Document:

exv10w22

 

EXHIBIT 10.22

LEASE

THIS INDENTURE of lease, entered into this 18th day of April, 2006, by and between Dennis P. Dirlam
(“Landlord”) and Wireless Ronin Technologies, Inc. (“Tenant”).

DEFINITIONS

“Property” — That certain real property located in the City of Eden Prairie, County of Hennepin
State of Minnesota, and legally described on Exhibit A attached hereto and made a part hereof,
including all buildings and site improvements located thereon.

“Building” — That certain office/warehouse building containing approximately 29,700 square feet
located upon the Property and commonly described as Dirlam Warehouse.

“Demised Premises” — That certain portion of the Building located at 14793 Martin Drive, Eden
Prairie, Minnesota, consisting of approximately 2,160 square feet (0 square feet office and 2,160
square feet of warehouse space), as measured from the outside walls of the Demised Premises to the
center of the demising wall, as shown on the floor plan attached hereto as Exhibit B and made a
part hereof. The Demised Premises include the non-exclusive right of access to common areas, as
hereinafter defined, and all licenses and easements appurtenant to the Demised Premises.

“Common Areas” — The term “common area” means the entire areas available for the non-exclusive use
by Tenant and other Tenants in the Building, including, but not limited to, corridors, lavatories,
driveways, truck docks, parking lots and landscaped areas. Subject to reasonable rules and
regulations promulgated by Landlord, the common areas are hereby made available to Tenant and its
employees, agents, customers, and invitees for reasonable use in common with other Tenants, their
employees, agents, customers and invitees.

TERM

	1.	 	For and in consideration of the rents, additional rents, terms, provisions and covenants
herein contained, Landlord hereby lets, leases and demises to Tenant the Demised Premises for
a term commencing on the earlier of (i) the 19th day of April, 2006 or (ii) the
date on which Tenant opens the Demised Premises for business (the “Commencement Date”) and
expiring the 30th day of September, 2007 (the “Expiration Date”), unless sooner
terminated as hereinafter provided. After lease expires, Tenant shall be able to extend the
lease from month to month, cancelable by either party with thirty days written notice, and
have a right of first refusal on any similar vacant warehouse space.

BASE RENT

	2.	 	Tenant shall to pay to Landlord base rent for the Demised Premises (“Base Rent”), exclusive
of any other charge provided for in this Lease to be paid by Tenant, as set forth below. Base
Rent shall be payable in equal monthly installments, in advance, commencing on the first full
month of the term of this Lease, and continuing on the first

 

 

	 	 	day of each subsequent month during the term hereof. In the event the term hereof commences
on a day other than the first day of a month, Base Rent payable during such first month
shall be adjusted on a pro rata basis and shall be paid contemporaneously with the execution
of this lease. Base Rent shall be paid without setoff, deduction, demand or counterclaim of
any nature whatsoever, in advance on the first day of each and every calendar month during
the term hereof.

	 	 	 	 	 
	 	 	Monthly GROSS	 
	Dates
	 	Rent	 
	4/19/06 to 4/30/06
	 	$	540.00	 
	05/01/06 to 09/30/07
	 	$	1,350.00	 

	 	 	All Rent and other sums payable hereunder by Tenant which are not paid when due shall bear
interest from the date due to the date paid at a rate of three and one half percent (3.5%)
per annum in excess of the “Prime Rate” published in the Wall Street Journal, as the same
changes from time to time (the “Default Rate”).

COVENANT TO PAY RENT

	1.	 	The covenants of Tenant to pay the Base Rent and the Additional Rent are each independent of
any other covenant, condition, provision or agreement contained in this Lease. All rents are
payable to Landlord at:

Dennis P. Dirlam

15241 Creekside Court

Eden Prairie, MN 55346

(612) 759-0411

	 	 	(or such other address indicated in writing by Landlord).

UTILITIES

	1.	 	Landlord shall provide mains and conduits to supply water, gas, electricity and sanitary
sewage to the Property. If Landlord elects to furnish any of the foregoing utility services
or other services furnished or caused to be furnished to Tenant, then the rate charged by
Landlord shall not exceed the rate Tenant would be required to pay to a utility company or
service company furnishing any of the foregoing utilities or services. All amounts payable by
Tenant to Landlord hereunder shall be deemed Additional Rent in accordance with Article 3.

 

 

CARE AND REPAIR OF DEMISED PREMISES

	1.	 	Tenant shall, at all times throughout the term of this Lease, including renewals and
extensions, and at its sole expense, keep and maintain the Demised Premises in a clean, safe,
sanitary and first class condition and in compliance with all applicable laws, codes,
ordinances, rules and regulations. Tenant’s obligations hereunder shall include but not be
limited to the maintenance, repair and replacement, if necessary, of heating and air
conditioning fixtures, equipment, and systems (the “HVAC Equipment”), all lighting and
plumbing fixtures and equipment, fixtures, motors and machinery, all interior walls,
partitions, doors and windows, including the regular painting thereof, all exterior entrances
to the Demised Premises, windows, doors and loading docks and dock equipment and the
replacement of all broken glass. When used in this provision, the term “repairs” shall
include replacements or renewals when necessary, and all such repairs made by the Tenant shall
be equal in quality and class to the original work. Without limiting the generality of the
foregoing, Tenant shall obtain and maintain at all times during the term of this Lease a
maintenance contract with a responsible, licensed HVAC contractor, on terms reasonably
acceptable to Landlord, for the regular maintenance of all HVAC Equipment within or
exclusively serving the Demised Premises, and shall be responsible for the performance of all
maintenance to be performed thereunder. Tenant shall keep accurate and complete records of
the performance of all scheduled maintenance under such contract and shall provide copies
thereof to Landlord from time to time upon request by Landlord. The Tenant shall keep and
maintain all portions of the Demised Premises and the sidewalk and areas adjoining the same in
a clean and orderly condition, free of accumulation of dirt, rubbish, snow and ice.
	 
	 	 	If Tenant fails, refuses or neglects to maintain or repair the Demised Premises as required
in this Lease, after notice shall have been given Tenant in accordance with Article 33 of
this Lease, Landlord may make such repairs without liability to Tenant for any loss or
damage that may accrue to Tenant’s merchandise, fixtures or other property or to Tenant’s
business by reason thereof, and upon completion thereof, Tenant shall pay to Landlord all
costs plus 15% for overhead incurred by Landlord in making such repairs upon presentation to
Tenant of bill therefor; provided, however, that no notice shall be required in the event of
any hazardous or emergency condition.
	 
	 	 	Landlord shall repair, at its expense (subject to inclusion in “Operating Expenses” pursuant
to Section 3), the structural portions of the Building; provided, however, where structural
repairs are required to be made by reason of the acts of Tenant, the costs thereof shall be
borne by Tenant and payable by Tenant to Landlord upon demand.
	 
	 	 	Except as otherwise provided herein, the Landlord shall be responsible for all outside
maintenance of the Demised Premises, including grounds and parking areas. All such
maintenance which is the responsibility of the Landlord shall be provided as reasonably
necessary to the comfortable use and occupancy of Demised Premises during business hours,
except Saturdays, Sundays and holidays, upon the condition that the Landlord shall not be
liable for damages for failure to do so due to causes beyond its control.

 

 

SIGNS

	7.	 	Any sign, lettering, picture, notice or advertisement installed on or in any part of the
Property and visible from the exterior of the Building, or visible from the exterior of the
Demised Premises, shall be subject to Landlord’s prior approval and shall be installed at
Tenant’s expense. In the event of a violation of the foregoing by Tenant, Landlord may remove
the same without any liability and may charge the expense incurred by such removal to Tenant.

ALTERATIONS, INSTALLATION, FIXTURES

	8.	 	Except as hereinafter provided, Tenant shall not make any alteration, additions, or
improvements in or to the Demised Premises or add, disturb or in any way change any plumbing
or wiring therein without the prior written consent of the Landlord. In the event alterations
are required by any governmental agency by reason of the use and occupancy of the Demised
Premises by Tenant, Tenant shall make such alterations at its own cost and expense after first
obtaining Landlord’s approval of plans and specifications therefor and furnishing such
indemnification as Landlord may reasonably require against liens, costs, damages and expenses
arising out of such alterations. Alterations or additions by Tenant must be made in
compliance with all laws, ordinances and governmental regulations affecting the Property and
Tenant shall warrant to Landlord that all such alterations, additions, or improvements shall
be in strict compliance with all relevant laws, ordinances, governmental regulations, permits
and insurance requirements. Construction of such alterations or additions shall commence only
upon Tenant obtaining and exhibiting to Landlord the requisite approvals, licenses and permits
and indemnification against liens. All alterations, installations, physical additions or
improvements to the Demised Premises made by Tenant shall at once become the property of
Landlord and shall be surrendered to Landlord upon the termination of this Lease; provided,
however, this clause shall not apply to movable equipment or furniture owned by Tenant, which
may be removed by Tenant at the end of the term of this Lease if Tenant is not then in
default. Tenant shall be responsible for all costs related to improvements or modifications
to the Demised Premises required or necessary to comply with The Americans With Disabilities
Act of 1990 (ADA), or similar statutes or law.

POSSESSION

	9.	 	Except as hereinafter provided, Landlord shall deliver possession of the Demised Premises to
Tenant in the condition required by this Lease on or before the Commencement Date, but
delivery of possession prior to or later than such Commencement Date shall not affect the
expiration date of this Lease. Landlord shall not be liable in any respect for any failure to
deliver possession of the Demised Premises to Tenant on or before the Commencement Date. The
rentals herein reserved shall commence on the date when possession of the Demised Premises is
delivered by Landlord to Tenant. Any occupancy by Tenant prior to the beginning of the term
shall in all respects be the same as that of a Tenant under this Lease. Landlord shall have
no responsibility or liability for loss or damage to fixtures, facilities or equipment
installed or left on the Demised Premises.

 

 

SECURITY AND DAMAGE DEPOSIT

	10.	 	Tenant contemporaneously with the execution of this Lease, has deposited with Landlord the
sum of One Thousand Three Hundred Fifty and no/100 Dollars ($1,350.00), receipt of which is
acknowledged hereby by Landlord, which deposit is to be held by Landlord, without liability
for interest, as a security and damage deposit for the faithful payment and performance by
Tenant of all of its obligations hereunder, during the term hereof and any extension hereof.
Landlord may co-mingle such deposit with Landlord’s own funds and to use such security deposit
for such purpose as Landlord may determine. In the event of the failure of Tenant to keep and
perform any of the terms, covenants and conditions of this Lease to be kept and performed by
Tenant during the term hereof and any extension hereof, and without limiting any other remedy
available to Landlord, then Landlord either with or without terminating this Lease, may (but
shall not be required to) apply such portion of said deposit as may be necessary to compensate
or repay Landlord for all losses or damages sustained or to be sustained by Landlord due to
such breach on the part of Tenant, including, but not limited to overdue and unpaid rent, any
other sum payable by Tenant to Landlord pursuant to the provisions of this Lease, damages or
deficiencies in any reletting of the Demised Premises, and reasonable attorney’s fees incurred
by Landlord. Should the entire deposit or any portion thereof, be appropriated and applied by
Landlord, in accordance with the provisions of this paragraph, Tenant upon written demand by
Landlord, shall remit forthwith to Landlord a sufficient amount of cash to restore said
security deposit to the original sum deposited, and Tenant’s failure to do so within five (5)
days after receipt of such demand shall constitute a breach of this Lease. Said security
deposit shall be returned to Tenant, less any amounts retained by Landlord pursuant to the
provisions of this paragraph, at the end of the term of this Lease or any renewal thereof, or
upon the earlier termination of this Lease. Tenant shall have no right to anticipate return
of said deposit by withholding any amount required to be paid pursuant to the provisions of
this Lease or otherwise.
	 
	 	 	In the event Landlord shall sell the Property, or shall otherwise convey or dispose of its
interest in this Lease, Landlord may assign said security deposit or any balance thereof to
Landlord’s assignee, whereupon Landlord shall be released from all liability for the return
or repayment of such security deposit and Tenant shall look solely to the said assignee for
the return and repayment of said security deposit. Said security deposit shall not be
assigned or encumbered by Tenant without the written consent of Landlord, and any assignment
or encumbrance without such consent shall not bind Landlord. In the event of any rightful
and permitted assignment of this Lease by Tenant, said security deposit shall be deemed to
be held by Landlord as a deposit made by the assignee, and Landlord shall have no further
liability with respect to the return of said security deposit to the Tenant.

USE

	11.	 	The Demised Premises shall be used and occupied by Tenant solely for the purposes of
warehouse storage of materials so long as such use is in compliance with all applicable laws,
ordinances and governmental regulations affecting the Building and Demised Premises. The
Demised Premises shall not be used in such manner that, in accordance with any requirement of
law or of any public authority, Landlord shall be obligated, as a

 

 

	 	 	result of the purpose or manner of said use, to make any addition or alteration to or in the
Building. The Demised Premises shall not be used in any manner which will increase the
rates required to be paid for public liability or for fire and extended coverage insurance
covering the Demised Premises. Tenant shall occupy the Demised Premises, conduct its
business and control its agents, employees, invitees and visitors in such a way as is lawful
and reputable, and will not permit or create any nuisance, noise, odor, or otherwise
interfere with, annoy or disturb any other tenant in the Building in its normal business
operations or Landlord in its management of the Building. Tenant’s use of the Demised
Premises shall conform to all the Landlord’s rules and regulations relating to the use of
the Demised Premises. Outside storage on the Demised Premises of any type of equipment,
property or materials owned or used by Tenant or its customers or suppliers shall not be
permitted.

ACCESS TO DEMISED PREMISES

	1.	 	The Tenant agrees to permit the Landlord and the authorized representatives of the Landlord
to enter the Demised Premises at all times during usual business hours for the purpose of
inspecting the same and making any necessary repairs to the Demised Premises and performing
any work therein that may be necessary to comply with any laws, ordinances, rules, regulations
or requirements of any public authority or of the Board of Fire Underwriters or any similar
body or that the Landlord may deem necessary to prevent waste or deterioration in connection
with the Demised Premises. Nothing herein shall imply any duty upon the part of the Landlord
to do any such work which, under any provision of this Lease, the Tenant may be required to
perform and the performance thereof by the Landlord shall not constitute a waiver of the
Tenant’s default in failing to perform the same. The Landlord may, during the progress of any
work in the Demised Premises, keep and store upon the Demised Premises all necessary
materials, tools and equipment. The Landlord shall not in any event be liable for
inconvenience, annoyance, disturbance, loss of business, or other damage of the Tenant by
reason of making repairs or the performance of any work in the Demised Premises, or on account
of bringing materials, supplies and equipment into or through the Demised Premises during the
course thereof and the obligations of the Tenant under this Lease shall not thereby be
affected in any manner whatsoever.
	 
	 	 	Landlord reserves the right to enter upon the Demised Premises at any time in the event of
an emergency and at reasonable hours to exhibit the Demised Premises to prospective
purchasers or others; and to exhibit the Demised Premises to prospective Tenants and to the
display “For Lease” or similar signs on windows or doors in the Demised Premises during the
last 180 days of the term of this Lease, all without hindrance or molestation by Tenant.

EMINENT DOMAIN

	1.	 	In the event of any eminent domain or condemnation proceeding or private sale in lieu thereof
in respect to the Building during the term hereof, the following provisions shall apply:

 

 

	 	a.	 	If the whole of the Building shall be acquired or condemned by eminent domain
for any public or quasi-public use or purpose, then the term of this Lease shall cease
and terminate as of the date possession shall be taken in such proceeding and all
rentals shall be paid up to that date.
	 
	 	b.	 	If any part constituting less than the whole of the Building shall be acquired
or condemned as aforesaid, and in the event that such partial taking or condemnation
shall materially affect the Demised Premises so as to render the Demised Premises
unsuitable for the business of the Tenant, in the reasonable opinion of Landlord, then
the term of this Lease shall cease and terminate as of the date possession shall be
taken by the condemning authority and rent shall be paid to the date of such
termination.
	 
	 	 	 	In the event of a partial taking or condemnation of the Building which shall not
materially affect the Demised Premises so as to render the Demised Premises
unsuitable for the business of the Tenant, in the reasonable opinion of the
Landlord, this Lease shall continue in full force and effect but with a
proportionate reduction of the Base Rent and Additional Rent based on the portion of
the Building taken. Landlord reserves the right, at its option, to restore the
Building and the Demised Premises to substantially the same condition as they were
prior to such condemnation. In such event, Landlord shall give written notice to
Tenant, within thirty (30) days following the date possession shall be taken by the
condemning authority, of Landlord’s intention to restore. Upon Landlord’s notice of
election to restore, Landlord shall commence restoration and shall restore the
Building and the Demised Premises with reasonable promptness, subject to delays
beyond Landlord’s control and delays in the receipt of condemnation or sale proceeds
by Landlord; and Tenant shall have no right to terminate this Lease except as herein
provided. Upon completion of such restoration, the rent shall be re-adjusted based
upon the portion, if any, of the Building restored.
	 
	 	c.	 	In the event of any condemnation or taking as aforesaid, whether whole or
partial, the Tenant shall not be entitled to any part of the award paid for such
condemnation and Landlord is to receive the full amount of such award, the Tenant
hereby expressly waiving any right to claim to any part thereof.
	 
	 	d.	 	Although all damages in the event of any condemnation shall belong to the
Landlord whether such damages are awarded as compensation for diminution in value of
the leasehold or to the fee of the Demised Premises, Tenant shall have the right to
claim and recover from the condemning authority, but not from Landlord, such
compensation as may be separately awarded or recoverable by Tenant in Tenant’s own
right on account of any and all damage to Tenant’s business by reason of the
condemnation and for or on account of any cost or loss to which Tenant might be put in
removing Tenant’s merchandise, furniture, fixtures, leasehold improvements and
equipment. However, Tenant shall have no claim against Landlord and shall make no
claim with the condemning authority

 

 

	 	 	 	for the loss of its leasehold estate, any unexpired term or loss of any possible
renewal or extension of said lease or loss of any possible value of said Lease.

DAMAGE OR DESTRUCTION

	1.	 	In the event of any damage or destruction to the Demised Premises by fire or other cause
during the term hereof, the following provisions shall apply:

	 	a.	 	If the Building is damaged by fire or any other cause to such extent that the
cost of restoration, as reasonably estimated by Landlord, will equal or exceed thirty
percent (30%) of the replacement value of the Building (exclusive of foundations) just
prior to the occurrence of the damage, then Landlord may, no later than the sixtieth
(60th) day following the damage, give Tenant written notice of Landlord’s election to
terminate this Lease.
	 
	 	b.	 	If the cost of restoration as estimated by Landlord will equal or exceed fifty
percent (50%) of said replacement value of the Building and if the Demised Premises are
not suitable as a result of said damage for the purposes for which they are demised
hereunder, in the reasonable opinion of Landlord and Tenant, then Tenant may, no later
than the sixtieth (60th) day following the damage, give Landlord a written notice of
election to terminate this Lease.
	 
	 	c.	 	If the cost of restoration as estimated by Landlord shall amount to less than
thirty percent (30%) of said replacement value of the Building, or if, despite the
cost, Landlord does not elect to terminate this Lease, Landlord shall restore the
Building and the Demised Premises with reasonable promptness, subject to delays beyond
Landlord’s control and delays in the receipt of insurance proceeds by Landlord; and
Landlord shall not be responsible for restoring or repairing leasehold improvements of
the Tenant.
	 
	 	d.	 	In the event either of the elections to terminate is properly exercised, this
Lease shall be deemed to terminate on the date of the receipt of the notice of election
and all rents shall be paid up to that date. Tenant shall have no claim against
Landlord for the value of any unexpired term of this Lease.
	 
	 	e.	 	In any case where damage to the Building shall materially affect the Demised
Premises so as to render them unsuitable in whole or in part for the purposes for which
they are demised hereunder, then, unless such destruction was wholly or partially
caused by the negligence or breach of the terms of this Lease by Tenant, its employees,
agents or representatives, a portion of the rent based upon the extent to which the
Demised Premises are rendered unsuitable shall be abated until repaired or restored.
If the destruction or damage was wholly or partially caused by negligence or breach of
the terms of this Lease by Tenant as aforesaid

 

 

	 	 	 	and if Landlord shall elect to rebuild, the rent shall not abate and the Tenant
shall remain liable for the same.

CASUALTY INSURANCE

	1	a.	 	Landlord shall at all times during the term of this Lease, at its expense (except
that such expense shall be included in the calculation of Additional Rent under Section 3
hereof), maintain a policy or policies of insurance issued by an insurance company licensed to
do business in the State of Minnesota insuring the Building using the standard Minnesota
Special Cause of Loss Form or equivalent for the full replacement value, provided that
Landlord shall not be obligated to insure any furniture, equipment, machinery, goods or
supplies which Tenant may bring upon the Demised Premises or any tenant improvements which
Tenant or Landlord may construct or install on the Demised Premises, prior to or after the
date of this Lease. Landlord may at its option also elect to carry rent loss insurance or
other types of insurance commonly carried by owners of similar properties in the
Minneapolis-St. Paul Metropolitan Area, and the Tenant’s pro rata share of the cost thereof
shall constitute Additional Rent.

	 	b.	 	Tenant shall not carry any stock of goods or do anything in or about the
Demised Premises which will in any way impair or invalidate the obligation of the
insurer under any policy of insurance required by this Lease.
	 
	 	c.	 	Provided Landlord’s insurance carrier consents, Landlord hereby waives and
releases all claims, liability and causes of action against Tenant and its agents,
servants and employees for loss or damage to, or destruction of, the Demised Premises
or any portion thereof, including the buildings and other improvements situated
thereon, resulting from fire, explosion and other perils, to the extent such loss or
damage is covered by standard extended coverage insurance, whether caused by the
negligence of any of said persons or otherwise. Likewise, Tenant hereby waives and
releases all claims, liabilities and causes of action against Landlord and its agents,
servants and employees for loss or damage to, or destruction of, any of the
improvements, fixtures, equipment, supplies, merchandise and other property, whether
that of Tenant or of others in, upon or about the Demised Premises resulting from fire,
explosion or the other perils included in standard extended coverage insurance, whether
caused by the negligence of any of said persons or otherwise. The waiver by Tenant
contained in this Section 14.2 shall remain in force whether or not the Tenant’s
insurer shall consent thereto.
	 
	 	d.	 	In the event that the use of the Demised Premises by Tenant increases the
premium rate for insurance carried by Landlord on the improvements of which the Demised
Premises are a part, Tenant shall pay Landlord, upon demand, the amount of such premium
increase. If Tenant installs any electrical equipment that overloads the power lines
to the Building or its wiring, Tenant shall, at its own expense, make whatever changes
are necessary to comply with the requirements

 

 

	 	 	 	of the insurance underwriter, insurance rating bureau and governmental authorities
having jurisdiction.

	 	e.	 	Tenant shall during the term of this Lease, obtain and maintain in full force
and effect at its sole cost and expense a policy or policies of insurance insuring all
of its personal property located within the Demised Premises from time to time, as well
as all tenant improvements made thereto, against loss or damage by fire, explosion or
other such hazards and contingencies for the full replacement value thereof. Such
policy or policies shall provide that thirty (30) days written notice must be given to
Landlord prior to cancellation or modification thereof. Tenant shall furnish evidence
satisfactory to Landlord at the time this Lease is executed and thereafter from time to
time upon request by Landlord that such coverage is in full force and effect.

PUBLIC LIABILITY INSURANCE

	1.	 	Tenant shall during the term hereof, keep in full force and effect at its expense a policy or
policies of public liability insurance with respect to the Demised Premises and the business
of Tenant in amounts not less than $1,000,000 per occurrence, $2,000,000 aggregate using
current ISO General Liability forms or equivalent naming the Landlord as an additional
insured. Such policy or policies shall provide that thirty (30) days written notice must be
given to Landlord prior to cancellation or modification thereof. Tenant shall furnish
evidence satisfactory to Landlord at the time this Lease is executed and thereafter upon
request by Landlord that such coverage is in full force and effect.

DEFAULT OF TENANT

	17	a.	 	In the event of any failure of Tenant to pay any Base Rent, Additional Rent or
other amounts due hereunder within five (5) days after the same shall be due, or any failure
to perform any other of the terms, conditions or covenants of this Lease to be observed or
performed by Tenant with all reasonable diligence, but in any event for more than thirty (30)
days after written notice of such failure shall have been given to Tenant, or if Tenant or an
agent of Tenant shall falsify any report required to be furnished to Landlord pursuant to the
terms of this Lease, or if Tenant or any guarantor of this Lease shall become bankrupt or
insolvent, or file any debtor proceedings, or any person shall file against Tenant or any
guarantor of this Lease in any court pursuant to any statute either of the United States or of
any state a petition in bankruptcy or insolvency or for reorganization or for the appointment
of a receiver or trustee of all or a portion of Tenant’s or any such guarantor’s property, or
if Tenant or any such guarantor makes an assignment for the benefit of creditors, or petitions
for or enters into any similar arrangement, or if any guarantor of this Lease shall be in
default in the performance of any covenant, duty or obligation under any guaranty or other
agreement entered into with or in favor of Landlord and such default shall remain uncured for
a period of thirty (30) days or more after notice of such default, or if Tenant shall abandon
or vacate the Demised Premises or suffer this Lease to be taken under any writ of execution
(any one or more of the foregoing shall

 

 

	 	 	 	constitute an “Event of Default”), then in any such event Tenant shall be in default
hereunder, and Landlord, in addition to any other rights and remedies it may have,
shall have the immediate right of re-entry and may remove all persons and property
from the Demised Premises and such property may be removed and stored in a public
warehouse or elsewhere at the sole cost of, and for the account of Tenant, all
without service of notice or resort to legal process and without being guilty of
trespass, or becoming liable for any loss or damage which may be occasioned thereby.

	 	b.	 	Upon the occurrence of an Event of Default, Landlord shall have the right (in
addition to any other rights or remedies) to either terminate this Lease or, from time
to time, without terminating this Lease, to terminate Tenant’s right of possession of
the Demised Premises. If Landlord terminates Tenant’s right of possession only,
Landlord may, but shall in no event be obligated to, make such alterations and repairs
as may be necessary in order to relet the Demised Premises, and relet the Demised
Premises or any part thereof upon such term or terms (which may be for a term extending
beyond the term of this lease) and at such rental or rentals and upon such other terms
and conditions as Landlord in its sole discretion may deem advisable. Upon any such
reletting all rentals received by the Landlord from such reletting shall be applied
first to the payment of any indebtedness other than rent due hereunder from Tenant to
Landlord; second, to the payment of any costs and expenses of such reletting, including
brokerage fees and attorney’s fees and costs of such alterations and repairs; third, to
the payment of the rent due and unpaid payment of future rent as the same may become
due and payable hereunder. If such rentals received from any such reletting during any
month are less than that to be paid during that month by Tenant hereunder, Tenant, upon
demand, shall pay any such deficiency to Landlord. No such re-entry or taking
possession of the Demised Premises by Landlord shall be construed as an election on its
part to terminate this Lease unless a written notice of such intention is given to
Tenant. Notwithstanding any such reletting without termination, Landlord may at any
time after such re-entry and reletting elect to terminate this Lease, and in addition
to any other remedies it may have, it may recover from any Tenant all damages it may
incur by reason of such breach, including the cost of recovering the Demised Premises,
reasonable attorney’s fees, and including the worth at the time of such termination of
the excess, if any, of the amount of rent and charges equivalent to rent reserved in
this Lease for the remainder of the stated term over the then reasonable rental value
of the Demised Premises for the remainder of the stated term, all of which amounts
shall be immediately due and payable from Tenant to Landlord.
	 
	 	c.	 	Landlord may, at its option, in addition to any other rights or remedies
available to it in this Lease or otherwise by law, statute or equity, spend such money
as is necessary to cure any default of Tenant herein and the amount so spent, and costs
incurred, including attorney’s fees in curing such default, shall be paid by Tenant, as
additional rent, upon demand.

 

 

	d.	 	In the event suit shall be brought for recovery of possession of the Demised
Premises, for the recovery of rent or any other amount due under the provisions of this
Lease, or in connection with any Event of Default, and an Event of Default shall be
established, Tenant shall pay to Landlord all expenses incurred in connection
therewith, including attorney’s fees, together with interest on all such expenses at
the Default Rate from the date of such breach.
	 
	e.	 	Tenant hereby expressly waives any and all rights of redemption granted by or
under any present or future laws in the event of Tenant being evicted or dispossessed
for any cause, or in the event of Landlord obtaining possession of the Demised
Premises, by reason of any Event of Default hereunder, or otherwise. Tenant also
waives any demand for possession of the Demised Premises, and any demand for payment of
rent and any notice of intent to re-enter the Demised Premises, or of intent to
terminate this Lease, other than the notices above provided in this Article, and waives
any and every other notice or demand prescribed by any applicable statutes or laws.
	 
	f.	 	No remedy herein or elsewhere in this Lease or otherwise by law, statute or
equity, conferred upon or reserved to Landlord shall be exclusive of any other remedy,
but shall be cumulative, and may be exercised from time to time and as often as the
occasion may arise.

HOLD HARMLESS

	18.	 	Except to the extent any liability for damage or loss is caused by the gross negligence of
Landlord, its agents or employees, Tenant shall hold harmless Landlord, its shareholders,
directors, officers, agents and employees, from any liability for damages to any person or
property in or upon the Demised Premises and the Demised Premises, including the person and
the property of Tenant and its employees and all persons in the Building at its or their
invitation or sufferance, and from all damages resulting from Tenant’s failure to perform the
covenants or other provisions of this Lease. All property kept, maintained or stored on the
Demised Premises shall be so kept, maintained or stored at the sole risk of Tenant. Tenant
agrees to pay all sums of money in respect of any labor, service, materials, supplies or
equipment furnished or alleged to have been furnished to Tenant in or about the Demised
Premises, and not furnished on order of Landlord, which may be secured by any mechanic’s
materialmen’s or other lien provided that Tenant may contest such lien, upon providing
Landlord adequate security against such lien. If any such lien is reduced to final judgment
and if such judgment or process thereon is not stayed, or if stayed and said stay expires,
then Tenant shall immediately pay and discharge said judgment. Landlord shall have the right
to post and maintain on the Demised Premises, notices of non-responsibility under the laws of
the State of Minnesota.

NON-LIABILITY

	19.	 	Landlord shall not be liable for damage to any property of Tenant or of others located on the
Demised Premises, nor for the loss of or damage to any property of Tenant or of

 

 

		 	others by
theft or otherwise. Without limiting the foregoing, Landlord shall not be liable for any
injury or damage to persons or property resulting from fire, explosion, any injury or damage
to persons or property resulting from fire, explosion, falling plaster, steam, gas,
electricity, water, rain or snow or leaks from any part of the Demised Premises or from the
pipes, appliances, or plumbing works or from the roof, street or subsurface or from any other
place or by dampness or by any such damage caused by other Tenants or persons in the Demised
Premises, occupants of adjacent property, of the buildings, or the public or caused by
operations in construction of any private, public or quasi-public work. Landlord shall not be
liable for any latent defect in the Demised Premises. All property of Tenant kept or stored
on the Demised Premises shall be so kept or stored at the risk of Tenant only and Tenant shall
hold Landlord harmless from any claims arising out of damage to or loss of the same, including
subrogation claims by Tenant’s insurance carrier.

SUBORDINATION

	 	 	 	 	 
	20

	 	a.
	 	This Lease shall be subordinated to any mortgages that may now exist or that may
hereafter be placed upon the Demised Premises and to any and all advances made thereunder, and
to all interest and other charges relating to the indebtedness evidenced by such mortgages,
and to all renewals, replacements and extensions thereof. In the event of execution by
Landlord after the date of this Lease of any such mortgage, renewal, replacement or extension,
Tenant agrees to execute a subordination agreement and/or any other documents relating to this
Section 19 with the holder thereof, which agreement shall provide, among other things, that:

	 	b.	 	Such holder shall not disturb the possession and other rights of Tenant under
this Lease so long as Tenant is not in default hereunder,
	 
	 	c.	 	In the event of acquisition of title to the Demised Premises by such holder,
such holder shall accept the Tenant as Tenant of the Demised Premises under the terms
and conditions of this Lease and shall perform all the obligations of Landlord
hereunder, and
	 
	 	d.	 	The Tenant shall recognize such holder as Landlord hereunder.
	 
	 	e.	 	Tenant shall, upon receipt of a request from Landlord therefor, execute and
deliver to Landlord or to any proposed holder of a mortgage or trust deed or to any
proposed purchaser of the Demised Premises, a certificate in recordable form,
certifying that this Lease is in full force and effect, and that there are no offsets
against rent nor defenses to Tenant’s performance under this Lease, or setting forth
any such offsets or defenses claimed by Tenant as the case may be. Tenant shall
execute and deliver any such subordination agreement or other such documents within ten
(10) days of written request therefor. The failure of Tenant to do so within such time
frame shall constitute an immediate default hereunder without the need for Landlord to
provide any notice and/or opportunity to cure as 

 

 

	 	 	 	set forth in Section 16 hereof.
Tenant hereby irrevocably appoints Landlord its attorney in fact to execute any such
subordination agreement or other such document in the name of Tenant upon the failure
of Tenant to perform its obligations under this Section 19 as required hereunder.

ASSIGNMENT OR SUBLETTING

	21.	 	Tenant agrees to use and occupy the Demised Premises throughout the entire term hereof for
the purpose or purposes herein specified and for no other purposes, in the manner and to
substantially the extent now intended, and not to transfer or assign this Lease or sublet said
Demised Premises, or any part thereof, whether by voluntary act, operation of law, or
otherwise, without obtaining the prior written consent of Landlord in each instance. Tenant
shall seek such consent of Landlord by a written request therefor, setting forth such
information as Landlord may deem necessary. Consent by Landlord to any assignment of this
Lease or to any subletting of the Demised Premises shall be at Landlord’s sole discretion and
shall not be a waiver of Landlord’s rights under this Article as to any subsequent assignment
or subletting. Landlord’s rights to assign this Lease are and shall remain unqualified. No
such assignment or subleasing shall relieve the Tenant from any of Tenant’s obligations in
this Lease contained, nor shall any assignment or sublease or other transfer of this Lease be
effective unless the assignee, subtenant or transferee shall at the time of such assignment,
sublease or transfer, assume in writing for the benefit of Landlord, its successors and
assigns, all of the terms, covenants and conditions of this Lease thereafter to be performed
by Tenant and shall agree in writing to be bound thereby. Should Tenant sublease in
accordance with the terms of this Lease, any increase in rental received by Tenant over the
per square foot rental rate which is being paid by Tenant shall be forwarded to and retained
by Landlord, which increase shall be in addition to the Base Rent and Additional Rent due
Landlord under this Lease.

ATTORNMENT

	22.	 	In the event of a sale or assignment of Landlord’s interest in the Demised Premises or in the
Building in which the Demised Premises are located, or this Lease, or if the Demised Premises
come into custody or possession of a mortgagee or any other party whether because of a
mortgage foreclosure, or otherwise, Tenant shall attorn to such assignee or other party and
recognize such party as Landlord hereunder; provided, however, Tenant’s peaceable possession
will not be disturbed so long as Tenant faithfully performs its obligations under this Lease.
Tenant shall execute, on demand, any attornment agreement required by any such party to be
executed, containing such provisions as such party may require.

NOVATION IN THE EVENT OF SALE

	 	 	 	 	 
	23

	 	a.
	 	In the event of the sale of the Building, Landlord shall be and hereby is relieved
of all of the covenants and obligations created hereby accruing from and after the date of
sale, and such sale shall result automatically in the purchaser assuming and agreeing to carry
out all the covenants and obligations of Landlord herein.

 

 

	 	b.	 	The Tenant agrees at any time and from time to time upon not less than ten (10)
days prior written request by the Landlord to execute, acknowledge and deliver to the
Landlord a statement in writing certifying that this Lease is unmodified and in full
force and effect (as modified and stating the modifications, if any) and the dates to
which the base rent and other charges have been paid in advance, if any, it being
intended that any such statement delivered pursuant to this paragraph may be relied
upon by any prospective purchaser of the fee or mortgagee or assignee of any mortgage
upon the fee of the Demised Premises.

SUCCESSORS AND ASSIGNS

	24.	 	The terms, covenants and conditions hereof shall be binding upon and inure to the successors
and permitted assigns of the parties hereto.

REMOVAL OF FIXTURES

	25.	 	Notwithstanding anything contained in Article 7, 28 or elsewhere in this Lease, if Landlord
requests then Tenant will promptly remove at the sole cost and expense of Tenant all fixtures,
equipment and alterations made by Tenant, at the time Tenant vacates the Demised Premises, and
Tenant will promptly restore said Demised Premises to the condition that existed immediately
prior to said fixtures, equipment and alterations having been made, all at the sole cost and
expense of Tenant.

QUIET ENJOYMENT

	26.	 	Landlord warrants that it has full right to execute and to perform this Lease and to grant
the estate demised, and that Tenant, upon payment of the rents and other amounts due and the
performance of all the terms, conditions, covenants and agreements on Tenant’s part to be
observed and performed under this Lease, may peaceably and quietly enjoy the Demised Premises
for the business uses permitted hereunder, subject, nevertheless, to the terms and conditions
of this Lease.

RECORDING

	27.	 	Tenant shall not record this Lease or any memorandum hereof without the written consent of
Landlord. However, upon the request of either party hereto, the other party shall join in the
execution of a Memorandum lease for the purposes of recordation. Said Memorandum lease shall
describe the parties, the Demised Premises and the term of the Lease and shall incorporate
this Lease by reference, but shall not set forth the amount of the Base Rent, Additional Rent
or other amounts due hereunder. This Article 26 shall not be construed to limit Landlord’s
right to file this Lease under Article 21 of this Lease.

OVERDUE PAYMENTS

 

 

	28.	 	All monies due under this Lease from Tenant to Landlord shall be due on demand, unless
otherwise specified and if not paid when due, shall result in the imposition of a service
charge for such late payment in the amount of ten percent (10%) of the amount due.

SURRENDER

	29.	 	On the Expiration Date or upon the termination hereof on a day other than the Expiration
Date, Tenant shall peaceably surrender the Demised Premises broom-clean in good order,
condition and repair, reasonable wear and tear only excepted. On or before the Expiration
Date or upon termination of this Lease on a day other than the Expiration Date, Tenant shall,
at its expense, remove all trade fixtures, personal property, equipment and signs, together
with any fixtures, alterations or improvements required by Landlord to be removed pursuant to
Section 24 hereof, from the Demised Premises and any property not removed shall be deemed to
have been abandoned. Any damage caused in the removal of such items shall be repaired by
Tenant and at its expense. All alterations, additions, improvements and fixtures (other than
trade fixtures) which shall have been made or installed by Landlord or Tenant upon the Demised
Premises and all floor covering so installed shall remain upon and be surrendered with the
Demised Premises as a part thereof, without disturbance, molestation or injury, and without
charge, at the expiration of termination of this Lease, except any such items identified under
Section 24 hereof. If the Demised Premises are not surrendered on the Expiration Date or the
date of termination, Tenant shall indemnify Landlord against loss or liability arising out of
or relating to any claims resulting from such failure, including without limitation, any
claims made by any succeeding Tenant founded on such delay. Tenant shall promptly surrender
all keys for the Demised Premises to Landlord at the place then fixed for payment of rent and
shall inform Landlord of combinations of any locks and safes on the Demised Premises.

HOLDING OVER

	30.	 	In the event of a holding over by Tenant after expiration or termination of this Lease
without the consent in writing of Landlord, Tenant shall be deemed a Tenant at sufferance and
shall pay rent for such occupancy at the rate of twice the last-current aggregate Base Rent
and Additional Rent, prorated for the entire holdover period, plus all attorney’s fees and
expenses incurred by Landlord in enforcing its rights hereunder, plus any other damages
occasioned by such holding over.

ABANDONMENT

	31.	 	In the event Tenant shall remove its fixtures, equipment or machinery or shall vacate the
Demised Premises or any part thereof prior to the Expiration Date of this Lease, or shall
discontinue or suspend the operation of its business conducted on the Demised Premises for a
period of more than thirty (30) consecutive days (except during any time when the Demised
Premises may be rendered untenantable by reason of fire or other casualty), then in any such
event Tenant shall be deemed to have abandoned the Demised Premises and such abandonment shall
constitute an Event of Default under the terms of this Lease.

 

 

CONSENTS BY LANDLORD

	32.	 	Whenever provision is made under this Lease for Tenant securing the consent or approval by
Landlord, such consent or approval shall only be valid if it is made in writing.

NOTICES

	33.	 	Any notice required or permitted under this Lease shall be deemed sufficiently given or
secured if sent by registered or certified return receipt mail to Tenant at 14793 Martin
Drive, Eden Prairie, Minnesota 55344, and to Landlord at the address then fixed for the
payment of rent as provided in Article 4 of this Lease, and either party may by like written
notice at any time designate a different address to which notices shall subsequently be sent.

RULES AND REGULATIONS

	34.	 	Tenant shall observe and comply with such rules and regulations as Landlord may from time to
time prescribe, on written notice to Tenant, for the safety, care, cleanliness and operation
of the Building.

INTENT OF PARTIES

	35.	 	Except as otherwise provided herein, the Tenant covenants and agrees that if it shall at any
time fail to pay any cost or expense required to be paid by Tenant hereunder, or fail to take
out, pay for, maintain or deliver any of the insurance policies above required, or fail to
make any other payment or perform any other act on its part to be made or performed as in this
Lease provided, then the Landlord may, but shall not be obligated so to do, and without notice
to or demand upon the Tenant and without waiving or releasing the Tenant from any obligations
of the Tenant in this Lease contained, pay any such cost or expense, effect any such insurance
coverage and pay premiums therefor, and may make any other payment or perform any other act on
the part of the Tenant to be made and performed as in this Lease provided, in such manner and
to such extent as the Landlord may deem desirable, and in exercising any such right, to also
pay all necessary and incidental costs and expenses, employ counsel and incur and pay
reasonable attorneys’ fees. All sums so paid by Landlord and all necessary and incidental
costs and expenses in connection with the performance of any such act by the Landlord,
together with interest thereon at the rate of ten percent (10%) per annum from the date of
making of such expenditure, by Landlord, shall be deemed additional rent hereunder, and shall
be payable to Landlord on demand. Tenant covenants to pay any such sum or sums with interest
as aforesaid and the Landlord shall have the same rights and remedies in the event of the
nonpayment thereof by Tenant as in the case of default by Tenant in the payment of the Base
Rent payable under this Lease.

 

 

LANDLORD DEFAULT

	 	 	 	 	 
	36.

	 	a.
	 	Any of the following occurrence, conditions or acts by Landlord shall constitute a
“Landlord Default”: (a) Landlord’s failure to make any payments of money due Tenant hereunder
within ten (10) days after the receipt of written notice from Tenant that same is overdue; or
(b) Landlord’s failure to perform any nonmonetary obligation of Landlord hereunder within
thirty (30) days after receipt of written notice from Tenant to Landlord specifying such
default and demanding that the same be cured; provided that, if such default cannot with due
diligence be wholly cured within such thirty (30) days, Landlord shall have such longer period
as may be reasonably necessary to cure the default, so long as Landlord proceeds promptly to
commence the cure of same within such thirty (30) day period and diligently prosecutes the
cure to complete.

	 	b.	 	Upon the occurrence of a Landlord Default, at Tenant’s option, in addition to
any other remedies which it may have, and without its actions being deemed a cure of
Landlord’s default, Tenant may (i) pay or perform such obligations and offset Tenant’s
reasonable and actual cost of performance, plus interest at the Default Rate, against
the Base Rent unless, by written notice to Tenant, Landlord contests whether a Landlord
Default has occurred or is continuing, in which case such right of offset shall only be
effective if final, non-appealable judgment against Landlord shall have been entered by
a court of competent jurisdiction; or (ii) sue for damages.

GENERAL

	 	 	 	 	 
	37.

	 	a.
	 	The Lease does not create the relationship of principal agent or of partnership or
of joint venture or of any association between Landlord and Tenant, the sole relationship
between the parties hereto being that of Landlord and Tenant.

	 	b.	 	No waiver of any default of Tenant hereunder shall be implied from any omission
by Landlord to take any action on account of such default if such default persists or
is repeated, and no express waiver shall affect any default other than the default
specified in the express waiver and that only for the time and to the extent therein
stated. One or more waivers by Landlord shall not then be construed as a waiver of a
subsequent breach of the same covenant, term or condition. The consent to or approval
by Landlord of any act by Tenant requiring Landlord’s consent or approval shall not
waive or render unnecessary Landlord’s consent to or approval of any subsequent similar
act by Tenant shall be construed to be both a covenant and a condition. No action
required or permitted to be taken by or on behalf of Landlord under the terms or
provisions of this Lease shall be deemed to constitute an eviction or disturbance of
Tenant’s possession of the Demised Premises. All preliminary negotiations are merged
into and incorporated in this Lease. The laws of the State of Minnesota shall govern
the validity, performance and enforcement of this Lease.

 

 

	 	c.	 	This Lease and the exhibits, if any, attached hereto and forming a part hereof,
constitute the entire agreement between Landlord and Tenant affecting the Demised
Premises and there are no other agreements, subsequent alteration, amendment, change or
addition to this Lease shall be binding upon Landlord or Tenant unless reduced to
writing and executed in the same form and manner in which this Lease is executed.
	 
	 	d.	 	If any agreement, covenant or condition 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 agreement,
covenant or condition to persons or circumstances other than those as to which it is
held invalid or unenforceable, shall not be affected thereby and each agreement,
covenant or condition of this Lease shall be valid and be enforced to the fullest
extent permitted by law.
	 
	 	e.	 	If any person or entity extending credit to Landlord in connection with the
Building requires a change in this Lease which does not materially decrease, diminish
or restrict any of Tenant’s rights hereunder, Tenant agrees, at the request of
Landlord, to promptly execute and deliver to Landlord an amendment to this Lease
incorporating such required changes; provided, however, that Tenant shall not be
required to agree to any such changes which would change the financial obligations of
Tenant hereunder, the location or size of the Demised Premises, the term of this Lease
or which would otherwise materially decrease, diminish or restrict any of Tenant’s
rights hereunder.
	 
	 	f.	 	The submission of this Lease for examination does not constitute a reservation
of or option for the Demised Premises, and this Agreement of Lease shall become
effective as a Lease only upon execution and delivery thereof by Landlord and Tenant.

HAZARDOUS MATERIAL

	 	 	 	 	 
	38.

	 	a.
	 	The Demised Premises hereby leased shall be used by and/or at the sufferance of
Tenant only for the purpose set forth in Article 11 above and for no other purposes. Tenant
shall not use or permit the use of the Demised Premises in any manner that will tend to create
waste or a nuisance, or will tend to unreasonably disturb other tenants in the Building or the
Demised Premises. Tenant, its employees and all person visiting or doing business with Tenant
in the Demised Premises shall be bound by and shall observe the reasonable rules and
regulations made by Landlord relating to the Demised Premises, the Building or the Demised
Premises of which notice in writing shall be given to the Tenant, and all such rules and
regulations shall be deemed to be incorporated into and form a part of this Lease.

 

 

	 	b.	 	Tenant covenants through the Lease Term, at Tenant’s sole cost and expense,
promptly to comply with all laws and ordinances and the orders, rules and regulations
and requirements of all federal, state and municipal governments and appropriate
departments, commission, boards, and officers thereof, and the orders, rules and
regulations of the Board of Fire Underwriters where the Demised Premises are situated,
or any other body now or hereafter as well as extraordinary, and whether or not the
same require structural repairs or alterations, which may be applicable to the Demised
Premises, or the use or manner of use of the Demised Premises. Tenant will likewise
observe and comply with the requirements of all policies of public liability, fire and
all other policies of insurance at any time in force with respect to the building and
improvements on the Demised Premises and the equipment thereof.
	 
	 	c.	 	In the event any Hazardous Material (hereinafter defined) is brought or caused
to be brought into or onto the Demised Premises, the Building or the Demised Premises
by Tenant, its agents, employees, contractors or invitees, Tenant shall handle any such
material in compliance with all applicable federal, state and/or local regulations.
For purposes of this Article, “Hazardous Material” means and includes any hazardous,
toxic or dangerous waste, substance or material defined as such in (or for purposes of)
the Comprehensive Environmental Response, Compensation, and Liability Act, any
so-called “Superfund” or “Superlien” law, or any federal, state or local statute, law,
ordinance, code, rule, regulation, order decree regulating, relating to, or imposing
liability or standards of conduct concerning, any hazardous, toxic or dangerous waste,
substance or materials, as now or at any time hereafter in effect (collectively,
“Environmental Laws”). Tenant shall submit to Landlord on an annual basis copies of
its approved hazardous materials communication plan, OSHA monitoring plan, and permits
required by the Resource Recovery and Conservation Act of 1976, if Tenant is required
to prepare, file or obtain any such plans or permits. Tenant will indemnify and hold
harmless Landlord from any losses, liabilities, damages, costs or expenses (including
reasonable attorneys’ fees) which Landlord may suffer or incur as a result of Tenant’s
breach of this Article 37 or its introduction into or onto the Demised Premises,
Building or Demised Premises of any Hazardous Material. This Article shall survive the
expiration or sooner termination of this Lease.
	 
	 	d.	 	Landlord represents and warrants to Tenant that, except as otherwise disclosed
in any environmental assessment or report delivered by Landlord to Tenant, there are no
Hazardous Materials located within the Demised Premises or otherwise on or about the
Property which require removal or remediation under applicable Environmental Laws.
Landlord agrees to indemnify and hold Tenant harmless from and against any and all
claims or damages resulting from any violation or falsity of the representation set
forth above or as a result of any leak, spill, discharge, emission or other release of
Hazardous Materials on or about the Property caused by Landlord, its agents or
employees from and after the date hereof.

 

 

FORCE MAJEURE

	39.	 	Either party’s failure to perform the terms and conditions of this Lease, in whole or in
part, other than any term requiring the payment of money, shall not be deemed a breach or a
default hereunder or give rise to any liability of such party to the other if such failure is
attributable to any unforeseeable event beyond such party’s reasonable control and not caused
by the negligent acts or omissions or the willful misconduct of such party, including, without
limitation, flood, drought, earthquake, storm, pestilence, lightning, and other natural
catastrophes and acts of God; epidemic, war riot, civic disturbance or disobedience, and act
of the public enemy; fire, accident, wreck, washout, and explosion; strike, lockout, labor
dispute, and failure, threat of failure, or sabotage of such party’s facilities; delay in
transportation or car shortages, or inability to obtain necessary labor, materials,
components, equipment, services, energy, or utilities through such party’s usual and regular
sources at usual and regular prices; and any law, regulation, order or injunction of a court
or governmental authority, whether valid or invalid and including, without limitation,
embargoes, priorities, requisitions, and allocations or restrictions of facilities, equipment
or operations. In the event of the occurrence of such a force majeure event, the party unable
to perform promptly shall notify the other party.

RIGHT OF RELOCATION OF TENANT

	40.	 	The Landlord shall have the rights to relocate Tenant to alternative space within the
Building, upon not less than ninety (90) days written notice so long as such alternative space
is substantially equivalent to the Demised Premises, in terms of size, configuration and
access. Landlord and Tenant agree to cooperate in good faith in connection with any required
tenant improvements in connection with such alternative space, which shall in any event be
consistent with the level of finish of the initial tenant improvements provided by Landlord in
connection with the Demised Premises, and in connection with Tenants move to the alternative
Demised Premises. Landlord shall pay all reasonable costs associated with effecting such
move, but shall not otherwise be liable to Tenant hereunder in connection with such
relocation.

TENANT IMPROVEMENTS

	41.	 	All improvements to the Demised Premises proposed to be constructed by either Landlord Tenant
prior to the commencement date shall be constructed in accordance with the terms and
provisions set forth on the plans and specifications attached hereto and incorporated herein
as Exhibit C.

CAPTIONS

	42.	 	The captions are inserted only as a matter of convenience and for reference, and in no way
define, limit or describe the scope of this Lease nor the intent or any provision thereof.

 

 

ATTACHMENTS

	43.	 	See also rider attached hereto and made a part hereof containing Exhibits B and C, which
Exhibits are attached hereto and made a part hereof.

	 	 	 
	Exhibit	 	Description
	Exhibit B

	 	Demised Premises
	Exhibit C

	 	Improvements

 

 

SUBMISSION

	3.	 	Submission of this instrument to Tenant or proposed Tenant or its agents or attorneys for
examination, review, consideration or signature does not constitute or imply an offer to
lease, reservation of space, or option to lease, and this instrument shall have no binding
legal effect until execution hereof by both Landlord/Owner and Tenant or its agents.

COMMISSIONS

	4.	 	It is agreed and understood that Brian Netz, agent or broker with Welsh Companies, LLC is
representing Dennis P. Dirlam, Landlord, and Dan Brastad, agent or broker with Welsh
Companies, LLC, is representing Wireless Ronin, Inc., Tenant. Tenant indemnifies Landlord for
any claim made by or commission payable to any other broker or agent in connection with
Tenant’s leasing the Demised Premises.

IN WITNESS WHEREOF, the Landlord and the Tenant have caused these presents to be executed in form
and manner sufficient to bind them at law, as of the day and year first above written.

	 	 	 
	TENANT:

	 	LANDLORD:
	 
	 	 
	WIRELESS RONIN, INC.

	 	DENNIS P. DIRLAM
	 
	 	 
	By:/s/ Steve Jacobs                    

	 	By:/s/ Dennis P. Dirlam                    
	 
	 	 
	Its: EVP

	 	Its: Owner
	 
	 	 
	Date: 4/18/06

	 	Date: 4/24/06

 

 

EXHIBIT B

[DEMISED PREMISES]

 

 

EXHIBIT C

IMPROVEMENTS

Landlord will demise the premises and replace any burnt out light bulbs, at Landlord sole expense.

Any additional improvements will be the sole cost and responsibility of Tenant, and must receive
Landlord approval prior to construction.exv10w23

 

EXHIBIT 10.23

FINAL VERSION

SALE AND PURCHASE AGREEMENT

     Sale and Purchase Agreement (this “Agreement”), dated this 11th day of July, 2006,
by and between Wireless Ronin Technologies, Inc., a Minnesota corporation, with offices located at
14700 Martin Drive, Eden Prairie, MN 55344 (“WRT”), and Sealy Corporation, a Delaware corporation,
with offices located at One Office Parkway at Sealy Drive, Trinity, NC 27370 (“Sealy”).

WITNESSETH:

     WHEREAS, WRT has developed the SealyTouchTM System (the “System”), consisting of (i) all of
WRT’s programs, software, databases, media devices, user materials provided to Sealy, and all other
intellectual property needed to make the System fully operational, including, without limitation,
all revisions, updates, corrections, and improvements thereto, now and hereafter existing (the “WRT
Technology”) and (ii) a computerized touch screen or interactive display center, related hardware
and software purchased by WRT from third party manufacturers according to WRT’s specifications, and
all parts and supplies needed to make the System fully operational (collectively the “Equipment”),
all as more fully described in Exhibit A hereto;

     WHEREAS, the Systems are designed as a marketing platform to be installed at locations
(“Installation Sites”) of retailers (“Retailers”) chosen by Sealy and used by the Retailers’
customers (“Customers”) in shopping for, selecting and purchasing mattresses, box springs, and
other bedding products of Sealy and its subsidiaries;

     WHEREAS, Sealy desires to purchase (as used herein, “purchase” means to buy the Equipment and
license use of the WRT Technology) Systems from WRT for use in Beta Tests (as defined below);

     WHEREAS, assuming that (i) Sealy is satisfied with the results of the Beta Tests, (ii) Sealy
and WRT have executed a SealyTouchTM Master Service Agreement in accordance with Section 5 below
(the “Master Service Agreement”) pursuant to which, for a separate fee, WRT shall install, test,
maintain, repair, update, and otherwise service all of the Systems purchased by Sealy and keep them
in good working order and provide insurance claim, warranty claim and such other services as are
specified therein, (iii) Sealy, WRT and Richardson Electronics, Ltd. have executed the Backup
Service Agreement in accordance with Section 5 below, and (iv) Sealy has accepted and become a
beneficiary of WRT’s Master Preferred Escrow Agreement with Iron Mountain (the “Master Preferred
Escrow Agreement”) relating to WRT’s Technology in accordance with Section 5 below, Sealy desires
to purchase additional Systems from WRT in an amount to be determined by Sealy in its sole
discretion, but estimated to be up to 3,000 units, all upon the terms and conditions set forth
herein; and

     WHEREAS, WRT desires to sell (as used herein, “sell” means to sell the Equipment and license
the use of the WRT Technology) Systems to Sealy for use in the Beta Tests, to cooperate
with Sealy and Winmark Capital Corporation (“Winmark”) if Sealy decides to utilize Winmark in
connection with this transaction to finance and/or manage Sealy’s purchase and use of

 

 

Systems through a lease, to execute and provide Sealy with the services specified in the Master Service
Agreement, to execute the Backup Service Agreement, to make Sealy a beneficiary of its Master
Preferred Escrow Agreement, and to sell additional Systems to Sealy, all upon the terms and
conditions set forth herein.

     NOW, THEREFORE, IN CONSIDERATION of the foregoing and the mutual covenants set forth herein,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound,
the parties agree as follows:

SECTION 1

PURCHASE AND SALE OF SYSTEMS; LICENSE OF WRT TECHNOLOGY

     1.1 General. Subject to the terms and conditions hereof, Sealy agrees to purchase Systems
from WRT, and WRT agrees to sell Systems to Sealy.

     1.2 Purchase and Sale of Systems for Beta Test. Pursuant to the purchase order attached
hereto as Exhibit B, Sealy has purchased from WRT, and WRT has sold to Sealy, 50 Systems, many of
which have been installed at Installation Sites designated by Sealy and used in a Beta Test.
Sealy intends to conduct a further Beta Test and for that purpose may purchase and have installed
additional Systems. Sealy shall complete its Beta Tests of the Systems on or before September 30,
2006 or such other date as the parties may agree.

     1.3 Purchase and Sale of Additional Systems beyond the Beta Test. Assuming that (i) Sealy is
satisfied with the results of the Beta Tests, (ii) Sealy and WRT have executed a Master Service
Agreement pursuant to which, for a separate fee, WRT will install, test, maintain, repair, update,
and otherwise service the Systems and keep them in good working order and provide insurance claim,
warranty claim and such other services as are specified therein, and (iii) Sealy has accepted and
become a beneficiary of WRT’s Master Preferred Escrow Agreement with Iron Mountain relating to
WRT’s Technology, Sealy shall purchase from WRT, and WRT shall sell to Sealy, additional Systems
to be installed at Installation Sites in the United States, Canada and Mexico (the “Territory”).
Subject to the provisions of Section 1.4 below, the number of such additional Systems purchased by
Sealy from WRT and their Installation Sites shall be determined by Sealy in its sole discretion;
provided, however, that every purchase order placed by Sealy and filled by WRT shall be for a
minimum of 50 additional Systems.

     1.4 Purchase Estimates. Not less than 20 days prior to the beginning of each calendar
quarter, Sealy will provide WRT with a written quarterly System purchase estimate for the upcoming
3 month period (the “Estimate”). Sealy may in its sole discretion amend an Estimate at any time
by providing written notice of same to WRT. An Estimate or amended Estimate shall not obligate
Sealy to purchase any particular volume of Systems, shall not in any way be construed by WRT as a
promise or guaranty by Sealy to purchase any volume of Systems, and shall not be relied upon by
WRT in deciding to incur any costs in connection with this Agreement. Subject to Section 3.2
below, Sealy may purchase fewer or more Systems during a quarter than predicted in the Estimate or amended Estimate for said quarter without
any liability to WRT beyond that specified in this Agreement.

2

 

     1.5 Purchase Orders. Any purchase order delivered by Sealy will incorporate the terms and
conditions of this Agreement and the Master Service Agreement, and all additional or different
terms in any purchase order delivered by Sealy will not be part of the agreement between the
parties unless agreed to in writing by WRT. Each purchase order placed by Sealy in accordance
with the terms of this Agreement shall be accepted by WRT.

     1.6 Designation of Installation Sites. With every purchase order that Sealy places with WRT,
whether for Systems to be used in the Beta Test or for additional Systems, Sealy shall designate
to WRT the Installation Site for each System ordered.

     1.7 License of WRT Technology. Subject to the provisions of this Agreement, WRT grants to
Sealy and Sealy accepts, effective upon completion of the delivery and installation of each
System, a limited, personal, nonexclusive, nontransferable, nonassignable, irrevocable,
non-royalty bearing Object Code license to use WRT Technology. “Object Code” shall mean the
binary machine-readable version of WRT Technology. Sealy’s rights in the WRT Technology pursuant
to such license are expressly limited to the use of the WRT Technology by Sealy at Installation
Sites in the Territory in connection with the Equipment. Sealy shall not assign, transfer, or
sublicense the WRT Technology without the prior written consent of WRT; provided, however, that
Retailers and Customers are free to use WRT Technology as part of the Systems at Installation
Sites.

     1.8 Limited Exclusivity. During the term of this Agreement and so long as Sealy shall have
ordered and provided WRT with an Installation Schedule for either (i) 250 Systems per calendar
quarter beginning with the quarter ending December 31, 2006, or (ii) a total of 2,000 Systems
deliverable during the term of this Agreement in quantities of at least 250 Systems per calendar
quarter, commencing with the quarter ending December 31, 2006, WRT agrees not to furnish the WRT
Technology to any other Bedding Manufacturer or Bedding Retailer in the Territory. The
requirements for the limited exclusivity for the term of this Agreement shall be deemed met if
Sealy has met the conditions of clause (i) or (ii) of the preceding sentence. During the term of
this Agreement, Sealy agrees to use only WRT as its vendor for interactive touch screen display
technology; provided, that at such time as the requirements for limited exclusivity above are not
met and WRT shall have thereafter furnished WRT Technology to any other Bedding Manufacturer or
Bedding Retailer in the Territory, Sealy shall not be bound by the limited exclusivity obligations
of this Section 1.8. For purposes of this Agreement, “Bedding Manufacturer” or “Bedding Retailer”
shall be any manufacturer or stand alone retailer of beds or futons, whether conventional
innerspring products or specialty foam or air products, or any other product that is used or
marketed for a person to sleep upon. A Bedding Manufacturer or Bedding Retailer shall not include
a mass retailer that sells bedding in addition to other retail consumer merchandise.

     1.9 Reverse Engineering. Sealy shall not translate, reverse engineer, decompile, recompile,
update, or modify all or any part of the WRT Technology or merge the WRT Technology into any other
software.

     1.10 No Licenses. Except as explicitly provided in Section 1.7 of this Agreement, no license
under any patents, copyrights, trademarks, trade secrets, or any other intellectual property
rights, express or implied, are granted by WRT to Sealy under this Agreement.

3

 

     1.11 Corruption Protection. WRT will equip the WRT Technology licensed to Sealy with
protection against viruses, Trojan horses, worms or other software routines or hardware components
designed to permit unauthorized access or to disable, erase or otherwise harm any software,
hardware or data (collectively “Corruptions”), and will periodically provide any updates to such
protection for the Systems sold to Sealy.

SECTION 2

UNIT PRICE; ADJUSTMENT OF UNIT PRICE; PAYMENT TERMS; TAXES

     2.1 Unit Price. The purchase price for each System (the “Unit Price”) shall be set forth in
Schedule 2.1 hereto, shall become effective upon said Schedule 2.1 being dated and signed by both
Sealy and WRT, and shall remain effective until replaced by a new dated and signed Schedule 2.1
setting forth an adjusted Unit Price pursuant to Section 2.2 below. The Unit Price shall include
the purchase price for the Equipment, the license fee for the WRT Technology, and all charges for
packing, loading, transporting, unloading, installing and testing the System at the Installation
Site and for insurance on the System pursuant to Section 4.2 below. Sealy shall not be liable to
WRT for any additional price, fee or charge beyond the Unit Price for the purchase and
installation of each System. The Unit Price shall not include the separate fee that Sealy agrees
to pay WRT for post-sale services relating to the Equipment pursuant to the Master Service
Agreement. The Unit Price shall not include the amounts that Sealy agrees to reimburse to WRT for
payment of certain taxes pursuant to Section 2.4 below.

     2.2 Quarterly Pricing, Annual Review and Adjustment of Unit Price.

     2.2.1 Quarterly Pricing. The Unit Price shall be subject to adjustment unilaterally by
WRT at the end of each calendar quarter, beginning with the calendar quarter ending December
31, 2006 (each such date, an “Adjustment Date”) based on WRT’s costs for all hardware
(including without limitation hard drive and flat screen components) (“Components”) of the
Unit. If the cost of the Unit is more than five percent (5%) below or five percent (5%)
above the current cost of the Unit due to the price movement of the Components, WRT shall
provide Sealy with a price change notice and all purchase orders dated after the date of the
Price Change Notice shall be seventy-five percent (75%) of the documented price change in
either direction. As an example, if the Component costs lower the Unit cost by ten percent
(10%), then WRT shall lower for Sealy the Unit Price by 7.5%, thereby rewarding WRT 2.5% of
the price savings.

     2.2.2 Annual Review. Upon either parties’ request, the parties shall cause Larson,
Allen, Weishar & Co., LLP, or such other professional firm as the parties mutually agree (in
either case, the “Analyst”), to prepare and deliver to each of WRT and Sealy within 30 days
of any request a detailed written analysis showing all of WRT’s outside vendor costs for the
Components incurred during the Review Period (the “Review Period”) ending with the month
that immediately precedes the month of the request date
and calculating the per unit cost (the “Per Unit Cost”) for that Review Period. Upon
request by either party, the Analyst shall explain the analysis and identify the documents
and information relied upon for the analysis. WRT shall make all relevant data in its
custody, possession or control available to the Analyst. If the Per Unit Cost for that

4

 

Adjustment Period is more than five percent (5%) less than the Per Unit Cost charged by WRT,
then Sealy shall receive a retroactive price decrease for that Review Period for the entire
amount of the savings and pay the new Per Unit Price going forward as determined by the
Analyst. If the Unit Cost is higher, then Sealy shall pay 75% of the documented price
increase based on the Component cost increases. The party requesting the Annual Review
shall be responsible for the costs of the review unless a price change favorable to that
party is determined by the Analyst. The foregoing notwithstanding, there shall be no
adjustment to the Unit Price, whether increase or decrease, unless the change in the Per
Unit Cost is 5% or greater.

     2.3 Payment Terms. Sealy shall pay the Unit Price for each System that it purchases from WRT
in three equal installments. Sealy shall pay the first equal installment when it places its
purchase order for the System with WRT. Sealy shall pay the second equal installment within
thirty (30) days after receipt from WRT of an invoice for the sale and written evidence (e.g.,
delivery ticket signed by Retailer) that the System has been delivered to the proper Installation
Site. Sealy shall pay the third equal installment within thirty (30) days after the System has
been installed, tested, and accepted by Sealy in accordance with Section 3.4 below. One sixth
(1/6th) of the final payment (or 5.5% of the total Unit Price) shall be deposited into
an escrow account pursuant to an Escrow Agreement between WRT, Sealy and the Escrow Agent
thereunder (the “Escrow Agreement”) from which the Escrow Agent shall then distribute the proceeds
of this account to WRT in twelve monthly installments from the date it is deposited as long as
Sealy does not file an objection with the Escrow Agent. Upon the receipt of an objection, the
Escrow Agent shall immediately cease distribution of the escrow funds, until a notice has been
filed by Sealy that such objection has been resolved. An objection must be detailed and be
related to the functioning of the Systems themselves or the installation of the Systems, but does
not have to refer or relate to the particular Systems for which the Deposit is part of the third
installment payment. An objection must be reasonably related to a request to withhold escrow
distribution (i.e. must represent damages or a remedy to Sealy and in the event of an arbitration
as set out below shall represent one source of funds for Sealy if its is determined that WRT has
breached this Agreement or the Master Service Agreement). To the degree the parties disagree
about any objection, they shall promptly meet to resolve the dispute pursuant to the dispute
resolution terms below. The escrow funds may be invested in any reasonable manner (as long as a
commercially independent investment vehicle) as determined by WRT with prior approval by Sealy,
such approval shall not be unreasonably withheld or delayed. All profits or losses from the
escrow account shall be accrued or borne solely by WRT. The parties agree that a Deposit in the
Escrow Agreement shall not be required on any purchase of fewer than ten (10) units and will not
apply to the purchase of the twelve (12) additional units envisioned for the extended beta in July
or August 2006.

     2.4 Taxes. Sealy shall be responsible for and pay all fees, expenses, charges, costs and
taxes payable for the sale of Systems to Sealy, the sale of Equipment to Sealy, and the license of
WRT Technology to Sealy, including but not limited to sales, use, excise, value-added and other
taxes and duties (collectively, “Taxes”). WRT’s invoices shall separately state
the amount of any Taxes WRT is collecting from Sealy, to the extent applicable. The parties
agree to cooperate in collecting Taxes and filing when due all returns in respect of any Taxes.
If Sealy is exempt from payment of Taxes, it shall provide WRT with a valid exemption certificate
evidencing tax-exempt status prior to delivery of any Systems hereunder. Sealy shall

5

 

indemnify WRT for all Taxes paid by WRT and any other costs and expenses related thereto, including
attorney’s fees. The parties agree that if Sealy leases through Winmark or other leasing agent,
such agent may be responsible for Taxes, but in no event shall WRT be responsible for such Taxes.

SECTION 3

SITE PREPARATION; DELIVERY; INSTALLATION; ACCEPTANCE

     3.1 Site Preparation. Sealy shall be responsible for assuring that each Installation Site is
properly prepared for installation and operation of the System in accordance with the procedures
set forth on Schedule 3.1 hereto. Should WRT determine that any Installation Site has not been
properly prepared for installation and operation of the System, WRT shall promptly notify Sealy
and the Retailer so that remedial steps may be taken to correct the problem with the site and
permit installation and operation with minimal delay. WRT shall not be responsible for paying or
reimbursing the costs, if any, associated with proper site preparation. Sealy shall promptly
reimburse WRT for any costs incurred by WRT in connection with any improper site preparation
following receipt from WRT of a written statement showing the nature and dollar amount of each
such cost, how it was calculated, and what was improper about the site preparation that caused WRT
to incur the cost. WRT shall not be responsible for providing, or otherwise bearing the costs of,
communications facilities for the Systems for the purposes of remote access and support by WRT.

     3.2 Delivery. WRT shall have each System available for shipping to its proper Installation
Site within 12 weeks after receiving the relevant purchase order from Sealy, or within such other
time period as the parties may agree. The Unit Price is a delivered and installed price. All
packing, loading, freight, transportation, unloading and similar charges for delivery of Systems
to Installation Sites are to be paid or incurred by WRT. Sealy shall have no responsibility for
paying or reimbursing WRT for such charges other than as a component of the Unit Price.

     3.3 Installation. Within 6 weeks after providing a purchase order to WRT, Sealy shall
provide to WRT a written schedule (the “Installation Schedule”) setting forth the Installation
Date and Installation Site for each of the ordered Systems. Within 3 weeks of receiving the
Installation Schedule from Sealy, WRT shall provide to Sealy and to each affected Retailer written
notice of the final Installation Schedule either as proposed by Sealy or as modified by the mutual
agreement of Sealy and WRT. WRT shall provide complete installation of each System at its proper
Installation Site and on the date set forth in the final Installation Schedule. The Unit Price is
a delivered and installed price. All rigging, labor, supplies, parts, and other costs associated
with installing Systems are to be paid or incurred by WRT. Sealy shall have no responsibility for
paying or reimbursing WRT for such charges other than as a component of the Unit Price.

     3.4 Acceptance of System by Sealy. Following installation of each System, WRT shall test the
System to assure that it is fully operational. The test shall be conducted in the presence of
Sealy or its representative (for this purpose, Sealy’s representative may be the Retailer at whose
retail location the System has been installed). If the test reveals problems

6

 

with the System that can be remedied on site, WRT shall fix problems and make the System fully operational. Once WRT
has tested an installed System and concluded that it is fully operational, WRT shall certify in
writing to Sealy that it is ready for acceptance. Sealy shall certify in writing its acceptance of
each System that WRT has delivered, installed, tested, and made fully operational at the proper
Installation Site. Sealy shall notify WRT of any System that Sealy rejects, including the reason
or reasons for rejection. Sealy and WRT shall attempt to resolve in good faith any disagreement
they might have over whether a System merits acceptance. WRT shall promptly de-install and remove
from the Installation Site any System that Sealy has rejected and shall do so at no cost or
expense to Sealy. Further, Sealy shall be entitled to credit or offset the installment payments
it has made on any rejected System that has not been cured or remedied to Sealy’s satisfaction
against its payment obligations to WRT under this Agreement or the Master Service Agreement.

SECTION 4

LOSS OR DAMAGE; INSURANCE; RELOCATING SYSTEMS

     4.1 Loss or Damage. WRT shall assume and bear the risk of loss, theft, or damage to each
System from any and every cause whatsoever, whether or not covered by insurance, that occurs prior
to delivery of the System to its proper Installation Site. WRT shall not assume or bear any of
the risk of loss, theft, or damage to any System that occurs after the System has been delivered to
the proper Installation Site, except and to the extent caused by WRT while installing, testing,
repairing, or servicing the System under the Master Service Agreement.

     4.2 Insurance. WRT shall, at its expense, purchase and maintain goods in transit insurance,
including theft, loss, accidental damage, liability caused during transit and damages for any delay
in delivery, in such amounts and with such limits as Sealy may require (which is $1,000,000 per
occurrence and $2,000,000 in the aggregate), and naming Sealy as an additional insured. All such
insurance shall provide for thirty (30) days prior written notice to Sealy of cancellation,
restriction, or reduction of coverage. WRT agrees to obtain this insurance from an insurance
company which is at least “A” rated by A.M. Best.

     4.3 Relocating Systems. Upon written request by Sealy, WRT shall relocate a System from one
Installation Site to another, including de-installing, packing, loading, transporting, unloading,
unpacking, re-installing, testing and making the System operational at the new Installation Site.
For these services, WRT shall be entitled to a fee (the “Relocation Fee”) in the amount set forth
on Schedule 2.1. Sealy shall pay the Relocation Fee to WRT within thirty (30) days after the
System has been relocated and is operational at the new Installation Site.

SECTION 5

ANCILLARY AGREEMENTS

     5.1 Ancillary Agreements. Within 90 days after the execution of this Agreement, WRT and Sealy
shall execute and deliver (i) the Master Service Agreement, (ii) the Master Preferred Escrow
Agreement, (iii) the Escrow Agreement and (iv) the Backup Service

7

 

Agreement (the “Ancillary Agreements”); provided, that WRT and Sealy shall in any event execute and deliver the Escrow
Agreement after the completion of the Beta Test and prior to the purchase and sale of additional
Systems as contemplated by Section 1.3.

SECTION 6

PROPRIETARY PROTECTION OF WRT TECHNOLOGY

     6.1 Reservation of Title. All right, title and interest in and to WRT Technology, including
all modifications, enhancements and derivatives thereof, and all deliverables and know-how and
proprietary rights, including patents, patent applications and copyrights and trade secrets
relating to WRT Technology will remain with WRT or its suppliers, as applicable. It is intended
that Sealy have no ownership rights in any WRT Technology other than ownership of tangible media
in which WRT Technology is expressed, in connection with the operation of the Systems at the
Installation Sites. This Agreement does not effect any transfer of title in the WRT Technology,
or any materials furnished or produced in connection therewith, including drawings, diagrams,
specifications, input formats, source code, and user manuals. Sealy acknowledges that the WRT
Technology (and all materials furnished or produced in connection with the WRT Technology),
including, without limitation, the design, programming techniques, flow charts, source code, and
input data formats, contain trade secrets of WRT, entrusted by WRT to Sealy under this Agreement
for use only in the manner expressly permitted hereby. Sealy further acknowledges that WRT claims
and reserves all rights and benefits afforded under federal law in the WRT Technology as
copyrighted works.

     6.2 Confidentiality. This Agreement, the Ancillary Agreements, and the development efforts
of the parties are not deemed to establish a confidential relationship between the parties and all
information and documentation exchanged between them, other than Proprietary Information (as
hereinafter defined) will be received and treated by the receiving party on a non-confidential and
unrestricted basis, subject to restrictions imposed by patent, copyright and trade secret laws.
Subject to Section 6.4, each party agrees that for a period of three years from the termination or
expiration of this Agreement, without the prior written consent of the other party regarding a
specific contemplated transaction: (a) a party will not disclose Proprietary Information of the
other party; (b) except as provided herein, limit dissemination of the other party’s Proprietary
Information to only those of the receiving party’s officers, directors and employees who require
access thereto to perform their functions regarding the purposes of this Agreement and the
Ancillary Agreements; and (c) not to use Proprietary Information of the other party except for the
purposes of this Agreement and the Ancillary Agreements, which purposes shall include disclosure
to subcontractors and sources of supply. “Proprietary Information” as used herein means all or
any portion of: (i) WRT Technology; (ii) written, recorded, graphical or other information in
tangible form disclosed during the term of this Agreement, by one party to the other party, which is labeled
“proprietary,” “confidential,” or with similar legend denoting the proprietary interest therein of
the disclosing party; (iii) oral information disclosed by one party to the other party to the
extent identified as “proprietary” or “confidential” at the time of oral disclosure, and confirmed
in written or other tangible form within thirty (30) days following oral disclosure, or with
similar written evidence denoting the proprietary interest of the disclosing party; and (iv)
models, test software, beta versions and sample products identified at the time of disclosure as
being

8

 

proprietary to the disclosing party; provided, however, that Proprietary Information shall
not include any data or information that is: (A) in the possession of the receiving party prior
to its disclosure by the disclosing party and not subject to other restrictions on disclosure; (B)
independently developed by the receiving party; (C) publicly disclosed by the disclosing party;
(D) rightfully received by the receiving party from a third party without restrictions on
disclosure; (E) approved by unrestricted release or disclosure by the disclosing party; or (F)
produced or disclosed pursuant to applicable law, regulation, subpoena, or court order, provided
that the receiving party has given the disclosing party prompt notice of such request so that the
disclosing party has an opportunity to defend, limit or protect such production or disclosure.

     Notwithstanding any other provision of this Agreement, WRT shall have the right to disclose
this Agreement and its terms to its investors and in connection with any filings and disclosures
required to be made under the Securities Act of 1933, as amended, or the Securities Exchange Act of
1934, and any related state securities filings.

     6.3 Restrictions on Use of WRT Technology. Neither the WRT Technology nor any materials
provided to Sealy in connection with the WRT Technology may be copied, reprinted, transcribed, or
reproduced, in whole or in part, without the prior written consent of WRT. Sealy shall not in any
way modify or enhance the WRT Technology, or any materials furnished or produced in connection
therewith, without the prior written consent of WRT.

     6.4 Duration of Duties and Return of WRT Technology. The duties and obligations of Sealy
hereunder shall remain in full force and effect for so long as Sealy continues to control,
possess, or use any System. Sealy shall promptly return to WRT all tangible WRT Technology,
together with all materials furnished or produced in connection therewith by WRT, upon (1)
termination of Sealy’s license to use the WRT Technology or (2) abandonment or sale by Sealy of
all Systems or all Equipment used in all Systems.

SECTION 7

REPRESENTATIONS, WARRANTIES AND LIMITATIONS

     7.1 WRT Technology. WRT represents and warrants that it has the lawful right to grant the
license to Sealy of the WRT Technology as provided herein. WRT represents and warrants that the
WRT Technology will perform its intended functions as part of the Systems in accordance with the
specifications set forth on Exhibit A hereto. WRT further represents and warrants that when a
System is first installed at an Installation Site, the WRT Technology incorporated therein will be
free of all Corruptions. WRT does not represent or warrant that the WRT Technology will remain
free of Corruptions after being installed at an Installation Site or that the WRT Technology will
operate uninterrupted or error free.

     7.2 Equipment. WRT represents and warrants that the Equipment has been integrated with the
Systems delivered hereunder in accordance with the specifications set forth on Exhibit A hereto.
WRT does not represent or warrant that the Equipment will be free of manufacturing defects or that
the Equipment will be manufactured in accordance with the specifications provided by WRT to the
manufacturers or that the Equipment will operate

9

 

uninterrupted or error free; provided, however,
that this sentence shall not affect WRT’s obligations under the Master Service Agreement to
repair, service and maintain the Systems. Claims against the Equipment manufacturers under their
warranties will be handled pursuant to the Master Service Agreement.

     7.3 Systems. WRT represents and warrants that the Systems conform to the specifications set
forth on Exhibit A hereto. WRT does not represent or warrant that the Systems installed at the
Installation Sites will operate uninterrupted or error free; provided, however, that this sentence
shall not affect WRT’s obligations under the Master Service Agreement to repair, service, and
maintain the Systems.

     7.4 Remedy for WRT Technology Defect or Non-Conformity. WRT’s sole and exclusive
responsibility, and Sealy’s sole and exclusive remedy, for any defect or non-conformity in the WRT
Technology incorporated into a System shall be for WRT to promptly correct or replace, at no
additional charge to Sealy, the defective or non-conforming WRT Technology so that the System is
restored and fully operational; provided, however, that if WRT fails to correct or replace
defective or non-conforming WRT Technology in a System within 30 days after WRT receives notice of
same, Sealy may elect to have the defect or non-conformity corrected or replaced by a third party
contractor and the expense thereof may be credited or offset by Sealy against any payment
obligation is owes to WRT under this Agreement or the Ancillary Agreements.

     7.5 Warranty Disclaimer. EXCEPT AS SET FORTH IN THIS SECTION 7, WRT MAKES NO EXPRESS OR
IMPLIED REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE SYSTEMS, THE WRT TECHNOLOGY, AND THE
EQUIPMENT OR THEIR CONDITION, MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE OR USE BY SEALY.
WRT FURNISHES THE ABOVE WARRANTIES IN LIEU OF ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED,
INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

     7.6 Voiding of Representations and Warranties. Any and all representations and warranties by
WRT with respect to the WRT Technology, the Equipment and Systems shall be void as to a claimed
defect or non-conformity caused by or related to any of the following actions taken without WRT’s
prior consent or approval: (1) any alterations or modifications made to any WRT Technology, the
Equipment or Systems by Sealy, it representatives or agents; (2) any use of the WRT Technology,
Equipment, or Systems other than in the operating environment specified in the technical
specifications provided to Sealy by WRT; or (3) the negligence or willful misconduct of Sealy or
any Retailer, or any of their respective representatives, agents or Customers.

SECTION 8

DEFAULT

     8.1 Events of Default. Any of the following shall constitute an “Event of Default” under
this Agreement:

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     8.1.1 WRT’s failure during the term of this Agreement to keep on deposit for the
benefit of Sealy the Deposit Materials as required by the Master Preferred Escrow Agreement;

     8.1.2 WRT’s material breach of this Agreement and/or the Master Service Agreement that
has not been cured within fifteen (15) days after Sealy has provided WRT with written notice
thereof;

     8.1.3 Sealy’s material breach of this Agreement and/or the Master Service Agreement
that has not been cured within fifteen (15) days after WRT has provided Sealy with written
notice thereof;

     8.1.4 Every written notice under Subsections 8.1.2 and 8.1.3 shall identify the act or
omission that constitutes the breach and the particular provision(s) of the Agreement and/or
the Master Service Agreement that have been breached;

     8.1.5 Any act or event whereby Sealy or WRT (a) is or becomes a party to any bankruptcy
or receivership proceeding or any similar action affecting the financial condition or
property of Sealy or WRT, as applicable, if such proceeding has not been dismissed within 30
days, or (b) makes a general assignment for the benefit of creditors.

     8.2 Remedies.

     8.2.1 Upon the occurrence of an Event of Default by WRT, Sealy shall have the following
remedies, any one or more of which it may elect: (a) Sealy may cure or attempt to cure the
default, in which event WRT shall be liable for Sealy’s cure or attempted cure costs, and
Sealy shall be entitled to credit or offset said costs against any obligations that Sealy
owes to WRT; (b) Sealy may terminate this Agreement and/or the Master Service Agreement,
said termination to be effective upon Sealy’s providing written notice of termination to
WRT; (c) if Sealy terminates this Agreement and/or the Master Service Agreement, Sealy may
continue to use the WRT Technology in the Systems and may perform or have performed
maintenance, repair, updating and other services on the WRT Technology in the Systems; (d)
Sealy may pursue any damage or equitable claims it has against WRT under applicable law but
only through an arbitration proceeding in accordance with Section 13.3 below, subject to the
limitations set forth in Section 11.3 and Section 11.4 below; or (e) Sealy may file an
Objection with the Escrow Agent as set out above in Section 2.2; provided, that upon the
occurrence of an Event of Default by WRT, WRT shall be entitled to reject any purchase
orders placed by Sealy hereunder after such Event of Default, without liability of WRT to
Sealy, and Sealy shall be entitled to cancel any purchase orders placed by Sealy hereunder
after an Event of Default by WRT pursuant to Section 8.1.1 or 8.1.5, without liability to
Sealy.

     8.2.2 Upon the occurrence of an Event of Default by Sealy, WRT shall have the following
remedies, any one or more of which it may elect: (a) WRT may cure or attempt to cure the
default, in which event Sealy shall be liable for WRT’s cure or attempted cure costs, and
WRT shall be entitled to credit or offset said costs against any obligations that WRT owes
to Sealy; (b) WRT may terminate this Agreement and/or the Master Service

11

 

Agreement, said termination to be effective upon WRT’s providing written notice of termination to Sealy; and
(c) WRT may pursue any damage or equitable claims it has against Sealy under applicable law
but only through an arbitration proceeding in accordance with Section 13.3 below.

     8.3 Waiver. No delay or failure of either party in exercising any right or remedy hereunder,
nor any partial exercise thereof, shall be deemed to constitute a waiver of any right or remedy
granted hereunder or at law or equity.

SECTION 9

JOINT DEVELOPMENT

     WRT has developed a unique point of sale interactive technology with a number of potential
retail and educational applications. Sealy has expertise in developing and commercializing a wide
range of consumer mattresses and related products as well as marketing and distributing those
products to retailers throughout North America. WRT and Sealy will continue to collaborate to
develop innovative Sealy-based, WRT sales applications that will aim to enhance the shopping
experience of Customers while in the retail store. The parties agree to discuss and negotiate
ownership of jointly developed intellectual property.

SECTION 10

TERM OF AGREEMENT

     The initial term of this Agreement shall commence upon the full execution of this Agreement
and the Ancillary Agreements, and shall continue for three (3) years, subject to automatic renewals
for additional one (1) year terms; provided, however, that this Agreement shall expire at the end
of the initial term or any renewal term if within sixty (60) days of the end of such term, either
party gives notice to the other that it desires to have this Agreement expire at the end of said
term.

SECTION 11

INDEMNIFICATION; LIMITATION OF LIABILITY

     11.1 Indemnification by WRT. WRT shall indemnify and hold Sealy harmless against all claims,
liabilities, losses, damages and causes of action based on: (a) any claim that WRT Technology,
when used by Sealy in accordance with this Agreement, has infringed any U.S. patent, copyright, or
other intellectual property rights; (b) an Event of Default by WRT; (c) any claim of death, bodily
injury or property damage as a result of WRT’s negligence or breach of its obligations under this
Agreement; or (d) any claim that WRT has failed to pay or otherwise has materially breached its obligations to a manufacturer or seller of Equipment
for the Systems or to a service provider to whom WRT has subcontracted one or more of its service
obligations under the Master Service Agreement.

     11.2 Indemnification by Sealy. Sealy shall indemnify and hold harmless WRT against all
claims, liabilities, losses, damages and causes of action based on: (a) a claim that

12

 

involves the sale or use of Sealy’s products purchased by any party utilizing a System; (b) an Event of Default
by Sealy; (c) any claim of death, bodily injury or property damage as a result of Sealy’s
negligence or breach of its obligations under this Agreement; or (d) any claim that content
developed or provided by Sealy has infringed any U.S. patent, copyright, or other intellectual
property rights.

     11.3 Disclaimer of Liability. NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY (A)
SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF PROFITS,
ARISING FROM OR RELATED TO A BREACH OF THIS AGREEMENT OR THE OPERATION OR USE OF SYSTEMS, THE
EQUIPMENT OR WRT TECHNOLOGY INCLUDING SUCH DAMAGES, WITHOUT LIMITATION, ARISING FROM LOSS OF DATA
OR PROGRAMMING, LOSS OF REVENUE OR PROFITS, FAILURE TO REALIZE SAVINGS OR OTHER BENEFITS, DAMAGE
TO EQUIPMENT, AND THIRD PARTY CLAIMS AGAINST ONE PARTY, EVEN IF THE OTHER PARTY HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES; OR (B) DAMAGES (REGARDLESS OF THEIR NATURE) FOR ANY DELAY OR
FAILURE BY WRT TO PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT DUE TO ANY CAUSE BEYOND WRT’S
REASONABLE CONTROL

     11.4 Limitation of Liability. NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, THE
DAMAGES THAT EITHER PARTY MAY RECOVER FROM THE OTHER FOR BREACH OF THIS AGREEMENT, WHETHER UNDER
CONTRACT LAW, TORT LAW, WARRANTY OR OTHERWISE, SHALL BE LIMITED TO DIRECT DAMAGES AND SHALL NOT
EXCEED THE SUM OF THE AMOUNTS ACTUALLY RECEIVED BY WRT AND THE AMOUNTS DUE AND OWING TO WRT UNDER
THIS AGREEMENT.

SECTION 12

OBLIGATIONS THAT SURVIVE TERMINATION

     The parties recognize and agree that their obligations under Sections 2.3, 2.4, 4.1, 6, 7, 8,
11, 13.1, 13.2, 13.3, 13.4, 13.5, 13.6, 13.10, 13.11, 13.12, and 13.13 of this Agreement shall
survive the termination or expiration of this Agreement; provided, that the representations and
warranties set forth in Section 7 shall terminate upon the earlier to occur of (i) the date that is
three years following the installation of the applicable System, (ii) the termination or expiration
of the manufacturer’s Equipment warranty for the applicable System, and (iii) the termination or
expiration of the Master Service Agreement.

SECTION 13

GENERAL

     13.1 Force Majeure.

     13.1.1 Neither party hereto shall be liable for failure to perform or delay in the
performance of any of its obligations hereunder, when such failure or delay is caused by

13

 

acts of God, the public enemy, war, acts of the elements, fires, riots, insurrection, civil
commotion, governmental acts and regulations or any other circumstance or condition beyond
the reasonable control of either party.

     13.1.2 If the performance of either party is affected by any event of Force Majeure,
each party shall immediately notify in writing the other giving details of the event. The
performance of the party affected by such event of Force Majeure shall be suspended only for
as long as the event of Force Majeure and/or its effects on performance hereunder
continue(s), but the parties hereto shall consult and will use their commercially reasonable
efforts to find alternative means of accomplishing such performance which satisfies the
requirements of this Agreement. Immediately upon cessation of the event and its effects on
performance hereunder, the party affected by an event of Force Majeure shall notify the
other party in writing and shall take steps to recommence or continue the performance that
was suspended.

     13.2 Relationship of Parties. WRT and Sealy are independent contractors and no relationship
of joint venturer, franchisee/franchisor, or partner is created by this Agreement and/or the
Ancillary Agreements.

     13.3 Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the New York.

     13.4 Junta. Sealy and WRT shall each designate two representatives to serve throughout the
term of this Agreement as members of a four-person group (the “Junta”), the purpose of which is to
identify, consider, and resolve by consensus or majority vote any dispute, controversy or claim
arising out of or relating to this Agreement or the performance by the parties of its terms. The
Junta shall meet and conduct business regularly at least one meeting on at least an annual basis
and specially at such other times as any member of the Junta shall request in order to address a
specific matter or matters that he or she believes cannot reasonably be deferred until the next
regular meeting. All meetings of the Junta shall be held in person, alternating between Sealy’s
offices in North Carolina and WRT’s offices in Minnesota, unless a majority of the members of the
Junta decide to hold the meeting at another location or to permit one or more of the members to
participate in the meeting by telephone. All special meetings of the Junta may be conducted by
telephone or in person. Should any member of the Junta resign, the party that designated the
resigning member shall promptly designate a replacement. Each party shall bear the travel and
other expenses of its representatives on the Junta, and the parties shall split all other costs of
the Junta. No arbitration pursuant to Section 13.5 below may be commenced by either party until at
least one meeting on the subject matter of the dispute has been held with at least one member from
each Sealy and WRT from the Junta. All offers of settlement or compromise made during deliberations of the Junta shall
be subject to Federal Rule of Evidence 408 and similar state rules of evidence and shall not be
admissible in any formal arbitration.

     13.5 Arbitration. Any dispute, controversy or claim arising out of or relating to this
Agreement or the performance by the parties of its terms that is not resolved by consensus or
majority vote of the Junta in accordance with Section 13.4 may be resolved by binding arbitration
initiated by either party and held (i) if the arbitration is initiated by Sealy, in

14

 

Minneapolis, Minnesota, or (ii) if the arbitration is initiated by WRT, in Chicago, Illinois. The provisions
of Section 13.4 and this Section 13.5 shall be the exclusive dispute resolution procedures for any
and all matters arising out of or related to this Agreement pursuant to which any party is seeking
an award of money damage.

     13.5.1 Unless the parties agree upon a single person to serve as the arbitrator, each
party shall appoint one person to serve as an arbitrator and the two arbitrators selected by
the parties shall select a third person to serve as an arbitrator and the three arbitrators
shall arbitrate the dispute, controversy or claim.

     13.5.2 The arbitrator(s) may allow such discovery as the arbitrator(s) determine
appropriate under the circumstances and shall resolve the dispute as expeditiously as
practicable, and if reasonably practicable, within 120 days after the selection of the
arbitrator(s). Each party agrees to produce at its expense in Atlanta, Georgia, for
deposition (if allowed by the arbitrator(s)) and for testimony at the arbitration hearing
any witnesses within its control or in its employment if requested by the other party;
provided, however, that neither party shall be required to produce or pay the expenses of
more than five (5) witnesses. The arbitrator(s) shall give the parties written notice of
their award, with the reasons therefor set out, and shall have 30 days thereafter to
reconsider and modify such award if any party so requests within 10 days after the award.

     13.5.3 The arbitrator(s) shall have authority to award relief under legal or equitable
principles. The parties shall equally split the arbitrator(s)’ fee and other costs of the
arbitration. However, each party shall be solely responsible for any attorneys fees such
party incurs pursuant to preparing for and participating in any such arbitration proceeding.

     13.5.4 Judgment upon the award rendered by the arbitrator(s) may be entered by any
state or federal court of North Carolina or Minnesota or other court having in personam and
subject matter jurisdiction.

     13.6 Export. Each party shall cooperate fully so that prior to exporting or reexporting any
Systems, WRT Technology or Equipment the parties will fully comply with all then current laws of
the United States including, without limitation, regulations of the United States Office of Export
Administration and other applicable U.S. governmental agencies.

     13.7 Entire Agreement; Amendments. This Agreement, together with the Ancillary Agreements
and any and all exhibits, schedules and appendices attached hereto and thereto, constitutes the
entire agreement between the parties hereto with respect to the subject matter
hereof and supersedes any and all prior and contemporaneous representations, proposals,
agreements, negotiations, advertisements, statements, or understandings, whether oral or written.
No amendment to this Agreement shall be binding on either party unless such amendment is in
writing and executed by authorized representatives of both parties to this Agreement. No
provision of this Agreement shall be deemed waived, amended, discharged or modified orally or by
custom, usage or course of conduct unless such waiver, amendment or modification is in writing and
signed by an officer of each party hereto.

15

 

     13.8 Assignment. Sealy may not assign or transfer its interests, rights or obligations
under this Agreement by written agreement, merger, consolidation, operation of law, or otherwise,
without the prior written consent of WRT, and any attempt by Sealy to assign this Agreement
without WRT’s prior written consent shall be null and void; provided, however, that Sealy shall
have the right to assign this Agreement to a successor by merger or a purchaser of all or
substantially all of its assets, if said successor or purchaser, as the case may be, agrees in
writing at or before said merger or sale to be bound by this Agreement and the Ancillary
Agreements. WRT may not assign or transfer its interests, rights or obligations under this
Agreement by written agreement, merger, consolidation, operation of law, or otherwise, including
without limitation assignment or transfer to the Backup Provider pursuant to the Backup Services
Agreement,, without the prior written consent of Sealy, and any attempt by WRT to assign this
Agreement without Sealy’s prior written consent shall be null and void; provided, however, that
WRT shall have the right to assign this Agreement to a successor by merger or a purchaser of all
or substantially all of its assets, if said successor or purchaser, as the case may be, agrees in
writing at or before said merger or sale to be bound by this Agreement and the Ancillary
Agreements.

     13.9 Compliance with Laws. WRT and Sealy each shall comply with the provisions of all
applicable federal, state, county and local laws, ordinances, regulations and codes including, but
not limited to, WRT’s and Sealy’s identification and procurement of required permits,
certificates, approvals and inspections in WRT’s and Sealy’s performance of this Agreement.

     13.10 Notice. Every notice and other communication by a party that is required or permitted
under this Agreement shall be in writing and shall be effective when and only when it has been (a)
transmitted by facsimile to the other party at the facsimile number below and also (b)
delivered in person, mailed by registered or certified mail, return receipt requested, with proper
postage affixed, or delivered by Federal Express or other commercial overnight courier to the
other party at the address set forth below:

To Sealy:

Sealy Corporation

Attn: Michael Q. Murray, Vice President — Legal Counsel and Assistant Secretary

One Office Parkway at Sealy Drive

Trinity, NC 27370

Facsimile: (336) 861-3640

To WRT:

Wireless Ronin Technologies, Inc.

Attn: John A. Witham

14700 Martin Drive

Eden Prairie, MN 55344

Facsimile: 952-974-7887

16

 

     13.11 Corporate Authority. The parties hereto represent and warrant that the persons signing
this Agreement on their behalf have been or will be duly authorized to do so prior to execution
and that this Agreement constitutes a valid and binding obligation of the parties hereto.

     13.12 Construction of Agreement. The parties hereto acknowledge and agree that this
Agreement in its final, executed form is the result of substantial negotiation and drafting by
both parties and that neither party should be favored in the construction, interpretation or
application of any provision or ambiguity of this Agreement.

     13.13 Severability. If any one or more of the provisions of this Agreement is for any reason
held invalid, illegal or unenforceable, the remaining provisions of this Agreement shall be
unimpaired.

     13.14 Counterpart Originals. This Agreement may have two or more counterpart originals
which, taken together, shall be considered one and the same document.

17

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly
authorized representatives as of the date first above written.

	 	 	 	 	 	 	 
	 	 	WIRELESS RONIN TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jeffrey C. Mack
 

	 	 
	 	 	Name: Jeffrey C. Mack	 	 
	 	 	Title: CEO/President	 	 
	 
	 	 	 	 	 	 
	 	 	SEALY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Q. Murray
 

	 	 
	 	 	Name: Michael Q. Murray	 	 
	 	 	Title: Vice President — Legal Counsel	 	 
	 

	 	 	 	  Assistant Secretary	 	 

18

 

Exhibit A

Description of Systems

	•	 	SealyTouchTM with Communications

	 	•	 	32” NEC Touch Screen Monitor (NEC #NEC3210BK w/capacitive touch screen)
	 
	 	•	 	RoninCast EX Box (HP 7600 3GHZ) with wireless communications card
	 
	 	•	 	Speaker Unit and cabling
	 
	 	•	 	Sealy Stand — with POP Display Bracket
	 
	 	•	 	Ethernet Hub and Linksys Access Point
	 
	 	•	 	VGX and USB Cabling

	•	 	SealyTouchTM without Communications

	 	•	 	32” NEC Touch Screen Monitor (NEC #NEC3210BK w/capacitive touch screen)
	 
	 	•	 	RoninCast EX Box (HP 7600 3GHZ)
	 
	 	•	 	Speaker Unit and cabling
	 
	 	•	 	Sealy Stand — with POP Display Bracket
	 
	 	•	 	VGX and USB Cabling

 

 

Exhibit B

Purchase Order

 

 

 

Schedule 1.2

Installation Sites for Beta Test

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Location Name	 	Install Date	 	Address	 	City	 	State	 	Zip
	Mattress Firm

	 	10-Apr-06
	 	10012 West FM 1960 Bypass, Unit D
	 	Humble
	 	TX
	 	 	77338	 
	Mattress Firm

	 	10-Apr-06
	 	1340 Lake Woodlands Dr, Suite B
	 	Woodlands
	 	TX
	 	 	77380	 
	Mattress Firm

	 	10-Apr-06
	 	7105 FM 1960 West
	 	Houston
	 	TX
	 	 	77069	 
	Mattress Firm

	 	10-Apr-06
	 	5000 Westheimer #320
	 	Houston
	 	TX
	 	 	77056	 
	Mattress Firm

	 	10-Apr-06
	 	5815 Gulf Freeway
	 	Houston
	 	TX
	 	 	77023	 
	Slumberland

	 	11-Apr-06
	 	2121 Frontage Rd.
	 	Waite Park
	 	MN
	 	 	56387	 
	Macy’s

	 	11-Apr-06
	 	4125 Cleveland Ave,
	 	Ft. Myers
	 	FL
	 	 	33901	 
	Macy’s

	 	11-Apr-06
	 	600 South Gate Plaza,
	 	Sarasota
	 	FL
	 	 	34329	 
	Macy’s

	 	11-Apr-06
	 	298 Westshore Plaza,
	 	Tampa
	 	FL
	 	 	33609	 
	Macy’s

	 	11-Apr-06
	 	2201 E. Fowlr Ave,
	 	Tampa
	 	FL
	 	 	33612	 
	Macy’s

	 	11-Apr-06
	 	1800 9th Street N.,
	 	Naples
	 	FL
	 	 	34102	 
	Boston/Carsons

	 	12-Apr-06
	 	3232 LAKE AVE. SUITE 330
	 	Wilmette
	 	IL
	 	 	60091	 
	Boston/Carsons

	 	12-Apr-06
	 	830 E. GOLF RD.
	 	Shaumburg
	 	IL
	 	 	60173	 
	Boston/Carsons

	 	12-Apr-06
	 	2 YORKTOWN MALL
	 	Lombard
	 	IL
	 	 	60148	 
	Slumberland

	 	12-Apr-06
	 	7801 Xerxes Ave. S.
	 	Bloomington
	 	MN
	 	 	55431	 
	Boston/Carsons

	 	12-Apr-06
	 	404 S. Route 59, Suite 128
	 	Naperville
	 	IL
	 	 	60540	 
	Slumberland

	 	12-Apr-06
	 	1755 County Rd. D
	 	Maplewood
	 	MN
	 	 	55109	 
	American TV

	 	13-Apr-06
	 	5355 NW 86th St
	 	Johnston
	 	IA
	 	 	50131	 
	American TV

	 	13-Apr-06
	 	4750 Grande Market Drive
	 	Appleton
	 	WI
	 	 	54913	 
	Boston/Carsons

	 	13-Apr-06
	 	18615 W. BLUEMOUND RD.
	 	Brookfield
	 	WI
	 	 	53045	 
	American TV

	 	13-Apr-06
	 	W229N1400 Westwood Drive
	 	Waukesha
	 	WI
	 	 	53185	 
	American TV

	 	13-Apr-06
	 	2404 W. Beltline Hwy
	 	Madison
	 	WI
	 	 	53713	 
	Slumberland

	 	13-Apr-06
	 	1536 E. Army Post Rd
	 	Des Moines
	 	IA
	 	 	50320	 

 

 

Schedule 3.1

Installation Site Preparation Procedures

SealyTouchTM Stand Unit Installation

Pre-Installation Checklist

For successful SealyTouchTM installation each retail location must adhere to the following for
implementation success:

	 	1.	 	Six weeks prior to installation, Wireless Ronin Technologies, Inc must have
complete site information. This includes the following information:

	 	a.	 	Retail chain name
	 
	 	b.	 	Shipping Address (Street, City, State, Zip Code).
	 
	 	c.	 	Store Phone Number
	 
	 	d.	 	Site Contact Information. (Mattress Department Manager)
	 
	 	e.	 	Site Contact’s Business and/or Cell Phone Number to Aid in
Receiving Shipment.

	 	2.	 	Prior to installation, Wireless Ronin Technologies, Inc requests that the
following criteria and considerations have been fulfilled:

	 	a.	 	Placement of the unit has been determined prior to our arrival
onsite.
	 
	 	b.	 	Power requirements for the unit have been met. Power
requirements are standard 110 volt dual plug 20-amp service at each location.
	 
	 	c.	 	Network requirements have been met. (Depending on retail
chain). Each DSL installation location will be required to have an operable
DSL or Cable Modem line for network communication.

	 	3.	 	During Installation, Wireless Ronin Technologies, Inc requests the following
while the SealyTouch Installer is on-site.

	 	a.	 	A clear area to assemble the SealyTouchTM unit away from high
traffic areas, loud noises, or an environment otherwise considered unsafe for
electronics. (Damp, wet, or areas affected by weather).
	 
	 	b.	 	A two hour time period for installation without interruptions.
(note: Most installations will take place in approximately 1 hour).

	 	4.	 	Upon completion of the installation, Wireless Ronin Technologies, Inc requests
the retail location has an area to dispose of empty boxes, and packaging material. The
technician will be responsible for removing trash from the store provided an area is
available.

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