Document:

EX-10.61 LEASE AGREEMENT DATED OCTOBER 1, 2006

 

EXHIBIT 10.61

INDUSTRIAL BUILDING LEASE

     1. Basic Terms:

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

	 	1.1	 	Date of Lease: October 01, 2006
	 
	 	1.2	 	Landlord: CRI Corporate Center, LLC, a Florida limited liability company
	 
	 	1.3	 	Tenant: SED International, Inc.
	 
	 	1.4	 	Premises: Approximately 2,400 rentable square feet included in
the Improvements (as defined in Exhibit “A” hereto).
	 
	 	1.5	 	Property: See Exhibit “A”.
	 
	 	1.6	 	Lease Term: NINETEEN ( 19 ) months (“Term”),
commencing October 1, 2006 (“Commencement Date”) and ending
April 30, 2008, subject to Section 2.3 below
(“Expiration Date”).
	 
	 	1.7	 	Permitted Uses: Computers ELECTRONIC EQUIP. SALES AND DISTRIBUTION
	 
	 	1.8	 	Tenant’s Guarantor: (if none, so state): None
	 
	 	1.9	 	Brokers: (See Section 23; if none, so state)

	 	(A)	 	Tenant’s Broker: None
	 
	 	(B)	 	Landlord’s Broker: PRLM, Inc. — Pauline A. Pappas

	 	1.10	 	Security/Damage Deposit: (See Section 4.4) $2,500.00
	 
	 	1.11	 	Vehicle Parking Ratio Allocated Tenant: (See Section 4) 2.2
spaces: 1,000 square feet leased.
	 
	 	1.12	 	Initial year, monthly base rent (Sec Section 2.2): $1,500.00
	 
	 	1.13	 	Initial Estimated Additional Rent Payable by Tenant (Sec
Section 3): $556.00 per
month
	 
	 	1.14	 	Tenant’s Proportionate Share: 2.23%
	 
	 	1.15	 	Exhibits to Lease: The following exhibits are attached to and made a part
of this Lease.

	 	(1)	 	Exhibit “A,” Description of Property.
	 
	 	(2)	 	Exhibit “B,” Landlord’s Repairs and Improvements
	 
	 	(3)	 	Exhibit “C,” Broom Clean Condition and Repair Requirements
	 
	 	(4)	 	Exhibit “D,” Notice Regarding Mechanic Liens

 

 

     2. Lease Of Premises; Rent.

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

          2.2 Types of Rental Payments. Tenant shall pay net base rent to Landlord in
monthly installments, in advance, on the first
(1st) day of each and every calendar
month during the Term of this Lease (the “Base Rent”) in the amounts and for the periods set
forth below:

	 	 	 	 	 
	Lease Period	 	Monthly Base Rent
	October 1, 2006 — October 31, 2006
	 	$-0- Additional rent due and payable ($2.78 sf)
	 
	 	 	 	 
	November 1,
2006 — September 30, 2007
	 	$	1,500.00	 

     The
Base Rent escalates $0.50 per square foot for every twelve-consecutive month period during
the Term over the Base Rent prevailing in the immediately preceding twelve-consecutive month period
as follows:

	 	 	 	 	 
	Lease Period	 	Monthly Base Rent
	October 1, 2007 — April 30, 2008
	 	$	1,600.00	 

     Tenant shall also pay Tenant’s Proportionate Share (as set forth in Section 1.14) of
Operating Expenses (as hereinafter defined under Section 3) and any other amounts owed by Tenant
hereunder (collectively, “Additional Rent”). In the event any monthly installment of Base Rent or
Additional Rent, or both, is not paid within five (5) days of the date when due, a late charge in
an amount equal to five percent (5%) of the then-delinquent installment of Base Rent and/or
Additional Rent (the “Late Charge”), [the Late Charge, Default Rate (as defined in Section 22.3
below). Base Rent and Additional Rent shall collectively be referred to as “Rent”)] to Landlord,
c/o PRLM. Inc. P.O. Box 48547, St. Petersburg, Florida 33743-8547 (or such other entity
designated as Landlord’s management agent (the “Agent”), or pursuant to such other directions as
Landlord shall designate in this Lease or otherwise in writing.

          2.3 Covenants Concerning Rental Payments. Tenant shall pay all Rent promptly when
due, without notice or demand, and without any abatement, deduction
or setoff, except as may
otherwise be expressly and specifically provided in this Lease. No payment by Tenant, or receipt
or acceptance by Agent or Landlord, of a lesser amount than the correct Rent shall be deemed to be
other than a payment on account, nor shall any endorsement or statement on any check or letter
accompanying any payment be deemed an accord or satisfaction, and Agent or Landlord may accept
such payment without prejudice to its rights or remedies. If the Commencement Date occurs on a day
other than the first (1 st) day of a calendar month, the Rent due for the first
(1st) calendar month of the Term shall be prorated on a per diem basis and paid to
Landlord on the Commencement Date, and the Term will be extended to terminate on the last day of
the calendar month in which the Expiration Date stated in Section 1.6 occurs.

3. Operating Expenses.

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

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

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

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

          3.2 Payment of Additional Rent. Landlord shall have the right to reasonably estimate
the Operating Expenses for each Operating Year. Upon Landlord’s or Agent’s notice to Tenant of
such estimated amount. Tenant shall pay, on the first (1st) day of each month during
that Operating Year, an amount (the “Estimated Additional Rent”) equal to the estimate of the
Tenant’s Proportionate Share of Operating Expenses divided by twelve (12) (or the fractional
portion of the Operating Year remaining at the time Landlord delivers its notice of the estimated
amounts due from Tenant for that Operating Year). If the aggregate amount of Estimated Additional
Rent actually paid by Tenant during any Operating Year is less than Tenant’s actual ultimate
liability for Operating Expenses for that particular Operating Year, Tenant shall pay the
deficiency within thirty (30) days of Landlord’s written demand therefor. If the aggregate amount
of Estimated Additional Rent actually paid by Tenant during a given Operating Year exceeds
Tenant’s actual liability for such Operating Year, the excess shall be

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credited against the Estimated Additional Rent next due from Tenant during the immediately
subsequent Operating Year, except that in the event that such excess is paid by Tenant during the
final Lease Year, then upon the expiration of the Term, Landlord or Agent shall pay Tenant the
then-applicable excess promptly after determination thereof.

     4. Use Of Premises And Common Areas: Security/Damage Deposit.

          4.1
Use of Premises and Property. The Premises shall be used solely by the
Tenant for the purpose(s) set forth in Section 1.7 above and for no other purpose whatsoever.

          4.2 Use of Common Areas.
 As used herein, “Common Areas” shall mean all areas
within the Property that are available for the common use of tenants of the Property and that are
not leased or held for the exclusive use of Tenant or other tenants or licensees, including, but
not limited to, parking areas, driveways, sidewalks, loading areas, access roads, corridors,
landscaping and planted areas. Tenant shall have the nonexclusive right to use the Common Areas
for the purposes intended, subject to such reasonable rules and regulations as Landlord may
uniformly establish from time to time. Tenant shall not interfere with the rights of any or all
of Landlord, other tenants or licensees, or any other person entitled to use the Common Areas.
Landlord, from time to time, may change any or all of the size, location, nature and use of any of
the Common Areas so long as such changes do not materially and adversely affect Tenant’s use of
the Premises. Landlord may, at any time, close or suspend access to any Common Areas to perform
any acts in the Common Areas as, in Landlord’s reasonable judgment,  desirable to improve,
maintain or repair either or both of the Premises and the Property.

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

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

          4.5 Parking.
Tenant and Tenant’s employees, agents and invitees (hereinafter
referred to as “Tenant’s Affiliates”) shall be entitled to utilize only the amount of parking
spaces as is consistent with the size of the Premises and the overall ratio of parking spaces to
leasable space provided in the Property, as given in Section 1.11. Neither Tenant nor Tenant’s
Affiliates shall with their vehicles block parking areas or hinder
normal traffic flow within the
Property. Violation of this paragraph by Tenant or Tenant’s Affiliates shall be a default under
this Lease. The Landlord reserves the right to

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control
the method, manner and time of, however, Landlord shall not be responsible for policing,
such parking. Tenant hereby agrees and acknowledges that the Vehicle Parking Ratio Allocated
Tenant pursuant to Section 1.11 hereof is not a guaranty that specific spaces or the number of
spaces will be available at all times. Tenant acknowledges that the Property is a multi-use
project occupied by various tenants which share the parking spaces located on the Property and is
accessible by customers and invitees of all tenants.

     5. Condition And Delivery Of Premises.

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

          5.2 Delay in Commencement. Landlord shall not be liable to Tenant if Landlord does
not deliver possession of the Premises to Tenant on the Commencement Date. The obligations of
Tenant under the Lease shall not be affected thereby, except that the Commencement Date shall be
delayed until Landlord delivers possession of the Premises to Tenant, and the Lease Term shall be
extended by a period equal to the number of days of delay in delivery of possession of the
Premises to Tenant, plus the number of days necessary to end the Lease Term on the last day of a
month. In the event Landlord is required by local governmental authority to obtain building
permits to perform the Landlord Work Items, the date of delivery of the Premises by Landlord shall
be deemed the day following the date upon which the Landlord receives from such authority: (a)
the Certificate of Occupancy (temporary or permanent) for the Premises, or (b) all final
inspections pertaining to the Landlord Work Items, or (c) other consent as deemed adequate by
Landlord. Tenant shall not occupy the Premises in any manner until one of such consents is
obtained.

     6. Subordination:
Notices To Superior Lessors And Mortgagees; Attornment.

          6.1 Subordination. This Lease shall be subject and subordinate at all times to
(a) any mortgage that may now exist or hereafter be placed upon, and encumber, any or all of the
Property. Tenant shall execute and deliver, within seven (7) days after delivery thereof by
Landlord, and in the form requested by Landlord, any additional documents evidencing the
subordination of this Lease with respect to any such mortgage or deed of trust. Failure by
Tenant to timely execute and deliver such documents constitutes an acceptance of the terms of such
documents, and Tenant hereby appoints Landlord as its attorney-in-fact to execute such documents
on Tenant’s behalf.

          6.2 Estoppel Certificate. Tenant agrees, from time to time and within seven (7) days
after request by Landlord, to deliver to Landlord, or Landlord’s designee, an estoppel certificate
stating such matters pertaining to this Lease as may be requested by Landlord. Failure by Tenant
to timely execute and deliver such certificate shall constitute an acceptance of the Premises and
acknowledgment by Tenant that the statements included therein are true and correct without
exception. Landlord and Tenant intend that any statement delivered pursuant to this Section may
be relied upon by any prospective purchaser or mortgagee of the Property or of any interest
therein or any other Landlord designee.

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

     7. Quiet Enjoyment.

          Subject to the provisions of this Lease, so long as Tenant pays all of the Rent and
performs all of its other obligations hereunder, Tenant shall not be disturbed in its possession
of the Premises by Landlord. Agent or any other person lawfully claiming through or under
Landlord; provided, however, in addition to Landlord’s rights under Section 16 and elsewhere in
this Lease, Landlord and Landlord’s agents, employees, contractors and representatives shall be
provided reasonable access to the Premises such that Landlord and Landlord’s agents, employees,
contractors and representatives may perform the General Maintenance Services (as hereinafter
defined) without undue interruption, delay or hindrance. This covenant shall be construed as a
covenant running with the Property and is not a personal covenant of Landlord.

     8. Assignment, Subletting And Mortgaging.

          8.1 Prohibition. Tenant acknowledges that this Lease and the Rent due under
this Lease have been agreed to by Landlord in reliance upon Tenant’s reputation and
creditworthiness and upon the continued operation of the Premises by Tenant for the particular use
described in Section 1.7 above; therefore, Tenant shall not, whether voluntarily, or by operation
of law, or otherwise: (a) assign or otherwise transfer this Lease; (b) sublet the Premises or any
part thereof, or allow the same to be used or occupied by anyone other than Tenant; or (c)
mortgage, pledge, encumber, or otherwise hypothecate this Lease or the Premises, or any part
thereof, in any manner whatsoever, without in each instance obtaining the prior written consent of
Landlord, which consent may be given or withheld in Landlord’s absolute and sole discretion. Any
purported assignment, mortgage, transfer, pledge or sublease made without the prior written
consent of Landlord, shall be absolutely null and void. Any consent by Landlord to a particular
assignment, sublease or mortgage shall not constitute consent or approval of any subsequent
assignment, sublease or mortgage. No consent by Landlord to any assignment or sublease shall be
deemed to release Tenant from its obligations hereunder and Tenant shall remain fully liable for
performance of all obligations under this Lease.

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

          8.3 Transfers. The provisions of Section 8.1 (a) shall apply to a transfer of a
majority (i.e., greater than fifty percent (50%) interest) of the voting stock of Tenant or to any
other change in voting control of Tenant (if Tenant is a corporation), or to a transfer of a
majority of the general partnership or membership interests in Tenant (if Tenant is a partnership
or a limited liability company) or to a change in the managerial control of Tenant, or to any
comparable transaction involving any other

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form of business entity, whether effectuated in one or more transactions, as if such transfer were
an assignment of this Lease.

     9. Compliance With Laws.

          9.1 Compliance with Laws. Tenant shall, at its sole expense (regardless of the
cost thereof), comply with all local, state and federal laws, rules, regulations and requirements
now or hereafter in force and all judicial and administrative decisions in connection with the
enforcement thereof (collectively. “Laws”), pertaining to either or both of the Premises and
Tenant’s use and occupancy thereof. Tenant shall give prompt notice to Landlord of any written
notice it receives of the alleged violation of any Law or requirement of any governmental or
administrative authority with respect to either or both of the Premises and the use or occupation
thereof.

          9.2 Hazardous Materials. Tenant shall not generate, transport, store, use, treat or
dispose any Hazardous Material (defined below) at, to, from, on or in either or both of the
Premises and the Property by, or as a result of any act or omission of, any or all of Tenant and
any or all of Tenant’s Parties (defined below). Tenant shall, at its own cost, at all times comply
(and cause all others to comply) with all laws (federal, state or local) relating to Hazardous
Materials, including, but not limited to, all Environmental Laws (defined below). Tenant shall
promptly provide Landlord or Agent with complete copies of all communications, permits or
agreements with, from or issued by any governmental authority or agency (federal, state or local)
or any private entity relating in any way to the presence, release, threat of release, or
placement of Hazardous Materials on or in the Premises or any portion of the Property, or the
generation, transportation, storage, use, treatment, or disposal at, on, in or from the Premises,
of any Hazardous Materials. Landlord, Agent and their respective agents and employees shall have
the right to either or both (x) enter the Premises and (y) conduct appropriate tests for the
purposes of ascertaining Tenant’s compliance with all applicable laws (including Environmental
Laws), rules or permits relating in any way to the generation, transport, storage, use, treatment,
disposal or presence of Hazardous Materials on, at, in or from all or any portion of either or
both of the Premises and the Property. Upon written request by Landlord or Agent. Tenant shall
provide Landlord with the results of reasonably appropriate tests of air, water or soil to
demonstrate that Tenant complies with all applicable laws, rules or permits relating in any way to
the generation, transport, storage, use, treatment, disposal or presence of Hazardous Materials
on, at, in or from all or any portion of either or both of the Premises and the Property. Tenant
covenants to investigate, clean up and otherwise remediate, at Tenant’s sole expense, any release
of Hazardous Materials caused, contributed to, or created by any or all of (A) Tenant and (B) any
or all of Tenant’s officers, directors, members, managers, partners, invitees, agents, employees,
contractors or representatives (“Tenant Parties”) during the Term. Such investigation and
remediation shall be performed only after Tenant has obtained Landlord’s prior written consent;
provided, however, that Tenant shall be entitled to respond immediately to an emergency without
first obtaining such consent. All remediation shall be performed in strict compliance with
Environmental Laws and to the reasonable satisfaction of Landlord. Tenant shall be liable for
any and all conditions covered hereby, and for all costs relating thereto, that are caused or
created by any or all of Tenant and any or all of Tenant’s Parties. Tenant shall not enter into
any settlement agreement, consent decree or other compromise with respect to any claims relating
to any Hazardous Materials in any way connected to the Premises without first obtaining Landlord’s
written consent (which consent may be given or withheld in Landlord’s sole discretion and
affording Landlord the reasonable opportunity to participate in any such proceedings.) As used
herein, the term (x) “Environmental Laws” shall mean any and all laws pertaining to Hazardous
Materials or that otherwise deal with, or relate to, air or water quality, air emissions, soil or
ground conditions or other environmental matters of any kind: and (y) “Hazardous Materials” shall
mean any waste, material or substance (whether in the form of liquids, solids or gases, and
whether or not airborne) that is or may be deemed to be or include a pesticide, petroleum,
asbestos, polychlorinated biphenyl, radioactive material, area formaldehyde or any other pollutant
or contaminant that is or may be deemed to

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be hazardous, toxic, ignitable, reactive, corrosive, dangerous, harmful or injurious, or that
presents a risk to public health or to the environment, and that is or becomes regulated by any
Environmental Law. The undertakings, covenants and obligations imposed on Tenant under this
Section 9.2 shall survive the termination or expiration of this Lease.

     10. Insurance.

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

          10.2 Insurance to be Maintained by Tenant. Tenant shall purchase, at its own
expense, and keep in force at all times during this Lease the policies of insurance set forth below
in Sections 10.2.1 and 10.2.2 (collectively, “Tenant’s Policies”). All Tenant’s Policies shall (a)
be issued by an insurance company with a Best rating of A-X or better and otherwise reasonably
acceptable to Landlord and shall be licensed to do business in the state in which the Property is
located; (b) provide that said insurance shall not be cancelled or materially modified unless
thirty (30) days’ prior written notice shall have been given to Landlord; and (c) otherwise be in
such form, and include such coverages, as Landlord may reasonably require. All Tenant’s
Policies (or, at Landlord’s option, Certificates of Insurance, in a form reasonably acceptable to
Landlord, evidencing said Tenant’s Policies), shall be delivered to Landlord by Tenant prior to
commencement of the Lease and renewals thereof shall be delivered at least thirty (30) days prior
to the expiration of each Tenant’s Policy. Tenant shall give prompt notice to Landlord and Agent
of any bodily injury, death, personal injury, advertising injury or property damage occurring in
and about the Property.

          10.2.1 General Liability and Auto Insurance. Tenant shall purchase and maintain,
throughout the Term, a Tenant’s Policy(ies) of (i) commercial general or excess liability
insurance, including personal injury and property damage, in the amount of not less than
$2,000,000,00 per occurrence, and $5,000,000,00 annual general aggregate, per location: (ii)
comprehensive automobile liability insurance covering Tenant against any losses arising out of
liability for personal injuries or deaths of persons and property damage occurring in or about the
Premises in the amount of not less than $1,000,000, combined single limit. The Tenant’s Policies
required by this Section 10.2.1 shall (a) name Landlord, Agent, and any party holding an interest
to which this Lease may be subordinated as additional insureds: (b) provide coverage on an
occurrence basis; (c) provide coverage for the indemnity obligations of Tenant under this Lease:
(d) contain a severability of insured parties provision and/or a cross liability endorsement: (e)
be primary, not contributing with, and not in excess of, coverage that Landlord may carry; and (f)
provide coverage with no exclusion for a pollution incident arising from a hostile fire.

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

          10.3 Waiver of Subrogation. To the extent permitted by law, and without
affecting the coverage provided by insurance required to be maintained hereunder. Landlord and
Tenant each

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

     11.  Alterations.

          11.1 Procedural Requirements. Tenant may, from time to time, at is expense, make
alterations or improvements in and to the Premises (hereinafter collectively referred to as
“Alterations”), provided that Tenant first obtains the written consent of Landlord in each
instance which may be withheld in Landlord’s sole and absolute discretion. Before proceeding
with any Alterations, Tenant shall (i) at Tenant’s expense, obtain all necessary governmental
permits and certificates for the commencement and prosecution of Alterations; (ii) submit to
Agent, for Landlord’s written approval, working drawings, plans and specifications and all permits
for the work to be done and Tenant shall not proceed with such Alterations until it has received
said approval; and (iii) cause those contractors, materialmen and suppliers engage to perform the
Alterations to deliver to Landlord certificates of insurance (in a form reasonably acceptable to
Landlord) evidencing policies of commercial general liability insurance (providing the same
coverages as required in Section 10.2.1 above) and workers’ compensation insurance. After
obtaining Landlord’s approval to the Alterations, Tenant shall give Landlord at least five (5)
days’ prior written notice of the commencement of any Alterations at the Premises, and Landlord
may elect to record and post notices of non-responsibility at the Premises.

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

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

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loss, damage, costs or expense, including attorney’s fees and costs of discovery and suit, on
account of claims of liens of laborers or materialmen or others for Alterations performed for, or
materials supplies furnished to, Tenant or persons claiming under Tenant.

          The language of this provision shall be binding upon the Landlord, its successors and
assigns, and the heirs, assignees, administrators, legal representatives, executors or successors
of the Tenant.

          THE INTEREST OF THE LANDLORD IN THE PREMISES AND THE PROPERTY SHALL NOT, UNDER ANY
CIRCUMSTANCES, BE SUBJECT TO LIENS FOR ALTERATIONS MADE BY THE TENANT OR ANY OTHER ACT OF TENANT.

          If a memorandum of this Lease or a Notice of Commencement by Tenant is recorded, a notice
concerning this provision of this Lease will be executed by Landlord and recorded with the clerk
of the Court of the County named in Section 1.3. This Notice reads as set forth on Exhibit D.

     12. Landlord’s And Tenant’s Property.

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

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

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     13. Repairs And Maintenance.

          13.1 Tenant Repairs and Maintenance. Tenant shall, at its expense, throughout the
Term, (i) maintain and preserve, in first-class condition (subject to normal and customary wear and
tear), the Premises and the fixtures and appurtenances therein (including, but not limited to, the
Premises’ plumbing and HVAC systems, all doors, overhead or otherwise, glass and levelers located
in the Premises or otherwise available in the Property for Tenant’s sole use; and excluding,
however, those components of the Premises for which Landlord is expressly responsible under Section
13.2); and (ii) maintain, in full force and effect, a preventative maintenance and service contract
with a reputable service provider for maintenance of the HVAC systems of the Premises (a copy of
which service agreement shall be provided to Landlord within ten (10) days after the Commencement
Date). Tenant shall also be responsible for all cost and expenses incurred to perform any and all
repairs and replacements (whether structural or nonstructural; interior or exterior; and ordinary
or extraordinary), in and to the Premises and the Property and the facilities and systems thereof,
if and to the extent that the need for such repairs or replacements arises directly or indirectly
from any or all of: (a) the performance or existence of any Alterations, (b) the installation, use
or operation of Tenant’s Property in the Premises, (c) the moving of Tenant’s Property in or out of
the Property, and (d) any act, omission, misuse, or neglect of Tenant, any of its subtenants, or
others entering into the Premises by act or omission of Tenant or any subtenant. Without limiting
the generality of the foregoing. Tenant, at its expense, shall promptly replace or repair all
scratched, damaged, or broken doors and glass and floor coverings in and about the Premises, and
replace and properly dispose of all light bulbs in the Premises and repair and maintain all
plumbing and electrical fixtures therein. Any repairs or replacements required to be made by Tenant
to any or all of the structural components of the Property and the mechanical, electrical,
sanitary, HVAC, or other systems of the Property or Premises shall be performed by appropriately
licensed contractors approved by Landlord, which approval shall not be unreasonably withheld. All
such repairs or replacements shall be subject to the supervision and control of Landlord, and all
repairs and replacements shall be made with materials of equal or better quality than the items
being repaired or replaced. Notwithstanding any of the foregoing, however, from time to time during
the Term, Landlord may elect, in its sole discretion and by delivery of written notice to Tenant,
to perform on behalf of Tenant, all or some portion of the repairs, maintenance, restoration and
replacement in and to the Premises required to be performed by Tenant under this Lease (any such
repairs, maintenance, restoration and/or replacement activities that Landlord elects to perform on
behalf of Tenant are herein collectively referred to as “General Maintenance Services”). Tenant
shall reimburse Landlord for the cost or value of all General Maintenance Services provided by
Landlord as Additional Rent simultaneously with the payment of Operating Expenses as part of
Estimated Additional Rent (on a monthly estimated basis subject to annual reconciliation as
described in Section 3.2 above). Unless and until Landlord affirmatively elects to provide General
Maintenance Services, nothing contained herein shall be construed to obligate Landlord to perform
any General Maintenance Services or, except as otherwise expressly provided in Section 13.2. to
repair, maintain, restore or replace any portion of the Premises. Landlord may, from time to time,
in its sole discretion, (x) reduce or expand the scope of the General Maintenance Services that
Landlord has elected to provide or (y) revoke its election to provide any or all of the General
Maintenance Services, in either event, upon delivery of not less than thirty (30) days’ prior
written notice to Tenant. If Landlord does not elect to repair, maintain and/or replace the HVAC
systems as part of General Maintenance Services, or revokes such election at any time after having
made such election. Tenant shall enter into a preventative maintenance and service contract with a
reputable service provider for maintenance of the HVAC systems of the Premises, a copy of which
agreement shall be provided to Landlord. Tenant shall not be liable for replacement of any hvac system during
the first 12 months of this agreement.

          13.2 Landlord Repairs. Notwithstanding anything contrary herein, Landlord shall
repair, replace and restore the foundation, exterior and interior load-bearing walls, roof
structure and roof covering and tuckpointing of the Property; provided, however, that (i) all
costs and expenses so incurred by Landlord to repair, replace and restore the above items
shall constitute Operating Expenses; provided.

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however, that with respect to any costs incurred in the replacement context, those costs shall not
constitute an Operating Expense except to the extent that such costs so qualify under Section
3.l.l(vii); and (ii) notwithstanding (i) above, in the event that any such repair, replacement or
restoration is necessitated by any or all of the matters set forth in Sections 13.1 (a) through (d)
above (collectively, “Tenant Necessitated Repairs”), then Tenant shall be required to reimburse
Landlord for all costs and expenses that Landlord incurs in order to perform such Tenant
Necessitated Repairs, and such reimbursement shall be paid, in full, within ten (10) days after
Landlord’s delivery of demand therefor. Landlord agrees to commence the repairs, replacements or
restoration described in this Section 13.2 within a reasonable period of time after receiving from
Tenant written notice of the need for such repairs.

     14. Utilities.

          Tenant shall purchase all utility services from the utility or municipality providing
such service: shall provide for cleaning and extermination services; and shall pay for such
services when payments are due. Tenant shall be solely responsible for the repair and maintenance
of any meters necessary in connection with such services. Tenant’s use of electrical energy in
the Premises shall not, at any time, exceed the capacity of either or both of (i) any of the
electrical conductors and equipment in or otherwise servicing the
Premises'and (ii) the HVAC systems of either or both of the Premises and the Property. Tenant shall be responsible for the
cost of collection and removal of trash from the Premises whether, at Landlord’s option. Tenant
purchases such services directly or Landlord arranges for same.
Landlord may, if Landlord so
elects, install re-registering meters at the Premises and collect from Tenant, as Additional Rent,
any and all charges for utilities so metered, at a cost no greater to Tenant than would be
incurred should the local utility company or governmental unit have furnished such utilities
directly to the Premises.

     15. Involuntary
Cessation of Services.

          Tenant hereby agrees that Landlord or Agent shall have no liability or responsibility
for a cessation of services to the Premises or to the Property that occurs as a result of causes
beyond Landlord’s or Agent’s reasonable control. No such interruption of service shall be deemed
an eviction (constructive or otherwise) or disturbance of Tenant’s use and possession of the
Premises or any part thereof, or render Landlord or Agent liable to Tenant for damages, or relieve
Tenant from performance of Tenant’s obligations under this Lease, including, but not limited to,
the obligation to pay Rent.

     16. Landlord’s Rights.

          Landlord, Agent and their respective agents, employees and representatives shall have
the right to enter and/or pass through the Premises at any time or times upon reasonable prior
notice (except in the event of emergency): (a) to examine and inspect the Premises and to show
them to actual and prospective lenders, prospective purchasers or mortgagees of the Property or
providers of capital to Landlord and its affiliates: and (b) to make such repairs, alterations,
additions and improvements in or to all or any portion of either or both of the Premises and
Property, or the Property’s facilities and equipment as Landlord is required or desires to make.
Landlord and Agent shall be allowed to take all materials into and upon the Premises that may be
required in connection with any repairs, alterations, additions or improvements, without any
liability to Tenant and without any reduction or modification of Tenant’s covenants and
obligations hereunder: provided, however, that Landlord shall use reasonable efforts to limit
interference with Tenant’s business operations and Tenant’s occupancy and use of the Premises.
During the period of six (6) months prior to the Expiration Date (or at any time, if Tenant has
vacated or abandoned the Premises or is otherwise in default under this Lease), Landlord and its
agents may exhibit the Premises to prospective tenants. If Tenant shall not be personally present
to permit an entry into Premises when for any reason an entry therein shall be permissible.
Landlord may enter the same by a

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master key or by the use of force without rendering Landlord liable therefore and without in any
manner affecting Tenant’s obligations under this Lease. Additionally, Landlord and Agent shall
have the following rights with respect to the Premises, exercisable without notice to Tenant,
without liability to Tenant, and without being deemed an eviction or disturbance of Tenant’s use
or possession of the Premises or giving rise to any claim for setoff or abatement of Rent: (i) to
designate and approve, prior to installation, all types of signs; (ii) to have pass keys, access
cards, or both, to the Premises; (iii) to decorate, remodel, repair, alter or otherwise prepare
the Premises for reoccupancy at any time after Tenant vacates or abandons the Premises for more
than thirty (30) consecutive days or without notice to Landlord of Tenant’s intention to reoccupy
the Premises; and (iv) to install “For Lease” signs in or upon the Premises beginning one hundred
eighty (180) days prior to the end of the Term. Landlord shall have no obligation to provide any
security service or alarms to the Property or the Premises; any such security service or alarms
deemed necessary by the Tenant shall be purchased directly by Tenant.

     17. 
Non-Liability And Indemnification.

          17.1 Non-Liability. None of Landlord, Agent, any other managing agent, or their
respective affiliates, owners, partners, directors, officers, agents and employees shall be liable
to Tenant for any loss, injury, or damage, to Tenant or to any other person, or to its or their
property, irrespective of the cause of such injury, damage or loss. Further, none of Landlord,
Agent, any other managing agent, or their respective affiliates, owners, partners, directors,
officers, agents and employees shall be liable to Tenant (a) for any damage caused by other
tenants or persons in, upon or about the Property, or caused by operations in construction of any
public or quasi-public work; (b) with respect to matters for which Landlord is liable, for
consequential or indirect damages purportedly arising out of any loss of use of the Premises or
any equipment or facilities therein by Tenant or any person claiming through or under Tenant; (c)
any defect in the Premises or the Property; (d) injury or damage to person or property caused by
fire, or theft, or resulting from the operation of heating or air-conditioning or light apparatus,
or from falling plaster, or from steam, gas, electricity, water, rain, snow, ice or dampness, that
may leak or flow from any part of the Property, or from the pipes, appliances or plumbing work of
the same.

          17.2 Tenant Indemnification. Tenant hereby indemnifies, defends, and
holds Landlord, Agent and their respective affiliates, owners, partners, directors, officers,
agents and employees (collectively, “Landlord Indemnified Parties”) harmless from and against any
and all Losses (defined below) arising from or in connection with any
or all of; (a) the conduct
or management of either or both the Property and the Premises or any business therein, or any work
or Alterations done, or any condition created by any or all of Tenant and Tenant’s Parties in or
about the Premises during the Term or during the period of time, if any, prior to the Commencement
Date that Tenant is given access to the Premises; (b) any act, omission or negligence of any or
all of Tenant and Tenant’s Parties; (c) any accident, injury or damage whatsoever (unless caused
by Landlord’s negligence) occurring in, at or upon either or both of the Property and the Premises
and caused by any or all of Tenant and Tenant’s Parties; (d) any breach by Tenant of any of its
warranties and representations under this Lease: (e) any actions necessary to protect Landlord’s
interest under this Lease in a bankruptcy proceeding or other proceeding under the Bankruptcy
Code; (f) any violation or alleged violation by any or all of Tenant and Tenant’s Parties of any
Law including, without limitation, any Environmental Law, (g) any breach of the provisions of
Section 9 by any or all of Tenant and Tenant’s Parties; (h) claims for work or labor performed or
materials supplies furnished to or at the request of any or all of Tenant and Tenant’s Parties;
(i) claims arising from any breach or default on the part of Tenant in the performance of any
covenant contained in this Lease: (j) any Hazardous Materials used, exposed, emitted,
released, discharged, generated, manufactured, sold, transported, handled, stored, treated,
reused, presented, disposed of or recycled in, at, near or under all or any portion of the
Premises as a result of the acts or omissions of any or all of Tenant and Tenant’s Parties
(collectively, “Tenant’s Indemnified Matters”). In case any action or proceeding is brought
against any or all of Landlord and the Landlord Indemnified Parties by reason of any of Tenant’s

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Indemnified
Matters. Tenant, upon notice from any or all of Landlord, Agent or any Superior Party
(defined below), shall resist and defend such action or proceeding by counsel reasonably
satisfactory to, or selected by, Landlord. The term “Losses” shall mean all claims, demands,
expenses, actions,
judgments, damages (actual, but not consequential), penalties, fines, liabilities, losses of every
kind and nature (including, without limitation, property damage, diminution in value of Landlord’s
interest in the Premises or the Property, damages for the loss or restriction on use of any space
or amenity within the Premises or the Property, damages arising from any adverse impact on
marketing space in the Property, sums paid in settlement of claims and any costs and expenses
associated with injury, illness or death to or of any person), suits, administrative proceedings,
costs and fees, including, without limitation, attorneys’ and consultants’ reasonable fees and
expenses, and the costs of cleanup, remediation, removal and restoration, that are in any way
related to any matter covered by the foregoing indemnity. The provisions of this Section 17.2
shall survive the expiration or termination of this Lease.

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

     18. Damage Or Destruction.

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

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

          18.3 Total Destruction. If the Property or the Premises shall be totally destroyed
by fire or other casualty, or if the Property shall be so damaged by fire or other casualty that
(in the reasonable opinion of a reputable contractor or architect designated by Landlord): (i)
its repair or

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restoration requires more than one hundred eighty (180) days or (ii) such repair or restoration
requires the expenditure of more than fifty percent (50%) of the full insurable value of the
Property immediately prior to the casualty or (iii) the damage (x) is less than the amount stated
in (ii) above, but more than ten percent (10%) of the full insurable value of the Property: and (y)
occurs during the last two (2) years of Lease Term. Landlord and Tenant shall each have the option
to terminate this Lease (by so advising the other, in writing) within ten (10) days after said
contractor or architect delivers written notice of its
opinion to Landlord and Tenant, but in all events prior to the commencement of any restoration of
the Premises or the Property by Landlord. In such event, the termination shall be effective as of
the date upon which either Landlord or Tenant, as the case may be, receives timely written notice
from the other terminating this Lease pursuant to the preceding sentence. If neither Landlord nor
Tenant timely delivers a termination notice, this Lease shall remain in full force and effect.
Notwithstanding the foregoing, if (A) any holder of a mortgage encumbering the Property
(collectively, “Superior Parties”) or other party entitled to the insurance proceeds fails to make
such proceeds available to Landlord in an amount sufficient for restoration of the Premises or the
Property, or (B) the issuer of any casualty insurance policies on the Property fails to make
available to Landlord sufficient proceeds for restoration of the Premises or the Property, then
Landlord may, at Landlord’s sole option, terminate this Lease by giving Tenant written notice to
such effect within thirty (30) days after Landlord receives notice from the Superior Party or
insurance company, as the case may be, that such proceeds shall not be made available, in which
event the termination of this Lease shall be effective as of the date Tenant receives written
notice from Landlord of Landlord’s election to terminate this Lease. Landlord shall have no
liability to Tenant, and Tenant shall not be entitled to terminate this Lease by virtue of any
delays in completion of repairs and restoration. For purposes of this Section 18.3 only, “full
insurable value” shall mean replacement cost, less the cost of footings, foundations and other
structures below grade.

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

     19. Eminent Domain.

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

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     20. Surrender And Holdover.

          On the last day of the Term or upon any earlier termination of this Lease, or upon any
reentry by Landlord upon the Premises, (a) Tenant shall quit and surrender the Premises to Landlord
“broom-clean” and in good order, condition and repair (as defined by Exhibit “C”. attached hereto
and incorporated herein by reference), except for ordinary wear and tear and such damage or
destruction as Landlord is required to repair or restore under this Lease, (b) Tenant shall remove
all of Tenant’s Property therefrom, except as otherwise expressly provided in this Lease, and (c)
Tenant shall surrender to Landlord any and all keys, access cards, computer codes or any other
items used to access the Premises. If any repairs are required to be
performed in, to or at the
Premises upon the expiration or termination of the Term, Tenant shall cause such repairs to be
performed, to Landlord’s reasonable satisfaction, within ten (10) business days after the date on
which this Lease is terminated or expired. If Tenant fails to timely comply with the preceding
sentence, then Landlord shall have the right to cause the repairs to be performed, at Tenant’s
expense and all such expenses so incurred by Landlord shall bear interest at the Default Rate
(defined hereinafter) from the date the expense is incurred until the date paid, in full, by
Tenant. If Tenant remains in possession after the Expiration Date hereof or alter any earlier
termination date of this Lease or of Tenant’s right to possession: (i) Tenant shall be deemed a
holdover tenant-at-will; (ii) Tenant shall pay two hundred percent (200%) of the aggregate of the
Base Rent and Additional Rent last prevailing hereunder, and also shall pay all actual damages
sustained by Landlord, directly by reason of Tenant’s remaining in possession after the expiration
or termination of this Lease: (iii) there shall be no renewal or extension of this Lease by
operation of law: and (iv) the tenancy-at-will may be terminate by either party hereto upon fifteen
(15) days’ prior written notice given by the terminating party to the non-terminating party. The
provisions of this Section 20 shall not constitute a waiver by Landlord of any reentry rights of
Landlord provided hereunder or by law. The obligations imposed under this Section 20 shall survive
the termination or expiration of this Lease.

     21. Events
of Default.

          It shall be a default by Tenant under this Lease if Tenant: (a) makes an assignment for
the benefit of creditors, or files a voluntary petition under any state or federal bankruptcy or
insolvency law, or an involuntary petition alleging an act of bankruptcy or insolvency is filed
against Tenant under any state or federal bankruptcy or insolvency law that is not dismissed
within ninety (90) days, or whenever a petition is filed by or against (to the extent not
dismissed within ninety (90) days) Tenant under the reorganization provisions of the United States
Bankruptcy Code or under the provisions of any state or federal law of like import, or whenever a
petition shall be filed by Tenant under the arrangement provisions of the United States Bankruptcy
Code or similar state or federal law, (b) whenever a receiver of
Tenant, or of, or for, the
property of Tenant shall be appointed, (c) Tenant admits it is insolvent or is not able to pay its
debts as they mature, (d) Tenant fails to pay Rent or any other payment when due hereunder; (e)
Tenant abandons or vacates the Premises: or (f) Tenant fails, whether by action or inaction, to
timely comply with, or satisfy, any or all of the obligations imposed on Tenant under this Lease
(other than the obligation to pay Rent) for a period of thirty (30) days after Landlord’s
deliver’ to Tenant of written notice of such default under this
Section 21, provided, however,
that if the default cannot, by its nature, be cured within such thirty (30) day period, but Tenant
commences and diligently pursues a cure of such default promptly within the initial thirty (30)
day cure period, then Landlord shall not exercise its remedies under Section 22 unless such
default remains uncured for more than sixty (60) days after Landlord’s notice.

     22. Rights
and Remedies.

          22.1.
Landlord’s Cure Rights Upon Default of Tenant. If Tenant defaults in the
performance of any of its obligations under this Lease, and fails to cure such default on a timely
basis

16

 

(pursuant to Section 21), Landlord, without thereby waiving such default, may (but shall not be
obligated to) perform the same for the account, and at the expense
of, Tenant.

          22.2 Landlord’s Remedies. In the event of any default by Tenant under this Lease,
Landlord, at its option, and after any applicable notice and cure period (as required pursuant to
Section 21), but without additional notice or demand from Landlord, if any, as provided in Section
21 has expired, may, in addition to all other rights and remedies provided in this Lease, or
otherwise at law or in equity: (a) terminate this Lease and Tenant’s right of possession of the
Premises: or (b) terminate Tenant’s right of possession of the Premises without terminating this
Lease: provided, however, that Landlord may, whether Landlord elects to proceed under Subsections
(a) or (b) above, relet the Premises, or any part thereof for the account of Tenant, for such rent
and term and upon such terms and conditions as are acceptable to Landlord. In addition, for
purposes of any reletting. Landlord is authorized to decorate, repair, alter and improve the
Premises to the extent deemed necessary by Landlord, in its sole discretion. In the event of the
termination of this Lease by Landlord pursuant to (a) above, Landlord shall be entitled to recover
from Tenant (i) all damages and other sums that Landlord is entitled to recover under any provision
of this Lease or at law or in equity, including, but not limited to, all fixed dollar amounts of
Base Rent and Additional Rent accrued and unpaid for the period up to and including such termination
date; (ii) all other additional sums payable by Tenant, or for which Tenant is liable, or in
respect of which Tenant has agreed to indemnify Landlord, under any of the provisions of this
Lease, that may be then owing and unpaid: (iii) all costs and expenses (including, without
limitation, court costs and attorneys’ reasonable fees) incurred by Landlord in the enforcement of
its rights and remedies under this Lease: and (iv) any damages provable by Landlord as a matter of
law including, without limitation, an amount equal to the positive difference, if any, between (x)
the discounted present value (at six percent (6%) per annum) of the Base Rent provided to be paid
for the remainder of the Term (measured from the effective termination date of this Lease) and (y)
the fair market rental value of the Leased Premises (determined at the date of termination of this
Lease) after deduction (from such fair market rental value) of the projected costs and expenses of
reletting the Premises (including the anticipated costs of repairs, alterations, improvements,
additions, legal fees and brokerage commissions) as reasonably estimated by Landlord. If Landlord
elects to pursue its rights and remedies under Subsection (b) above, and the Premises are relet and
a sufficient sum is not realized therefrom, then to satisfy the payment, when due, of Base Rent and
Additional Rent reserved under the Lease for any monthly period (after payment of all Landlord’s
reasonable expenses of reletting), Tenant shall, in Landlord’s sole judgment, either (i) pay any
such deficiency monthly or (ii) pay such deficiency on an accelerated basis, which accelerated
deficiency shall be discounted at a rate of six percent (6%) per annum. If Landlord elects to
pursue its rights and remedies under Subsection (b) above, and Landlord fails to relet the
Premises, then Tenant shall pay to Landlord the sum (x) the projected costs of Landlord’s expenses
of reletting (including the anticipated costs of repairs, alterations, improvements, additions,
legal fees and brokerage commissions) as reasonably estimated by Landlord and (y) the accelerated
amount of Base Rent and Additional Rent due under the Lease for the balance of the Term, discounted
to present value at a rate of six percent (6%) per annum. Tenant agrees that Landlord may file suit
lo recover any sums due to Landlord hereunder from time to time and that such suit or recovery of
any amount due Landlord hereunder shall not be any defense to any subsequent action brought for any
amount not theretofore reduced to judgment in favor of Landlord. If Landlord elects to pursue its
rights and remedies under Subsection (b). then Landlord shall at any time have the further right
and remedy to rescind such election and pursue its rights and remedies under Subsection (a). In the
event Landlord elects, pursuant to clause (b) of this Section 22.2. to terminate Tenant’s right of
possession only, without terminating this Lease, Landlord may, at Landlord’s option, enter into the
Premises, remove Tenant’s Property, Tenant’s signs and other evidences of tenancy, and take and
hold possession thereof, as provided in Section 20 hereof: and restore the Premises to the
condition required hereunder, provided, however, that such entry and possession shall not terminate
this Lease or release Tenant, in whole or in part, from Tenant’s obligation to pay the Base Rent
and Additional Rent reserved hereunder for the full Term, or from any other obligation of Tenant
under this

17

 

Lease. Any and all property that may be removed from the Premises by Landlord pursuant to the
authority of the Lease or of law, to which Tenant is or may be entitled. may be handled, removed
or stored by Landlord at the sole risk, cost and expense of Tenant, and in no event or
circumstance shall Landlord be responsible for the value, preservation or safekeeping thereof.
Tenant shall pay to Landlord, upon demand, any and all expenses incurred in such removal and all
storage charges against such property so long as the same shall be in Landlord’s possession or
under Landlord’s control. Any such property of Tenant not retaken from storage by Tenant within
thirty (30) days after the end of the Term, however terminated, shall be conclusively presumed to
have been conveyed by Tenant to Landlord under this Lease as in a bill of sale, without further
payment or credit by Landlord to Tenant.

          22.3 Additional Rights of Landlord. Any and all costs, expenses and disbursements, of
any kind or nature, incurred by Landlord or Agent in connection with the enforcement of any and all
of the terms and provisions of this Lease, including attorneys’ reasonable fees (through all
appellate proceedings), shall be due and payable (as Additional Rent) upon Landlord’s submission of
an invoice therefor. All sums advanced by Landlord or Agent on account of Tenant under this
Section, or pursuant to any other provision of this Lease, and all Base Rent and Additional Rent,
if delinquent or not paid by Tenant and received by Landlord when due hereunder shall bear interest
at the maximum rate allowed under Florida law (“Default Rate”), from the due date thereof until
paid, and such interest shall be and constitute Additional Rent and be due and payable upon
Landlord’s or Agent’s submission of an invoice therefor. The various rights, remedies and elections
of Landlord reserved, expressed or contained herein are cumulative and no one of them shall be
deemed to be exclusive of the others or of such other rights, remedies, options or elections as are
now or may hereafter be conferred upon Landlord by law. In addition to any provisions which may be
additionally provided for by law, Tenant hereby grants to Landlord a security interest, pledged for
the payment of any and all sums due under this Lease, into any and all personal property, goods,
furnishings or equipment which may be owned by Tenant and housed within the Premises subject to
this Lease and shall provide such UCC statements as Landlord may
require. In the event of default, Tenant
hereby consents that Landlord may immediately take possession of the Premises including personal
property therein contained and may dispose or otherwise liquidate the same for the payment of Base
Rent or Additional Rent with any surplus to inure to the benefit of the Tenant. Tenant further
consents to the entry of ex parte injunctive relief to prohibit the removal of any personalty from
the leased Premises at any time wherein Tenant may be in default. Tenant further waives the
provisions of the posting of any bond by Landlord as provided for by Chapter 83 of the Florida
Statues or otherwise by law. The effective date of both the statutory Landlord’s Lien and this
aforementioned security interest shall be the inception of Tenant’s tenancy of the Premises. it
being expressly agreed that any renewal, extension or modification of this Lease shall not result
in a novation nor in a new lease, such that this effective date shall remain unchanged throughout
Tenant’s tenancy.

          22.4
Event of Bankruptcy. In addition to, and in no way limiting the other remedies
set forth herein, Landlord and Tenant agree that if Tenant ever becomes the subject of a voluntary
or involuntary bankruptcy, reorganization, composition, or other similar type proceeding under the
federal bankruptcy laws, as now enacted or hereinafter amended, then: (a) “adequate assurance of
future performance” by Tenant and/or any assignee of Tenant pursuant to Bankruptcy Code Section 365
will include (but not be limited to) payment of an additional/new security deposit in the amount of
three (3) times the then-current Base Rent payable hereunder; (b) any person or entity to which
this Lease is assigned, pursuant to the provisions of the Bankruptcy Code, shall be deemed, without
further act or deed, to have assumed all of the obligations of Tenant arising under this Lease on
and after the effective date of such assignment, and any such assignee shall, upon demand by
Landlord, execute and deliver to Landlord an instrument confirming such assumption of liability;
(c) notwithstanding anything in this Lease to the contrary, all amounts payable by Tenant to or on
behalf of Landlord under this Lease, whether or not expressly denominated as “Rent”, shall
constitute “rent’’ for the purposes of Section 502(b)(6) of the Bankruptcy Code; and (d) if this
Lease is assigned to any person or entity pursuant to the provisions of

18

 

the Bankruptcy Code, any and all monies or other considerations payable or otherwise to be
delivered to Landlord or Agent (including Base Rent, Additional Rent and other amounts hereunder).
shall be and remain the exclusive property of Landlord and shall not constitute property of Tenant
or of the bankruptcy estate of Tenant. Any and all monies or other considerations constituting
Landlord’s property under the preceding sentence not paid or delivered to Landlord or Agent shall
be held in trust by Tenant or Tenant’s bankruptcy estate for the benefit of Landlord and shall be
promptly paid to or turned over to Landlord.

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

     24. miscellaneous.

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

          24.2 Notices. Any notice required to be given by either party pursuant to this Lease,
shall be in writing and shall be deemed to have been properly given, rendered or made only if
personally delivered, or if sent by Federal Express or other comparable commercial overnight
delivery service, addressed to the other party at the addresses set forth below (or to such other
address as Landlord or Tenant may designate to each other from time to time by written notice), and
shall be deemed to have been given, rendered or made on the day so delivered or on the first (1st)
business day after having been deposited with the courier service:

	 	 	 	 	 	 	 
	 

	 	If to Landlord:
	 	Capital Realty Investors, LLC
	 	 
	 

	 	 	 	110 East Street North, Suite B 

 Tampa, Florida 33602 	 	 
	 

	 	 	 	Attn: Mr. Benjamin Wacksman, President	 	 
	 
	 	 	 	 	 	 
	 

	 	With a copy to:
	 	PRLM, Inc.	 	 
	 

	 	 	 	P.O. Box 48547
	 	 
	 

	 	 	 	St. Petersburg, Florida 33743-8547	 	 
	 

	 	 	 	Attn: Ms. Pauline A. Pappas	 	 
	 
	 	 	 	 	 	 
	 

	 	With a copy to:
	 	Piper Rudnick LLP	 	 
	 

	 	 	 	101 East Kennedy Boulevard, Suite 2000	 	 
	 

	 	 	 	Tampa, Florida 33602	 	 
	 

	 	 	 	Attention: Michael A. Bedke. Esquire	 	 
	 
	 	 	 	 	 	 
	 

	 	If to Tenant:
	 	SED International, Inc.	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	6710 Benjamin Road, Suite 800	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 Tampa, FL 33634	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	With a copy to:
	 	SED International Inc.	 	 
	 

	 	 	 	4916 N Royal Atlanta	 	 
	 

	 	 	 	Dr. Tucker, GA 30084	 	 

19

 

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

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

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

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

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

          24.8 Governing Law; Construction. In the event that it is necessary to bring suit to
enforce the terms of the Lease, the parties hereto agree that any court of competent jurisdiction
situated in the County named in Section 1.5 shall have venue of such action. This agreement shall
be interpreted, in accordance with the laws of the State of Florida. If any provision of this Lease
shall be invalid or unenforceable, the remainder of this Lease shall not be affected but shall be
enforced to the extent permitted by law. The captions, headings and titles in this Lease are solely
for convenience of reference and shall not affect its interpretation. This Lease shall be construed
without regard to any presumption or other rule requiring construction against the party causing
this Lease to be drafted. All terms and words used in this Lease, regardless of the number or
gender in which they are used, shall be deemed to include any other number and any other gender as
the context may require. This Lease may be executed in counterpart and. when all counterpart
documents are executed, the counterparts shall constitute a single binding instrument.

20

 

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

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

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

          24.12 Relocation. Landlord shall have the right to relocate Tenant from the Premises
to comparable (as to size, configuration and improvements) alternative space in the Property
(“Replacement Premises”) upon ninety (90) days’ prior written notice to Tenant. In the event of
such a relocation. Landlord shall make reasonable, good faith efforts to coordinate with Tenant a
mutually acceptable plan (as to scope and timing) for such relocation, and Landlord shall be
responsible for the third-party costs incurred to accomplish the physical relocation of Tenant
(e.g., mover and telephone company charges). If the Replacement Premises are larger in size than
the original Premises, there shall be no adjustment in Tenant’s
Base Rent; however, Tenant’s
Proportionate Share shall be appropriately modified, thereby resulting in a potential increase in
Tenant’s Additional Rent. If, however, the Replacement Premises is a smaller size (as to rentable
square feet) than the original Premises. Landlord shall appropriately adjust both Tenant’s Base
Rent and its Proportionate Share.

          24.13 Financial Information. From time to time during the Term, Tenant shall deliver
to Landlord information and documentation describing and concerning Tenant’s financial condition,
and in form and substance reasonably acceptable to Landlord, within ten (10) days following
Landlord’s written request therefor.

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

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

          24.16 Joint and Several Liability. All parties signing this Lease as Tenant shall be
jointly and severally liable for all obligations of Tenant hereunder.

          24.17 Intent of Parties. It is the intention and purpose of the respective parties
hereto that this Lease shall be a “Net Lease” to the Landlord, and all cost or expense of whatever,
character or kind, general and special, ordinary and extraordinary, foreseen and unforeseen and of
every kind and

21

 

nature whatsoever that may be necessary in or about the operation of the Premises are to be viewed
in light of such intention and purpose so as to construe this Lease as “Net Lease.”

          24.18
Radon Disclosure. In accordance with Florida Statute Section 404.056, the
following information is provided:

          radon gas: radon is a naturally occurring radioactive gas that when it has
accumulated in a building in sufficient quantities, may present health risks to persons who are
exposed to it over time. levels of radon that exceed federal and state guidelines have been found
in buildings in florida. additional information regarding radon and radon testing may be obtained
from your county health department.

          24.19
Riders. All Rides and Exhibits attached hereto and executed (or initialed)
both by Landlord and Tenant shall be deemed to be a part hereof and hereby incorporated herein.

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

	 	 	 	 	 	 	 	 	 
	 	 	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	CRI CORPORATE CENTER, LLC 	 	 
	 	 	 	 	a Florida limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Capital Realty Investors. LLC,	 	 
	Signed in the presence of:

	 	 
	 	 	 	its managing member	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	Signature

	 	 	 	 	 	Benjamin Wacksman, President	 	 
	 

	 	 	 	 	 	 	 	 
	Print Name
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Signature
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Print Name
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	SED
INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	
	 	 	 	By:	 	/s/ Mark Divito	 	 
	 

	 	 	 	 	 	 	 	 
	/s/
Eileen Clark
 

	 	 
	 	 	 	Signature	 	 
	Signature
	 	 	 	 	 	 	 	 
	Eileen
Clark 

	 	 
	 	 	 	Mark DiVito	 	 
	 

	 	 	 	 	 	 	 	 
	Print Name

	 	 	 	 	 	Vice President of Operations	 	 
	/s/
Barbara
Gay 

	 	 	 	 	 	 	 	 
	Signature
	 	 	 	 	 	 	 	 
	Barbara
Gay 

	 	 	 	 	 	 	 	 
	Print Name
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Date	 	 

22

 

LEASE EXHIBIT “A-l” 

PROPERTY

	 	 	 
	Premises:

	 	Approximately 2,400 square feet, consisting of approximately 933 square feet of office
and 1,467 square feet of warehouse space (as illustrated on the Floor Plan attached
hereto as Exhibit “A-1”), Suite 800, in the building with the address of
6710 Benjamin Road, Tampa. Florida 33634 (the “Building”).
	 
	 	 
	Property:

	 	The business park commonly known as Airport Corporate Center, having the legal
description given on Exhibit “A-2” attached hereto.

23

 

LEASE EXHIBIT “A-l” 

FLOOR PLAN

Airport Corporate Center 

6710 Benjamin Road, Suite 800

Tampa. Florida 33634

2,400 Square Feet (MOL)

24

 

LEASE EXHIBIT “A-2” 

LEGAL DESCRIPTION

Airport Corporate Center

This southeast one quarter (SE 1/4) of the northeast one quarter (NE 1/4) of the northwest
one quarter (NW 1/4) of Section 31, Township 28 South, Range 18 Fast, less the south twenty-five
(25) feet for the right of way and less the right of way for Benjamin Road, of public records of
Hillsborough County, Florida.

9.28 acres of 404.154.12 square feet (MOL).

25

 

LEASE EXHIBIT “B” 

LANDLORD’S REPAIRS AND IMPROVEMENTS

Space To Be Taken “AS-IS”.

26

 

LEASE EXHIBIT “C” 

BROOM CLEAN CONDITION AND REPAIR REQUIREMENTS

	1)	 	Park rules do not permit decals, stickers or other material to be affixed to the storefront
glass. Should any have been displayed, they should be removed, without damage to, or residue
remaining upon, the reflective film.
	 
	2)	 	All exterior and interior locks and all door hardware should be in good repair and operating
condition. If tenant has rekeyed so that current locks are not compatible with our master
keying system, we will need to rekey the exterior locks to our master system, at Tenant’s
expense. Also, keys are needed for each interior lock, including doors, a/c thermostat boxes,
towel holders, etc.
	 
	3)	 	Interior glass, mullions, sills and mini-blinds should be cleaned. Damaged blinds should be
repairs, or replaced, if required.
	 
	4)	 	Alarm system hardware, including control panels, keypads and sensors, should be deactivated
and removed, and any wall or other damage from mounting should be repaired.
	 
	5)	 	HVAC system must be in good working order. Filters must be changed, and all thermostats must
be in working order. Tenant must supply Landlord with maintenance records.
	 
	6)	 	All plumbing should be operational and free from leaks. Fixtures should not be dented,
cracked or chipped. Water heater must work.
	 
	7)	 	All ceiling lights should be fully operational, including all lamps. Lighting configuration
should be as shown by space plan included with Lease.
	 
	8)	 	All ceiling tile and grid should be complete, intact and undamaged and free of excessive dust
from lack of changing filters. (No ceiling tiles may be missing or damaged.)
	 
	9)	 	Wall surfaces should be free of mounting brackets, or holes therefrom. Water or impact damage
to walls should be repaired. Patchwork should be neat, to blend in with existing wall finish.
Holes in doors or trim should be similarly repaired.
	 
	10)	 	Vinyl or other wood base or molding should be complete, intact and free from damage.
	 
	11)	 	Carpets should be thoroughly vacuumed. If heavily soiled, carpet will require shampooing or
other soil- extraction treatment. If stains can be “spot removed”, this may be acceptable.
	 
	12)	 	Vinyl or other floor tile should be cleaned.
	 
	13)	 	Restrooms should be thoroughly cleaned, as in the normal housekeeping routine for the suite.
This includes fixtures, mirrors, vanity and cabinet lops and interiors.
	 
	14)	 	All mechanical equipment should be in good operating order. This includes, but is not limited
to, sump pumps, hoists and lifts, dock levelers, motorized dampers and exhaust fans.
	 
	15)	 	Warehouse, shop, plant and oilier concrete floors should be cleaned of any sediment adhering
to the surface, and then swept clean.
	 
	16)	 	Holes in warehouse walls should be patched.

27

 

LEASE EXHIBIT “C”

	17)	 	Overhead doors must be free of any cracked lumber, broken or dented panels. Overhead door
springs, rollers, tracks, motorized door operator, and all other items pertaining to the
overhead door must also be in good working condition. Interior surfaces should be reasonably
clean and free from dirt or other sediment.
	 
	18)	 	Any shelving, partitions or other structures within the warehouse must be in good condition,
meeting all building and safety codes, or else be repaired or removed, at the option of CRI
Corporate Center, LLC..
	 
	19)	 	Cobwebs should be removed from all office and warehouse areas.
	 
	20)	 	

 All EXIT and emergency lighting should be fully operational.

	 
	21)	 	

 All fire extinguishers should be fully charged, and mounted as per code.

	 
	22)	 	

 All debris must be removed and properly disposed of by Tenant.
	 
	23)	 	Any damage to the exterior of the suite, including the building structure, light fixtures,
dock bumpers, stairs, truck wells, guardrails, bollards, or air-conditioning equipment, caused
by the Tenant, its agents or employees, will be repaired by CRI Corporate Center. LLC. at
Tenant’s expense.
	 
	24)	 	No fixtures of any type may be removed from the suite without written permission from CRI
Corporate Center. LLC.. This includes all fixtures, whether provided by the Landlord or
Tenant. A fixture is anything that is attached to the building or premises.
	 
	25)	 	Any and all tenant-provided improvements must meet building code requirements as well as CRI
Corporate Center, LLC. standards for construction, be brought to meet same, or be demolished
and removed and the premises restored, at CRI Corporate Center, LLC.’s option.

28

 

     LEASE EXHIBIT “C” 

RULES & REGULATIONS RIDER

	1)	 	No part of the Premises or Common Areas shall be used for any purpose other than as permitted
by the zoning regulations of the County in which the Premises is located for the type of
zoning given in Exhibit A or as stipulated in the Lease.
	 
	2)	 	No materials or products shall be manufactured or stored that constitute a nuisance or cause
the emission of noxious odors or gases or smoke. No burning of materials, outside or inside
the Premises, will be permitted.
	 
	3)	 	No fence, wall, loading facility, outside storage facility, or permanent improvements will be
erected or constructed without the prior written approval of the Landlord.
	 
	4)	 	Tenants will keep their Premises safe, clean, neat and provide for the removal of trash from
their Premises. No pets will be allowed on the Premises.
	 
	5)	 	No materials, supplies or products shall be stored outside without the prior written approval
of the Landlord.
	 
	6)	 	Tenants shall not cause or make an excessive noise, odor, harmful sewage or vibration that
could be deemed objectionable to other tenants.
	 
	7)	 	No signs arc to be erected other than the standard format. Signs are not to be erected other
than on the space provided for the Premises.
	 
	8)	 	Each tenant is to maintain a pest control program appropriate to their Use.
	 
	9)	 	A fifteen (15) mile-per-hour speed limit is to be observed within the Property.
	 
	10)	 	No employee parking will be permitted on the streets or in the Property other than in the
areas designated by the Landlord.
	 
	11)	 	All enterprises are to be conducted in a business-like manner.

29

 

LEASE EXHIBIT “D” 

SPECIMEN

notice regarding mechanic liens

     Notice is hereby given of certain provisions contained in the Leases between CRI
CORPORATE CENTER, LLC, as Landlord, and the Tenants of the Premises on property hereinafter
described. This notice is given pursuant to 713.10, Florida Statues.
CRI CORPORATE CENTER, LLC, as
Landlord, and on behalf of its successors and assigns, hereby gives notice as follows:

     1. The
name of the Landlord is CRI CORPORATE CENTER, LLC.

     2. The legal description of the parcel of land to which this notice applies is described in
Exhibit “A” attached hereto and by this reference made a part hereof.

     3. Mechanic’s
Lien. Tenant agrees that Tenant will pay or cause to be paid all costs
for Alterations and other acts done by Tenant or caused to be done by Tenant on the Premises of a
character which could, but for the prohibitions hereinafter contained, result in liens on
Landlord’s interest therein, and Tenant will keep the Premises free and clear of all mechanic’s
liens and other liens on account of Alterations done for Tenant or persons claiming under Tenant.
Tenant agrees to and shall indemnify and save Landlord free and
harmless against liability, loss, damage, costs or expenses, including attorney’s fees and costs of discovery and suit, on account of
claims of liens of laborers or materialmen or others for Alterations performed for. or materials or
supplies furnished to. Tenant or persons claiming under Tenant.

     THE INTEREST OF THE LANDLORD IN THE PREMISES AND THE PROPERTY SHALL NOT, UNDER ANY
CIRCUMSTANCES. BE SUBJECT TO LIENS FOR ALTERATIONS MADE BY THE TENANT OR ANY OTHER ACT OF TENANT.

     4. All leases entered into for space in the Premises on the parcel of land described in
Exhibit “A” attached hereto contain the language identified in paragraph 3 above.

	 	 	 	 	 
	 	 	  LANDLORD: CRI CORPORATE CENTER. LLC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	End of Specimen

Tenant agrees that the Public Notice contained above, which has been recorded in the public
records of the county where the leased Premises are located, may be effectively
discharged, released, and removed from said public records by Landlord alone executing and
recording in the public records a notice that the leased Premises are discharged and
released from the terms of this Section, as well as other provisions of this Lease.

30EX-10.1

 

EXHIBIT 10.1

This Credit Agreement Amendment has been filed to provide investors with information regarding its terms. It is not

intended to provide any other factual information about the Tennessee Valley Authority. The representations and

warranties of the parties in this Credit Agreement Amendment were made to, and solely for the benefit of, the other

parties to this Credit Agreement Amendment. The assertions embodied in the representations and warranties may be

qualified by information included in schedules, exhibits or other materials exchanged by the parties that may modify or

create exceptions to the representations and warranties. Accordingly, investors should not rely on the representations

and warranties as characterizations of the actual state of facts at the time they were made or otherwise.

FIRST AMENDMENT

     THIS FIRST AMENDMENT (this “Amendment”) dated as of November 2, 2006 to the Credit
Agreement referenced below is among TENNESSEE VALLEY AUTHORITY, a wholly owned corporate agency and
instrumentality of the United States of America (the “Borrower”), the Lenders identified on
the signature pages hereto and BANK OF AMERICA, N.A., as a Lender and as Administrative Agent.

W I T N E S S E T H

     WHEREAS, pursuant to the Fall Maturity Credit Agreement (as amended, modified and supplemented
from time to time, the “Credit Agreement”) dated as of May 17, 2006 among the Borrower, the
Lenders identified therein and the Administrative Agent, the Lenders agreed to make extensions of
credit to the Borrower; and

     WHEREAS, the Borrower has requested certain modifications to the Credit Agreement and the
Lenders have agreed to the requested modifications on the terms and conditions set forth herein.

     NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

     1.   Defined Terms. Capitalized terms used herein but not otherwise defined herein
shall have the meanings provided to such terms in the Credit Agreement.

     2.   Amendments. The Credit Agreement is amended in the following respects:

     (a)  The definition of “Maturity Date” in Section 1.01 of the Credit Agreement is amended to
read as follows:

       “Maturity Date” means November 11, 2007.

     (b)  The pricing grid in the definition of “Applicable Rate” in Section 1.01 of the Credit
Agreement is amended to read as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Pricing	 	 	 	 	 	 	 	 	LIBOR	 	 	Base Rate	 	 	Commitment	 
	 	Tier	 	 	S&P Debt Rating	 	 	Moody’s Debt Rating	 	 	Rate Loans	 	 	Loans	 	 	Fee	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	1
	 	 	AAA
	 	 	Aaa
	 	 	0.12%
	 	 	0.00%
	 	 	0.08%	 
	 	2
	 	 	AAA but on CreditWatch
	 	 	Aaa but on Watchlist
	 	 	0.20%
	 	 	0.00%
	 	 	0.10%	 
	 	3
	 	 	AA+
	 	 	Aa1
	 	 	0.35%
	 	 	0.00%
	 	 	0.20%	 
	 	4
	 	 	AA
	 	 	Aa2
	 	 	0.35%
	 	 	0.00%
	 	 	0.20%	 
	 	5
	 	 	AA-
	 	 	Aa3
	 	 	0.45%
	 	 	0.00%
	 	 	0.30%	 
	 

     3.   Conditions Precedent. This Amendment shall become effective as of November 12,
2006 upon receipt by the Administrative Agent of counterparts of this Amendment executed by the
Borrower and the Lenders.

     4.   No Other Changes. Except as expressly modified hereby, all of the terms and
provisions of the Loan Documents shall remain in full force and effect.

 

 

     5.   Reaffirmation of Representations and Warranties. The Borrower represents and
warrants that each representation and warranty set forth in the Loan Documents is true and correct
in all material respects as of the date hereof (except those that expressly relate to an earlier
period).

     6.   Counterparts. This Amendment may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an original and it shall not be necessary
in making proof of this Amendment to produce or account for more than one such counterpart.

     7.   Governing Law. Except for those sections that specifically reference a federal
statute or regulation, this Amendment shall be deemed to be a contract made under, and for all
purposes shall be construed in accordance with, the laws of the State of Tennessee. The foregoing
notwithstanding, to the extent the following defenses would be available to the Borrower under
federal law, then such defenses shall be available to the Borrower in connection with this
Amendment: (i) non-liability for punitive damages, (ii) exemption from anti-trust laws, (iii) the
Borrower cannot be contractually bound by representation of an employee made without actual
authority, (iv) presumption that government officials have acted in good faith and (v) limitation
on the application of the doctrine of equitable estoppel to the government. For the avoidance of
doubt, the Credit Agreement, as amended by this Amendment, shall continue to be governed by Section
10.14 Governing Law: Jurisdiction: Etc. and not by Section 7, Governing Law, of
this Amendment.

[Signature Page Follows]

2

 

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this First
Amendment to Fall Maturity Credit Agreement to be duly executed and delivered as of the date first
above written.

	 	 	 	 	 	 
	BORROWER:

	 	TENNESSEE VALLEY AUTHORITY
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John M. Hoskins
	 

	 	 	 	 
	 

	 	Name:
	 	John M. Hoskins
	 

	 	Title:
	 	Senior Vice President,

Treasurer/Investor Relations
	 
	 	 	 	 
	ADMINISTRATIVE
	 	 	 	 
	AGENT:

	 	BANK OF AMERICA, N.A., as Administrative Agent
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John M. Hall
	 

	 	 	 	 
	 

	 	Name:
	 	John M. Hall
	 

	 	Title:
	 	Senior Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	LENDER:

	 	BANK OF AMERICA, N.A., as a Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John M. Hall
	 

	 	 	 	 
	 

	 	Name:
	 	John M. Hall
	 

	 	Title:
	 	Senior Vice President

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