any state or federal bankruptcy or insolvency law that is
not dismissed within 90 days, or whenever a petition is filed by or against (to the extent not
dismissed within 90 days) Tenant under the reorganization provisions of the United States
Bankruptcy Code or under the provisions of any state or federal law of like import, or whenever a
petition shall be filed by Tenant under the arrangement provisions of the United States Bankruptcy
Code or similar state or federal law, or whenever a receiver of Tenant, or of, or for, the property
of Tenant shall be appointed, or Tenant admits it is insolvent or is not able to pay its debts as
they mature.

          21.2. Default Provisions. Each of the following shall constitute a default by Tenant
under this Lease: (a) if Tenant fails to pay Rent or any other payment when due hereunder within
five days after written notice from Landlord of such failure to pay on the due date; provided,
however, that if in any consecutive 12 month period, Tenant shall, on two (2) separate occasions,
fail to pay any installment of Rent on the date such installment of Rent is due, then, on the third
such occasion and on each occasion thereafter on which Tenant shall fail to pay an installment of
Rent on the date such installment of Rent is due, Landlord shall be relieved from any obligation to
provide notice to Tenant, and Tenant shall then no longer have a five day period in which to cure
any such failure; or (b) if Tenant fails, whether by action or inaction, to timely comply with, or
satisfy, any or all of the obligations imposed on Tenant under this Lease (other than the
obligation to pay Rent) for a period of 30 days after Landlord’s delivery to Tenant of written
notice of such default under this Section 21.2(b); provided, however, that if the default cannot,
by its nature, be cured within such 30 day period, but Tenant commences and diligently pursues a
cure of such default promptly within the initial 30 day cure period, then Landlord shall not
exercise its remedies under Section 22 unless such default remains uncured for more than 60 days
after the initial delivery of Landlord’s original default notice.

     22. RIGHTS AND REMEDIES.

          22.1. Landlord’s Cure Rights Upon Default of Tenant. If Tenant defaults in the
performance of any of its obligations under this Lease, and fails to cure such default on a timely
basis (pursuant to Section 21.2), Landlord, without thereby waiving such default, may (but shall
not be obligated to) perform the same for the account, and at the expense of Tenant.

          22.2. Landlord’s Remedies. In the event of any default by Tenant under this Lease,
Landlord, at its option, and after any applicable notice and cure period (as required pursuant to
Section 21.2), but without additional notice or demand from Landlord, if any, as provided in
Section 21.2 has expired, may, in addition to all other rights and remedies provided in this Lease,
or otherwise at law or in equity: (a) terminate this Lease and Tenant’s right of possession of the
Premises; or (b) terminate Tenant’s right of possession of the Premises without terminating this
Lease; provided, however, that Landlord may, whether Landlord elects to proceed under Subsections
(a) or (b) above, relet the Premises, or any part thereof for the account of Tenant, for such rent
and term and upon such terms and conditions as are acceptable to Landlord. In addition, for
purposes of any reletting, Landlord is authorized to decorate, repair, alter and improve the
Premises to the extent deemed necessary by Landlord, in its sole discretion. In the event of the
termination of this Lease by Landlord pursuant to (a) above, Landlord shall be entitled to recover
from Tenant (i) all damages and other sums that Landlord is entitled to recover under any provision
of this Lease or at law or in equity, including, but not limited to, all fixed dollar amounts of
Base Rent and Additional Rent accrued and unpaid for the period up to and including such
termination date; (ii) all other additional sums payable by Tenant, or for which Tenant is liable,
or in respect of which Tenant has agreed to indemnify Landlord, under any of the provisions of this
Lease, that may be then owing and unpaid; all costs and expenses (including, without limitation,
court costs and attorneys’ reasonable fees) incurred by Landlord in the enforcement of its rights
and remedies under this Lease; and (iv) any damages provable by Landlord as a matter of law
including, without limitation, an amount equal to the positive difference, if any, between (x) the
discounted present value (at 6% per annum) of the Base Rent provided to be paid for the remainder
of the Term (measured from the effective termination date of this Lease) and (y) the fair market
rental value of the Leased Premises (determined at the date of termination of this Lease) after
deduction (from such fair market rental value) of the projected costs and expenses of reletting the
Premises (including the anticipated costs of repairs, alterations, improvements, additions, legal
fees and brokerage commissions) as reasonably estimated by Landlord. If Landlord elects to pursue
its rights and remedies under Subsection (b) above, and the Premises are relet and a sufficient sum
is not realized therefrom, then to satisfy the payment, when due, of Base Rent and Additional Rent
reserved under the Lease for

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any monthly period (after payment of all Landlord’s reasonable expenses of reletting), Tenant
shall, in Landlord’s sole judgment, either (i) pay any such deficiency monthly or (ii) pay such
deficiency on an accelerated basis, which accelerated deficiency shall be discounted at a rate of
6% per annum. If Landlord elects to pursue its rights and remedies under Subsection (b) above, and
Landlord fails to relet the Premises, then Tenant shall pay to Landlord the sum of (x) the
projected costs of Landlord’s expenses of reletting (including the anticipated costs of repairs,
alterations, improvements, additions, legal fees and brokerage commissions) as reasonably estimated
by Landlord and (y) the accelerated amount of Base Rent and Additional Rent due under the Lease for
the balance of the Term, discounted to present value at a rate of 6% per annum. Tenant agrees that
Landlord may file suit to recover any sums due to Landlord hereunder from time to time and that
such suit or recovery of any amount due Landlord hereunder shall not be any defense to any
subsequent action brought for any amount not theretofore reduced to judgment in favor of Landlord.
If Landlord elects to pursue its rights and remedies under Subsection (b), then Landlord shall at
any time have the further right and remedy to rescind such election and pursue its rights and
remedies under Subsection (a). In the event Landlord elects, pursuant to clause (b) of this
Section 22.2, to terminate Tenant’s right of possession only, without terminating this Lease,
Landlord may, at Landlord’s option, enter into the Premises, remove Tenant’s Property, Tenant’s
signs and other evidences of tenancy, and take and hold possession thereof, as provided in Section
20 hereof; provided, however, that such entry and possession shall not terminate this Lease or
release Tenant, in whole or in part, from Tenant’s obligation to pay the Base Rent and Additional
Rent reserved hereunder for the full Term, or from any other obligation of Tenant under this Lease.
Any and all property that may be removed from the Premises by Landlord pursuant to the authority
of the Lease or of law, to which Tenant is or may be entitled, may be handled, removed or stored by
Landlord at the sole risk, cost and expense of Tenant, and in no event or circumstance shall
Landlord be responsible for the value, preservation or safekeeping thereof. Tenant shall pay to
Landlord, upon demand, any and all expenses incurred in such removal and all storage charges
against such property so long as the same shall be in Landlord’s possession or under Landlord’s
control. Any such property of Tenant not retaken from storage by Tenant within 30 days after the
end of the Term, however terminated, shall be conclusively presumed to have been conveyed by Tenant
to Landlord under this Lease as in a bill of sale, without further payment or credit by Landlord to
Tenant.

          22.3. Additional Rights of Landlord. Any and all costs, expenses and disbursements, of
any kind or nature, incurred by Landlord or Agent in connection with the enforcement of any and all
of the terms and provisions of this Lease, including attorneys’ reasonable fees (through all
appellate proceedings), shall be due and payable (as Additional Rent) upon Landlord’s submission of
an invoice therefor. All sums advanced by Landlord or Agent on account of Tenant under this
Section, or pursuant to any other provision of this Lease, and all Base Rent and Additional Rent,
if delinquent or not paid by Tenant and received by Landlord when due hereunder, shall bear
interest at the rate of 5% per annum above the “prime” or “reference” or “base” rate (on a per
annum basis) of interest publicly announced as such, from time to time, by the Bank One, or its
successor (“Default interest”), from the due date thereof until paid, and such interest shall be
and constitute Additional Rent and be due and payable upon Landlord’s or Agent’s submission of an
invoice therefor. The various rights, remedies and elections of Landlord reserved, expressed or
contained herein are cumulative and no one of them shall be deemed to be exclusive of the others or
of such other rights, remedies, options or elections as are now or may hereafter be conferred upon
Landlord by law.

          22.4. Event of Bankruptcy. In addition to, and in no way limiting the other remedies
set forth herein, Landlord and Tenant agree that if Tenant ever becomes the subject of a voluntary
or involuntary bankruptcy, reorganization, composition, or other similar type proceeding under the
federal bankruptcy laws, as now enacted or hereinafter amended, then: (a) “adequate assurance of
future performance” by Tenant pursuant to Bankruptcy Code Section 365 will include (but not be
limited to) payment of an additional/new security deposit in the amount of three times the then
current Base Rent payable hereunder; (b) any person or entity to which this Lease is assigned,
pursuant to the provisions of the Bankruptcy Code, shall be deemed, without further act or deed, to
have assumed all of the obligations of Tenant arising under this Lease on and after the effective
date of such assignment, and any such assignee shall, upon demand by Landlord, execute and deliver
to Landlord an instrument confirming such assumption of liability; (c) notwithstanding anything in
this Lease to the contrary, all amounts payable by Tenant to or on behalf of Landlord under this
Lease, whether or not expressly denominated as “Rent”, shall constitute “rent” for the purposes of
Section 502(6)(6) of the Bankruptcy Code; and (d) if this Lease is assigned to any person or entity
pursuant to the provisions of the Bankruptcy Code, any and all monies or other considerations
payable or otherwise to be delivered to Landlord or Agent (including Base Rent, Additional Rent and
other amounts hereunder), shall be and remain the exclusive property of Landlord and shall not
constitute property of Tenant or of the bankruptcy estate of Tenant. Any and all monies or other
considerations constituting Landlord’s property under

16

 

the preceding sentence not paid or delivered to Landlord or Agent shall be held in trust by
Tenant or Tenant’s bankruptcy estate for the benefit of Landlord and shall be promptly paid to or
turned over to Landlord.

     23. BROKER. Tenant covenants, warrants and represents that the broker set forth in
Section 1.9(A) was the only broker to represent Tenant in the negotiation of this Lease (“Tenant’s
Broker”). Landlord covenants, warrants and represents that the broker set forth in Section 1.9(B)
was the only broker to represent Landlord in the negotiation of this Lease (“Landlord’s Broker”).
Landlord shall be solely responsible for paying the commission of Landlord’s Broker and Tenant’s
Broker. Each party agrees to and hereby does defend, indemnify and hold the other harmless against
and from any brokerage commissions or finder’s fees or claims therefor by a party claiming to have
dealt with the indemnifying party and all costs, expenses and liabilities in connection therewith,
including, without limitation, reasonable attorneys’ fees and expenses, for any breach of the
foregoing. The foregoing indemnification shall survive the termination or expiration of this
Lease.

     24. MISCELLANEOUS.

          24.1. Merger. All prior understandings and agreements between the parties are merged
in this Lease, which alone fully and completely expresses the agreement of the parties. No
agreement shall be effective to modify this Lease, in whole or in part, unless such agreement is in
writing, and is signed by the party against whom enforcement of said change or modification is
sought.

          24.2. Notices. Any notice required to be given by either party pursuant to this Lease,
shall be in writing and shall be deemed to have been properly given, rendered or made only if
personally delivered, or if sent by Federal Express or other comparable commercial overnight
delivery service, addressed to the other party at the addresses set forth below (or to such other
address as Landlord or Tenant may designate to each other from time to time by written notice), and
shall be deemed to have been given, rendered or made on the day so delivered or on the first
business day after having been deposited with the courier service:

	 	 	 	 	 
	 

	 	If to Landlord:
	 	First Industrial, L.P.
	 

	 	 	 	311 South Wacker Drive, Suite 4000
	 

	 	 	 	Chicago, Illinois 60606
	 

	 	 	 	Attn: Vice President — Operations Management
	 
	 	 	 	 
	 

	 	With a copy to:
	 	First industrial Realty Trust, Inc.
	 

	 	 	 	1270 West 2320 South, STE C
	 

	 	 	 	West Valley City, UT 84119
	 

	 	 	 	Attn: James D. Pivirotto
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Barack Ferrazzano Kirschbaum Perlman & Nagelberg
	 

	 	 	 	333 West Wacker Drive
	 

	 	 	 	Suite 2700
	 

	 	 	 	Chicago, Illinois 60606
	 

	 	 	 	Attn: Suzanne Bessette-Smith
	 
	 	 	 	 
	 

	 	If to Tenant:
	 	ZARS, Inc.
	 

	 	 	 	1142 West 2320 South, STE A
	 

	 	 	 	West Valley City, UT 84119
	 

	 	 	 	Attn: Larry Rigby
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Ballard Spahr Andrews & Ingersoll, LLP
	 

	 	 	 	201 South Main, STE 600
	 

	 	 	 	Salt Lake City, UT 84103
	 

	 	 	 	Attn: David R. Rudd

17

 

          24.3. Non-Waiver. The failure of either party to insist, in any one or more instances,
upon the strict performance of any one or more of the obligations of this Lease, or to exercise any
election herein contained, shall not be construed as a waiver or relinquishment for the future of
the performance of such one or more obligations of this Lease or of the right to exercise such
election, but the Lease shall continue and remain in full force and effect with respect to any
subsequent breach, act or omission. The receipt and acceptance by Landlord or Agent of Base Rent
or Additional Rent with knowledge of breach by Tenant of any obligation of this Lease shall not be
deemed a waiver of such breach.

          24.4. Legal Costs. Any party in breach or default under this Lease (the
“Defaulting Party”) shall reimburse the other party (the “Nondefaulting Party”) upon demand
for any legal fees and court (or other administrative proceeding) costs or expenses that the
Nondefaulting Party incurs in connection with the breach or default, regardless whether suit is
commenced or judgment entered. Such costs shall include legal fees and costs incurred for the
negotiation of a settlement, enforcement of rights or otherwise. Furthermore, in the event of
litigation, the court in such action shall award to the party in whose favor a judgment is entered
a reasonable sum as attorneys’ fees and costs, which sum shall be paid by the losing party. Tenant
shall pay Landlord’s attorneys’ reasonable fees incurred in connection with Tenant’s request for
Landlord’s consent under provisions of this Lease governing assignment and subletting, or in
connection with any other act which Tenant proposes to do and which requires Landlord’s consent.

          24.5. Parties Bound. Except as otherwise expressly provided for in this Lease, this
Lease shall be binding upon, and inure to the benefit of, the successors and assignees of the
parties hereto. Tenant hereby releases Landlord named herein from any obligations of Landlord for
any period subsequent to the conveyance and transfer of Landlord’s ownership interest in the
Property. In the event of such conveyance and transfer, Landlord’s obligations shall thereafter be
binding upon each transferee (whether Successor Landlord or otherwise). No obligation of Landlord
shall arise under this Lease until the instrument is signed by, and delivered to, both Landlord and
Tenant.

          24.6. Recordation of Lease. Tenant shall not record or file this Lease (or any
memorandum hereof) in the public records of any county or state.

          24.7. Survival of Obligations. Upon the expiration or other termination of this Lease,
neither party shall have any further obligation nor liability to the other except as otherwise
expressly provided in this Lease and except for such obligations as, by their nature or under the
circumstances, can only be, or by the provisions of this Lease, may be performed after such
expiration or other termination.

          24.8. Governing Law; Construction. This Lease shall be governed by and construed in
accordance with the laws of the state in which the Property is located. If any provision of this
Lease shall be invalid or unenforceable, the remainder of this Lease shall not be affected but
shall be enforced to the extent permitted by law. The captions, headings and titles in this Lease
are solely for convenience of reference and shall not affect its interpretation. This Lease shall
be construed without regard to any presumption or other rule requiring construction against the
party causing this Lease to be drafted. Each covenant, agreement, obligation, or other provision
of this Lease to be performed by Tenant, shall be construed as a separate and independent covenant
of Tenant, not dependent on any other provision of this Lease. All terms and words used in this
Lease, regardless of the number or gender in which they are used, shall be deemed to include any
other number and any other gender as the context may require. This Lease may be executed in
counterpart and, when all counterpart documents are executed, the counterparts shall constitute a
single binding instrument.

          24.9. Time. Time is of the essence for this Lease. If the time for performance
hereunder falls on a Saturday, Sunday or a day that is recognized as a holiday in the state in
which the Property is located, then such time shall be deemed extended to the next day that is not
a Saturday, Sunday or holiday in said state.

          24.10. Authority of Tenant. If Tenant is a corporation, partnership, limited liability
company, association or any other entity, it shall deliver to Landlord, concurrently with the
delivery to Landlord of an executed Lease, certified resolutions of Tenant’s directors or other
governing person or body (i) authorizing execution and delivery of this Lease and the performance
by Tenant of its obligations hereunder and (ii) certifying the authority of the party executing the
Lease as having been duly authorized to do so.

          24.11. WAIVER OF TRIAL BY JURY. THE LANDLORD AND THE TENANT, TO THE FULLEST EXTENT
THAT THEY MAY LAWFULLY DO SO, HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING BROUGHT BY ANY
PARTY TO THIS LEASE WITH RESPECT TO THIS LEASE, THE PREMISES, OR ANY OTHER MATTER RELATED TO THIS
LEASE OR THE PREMISES.

18

 

          24.12. Relocation. This Section intentionally deleted.

          24.13. Financial Information. From time to time during the Term, but not more than
once per calendar year, and more frequently upon Landlord’s request in connection with a bono-fide
anticipated sale or financing with respect to the Building or Property or if Tenant is in default
under this Lease as outlined in Section 21 above, Tenant shall deliver to Landlord it’s most recent
audited financial statements (as audited by an independent accounting firm), or, if Tenant does not
have audited financial statements for such period, Tenant’s most recent internal financial
statements including the income statement and balance sheet of Tenant, which is prepared annually
with respect to the preceding calendar year, within ten (10) days following Landlord’s written
request therefor.

          24.14. Confidential Information. Tenant agrees to maintain in strict confidence the
economic terms of this Lease and any or all other materials, data and information delivered to or
received by any or all of Tenant and Tenants’ Parties either prior to or during the Term in
connection with the negotiation and execution hereof. The provisions of this Section 24.14 shall
survive the termination of this Lease.

          24.15. Submission of Lease. Submission of this Lease to Tenant for signature does not
constitute a reservation of space or an option to lease. This Lease is not effective until
execution by and delivery to both Landlord and Tenant.

          24.16. Joint and Several Liability. This Section intentionally deleted.

          24.17. Riders. All Riders and Exhibits attached hereto and executed (or initialed)
both by Landlord and Tenant shall be deemed to be a part hereof and hereby incorporated herein.

[Signature Page to Follow]

19

 

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

	 	 	 	 	 	 	 
	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 
	 	 	FIRST INDUSTRIAL, L.P., a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 
	 	 	By: First Industrial Realty Trust, Inc., a Maryland corporation	 	 
	 	 	Its: general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Greg Downs	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Greg Downs	 	 
	 

	 	Its:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 
	 	 	ZARS Inc., a Utah corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Larry Rigby	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Larry Rigby	 	 
	 

	 	Its:
	 	President & CEO
	 	 

S-1

 

EXHIBIT A

PROPERTY

Tenant will be allocated the use of 45 parking spaces during the term of
this Lease. Said parking spaces will be located to the south, east and west of
the premises and will be in common with other Tenants of the Property and
Building.

A-1

 

LEASE EXHIBIT B

Landlord’s Repairs and Improvements

WORK LETTER

To induce Tenant to enter into the Lease (to which this Exhibit is attached) and in consideration
of the mutual covenants hereinafter contained, Landlord and Tenant agree as follows:

Improvements.

Landlord agrees that it shall construct, in a first-class and professional manner and in accordance
with applicable building codes, the improvements to the Premises (the “Improvements”) described
below including, without limitation, architectural, mechanical and electrical working drawings for
the Improvements as submitted for issuance of the building permit and changes required by local
authorities pursuant to the issuance of the permit (the “Plans”), and that such Improvements shall
thereafter be deemed to be part of the Premises.

Tenant has delivered the Plans for the Improvements to the Premises to Landlord as of May 19, 2003.
The Plans are hereby approved by Landlord and shall be subject to the approval of all local
governmental authorities whose approval is required under applicable law. Thereafter, revisions to
the Plans shall be subject to the mutual agreement of Tenant and Landlord and, except as otherwise
agreed to in writing by both parties, shall be at Tenant’s sole cost and expense. The Plans are as
follows: Landlord will repaint and re-carpet the premises using Landlord’s standard carpet and
paint. Tenant will choose the colors of said paint and carpet from Landlord’s samples.
Additionally, Landlord will build three rooms with roughed in plumbing for one sink each. Said
rooms will have ceilings and lighting to match the rest of the Premises but will have VCT flooring.
A set of standard double doors will be installed from the existing large lab space into the
warehouse. One section of wall approximately twelve feet long and nine feet tall will be removed
at the west end of the premises. The Plans are initialed and attached to this EXHIBIT B to the
lease.

Substantial Completion by Commencement Date.

Landlord shall Substantially Complete (as defined below) the Improvements on or before the
Commencement Date (as defined below). “Substantial Completion” and “Substantially Complete” shall
mean (i) Landlord’s Improvements have been constructed in accordance with the terms of this
Article, (ii) a final, unconditional certificate of occupancy permitting the permanent occupancy of
the entire Premises has been issued, and (iii) following inspection of the Premises by Tenant and
Landlord, Landlord shall use its best efforts to correct any unfinished items (the “Punchlist
Items”) within thirty (30) days after being provided with a written list of such Punchlist Items by
Landlord and Tenant.

In the event Landlord fails to Substantially Complete (as defined below) the Improvements prior to
the Commencement Date, then Lease commencement shall not be delayed until Substantial Completion is
attained. In the event that Landlord fails to complete all of the Punchlist Items by the date that
is thirty (30) days after Tenant provides Landlord with a written list of such items, then Tenant
may complete any such remaining Punchlist Item(s) and invoice Landlord for the cost of completing
such Punchlist Item(s).

Inspection.

Tenant and its agents shall have the right, upon reasonable advance notice or upon a mutually
acceptable schedule, to inspect the Premises and the progress of the Work to verify that the
Improvements are being constructed by Landlord in accordance with the Plans. In the event that
such inspection reveals that the Improvements are not being performed in accordance the Plans,
Tenant or its agent shall notify Landlord in writing of those deficiencies within two (2) business
days after the applicable inspection. Landlord shall promptly take whatever action is necessary to
correct such deficiencies and advise Tenant or its agent of such actions. In the event Landlord
disagrees with any deficiency stated in Tenant’s notice. Landlord shall advise Tenant in writing
within two (2) days after receipt of Tenant’s notice of any items that it disputes and the reasons
therefore.

B-1

 

Preliminary Term.

Tenant agrees that any entry by it, its contractors or agents during the Preliminary Term, the Term
Prior to Lease Commencement, shall be subject to all of the terms, provisions, covenants and
conditions of the Lease except as to the covenant to pay Base Rent or Additional Rent, and further
agrees that Landlord shall not be liable in any way for any injury, loss or damage which may occur
to any of Tenant’s work and installations made in the Premises or to the properties placed therein
prior to the Commencement Date, the same being at Tenant’s sole risk. Notwithstanding the
foregoing, should Landlord substantially complete the Premises prior to the Commencement Date and
Tenant occupies and conducts any business in any part of the Premises prior to the Commencement
Date then the Commencement Date shall become the date of occupancy.

B-2

 

EXHIBIT C

Broom Clean Condition and Repair Requirements

	•	 	All walls must be clean and free of holes.
	 
	•	 	Overhead door must be free of any broken panels, cracked lumber or dented panels. The
overhead door springs, rollers, tracks, motorized door operator, and all other items
pertaining to the overhead door must also be in good working condition.
	 
	•	 	HVAC system must be in good working order. Filters must be changed, and all thermostats
must be in working order. Tenant must supply Landlord with maintenance records.
	 
	•	 	All floors (warehouse and office) must be clean and free of excessive dust, dirt,
grease, oil and stains.
	 
	•	 	Drop grid ceiling, must be free of excessive dust from lack of changing filters. (No
ceiling tiles may be missing or damaged.)
	 
	•	 	All trash must be removed from both inside and outside of the Building.
	 
	•	 	All lightbulbs and ballasts must be working.
	 
	•	 	All signs in front of Building and on glass entry door and rear door must be removed.
	 
	•	 	Hot water heater must work.
	 
	•	 	All plumbing fixtures, equipment and drains must be clean and in working order.
	 
	•	 	Windows must be clean.
	 
	•	 	All mechanical and electrical systems must be in good working condition.

C-1

 

LEASE EXHIBIT D

TENANT OPERATIONS INQUIRY

	 	 	 
	Tenant Name:
	 	 
	 

	 	 

	 	 	 
	Tenant SIC Code/Description:
	 	 
	 

	 	 

	 	 	 
	Property Address:
	 	 
	 

	 	 

	 	 	 
	Property/Number/Region:
	 	 
	 

	 	 

 

					
	1.

	 	Name of Company (if different from above)	 	 
	 

	 	 	 	 

	 	 	 	 	 
	2.

	 	Address (local):	 	 
	 

	 	 	 	 
	 

	 	Phone (local)	 	 
	 

	 	 	 	 

	 	 	 	 	 
	3.

	 	Address (corporate):	 	 
	 

	 	 	 	 
	 

	 	Phone (corporate)	 	 
	 

	 	 	 	 

	 	 	 	 	 
	4.

	 	What is your business (brief description):	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 

	 	 	 	 	 
	5.

	 	What operations will you maintain at the proposed facility?	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 

	 	 	 
	6.

	 	Has your business received any Notices of Violation of environmental laws from municipal or
state agencies regarding operations at your current facility? If so, explain:
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

	 	 	 
	7.

	 	Describe any assembly, manufacturing, machining, painting, printing or mechanical repair
activities that will be part of your business operations at the proposed facility:
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

	 	 	 
	8.

	 	Will your employees operate electrical equipment that contains PCB’s?   YES   NO

	 	 	 
	9.

	 	Will your business operate one or more Underground Storage Tanks (UST’s) at the proposed
facility?

  YES    NO   

	 	 	 
	10.

	 	Will your business operate one or more Aboveground Storage Tanks (AST’s) at the proposed
facility?

  YES    NO   

C-2

 

	11.	 	TENANT CHEMICAL INVENTORY AT PROPOSED FACILITY — (make additional copies, if required). You
may exclude small quantities of toner and other office supplies)

	 	 	 	 	 	 	 	 	 
	Chemicals	 	What will be the	 	What will be the	 	 	 	 
	(by name where	 	average quantity on the	 	maximum quantity on	 	What will be the annual	 	How will the chemical
	available)	 	 proposed premises?	 	the proposed premises?	 	 quantity used?	 	 be stored?
	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 

C-3

 

	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

Storage Methods (use all that apply): A) 55 gallon drum; B) 20 gallon drum; C) 2-5 gallon
pallet/container; D) bulk dry packages; E) cartoned small containers (less than 2 gallons or 10
pounds) on pallets; F) on floor; G) on racks; H) Underground Storage Tank (UST); I) Above Ground
Storage Tank (AST); J) other (please describe).

	 	 	 	 	 
	12.	 	Describe any pollution control equipment that will be used at the proposed facility (example:
paint spray booth, fume hood, waste water treatment).
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 

	 	 	 	 	 	 	 
	13.

	 	Will your operations

generate any chemical 

wastes that require 

special disposal?

(example: waste oil,

waste solvent)
	 	How will the 

chemical wastes 

be stored on-site?
	 	How will the wastes

be disposed?

(example: recycled, 

landfilled, incinerated)
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 

	 	 	 
	14.

	 	Does your business have an EPA Hazardous Waste Generator ID Number?   YES    NO  

C-4

 

	 	 	 	 	 
	15.	 	What spill prevention and containment measures will be in place for the chemicals and wastes
stored at the proposed facility? (describe briefly)
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 
	 	 	 	 
	 

	 	 	 
	16.

	 	Does your business have an Emergency Response or Contingency Plan in place in the event of a
chemical incident (please provide a copy)    YES    NO  

	 	 	 	 	 
	17.	 	Does your business have any type of Hazardous Materials training program for your employees?
(describe briefly):
	 

	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 

	 	 	 
	18.

	 	Do you have copies of all Material Safety Data Sheets (MSDS) at your facility for the
chemicals listed in question #7? (Please provide copies): YES NO

	 	 	 
	19.

	 	Does your business carry environmental insurance coverage in the event of a chemical
incident?

YES         NO

	 	 	 
	20.

	 	Will you be required to make filings and notices or obtain permits as required by Federal
and/or State regulations for the operations at the proposed facility? Specifically:

	 	 	 	 	 
	a. SARA Title lIl Section 312 (Tier II) reports

	 	YES
	 	NO
	(> 10,000lbs. of hazardous materials STORED at any one time)
	 	 	 	 
	 
	 	 	 	 
	b. SARA Title III Section 313 (Tier III) Form R reports

	 	YEN
	 	NO
	(> 10,000lbs. of hazardous materials USED per year)
	 	 	 	 
	 
	 	 	 	 
	c. NPDES or SPDES Stormwater Discharge permit

	 	YES
	 	NO
	(answer “No” if “No-Exposure Certification” filed)
	 	 	 	 

C-5

 

	21.	 	This form was prepared by the undersigned as a complete and correct description of Tenant’s
proposed operations at the location noted, and the Landlord may rely on this information.

	 	 	 	 	 	 	 
	/s/ Larry Rigby
	 	 	 	Larry Rigby	 	 
	 

Signature

	 	 	 	 

Print Name
	 	 
	 
	 	 	 	 	 	 
	 

Date

	 	 
	 	 	 	 

C-6

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